- Reports and Resources
General Obligation Bonds: State Law, Bankruptcy and Disclosure Considerations
Paper providing a background about, and a basic framework for analyzing, general obligation bonds.
General obligation bonds of state and local governments have long been viewed by investors and other participants in the municipal bond market as very safe investments, perhaps second only to United States Treasury securities. This perception is supported by the historically low default rate on general obligation bonds, particularly since the Great Depression. The National Association of Bond Lawyers (“NABL”) has prepared this paper to provide background about, and a basic framework for analyzing, general obligation bonds, which examines: Characteristics of general obligation bonds, State law remedies, Municipal bankruptcy, and Disclosure considerations.