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Transportation Funding & Financing

Hybrid Bonds

Hybrid bonds are those with characteristics of both revenue and general obligation bonds. For example, one type of hybrid-a moral obligation bond-is a bond backed by revenues as well as a non-binding pledge from the issuing state that it would consider making up any deficiency in state revenues. Other hybrids include double-barrel bonds, which are bonds backed by both revenues and the full-faith-and-credit of the issuing government.