What are Serial Bonds typically issued by?

Serial bonds are typically issued by government-created corporations. These bonds are structured in such a way that they have several maturity dates over time, which allows the issuer to repay portions of the principal at different intervals, rather than requiring the entire amount to be repaid at once at the bond’s maturity date.

Government-created corporations often issue serial bonds to finance projects that provide public benefit, such as infrastructure improvements or public facilities. The staggered repayment feature of serial bonds makes them attractive for issuers, as it allows for better cash flow management by aligning the repayment of debt with the revenue generated from the financed projects.

In contrast, while the federal government, municipal authorities, and various corporations may issue other types of bonds (like general obligation bonds or corporate bonds), they are less commonly associated with the serial bond structure as typically as government-created corporations. This is a defining characteristic that highlights the unique role of government-created entities in public finance through the issuance of serial bonds.