What are double barrel bonds known for?

Double barrel bonds are distinguished by their unique structure of being secured by two sources of revenue. This dual security enhances the creditworthiness of the bonds, making them a more attractive investment for potential buyers. Typically, these bonds may rely on two different streams for repayment, which could include tax revenues and utility revenues or a combination of general fund and specific project revenues.

This characteristic not only offers investors a greater level of assurance regarding timely principal and interest payments but also allows the issuing municipality or entity to potentially secure lower interest rates compared to bonds backed by a single source of revenue. While a higher interest rate might be appealing, it's primarily the dual revenue backing that characterizes double barrel bonds and makes them a reliable option in the market.

The other options do not accurately capture the essence of double barrel bonds. For instance, while some bonds do have longer maturity periods, this feature is not specific to double barrel bonds. Additionally, the focus on short-term needs does not align with the typical usage or structure of double barrel bonds, which are generally intended for more extended financing.