Generally these collateralized bond obligations own relatively small amounts of a large number of well-known issues, often 50 to 60 issues.

As with collateralized bond obligations, holders of the senior class A securities will receive interest payments in advance of the others.

A newly formed company holding the junk bonds can issue collateralized bond obligations and sell them.

In early March 2008, Moody's followed suit and indicated that it would also review the county's ability to meet other bond obligations.

That has been the fate of the handful of other public borrowers that have defaulted on their bond obligations.

Half the money would be available almost immediately and could be used to cover bond obligations, the officials said.

This was complicated for the highly leveraged company when bond obligations also came due.

The climactic moment came in December 1978, when the city was unable to meet $14.5 million in bond obligations.

Among the proposals is a financing technique known as a collateralized bond obligation.

The collateralized bond obligations, as they are known, are privately sold to financial institutions.