What are Gogo bonds?

Gogo bonds are statutory units shares of a high yield investment trust. The trust is created first by buying general obligation municipal bonds from local U.S. Governments then using the bonds as collateral as follows.

The general obligation bonds are used to underwrite loans to a private equity Go Fund in exchange for equitable ownership backed by non-public bond obligations and notes.

The Go Fund sales non-public bonds that are issued by the companies within the fund directly to the trust thus creating a high yield investment trust.

The trust then sale units shares via Gogo Bonds’ crowdfunding portal  to general public. In most simple terms, Gogo bonds are doubled backed bond obligations created from Municipal Go Bonds and a high yield Go Fund.

The very complex nature of the fund is designed in a way to protect investors’ stake and maximize yield.

 

Is this document useful? 1 0

Published: January 11, 2016 Updated: January 14, 2016