Which attribute is most important for a General Obligation (GO) bond?

The most important attribute for a General Obligation (GO) bond is that it is backed by the full faith and credit of the government. This characteristic signifies that the issuing government commits to repaying the bondholders from its entire revenue base, which typically includes various tax revenues. This backing provides a high level of security to investors, as it indicates the government prioritizes these repayments and has the authority to levy taxes or adjust budgets to ensure obligation fulfillment.

This assurance of repayment makes GO bonds particularly appealing to conservative investors seeking lower risk. The full faith and credit backing means that if necessary, the government can tap into different revenue streams or raise taxes to meet its bond obligations, providing a strong safety net.

The other attributes mentioned, such as being linked to specific revenue sources or having a predetermined maturity date, are more relevant to revenue bonds or other types of debt instruments. While being able to refinance at lower interest rates is a beneficial feature for managing costs, it doesn't define the fundamental nature of GO bonds like the backing by full faith and credit does.