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What is a Variable Rate Demand Note (VRDN)? A variable rate demand note (VRDN), also known as a variable-rate demand obligation (VRDO), represents borrowed funds that can be repaid on demand and accrue interest based on the prevailing money market rates. These debt instruments are typically offered to investors through
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Overview of Underlying Debt Underlying debt represents an essential aspect of municipal bonds, encapsulating an implicit understanding that the debt obligations of smaller government entities are indirectly supported by the creditworthiness of larger entities within their jurisdiction. This concept applies primarily to general obligation municipal bonds. By tapping into the
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