Non sovereign government bonds

Non sovereign government bonds are issued by states, provinces, counties, and sometimes by entities created to fund and provide services such as for the construction of hospitals, airports, and other municipal services. Payments on the bonds may be supported by the revenues of a specific project, from general tax revenues, or from special taxes or fees dedicated to the repayment of project debt.

Non sovereign bonds are typically of high credit quality, but sovereign bonds typically trade with lower yields (higher prices) because their credit risk is perceived to be less than that of non sovereign bonds.