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Finance a la shmoop what our bond anticipation notes revenue anticipation

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notes and tax anticipation notes? and yeah a whole lot of anticipation going

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on there all right a few things in life are certain one of them is that there [People watching movie]

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will always be another James Bond movie coming out and we will all anticipate it

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and um well that's kind of what anticipation notes are all about, minus the

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massive explosions ticking bombs and cars that squirt oil out of the tailpipe

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when a municipality or company wants to fund a project but

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just can't wait to issue a larger number of bonds or more money or fatter dough [Stack of cash appears]

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to get going with the union construction workers building parking lots and

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whatever else it is they want then they can issue bond anticipation notes... these

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are short-term smaller bonds issued before a larger funding project like

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anticipating the large bonds that they just know are coming in but can't wait to get

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started so let's go raise the money today right when the company or

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municipality makes a larger bond issue later while they can use the money from [Money transfers to company]

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that issue to pay for the bond anticipation notes, like borrowing

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from Peter to pay Paul sorta so that's a bond anticipation note and the same

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applies to revenue anticipation notes like let's say you're guaranteed a

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million dollars from the NFL for the purchase of your super duper lemonade to [Check for super duper lemon appears]

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be paid on the day after the Super Bowl well the NFL's credit is good they pay

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their bills odds are really good you'll deliver what you promised to the NFL to

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slake the thirst of the thirsty and yelling in theory you could issue a note

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ahead of that blessed event go Packers! and collect the million bucks

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ahead of when NFL pays you paying whatever risk premium to your investors [Money transfers to investors]

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ie they might pay you nine hundred fifty grand today for a million bucks a week

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or two or three from now when the Super Bowl is over while in real life these

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kinds of "revenues" are really more like fundings and

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they apply to very short-term muni bonds usually which are trying to bridge cash [Pile of money falls]

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needs from today until they can actually raise the dough from John Q local Public

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Citizen well tax anticipation notes are yet another flavor of the same drink tax [Person opens can of cola]

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anticipation notes rely on the fact that the city will collect X dollars in taxes

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so many months from now they issue bonds today using that expected tax money that

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they just know is coming in as collateral so that they can you know pay

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for stuff today so yeah those are bond anticipation notes, revenue

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anticipation notes and tax anticipation notes be sure to watch our equally

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thrilling video invest another day.. spoiler alert Q invents an auto [Q and Pierce Brosnan with a robot]

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investing bought for 007 you'll be on the edge of your seat...

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