California General Obligation (GO) bonds are a type of municipal bond backed by the full faith and credit of the State of California. When you buy California GO bonds, you are essentially lending money to the state, which uses the proceeds to fund important infrastructure projects, such as schools, hospitals, and roads. In return, you receive interest payments on your investment and the repayment of your principal when the bond matures.
California GO bonds are considered a relatively safe investment because they are backed by the state’s taxing authority. However, there is always some risk involved when investing in bonds, so it is important to do your research before you buy.