Revenue Anticipation Note - RAN

A very short-term muni bond. It's so excited. It's anticipating the dough...the revenue.

Example:

The municipality has plans to launch a muni bond offering. But they need cash now. The RAN covers them until that larger offering is made. The money from the larger offering then pays for the shorter-term bond.

City A is about to get $120 million from a muni bond offering funding the new parking structure systems all around the parks in the city. City A has already raised the money, in that investors have committed to it. In fact, it was 3x oversubscribed, so certainty is high that the money is "there." But City A needs the dough today; it doesn't want to wait 5 months for the dough to show. So it issues a RAN, a short-term loan note so that it can get those union bulldozer operators who cost the city $27 an hour...going.