So long as there is reason to believe the curve will remain steep, the investor should be able to benefit from that extra spread. Once the financial crisis forced ­investors to unwind their positions, that volume fell to about $60 billion in early 2009, but in recent months new activity has pushed the volume up to around $80 billion. A tender option bond (from now on TOB) is the municipal bond market's answer to the classic borrow short and invest long. A great deal of stability has since returned to the municipal market. “So you’ll be left with a band of ratios driven by whether issuers think it’s cheaper to issue as taxable or tax-exempt.”. That back-and-forth would form a natural ceiling in muni-to-taxable ratios, making it increasingly unlikely that ratios would blow up as they did in 2008. Top of Beam + 1 variant. “It’s ironic, but isn’t that just the way things work on Wall Street? Meaning ***** TOB: Tender Option Bond ***** TOB: Takeover Bid **** TOB: Terms of … The fourth digit of the TOB indicates the sequence of the bill for a specific episode of care as defined below: “0” indicates a non-payment/zero claim. They may just spin off brokerage houses. Looking for the definition of TOB? In order to be hurt, something has to be alive, and proprietary trading died in the financial crisis, they said. The spousal meaning of the body prefigures the redemptive meaning of the body. Retail purchasers, who make up about two-thirds of the investor base for munis, prefer to purchase short-term debt, while the financial needs of issuers tend to be long term — think of constructing roads, bridges, and schools. Before the credit crisis, the most active time for creating new TOB trusts was in the first half of 2007, according to Standard & Poor’s. To date this month, Municipal Market Data indicated the spread between two years and 30 years in the triple-A general obligation yield curve averaged 337 basis points. Rick Snyder and two former Flint emergency managers entered not guilty pleas Thursday on criminal charges tied to their alleged roles in the Flint water contamination crisis. T.O.B. Three years earlier the six-month average was 311 basis points. In its heyday in 2007, the volume of TOBs grew to more than $200 billion, representing about 8% of the municipal market. “Practically nothing would be issued with a tax-exempt long maturity,” he said, “as long as ratios are such that it is more attractive for an issuer to issue in the taxable market.”. "global warming" Instead of being squeamish about the return of these products, an increase in TOB volume would likely have a positive impact on the wider market, participants said. “Even though money-market fund assets are negative on a week-to-week basis, financing is more attractive now than ever.”. Word Origin a prim. “I couldn’t be more pleased to learn that Alabama will be the new home to the United States Space Command," said Alabama Gov. “When muni-to-Treasury ratios would get out of whack, these guys would come in and buy a little more to support their money-making trade efforts,” said Tom Kozlik, municipal analyst at Janney Capital Markets. Possible TB meaning as an acronym, abbreviation, shorthand or slang term vary from category to category. Finance TOB abbreviation meaning defined here. 'Take Over Bid' is one option -- get in to view more @ The Web's largest and most authoritative acronyms and abbreviations resource. Like what you see? Terms of Business. Considered as one of the greatest legacies of St John Paul II, this catechesis explains Catholic teachings through the lenses of the nuptial mystery. ,random This would be the code used in international transactions to and from Bouvet Island bank accounts, though as the island is uninhabited, this is unlikely to be used. If market dynamics stay this favorable, more hedge funds and dealers could take advantage of the environment and the market could see “a re-leveraging scenario” in the near-term, according to Matt Fabian, managing director at Municipal Market Advisors, an independent research firm. PSP, HIPAA To top things off, muni-to-Treasury ratios defied all expectations as a flight to quality caused Treasury yields to fall to historic lows, making municipals far cheaper than Treasuries despite their tax-exempt status. That 208% was more than 17 standard deviations from the mean up to that point — or in laymen terms, a tail risk so far off the standard bell curve that the possibility of it occurring was virtually nil. ? “Even though TOBs are an attractive way to finance munis, potentially, because of the level of financing, you have a supply disconnect,” another TOB participant said. Tournament of Books - 2019 TOB - the Tourney: 2019 TOB Shortlist Showing 1-50 of 507. TOB Stands For : Take Over Bid. Still, despite favorable dynamics and the potential to assist the broader market, it’s far from certain that TOB programs will see explosive growth in the near term. The reason is higher ratios indicate cheap munis, so when ratios rise more investors will be attracted to the TOB ratio trade. ISO 3166-2 geocode for Bouvet Island. But  the programs, which suffered losses and contracted dramatically during the credit crisis, have not yet taken flight now that the market has recovered. TOB: Triangle-Based Omni-Purpose Building (power generation system) TOB: The Ordinary … Problems aren’t only confined to the supply side. Please note that Type of Bill is not the only meaning of TOB. A TOB program is a financing mechanism that allows investors to make a leveraged carry trade, borrowing at short-term rates and investing in higher-yielding long-term bonds, and then pocketing the spread. Like the unhedged carry trade, the ratio trade, as it is called, can also be beneficial to the wider municipal market by keeping relative values in check. Tob Rhyming, similar names and popularity. Postal codes: USA: 81657, Canada: T5A 0A7, Your abbreviation search returned 46 meanings, showing only Business & Finance definitions (show all 46 definitions), Note: We have 36 other definitions for TOB in our Acronym Attic, The Acronym Finder is Those purchases are dependent on the cash flow created by the carry trade — the spread between the short-term borrowing rate and the bond yield —  which means the investor has more volume riding on the collateral than its original value. “And look at where financing is now on an absolute basis,” he added, referring to the SIFMA swap rate, which averaged 0.20% in the first three months of this year. “One of the reasons things have been so volatile since the beginning of ’08 is because TOB programs, for the most part, aren’t well-capitalized.”. In today’s climate, however, such leverage isn’t possible. Compared to the decade average of 95.6%, this indicates that long-term tax-exempts are relatively expensive. But while the impact of BABs may be positive for municipal-to-taxable ratios, the overall impact on tender-option bond programs may not be wholly positive. The New York mayor rolled out his $92.3 billion preliminary spending plan with warnings about federal and state variables, more pronounced amid the COVID-19 crisis. Without the same leverage as before, few are expecting the tender-option market to become as influential as it was before the credit crisis. So in addition to helping the broader market by purchasing long-term munis and pushing down the yield curve, TOB programs also helped meet the investor demand for short-term, tax-exempt, floating-rate debt. Kay Ivey. tob: to be pleasing or good. root Definition He noted, for instance, that ratios are a little higher now than they were three years ago when TOB structures were booming. The floater certificate, or senior note, provides a short-term variable-rate with a put option. If banks are sitting on cash, the ­incentive to finance through a TOB is minimal. For investors, the attraction for the TOB program comes from the fact that the municipal yield curve is naturally steep, compared to other assets. In addition, “the cash-flow portion of the trade has possibly never been better,” he said, speaking of the steep yield curve. The deal is the latest example of a consolidation in the financial information and data industry. This page is all about the acronym of TOB and its meanings as Type of Bill. What are synonyms for Tob. The tax-exempt yield on the certificate is relatively low — usually based on the Securities Industries and Financial Markets Association swap index — but the tender option compensates by giving the floater-holder the right, on specified dates, to receive par value for it. Prior to the credit crisis, TOB programs were using up to 10 times leverage, sometimes more. That’s more than the five to 10 trusts rated weekly a year ago, but well below the pre-crisis days when upwards of 50 trusts were rated each week, he said. Holders of the floating-rate certificates were forced to exercise the put option and sell the certificates back to the trusts, forcing the liquidity sponsors to cough up cash. “So in theory, the market could become as big as it was before or even larger, if it continues to grow that way.”. Here’s how it works: An investor, ­typically a hedge fund or a mutual fund, will sell a portfolio of top-grade, fixed-rate, long-term municipal securities to a TOB sponsor trust, which is typically run by a large bank. As the accompanying chart indicates, for instance, a typical TOB trade in March 2007 might use six times leverage to deliver an annual return of 9.6%. When issuing BABs, issuers can opt to receive a 35% direct interest subsidy from the federal government. As a result, municipalities are choosing to borrow in the taxable market, particularly on the long end where savings can be greatest. “It’s still not that long ago that you had major, major stress events, so that’s a real negative for people looking at the trade,” McCarthy said. Theology of the Body Course (10 hours) via ZOOM Sat 16, Sun 17, Sat 23, Sun 24 May 2020,1.30 pm – 4.00 pm. The success of taxable Build America Bonds — which has limited the supply of tax-exempt debt necessary for TOB programs — is one reason. There are many different career paths and jobs that perform a wide range of finance activities. However, if market dynamics remain this auspicious, MMA’s Fabian suggested that even with moderate leverage the program could be influential in taking supply out of the market and pushing down yields, which would be a boon to issuers struggling with their finances. Please note that Transfer of Business is not the only meaning of TOB. Compare that to Treasuries, where the average was 166.8 basis points, and you have an extra spread of 54.5 basis points, according to MMD. The other is that marketing the ratio trade remains difficult as risk appetite remains tepid among investors. And in that case, then it’s 'Game On’ again.”. The group specifically revised six of its model disclosure documents for risk disclosure including floating rate notes, fixed-rate bonds, interest rate swaps, forward delivery bonds, tender offer bonds and variable rate demand obligations. In the current climate, the investor could reduce leverage to just two times — cutting the risk of the trade by a third — and earn an annual return of 10.6%. A major reason why long-term tax-exempt yields have fallen recently is the advent of taxable Build America Bonds, which were created by the American Recovery and Reinvestment Act in February 2009. Pedro Pierluisi wants to make sure that employees are not dismissed and don't lose their benefits, among other things. 13 definitions of TOB. Finance definition, the management of revenues; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking and investment. The underlying collateral in the trade was often enhanced by bond insurance, so when the guarantors were downgraded throughout 2008, certificates derived from the collateral no longer met the high-grade requirements. In the first quarter of this year, for instance, total volume in the muni market was up 17.1% compared to last year, but tax-exempt supply was down by nearly one-fifth because issuers are increasingly selling BABs. ... Financial Dictionary. “Most of the problems that came about in 2008 were really brought on by very highly leveraged structures on fairly weak underlying bonds, and as a result, when things went wrong, there was not enough liquidity to unwind those vehicles, and that’s why you saw plummeting prices,” a Wall Street banker said recently. Finance is the study of money management and the process of acquiring needed funds. “At the end of 2007 virtually every U.S. bank and a few foreign banks had very large TOB programs — now that’s gone,” according to a banker who did not want to be named. Before articulating those factors, however, it may be helpful to gain a better understanding of how the product works. This is used as an international standard for shipping to Benin. Looking for online definition of TOBS or what TOBS stands for? “When the crisis hit, all that stuff was unwound,” McCarthy said. Meanings of TOB in English As mentioned above, TOB is used as an acronym in text messages to represent Transfer of Business. The SIFMA municipal swap index — a widely used barometer of variable-rate demand obligations — peaked at 7.96% that month, compared to its current 0.24%. The primary factor creating a favorable climate for TOB programs is the steep yield curve. The best time to be in a trade is when no one else wants to be in it.”. TOB: Type of Bill: TOB: Type of Business: TOB: Takeover Bid: ToB: Terms of Business: TOB: Tender Option Bond: TOB: Top of Belt (belt conveyor) TOB: Triangle-Based Omni-Purpose Building … Please look for them carefully. Find the latest TOD'S SPA EO 2 (TOB.F) stock quote, history, news and other vital information to help you with your stock trading and investing. The purchase of tax-exempt bonds for TOB programs might have to rise pretty dramatically for tax-exempt yields to fall even further than BABs have pushed them, he said. There’s not a lot of it out there.”, “Will it limit the potential return of that going forward? If it carries a rating at all, the residual will be graded lower than the floating rate because it is the “first-loss” certificate, but the risk is compensated by the higher yields it derives from the long-term collateral, minus the floating rate and some fees. The residual certificate, or junior note, is sold back to the investor. ISO 3166-1 alpha-2 code for Bouvet Island. Acronyms. At Yahoo Finance, you get free stock quotes, up-to-date news, portfolio management resources, international market data, social interaction and mortgage rates that help you manage your financial life. In mid-April, the muni-to-Treasury ratio in 30-years was 88.9%. BABs cannot be deposited into the trusts because the tax-exempt floaters must be backed by tax-exempt collateral. Then, in the wake of the Lehman Brothers collapse in September 2008, short-term rates shot to record highs. In trader parlance, the floater certificate is known as the tender-option bond. The degree of leverage depends on the volume ratio between the residual certificates and the floating certificates — the more floaters there are, the fewer residuals there are to back them. NAS Exhaustive Concordance. Tob. Even if tax-exempt issuance were flooding the market, the interest in starting TOB programs may be more tempered than in previous years as appetite for leverage has diminished. For example, a TOB investor could deposit $100 million in bonds into a trust with 50% to 75% proportionality, and receive $50 million to $75 million back in cash from the floater proceeds, thereby enabling the investor to purchase additional muni bonds. What is the meaning of Tob.? Idioms. With this nuptial perspective, our ultimate destiny is the eternal wedding feast of the lamb, called heaven, where we can be with our Divine Bridegroom Messiah for eternity. A further impediment is proposed new legislation — often dubbed the “Volcker Rule” — to restrict bank proprietary t­rading. There may be more than one definition of TOB, so check it out on our dictionary for all meanings of TOB one by one. Top Of Beam. Get the latest TOD'S SPA EO 2 (TOB.F) stock news and headlines to help you in your trading and investing decisions. in a sentence? ver. The yield of the residual certificate changes in opposition to the floating-rate, so it is often called the “inverse floater.”. What does TOB stand for in Finance? “But now, even though your allowed leverage is maybe less than half of what the liquidity sponsor used to allow you to do, the spread is so great that it even more than makes up for the fact that the leverage is down.”. “So is the legislation going to hurt the prop desk TOB programs as they stand today? Below is a list of the most common examples: 1. In other words, TOB programs and BABs could work together to take long-term tax-exempt bonds out of the market — TOBs through purchase, BABs through substitution of taxable debt for tax-exempts — which would drive borrowing rates for municipal issuers even lower. “A majority of these long-dated, high-grade bonds are going to BABs and other programs, so you’re not getting the supply that you need to support an extension of the market.”. The muni-to-Treasury ratio for 30-year debt jumped to 208% in December 2008, compared to the decade median average of 95.6%. Tob Rhyming, similar names and popularity. One is that hedging costs are greater now than when the yield curve was flatter. In either case, the outlier risk of the ratio trade would be greatly reduced, providing a degree of comfort to those playing spread arbitrage. By contrast, when TOBs were booming in the first six months of 2007, that same spread averaged just 54 basis points. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. 1. “Remember that TOBs are just a financing mechanism,” McCarthy said. Former Michigan Gov. There may be more than one meaning of TOB, so check it out all meanings of TOB one by one. definition: Tobit | Meaning, pronunciation, translations and examples construction, engineering, drawing. Examples: NFL, For example, if a facility determines an inpatient admission is not medically necessary after discharge, they would first submit a no-pay/provider liable inpatient claim, a 110 TOB. In a different fashion, then, BABs are pushing down the yield curve just as TOBs once did. The Definition of TOB is given above so check it out related information. design, construction. And if you didn’t have that, they would force you to unwind the trust.”. This page is all about the acronym of TOB and its meanings as Transfer of Business. Though the 30-year ratio is lower than last decade’s average, McCarthy said the ratio trade is still attractive now from a long-term perspective. That rendered the carry trade hugely unprofitable as investors were paying short-term rates far in excess of what the underling collateral was providing. But TOB investors said the spread has been so wide recently that pre-crisis levels of revenue are still possible. NASA, Find out what is the full meaning of TOB on Abbreviations.com! Two problems exist, though. “Different sponsors had different hurdles, but broadly speaking, it had to have two double-A ratings —¯Aa3 didn’t even work for some of the sponsors. In fact, several other dynamics are holding a strong resurgence back. Original Word: טוֹב Part of Speech: Verb Transliteration: tob Phonetic Spelling: (tobe) Definition: to be pleasing or good. Jeff Previdi, a senior analyst at ­Standard & Poor’s, said the agency has been rating approximately 15 to 20 new TOB trusts each week. Tob name meaning, Hebrew baby Boy name Tob meaning,etymology, history, presonality details. An individual who owns stock in a company is called a shareholder and is eligible to claim part of the company’s residual assets and earnings (should the company ever be dissolved). What is TOB? Find out the meaning and the origin of the name, Tob on SheKnows.com. However, there is a TOB equivalent in the taxable market, called a taxable repurchase agreement. For Standard & Poor’s Previdi, this raises the question of whether TOBs could exert the same market influence they once had. As mentioned above, TOB is used as an acronym in text messages to represent Type of Bill. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. Using the long-term bonds as collateral, the trust then creates two notes, a floater certificate and a ­residual certificate. 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