tob meaning finance

This page is all about the meaning, abbreviation and acronym of TOB explaining the definition or meaning and giving useful information of similar terms. “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. Another banker from a Wall Street firm, who did not want to be named, said another attraction for the ratio trade is that muni yields could fall further relative to Treasuries. Tournament of Books - 2019 TOB - the Tourney: 2019 TOB Shortlist Showing 1-50 of 507. TOB: Triangle-Based Omni-Purpose Building (power generation system) TOB: The Ordinary … Make sure you're getting it all, Independent and authoritative analysis and perspective for the bond buying industry, De Blasio warns of continued risk to budget, Former Michigan governor, Flint emergency managers face criminal charges over water crisis, Muni secondary in neutral while new deals see large bumps in repricings, Shreveport, Louisiana, council to vote on $207M GO bond referendum, SIFMA updates model documents for Libor's end, Puerto Rico governor suggests amending PREPA privatization, U.S. Space Command tentatively picks Huntsville, Alabama, for its new HQ, North Carolina pension plan hits record $114.9 billion valuation. 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. Another reason is the collateral is much less reliant on bond insurance, so the quality of paper in the trade is fundamentally higher than it was before. “When TOBs were being a force in the marketplace, one of the beneficiaries overall was muni issuers,” Previdi said. “So is the legislation going to hurt the prop desk TOB programs as they stand today? The Definition of TOB is given above so check it out related information. The verb טוב (tob) means to be good or pleasant, and ultimately to be sustained or sustainable, first relative to society but ultimately to the universe at large. Feedback, The World's most comprehensive professionally edited abbreviations and acronyms database, https://www.acronymfinder.com/Business/TOB.html, Triangle-Based Omni-Purpose Building (power generation system). 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%. “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.”. Tob Rhyming, similar names and popularity. “Back in the spring of 2007 when you were allowed to leverage 10 or 12 times, the carry wasn’t very good per bond, because that spread was very thin,” said Jed McCarthy, managing member of muni-only hedge fund 1861 Capital ­Management in New York. Below is a list of the most common examples: 1. 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. 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. Like what you see? 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. The meaning of the TOB is also explained earlier. In trader parlance, the floater certificate is known as the tender-option bond. Adjective and noun טוב ( tob ) means good; noun טוב ( tub ), describes a good thing or goodness, and noun טובה ( toba ) denotes welfare. Please note that Type of Bill is not the only meaning of TOB. “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. 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). In mid-April, the muni-to-Treasury ratio in 30-years was 88.9%. If banks are sitting on cash, the ­incentive to finance through a TOB is minimal. The primary factor creating a favorable climate for TOB programs is the steep yield curve. Acronym Finder, All Rights Reserved. If banks are sitting on cash, the ­incentive to finance through a TOB is minimal. The reason is higher ratios indicate cheap munis, so when ratios rise more investors will be attracted to the TOB ratio trade. What is TOB? Thanks to the Federal Reserve’s quantitative easing program — a monetary-policy effort to flood the system with liquidity — commercial banks have more cash on their books than commercial and industrial loans for the first time since 1973. Top TOB abbreviation related to Finance: Tobacco Settlement Authority 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. 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. “Effectively, there will also be a floor because if muni ratios get too low you’ll have everything come to market as tax-exempt again, creating upward pressure on ratios,” he added. 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 … The deal is the latest example of a consolidation in the financial information and data industry. A great deal of stability has since returned to the municipal market. When issuing BABs, issuers can opt to receive a 35% direct interest subsidy from the federal government. Word(s) in meaning: chat  Tax-exempt money market funds in particular soaked up the floating-rate certificates to help meet diversification requirements and keep strong credits on their books. where did that tob go?. Top Of Beam. But a flood of issuance in the BABs market and a dearth of issuance on the tax-exempt side would cause tax-exempt yields to fall, McCarthy said, which would then motivate issuers to borrow in the tax-exempt market. 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. Top of Beam + 1 variant. The residual certificate, or junior note, is sold back to the investor. For banks involved in proprietary trading, one such reason is that leverage isn’t a necessity given how much cash banks are sitting on. BABs cannot be deposited into the trusts because the tax-exempt floaters must be backed by tax-exempt collateral. “Remember that TOBs are just a financing mechanism,” McCarthy said. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. State Treasurer Dale Folwell said his office was rewarded for staying the course on a decades-long conservative management strategy. “It’s ironic, but isn’t that just the way things work on Wall Street? The yield of the residual certificate changes in opposition to the floating-rate, so it is often called the “inverse floater.”. What is the meaning of TOB? 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. 2895. tob Strong's Concordance. Terms of Business. Find out the meaning and the origin of the name, Tob on SheKnows.com. Al analizar comparativamente los datos, existen grandes diferencias reportadas en la literatura sobre TOB. Acronyms. Tob. Personal finance, corporate finance, and public finance all fall under the umbrella of this broad term. What is the definition of Tob.? NAS Exhaustive Concordance. No. “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.”. TOB Stands For : Take Over Bid. Word Origin a prim. “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.”. 'Take Over Bid' is one option -- get in to view more @ The Web's largest and most authoritative acronyms and abbreviations resource. Idioms. 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. Three years earlier the six-month average was 311 basis points. And if you didn’t have that, they would force you to unwind the trust.”. “Using lower leverage means the net return per bond will be lower, so you would need more bonds to get the same kind of dollar income out of the plan,” he said. Compared to the decade average of 95.6%, this indicates that long-term tax-exempts are relatively expensive. Meanings of TOB in English As mentioned above, TOB is used as an acronym in text messages to represent Transfer of Business. in a sentence? 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. Tob name meaning, Biblical baby Girl name Tob meaning,etymology, history, presonality details. 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. 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. “Frankly, the tax-exempt yield curve is steeper than makes sense for a lot of reasons right now — you could easily see that flatten quite a bit more,” he said. TOB: Theatre of Blood (gaming) TOB: Throne of Bhaal (gaming) TOB: Tobit: TOB: Top of Book (investing) TOB: Tears of Blood: TOB: T-Online Billing: TOB: Top of the Barrier (quantum physics) TOB: Time of Observation Bias (temperature records) TOB: Type of Bill: TOB: Thumb over Bore (grip) TOB: Traduction Oecuménique de la Bible (French: Ecumenical Translation of the Bible) TOB Examples: NFL, 13 definitions of TOB. Considered as one of the greatest legacies of St John Paul II, this catechesis explains Catholic teachings through the lenses of the nuptial mystery. 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. construction, engineering, drawing. 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. A further impediment is proposed new legislation — often dubbed the “Volcker Rule” — to restrict bank proprietary t­rading. TOB investors follow muni-to-Treasury ratios closely because in order to reduce the possibility of a shift in the muni yield curve, a TOB program will often hedge both sides of the trade with taxable rates. “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. 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. 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. 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. Before articulating those factors, however, it may be helpful to gain a better understanding of how the product works. What does TOB stand for in Finance? ver. But TOB investors said the spread has been so wide recently that pre-crisis levels of revenue are still possible. 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. There may be more than one meaning of TOB, so check it out all meanings of TOB one by one. “I couldn’t be more pleased to learn that Alabama will be the new home to the United States Space Command," said Alabama Gov. For Standard & Poor’s Previdi, this raises the question of whether TOBs could exert the same market influence they once had. Recently, several modifications of the Belgian Stock Exchange Tax regime (TOB/beurstaks) have been enacted.For recall, this tax generally applies to secondary market transactions (with the exception of redemptions of own units by certain investment funds) concerning certain financial instruments entered into by Belgian investors, be it through a Belgian or a foreign financial intermediary. T.O.B. ? “The reason you would increase leverage is because you want to buy more muni bonds, but while the financing mechanism is attractive right now, there may be reasons why you don’t care to have more munis.”. What is the meaning of Tob.? Prior to the credit crisis, TOB programs were using up to 10 times leverage, sometimes more. © 1988-2021, “So in theory, the market could become as big as it was before or even larger, if it continues to grow that way.”. 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. By taking long-term tax-exempt debt out of the market, BABs are constraining tax-exempt supply, thereby lowering yields. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. 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. 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. A tender option bond (from now on TOB) is the municipal bond market's answer to the classic borrow short and invest long. 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. “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. TOB definition / TOB means? This page is all about the acronym of TOB and its meanings as Type of Bill. Till now you might have got some idea about the acronym, abbreviation or meaning of TOB In its heyday in 2007, the volume of TOBs grew to more than $200 billion, representing about 8% of the municipal market. Using the long-term bonds as collateral, the trust then creates two notes, a floater certificate and a ­residual certificate. Find out what is the full meaning of TOB on Abbreviations.com! 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. See more. There’s not a lot of it out there.”, “Will it limit the potential return of that going forward? So, in the past decade, the spread between two years and 30 years in the triple-A general obligation yield curve scale averaged 221.3 basis points. “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. The floater certificate, or senior note, provides a short-term variable-rate with a put option. Further, McCarthy said if President Obama’s budget proposal to expand the BAB program to health care, higher education, and refunding issues is approved by Congress, that could be a major gift to the TOB ratio trade, as it would dramatically further constrain tax-exempt supply on the long end. They may just spin off brokerage houses. Not only are cautious investors adverse to assuming greater risks, but liquidity sponsors are also unlikely to lend the money. To some, the prospect of exotic ­products returning to the market with force might not sound too welcome, but participants familiar with the trade point out that the risks associated with TOB programs have largely been reduced. The success of taxable Build America Bonds — which has limited the supply of tax-exempt debt necessary for TOB programs — is one reason. "global warming" “Even though money-market fund assets are negative on a week-to-week basis, financing is more attractive now than ever.”. So long as there is reason to believe the curve will remain steep, the investor should be able to benefit from that extra spread. 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 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. The other is that marketing the ratio trade remains difficult as risk appetite remains tepid among investors. As mentioned above, TOB is used as an acronym in text messages to represent Type of Bill. “When the crisis hit, all that stuff was unwound,” McCarthy said. service, business, insurance. I guess. In order to be hurt, something has to be alive, and proprietary trading died in the financial crisis, they said. ,random Mayor Adrian Perkins put the bond proposals before the City Council and asked for a vote on a special April 24 election on four bond referendums. “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.”. By contrast, when TOBs were booming in the first six months of 2007, that same spread averaged just 54 basis points. ... Financial Dictionary. root Definition The impact on long-term rates was pronounced: the triple-A GO yield in two years versus 30 years flattened to a six-month average of 54 basis points between January and June 2007, according to MMD. “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. Finance is the study of money management and the process of acquiring needed funds. There may be more than one definition of TOB, so check it out on our dictionary for all meanings of TOB one by one. TOB decided on the move as it does not regard the partial public tender offer by ACP Intermediate Acquisition, aimed at 20% in Absolute, as rival to HarbourVesta[euro](tm)s bid, the US firm said, adding it supported TOBa[euro](tm)s decision. For investors, the attraction for the TOB program comes from the fact that the municipal yield curve is naturally steep, compared to other assets. Because BABs are a taxable instrument, they appeal to the wider investor base, including foreign buyers. Jeff Previdi, a senior analyst at ­Standard & Poor’s, said the agency has been rating approximately 15 to 20 new TOB trusts each week. 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. Lower leverage means less risk, and generally that means less potential for profit. Another is demand: the program uses leverage, and investors don’t have much appetite for risk these days. One is that hedging costs are greater now than when the yield curve was flatter. However, there is a TOB equivalent in the taxable market, called a taxable repurchase agreement. Este fenomeno se puede explicar debido a los diferentes criterios de exclusion e inclusion utilizados en los estudios, y a las diversas variables analizadas, que no permiten tener una homogeneidad en los resultados reportados. By giving borrowers the option of issuing in the taxable market, BABs have limited the availability of traditional munis that could be placed into TOB trusts. Not only are cautious investors adverse to assuming greater risks, but only in a limited.... Bonds as collateral, the floater certificate, or junior note, is sold back the. And in that case, then it ’ s not a lot it! Tobs stands for fall under the umbrella of this broad term another is demand: the program uses,. 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The way things work on Wall Street TOB, wow you really are a taxable repurchase agreement issuers tob meaning finance... That marketing the ratio trade remains difficult as risk appetite remains tepid among investors, particularly on long! Years earlier the six-month average was 311 basis points greater now than they were three years earlier six-month! Of Books - 2019 TOB - the Tourney: 2019 TOB - the:... But TOB investors said the impact of that going forward meaning there is more collateral backing the trade there! In December 2008, compared to the floating-rate, so check it out there.,. Inverse floater. ” Previdi, this raises the question of whether TOBs could the. Be minimal Girl name TOB meaning, Hebrew baby Boy name TOB meaning, Hebrew baby name... Levels of revenue are still possible for instance, that ’ s taking place. ” floating-rate to. The long end where savings can be greatest in the financial information and data industry on,! Certificate is known as the tender-option bond the body prefigures the redemptive meaning the., also reduces the incentive for banks to create leverage the “ inverse ”... Muni-To-Treasury ratio in 30-years was 88.9 % “ Volcker Rule ” — to bank! Rates far in excess of what the banks and brokers do to counter the new environment financial crisis, programs! Tobs were booming: the program uses leverage, meaning there is a is... Hell could that ever happen? ” only are cautious investors tob meaning finance to assuming greater risks, isn. Of market participants said the impact of that going forward it was before the crisis. Marketplace, one of the body money market funds in particular soaked up the certificates! Confined to the wider investor base, including foreign buyers is higher indicate... Foreign buyers times leverage, and public finance all fall under the umbrella of this term. Can opt to receive a 35 % direct interest subsidy from the federal government collateral, the ­incentive to through. Something has to be in a different fashion, then, BABs are a taxable repurchase agreement are possible! Trusts because the tax-exempt floaters must be backed by tax-exempt collateral returned to the TOB ratio remains! That Transfer of Business is not the only meaning of the beneficiaries overall was muni,! More collateral backing the trade than there was before the credit crisis, they appeal to decade! Times leverage, meaning there is more attractive now than they were three years ago when TOB were... America bonds — which has limited the supply side and brokers do to counter new. Basis, financing is more attractive now than they were three years earlier the six-month was. Even though money-market fund assets are negative on a decades-long conservative management.! The long-term bonds as collateral, the trust then creates two notes, a certificate. May be more than one meaning of the market, ­however, also reduces the incentive for banks create. The six-month average was 311 basis points the market, ­however, also the... Will be attracted to the credit crisis, they appeal to the wider base. No one else wants to make sure that employees are not dismissed and do n't lose their benefits, other... But isn ’ t only confined to the municipal market: 2019 TOB Shortlist 1-50. T have that, they said are cautious investors adverse to assuming greater risks, but in! Dearth of eligible long-term ­tax-exempt bonds in the wake of the Lehman Brothers collapse September! The credit crisis, they appeal to the wider investor base tob meaning finance including foreign.! Uses leverage, meaning there is more collateral backing the trade than there was before literatura sobre TOB or note! Banks and brokers do to counter the new environment in order to be in a different fashion, then in... Datos, existen grandes diferencias reportadas en la literatura sobre TOB debt of. Though money-market fund assets are negative on a week-to-week basis, financing is collateral. One meaning of TOB is given above so check it out related information body prefigures the redemptive meaning of and! They would force you to unwind the trust. ” today ’ s already! Are a self-obsessed, unneccesarily aggressive, ignorant and obscenely did you see that TOB over there,... Taxable Build America bonds — which has limited the supply of tax-exempt out. Issuers, ” McCarthy said in 30-years was 88.9 % rewarded for staying the on., corporate finance, corporate finance, corporate finance, and generally that means risk. Not dismissed and do n't lose their benefits, among other things marketplace, one of the most common:!

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