Without the same leverage as before, few are expecting the tender-option market to become as influential as it was before the credit crisis. definition: Tobit | Meaning, pronunciation, translations and examples 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%. In order to be hurt, something has to be alive, and proprietary trading died in the financial crisis, they said. Finance TOB abbreviation meaning defined here. “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. And if you didn’t have that, they would force you to unwind the trust.”. And in that case, then it’s 'Game On’ again.”. As mentioned above, TOB is used as an acronym in text messages to represent Type of Bill. Looking for the definition of TOB? In aggregate, the volume of cash held by commercial banks jumped to $1.373 trillion in late February from $310 billion in September 2008, according to the Fed. Problems aren’t only confined to the supply side. In its heyday in 2007, the volume of TOBs grew to more than $200 billion, representing about 8% of the municipal market. In addition, “the cash-flow portion of the trade has possibly never been better,” he said, speaking of the steep yield curve. “As TOB desks were active in buying municipal bonds — particularly long term — that pushed down yields for issuers, and that was a great thing.”. 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. Municipal market dynamics are so favorable right now that investors involved in tender-option bond programs can create better revenue streams compared to what they received before the financial crisis, but at half the risk or less. “It’s ironic, but isn’t that just the way things work on Wall Street? Tob. service, business, insurance. The meaning of the TOB is also explained earlier. 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. “So is the legislation going to hurt the prop desk TOB programs as they stand today? Idioms. “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.”. But TOB investors said the spread has been so wide recently that pre-crisis levels of revenue are still possible. The Definition of TOB is given above so check it out related information. BABs cannot be deposited into the trusts because the tax-exempt floaters must be backed by tax-exempt collateral. What is TOB? 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). 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. Definition of TOB in Business & Finance. where did that tob go?. It should be noted, however, that the Treasury curve flattened around the same period, so other market factors were at work in addition to spread arbitrage. “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. Kay Ivey. 'Take Over Bid' is one option -- get in to view more @ The Web's largest and most authoritative acronyms and abbreviations resource. As one banker recently commented, “How the hell could that ever happen?”. Not only are cautious investors adverse to assuming greater risks, but liquidity sponsors are also unlikely to lend the money. There may be more than one meaning of TOB, so check it out all meanings of TOB one by one. Meaning ***** TOB: Tender Option Bond ***** TOB: Takeover Bid **** TOB: Terms of … What is the meaning of Tob.? Word(s) in meaning: chat  The floater certificate, or senior note, provides a short-term variable-rate with a put option. “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.”. “When TOBs were being a force in the marketplace, one of the beneficiaries overall was muni issuers,” Previdi said. 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. See more. Word Origin a prim. NASA, “If an investor wants to buy ­additional bonds once their cash on hand is deployed, that’s when there’s an incentive to deposit bonds in a TOB.”, He added: “While first instincts would suggest that the substantial positive slope of the muni curve, expectations for higher tax rates, and favorable market technicals should result in demand for leverage in the muni market, until TOB residual holders are short on cash and identifying more bonds that they want to own, TOB volume may be less than otherwise anticipated.”. T.O.B. “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. 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. 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 best time to be in a trade is when no one else wants to be in it.”. “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. 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. 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. “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. 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. 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. Like what you see? For Standard & Poor’s Previdi, this raises the question of whether TOBs could exert the same market influence they once had. Meanings of TOB in English As mentioned above, TOB is used as an acronym in text messages to represent Transfer of Business. Prior to the credit crisis, TOB programs were using up to 10 times leverage, sometimes more. If banks are sitting on cash, the ­incentive to finance through a TOB is minimal. Fuck off TOB, wow you really are a self-obsessed, unneccesarily aggressive, ignorant and obscenely did you see that tob over there? The spousal meaning of the body prefigures the redemptive meaning of the body. TOB: Triangle-Based Omni-Purpose Building (power generation system) TOB: The Ordinary … A further impediment is proposed new legislation — often dubbed the “Volcker Rule” — to restrict bank proprietary t­rading. 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. Please look for them carefully. The agency rated $23.5 billion of TOB floating-rate certificates in that period, which was more than the $22.4 billion rated in all of 2006 — then a record year for TOB activity. I guess. Original Word: טוֹב Part of Speech: Verb Transliteration: tob Phonetic Spelling: (tobe) Definition: to be pleasing or good. 2. 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. Lower leverage means less risk, and generally that means less potential for profit. 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