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 easiest way to define finance is by providing examples of the activities it includes. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. If banks are sitting on cash, the incentive to finance through a TOB is minimal. 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. 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. Not only are cautious investors adverse to assuming greater risks, but liquidity sponsors are also unlikely to lend the money. But the programs, which suffered losses and contracted dramatically during the credit crisis, have not yet taken flight now that the market has recovered. Fuck off TOB, wow you really are a self-obsessed, unneccesarily aggressive, ignorant and obscenely did you see that tob over there? Investing personal money in stocksStockWhat is a stock? service, business, insurance. Problems aren’t only confined to the supply side. 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. Before articulating those factors, however, it may be helpful to gain a better understanding of how the product works. 2. In either case, the outlier risk of the ratio trade would be greatly reduced, providing a degree of comfort to those playing spread arbitrage. As a result, municipalities are choosing to borrow in the taxable market, particularly on the long end where savings can be greatest. In trader parlance, the floater certificate is known as the tender-option bond. The spousal meaning of the body prefigures the redemptive meaning of the body. Please look for them carefully. 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%. If banks are sitting on cash, the incentive to finance through a TOB is minimal. What is the meaning of Tob.? 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. The success of taxable Build America Bonds — which has limited the supply of tax-exempt debt necessary for TOB programs — is one reason. Whether the 35% BAB subsidy is gradually reduced to 28% or some other figure, McCarthy said that wouldn’t really matter — it would just change where the ratio ceilings and floors would go. 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. 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. But it depends what the banks and brokers do to counter the new environment. There are many different career paths and jobs that perform a wide range of finance activities. In today’s climate, however, such leverage isn’t possible. Tob name meaning, Hebrew baby Boy name Tob meaning,etymology, history, presonality details. Then, in the wake of the Lehman Brothers collapse in September 2008, short-term rates shot to record highs. “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.”. 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. 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.
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. “Remember that TOBs are just a financing mechanism,” McCarthy said. To earn a profit on those thin margins, TOB investors in 2007 had to increase the risk on their bets by leveraging at 10 times or more. Two problems exist, though. 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. 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%. The muni-to-Treasury ratio for 30-year debt jumped to 208% in December 2008, compared to the decade median average of 95.6%. I guess. 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. 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. This page is all about the acronym of TOB and its meanings as Transfer of Business. A number of market participants said the impact of that rule could be minimal. In a different fashion, then, BABs are pushing down the yield curve just as TOBs once did. "global warming"
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%. “It’s ironic, but isn’t that just the way things work on Wall Street? Personal finance, corporate finance, and public finance all fall under the umbrella of this broad term. “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.”. Till now you might have got some idea about the acronym, abbreviation or meaning of TOB 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. What does TOB stand for?. There may be more than one meaning of TOB, so check it out all meanings of TOB one by one. Please note that Type of Bill is not the only meaning of TOB. construction, engineering, drawing. T.O.B. The deal is the latest example of a consolidation in the financial information and data industry. When issuing BABs, issuers can opt to receive a 35% direct interest subsidy from the federal government. “When TOBs were being a force in the marketplace, one of the beneficiaries overall was muni issuers,” Previdi said. Find out the meaning and the origin of the name, Tob on SheKnows.com. 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. Finance is the study of money management and the process of acquiring needed funds. 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. 2895. tob Strong's Concordance. But TOB investors said the spread has been so wide recently that pre-crisis levels of revenue are still possible. In addition, “the cash-flow portion of the trade has possibly never been better,” he said, speaking of the steep yield curve. Al analizar comparativamente los datos, existen grandes diferencias reportadas en la literatura sobre TOB. Looking for the definition of TOB? definition: Tobit | Meaning, pronunciation, translations and examples 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 floater certificate, or senior note, provides a short-term variable-rate with a put option. Get the latest TOD'S SPA EO 2 (TOB.F) stock news and headlines to help you in your trading and investing decisions. State Treasurer Dale Folwell said his office was rewarded for staying the course on a decades-long conservative management strategy. ,random
Tob Rhyming, similar names and popularity. NASA,
“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. © 1988-2021,
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. Leverage enters the trade because when the trust issues the floating-rate note, it effectively borrows cash from the money market funds against the long-term collateral, and the investor can use that cash to finance the purchase of more bonds. “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.”. 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. 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). 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. 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. Below is a list of the most common examples: 1. 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. 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. 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). “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.”. By contrast, when TOBs were booming in the first six months of 2007, that same spread averaged just 54 basis points. Top of Beam + 1 variant. Definition of TOB in Business & Finance. TOB definition / TOB means? For investors, the attraction for the TOB program comes from the fact that the municipal yield curve is naturally steep, compared to other assets. 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. 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. 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. And in that case, then it’s 'Game On’ again.”. However, there is a TOB equivalent in the taxable market, called a taxable repurchase agreement. What does TOB stand for in Finance? ISO 3166-1 alpha-2 code for Bouvet Island. 13 definitions of TOB. 1. “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. There’s not a lot of it out there.”, “Will it limit the potential return of that going forward? tob: to be pleasing or good. “Even though money-market fund assets are negative on a week-to-week basis, financing is more attractive now than ever.”. The Definition of TOB is given above so check it out related information. TOB Stands For : Take Over Bid. 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. What is TOB? This page is all about the acronym of TOB and its meanings as Type of Bill. Tob (good), The land of, a place in which Jephthah took refuge when expelled from home by his half-brother, (Judges 11:3) and where he remained, at the head of a band of freebooters, till he was brought back by the sheikhs of Gilead. 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. Word Origin a prim. 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. As mentioned above, TOB is used as an acronym in text messages to represent Type of Bill. “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. 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. Jeff Previdi, a senior analyst at Standard & Poor’s, said the agency has been rating approximately 15 to 20 new TOB trusts each week. Looking for online definition of TOBS or what TOBS stands for? Examples: NFL,
The primary factor creating a favorable climate for TOB programs is the steep yield curve. “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.”.
“I couldn’t be more pleased to learn that Alabama will be the new home to the United States Space Command," said Alabama Gov. In terms of volume, the TOB market is still about 60% lower than it once was, bankers familiar with the programs said. 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. In fact, several other dynamics are holding a strong resurgence back. 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. He noted, for instance, that ratios are a little higher now than they were three years ago when TOB structures were booming. Fall under the umbrella of this broad term TOB name meaning, etymology, history, details. Tod 'S SPA EO 2 ( TOB.F ) stock news and headlines to help meet diversification and... 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