definition: Tobit | Meaning, pronunciation, translations and examples 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. Please note that Type of Bill is not the only meaning of TOB. In either case, the outlier risk of the ratio trade would be greatly reduced, providing a degree of comfort to those playing spread arbitrage. Three years earlier the six-month average was 311 basis points. Tob name meaning, Hebrew baby Boy name Tob meaning,etymology, history, presonality details. Fuck off TOB, wow you really are a self-obsessed, unneccesarily aggressive, ignorant and obscenely did you see that tob over there? 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. ,random What does TOB stand for?. 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. Finance TOB abbreviation meaning defined here. Personal finance, corporate finance, and public finance all fall under the umbrella of this broad term. Compared to the decade average of 95.6%, this indicates that long-term tax-exempts are relatively expensive. 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 But when the credit crisis hit financial markets, the once-lucrative carry trade quickly went sour, forcing those involved to unwind the trades and take heavy losses. Powell, speaking on a livestreamed event, said interest rates will be raised "no time soon" and there will be plenty of notice "well in advance of active consideration.". The spousal meaning of the body prefigures the redemptive meaning of the body. What does TOB stand for in Finance? 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. ver. Below is a list of the most common examples: 1. 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. 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. 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. ? Top Of Beam. 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. “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. Meanings of TOB in English As mentioned above, TOB is used as an acronym in text messages to represent Transfer of Business. When issuing BABs, issuers can opt to receive a 35% direct interest subsidy from the federal government. If banks are sitting on cash, the ­incentive to finance through a TOB is minimal. He noted, for instance, that ratios are a little higher now than they were three years ago when TOB structures were booming. “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. PSP, HIPAA “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 are synonyms for Tob. By taking long-term tax-exempt debt out of the market, BABs are constraining tax-exempt supply, thereby lowering yields. 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. 1. “When the crisis hit, all that stuff was unwound,” McCarthy said. 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). Prior to the credit crisis, TOB programs were using up to 10 times leverage, sometimes more. Find out what is the full meaning of TOB on Abbreviations.com! “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. in a sentence? Pedro Pierluisi wants to make sure that employees are not dismissed and don't lose their benefits, among other things. T.O.B. 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. “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. 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. Tob name meaning, Biblical baby Girl name Tob meaning,etymology, history, presonality details. The other is that marketing the ratio trade remains difficult as risk appetite remains tepid among investors. Looking for online definition of TOBS or what TOBS stands for? Terms of Business. “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. “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. The dearth of eligible long-term ­tax-exempt bonds in the current market, ­however, also reduces the incentive for banks to create leverage. “Even though money-market fund assets are negative on a week-to-week basis, financing is more attractive now than ever.”. If banks are sitting on cash, the ­incentive to finance through a TOB is minimal. Please note that Transfer of Business is not the only meaning of TOB. 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. “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. One is that hedging costs are greater now than when the yield curve was flatter. Looking for the definition of TOB? 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. The best time to be in a trade is when no one else wants to be in it.”. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. 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. There may be more than one definition of TOB, so check it out on our dictionary for all meanings of TOB one by one. “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.”. construction, engineering, drawing. 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%. I guess. Please look for them carefully. “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. 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. 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. That rendered the carry trade hugely unprofitable as investors were paying short-term rates far in excess of what the underling collateral was providing. 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. 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. 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. There’s not a lot of it out there.”, “Will it limit the potential return of that going forward? The reason is higher ratios indicate cheap munis, so when ratios rise more investors will be attracted to the TOB ratio trade. 'Take Over Bid' is one option -- get in to view more @ The Web's largest and most authoritative acronyms and abbreviations resource. What is TOB? “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.”. In a different fashion, then, BABs are pushing down the yield curve just as TOBs once did. Lower leverage means less risk, and generally that means less potential for profit. “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. where did that tob go?. This page is all about the acronym of TOB and its meanings as Type of Bill. 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). 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. 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. 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. “It’s ironic, but isn’t that just the way things work on Wall Street? To some extent, that’s happening already, but only in a limited way. “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. The easiest way to define finance is by providing examples of the activities it includes. ISO 3166-2 geocode for Bouvet Island. The muni-to-Treasury ratio for 30-year debt jumped to 208% in December 2008, compared to the decade median average of 95.6%. The deal is the latest example of a consolidation in the financial information and data industry. A tender option bond (from now on TOB) is the municipal bond market's answer to the classic borrow short and invest long. Problems aren’t only confined to the supply side. The success of taxable Build America Bonds — which has limited the supply of tax-exempt debt necessary for TOB programs — is one reason. In mid-April, the muni-to-Treasury ratio in 30-years was 88.9%. The primary factor creating a favorable climate for TOB programs is the steep yield curve. Possible TB meaning as an acronym, abbreviation, shorthand or slang term vary from category to category. © 1988-2021, The yield of the residual certificate changes in opposition to the floating-rate, so it is often called the “inverse floater.”. The residual certificate, or junior note, is sold back to the investor. NASA, As mentioned above, TOB is used as an acronym in text messages to represent Type of Bill. 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. root Definition State Treasurer Dale Folwell said his office was rewarded for staying the course on a decades-long conservative management strategy. Before articulating those factors, however, it may be helpful to gain a better understanding of how the product works. 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. Examples: NFL, Using the long-term bonds as collateral, the trust then creates two notes, a floater certificate and a ­residual certificate. 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. So long as there is reason to believe the curve will remain steep, the investor should be able to benefit from that extra spread. The meaning of the TOB is also explained earlier. Former Michigan Gov. 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. 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.