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. 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. 2. "global warming" This is used as an international standard for shipping to Benin. 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. 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. Examples: NFL, Fuck off TOB, wow you really are a self-obsessed, unneccesarily aggressive, ignorant and obscenely did you see that tob over there? BABs cannot be deposited into the trusts because the tax-exempt floaters must be backed by tax-exempt collateral. “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.”. If banks are sitting on cash, the incentive to finance through a TOB is minimal. “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. “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. © 1988-2021, By contrast, when TOBs were booming in the first six months of 2007, that same spread averaged just 54 basis points. “When TOBs were being a force in the marketplace, one of the beneficiaries overall was muni issuers,” Previdi said. What is the meaning of TOB? 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. Find out what is the full meaning of TOB on Abbreviations.com! 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. “So in theory, the market could become as big as it was before or even larger, if it continues to grow that way.”. 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. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. Top TOB abbreviation related to Finance: Tobacco Settlement Authority A great deal of stability has since returned to the municipal market. But TOB investors said the spread has been so wide recently that pre-crisis levels of revenue are still possible. Idioms. 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. In today’s climate, however, such leverage isn’t possible. There’s not a lot of it out there.”, “Will it limit the potential return of that going forward? There may be more than one definition of TOB, so check it out on our dictionary for all meanings of TOB one by one. 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. The residual certificate, or junior note, is sold back to the investor. This page is all about the acronym of TOB and its meanings as Transfer of Business. When issuing BABs, issuers can opt to receive a 35% direct interest subsidy from the federal government. In trader parlance, the floater certificate is known as the tender-option bond. 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. 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. They may just spin off brokerage houses. “I couldn’t be more pleased to learn that Alabama will be the new home to the United States Space Command," said Alabama Gov. 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.". In either case, the outlier risk of the ratio trade would be greatly reduced, providing a degree of comfort to those playing spread arbitrage. “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.”. 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. TOB Stands For : Take Over Bid. In order to be hurt, something has to be alive, and proprietary trading died in the financial crisis, they said. As mentioned above, TOB is used as an acronym in text messages to represent Type of Bill. 2895. tob Strong's Concordance. And in that case, then it’s 'Game On’ again.”. The floater certificate, or senior note, provides a short-term variable-rate with a put option. The reason is higher ratios indicate cheap munis, so when ratios rise more investors will be attracted to the TOB ratio trade. The muni-to-Treasury ratio for 30-year debt jumped to 208% in December 2008, compared to the decade median average of 95.6%. 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%. “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 dearth of eligible long-term tax-exempt bonds in the current market, however, also reduces the incentive for banks to create leverage. 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. “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. 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. 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. ... Financial Dictionary. In its heyday in 2007, the volume of TOBs grew to more than $200 billion, representing about 8% of the municipal market. Word(s) in meaning: chat “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.”. Without the same leverage as before, few are expecting the tender-option market to become as influential as it was before the credit crisis. 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. NAS Exhaustive Concordance. tob: to be pleasing or good. 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. ver. This page is all about the acronym of TOB and its meanings as Type of Bill. Tob. 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. Meaning ***** TOB: Tender Option Bond ***** TOB: Takeover Bid **** TOB: Terms of … As one banker recently commented, “How the hell could that ever happen?”. “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. “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. ISO 3166-2 geocode for Bouvet Island. State Treasurer Dale Folwell said his office was rewarded for staying the course on a decades-long conservative management strategy. But the programs, which suffered losses and contracted dramatically during the credit crisis, have not yet taken flight now that the market has recovered. 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. “As TOB desks were active in buying municipal bonds — particularly long term — that pushed down yields for issuers, and that was a great thing.”. Another is demand: the program uses leverage, and investors don’t have much appetite for risk these days. See more. design, construction. 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. “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. 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. Pedro Pierluisi wants to make sure that employees are not dismissed and don't lose their benefits, among other things. PSP, HIPAA What does TOB stand for in Finance? The Definition of TOB is given above so check it out related information. Below is a list of the most common examples: 1. But it depends what the banks and brokers do to counter the new environment. What are synonyms for Tob. 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. Compared to the decade average of 95.6%, this indicates that long-term tax-exempts are relatively expensive. Like what you see? Two problems exist, though. 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. The best time to be in a trade is when no one else wants to be in it.”. There are many different career paths and jobs that perform a wide range of finance activities. 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). For investors, the attraction for the TOB program comes from the fact that the municipal yield curve is naturally steep, compared to other assets. Three years earlier the six-month average was 311 basis points. How do you use 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. Please note that Transfer of Business is not the only meaning of TOB. 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. “So is the legislation going to hurt the prop desk TOB programs as they stand today? What is TOB? 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. service, business, insurance. Kay Ivey. Tob name meaning, Biblical baby Girl name Tob meaning,etymology, history, presonality details. To some extent, that’s happening already, but only in a limited way. Please note that Type of Bill is not the only meaning of TOB. 'Take Over Bid' is one option -- get in to view more @ The Web's largest and most authoritative acronyms and abbreviations resource. 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. “When the crisis hit, all that stuff was unwound,” McCarthy said. For Standard & Poor’s Previdi, this raises the question of whether TOBs could exert the same market influence they once had. 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. 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. “Even though money-market fund assets are negative on a week-to-week basis, financing is more attractive now than ever.”. TOB: Triangle-Based Omni-Purpose Building (power generation system) TOB: The Ordinary … Former Michigan Gov. What is the definition of Tob.? Original Word: טוֹב Part of Speech: Verb Transliteration: tob Phonetic Spelling: (tobe) Definition: to be pleasing or good. As a result, municipalities are choosing to borrow in the taxable market, particularly on the long end where savings can be greatest. In terms of volume, the TOB market is still about 60% lower than it once was, bankers familiar with the programs said. 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. 13 definitions of TOB. “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 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 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. This page is all about the meaning, abbreviation and acronym of TOB explaining the definition or meaning and giving useful information of similar terms. Top of Beam + 1 variant. “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.”. Before articulating those factors, however, it may be helpful to gain a better understanding of how the product works. In addition, “the cash-flow portion of the trade has possibly never been better,” he said, speaking of the steep yield curve. Considered as one of the greatest legacies of St John Paul II, this catechesis explains Catholic teachings through the lenses of the nuptial mystery. 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. 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. Investing personal money in stocksStockWhat is a stock? By taking long-term tax-exempt debt out of the market, BABs are constraining tax-exempt supply, thereby lowering yields. NASA, Finance is the study of money management and the process of acquiring needed funds. Find out the meaning and the origin of the name, Tob on SheKnows.com. 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. Adjective and noun טוב ( tob ) means good; noun טוב ( tub ), describes a good thing or goodness, and noun טובה ( toba ) denotes welfare. Meanings of TOB in English As mentioned above, TOB is used as an acronym in text messages to represent Transfer of Business. One reason is the lower leverage, meaning there is more collateral backing the trade than there was before. Prior to the credit crisis, TOB programs were using up to 10 times leverage, sometimes more. Top Of Beam. Tournament of Books - 2019 TOB - the Tourney: 2019 TOB Shortlist Showing 1-50 of 507. Acronym Finder, All Rights Reserved. Terms of Business. 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. 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. That rendered the carry trade hugely unprofitable as investors were paying short-term rates far in excess of what the underling collateral was providing. 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. Tob Rhyming, similar names and popularity. The meaning of the TOB is also explained earlier. Then, in the wake of the Lehman Brothers collapse in September 2008, short-term rates shot to record highs. A tender option bond (from now on TOB) is the municipal bond market's answer to the classic borrow short and invest long. Till now you might have got some idea about the acronym, abbreviation or meaning of TOB If banks are sitting on cash, the incentive to finance through a TOB is minimal. Jeff Previdi, a senior analyst at Standard & Poor’s, said the agency has been rating approximately 15 to 20 new TOB trusts each week. What does TOB stand for?. He noted, for instance, that ratios are a little higher now than they were three years ago when TOB structures were booming. 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 ISO 3166-1 alpha-2 code for Bouvet Island. “Remember that TOBs are just a financing mechanism,” McCarthy said. 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. That perform a wide range of finance activities long end where savings can be greatest in particular up. 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