Management Buyout (MBO)
When the managers and/or executives of a company purchase controlling interest in a company from existing shareholders. Investopedia Says:
In most cases, the management will buy out all the outstanding shareholders and then take the company private because it feels it has the expertise to grow the business better if it controls the ownership. Quite often, management will team up with a venture capitalist to acquire the business because it's a complicated process that requires significant capital. Related Terms:
Buyout
Employee Buyout - EBO
Interest
Leveraged Buyout
Management Buy-In - MBI
Private Company
Shareholder
Venture Capitalist Municipals-Over-Bonds Spread (MOB)
The difference in yields between a municipal bond and a Treasury bond with the same time to maturity. The MOB is sometimes used for determining tax strategies. Investopedia Says:
Most MOB spread calculations actually use the yield implicit in futures prices for munis and Treasuries listed on the Chicago Board of Trade. The MOB spread is essentially a comparison of the interest rate spread between federal government debt (Treasuries) and state/municipal debt (municipal bonds). Related Terms:
Chicago Board of Trade - CBOE
Futures Contract
Municipal Bond
Placement Ratio
Sub-Sovereign Obligation - SSO
Treasury Bond |