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 |