MOB (Municipals-over-Bonds) Spread
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 Commentary
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 Links
Weighing The Tax Benefits Of Municipal Securities
Advanced Bond Concepts
Bond Basics Tutorial
See also: Chicago Board of Trade, Futures Contract, Municipal Bond, Treasury Bond
