Dictionary of Finance and Investment Terms: mob spread
mob spread
difference in yield between a tax-free municipal bond and a Treasury bond with the same maturity. Term is an acronym for municipals-over-bonds spread, which will always exist because municipals involve different degrees of risk while Treasuries are riskfree as to principal. The spread between a "muni" of a given rating and a Treasury with the same maturity has significance in tax decisions and in transactions involving financial futures contracts.
