NEW YORK, June 11, 2013 /CNW/ - RBC Capital Markets' Municipal Markets
group hosted the industry's first-ever municipal conference focused on
SIFMA-Indexed Floating Rate Notes (FRNs) on Friday, June 7, 2013. The
event, held at the Conrad Hotel in New York City, brought together over
180 of the industry's top investors and issuers to discuss the
emergence of FRNs following the recent period of market challenges.
"The financial markets have significantly evolved over past several
years, and the municipal finance industry has responded accordingly,"
said Mark Maroney, Head of U.S. Rates, Municipals and Securitized
Products at RBC Capital Markets. "FRNs have been a common form of
financing in the corporate and asset-backed debt markets to gain access
to variable interest costs of funds without risks to the short-term
bank market, and now the municipal industry is following suit by
adopting the product within our own market."
Chris Hamel, Head of the Municipal Finance group at RBC Capital Markets,
added, "Within our client base, we have seen a significant uptake in
interest in FRNs over the last few years, as evidenced by the 89
industry-wide FRN transactions totaling $16 billion since 2009. Today's
event convenes some of the biggest players in the space to further
examine the opportunities and challenges in our market and we are
thrilled to host this opportunity."
Following a welcome address from Hamel, keynote speaker Mark Muller,
Senior Portfolio Manager at Loews Corporation, discussed the changes in
the municipal market landscape over the last five years and his view
Chris Mauro, RBC's Head of U.S. Municipals Strategy, then discussed the
evolution of the short-term market and Tom Carlson, Director within the
Municipal Capital Markets group, presented an overview of public FRNs.
Two panel discussions on the market followed.
The "Depth and Longevity of the Market" panel put forth top investors in
the market to offer their perspectives on the use of FRNs over the
long-term. Moderated by Jaime Durando, RBC's Managing Director and Head
of Municipal Syndication, panelists included:
Lyle Fitterer, Managing Director, Wells Capital Management
Justin Schwartz, Portfolio Manager, Vanguard
James Pruskowski, Managing Director & Portfolio Manager, Head of
Municipal Institutional & Wealth Management, BlackRock
The investor panelists discussed how FRNs are an attractive asset
because they provide protection against interest rate risk,
particularly in the current environment.
The second panel, titled "The Role of FRNs in Municipal Debt Programs,"
allowed issuers in the market to offer their own perspectives on the
trend. John Puig, RBC Capital Markets' Managing Director, Municipal
Finance, moderated the panel, which included:
Nikolaus Grieshaber, Chief Financial Officer, Pennsylvania Turnpike
Carol Kostik, Deputy Comptroller for Public Finance, Office of the New
York City Comptroller
Katherine McManus, Deputy General Counsel Finance, New York Metropolitan
Donna Manuelli, Chief Financial Officer, New Jersey Turnpike Authority
The issuer panelists discussed how the municipal market has matured to
such a degree that there is now a much larger investor base than there
was previously and, as a result, the pricing in the market has become a
lot more efficient, allowing issuers to gain floating rate exposure at
a cost-effective price.
RBC's Municipal Markets group has underwritten more than $4 billion in
FRNs since 2012 and is ranked as the top issuer of the debt for both
2012 and 2013.
About RBC Capital Markets' Municipal Markets Group
RBC Capital Markets' municipal markets group employs more than 345
people in 26 cities, and in 2012 ranked fifth for senior managed
negotiated transactions by Thomson Reuters. The group provides products
and services annually to hundreds of municipal issuers across a broad
range of sectors, including: healthcare, higher education, housing,
K-12 education, public power, special districts, student loans and
transportation. The firm is one of the country's most active
underwriters of municipal bonds in terms of total number of senior
managed issues, underwriting hundreds of issues annually. For more
information, please visit www.rbccm.com/municipalfinance.
About RBC Capital Markets
RBC Capital Markets is the corporate and investment banking arm of the
Royal Bank of Canada, the 4th largest bank in North America by market
capitalization. RBC Capital Markets is a premier investment bank that
provides a focused set of products, services and expertise to
corporations, institutional investors and governments around the world.
With over 6,500 professionals in 15 countries, we deliver our products
and services to clients in over 100 countries through operations across
North America, Europe and the Asia-Pacific region. For more
information, please visit www.rbccm.com.
For further information:
Elisa Barsotti, 212 618-2057, firstname.lastname@example.org