Several Muni Underwriters Are Hiring

The Bond Buyer contacted the top 30 senior managers in the first half of 2012 by par value and asked if they had hired or laid off people in their public finance sections in the last few months or were planning to hire or lay off people in the next few months. Several municipal underwriters said they are adding to their staff. Others said they had no comment. None acknowledged they had any plans to let people go.

“Raymond James | Morgan Keegan Public Finance is in hiring mode and is planning to bring on senior bankers in certain industry groups and in certain geographic markets,” wrote senior manager of public communications Steve Hollister.

Piper Jaffray & Co. is continuing to hire municipal bond sales for middle market distribution, said head of fixed income sales, trading and underwriting Brad Winges. Piper is also hiring in public finance across the country. It continues to believe that Piper has room for growth, Winges said.

Robert W. Baird & Co. Inc. recently hired a public finance professional in Philadelphia and opened offices in Dallas, San Antonio and Austin with additional professionals. Baird also has recently offered a position to someone for their healthcare team, said managing director of public finance Keith Kolb. This person is expected to start on October 1.

Looking forward, Baird is considering hiring in California, Florida and the Northeast. It will also increase its competitive underwriting desk, Kolb said.

Roosevelt & Cross Inc. is adding to its muni sales and distribution staff and to its public finance staff, said senior vice president Herman Charbonneau. While the firm specializes in the Northeast, “We continue to expand our geographic footprint a little bit.”

In the near future De La Rosa & Co. expects to hire taxable trading professionals and one or two sales professionals, said president Ed De La Rosa. In about six months the firm expects to expand generally in public finance. While the firm specializes in California, expansions at that point may take place in neighboring states as well as within the state.

Six months ago George K. Baum & Co. decided to expand its public finance franchise, wrote vice chairman Robert Dalton in an e-mail. Starting in June it hired Gary Machak to head a new Dallas office and Barton Withrow and Jeanie Yarbrough as senior professionals for the office.

“We hope in the next few months to announce additional new hires in our public finance practice,” Dalton wrote. Baum has hired DHR International as its search firm.

Janney Montgomery Scott LLC’s public finance section has hired six professionals in all of 2012 but only one in the last two or three months, said head of public finance Tom Henson. Janney does not expect to hire any more in the remainder of the year.

However, next year Janney anticipates hiring five to eight additional people, Henson said. It anticipates hiring in Ohio and Pennsylvania. It hopes to add on specialists in middle market government and school districts, Henson explained.

Fifth Third Securities Inc. increased the par value it senior managed by 158% from the first half of 2011 to the first half of 2012. From the period July 1-September 13, 2011 to the period July 1-September 13, 2012 it tripled the par value it senior managed, according to Thomson Reuters.

Fifth Third Securities jumped to be the 23rd largest senior manager in the latter period from being the 39th largest senior manager in the former period.

“We’ve experienced a very strong three quarters,” said vice president John Rolander. Rolander said he could not comment on Fifth Third’s hiring plans.

A Goldman Sachs & Co. spokeswoman said its public finance section has had a steady number of employees in the last few months. Indeed, the number in the section has been steady for several years, she said.

Goldman Sachs’ public finance covers the entire United States, she said. Along with state and local governments, it supports nonprofit health care, higher education, energy and other sectors. It ranked as the number five underwriter.

On the West Coast, the last four or five months have been fairly quiet for muni hiring, said Carl Miller, chief executive officer of executive search firm Russell Stevens LLC, based in Los Angeles. The fact that six or seven of the 30 largest firms are hiring in the next few months probably reflects normal hiring levels, Miller said.

On a more positive note, he said the muni industry’s salaries are going up.

The top two underwriters — Bank of America Merrill Lynch and Citi — declined to comment. Number three JP Morgan would only say that its month-to-month head count has been consistent in its public finance division.

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