First Empire Securities, a 32-year-old national fixed-income shop based in Hauppauge, N.Y., is in the midst of implementing a national growth strategy that includes beefing up its municipal capabilities for institutional clients.
As part of the expansion, First Empire began offering municipal bonds on a new-issue basis to its institutional clients as part of a major underwriting syndicate effective last month, the firm said in a Nov. 12 press release. It also recently opened a Chicago underwriting office headed by a municipal veteran, the firm said. Both of those efforts provide First Empire's institutional clients with more choices for their investment portfolios.
"This move reaffirms our commitment to providing products and services that reflect the growing needs of the institutions we serve," Stephanie Rella, chief operating officer, said in the release.
"In addition to providing valuable products and services to clients, this would enhance our ability to trade municipal bonds on a proprietary basis," managing director Joe Oricoli said in an interview on Nov. 17.
Oricoli said the firm began its expansion to a full-service municipal bond desk earlier this year as it saw opportunity to attract senior talent due to industry consolidation.
For instance, the firm hired Guy Spieler, a veteran municipal bond trader and underwriter, in conjunction with the Oct. 6 launch of its Chicago office, where he will head its competitive new-issue underwriting as part of its ongoing growth of municipal bond capabilities, Oricoli said.
Spieler was formerly a municipal bond trader at Lehman Brothers and Incapital.
Oricoli said the firm further plans to build out its other recently opened offices – Chatham, N.J., opened in June and San Francisco in August – as part of the ongoing national growth effort and to join its existing branches in Alabama, Arizona, California, Florida, Kentucky, Michigan, Oregon, Tennessee and Virginia.
Meanwhile, the availability of new-issue bonds will enhance the firm's separately-managed products under its affiliate First Empire Asset Management, which currently manages in excess of $3 billion, he added.
Steven McLaughlin, head of proprietary trading, is leading growth within the municipal assets management group, Oricoli said.
Overall, the firm has a total of 14 traders – six of whom are dedicated to the municipal market – as well as 40 institutional sales representatives. George Hribar trades West Coast credits and Chris Maloy manages all taxable and bank-qualified trading.
Oricoli said the ongoing expansion will include further additions to the staff, products, and market visibility. The firm plans to add two 25-year veterans to lead its national trading and institutional sales efforts, he said, though he wasn't able to identify them at presstime.
"We are looking at the current environment as an opportunity to build our presence in the marketplace," Oricoli said. "There is a tremendous amount of talent on the Street due to downsizings and mergers, and we want to tap into that well of experienced professionals to expand our services."
