Bill Hansen — a municipal market pioneer who was a long-time credit provider arranging loans, letters of credit, and other liquidity facilities predominantly for tax-exempt issuers in California — officially retired as executive director of credit origination in the tax-exempt capital markets group at JPMorgan last Friday after serving the firm for 44 years. “His relationships with municipal and not-for-profit clients throughout California and the West have been a driving force in JPMorgan’s success in those regions,” James Saakvitne, managing director of the tax-exempt capital markets credit origination group, said in a written announcement. “His business savvy, mentoring, and extraordinary relationships will be certainly missed.”Hansen, 68, began his career at what was the former Morgan Guaranty Trust Co. in New York City on the corporate side of the business in February, 1963 — a year after graduating from Dartmouth College and spending six months at Fort Dix as a member of the U.S. Army National Guard during the Cuban Missile crisis.“Like many people that don’t know exactly what they want to do, I chose to interview with banks because I had an uncle that was a successful banker and I admired him and I steered toward that direction,” he said in a telephone interview last week.Of the four popular banks on Wall Street at the time — Morgan, Chase Manhattan, Chemical Bank, and Manufacturer’s Hanover Trust – Morgan “jumped out” at him.“It was the prestigious name on the Street,” he said of the firm where he would later spend more than four decades.After moving up the ranks in the bank’s corporate side of the business and ultimately being promoted to a vice president in 1974, he joined what was then the firm’s fledgling municipal credit group in 1977 as half of a two-man team that provided a variety of loans and liquidity products for tax-exempt issuers.It was at this time that he was instrumental in establishing the first variable-rate demand bonds via a put agreement with the Federated Investors family of funds.Among his biggest achievements, Hansen helped the bank transform from just purchasing bonds for its own accounts to it being a credit enhancer, according to Saakvitne.For instance, besides originating numerous credit, bond, and derivative transactions for the firm, Hansen was also instrumental in Morgan Guaranty providing the first conditional liquidity facility for a tax-exempt bond that was not an irrevocable letter of credit, Saakvitne said. This product later became known as the standby bond purchase agreement, an important product in the current market, he noted.In 1984, Hansen was asked to move to Los Angeles to open JPMorgan’s first-ever public finance office outside of New York, and as the bank branched out, moved to its San Francisco office.Several years later, he moved back to New York City where he continued to cover municipal issuers in the Western region. He was named executive director earlier this year.One of the most notable single transactions Hansen worked on was in 2001 when he helped arrange a $4.3 billion bridge loan to the California Department of Water Resources when the state had to purchase electricity for its citizens after the bankruptcy of Pacific Gas & Electric and Southern California Edison.The deal was one of the largest municipal syndicated bank transactions ever and resulted in JPMorgan being named underwriter for a subsequent $11 billion tax-exempt bond issue.All together, Hansen had arranged $6.4 billion of liquidity and LOCs for the DWR, he said. In addition, he also arranged $1.7 billion in liquidity facilities for California’s Bay Area Toll Authority.“I take a lot of pride in having my fingerprints on some pretty important and interesting deals in the past,” he said. “It was an opportunity to feel like you were doing something for the public sector.” As he steps down from his post, leaving 10 co-workers in the credit department at JPMorgan, he says colleagues and competitors who want to be successful in public finance should be mindful of changes in the industry.“Pay attention to the constant innovation taking place in the business with structured products, derivatives, and the cutting-edge products,” Hansen said. “I would tell them to stay on top of developments and think of their own so they can be on the cutting edge.”His colleagues in the industry praised his wealth of knowledge.Jim Olson, chief of financial operations for the DWR’s power supply program, said he met Hansen in 2001 during California’s energy crisis.“He brings common sense to the negotiations and that came from years of experience,” Olson said. “I will miss working with Bill. He was a very calming influence in a very difficult environment.”“Bill was a strong advocate for our program and was able to garner the resources to support us,” he added.Hansen himself said his lengthy career has been rewarding, and his retirement bittersweet.“When you do the math and realize that 44 years at one place is two thirds of your life, you certainly feel sadness but also excitement about finally moving into a new phase,” Hansen said.He will spend his retirement living in an 1841 farmhouse in Chester, Conn., that he purchased and aptly named Six Brothers Farmas a tribute to his six sons. In between restoring the house, spending time with his sons and four grandchildren, trout fishing, and brushing up on his tennis game, Hansen hopes to eventually travel to long-awaited destinations, such as Hong Kong and Australia.When asked his thoughts about doing some consulting work in his retirement or possibly returning to the market someday down the road, he replied,:“The ink is still wet on my retirement papers.” But he added that if and when he received a call from a colleague or prospective employer, he would consider his options.JPMorgan said it will announce a replacement for Hansen later this summer, according to spokesman Brian Marchiony. In the meantime, West Coast clients will be covered by Justin Wahn and members of the tax-exempt capital markets credit team, he said.
