New Faces in Texas Public Finance
Published February 17, 2015 2:03 PM
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Updated March 31, 2017 2:22 PM
1 Min Read
New Faces in Texas Public Finance
Texas Comptroller Glenn Hegar was introduced at The Bond Buyer's Texas Public Finance Conference Feb. 10 by Euriah Bennett, right, vice president at Fidelity Capital Markets. Hegar announced that he is considering investing the state's Economic Stabilization Fund, or "rainy day fund," more aggressively by tolerating more risk. Hegar said he would work with the state Legislature on a policy that would allow the $7.5 billion fund to grow, even if oil prices fall. Hegar made his first appearance at the conference since winning election to succeed Susan Combs Nov. 4. The falling price of oil, and the growing need for water and transportation, were major themes at this year's conference held at the Barton Creek Resort.
Cameron County Judge Carlos Cascos, Gov. Greg Abbott's designee as secretary of state, represents the growing influence of the Rio Grande Valley on Texas politics. Cascos, one of the rare Republicans to gain countywide office in the state's southernmost county, declared that the border "is not a war zone," contrary to some depictions in the media. Cascos was born in Matamoros, Mexico, but moved to Brownsville, Texas, on the U.S. side of the Rio Grande as a child.
JPMorgan executive director David Bayer, left, shares a table with Horatio Porter, chief financial officer of the North Texas Tollway Authority at The Bond Buyer's Texas Public Finance Conference luncheon in Austin Feb. 10. Porter led a round of revenue bond refunding for the NTTA in 2014 that produced record savings. Among the bonds refunded were some from the tumultuous year of 2008 when the NTTA was tripling its debt load for a major project.
Morgan Stanley executive director Keith Richard, left, and Harris County Houston Sports Authority chairman J. Kent "Kenny" Friedman appeared at The Bond Buyer's Texas Public Finance Conference after working together on a December deal that restructured the authority's debt and lifted its credit to investment grade. Friedman, who is also a partner and public finance specialist in the Houston law office of Haynes and Boone, is working to prepare for the 2017 Super Bowl in the Bayou City.
Leslie Norwood, right, managing director and associate general counsel for the Securities Industry and Financial Markets Association, provides follow-up after a panel discussion on regulatory changes in the municipal bond industry in 2014. The discussion at The Bond Buyer's Texas Public Finance Conference, led by Bracewell & Giuliani partner Paul Maco, focused on the unprecedented regulatory actions by the Securities and Exchange Commission and the Municipal Securities Rulemaking Board last year.
Mary Francoeur, managing director for Assured Guaranty, exchanges views with George Williford, chair of the Texas Municipal Advisory Council and managing director of First Southwest Co., during a break at The Bond Buyer's Texas Public Finance Conference in Austin. Francoeur took part in a panel discussion on surface transportation in Texas led by Paul Jack, managing director of Estrada Hinojosa & Co.
Houston Controller Ronald Green, center, fields questions after his discussion of pension issues at The Bond Buyer's Texas Public Finance Conference in Austin. The native Houstonian and former city council member noted that 90% of city retirees remain in the Houston area, continuing to contribute to the economy. "These are people who are paying property taxes, and we're going to see a major impact if we gut pension benefits," he said. Green, who is term-limited, was marking his last appearance at the conference as Houston controller. He noted that Houston's leadership posts are all open to new candidates in November as he, Mayor Annise Parker, and others leave office.
Carlos Rubinstein, chairman of the Texas Water Development Board, told The Bond Buyer's Texas Public Finance Conference in Austin on Feb. 11 that the board would issue $800 million of bonds for the state's newly created State Water Implementation Fund for Texas (SWIFT) next fall. Created by the state Legislature in 2013 and approved by the voters, SWIFT transfers $2 billion from the state's "Rainy Day Fund" to fund the loan program. SWIFT is designed to provide nearly $27 billion in water supply projects over the next 50 years. Rubinstein was appointed chairman of the TWDB by Gov. Rick Perry on Sept. 1, 2013. His term ends Feb. 1, 2017.
Mesirow Financial managing director Blake Anderson, left, and Dan Keating, senior managing director for municipal bond markets at Build America Mutual, enjoy a refreshment break at The Bond Buyer's Texas Public Finance Conference Feb. 9 in Austin after Anderson participated in a panel discussion on the state of the market. Anderson noted that the decline of the oil market in the second half of 2014 added momentum to the anti-inflationary environment gripping Europe. "In terror, investors have fled to U.S. debt," he said.
Thomas Doe, founder and chief executive of Municipal Market Analytics, discussed future possibilities for marketing municipal bonds based on trends in other industries that are shaking off regulatory burdens. The tax exemption for muni bonds, designed as an incentive for investors, is in conflict with heavy-handed regulation, Doe said. The exemption, in effect, creates a "long-only" market. "A one-sided market is not a market, unless we are referring a flea market," he said.
Peter Stare, senior vice president at First Southwest Co., left, visits with Dan Black, senior director for Fitch Ratings at The Bond Buyer'sTexas Public Finance Conference in Austin. Fitch released a report in advance of the conference on how water utilities are coping with ongoing drought, including the use of pipelines and desalination projects.
