Stephens Public Finance | 2023 Outlook — 2022 Year In… | Stephens

Who We Are

What We Do

We provide investment banking, research, sales and trading, asset and wealth management, public finance, insurance, private capital, and family office services.

About Us

We are a family-owned financial services firm that values client relationships, long-term stability, and supporting the communities where we live and work.

The Stephens Story

The idea of family defines our culture, because each of us knows that our reputation is on the line as if our own name was on the door.

Leadership

Our reputation as a leading independent financial services firm is built on the stability of our longstanding and highly experienced senior executives.

Impact Initiatives

We are committed to corporate philanthropy; economic and financial literacy advocacy; and diversity, equity, and inclusion initiatives.

Our Brand Ambassadors

Stephens is proud to sponsor the PGA TOUR, LPGA Tour, and PGA TOUR Champions careers, as well as applaud the philanthropic endeavors, of our Brand Ambassadors.

Stephens & Williams Racing Partnership

Stephens is the official investment banking partner of Williams Racing, one of the most winning teams in F1 history. We share that tradition of success.

Making Connections

We host many highly informative meetings each year with clients, industry decision makers, and thought leaders across the U.S. and in Europe.

Our Businesses

Capital Management

We provide fiduciary investment strategies to public-and private-sector institutional clients through asset allocation, consulting, and retirement services.

Fixed Income Sales & Trading

Decades of proven performance and experience in providing tailored fixed income trading and underwriting services to major municipal and corporate issuers.

Institutional Equities and Research

Proven industry-leading research, global market insights, and client-focused execution.

Insurance

Customized risk management, property & casualty, executive strategies and employee benefits solutions that protect our clients over the long term.

Investment Banking

We assist companies with accessing capital through innovative advisory and execution services that help firms achieve their strategic goals.

Private Capital

We have been a trusted and reliable source of capital for private companies for over 70 years.

Private Wealth Management

Our experienced Private Client Group professionals develop customized investment strategies to help clients achieve their financial goals.

Public Finance

We are a trusted municipal advisor with proven expertise in public financings. We also work with clients in negotiated and competitive municipal underwritings.

Market Trends

2023 Outlook – 2022 Year In Review | Public Finance

Jan 11, 2023

A Message From Dennis Hunt

Public Finance is unlike any other area of banking and financial services in that the need for clean water, safe schools, and efficient civic infrastructure doesn’t abate when interest rates rise or a recession hits. No matter how challenging the environment, we never take a break from working with our clients to accomplish their goals.

The past year has indeed posed challenges that the industry hasn’t seen in decades. Inflation became a factor early on. And few politicians want to promote new financing during an election year. Add in regional wars and global uncertainty, and the result was a year filled with change. But there were plenty of opportunities nonetheless for our clients. Stephens completed some 100 deals worth a total of more than $3.4 billion across communities throughout America.

Some of the more significant deals included the $500 million issue for state-of-the-art correctional facilities in Alabama, as well as a $74 million issue for various public improvement projects in the city of Fayetteville in Arkansas (see page 18). Stephens also completed three issues totaling some $190 million for projects in Williamson County, Tennessee. We completed a $58 million issue for infrastructure improvement projects in the city of Little Rock as well as many notable projects across major school districts in Texas (see page 5).

The industry as a whole is in general agreement that we can expect to see fairly significant reductions in interest rates during the second half of 2023. The Fed did what it had to do to address inflation this year. But the consensus is that the cost of borrowing will go down in due course.

I invited several colleagues to contribute their perspectives for this publication, our first of 2023. Our municipalities are evolving rapidly after the global pandemic redefined how we go to school, visit hospitals, and access clean water. Although the economy has changed considerably over the last 12 months, what has remained unchanged is Stephens’ steadfast commitment to our clients.

Public Finance is at the very foundation of our firm. We look forward with optimism to 2023 and our continued service to the marketplace.

Dennis Hunt
Executive Vice President
Head of Public Finance

Key Takeaways

A Year Filled with Change, But Also a Lot of Opportunities: Stephens completed some 100 deals worth a total of more than $3.4 billion across communities throughout America.

Interest Rates Won’t Rise Forever: The Fed did what it had to do to address inflation this year. But the consensus is that the cost of borrowing will go down in due course.

Schools in Texas are Expanding: We’re helping school districts across Texas build and renovate facilities to address the influx of new students to the state.

Our Largest Bond Transaction Ever: $500 million for the construction of two state-of-the-art correctional facilities in Alabama.

Mitigating Volatile Markets for Clients: Cinderella bonds are initially issued on a taxable basis that later converts (like Cinderella at midnight) to a tax-exempt structure when the conditions for tax-exempt status are met (i.e., reaching the 90-day window for a tax-exempt current refunding).

For more insights, read the full article: Stephens Public Finance | 2023 Outlook — 2022 Year In Review

About the Experts

Dennis R. Hunt

Senior Advisor, Public Finance

Read full bio

Leigh Ann Biernat, CPA

Executive Vice President, Head of Public Finance, Public Finance

Read full bio

Alfred Ray

Senior Vice President, Public Finance

Read full bio

Lyman Wray

Senior Vice President, Public Finance

Read full bio
  1. This presentation has been prepared by individual personnel of Stephens Inc. (“Stephens”). Such employees are not research analysts and are not subject to SEC or FSA rules designed to promote the independence of research and research analysts and accordingly may receive compensation related to securities or products to which these materials relate. These materials may contain general market commentary and excerpts of research. However, they are not intended to constitute investment research, a research recommendation, research analysis or a research report for purposes of such rules. The information contained herein is solely intended to facilitate discussion of potentially applicable financing applications and is not intended to be a specific buy/sell recommendation, nor is it an official confirmation of terms. Any terms discussed herein are preliminary until confirmed in a definitive written agreement. It is intended for your use only. Stephens has prepared this information for informative purposes only. The statements contained herein, while not guaranteed, are taken from sources we consider to be reliable. Any prices reflected herein are preliminary and subject to change without notice. Prices, yields, and availability will change with market movement. This presentation is not a binding commitment, obligation, or undertaking of Stephens. Stephens shall have no liability, contingent or otherwise, to the recipient hereof or to any third party, or any responsibility for the accuracy, correctness, timeliness, reliability, or completeness of the data or formulae provided herein or for the performance of or any other aspect of the materials, structures, and strategies presented herein. This presentation is not intended to forecast or predict future events. Past performance is not a guarantee or indication of future results. Any estimates and opinions included herein constitute Stephens judgment as of the date hereof and are subject to change without notice. This presentation may include “forward-looking” information. Such information may include, but is not limited to, projections, forecasts or estimates of cash flows, yields, or return, scenario analyses, and proposed investment accounting. Any interest rate information used herein is hypothetical and takes into consideration conditions in today’s market and other factual information such as the issuer’s credit rating, geographic location and market sector. Interest rates applied herein are hypothetical, based on current market facts and should not be viewed as rates that Stephens expects to achieve for you as your underwriter or placement agent. Information about interest rates and terms for SLGs is based on current publically available information and treasury or agency rates for open-market escrows are based on current market interest rates for these types of credits and should not be seen as costs or rates that Stephens expects to achieve for you as your underwriter or placement agent. The Municipal Securities Rulemaking Board’s Rule G-17 requires that we make the following disclosure to you at the earliest stages of our relationship, as underwriter. Stephens is not acting as an advisor to the municipal entity and does not owe a fiduciary duty pursuant to Section 15b of the Exchange Act of 1934, as amended. The primary role of an underwriter, as distinguished from a financial advisor, is to purchase, or arrange for the placement of securities in an arm’s-length commercial transaction between the issuer and the underwriter. The underwriter has financial and other interests that differ from those of the issuer. Stephens and its affiliates engage in a broad range of securities transactions and activities, financial services and other relationships from time to time that involves interests that differ from those of the issuer. In the ordinary course of business, Stephens or its affiliates (i) may at any time hold long or short positions, and, through employees who do not have access to non-public information relating to this issue, may trade or otherwise effect transactions, for its own account or the accounts of customers, in debt or equity securities of the issuer or any other prospective participant in the issuer’s project and (ii) may at any time be pursuing, providing or arranging financing or other financial or transactional services to such prospective participants or to other issuers or market participants. Stephens does not provide accounting, tax, or legal advice