Heads of Public Finance Roundtable

Recap

On Thursday, October 19th, the third Heads of Public Finance Roundtable took place at BDA's 9th Annual National Fixed Income Conference in Dallas, TX. The roundtable was attended by over 20 representatives of BDA member firms, which provided a venue for information sharing and discussion on the most recent regulatory and market topics.

Discussion at the roundtable focused on the biggest trends facing middle-market dealers and banks in public finance securities, including implementation of issue price regulations, the market impact of dealer & non-dealer MAs, dynamics of the regulatory risk on loans vs. securities, and the prospects for tax reform. You can view the roundtable agenda here and a full recap of the event follows below.

Roundtable Topics Discussed Included:

• Market Segment Overview: This discussion focused on the trends across several sectors in public finance, including public private partnerships (P3s), healthcare, and housing. Leaders discussed the utility challenges of P3s in the U.S. and to BDA members, the significant changes occurring in financing healthcare facilities, and the continued demand for housing infrastructure.

• Supply & Demand Dynamics for Public Finance: Leaders discussed the political and economic drivers that are impacting the capital markets in today's environment. Topics of discussion included rising rates, the challenges and opportunities of refundings, bankloans, and direct placements.

• Washington Update - Tax Reform and Infrastructure Proposals: BDA staff led a discussion on the prospects for tax reform and the political nuances affecting the likelihood of a comprehensive tax reform package passing in later this year or in early 2018. As of now, the tax-exempt status of municipal bonds remains out-of-scope in the Trump administration's plans for a tax reform package, although continued vigilance is warranted.

• Market Implications of Federal Regulation: This discussion focused on the concerns and challenges leaders are experiencing in the current regulatory environment. Participants shared the impact that federal regulation has had on their businesses, which revealed several trends that businesses of all sizes have in common. Discussion items included:
  • Continuing Disclosure
  • Amendments to 15c2-12
  • Small Investor Impact
  • Time of Trade Disclosure
  • Anti-Money Laundering (AML) Compliance
  • Rate Volatility
  • Issue Price Implementation

Additional Information:

• The Heads of Public Finance Roundtable is part of a series of BDA events specifically tailored to the unique interests of middle-market and regional fixed-income dealers. If there is anything in the above overview for which you would like more in-depth information, please feel free to reach out to BDA staff.