California Municipal Bond House Breaks Tradition; Moves Into the Taxable Arena.SAN FRANCISCO--(BUSINESS WIRE)--Jan. 15, 1997--Stone & Youngberg LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , one of California's oldest and largest municipal banks, is expanding their business into the taxable fixed income arena. By concentrating on a "middle market" often neglected by the large New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of investment firms, Stone & Youngberg has carved out a profitable institutional client base, creating a new revenue source for the 65-year-old firm. "The large Wall Street banks focus on the top 200 firms nationwide. We want to concentrate on the smaller Tier 2 or even Tier 3 client," said Tad (Telephone Answering Device) An answering machine. Henderson, head of Stone & Youngberg's new taxable fixed-income trading desk Trading Desk A desk where transactions for buying and selling securities occur. Trading desks can be found in most organizations (banks, finance companies, etc.) involved in trading investment instruments such as equities, fixed-income securities, futures, commodities and foreign . Henderson's customer base includes regional banks and insurance firms, counties and municipalities and the middle market investment manager. While other regional firms may provide similar services, Stone & Youngberg is relishing the opportunity to focus its attention on these middle market participants. "We want this to be the home of Tier 2 and Tier 3 customers," said Henderson. "Here, they can get the same institutional coverage and services that the larger players get from the larger firms -- and get a much more competitive offering." Unlike the "bulge bracket Bulge Bracket The group of firms in an underwriting syndicate who sold the largest amount of the issue. Notes: The bulge bracket is usually the first group listed on the tombstone. " made up of the dominant New York investment banks The following is a list of investment banks Financial conglomerates Large financial-services conglomerates combine commercial banking and investment banking, and sometimes insurance. , Stone & Youngberg's Henderson is geared to making the $3-million-dollar rather than $10-million trade. "While some large firms have created a sales force to deal with this middle market, their trading desks are really built to handle much larger blocks of bonds," he said. "Smaller orders really aren't worth it for them." Thus a customer looking to buy just $1 million worth of bonds from any of the big firms would find themselves having to pay a premium. Though Henderson cannot quantify how large this middle market might be, ultimately he sees his nine-month-old department becoming a larger part of Stone & Youngberg's overall business. Currently heading up a five-person trading desk, Henderson expects to see his staff double by 1998. "A year from now, I see a full service desk covering all products -- corporate bonds, U.S. Treasuries U.S. Treasury Created in 1798, the United States Department of the Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Some of the government branches operating under the U.S. Treasury umbrella include the IRS, U.S. , agency bonds, preferred stocks Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , asset-backed and mortgage-backed bonds," he said. "We'll be able to provide any investor a competitive, efficient place to do all their fixed-income business." Founded in 1931, Stone & Youngberg LLC has become California's leading underwriter of local government bonds. Their taxable fixed-income department is a full-service trading desk concentrating on the distribution of corporate, agency, government and asset-backed debt. Clients include corporations, insurance companies, regional banks, municipalities and high net-worth individuals. CONTACT: Ulicny Consulting Jeanie Ulicny, 415/921-2598 |
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