As Fortune CEOs Take Unequivocable Stand -This BD Bids On

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August 15 2017-A Special Editorial from BrokerDealer.com: Most Fortune CEOs, as well as leaders of Investment Banks and Broker-Dealers (aka BD) are typically loathe to take a political stand. For the former, making pronouncements that will raise the ire of the current president are likely to be met by “injury by twitter,” or worse still, federal agency scrutiny of the company, which could prove devastating for public company shareholders. For the universe of corporate leaders with a conscience and also recognized thought-leaders, only a few have yet to prove unequivocal when reacting to the equivocal comment made by President Trump when framing his first view of what US Attorney General Sessions labeled as a”domestic terror event.” We’re referring to the white supremacist rally that led to 3 deaths and multiple injuries in Charlottesville, VA this past weekend.

For investment banks and broker-dealers, let’s face it-politics and business mix best with each other when done over cocktails or discrete ‘off-site’ meetings to discuss new capital market initiatives, deal issuance and/or asset management mandates. After all, most traditional broker-dealers eschew taking a political stand that opposes the federal government administration, simply out of fear that the long lips of the current WH CEO will whisper to administration-appointed SEC bureaucrats with a message akin to ‘the right industry regulator might want to make this [firm] go away..” Most, but not all is the catchphrase that compels a re-distribution of a capital markets desk commentary that focuses on fixed income markets and along with a smidgen of geopolitical observations and delivered to a captive group of leading Fortune 500 corporate treasurers, as well as a select group of sell-side syndicate desk ‘book-runners’.  Here’s the extract of the day’s piece, titled Risk On, Risk Off, US-NOKO Tensions Subside; Ugly Heads of Racism Take Top Headline

Investment Grade Corporate Debt New Issue Re-Cap – A View About Charlottesville and the Aftermath

Risk was clearly back on in the financial markets today, as U.S./NOKO tensions fell to the wayside.  Unfortunately prejudice and racism reared their ugly heads in the Charlottesville, Virginia riot over the weekend.  On Monday, Fortune 500 thought leaders Ken Frazier, CEO of Merck & C0., Brian Krzanich, CEO of Intel, and Kevin Plank, CEO of Under Armour each took a stand by protesting the ‘equivocal’ comments made by President Trump in his first response to the domestic terrorism acts in Charlottesvile, which were advanced by self-proclaimed alt-right and white supremacist neo-Nazis.  Our firm  stands with every corporate executive who stays true to their own right-minded beliefs and their company’s dedication to doing right and doing good, many of whom also maintain proactive Diversity & Inclusion initiatives. For those corporate executives who spent all of their undergrad time in finance and accounting classes, and perhaps not as familiar with the history of the United States as they could be, racism and bigotry are diseases, and cancers that every generation of this country has been working to eradicate.

To the above point, one only need to re-read the Constitution and the Bill of Rights to appreciate that D&I is actually part of our country’s DNA. It is also part of the cultural foundation of many Fortune 500 corporations, including Intel, including Merck, including Under Armour and including many others! D&I means respect for and appreciation of differences in ethnicity, gender, age, national origin, disability, sexual orientation, education, and religion. But it’s more than this. We all bring with us diverse perspectives, work experiences, life styles and cultures and we presumably all share a disdain for anyone and any group that attempts to dismantle, disrupt and or destroy. Kudos to Mssrs. Frazier, Krzanich and Plank for putting themselves in harm’s way and risk of “injury by Twitter” for being true leaders and staying true to their convictions and their constituents. Kudos also to the many Fortune executives who have raised their own voices and to those who, like Jamie Dimon, have opted to protest by remaining that much more proactive in the WH-appointed roles in which they serve as volunteers.

Today’s VIX closed 3 bps tighter versus Friday’s close. Also a reminder that tomorrow is August 15th – “mid-August” – that’s when North Korea’s illustrious “bad boy” proclaimed that he’d have his master plan ready to bomb Guam developed by.  One week from today on Monday, August 21st begin joint U.S-South Korean military exercises referred to as Ulchi-Freedom Guardian. The exercise began in our Bicentennial year of 1976. North Korea has annually perceived the joint exercise as “preparation for war.” It is the world’s largest computerized command control implementation. Up to 80,000 American and South Korean troops have participated in this exercise in the recent past.  The game will go on for two weeks before concluding on Thursday August 31st.  Enjoy the show Mr. Jong-Un. You’ll have front row seats though I recommend binoculars. Here’s lookin’ at you kid!

If you ask me this is the perfect time for corporations to issue bonds. Not a bad thing will really happen, risk is back on and summer vacations are quickly approaching. My prediction – expect Amazon to the hit the tapes first thing tomorrow morning.  Free market enterprise at work. Ya gotta love it!

Today’s IG Corporate dollar DCM finished with 5 issuers that priced 7 tranches between them totaling $4.10b

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Boutique Broker-Dealer Makes Veterans Day Month Pledge

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Mischler Financial Group Annual Veterans Day Month Pledge: Three Philanthropic Missions;

Securities Industry’s Oldest SDV-Owned Firm Gives Back and Pays Forward

(AP Newswire) Stamford, CT & Newport Beach, CA –November 1, 2016 —Veterans Day is observed by Americans each year on November 11; the day that is dedicated to honoring and extending our gratitude to the millions of men and women who have served within the US military. At Mischler Financial Group (“Mischler”), the financial industry’s oldest institutional brokerage and investment bank owned and operated by service-disabled veterans, Veterans Day is observed every day, and each November Mischler pledges a percentage of the entire month’s profits to carefully-vetted charitable organizations that support veterans and their families in recognition of this national holiday.

To honor Veterans Day Month 2016, Mischler Financial Group has made a financial pledge to three separate organizations that go above and beyond the call of duty to support military veteran families and local communities. Those 501c3 organizations are Bob Woodruff Foundation, The Johnny Mac Soldiers Fund and Buildon.org.

Stated Dean Chamberlain, Chief Executive of Mischler Financial, a 20-year veteran of the securities industry and a U.S. Military Academy at West Point alumni, “There are now more than 20 million Americans who have served with integrity and honor in the US Armed Forces, yet when transitioning back to civilian roles, too many are encountering challenges as they seek higher ground. The Mischler Financial year-round philanthropic mission is dedicated to the military veteran community at large, and Veterans Day Month provides a special opportunity for our trading desk and our clients to work together to give back and pay forward to the veteran community in ways that can truly help change lives for the better.”

Added Chamberlain, “This past May, we made our Memorial Day Month pledge to crowdfund campaign Veterans Education Challenge,  as we believe that advanced education is a core component to both personal and professional success. The organizations that we have pledged our Veterans Day Month support to provide equally unique runways by which veterans can further bolster their knowledge base and self-confidence, and in turn, help them to more easily target and capture opportunities as they advance forward.”

 

bob-woodruff-foundation-veterans-day-mischlerAbout The Bob Woodruff Foundation (501c3)

Mission Statement: Founded in 2006 by ABC News reporter Bob Woodruff and his wife Lee after Bob was hit by a roadside bomb while covering the war in Iraq. The Bob Woodruff Foundation has led an enduring call to action for people to stand up for heroes and meet the merging and long-term needs of today’s veterans. To date, BWF has invested more than $33 million to find, fund and shape programs that have empowered more than 2.5 million impacted veterans, service members and their families. To learn more, visit their website

johnny-mac-soldiers-fund-mischler-brokerdealerAbout The Johnny Mac Soldiers Fund (501c3)

Mission Statement: Committed to providing support to those most affected by the Global War on Terror. Assistance includes: College scholarships and grants; Financial aid for professional certification programs and non-degree programs; Educational career counseling and mentorship. To learn more, visit their website.

                          

 

buildon org veterans day pledge mischler broker-dealerAbout Buildon.org (501c3)

Mission Statement: To break the cycle of poverty, illiteracy and low expectations through service learning programs in many of America’s most under-resourced high schools. Buildon.org is dedicated to engaging and training high school students in the country’s most challenging urban areas by providing those students with the tools to proactively advance programs that can better the quality of life for members of their communities who are in need. To learn more, visit their website.

                        

mischler-veterans-day-pledge-brokerdealerAbout Mischler Financial Group Inc.

Established in 1994, Mischler Financial Group, Inc. (“Mischler”) was the first broker-dealer certified as a Service-Disabled Veteran owned Business Enterprise (SDVOBE).Since that time, Mischler has become widely-recognized by Fortune corporate treasurers, public pension sponsors and the industry’s leading institutional investment managers for “punching above its weight class” while serving as a boutique investment bank and conflict-free institutional brokerage. Mischler is unique among its peers for its capital markets capabilities, as well as the firm’s year-round advocacy and support of veteran-centric causes. Mischler maintains offices in 8 major cities and is staffed by more than 55 securities industry veterans whose expertise extends across virtually all primary and secondary debt and equity capital market silos. In addition to traditional DCM and ECM services and secondary market best execution, Mischler administers corporate share repurchase programs for leading Fortune companies, cash management for government entities and corporations, and asset management programs for liquid and alternative investment strategies. The firm’s website is www.mischlerfinancial.com

For Additional Information:

Attn: Office of the Chief Executive

Email: info@mischlerfinancial.com

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Chicago Politico & Owner of Cabrera Capital Mrkts in 4mil Loan Default

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(Crains Chicago Business)-Martin Cabrera, Jr, the chairman of the Chicago Plan Commission, who’s also on the city’s Public Building Commission and who’s also owner/founder of minority broker-dealer Cabrera Capital Markets, has been hit with a lawsuit alleging he has defaulted on a $3.3 million loan.

Martin Cabrera Jr., founder and CEO of Cabrera Capital Markets, positioned as a minority-owned broker-dealer, hasn’t paid anything on the loan since March 2015 and now owes a total of $4.1 million, including accrued interest and attorney fees, according to the complaint, filed last month in Cook County Circuit Court. Cabrera, a broker-dealer that seeks to leverage their diversity profile to win contracts from cities and states that have diversity and inclusion mandates has also been subject to Finra disciplinary actions.

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Martin Cabrera, Jr.

Cabrera, a leader in Chicago’s Hispanic business community, borrowed the money from a venture led by a man named Ventura Carlos Rojas Cardona. Court documents did not state the purpose of the loan, which Cabrera took out in April 2014.

“It’s unfortunate that it got this far, but it’s a complicated matter, and we hope to resolve it soon,” Cabrera said. He declined to comment further, saying he shouldn’t discuss pending litigation.

Cabrera Capital is a financial services firm that offers investment banking and sales and trading and is often involved in underwriting government bond offerings. Martin Cabrera also is part of the well-connected group in line to manage a $248 million redevelopment of Midway International Airport.

Ventura Carlos Rojas Cardona wound up in the national news about four years ago, when it came out that he and his brother, Alberto Rojas Cardona, were major fundraisers and donors for President Barack Obama’s re-election campaign. The Obama campaign returned more than $200,000 in donations from them after the New York Times reported that their brother was Juan Jose Rojas Cardona, also known as Pepe, a Mexican casino owner who had fled drug and fraud charges in the United States.

Efforts to reach Ventura Carlos Rojas Cardona directly were not successful. An attorney representing him did not return calls. Alberto Rojas Cardona, who signed the loan to Cabrera in April 2014, said he was no longer involved in that investment.

Cook County property records show that Cabrera provided the Cardona venture a $3.3 million mortgage in May on a Pilsen apartment building he owns, a sign that he may have offered the property to secure the defaulted loan.

In 2012 Mayor Rahm Emanuel appointed Cabrera chairman of the Plan Commission, a panel that reviews zoning change requests. Cabrera has served since 2011 on the board of the Public Building Commission, a city-county agency that approves public building projects. Cabrera also is past chairman of the board of the City Colleges of Chicago and a board member of Museum of Science and Industry.  Full story from Chicago Crains here

Boutique Broker-Dealers Grab Equities Orders Away from Bulge Bracket

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Regional and Boutique Broker-Dealers are in land grab mode for institutional execution business as the ‘six-pack’ aka bulge bracket firms find themselves continuously paring back staff and reducing services due to the costs associated with each part of their business pods. The small and mid-size “agency-only” equities execution firms are increasingly gaining share, yet at the same time, institutional brokerage commission schemes for equities execution remains in a downward spiral. The exception, according to a recent study by Greenwich Associates, is “the boutique firms that provide a combination of high-touch service along with high-tech execution tools will stand out among those vying for business from the investment manager community.”

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Larry Peruzzi, Mischler Financial Group

According to Larry Peruzzi, Managing Director and Head of International Equities for agency-only firm Mischler Financial Group, “The feedback we continue to hear from buy-side traders is consistent with the latest Greenwich Associates survey; investment managers want premium high-touch coverage from boutique BDs that can also provide best-in-class order routing and trade execution technologies.” Added Peruzzi, “Large investment managers are still looking to a broker’s research capabilities in the course of adding to a broker-rotation schedule, but the unbundling movement has made independent equities research, including those that have ‘buy-sell-hold’ recommendations, a commodity item that can be obtained away from those captive investment manager-executing broker relationships.”

(Traders Magazine Aug 2 2016)– As ‘bulge bracket’ brokers are faced with ever tightening budgets and focusing more on their larger institution accounts, the mid- and small-size brokers are poised to snatch up those clients left without an executing broker.

The bulge firms, after years of shrinking commissions amid a unique confluence decreased trading volumes, increased technology spend and a heavier regulatory compliance burden have shed staff and cut costs to the bare bone. Thus, having to make due with smaller trading desks and providing a modicum of service expected from the top tier banks, other brokers have been able to step in and grab underserved customers. And more importantly, the commissions that come along with providing both execution and research services.

“We’re definitely seeing this trend right before our eyes here,” said Doug Rivelli, co-head of US equity sales and trading at Auerbach Grayson. “As the trend of unbundling commissions has taken hold on a global scale, the traditional trading desk has had to become more focused on execution quality and broker trading services and firms like us have been able to capture market share.”

This phenomenon was reported also by market consultancy Greenwich Associates, who reported this week that mid-sized/regional brokers’ share of commission payments from institutional U.S. equity trades is increasing.

According to Greenwich, a s recently as 2007, the nine leading bulge-bracket brokers captured 78% of commissions paid by institutional investors on trades of U.S. equities. This year, they are claiming only 60%–down a full two percentage points from 2015. Much of the lost share has flowed to mid-sized/regional dealers, which as a group now take home 28% of U.S. equity commissions, up from just 11% in 2007.

To continue reading the coverage from Traders Magazine senior editor John D’Antona, please click here

 

Wall St Firm Backs VetEdChallenge in Memorial Day Push

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Newport Beach, CA & Stamford, CT, May 12, 2016–Mischler Financial Group (“MFG”), the financial industry’s oldest minority broker-dealer owned and operated by Service-Disabled Veterans, announced today that in recognition of the upcoming Memorial Day celebration, the firm has pledged a percentage of its entire May profits to Veterans Education Challenge, “(VetEdChallenge) a donation-based crowdfund campaign. The philanthropic initiative is dedicated to providing need-based college scholarships to ex-military students pursuing higher education so they can get better access to a broad range of career development opportunities.

Veterans Education Challenge was established in November 2015 by investment management industry veteran Bruce Richards and his wife Avis. Mr. Richards is personally matching the first $1million in donations made to the “VetEdChallenge” campaign via crowdfund platform “Crowdrise.” He  is co-founder, CEO and managing partner of Marathon Asset Management, the $12.5 billion investment firm specializing in global credit and fixed income markets.

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Dean Chamberlain, CEO Mischler Financial Group

“This Memorial Day Month we’ve embraced a more contemporary approach to paying it forward via the VetEdChallenge program”, said Mischler Financial Group CEO Dean Chamberlain, a graduate of the U.S. Military Academy at West Point who himself earned his MBA via a work-scholarship program at Northwestern University’s Kellogg School of Management. “Our annual, entire month of May pledge in honor of Memorial Day, as well as our annual Veteran’s Day Month pledge has typically focused on traditional, best-in-class philanthropies and we believe the VetEdCballenge is an ideal vehicle to directly impact the future of returning veterans, as higher education can provide a material lift in the course of pursuing opportunities.”

Added Chamberlain, “Because we are always mentoring returning veterans, we know first-hand about the challenges these men and women face as they assimilate back into the mainstream and find themselves working multiple jobs to put aside funds for educational degrees beyond their pre-military academic background. We’re proud to partner with Bruce Richards and be affiliated with his truly thought-leading program. We encourage our institutional clients to help us support this initiative via our trading desk(s) and/or directly via the Veterans Education Challenge crowdfund program.

Other philanthropic organizations that Mischler Financial Group supports are displayed on the firm’s website via this link.

About Mischler Financial Group

Mischler Financial Group is headquartered in Newport Beach, California with regional offices in major cities throughout the United States. MFG is a federally-certified minority broker-dealer and a Service-Disabled Veterans Business Enterprise (SDVBE). We provide capital markets services across primary debt and equity markets, secondary market agency-only execution within the global equities and fixed income markets and asset management for liquid and alternative investment strategies. Clients of the firm include leading institutional investment managers, Fortune corporate and municipal treasurers, public plan sponsors, endowments, and foundations. The firm’s website is located at http://www.mischlerfinancial.com