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Municipal Sales & Trading

Cabrera Capital’s municipal sales & trading desk is staffed with experienced professionals with an average of 25 years of experience. This depth of knowledge is spread across many sectors including all areas of the tax-free market as well as taxable municipals. The muni desk is capitalized to provide liquidity and bid/ask markets on a daily basis and uses the depth of experience on the desk to generate timely ideas incorporating current market conditions and technical variances in play.

Our secondary effort is predicated on customer service. Unlike major Wall Street firms who put a lot of capital in proprietary trading efforts, Cabrera’s secondary position is dictated by our customers. Every position begins with two fundamental questions in mind. Are we providing liquidity to a customer and/or are we positioning a security that fits our customer’s needs? In addition to a robust secondary position, the municipal bond team works closely with public finance to support their primary market efforts. Public Finance has successfully underwritten tax free as well as notable taxable municipal bond issues and the sales and trading department has supported those deals in follow up market activity.

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Dedicated municipal bond sales people with over 185 years of experience.
Strong relationships with hundreds of accounts including SMAs, mutual funds, insurance companies, hedge funds, banks as well as the dealer community.
Commitment by management to provide capital to support customer’s liquidity needs and to commit to an inventory of bonds.

Underwriting

Sales and Trading works closely with Public Finance providing market knowledge and skill to the transaction.  Customer relationships, market knowledge and timing all come into play and ensures a successful underwriting.  Our senior underwriter has been at Cabrera since 2008 and has more than 2 decades underwriting both competitive and negotiated issues.  The secondary trading/underwriting team has nearly 50 years of combined experience at Cabrera and can fall back on that depth of knowledge to provide structure ideas and a high level of execution to a wide variety of issuers.

Cabrera’s underwriting efforts extend into both the negotiated and competitive markets.  In addition to Senior/Sole led issues, Cabrera can rely on its extensive network of partnerships to access a variety of underwritings taking place daily.

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Taxable Municipals

Taxable municipals are a rapidly growing segment of the municipal bond market.  The first taxable were issues in the mid 1980’s when the Tax Reform Act disallowed certain types of municipals to be issued with tax exempt status.  At the time, issuance was miniscule.  In 2009 the American Recovery and Reinvestment Act created the Build America Bond program which added much supply (and interest) into taxable municipal securities.   The program expired In 2010 and no BAB’s have been issued since.  The taxable bond market received its latest supply boost with the elimination of tax free advance refundings in the 2017 tax cuts.  This feature of the tax act combined with historically low interest rates has led issuer to flock to the taxable marketplace.  It is projected that as much as $90 billion taxable municipals will be brought to market in 2020.  This would represent approximately 23% of total municipal bond issuance.

All of Cabrera’s institutional sales team cover accounts that work in the taxable muni space which provides significant trading opportunities between customers.

Cabrera has successfully underwritten multiple taxable muni bond issues across several sectors including Pension Obligations, School District General Obligations and Housing bonds.

Cabrera has
served as a Senior or
Co-Manager on

56

taxable municipals
issues totaling

$28.2 billion

since 2019.

See Municipal Transactions
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