Macro

Texas Capital Hires Ex-UBS Exec for Muni Bond Expansion

Texas Capital hires ex-UBS executive to lead new muni bond practice, capitalizing on Texas's booming infrastructure demand.

By Max Weldon

5/15, 10:18 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
UBS Group AG Registered
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Key Takeaway

  • Texas Capital Bancshares hires ex-UBS executive Steve Genyk to lead new municipal bond practice, signaling expansion into muni underwriting.
  • Move comes amid Texas' rapid growth and infrastructure needs, positioning the bank in a lucrative market despite political challenges for some firms.
  • State legislation targeting banks' ESG policies creates opportunities for smaller firms like Texas Capital to gain market share in munis.

Texas Capital Targets Muni Market

Texas Capital Bancshares Inc. has taken a significant step towards expanding its financial services by hiring Steve Genyk, a former UBS Group AG executive, to lead its new municipal bond desk. This move marks the bank's initial foray into the underwriting of municipal bonds, focusing on state and local government debt. Genyk, who previously headed public finance at UBS, brings extensive experience to Texas Capital, positioning the bank to become a key player in the municipal market.

Legislative Changes Shake Up Texas Munis

The landscape of municipal bond underwriting in Texas has been dramatically altered by recent legislation. Laws targeting Wall Street banks over their environmental, social, and governance (ESG) stances have led to a reshuffling of the market. Texas Capital's decision to enter the muni market comes at a time when some banks are facing restrictions on their ability to operate in the state due to their policies on energy and firearms. This backdrop provides a unique opportunity for Texas Capital to establish itself amidst the changing dynamics of the Texas municipal bond market.

Growth and Opportunity in Texas

Texas has experienced rapid population growth, driving an increased demand for infrastructure projects such as schools and airports. This growth has made Texas the largest market for municipal bond sales, according to Bloomberg data. Texas Capital's expansion into municipal bonds is strategically timed to capitalize on this burgeoning demand. The bank's CEO, Rob Holmes, emphasized the move as a logical step in ensuring Texas Capital remains a primary resource for companies and institutions across the state, further solidifying its position in the financial sector.

Management Quotes

  • Rob Holmes, CEO of Texas Capital:

    "The expansion of our broker dealer to serve municipal and public finance clients was the next logical step to ensure Texas Capital remains the first call for companies and institutions across our state."