Big banks emphasize diversity in capital markets deals

As a minority- and woman-owned firm, SWS was honored to serve as a co-manager for the recent Capital One capital markets deal. Read more about our role below, featuring our Corporate Finance Senior Vice President, Arion Williams!



Small broker-dealer firms, especially those owned by minorities and women, haven’t always gotten a chance to play active roles in securitization deals.


But that’s beginning to change as more issuers, including large banks, seek to work with smaller, more diverse investment firms on big capital markets offerings. For a women- and minority-owned firm like Siebert Williams Shank, the chance to market these transactions is an opportunity to demonstrate its placement capabilities to large institutional investors.


“With every transaction, you’re strengthening your capability to place this type of product,” said Arion Williams, senior vice president at Siebert Williams Shank, which has dual headquarters in New York and Oakland, California.


There are also benefits for the issuers, which get access to a broader array of investors than they might otherwise, according to Williams.


Siebert Williams Shank is one of three investment firms owned by women, minorities or disabled veterans that were hired as active co-managers on Capital One’s July issuance of $3 billion in credit card asset-backed securities. The McLean, Virginia-based card company hired RBC Capital Markets to act as joint bookrunner and in a new role as diversity and inclusion coordinator.


For small investment firms, every deal counts. Even if they don’t place securities with a large number of institutional investors, they build a track record. Additionally, smaller investors might be more inclined to seek out diverse firms for placements if they know that those firms have a set amount of securities they can market in a given transaction.


“Every opportunity presents the opportunity to go out and win more business,” Williams said.


Full Article

Laura Alix

American Banker

September 13, 2021