Hilliard Lyons Public Finance

Hilliard Lyons Public Finance: A Legacy in Municipal Bonds

Hilliard Lyons, a name once synonymous with financial expertise in the Southeast, boasted a robust Public Finance division that played a significant role in underwriting and advising on municipal bonds. Before its acquisition by Baird in 2019, Hilliard Lyons Public Finance provided a wide range of services to state and local governments, school districts, healthcare systems, and other non-profit organizations.

The core function of Hilliard Lyons Public Finance revolved around assisting these entities in accessing the capital markets to fund essential infrastructure projects, educational initiatives, and community development programs. This involved a comprehensive suite of services, including:

• Underwriting: Acting as an underwriter, Hilliard Lyons Public Finance would purchase newly issued municipal bonds from the issuer and then resell them to investors. This process required thorough due diligence, pricing expertise, and a strong distribution network to ensure the successful placement of the bonds.
• Financial Advisory: The division also served as a financial advisor, providing objective and independent advice to issuers on various aspects of debt issuance, including structuring the bonds, navigating market conditions, and complying with regulatory requirements. They helped clients evaluate different financing options, assess their debt capacity, and develop long-term financial plans.
• Bond Structuring: Hilliard Lyons Public Finance professionals possessed the technical expertise to structure bond offerings in a way that met the specific needs and constraints of the issuer. This involved determining the appropriate maturity schedule, interest rate structure (fixed or variable), and other features to optimize the cost of borrowing and manage risk.
• Credit Analysis: Understanding the creditworthiness of the issuer was paramount. Hilliard Lyons Public Finance conducted thorough credit analysis, evaluating financial performance, economic conditions, and other factors that could impact the issuer’s ability to repay its debt obligations.
• Marketing and Distribution: A critical element of the underwriting process was effectively marketing the bonds to potential investors. Hilliard Lyons Public Finance leveraged its established relationships with institutional investors, retail brokers, and other market participants to generate demand for the bonds.

The Public Finance team at Hilliard Lyons typically consisted of experienced professionals with backgrounds in municipal finance, investment banking, law, and economics. They possessed a deep understanding of the unique challenges and opportunities facing state and local governments. The firm prided itself on its commitment to building long-term relationships with its clients, providing personalized service, and delivering innovative solutions.

While Hilliard Lyons no longer exists as an independent entity, its legacy in public finance continues through Baird, which integrated Hilliard Lyons’ resources and expertise into its existing public finance operations. The impact of Hilliard Lyons Public Finance can be seen in the countless projects that were funded through the issuance of municipal bonds it helped facilitate, benefiting communities across the region.