Allstate Corp. hired solely banks owned by minorities, women or veterans for its bond sale, in the biggest corporate deal yet managed only by diverse firms.
The insurer enlisted Loop Capital Markets, Academy Securities, Samuel A. Ramirez & Co., Siebert Williams Shank & Co., AmeriVet Securities, Cabrera Capital Markets, C.L. King & Associates, Penserra Securities and R. Seelaus & Co. to underwrite its debt offering, according to a filing. Allstate also said it’s committing to doubling trading volume with diverse firms next year for its $92 billion investment portfolio, according to a statement Thursday.
Companies typically work with large banks like JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc., which lend to corporations for small fees in the hopes of winning more lucrative capital markets business. Diverse firms, which are mostly structured as boutique investment banks, usually have smaller roles on bond deals with less responsibility for