Frank Hoadley's influential legacy on municipal market remembered

Frank Hoadley — a onetime police detective and self-proclaimed "dirt bond" banker — took up the mantle of Wisconsin capital finance officer in 1988 and over the next 25 years set the mold for state debt management and market advocacy, market professionals said. 

Hoadley died August 4 while on vacation in Scotland with his wife Elizabeth, a week after a family reunion in the Victoria Hall of Dunblane, Scotland. He was 77.

A memorial is planned Saturday at 2:30 p.m. at the First Unitarian Society of Madison, 900 University Bay Drive. Masks are required. A Washington, D.C., event honoring Hoadley is also planned in November.

Hoadley's municipal legacy began at the state capital where foremost on his mind was managing Wisconsin's debt, launching new products and fostering banking relationships in the state's favor, said colleagues. He served under four governors — three Republicans and one Democrat.

His influence extended to the halls of Congress — where his opinions weighed on regulatory and legislative actions — and further across the country through his leadership role at the Government Finance Officers Association and the advice and friendship he offered market professionals once you got past his gruff exterior.

"Frank was always ahead of his time — from creating a state-of-the-art debt management program in Wisconsin to stressing the need to educate smaller local governments to unleashing the power of technology in our market," said Lynette Kelly, whose 12-year tenure as president and chief executive officer of the Municipal Securities Rulemaking Board overlapped with Hoadley's tenure.

"Frank was an essential voice in early MSRB disclosures and trade reporting dissemination efforts and was an integral part of the Muni Council, which envisioned what is now EMMA," Kelly said. "Frank could debate PDF versus HTML for hours and could dig in on his opinions until he wore everyone out.  But he was usually right."

Hoadley built a reputation as a blunt advocate for transparency, the use of plain English in documents, and expanded — but careful — disclosure, best market practices, and he acted as a mentor to both issuers and banking professionals. He rarely shied away from expressing his opinion no matter whose feathers were being ruffled.

"I was the new kid on the block when I met Frank in 1994" at a national conference, said Ben Watkins, Florida's director of bond finance for the last 28 years. The two had dinner and their long friendship began.

"He was my best friend in the business for many years. It was a luxury to have someone you liked and respected and who would provide an unbiased point of view. Frank provided an ethical compass due north and was a role model," Watkins said.

Hoadley led Watkins to his later role in GFOA policymaking and helped him expand beyond plain vanilla structures — a term Hoadley commonly used. "Frank was always interested in doing something new whether it was with coupons or call provisions," Watkins said. "I used to steal good ideas from Frank."

"He was a mentor and leader unlike any other and it was very special to be taught by such a man," said Susan Gaffney, president of SG & Associates and executive director of the National Association of Municipal Advisors, who worked closely with Hoadley during her tenure as the director of the Federal Liaison Center for the Government Finance Officers Association. Gaffney calls Hoadley a dear friend.

Hoadley introduced extendible municipal commercial paper to the market in 1997. The borrower retains the right in the event of a failed remarketing to extend the maturity, which eliminates the need for a liquidity facility. Hoadley was among the first to use electronic bidding and to conduct an international roadshow.

The state's $1.8 billion pension sale that won The Bond Buyer's Midwest Deal of the Year in 2004 was a stand-out that brought the state's pension system up to full funding and introduced a new municipal credit structure to the international market.

Hoadley left his stamp on a wide range of best practice positions during his tenure on and as head of the GFOA's influential debt committee including Debt Management Policy, Primary Market Disclosure, and Understanding Your Continuing Disclosure Responsibilities.

"He started a long-standing tradition of GFOA taking the lead on bringing the market together, taking the time to help, welcome and engage with all types of finance professionals," GFOA said in a statement.

He advocated for both issuer and market causes as Congress crafted the American Recovery and Reinvestment Act in 2009, which established Build America Bonds, as well as the Dodd-Frank Act in 2010, which impacted advisors, banks, and regulatory agencies.

In 2008, the Municipal Forum of New York gave Hoadley its lifetime achievement award. U.S. Rep. Gwen Moore, D-Wisconsin, submitted a statement honoring Hoadley into the U.S. Congressional Record.

Hoadley's legacy continues back home.

"Frank had many natural abilities when it came to the municipal market; one was the ability to immediately identify and immediately counter any terms and conditions or precedents that would have a negative impact not only on the state of Wisconsin but the entire issuer side of the municipal market," said David Erdman, Hoadley's longtime deputy who was elevated to director in 2015.

"My best memories of working with Frank were the collaboration he promoted not only within our office but across the market. Frank would call us into his office — we couldn't see Frank due to the stacks of paper on his desk — but he would mention an idea and ask staff to fill in the details, identify ways to make his idea better, and work to address any rough edges," said Erdman, who retired this summer from the state to join Baker Tilly Municipal Advisors LLC.  

"Frank could make a gruff first impression and took a certain satisfaction in being a little bit intimidating to lawmakers, colleagues and especially to the bankers and underwriters on the other side of the negotiating table," said Brad Elmer, a managing director at Baker Tilly who worked as a capital finance officer during Hoadley's tenure. "But for those that stuck with Frank, they were rewarded with lifelong friendships. Frank valued his professional relationships like they were family and was a staunch defender of his employees."

Erdman last month handed the reins over to his deputy in the office, Aaron Heintz, who was hired during Hoadley's tenure. "His willingness to mentor and listen to others and provide staff the freedom to be creative with getting tasks done are aspects of Frank that will never be forgotten," Heintz said.

Bankers who courted Hoadley faced a tough initial meeting.  "Frank could be hard and intimidating but that's because you had to have something to say to him and he inspired good work and rewarded good work," said one banker whose relationship with Hoadley dates back to his early career.  

"His interest and support of young folks starting out in the business was without parallel," said Omar Daghestani, now a managing director at Stifel. "As a first-year associate, he would call you directly to follow up on analysis and ideas. He also made sure to invite me on the state's European and U.S. roadshow."

"Frank had nicknames for most investment bankers — and some of them can't be repeated here," Erdman said.

Hoadley loved concerts, public television, good food — especially dessert — and his gadgets.

A ride in the passenger seat of Hoadley's vehicle entailed moving a handful of gadgets connected to the cigarette lighter onto your lap. He often brought them with him on trips. Upon arriving at a New York meeting, the first question one banker remembers always getting was "guess what speed our plane took off at" as he had recorded it on a GPS device.

After dinner meetings in New York, Hoadley most enjoyed Bananas Foster, which was eventually renamed by one banking team "Bananas Hoadley."

Trips to New York with Frank were always memorable — and predictable, Erdman said. "Wisconsin staff always stayed at a hotel we called the Hoadley Hilton on Lexington Avenue and every trip to New York included stops to the handful of Frank's favorite restaurants.  Sorry Pat McCoy, but Frank had some opinions about the New York subway system so transportation was always via cabs — a practice I still follow today," Erdman said.

Frank Ross Hoadley was born Nov. 3, 1944, to Joseph and Frances Hoadley in Saint Louis. The family relocated to Gillette, Wyoming, after "Doc Joe" finished his service as an Army surgeon. Hoadley retained his farm boy heritage in his down-to-earth nature, many market professionals said.

Growing up, Hoadley hunted antelope, deer and rabbits on the family homestead ranch. Hoadley's love of foreign travel had early roots as he spent his senior year of high school as a foreign exchange student in Australia. Hoadley went on to study English Literature at the University of Wyoming and later worked there as a campus police officer.

Hoadley moved on to the Laramie, Wyoming, Police Department working as a detective and then took over as a city manager. He took an investment banking position at Boettcher & Associates in Denver. The Wisconsin capital finance position opened up in 1987, Hoadley took the position and headed east.

"I remember congratulating him on going to Wisconsin and it was there that he really developed and took a leadership role and established himself," said Robert Doty, president of AGFS, who also worked as a banker in Colorado at the time. "He was a terrific guy. He treated people with respect."

Hoadley, who lived with his wife in Lodi, just outside Madison, loved to attend concerts, and other cultural events and to travel. Retirement offered additional time for those outings in his home state of Wyoming, across the country, and Europe.

He is survived by his wife, Elizabeth, his sister Jeanette, brothers David and Clyde, and daughters Marci and Jessica.