StoneCastle Securities

Partnership | Expertise | Experience

Who We Are

StoneCastle Securities is a FINRA registered broker-dealer with primary activities in debt and equity private placement, and fixed income institutional sales and trading. Our focus is on the U.S. private placement market where StoneCastle’s esoteric credit team has deep market experience and is highly regarded by institutional investors.

Debt Private Placements

  • Alternative to public debt instruments for both issuers and investors
  • Issued under Rule 506 of Regulation D of the Securities Act of 1933, considered the “safe harbor” provision and/or Rule 144a
  • Average annual private placement issuance has been over $90 billion*
  • Typical transaction sizes range from $250 – $500 million with a handful of new issues topping $1 billion

Role in Debt Capital Markets

What type of companies choose to access the US Private Placement (USPP) Market?

  • Both rated and unrated, public and private companies, foreign and domestic
  • Alternative source of liquidity from the traditional bank market (long-term, fixed rate) without the need for a formal credit rating and reporting requirements, which are a pre-requisite of the public bond markets
  • Diversified capital sources, confidentiality, tax, and operational efficiencies
  • Credit quality of USPP issuers is very high, with over 90% of the securities in the investment-grade category, designated NAIC-1 or NAIC-2*

The Private Placement Monitor 12/31/20

Life Insurers are the predominant investors in the market                   

  • The life insurance business model is to match assets and liabilities (ALM) within tight tolerance limits
  • Incremental yield, favorable structural protections (covenants), and enhanced credit diversification for investors

U.S. Private Placement Market

  • Traditional Private Placements

    •  Secured, senior unsecured, and other corporate credit
    •  Infrastructure and Project Finance (renewables, power, toll road, pipeline, other)
    •  Credit Tenant Leases (fully amortizing and balloon notes)
    •  Equipment Trust Certificates (aircraft, rail, ship, other)
    •  Taxable municipal securities
    •  Bank loans

  • Broad Range of Structures

    •  Leases and pass-through notes
    •  Trust certificates
    •  Credit linked notes

  • Other Securities

    •  European corporates, both dollar and non-dollar
    •  Emerging market corporates
    •  Less-liquid and illiquid 144As


Esoteric Credit Trading
  • Scott Best
    Scott Best
    Managing Director
  • Matthew Faranda
    Matthew Faranda
    Managing Director
  • Lawrence Taylor
    Lawrence Taylor
    Managing Director
  • Richard Lopez
    Richard Lopez
    Managing Director
  • Jamie Brownback
    Jamie Brownback
  • Joseph Caradimitropoulo
    Joseph Caradimitropoulo
  • Stacey Breaks
    Stacey Breaks
    Vice President
  • Shawn Clegg
    Shawn Clegg
    Trading Assistant
Management and Operations
  • Robert Holmen
    Robert Holmen
  • Shannon Jemmoth
    Shannon Jemmoth
    Managing Director
  • Xiomara Larios
    Xiomara Larios
    Vice President & Senior Compliance Analyst