Preston Hollow v. Nuveen breaks open high-yield muni world
Preston Hollow lays out its claims in eye-popping detail. It accuses Nuveen of unlawful and strong-arm tactics in its effort to thwart its business opportunities by wielding its power and cash to run interference with broker-dealers. The firm takes on not just Nuveen but its prominent head of municipals, John Miller.
“This comes at a time when there is intense competition for product and so this is reflective of the competition that exists in the industry,” Thomas Doe, president of Municipal Market Analytics, said of conflicts laid out in the litigation. “You are fighting for any product and any opportunity you can find.”
Does the case drive a change in market behavior or is it one-off dispute between two firms? “It’s too early to tell,” Doe said.