We sat down with Tom Massey, executive vice president and director of UMB Bank, n.a., Capital Markets Division, to discuss what brought him to UMB, what he’s seeing in the fixed income markets, how curiosity has shaped his career—and why he treats his guitar collection like an investment portfolio.
What brought you to UMB?
I was working for a specialty investment group and was not actively looking for a new opportunity, but my team and I were approached by a recruiter. UMB was looking to grow its capital markets presence in the institutional space to match its existing capabilities in the community bank capital markets and commercial banking spaces.
Having grown up in the St. Louis metro, I was familiar with UMB, but as I said, I wasn’t looking for another job, and my interest in meeting with the UMB team was somewhat guarded.
When I finally agreed to have a meeting, I was inspired by both the opportunity and the people I met. It was the best story that I had never heard—the history of the organization, how UMB cares about clients, associates and the communities we serve, and how “doing the right thing first” was ingrained in the culture. It was exciting and refreshing. Their culture and goals aligned with my own, making it an easy decision to join.
What trends are you seeing in your space this year?
In capital markets, and specifically in the fixed income space, we’re operating with higher rates and a market sentiment that acknowledges the potential upside risks if inflation and energy prices remain elevated. These higher yields affect our counterparties and clients in different ways, but they are creating unique investment opportunities for many investors.
Expectations for higher levels of borrowing are adding to term premiums, resulting in a more normalized Treasury yield curve and compensating investors for holding duration risk.
Credit fundamentals remain strong, but there is no room for complacency. Credit selection, customer engagement and relationships remain at the forefront in fixed income decision making.
In that vein, our customers are looking for creative solutions to new problems. How we respond to new market situations and opportunities, and how we work with our customers to plan for their future needs, are the driving forces behind the types of services that we offer and develop. We act with a focus on growing with our customers.
How have you seen the capital markets industry change over the past few years?
There have been many structural changes. Over the past two years, we—and our customers—have moved from reacting to the massive rate move of 2022–2023 toward a more competitive, technology-driven, risk-conscious environment.
Talent
Talent requirements have changed significantly. Our associates have had to become more well-rounded to ensure we can effectively service our clients. We have become more efficient across a wide range of skills, including not just our markets and product offerings, but also credit, technology, regulation, cybersecurity and operational efficiency. This approach to a changing landscape helps us bring all UMB to the client to assist them in achieving their strategic goals.
Changing landscape
Regulatory and legislative changes have affected the way customers view certain sectors, and they also affect the way that dealers trade, position and clear them. As a bank-dealer, we operate a highly regulated business, as do our customers, and we need to ensure that we are aligned to properly service them. Liquidity management has a greater and renewed focus as well, and pledgeability of securities remains a key focus of growth.
Innovation and tech
Technology and its proper application have become a competitive requirement. Electronic trading and new trading protocols continue to advance—not all sectors are at the same level of development, but they are all moving forward toward electronification. Tokenization, AI and predictive pricing are becoming normalized in the markets. And massive improvements in data and information sourcing, along with broader technological advancements, have been a market equalizer. All of this has led to new product strategies and investment strategies.
What is your approach to leadership?
I approach leadership with a foundation built around ownership and accountability. We have high expectations and standards for both me and for the associates on our team. That accountability needs to be aligned with truth and trust.
Communication and an open platform for new ideas are central to the success of that approach. We take a “no pride of authorship” approach, where an associate can take an idea or proposal and improve it and make it their own. The input of associates is key in developing terrific solutions, and that leads to ownership of the outcomes. The bank does a great job of providing tools and opportunities for associate growth and development, which also reinforces both ownership and accountability.
Have you had a mentor or someone who inspires you?
My parents were my first and greatest mentors and inspirations. They raised seven children, and while doing so, they started their own business, a family-owned pharmacy. My mother went back to school after I—the youngest of seven—started elementary school, and she graduated from the St. Louis College of Pharmacy. They set an example of family, faith, and community that became the cornerstone of my development. They always made time for what mattered, and what mattered was doing the right thing and caring for others.
Professionally, I had a trading manager who became a great mentor very early in my career. He was demanding yet patient. Answers weren’t enough; he had me explain how I came to my answer. “Anyone can guess the right answer—show me how you got there” was the way we operated. He ensured that I understood the “why” and the “how” of the markets we traded. It inspired an intellectual curiosity that I have to this day.
Do you have any advice for those who want to start a financial career?
Be curious, ask how and why, and be prepared to work both purposefully and hard. There are many paths one could take in banking and capital markets, each with its own career trajectory. The best way to find your path is to understand where each of them can take you, and you can do that by asking not only the first question, but the next, and the next after that.
Take every opportunity to gain additional exposure. It’s a great way to understand what you enjoy and what you don’t enjoy. Each opportunity may not in itself be especially interesting, but it may give you a basic understanding upon which to build your unique skill set.
Markets are about risk and return. Understand the various forms of risk first. They will often explain why the return is what it is. An understanding of both is how value is uncovered.
Additionally, one should understand that in financial markets, the only constant is change. Embracing that change and its drivers is critical for success.
What do you do for fun?
I have played the guitar for about 50 years, and I collect vintage guitars. The collection allows me to align my musical passion with my passion for the markets. I somewhat treat the collection like an investment portfolio, looking for long-term performance in the underlying value of the collection, while also taking the opportunity to play some amazing instruments. Admittedly, I tend to have a hard time selling.
I like to hunt and fish, and generally just spend time outdoors. It’s a great way to reset and have some quiet time to reflect.
I also like to do anything that involves my wife, Gina, and our four children. They are my best friends, and we always have fun when we are together.
Learn how UMB Bank Capital Markets Division’s fixed income sales and trading solutions can support your bank or organization, or contact us to be connected with a team member.
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UMB Bank, n.a. Capital Markets Division is a separately identifiable division of UMB Bank, n.a. UMB Bank, n.a. is an affiliate within UMB Financial Corporation. UMB Financial Services, Inc., Member FINRA, SIPC, is a wholly owned subsidiary of UMB Financial Corporation, and an affiliate of UMB Bank, n.a.
Products, Services and Securities offered through UMB Bank, n.a. Capital Markets Division and UMB Financial Services, Inc. are: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED
