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Rankings

Substantial shakeups in top municipal underwriters of 2023

By Jessica Lerner
January 8, 2024 10:30 AM

The top municipal underwriters saw big shifts in rankings in 2023.

The changes reflect a year of layoffs at several Wall Street firms, including the October decision by UBS to exit the negotiated underwriting business and Citigroup, which also exited the muni underwriting business, in November.

The industry has weathered its second year of declining volume that increased competition for fewer deals and tightened underwriting spreads. Cheapening bond valuations have challenged balance sheets. The March banking crisis and political dynamics in Texas, one of the market's largest issuers and previously one of Citi's top clients, was another pressure point.

The top underwriters accounted for $362.847 billion in 7,268 issues in 2023, versus the $359.846 billion in 7,906 transactions in 2022.

BofA Securities remained in the top spot accounting for slightly more par and a negligible market share increase than in 2022. RBC climbed to second place after finishing at fifth in 2022 while Jefferies rose to third from eighth.

Shuffling among the top municipal underwriters characterized the year-over-year differences as Raymond James entered the top 10, knocking Barclays to 11th. Citi came in at sixth.

bank-of-america-bloomberg-news
Bloomberg News

BofA remains No. 1

BofA Securities headlined the top municipal underwriters in 2023 once more, accounting for $45.219 billion in 321 issues, or a 12.5% market share. This is up from 2022 when it saw $44.765 billion in 302 deals, or 12.4% market share.
Signage is displayed outside of a Royal Bank of Canada (RBC) branch.
Cole Burston/Bloomberg

RBC is making moves

RBC Capital Markets rose second place in 2023 after ranking fifth in 2022, underwriting $32.878 billion and a 9.1% market share. The firm accounted for $23.19 billion par amount and 6.4% market share in 2022.
Jefferies-sign
Bloomberg News

Jefferies is on the rise

Jefferies accounted for $27.164 billion and a 7.5% market share in 2023, rising to third place among the top municipal underwriters. This is up from eighth place in 2022 when the firm underwrote $16.339 billion with a market share of 4.5%.
Morgan Stanley (bloomberg)
Andrea Verdelli/Bloomberg

Morgan Stanley dips in rankings

Morgan Stanley fell to fourth from third in 2023, accounting for $26.988 billion and a market share of 7.4%. This a decrease the $27.489 billion and its market share of 7.6% in 2022.
JPM
Steve Heap/steheap - stock.adobe.com

J.P. Morgan falls from second

J.P. Morgan fell to fifth in 2023. The firm accounted for $25.874 billion and a market share of 7.1%, down from $38.23 billion and 10.6% market share it totaled in 2022 when the firm placed second.
2023-top-10-underwriters.jpeg

Rest of top 10

Citi fell to sixth from fourth year-over-year, underwriting $22.378 billion for a 6.2% market share. In 2022, it accounted for $27.139 billion for a 7.5% market share. Wells Fargo slipped to seventh place from sixth with par amounts of $21.874 billion and a 6% market share.

Goldman Sachs was in eighth, accounting for $18.88 billion and a 5.2% market share. Stifel Nicolaus placed ninth with par amounts of $16.921 billion, a 4.7% market share; and Raymond James rounded out the list, underwriting $14.907 billion for a 4.1% market share.
Jessica Lerner
Senior Markets Reporter, The Bond Buyer
Rankings Bank of America Citigroup RBC Jefferies Morgan Stanley J.P. Morgan Securities Goldman Sachs Stifel Financial Wells Fargo Raymond James Financial
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