Reported 11 months ago
Citigroup Inc. and UBS Group AG have withdrawn from the municipal bond market after profits in the $4 trillion market plummeted by 30% to 50% from 2005 to 2023, as underwriting markups decreased. This decline, revealed by a study presented at the Brookings Institution, was attributed to a broadened pool of investors and improved disclosure practices that compressed underwriting spreads. The exits of these major Wall Street firms have raised concerns about limited financing options and increased borrowing costs for local governments in the future.
Source: YAHOO