According to a Bloomberg report, a team specializing in state and local debt has transitioned from Citigroup to Jefferies, marking a significant shift in the landscape of municipal bond underwriting. The move includes managing directors Brian Carlstead, Ben Klemz, and Katherine Meyers, who are now part of Jefferies' expanding operations in this niche sector.
The departure comes amid Citigroup CEO Jane Fraser's discussions about potentially shutting down the bank's municipal-bond department. This strategic consideration follows reports that Citigroup's ranking in state and local debt underwriting has dropped from second to seventh place since last year, as per Bloomberg.
Jefferies, on the other hand, has been climbing the ranks, now holding the fifth spot for long-term municipal bond underwriting. This achievement is underscored by a significant increase in market share. The firm's rise is part of a broader trend that has seen an ongoing exodus of municipal dealmakers from Citigroup since 2022.
The implications of these changes are yet to be fully realized, but the migration of experienced personnel such as Carlstead, Klemz, and Meyers to Jefferies could further strengthen the firm's position in the competitive landscape of municipal finance.
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