Bookrunner syndicate geography and the quality of service: the benefits of a local team

Arthur Krebbers, Andrew Marshall, Biwesh Neupane, Patrick McColgan

Research output: Contribution to journalArticlepeer-review


We analyze how the geography of bookrunner syndicates affects the quality of service provided to bond issuing firms, as reflected in the pricing of euro-denominated corporate bond tranches. We find that syndicates with a higher share of domestic bookrunners obtain lower at-issue credit spreads for issuing firms. Domestic bookrunners can have locational advantage which not only gives them better access to the investors base, it also gives them "soft" informational advantage as they are more familiar with the bond issuer. We find that the tranches issued during the financial crisis and the eurozone crisis periods drive our findings, and both certification and placement roles become important to bond issuers in these crisis periods characterised by high information asymmetry. Our results are robust to other definitions of bookrunner geography.
Original languageEnglish
Article number102500
Number of pages54
JournalJournal of International Money and Finance
Early online date16 Sep 2021
Publication statusPublished - Dec 2021


  • bookrunner geography
  • at-issue credit spread
  • quality of service
  • financial crisis
  • eurozone crisis
  • placement function
  • geographical proximity


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