Financier Titan Truist Fortifies its Ranks with Experienced Municipal Veterans from Citigroup
Truist Makes Strategic Moves in the Municipal Bond Market
In a significant shakeup in the municipal bond market, Citi has announced its exit from the business by the end of this month. The decision comes as Citi aims to increase its overall returns, a commitment that has led to the departure of its head of markets, Andy Morton, and interim head of banking, Peter Babej.
However, this departure has opened up opportunities for other players in the market, and one such player is Truist. The bank, which currently ranks as the 35th-largest municipal underwriter, has been on a growth spree, moving up 12 slots last year.
Truist's expansion in the $4 trillion municipal finance industry has been bolstered by strategic hires from various financial institutions. Notable additions include Robert Mellinger and Matt Bernstein, who have joined to help expand in the municipal bond market. Jamie Doffermyre, Jeffrey Swanson, William Hendricks, and Dan Mulligan, who are Citi muni alumni, have also joined the Truist team.
Jeffrey Swanson serves as a director at Truist Securities, while Jamie Doffermyre leads municipal high yield at Truist. Bill Rogers, CEO of Truist, stated that public finance opportunities are starting to grow, and the bank is capitalising on this trend.
Scott Frail joined Truist in 2021 as head of public finance origination, and since then, the bank has been bolstering its municipal team. Todd Bleakney joined Truist as managing director of Truist Securities a few months after Scott Frail.
In addition, around 20 bankers, traders, and salespeople have been hired by Truist from Wells Fargo, Hilltop Securities, and T. Rowe Price. The bank is also expanding its reach from a Southeast footprint to a more national scope in its plan to grow as a muni player.
Cameron Parks has been appointed as the head of infrastructure and government banking at Truist, further strengthening the bank's position in the municipal bond market.
The surge of state and local debt sales this year has been over 40% from the previous year, according to Bloomberg data. This trend, coupled with Truist's strategic hires and expansion efforts, indicates that the municipal bond business of Truist is growing significantly.
As Citi's exit from the muni bond business is expected to affect around 100 employees, it remains to be seen how the market will adapt to this change. However, with Truist's aggressive expansion plans and strategic hires, the bank appears poised to make a significant impact in the municipal bond market.
