[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-263351-105":53,"doc-detail-263351-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","breaking-the-bond-the-effect-of-banker-turnover-on-municipal-bonds","Breaking the Bond - The Effect of Banker Turnover on Municipal Bonds","","The study examines whether banker human capital creates value beyond bank-level reputation effects in bond underwriting. Using granular data on senior banker mobility in public finance, it tests whether municipal borrowers benefit when their banker moves to a new institution. Identification exploits quasi-exogenous variation from the 2021 Texas underwriter ban, which forced major banks to exit municipal underwriting and triggered subsequent banker moves. Instrumental-variable estimates show following a banker reduces yield spreads by 19.5 basis points, especially for bankers with MBA degrees.",{"@graph":63,"@context":118},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":51,"@type":70,"position":76},"https://docshare.wps.com/template/general/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/breaking-the-bond-the-effect-of-banker-turnover-on-municipal-bonds/263351/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/breaking-the-bond-the-effect-of-banker-turnover-on-municipal-bonds/263351.png","ImageObject",442,249,{"name":88,"@type":89},"Emma Mercer","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-20","2026-09-14",true,{"@type":98,"interactionType":99,"userInteractionCount":79},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104,110,114],{"name":105,"@type":106,"acceptedAnswer":107},"What central question does the paper address?","Question",{"text":108,"@type":109},"Whether individual banker human capital adds value in bond underwriting beyond bank-level effects, and whether municipal borrowers benefit when their banker moves to a new institution.","Answer",{"name":111,"@type":106,"acceptedAnswer":112},"How does the paper identify the causal effect of banker mobility?",{"text":113,"@type":109},"It uses quasi-exogenous variation from the 2021 Texas underwriter ban, which forced major banks to exit municipal underwriting and led to subsequent banker moves.",{"name":115,"@type":106,"acceptedAnswer":116},"What is the main empirical finding?",{"text":117,"@type":109},"Following a banker reduces yield spreads by 19.5 basis points, with larger gains for bankers holding MBA degrees.","https://schema.org",{"og:url":78,"og:type":120,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":122,"canonical":78},"index,follow",{"doc_id":124,"site_id":56},263351,1789370029,{"code":4,"msg":5,"data":127},{"doc_id":124,"user_id":128,"nickname":88,"user_avatar":129,"doc_module":9,"category_id":50,"category_name":51,"doc_title":59,"doc_description":61,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":79,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":135,"language":136,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":61,"update_tm":125,"read_time":140},962084925502,"https://ap-avatar.wpscdn.com/davatar_6f874abed73319feea01a86fa6f0fab8","Breaking the Bond: The Effect of Banker Turnover  \non Municipal Bonds ∗  \nNatasha Boreyko†  \nJuly, 2026  \n[Please Click Here for the Most Recent Version]  \nAbstract  \nDoes banker human capital create value beyond bank-level effects in bond underwriting? I assemble novel data on senior banker mobility in public finance and study whether municipal borrowers benefit from following their banker when she moves to a new institution. To isolate the value added by the banker, I exploit quasi-exogenous variation from the 2021 Texas underwriter ban, which forced several major banks to exit municipal underwriting. Many bankers subsequently moved, inducing some borrowers to follow them. Using an instrumental variables approach, I find that following a banker reduces yield spreads by  \n19.5 basis points, with larger gains for bankers with MBA degrees. Bankers add value not only through information production but, more importantly, through their investor networks. These results imply that for bond underwriting, informational capital and investor relationships are portable with bankers, not institutions, and suggest a non-neutral effect on issuers when bankers move.  \nKeywords: Relationship Banking, ESG Policies, Public Finance, Municipal Bonds, Underwriters, Labor Market  \n∗ I am extremely grateful to my advisors Nadya Malenko (co-chair), Uday Rajan (co-chair), Kunal Sachdeva, Andreas Haggemann, and Mel Stephens for their continued guidance and support. Iam also thankful to Neroli Austin, Snehal Banerjee, Sugato Bhattacharyya, Alex Butler, Rebecca De Simone, Daniel Garrett, Ruidi Huang (discussant), Erik Gordon, Ivan Ivanov (discussant), Edward Kim, Leah Li, Victor Lyonnet, Andrey Malenko, Shane Miller, M.P. Narayanan, Amiyatosh Purnanandam, Sophie Shive, Savitar Sundaresan, Julian Terstegge, conference participants at the Olin Finance Conference at WashU 2025 poster session, FMA Annual Meeting 2025, AFA Annual Meeting 2026, and seminar participants at the University of Michigan for their helpful comments and suggestions. I thank the Mitsui Life Financial Research Center for providing financial support for this research. All mistakes are my own.  \n†Stephen M. Ross School of Business, University of Michigan [nboreyko@umich.edu](nboreyko@umich.edu)  \n1 Introduction  \nAccess to external financing is central for companies, countries, and municipal borrowers (Modigliani and Miller, 1958; Rajan and Zingales, 1998) . In primary bond markets, this access is mediated by bond underwriters. They certify issuer quality and place bonds with investors, whose demand often responds to the underwriter’s reputation. While existing research documents these reputation effects at the bank level (Fang, 2005), the contribution of individual bankers remains largely unexplored. Accordingly, we lack evidence on how banker mobility affects borrowers and whether value stems from the banker’s portable skills or from the bank’s institutional capital.  \nThis paper explores whether individual bankers have an independent, economically meaningful effect on bond issuance outcomes beyond the bank’s brand. I study this question in the context of the municipal bond market, which is among the largest U.S. capital markets, with new issuance of about $500 billion in 2024 .1 The main result of the paper shows that the human capital of bankers plays a crucial role in bond underwriting by adding value not only through information production but largely through investor networks. The results suggest that investor relationships and informational capital travel with the banker and cannot be fully embedded in the bank.  \nA comparable contribution of human capital appears in other areas of financial intermediation. For example, in lending, loan-officer experience and local knowledge mitigate information frictions (Bushman, Gao, Martin, and Pacelli, 2021; Engelberg, Gao, and Parsons, 2012; Fisman, Paravisini, and Vig, 2017), and in the M&A market, advisor reputation and deal-structuring sk","cbCaiv9kxW6mzqG4","https://ap.wps.com/l/cbCaiv9kxW6mzqG4","pdf",703392,81,"English","# Abstract\n# Introduction\n## Banker mobility and underwriting value\n## Empirical challenges\n## Data and identification strategy","[{\"question\":\"What central question does the paper address?\",\"answer\":\"Whether individual banker human capital adds value in bond underwriting beyond bank-level effects, and whether municipal borrowers benefit when their banker moves to a new institution.\"},{\"question\":\"How does the paper identify the causal effect of banker mobility?\",\"answer\":\"It uses quasi-exogenous variation from the 2021 Texas underwriter ban, which forced major banks to exit municipal underwriting and led to subsequent banker moves.\"},{\"question\":\"What is the main empirical finding?\",\"answer\":\"Following a banker reduces yield spreads by 19.5 basis points, with larger gains for bankers holding MBA degrees.\"}]","Breaking the Bond - The Effect of Banker Turnover on Municipal Bonds | PDF",28]