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

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