Stifel Buys Muni Underwriter George K. Baum to Expand in Midwest

Stifel Financial Corp., the tenth-biggest underwriter of state and local government bonds, agreed to purchase the municipal-debt business of smaller rival George K. Baum & Co., expanding its presence in the Midwest.

The merger comes as competition in the business intensifies as the biggest Wall Street banks handle a majority of bond deals, putting pressure on regional underwriters. At the same time, the pace of borrowing has slowed since President Donald Trump’s 2017 tax-cut law pulled the subsidies from a type of refinancing that accounted for a big share of new sales each year.

Stifel has grown by purchasing smaller, ...