ABSTRACT We describe the evolution of the market for municipal financial advice since the year 2000 and present new empirical facts. Using SEC municipal advisor filings, we show that the number of operating advisors has decreased over time. We document that withdrawals—either exits, reorganizations, or mergers—are concentrated among smaller firms and those charging noncontingent fees. Using bond issuance data, we document that the use of advisors is increasing broadly over time and that advisor relationships are sticky. We relate the presence of advisors to several phenomena: changing structural complexity, changing disclosure complexity, and the timing of redemption behavior.
Garrett et al. (2026) studied this question.