Updating of a fixed capital
If someone tells you, “I work in Debt Capital Markets (DCM),” you might immediately think: Bond. Or, you might not think of anything at all since there’s much less information about the debt markets than there is about the equity markets.
Everyone can recall famous IPOs of technology companies, but hardly anyone outside the finance industry can name a “famous” debt offering.
As a junior-level banker in this group, you’re responsible for three main tasks: “We have 0 million of debt maturing in 5 years.
Similar to its counterpart, Equity Capital Markets, Debt Capital Markets is a cross between sales & trading and investment banking.
These memos help get your bank comfortable with deals and provide the sales force with the numbers and analysis they need to ‘sell’ the offerings to institutional investors.
Finally, you will also spend a fair amount of time answering requests from industry and product groups, updating market slides, and creating case studies of recent debt deals.
There is some quantitative and financial modeling work, but it is usually as in-depth as you might think.
DCM tends to be a higher-volume, lower-margin business than ECM.
The recruiting process is similar to the one for any other investment banking role: Start early or be left behind!