Debt Capital Markets "Exit Ops"
I will be starting as a DCM analyst at a top BB (GS/MS/JPM/BAML) once I graduate. I have looked through a ton of threads and understand that it's not the "holy grail" since you can't get into PE, VC, etc. (or unlikely at least). However, to be completely honest I don't think those roles are what I want anyways. I think I would be happier on the sell side, building a skill-set and trying to build on that to help clients with whatever their needs may be. However, to be completely honest, I am relatively risk averse and highly value optionality. I concede that it's likely I don't actually know what I want to do yet, so I was wondering how feasible would it be to do DCM and then hit the reset and lateral internally at the BB into an IB role? I know DCM to S&T is relatively "easy" if there's an opening, since many people have done that at my firm, but I wonder how tough would it be to switch to a coverage group or something such as LevFin? Even if I had to start over as a 1st year IB analyst after 2 years in DCM, I would be okay with it since I'm not terribly near-sighted and if I made that choice I would see it as a "1 step back, 2 steps forward" situation. I'm wondering how realistic this could be though, as I understand there may not be much overlap between DCM and IB skillsets, but at the same time, that shouldn't matter much if starting over as a 1st year, right? Would be great to get some thoughts from anyone in DCM or anyone who's made the switch.
Mate you'll need to rely on a fair bit of internal networking and self-study. The first part's self-explanatory, while on the second part - LevFin will require modeling skills / DCM barely does any, LevFin structural analysis is more complex, and overall you will need a mindset shift as LevFin is a risk-taking position vs DCM.
Out of curiosity though, what is it about LevFin that draws your interest?
Personally, I just love working with fixed income and bonds in general. To me, working with issuers to raise debt by considering various refinancing/issuing scenarios based on both market and credit-specific factors, and then using those to price the debt is something I enjoyed doing this past summer. However, I think LevFin would allow a little more in-depth analysis (both financial modeling and qualitative across covenants, cap stack etc) since the credit quality of the issuer is worse and requires a little more TLC when working with them. Much more interested in LevFin cause of how closely they work with the fixed income markets.
Seen DCM to LevFin happen in my BB. Just network with the team to stay on their mind and when someone leaves ask to be intro'd to seniors - its cheaper for them to recruit internally than pay HHs to poach someone.
That's definitely a relief to hear. Do you know which DCM group this was (Corps, ABS/RMBS/CMBS, Munis, or structured credit?)
Was in London for someone covering Coporates.
Although maybe less of a "skillset overlap", do you think someone coming from a structured credit or ABS/RMBS/CMBS Capital Markets desk could reasonably lateral as a 1st/2nd year into LevFin?
Wouldn't mind losing a year or two because I understand there is a lack of skillset overlap..
seems more difficult, you may want to go to corporates first before levfin
I don't mean to inundate you with questions, but if it were for a 1st year Analyst role in LevFin, why would experience matter? Since you technically "don't know anything" as a 1st year starting out. I don't mean this question in a condescending way, genuinely curious.
Well first of all you most liley spent your summer in that team and previous internships in similar ones, hence you are somewhat expected to know stuff... Secondly people bucket you very quickly as you may not think the same way about IG vs HY and even more so Structured credit - IG Corporates and LevFin see at corporates CFs that operate in different industries, ABS/CMBS/RMBS are mostly RE related and the cashflows are different and dynamics different - be it clients, buyers,, ratings, risks, docs, etc. Finally I don't think after a year you would want to be rolled back to Analyst 1. Why did you not go to levfin directly?
Sounds like you’re working at BofA.
LOL saw that and was like nah I'm not gonna edit my post to flag him
Haha not gonna lie it's funny when people start guessing who's working where on these posts, can't confirm nor deny! Regardless - Would love to hear your thoughts @guava
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