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Newbie question. I read an article today about New York Times issuing a junk bond, and the underwriter is Barclays. Within Barclays, is it the DCM or LevFin division that did the underwriting work?

Thanks

Comments (5)

  • ibhopeful532's picture

    If it's junk bond (i.e. non-investment grade), the Leveraged Finance team will do the execution.

    LevFin teams primarily deal with 3 types of deals:

    1. Non-investment grade corporate issuances ("corporates")
    2. Non-investment grade issuances for Leveraged Buyouts ("LBO")
    3. Acquisition financing.

    Ideally, the best experience for an analyst is deal type #2, but unfortunately, most deals are of type #1. Type #1 brings in a lot of money for the bank, is a stable and recurrent deal type, and has high likelihood of closing whereas the same does not hold true for 2 and 3.

    This is why LevFin does not necessarily translate into a great analyst experience, especially if the team has so many corporate issuances that the analyst do not have time / the skills to model out financials.

  • doctortt's picture

    thanks big guy

  • In reply to doctortt
    ChildPlease's picture

    doctortt wrote:
    Then, what does DCM do? like underwriting investment grade bonds?

    Exactly, although some versions are blurred depending on the bank.

  • Gekko21's picture

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