Hi monkeys,
Got a call saying that a manager saw my CV and would like to have a chat with me......He is in the coverage group for Northern Europe (yea i know it sounds vague and does not really give much away , but that is what I have for now)
I wanted to know what does coverage really mean and whether on a junior / analyst level would compare with something like DCM or Lev. Finance......so if someone can offer some insight that would be great !! Also, any info about career progression and salary would be helpful :)
Cheers guys, hope you are having a great day
You cover companies in a certain sector, as opposed to covering a certain product. Hence, your experience might be a little bit more diverse than some kid from ECM who does league table runs or a kid from M&A who only plugs #s into the same model all day long.
Coverage is usually industry-related (Tech, Healthcare, Industrials, FIG, etc.), and sometimes even sub-sector related (Telecom, Semiconductors, Aerospace, Chemicals, etc.). Your coverage seems to be geography-related, which is strange, but I guess it's the same concept, only done in a certain geographic area.
So what's your experience like? In a coverage group, your (well, your MD's, to be exact) job is to source deals by meeting repetitively with companies you specialize in. To these companies you offer ANYTHING they might or might not want (debt, equity, M&A). Product groups will help you with pointed pitches and will supply you with league tables and other "insightful" materials. Once you source a deal, the product group usually does most of the execution (i.e. M&A and Lev Fin will do the modeling, ECM will coordinate with the trading desk, etc.). You'll do some of the execution as well, but it'll probably be more industry-related, as you'll quickly move onto another pitch for another prospective client long before the deal you just sourced closes.
A few caveats: 1) Some banks have product-specific industry groups, either by design or de-facto (i.e."Tech M&A"), while others have strict industry groups and product groups (sounds like you're going to have to have a geographic group).
2) The reason I asterisked might in the first paragraph is that some industries really don't do too many different products. I.e. certain healthcare groups might mostly do equity deals, industrials might mostly do M&A, telecom might mostly do debt / lev fin, etc. So usually you get a decent idea of what kind of product you'll be concentrating in just by looking at tombstones your group worked on. For instance, many MM banks with Asian geographic coverage only do equity deals, whereas BB's also do some M&A and managed equity deals, etc.
Pretty much spot on - nicely explained. How much of the execution the coverage team does varies from bank to bank. And on specialised sectors like FIG and oil & gas the modelling, for example, will stay with the coverage team (more efficient this way).
I'll throw you out a +1 for a very easy to follow, but thorough explanation... this type of overview would be something the OP might want to look at and condense for an interview answer to "what is i-banking?" or "so do you know what you'll be doing?"
Well said midnight... also good insight on specialized sectors Tier2
Thanks a lot guys, sorry I had no chance to answer earlier as i was struggling with 7 pitches yesterday. I work in DCM and this is all very useful information to know about coverage.
Would appreciate your "personal views" on something like the learning curve compared to DCM or a markets group ? I understand that some groups might do the modelling like Tier2 said, but what about groups that do not, then will it only be kind of a relationship management / sales job and progression would be limited ?
Anyway that is pretty insightful stuff to read over here, I will probably have more questions once I meet with the guy.
Thanks again guys ?
How industry coverage fits in? (Originally Posted: 02/22/2015)
Hello,
I understand the general role of industry coverage groups. I know they deal with clients for when a client needs something done, but what exactly would an analyst be focusing on for these clients mostly (eg. types of deals that generate fees)? I'm really wondering how the modeling fits in here when you also work with the M&A/Lev Fin product groups. Like what do you do in this role that makes you different from those product groups? Is it a majority of origination? Can anyone recap their 2014 years deals with general deals? And what would you do as an analyst if you did have to work on a deal with one of the product groups (eg. an acquisition)?
As far as the group type, a general one like healthcare or tech is fine to speak about. I know ones like FIG are a bit more complicated.
Thanks.
I work at a Utilities coverage group and normally do all the modelling in house and the M&A group brings the strategics, defence...
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