ECM Skills
What is ECM has been discussed, but much like everyone on WSO I've been focused on M&A. That said, I do have an interest in ECM.
What are the skills to emphasize in interviews? In M&A you stress attention to detail, working under pressure etc, and I'm guessing you stress those in ECM too but are there specific skills relevant to ECM?
Would be great if this doesn't degrade into a 'why capital markets sucks' thread.
and various trading platforms.
then making those pretty little graphs so the industry bankers can slap them into their books and tote their firm's massive equity issuance, pricing, underwriting and trading capabilities.
I'm making it up as I go along.
So true, in the pitch books they work for days to make some BS past analysis of different stocks and indices that can be done in one hour with CapIQ...and then when a deal is done they get underwritting fees...
Yes in the US that's what capital markets do, but how about in Asia where ECM/DCM generate the majority of fees, not M&A? Any insight is appreciated.
"how about in Asia where ECM/DCM generate the majority of fees, not M&A?"
What he's talking about applies to all investment banking deals, not just M&A.
Oh ok, sorry about that. Anyone else? Would really appreciate some insight here.
"how about in Asia where ECM/DCM generate the majority of fees, not M&A?"
ECM and DCM generate more fees because they are leveraging the bank's balance sheet. M&A is purely pay for advice, that's why people can set up their own shops but not an ECM shop and to a certain extent is why fees in ECM are very good (and they vary significantly by geography unlike M&A), since you've only got a certain amount of banks who can underwrite large deals.
As an ECM analyst you will be making lots of little graphs and BS pages on distribution etc when pitching. Unfortunately whether you like it or not most of the pages will be the sort that aren't even looked at. It will be the industry team people who will add the real content to the book and to the meeting and it will be dependent upon them whether a bank gets a deal or not (leaving out fees etc and assuming it's a BB with good distribution). I know this for a fact having seen the process through a few times.
When you're on a deal you will spend your time managing an enormous timetable that you constantly have to update with comments from different ppl, as well as managing lots of other similar boring work.
You'll learn very few transferable skills and so have less exit ops.
Basically it is a halfway house between markets and banking without much of the upside of either (that being solid experience in banking and good earning potential in markets) yet with the downsides of both (hours almost as long as banking and a very specific skill set)
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