DCM -> What to do?

Based on the most helpful WSO content, here’s what you need to know about breaking into DCM/LevFin in Toronto or NYC:

1. Are DCM and LevFin applications separate from M&A?

   • Yes, DCM and LevFin applications are typically separate from M&A. While all these roles fall under the broader Investment Banking Division (IBD), they often recruit from different applicant pools. M&A tends to be more competitive due to higher demand and fewer spots, whereas DCM and LevFin may have slightly less stringent selectivity but still target top candidates.

2. What type of second-year role do these shops prefer?

   • For DCM and LevFin, roles that demonstrate strong analytical skills and familiarity with financial markets are preferred. This includes internships in Private Credit (PC), Sales & Trading (S&T), or even Hedge Funds (HF). Your current PC internship is a great start, as it aligns well with the credit-focused nature of these roles.

3. How tense are they on GPA?

   • GPA is important, but DCM and LevFin may not be as GPA-obsessed as M&A. A 3.5+ GPA from a strong school is generally expected, especially for top banks. However, networking and relevant experience can sometimes offset a slightly lower GPA.

4. Is an exit into PC or a credit HF realistic after 2-4 years?

   • Yes, an exit into Private Credit or a credit-focused Hedge Fund is realistic after a stint in DCM or LevFin. These roles provide a solid foundation in credit analysis, structuring, and market dynamics, which are highly transferable to PC and credit HFs.

5. Which American banks still sponsor considering the current situation?

   • Sponsorship policies can vary by bank and economic conditions. Historically, larger banks with significant operations in both Canada and the U.S., such as Goldman Sachs (GS), J.P. Morgan (JPM), and Bank of America (BofA), have been more likely to sponsor. However, it’s crucial to confirm this during the recruiting process, as sponsorship availability can change.

To maximize your chances, continue building relevant experience, maintain a strong GPA, and network actively with professionals in DCM and LevFin.

Sources: DCM Path, Q&A: Pivoting & Upselling Your Skill Set - Big 4 to DCM, Ratings Agency CA to IB, Going from IB to ECM or DCM? Anyone made this move?, Automation in fundamental finance roles, Hours: LevFin v DCM London