Can I lateral from DCM to IB coverage?
I have two FT offers at similar tier banks (low-tier BBs):
1. Typical DCM role
2. Leveraged Finance role, but not client facing. More like portfolio management, compliance, updating financial models, DD, etc. Basically supporting the client-facing folks
No matter which role I take, I want to lateral to a IB coverage team at another bank after about an year.
Which role should I take? I heard the LevFin group will be best for my modeling skills, but I'm worried about it not being a true front office role, as opposed to DCM. Is DCM to coverage a typical move, or impossible?
Very common and an easier jump than LevFin because of the skillset/product overlap. You'll be competitive for an internal move or to a different BB/EB.
That is great news and I am pleasantly surprised. For some reason I've heard bad things about DCM. Would you say it is easier to lateral to coverage from traditional DCM vs traditional LevFin?
Any hot takes on PubFin laterals?
following
Wondering the same
Bump what about Pub fin summer analysts lateraling to IB coverage for Full time? Possible but not probable?
Yes, very common. I work at a BB and we've had several people come over to our group from non-IB groups when we have an off-cycle opening. It make sense anyways since people at the firm already know and therefore vouch for you and its much cheaper for the firm to transfer someone than taking an outside candidate.
Awesome! And by non-IB groups do you mean something like DCM/ECM or something that isn't IBD, like S&T, research, etc?
Dcm
Thanks!
def DCM
Depends on bank for ease. For what it's worth, Barclays is the single best bulge bracket bank for internal mobility — lots of hires come directly from cap markets to their coverage groups
Thanks! I'm not at Barclays; any other banks you know that have great internal mobility?
Have anecdotally heard from friends that GS is a bitch to try to move across parts of the firm, but not much other info I can give ya
It makes sense cause Barclays has the same application for coverage and capital markets. So if you’re in capital markets you’re in IB which may not be the same case in other banks
I may get some MS for this, but this never made sense to me why capital markets is not called/under "investment banking" at every firm.
My understanding is that's because they have a program specifically that lets you do a year on another desk to try something different. Why other banks don't do this is makes zero sense to me because it would help you become a better overall banker having an in-depth understanding of the range of products offered by the bank. Would help with retention too I bet.
Yes -- your third year if you stay to do A2A you can switch groups across IBD.
Simply put, you'll need to make the choice on your own, however, some guidance that I've seen as I am a 2nd year now and am also looking to lateral into a Product/Coverage role from Corporate Banking.
1. Typical DCM role: Actually, there is MUCH less DD and intensive credit analysis learning that you will get in LevFin since primarily the clientele you deal with will be Investment Grade companies and most of the deals you will touch on will either be in the realm of 'refinancing, inaugural issuances, liability management, etc.'. With that being said, nothing wrong with a DCM role and you learn about the FI world, bond math, and can transfer into a Coverage role with a firm understanding of the debt piece of a Company's Cap Structure.
2. LevFin: LevFin offers a very transferrable skillset to IB Coverage as LBO/M&A deals will largely be done with debt and the targets of said transactions are primarily Sub Investment Grade which means skills that you will build are; Intensified Credit Analysis, Understanding the different pieces of a Credit Agreement/Indenture/etc., completing due diligence on companies that quite frankly place risk on the Bank's balance sheet, along with a host of other skills that you will build.
With that being said, both are great options with different skill sets and lateraling will come down to political capital that you build with your team and the networking that you will have to do internally.
Best of luck.
Thanks for the great response.
I know that LevFin would be better for lateraling/exiting, but the role would be more middle office/support and have no client interaction. Is client interaction an important part of the banking experience? Won't others look down at a non-client facing role, even though the modeling/technical skills are there?
From reading more of the comments around the particular LevFin role you mention, then yes DCM in this case would be a better option as others have alluded to.
Client interaction bit: As a junior in banking, quite frankly you will be the one taking the notes, listening in and understanding the asks that will come from the D/MD on the call with very little speaking role. As you gradually move up, this changes however. I've seen AO in Product roles lead a whole conversation whereas in Coverage it usually starts around VP level. Hope that helps.
Is this with a european (benelux) bank? PM me if yes I may have some information
I vote DCM. Lifestyle is good and you may not want to leave. If you do, you’ll have enough experience to spin it into something else. Front office is front office.
To be honest it is a bit unclear what you are saying about the LevFin position. Did you apply to that position being it a front office position? I simply think that your description of the role is what an analyst with zero experience would do at the beginning. I am a bit puzzled because BBs are very structured. My experience is that junior analysts don't get much client interaction, be it coverage, DCM or LevFin. On the other hand it is true that juniors in DCM deal with clients typically earlier than in other groups but the bigger the team, the harder it will be.
The LevFin position was sort of advertised as FO, but its not. Even the VPs of the group have no client interaction.
You have your answer then. You will enjoy DCM
DCM, if you had a real Lev fin offer I'd recommend that but what you're describing is not Lev fin, sounds like portfolio management / credit risk which isn't a front office role and is really hard to Transition out of
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