DCM vs. Equity Research
Hey Everyone,
which division would you prefer, and why?
I see limited exit opportunities at (investment grade) DCM, but job stability as some institutions are always issuing bonds (banks, governments).
ER seems much harder to break in, but offers more exit opps (especially buy side). How stable are ER jobs?
How do hours compare? Customer contact?
Thanks for your answers.
(I am ldn based, but feel free to discuss globally)
I can say ER is very stable (relative to IB and S&T). Departments are fairly lean, and generally generate stable profits. They also facilitate IB & S&T business. Customer contact is very good - an analyst might spend 60-70% of his day on the phone with clients. As an associate, you would start with near 0 contact, then ramp up over a few years.
DCM, as I perceive it, doesn't really fit in anywhere. You understand debt, but not as well as a credit analyst. You have client contact, but typically as an intermediary.
I might be biased, but I'd take ER every day of the week. Better hours too - 7 to 7 is standard.
How the eff does ER generate profits? That said, I love debt, find it facinating, but i would choose ER anyday.
It also helps IBD win business - executives love it if you have an II ranked analyst covering their company.
And then you also have rare cases where research is bought directly, although this mostly applies to independent shops.
How do exit opportunities compare? Possibilities to switch to buy-side from ER/DCM?
I know many DCM bankers switching to bank treasuries, and ER should place in AM/HF, is this correct?
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