Hey everyone, I've recently got an offer to join the Loan Structuring and Syndication team at an investment bank. I was told however that despite it operates under the Corporate & Investment Banking umbrella, it is not regarded as an investment banking role. So, I'm just curious - what is the difference between Debt Capital Markets in Investment Banking and Loan Structuring & Syndication?
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The nomenclature at banks is varied but based on what you’ve said, you’re on the loan syndications team and not a traditional debt capital markets team.
Loan syndications is typically a fancy way of saying pro rata or revolver syndication. Compared to term loans and bonds and junior debt, it’s easier to learn and syndicate and structure. Revolvers sit at the top of the capital stack, are secured and have maintenance covenants so they are a pretty safe and vanilla instrument.
DCM encompasses loans and bonds that can be cov-lite and typically requires a keener eye.
Loan syndications can be a sweet gig if you’re just looking to coast and collect a paycheck. There’s hardly any crazy deadlines, it’s always the same banks and pricing grids and covenants barely move.
Dcm is a little more exciting and better pay, but hours can suck in active markets.
Thanks for the insightful info. Since you seem to know this role quite well, how easy is it to transition to an IB role from Loan Syndication?
I mean everyone’s path in finance is different, but loan syndications is at least tangential to dcm.
I think it’s a good place to get your foot in the door at a a good bank. You then have the chance to meet and network with people in the IB division.
I think after a year, you could have a good shot at moving to IB.
Also curious...2nd year in syndicated loans, but don't feeling like learning s*** and staying just cuz of $$$. Were do people normally go from here?
What is your current total comp?
$200k incl. bonus as 2nd yr...Like I said, pay is good but don't feel like learning any real finance.
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