Got into DCM, now what?

Hi guys (and gals),

I ve managed to get a switch from corporate banking to bulge bracket bank (EU) DCM origination team (which I am very happy about). Would anybody have any suggestions on:

  1. Any literature which would help me get started? (I was already working on one origination transaction on corp side, got overall knowledge of macro and bonds, the usual...) but smth industry specific would help as I am coming into very senior team...

  2. I have a BC. in banking/finance and am nearly done with my MSc in Finance. Any suggestions what steps should be next that would help me work my way up the ladder, possibly go international? Most probably i will be picking up Mandarin lang. Some team members got CFA (duh) but I am not sure about the value of that nowadays, possibly ACCA?

Any other ideas/suggestions that would help me in my DCM career-path, will be warmly welcomed. (Or just sharing some experience, anything will help :) )

Thank you and have a great day!

 

Mandarin is not a great complement to a DCM skill set. Public and syndicated debt markets in Asia are pretty thin.

If you're looking to eventually shift into something in China, is it PE?

Those who can, do. Those who can't, post threads about how to do it on WSO.
 

It just seemed as a language that would be quite unique given my skill set in corp fin and now DCM. I was not targeting China, but Hong-Kong / Singapore seemed like an interesting steps in career. Though for FInance London, and NYC still seems to be pretty dominant (particularly for DCM/ECM/MnA)...

 
Best Response

There's no decent DCM activity in China, HK or Singapore.

What direction are you hoping to take with Mandarin? Are you hoping to work in China and, if so, are you ethnically Chinese? And, if ethnically Chinese, how connected is your family in China?

If you're not planning to work in China, then Mandarin becomes a lot of effort for something that is pretty useless outside of ordering meals "authentically" in China Town.

Also, China jumped the shark around the end of 2010. The rest of the world is slowly coming to realise that.

(PS: So you know the direction I'm coming from - I spent years learning Mandarin and Cantonese while working in IB in Hong Kong doing non-DCM IB; I now live in NY doing mainly LBO DCM)

Those who can, do. Those who can't, post threads about how to do it on WSO.
 

Hey man...It's tough to learn about "Debt" just in one shot or by reading one book, When I was younger I thought that was the way to do it...Your real knowledge in this stuff will come through accumulation. Over time you just need to accumulate practical/theoretical knowledge in pieces.
1) Read the Credit Markets Section of WSJ every single day...when you don't know something, google it and look up what it means. Learn how different instruments are quoted(i.e. differrence in price quoting between Munis and Treasurys is very different.) 2)Somehow, someway, get your hands on Grant's Interest Rate Observer...it's a newsletter that comes out bi-weekly, from Jim Grant, look him up. You aren't going to understand a lot of it at first, over time, you will.
3)Find someone that knows what they are talking about, so that when you read those two things I just mentioned, you can ask questions and have conversation about the material...this is how it will stick the most, debate. 4)Get Fabozzi's Handbook of Fixed income Securities, and use that as a reference for anything you can't find elsewhere. 5) In a year when you know something and want to learn about some more complex stuff, ask Bondarb to tell you about the T-Bond Basis and Eurodollar futures.

 

You will learn everything you need to know on the job. But if you want a head start, for Lev Fin it would be helpful to understand issues surrounding structural and contractual subordination. Also have a firm understanding about why someone would choose to invest in debt instead of equity. But honestly, nobody expects summer analysts to know that much. just don't screw up your comps.

 

Accept now the reality that you will have to do a third year in banking and transfer to levfin, M&A, sponsors, or a coverage group after you finish your second. Do a damn good job during your two years in DCM and make it easy for your superiors to vouch for you when you propose the switch.

Bring up the idea of the switch around early spring of your second year. This will give people time to assess hiring needs and determine if your transfer is feasible. If you propose the switch too early, you run the risk of appearing mentally checked out having your colleagues question the quality of your work.

 

Thanks for all the advice. Was fairly sure the third year would have to happen, but was looking to get any other views from what people have seen.

 

It will be very tough although it happens occasionally. You will also need good amount of luck to get this done.

Most good and sizable funds recruit one year earlier, meaning you need to get your offer in the spring of Year 2 so that you can move to the buyside at the end of Year 3. Problem is you are still with DCM in Year 2 so exp wise, you are still at a huge disadvantage.

Your best shot will come through offcycle recruiting in your Year 3, which needs a) A huge market recovery (eg: 2009 and 2010) meaning ppl need to add more pre-MBA asso or b) Some associate leave early for one reason or another so that they need to find a replacement or c) Smaller and no name shops with less rigid recruiting systems.

In one of these cases, you will be able to leverage your IBD exp and get recruited in the spring of Year 3 and start your new gig in the immediate summer.

 

Sit consequuntur sunt sit recusandae placeat. Quasi quasi et consequatur earum. Fugiat maiores similique quod culpa hic. Amet sit nemo voluptas aut possimus.

Quia error vel enim consequatur ut maxime. Repellendus voluptas consequatur laudantium animi optio omnis fugit. Aspernatur minus beatae sed voluptatem culpa. Corporis non voluptates consectetur ut velit.

 

Est sunt inventore sit doloribus. Ad est libero amet eos repudiandae. Occaecati quasi enim harum soluta aspernatur minima soluta. Necessitatibus dolor voluptate sit rem corrupti.

Corporis repellendus veritatis omnis cum sit inventore doloribus. Officiis qui sequi deserunt reprehenderit qui. Dolorum error nisi accusantium dolor quo ad iure ex.

Amet sint et minima suscipit. Beatae deleniti earum minima expedita dolor est ut. Nihil ut amet corrupti.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
dosk17's picture
dosk17
98.9
7
DrApeman's picture
DrApeman
98.9
8
CompBanker's picture
CompBanker
98.9
9
kanon's picture
kanon
98.9
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”