Is DCM as competitive?
Coming from Coverage and really interested in the product group. Have been networking with my internal DCM team and they’re all telling me to check back post-bonus. Don’t know if they’re just blowing me off but really wanna know if there’s a realistic chance here?
Haven’t even had the conversation with my MD regarding internal transfer, so any input on when/how to approach this with him would be greatly appreciated (I was thinking during upcoming pay conversations where bonus is communicated)
Based on the most helpful WSO content, Debt Capital Markets (DCM) is indeed competitive, but it's generally perceived as less selective compared to M&A groups. Here's what you need to know:
Regarding your interest in transferring internally to DCM and the feedback you've received to check back post-bonus, it's not uncommon for teams to suggest this timing. It could be due to several reasons:
As for approaching your MD about the internal transfer, here's a suggested approach:
Remember, internal networking is key, so continue to build relationships within the DCM team. This will not only help you gauge the team's interest in your profile but also potentially advocate for you when the time comes for an internal move.
Sources: BB Debt Capital Markets - Exit Opps / Comp, BB Debt Capital Markets - Exit Opps / Comp, DCM Path, Debt Capital Markets - Is it IB?, Product Groups (LevFin, SPG, DCM) Comp 2021
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It depends on who told you to check back... if it was the intern or the grad - take it with a pinch of salt. If it was one of the MDs, then I would generally take them seriously.
Coverage to DCM can happen. We always remember the helpful coverage bankers and for frequent borrowers the two roles can overlap a bit, so the skill sets aren't worlds apart.
I wouldn't approach your MD until after you've checked back with DCM personally. It could all be a storm in a teacup and there may be a hiring freeze / some other unforeseen factor which means that even if DCM management liked you, it's not going to happen.
Thank you. I appreciate your input. Everyone I’ve networked with thus far (assoc, MD, and VP) all told me to check back post-bonus, which is coming up in a couple weeks. They also told me that there’s a possibility that management may decide to just survive losing analysts (if that happens, who knows in this environment) and wait for the incoming grads in August. So sounds like I’m pretty screwed either way
I'd say it very much is. Even looking at relationship managers I appreciate what they do. But they haven't got a shred of a clue about debt execution.
Would re think DCM I came from that group and it can get very boring quickly
It is competitive and because a lot of the questions aren’t from the guide I found the interview to be a bit more challenging than a standard IB interview.
Think people need to be careful with DCM. Used to be more known as a “lifestyle” group but more and more banks are transitioning towards having their coverage teams only covering M&A. Due to this, you have DCM teams essentially taking over a huge portion of “traditional coverage responsibilities.” This wouldn’t be a problem if you were, 1. Paid like a coverage analyst (DCM pay is typically slightly lower), 2. Had similar exit opps, 3. Didn’t have to come into the office at 7:00am. Additionally, many of these teams run extremely lean, so you’re constantly getting buried. To transition into DCM might not be a bad idea, but those with no IB experience should definitely think twice about getting stuck in capital markets.
Second this. To be honest with you after interviewing with a DCM group they did not come off as a lifestyle group. The work is extremely fast pace so you need to pick up quickly. Your previous experience isn’t as transferable so the learning curve is still there. I spoke to someone in DCM and he said he’s being worked 80-90 hours a week at a BB. Comp is still good, he said it was the same across the other product groups.
Don't know if you're high or your bank sucks. At least at our bank that's always been the relationship managers responsibility. They need to know the products that they can offer to clients.
At that point that's a horrible process from the client perspective. Imagine a banker that can't pitch the necessary products to the client.
I'm questioning your IQ as an analyst
How about transitioning from LevFin to DCM at the Analyst /Asso level? I imagine DCM to be far less complex, so should be doable. But does it happen often or rather rare? Thank you
Are you in the industry? sounds autistic
Fuku thank you for graciously sharing some of your knowledge and gifting us with your thoughtful insights!
You continue to demonstrate that even when there is a view that nothing more can said / nor value added unique people like you can continue to detract from a conversation and lower the average overall IQ of any discussion… thanks for being you Fuku!
Fuku Fuku :)
I've seen it happen several times at my bank at the analyst level. These types of internal transfers are doable if you talk to the right people. It's not uncommon to see juniors change products and coverage internally. Relationships and timing/patience are key though.
If you want to move to a different bank and go from LevFin to DCM, it'd be trickier but still doable depending on the competitiveness of the lateral market. The sooner you do it, the better.
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