Is DCM useless?
Recently accepted a summer analyst position at BB in DCM, but rhetoric on WSO is making me regret my decision. Is DCM useless? Are there really no exit opportunities? I'm personally starting to get really interested in sustainable finance and VC, and for SusFi, DCM seemed like a good place to be (just based on logically thinking about green bonds and S&I bonds, speaking to people in sustainable/ESG AM, etc.) but WSO makes it seem like DCM = death to your career. I'm not really sure if what I'm interested in now is what I want to do for the rest of my life, so I would rather not cut myself off from opportunities moving forward -> would it be better to try recruiting for an IB summer position (even though boutiques are all that's left)?
on wso all the m&a and coverage analysts want you to be as miserable as them so they tell you to do m&a and coverage because its “the golden path” to justify why they are working insane hours for a cushy corporate job. All jokes aside, some people are built for that, and some want to work a little less and get paid a little less and go the capital markets route with ECM & DCM, and thereby limit their exits to buyside capital markets, (in your case) credit funds and treasury roles. It is a trade off, think about what you value the most and don’t let this forum convince you otherwise because it seems like you already know what you are getting into. If you are deadset on PE or a HF, then go for M&A or coverage because you understand how recruiting works for traditional corp fin. buyside roles. If you value having a life during your golden years and still making good money, then go for ECM and DCM. You can always switch positions later or rebrand with an MBA it is not like you are fucked if you choose one or the other and want to change.
tldr: if you are regretting choosing your job because WSO says it is unprestigious then you need to tune everyone out except your own goals.
I think this was what I needed to hear most tbh - I just want to make sure I'm not pigeonholing myself too early on, especially since it's a summer analyst job
The only thing that pigeonholes people is their own mindset. A person can switch careers, product groups, sector groups etc., whenever, as long as they have a true interest in the next role.
I worked in DCM at a BB and analysts exited to credit funds and corporate finance all the time. Saw 1 go to corp dev as well. No buy side exits tho.
Comp is the same at analysts and associate level, slight less at VP and MD. I came to coverage cause I realized I want to do PE, but DCM is such a solid lifestyle group with good money
Anything that doesn't take you to MF PE is useless on WSO.
If DCM / ECM were actually useless, there would be no such groups on the street.
I don’t think people understand that DCM is an essential part of most investment banking deals.
-coming from a coverage analyst
Echoing others, it isn’t a death knell…. But do people really call Sustainable Finance ‘SusFi’ loool
Relax, I went from public finance which is often considered the red headed step child of investment banking (sits within DCM a lot of times), to LevFin, to PE. Just learn the interview modeling technicals on your own, get case studies from friends to practice, and get to where you want to be! Trust me, a lot of your peers won't be doing THAT much modeling (group dependent so don't MS me if you model all day). The fact that you're at a BB already helps a ton and if you decide to be a career banker, capital markets is where I would want to be personally.
I used to work in DCM at a BB before switching to the coverage side. DCM will usually give you better lifestyle, culture, and more responsibility (on live deals and client engagements). On the other hand, IG bond issuances are boring and your "product expertise" is basically providing market updates and views on rate movement (hint: the views tend to be whatever will bring in more fees). At the junior levels, have see exits to credit HF/AM roles with the occasional sector relevant PE (FIG DCM to FIG buyouts).
Switching from DCM to coverage is a fairly straightforward process, especially at the A2A stage given so many analysts leave by this time. Have seem many product bankers switch to coverage/M&A after analyst stint...and land buyside gigs shortly after.
My advice would be to express interest in tech/ESG early on to your group to see if you can focus on that formally or informally. I think some banks have ESG specific groups as well, something to think about for the future.
SusFi lol
Susfi vented
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