MM Coverage —> Cap Markets?
Hey guys - I've been on the desk for ~3 weeks for my SA in a MM Coverage group at an HL/Lincoln/Piper. I've had previous IB experience in a different MM coverage group so I have a good idea of what the workload is like. I've always had thoughts of jumping to the buyside but recently I've realized that it may not be all that it's talked up to on the forum. Which leaves me to either being a banking lifer or hopping to another industry with lower pay.
There is one path that sticks out to me, which is the MM debt advisory/levfin/cap markets path. I see these guys in my office leave at 7 consistently, have a great WLB, and make the same money as the juniors in sweaty groups. Why wouldn't anyone want to be a part of this team? Yes, the pay drops off as you get more senior but the difference between 500k vs. 1m in pay as a MD is inconsequential to me.
Is there anything I'm missing here?
Bump
You hit the nail on the head. I'd say there are 2 factors to consider:
1) "Prestige" - people want the most desired roles which offer optionality / the highest earning capacity (i.e. PE). Seems like that difference in comp isn't worth it for you, so can ignore.
2) Type of work - I hear people in Cap Markets often complain about how "repetitive" the work is, especially at a junior level. Having done a DCM internship I get that, but Coverage/M&A isn't something revolutionary either. LevFin doesn't exactly leave at 7pm at most places though, often can be very sweaty.
Remember to do what you are interested in/want in your life. It's your life, not someone else's.
Bump. Anyone who works in a MM debt advisory group??
I'll caution you that leaving at 7 every day is not the usual DCM/levfin lifestyle... the current rate environment has totally driven activity off a cliff. These guys (+ECM) were getting absolutely grinded in 2021, my product guys were working 90 hour weeks - as soon as M&A picks back up they'll be busy again. Coverage is inherently more hours but DCM/ECM is not like this magic loophole of a 50 hour week. Lev fin in particular can be pretty sweaty, and even DCM is not like a consistent 9-7. You also need to be in at like 7am every day - can expect 70+ hour weeks as a baseline.
Kind of bank/group dependent here but at my BB, cap markets team get paid the same base but bonus is a pretty significant discount to any of the IB groups
Lots of people love cap markets and stick around, but you need to be eyes wide open on realistic hours and comp
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