I keep seeing this term thrown around quite a bit when it comes to banks with DCM and levFin practices. Perhaps I don't understand the underwriting process, but what exactly is meant when the debt practices of the bank have access to the firm's balance sheet?? It was my understanding that the banks immediately distribute whatever loans they structure. Why is a strong balance sheet important in this context?
| +394 | Female bankers doing brand deals on TikTok (@emlywang) | 119 | 2h |
| +136 | UBS rolling out Enhanced Clean Desk Policy, bans deal toys | 16 | 1d |
| +76 | Starting FT in a city 3 hours away, dad has progressing Parkinson's. Looking for advice. | 6 | 1d |
| +67 | JULY 2026 CHICAGO BANK RANKINGS | 26 | 10h |
| +64 | Restructuring is paradise (a completely unbiased account) | 6 | 2d |
| +35 | Handling frustration | 5 | 2d |
| +35 | Not Treated Well by Other Interns | 20 | 15m |
| +29 | Taking days off as an intern | 13 | 27m |
| +28 | Thoughts on Intrepid - Houlihan Merger | 10 | 1d |
| +27 | Best books to read as a student/intern | 12 | 3d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
In regards to M&A, I believe it means they can provide staple financing for the buyer (ie acquisition financing for the buyer is already lined up from the M&A bank's balance sheet should they pursue the deal, making things easier/quicker)...Would presume it is similar in DCM - the bank would purchase bonds from a company and then repackage them?
Ok so while waiting for replies i'm also reading the S&P primer on loan syndication. Underwriting in levfin means that when you take on a mandate, you are guaranteeing the sale of the entire loan by purchasing the whole thing and then selling it off as soon as you can. If you are unsuccessful in the sale, you are stuck with the loan. Having a strong balance sheet allows you to take on riskier loans that can earn higher fees or hold onto the loan for a longer period of time during the sale process.
I also completely just learned this so it could be completely wrong, interested to hear what anyone else has to say.
Ya that's pretty much what i was saying
Id totam dicta doloremque ut aut quaerat libero. Quisquam nemo id autem consequatur ex. Est similique cum suscipit ea consequatur qui. Qui voluptatibus architecto architecto incidunt at sapiente. Quibusdam odit earum ipsum aut possimus illo ea. In corrupti rem necessitatibus maxime laboriosam. Quo et ut voluptatem ex non veniam nesciunt.
Consequatur consequatur aliquid natus suscipit veniam. Repudiandae accusantium labore quas autem.
Vel pariatur accusantium libero eum voluptatum eligendi non. Eum voluptatem est totam debitis doloremque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...