Why have product teams at Banks whose industry teams do most of the modelling?

Sorry about the potentially dumb question. I’m aware that certain banks like Barclays has most of its M&A modelling performed by its industry teams for instance. What is the point then of having a M&A product team?

What I suspected was that certain industries are simply more likely to see certain types of transactions (I.e. maybe most healthcare transactions involve raising debt to research a new drug so it makes sense that the healthcare team would do most of the DCM work for instance) and then the other product teams would be able to perform the modelling for less common deals in that sector. Is that right?

Thanks a lot guys, hope you’re all doing well. Plz learned my ass before I make a fool out of myself at my internship.

 
Most Helpful

M&A, not sure since my bank's product team does most of it.

ECM/DCM often specialize to provide a better product than coverage could themselves. For example, my bank has a DCM team that provides solutions to lower interest rate and currency risk - a coverage team would be spreading itself too thin to worry about areas of expertise like this. Same thing goes for the convertible bonds group in ECM... converts are pretty niche and it doesn't make sense for coverage bankers to be worried about a unique product, another model, black scholes math, etc.

tldr; ECM/DCM provide a more holistic solution than a coverage team could provide on their own (due to their product expertise). Just like M&A.

 

If anything is complex the product team will own the model

 

Eum libero neque iusto accusamus expedita. In eaque molestiae sunt sit aut adipisci quasi. Vero rem repudiandae et quia eos quaerat voluptas non.

Inventore vel ipsum deserunt nisi magni vitae ut. Optio quis illo quos enim enim et et ut. Maxime earum est consequatur et laborum ratione eum dicta. Modi odit maxime quae ut laborum.

Tenetur consequatur perferendis occaecati dolorem commodi magni. Unde vero tempora ea sit. Voluptatibus in et fugit fugit quisquam est distinctio.

Career Advancement Opportunities

April 2024 Investment Banking

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

Overall Employee Satisfaction

April 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

April 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

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $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
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
kanon's picture
kanon
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
bolo up's picture
bolo up
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...”