BB DCM Analyst
Have an interview coming up, was wondering what the typical tasks a DCM analyst does at a BB. Also, was wondering what the main characteristics/ qualities of a DCM analyst would have to be. Thanks
As a junior-level banker in this group, you’re responsible for three main tasks:
Pitching clients and potential clients on debt issuances and answering their questions. Executing debt issuances for clients. Responding to requests from other groups, updating market slides, and creating case studies of recent deals.
Example: As a specific example of task #1, a company might come to you and say:
“We have $500 million of debt maturing in 5 years. Interest rates have fallen, so we think we could ‘refinance’ by raising new debt at a lower interest rate and using the proceeds to repay the existing issuance.
However, we’d also have to pay a prepayment penalty fee if we do that. Does this plan make sense? What terms could we get on the new debt? What interest rate is necessary for us to come out ahead?”
On the execution side – task #2 – much of your work will consist of drafting memos for internal committees and sales teams.
These memos help get your bank comfortable with deals and provide the sales force with the numbers and analysis they need to ‘sell’ the offerings to institutional investors.
Finally, you will also spend a fair amount of time answering requests from industry and product groups, updating market slides, and creating case studies of recent debt deals.
There is some quantitative and financial modeling work, but it is usually not as in-depth as you might think.
DCM tends to be a higher-volume, lower-margin business than ECM.
The global credit markets are far bigger than the global equity markets, there are more deals, and the deals happen more quickly – days rather than weeks or months.
As a result, investment banks charge lower fees than they do for, say, IPOs, and they have to make up for it with higher deal flow.
Disclaimer; It took me 30 seconds to google the above. The above is not my work.
Yea, I can see you copy pasted from mergers&Inquisitions. I was kinda wondering if someone could share their own experience and something a little more exact, since those answers seem a little vague for an interview response... idk Thanks for the help anyways.
Thank you, Very Helpful
Just be good with power point formatting, shortcuts and print everything to double-check before you give someone to review.
Ex-DCM intern at a BB here. Nothing you'll do will ever be complicated just lots of small executional tasks. Be prepared to pull ratings reports and performing random research tasks.
Things might be hard initially but that's just a product of you learning a new job and being asked to do lots of small things. High degree of breadth but no depth is how I would describe DCM at the junior level.
Hey, I'm a Credit Risk intern at BB, and have a summer analyst interview for DCM (BB) coming up. Any tips on what I should prepare (technically) other than knowing Fixed Income very well, and a few large bond offerings that the bank has issued in the past? Also, would you say Credit Risk at BB is a good thing to have on resume for a DCM interview? Thanks!
Great, thanks
be prepared for your MD to ask you for retardedly obscure debt comp sets that you won't be able to find (ask BBG and factset to help - they won't be able to find it either) based on books done years ago
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