BB DCM Analyst

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.