BB Leveraged Finance

Just The Tip's picture
Rank: Orangutan | 305

I hear a lot about the major powerhouses in investment banking (GS/MS/JPM) and I saw an article the other day which sparked this thread about JPM LevFin being one of the most prestigious jobs in the world of finance. So I dug a bit deeper and pretty much everywhere I read also mentioned how in the world of LevFin, JPM rules. I am aware JPM LevFin does the modelling themselves where as most other banks outsource the modelling to coverage/sector teams.. but I was wondering if anyone had any idea as to what it would be like to work in LevFin at a place like JPM or other bulge brackets, what the hours are like (do you start early in the morning/work until early hours of the morning like in M&A during the weekdays and are you required to work during the weekend considering in DCM you rarely do), how it compares to M&A or sector/coverage teams, is levfin more capital markets based or corporate finance based, is there as much travel in LevFin as there is in M&A, are there different teams within LevFin?

Thanks!

Comments (22)

May 14, 2017

bump

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Best Response
May 14, 2017

The hours are broadly comparable to other parts of the IBD. The hours can be long, but the workload is unpredictable. You could get a call on Thursday from a client saying they want a package by close of play on Friday. It's the nature of investment banking.

That said, we're making a conscious effort to not keep people in the office unnecessarily - to that end, initiatives exist like protected weekends. To give an example, we recently had an e-mail from a senior banker on Friday evening noting that there were too many juniors in the office and we should tell them to leave. We take it very seriously.

The key is not to stay in the office unnecessarily. There's a lot of activity now, but we've just come out of a very slow period. We don't want to keep people in the office if they don't need to be here, and it's up to everyone to be sensible about their schedules and to catch their breath when they can.

Hope this helps.

Jamie

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May 14, 2017

Would love to hear what your day to day is like. Is it more markets based than other groups at your bank?

May 14, 2017

Because I haven't started the job yet, I can only tell you what my summer experience was like (I do believe there's a difference between the experience of a SA and that of a full-time). I don't know if my group was more market-driven than others, but overall because the group deals with high-yield bond and leveraged loans, we followed closely the overall market conditions and Fed's decision to raise the interest rate over the summer. I felt like it was the typical SA experience many have depicted in their posts on this forum but probably had more modeling experience than my peers at other groups.

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May 14, 2017

What advice would you have for something that would be trying to lateral from an operations SA to a full time offer in leveraged finance.

May 14, 2017

Hey man, I think it's gonna be very challenging but still doable. All of the incoming analysts (my class) were selected from the SA program. However, I do know someone in the group, a 2nd year analyst who made the transition from a credit risk program within the bank. I think it involves a lot of networking, and also because the nature of his previous job (credit analysis) got him the offer in lev fin.

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May 14, 2017

Einstein_WSP, congrats on your FT offer and thanks for doing this! Just a few questions:

What about Lev Fin originally piqued your interest?
What resources would you recommend to prepare for Lev Fin interviews?

Thanks again, and looking forward to hearing from you.

May 14, 2017

No problem! What piqued my interest about lev fin is the modeling experience. I can't speak for others but I do believe both groups in M&A and lev fin offer you the most modeling experience. I thought it was gonna be a more rewarding and challenging role where I could begin to learn somewhat more sophisticated knowledge in finance (other than just turning comments all day!) Therefore, it came down to either one of the two. I think the analysts in lev fin that I had met through networking certainly helped me to go with the group. I could myself working with them over a long period of time, so I thought I'd give a shot.

One resource I found very helpful in getting me prepared for the interview was the investment banking book written by J. Rosenbaum and J. Pearl, specifically the LBO section.

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May 14, 2017

IU, BAML

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May 14, 2017

Hey OP, thanks for doing this. I'm not sure if you're the right person to ask this question but I was wondering whether you've seen anybody in you incoming analyst class who came in with work experience instead of going through the SA? Have you seen any master's students in your SA class?

May 14, 2017

Wow, interns doing AMA's...

May 14, 2017

lol this. Next is "Just scored a phone interview with a Top BB (GS / MS) from a non-target, AMA!"

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May 14, 2017

Since you're a December grad, did you take a extra semester or graduate a semester early? The reason I ask is because I've been considering taking an extra semester just to try my luck with recruiting next fall, but wasn't sure how much of a negative impact it would have.

May 14, 2017

Also curious whether you graduated a semester early or late, and also interested to hear what your plans are for your semester off. I'm probably graduating early and weighing options for the semester before FT (Europe, South America, internship, etc.).

May 14, 2017

I am also a December grad from a target school going to a BB for Lev Fin. If you really mean just JPM/BAML then its a 50% shot I know you.

May 14, 2017

Most likely BAML. Because I know for a fact that JPM LevFin does not model (unless you consider making cap tables and doing basic sources & uses as "modeling").

To the OP: could you talk more about how the work is split between LevFin and the respective coverage group in an M&A/bond financing deal?

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May 14, 2017

Depends on what BB and what MM.

Are you are SA or FT hire? I thought most BB and even most MM firms were done hiring.

If you are SA, just go to the BB. If you are FT there might be more to think about, (bonus, deal flow, exit ops, etc.)

May 14, 2017

buy-side > sell-side. either way you're going to get the modeling experience. making principal investments is much more analytical.

May 14, 2017
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May 14, 2017