Books for interview prep in debt capital markets (at least capital markets related)

mott's picture
Rank: Senior Monkey | banana points 78

Hi

I am currently applying to various banks to land a full-time offer or a trainee position in the field of debt capital markets. Therefore I am looking for some interview prep books which cover the relevant material, especially HOW something is done in real life.
The reason for this is that during my preparation time for an off cycle internship, I recognized that the stuff you learn during school is too "theoretical" and is just done differently in real life.

Because DCM is often not as popular as M&A I cannot find good book recommendations.

So I would like to ask you guys, if you have any suggestions for me of books covering debt capital markets (or at least capital markets)
Thanks in advance, and regards,

mott

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Comments (21)

Jul 4, 2012

search capital markets or bonds, mbs, etc. on Amazon. Tons of shit comes up

Jul 5, 2012

Hi,
thanks for your comment. But to be honest, I do not find any books that sound like the typical "IB M&A Interview prep" books which are written not for M&A but for the capital markets...
Do you have a certain book in mind?

Jul 4, 2012

wellto start off I'd just pick up a book on the different products on fixed income. Know them well so you can learn how they can express different opinions on interest rates.

After that you can start going into the dyanmics of the market.

Jul 6, 2012

The same type of stuff covered in other m&a guides will be very similar. Vault guide to PE and HFs might have some helpful sections too that cover leverage. It also depends on the group. At large banks DCM might be more syndicate oriented and you could be working on different types of debt, vs a smaller bank or debt focused shop where you'd probably focus on middle market companies issuing high yield or bank loans.

This primer on leveraged loans has a lot of good information and beyond the similarities to syndicating a bond deal, it's helpful for knowing the context of different financing alternatives when companies are levering up https://www.lcdcomps.com/d/pdf/LoanMarketguide.pdf

Jul 8, 2012

Get a book on doing lots of pitching. Oh, wait, there aren't any of those.

Fabozzi will help, but really, DCM is just a lot of pitching. Understanding bonds helps, I guess.

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Oct 27, 2012

Bump.

Anyone who can recommend any good DCM book/resources?

Oct 27, 2012

There's no book on how to "do" DCM, people. Understand bonds -- how they are priced (spread over Treasuries), duration, price/yield relationship, etc... -- and the macro environment. But no book is going to tell you what a pricing call is like or what type of things to put in a pitchbook.

Oct 27, 2012

I see, thanks for the reply.

Oct 27, 2012

Handbook of Fixed Income Securities by Fabozzi

Oct 27, 2012
Stryfe:

Handbook of Fixed Income Securities by Fabozzi

I second this.

"Money doesn't talk, it swears." -Bob Dylan

Oct 27, 2012

Maybe you meant 'Treasury Bond Basis' by Burghardt, which is specifically focused on US Treasury futures. It's an excellent book with numerous instructional trading examples, but not exactly an introduction to bond math basics. You don't need a lot of prerequisites: any introductory chapter on bonds will do, or just look up a bond math primer through google.

Fabozzi seems to be the standard reference text, but maybe not necessarily the best to learn from. He's written and co-authored dozens of books for fixed income and a lot of the material is recycled from earlier books. Some of the chapters on FI products may be outdated, while other chapters may be written purely from an academic point of view.

Personally find Tuckman's Fixed Income Securities to be a comprehensive intro textbook, though admittedly I've used it only as a reference. It's more technical in nature than Fabozzi, but has a blend of basic theory and instructional trading examples. Book develops the chapters in a logical manner as well, for example within the FI product section it introduces repo before discussing bond forwards then proceeds to bond futures.

Depends on what you're looking to do I guess. I believe the bond basis book is almost required reading on a rates market making desk. If you're still in school or something, don't know, just read up on whatever interests you I guess.

Oct 27, 2012

If you want something more conceptual/applicable to life in a LevFin group, go read Leveraged Financial Markets by Maxwell.

You can find the pdf online for free.

Its quite good, much shorter than Fabozzi, and probably more targeted toward what you are looking for.

Oct 27, 2012

Interested, buy having trouble finding a pdf online for free of Leveraged Financial Markets. Anyone have success?

Oct 27, 2012
Texas Tea:

Interested, buy having trouble finding a pdf online for free of Leveraged Financial Markets. Anyone have success?

Also interested.

Oct 27, 2012

If you're interested in HY/distressed, How to Make Money with Junk Bonds is a good first read and then clearly Distressed Debt Analysis is a step above that.

Oct 27, 2012

Dont worry the job isnt what u think

Oct 27, 2012

Ppl are Going to say fabozzi but the job has nothing to do w the contents of those books

Oct 27, 2012
Oct 1, 2017