DCM and LevFin in Canada

Hi guys,

I'm really interested in Debt Capital Markets and Leveraged Finance in Canada and I was wondering if you guys could give any insight about it. How big are the teams for each, comp, exit ops, etc? I assume mostly the Big5 banks have teams in Canada, or do BBs in Canada do too? And lastly, what's recruiting like for these roles out of undergrad?

Thanks!

 

BMO has two groups - sponsor coverage, which does mid market leveraged loans and rolls out of their commercial group and they have lev fin in capital markets which deals with US TLBs. They also have a BMO Capital Partners group that does sub/mezz debt for the mid-market. CIBC has a leveraged finance group that rolls out of commercial as well, but they do leveraged loans of all sizes (on their balance sheet, they don't arrange TLBs) and also do sub/mezz debt on the same platform. They do not have a capital markets leveraged finance group that arranges TLBs in Canada (this is covered out of their DCM desk in NYC). RBC has a mid-market leveraged finance group that deals with Canadian leveraged loans (but they don't get on nearly as many deals as BMO/CIBC) and a mezzanine group that does sub/mezz debt. CIBC is the only platform that unifies their senior leveraged loans and sub debt offering. There is no Canadian TLB market to speak of, so capital markets lev fin is very limited in Canada (high yield bonds roll in under DCM, but again that's a tiny market in Canada).

 

I saw RBC is trying to hire an associate for their mezzanine team. Is that a separate team from the typical LevFin?

What's the typical LevFin or domestic high yield volume in Canada? I bet the likes of BMO and CIBC that maintain a desk on the group primarily serve middle market clients/transactions given the typical deal size in Canada.

Alphaoneone - what's your background? Are you looking to join an analyst or associate?

 

Hey I can shed some light on this - I work in the mid-market LevFin/Sponsor coverage group at one of the Big 5 banks in Toronto. We typically look at PE-backed leveraged buyouts in the mid-market space. As we only deploy senior or subordinated loans, larger PE deals and transactions that require access to public capital are covered by our Corporate Banking/DCM group. First year Analyst comp is 75-85k base with bonus of 20-30%.

Hope this helps.

 

Voluptatum et beatae aut enim suscipit laudantium. Illo aspernatur nostrum libero qui. Ipsam voluptas non voluptates commodi alias illo esse.

Career Advancement Opportunities

March 2024 Investment Banking

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

Overall Employee Satisfaction

March 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

March 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

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $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
dosk17's picture
dosk17
98.9
6
DrApeman's picture
DrApeman
98.9
7
kanon's picture
kanon
98.9
8
CompBanker's picture
CompBanker
98.9
9
GameTheory's picture
GameTheory
98.9
10
Jamoldo's picture
Jamoldo
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...”