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!

Comments (14)

Jan 29, 2018

bump

Jan 29, 2018

Bump

Best Response
Mar 10, 2018

Admittedly I don't have much knowledge on this, but as far as I'm aware BMO/CIBC are the only Canadian banks that have a leveraged finance business in Canada (TD and RBC lev fin teams are based out of NY).

For undergrad recruiting it depends on the bank, but I've seen S&T recruits thrown into DCM.

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Jan 29, 2018

Thanks for the reply! Do you know how many SAs or FTs banks usually hire either for DCM or LevFin?

Nov 19, 2018

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).

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Mar 19, 2019

Very high quality response, thank you!

Mar 19, 2018

I can confirm that BMO has a High Yield & Lev Fin group and TD's lev fin is based out in NY. BMO's HY & LevFin arm is very small and has a team of 3-4 people in the Toronto office. They usually take 1 SA and 1 FT or none each year, depending on capacity. However, maybe someone can shed more light on RBC as I thought they did have a lev fin group in Toronto...

Mar 19, 2018

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?

Mar 10, 2018

99% sure that the Toronto mezz team is focused on mid-market clients. RBC has a strong financial sponsors business in the US hence levfin team being situated in NYC (to answer your question, yes they are seperate from the 'typical' group).

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Jan 29, 2018

I'm still a second year undergrad. I'm just trying to find out more because I find LevFin and DCM more interesting than M&A etc.

Nov 19, 2018

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.

Mar 20, 2019

I've seen someone at the RBC mezz team but it isn't houssed under RBC CM. i have also heard the BMO lev fin team is small.

Mar 20, 2019

BALM have a DCM practice that isnt housed under banking. BMO DCM & Lev Fin is under banking. RBC LevFin/Syndications is under banking but RBC DCM is trading floor

Mar 20, 2019
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