DCM vs. Equity Research

11y

I can say ER is very stable (relative to IB and S&T). Departments are fairly lean, and generally generate stable profits. They also facilitate IB & S&T business. Customer contact is very good - an analyst might spend 60-70% of his day on the phone with clients. As an associate, you would start with near 0 contact, then ramp up over a few years.

DCM, as I perceive it, doesn't really fit in anywhere. You understand debt, but not as well as a credit analyst. You have client contact, but typically as an intermediary.

I might be biased, but I'd take ER every day of the week. Better hours too - 7 to 7 is standard.

Authored by: Certified Equity Research Professional - 2nd Year AssociateCertified Equity Research Pro

oreos

Human

11y

How the eff does ER generate profits? That said, I love debt, find it facinating, but i would choose ER anyday.

"After you work on Wall Street it’s a choice, would you rather work at McDonalds or on the sell-side? I would choose McDonalds over the sell-side.” - David Tepper

BTbanker

11y

Oreos:
How the eff does ER generate profits?

Indirectly through those who execute the trades based on the research. But, I guess you could say that the guys in the printing department are crucial for pitch books, which generate revenue. Or a janitor that cleans a sticky keyboard, so a trader doesn't enter the wrong amount of shares.

West Coast rainmaker

11y

Best Response

BTbanker:
Oreos:
How the eff does ER generate profits?
Indirectly through those who execute the trades based on the research. But, I guess you could say that the guys in the printing department are crucial for pitch books, which generate revenue. Or a janitor that cleans a sticky keyboard, so a trader doesn't enter the wrong amount of shares.

It also helps IBD win business - executives love it if you have an II ranked analyst covering their company.

And then you also have rare cases where research is bought directly, although this mostly applies to independent shops.

Authored by: Certified Equity Research Professional - 2nd Year AssociateCertified Equity Research Pro

BTbanker

11y

West Coast rainmaker:
BTbanker:
Oreos:
How the eff does ER generate profits?
Indirectly through those who execute the trades based on the research. But, I guess you could say that the guys in the printing department are crucial for pitch books, which generate revenue. Or a janitor that cleans a sticky keyboard, so a trader doesn't enter the wrong amount of shares.

It also helps IBD win business - executives love it if you have an II ranked analyst covering their company.

And then you also have rare cases where research is bought directly, although this mostly applies to independent shops.

Let's just agree that it's FO and extremely important for the financial services industry.

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hihowru

Monkey

11y

How do exit opportunities compare? Possibilities to switch to buy-side from ER/DCM?

I know many DCM bankers switching to bank treasuries, and ER should place in AM/HF, is this correct?

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bearing

Neanderthal

11y

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