DCM Analyst Interview - HELPP
Hello people,
I have an interview for DCM Analyst at a relatively small IB. I have a few question and would really appreciate if someone could help me. I am relatively new to this.
Firstly, they told me this position they are dealing with HY Euro bonds and IR derivatives - What's the best way of preparing the technical side? Apart from basic stuff what else should I know?
Second, How much financial "modelling" should I learn? On the phone interview they told me I should know modelling of financing, refinancing and hedging opportunities.
And lastly, they also said I'll be "researching industries, companies and comparable transactions" for providing structuring advice. What does this mean and how should I prepare?
I know it's a lot of questions, but my interview is in a few days and I'm freaaakkkkking out.
Thanks, Jenna
You are helping companies raise/issue debt, so you need to look into how credit worthy they are. The modeling will require you to understand how cash flows work and you should know certain ratios (quick ratio, coverage ratio, leverage ratio, z score) how to get them and what they mean. You will have to research similar companies to compare your modeling to and compare issues (transactions) to. Know where all the major rates are at, how bond indicies have been moving (check out the bloomberg ones) and know where current events fit in to this area.
Thanks for the help. Can you tell me what exactly you mean by how cash flow works? what should I learn specifically.
I wouldn't worry about modeling. Focus on comps, where spreads are at in the markets, trends (tightening) etc. Just know everything there is to know about bond math, duration, and how to approximate their prices in your head (given certain situations).
Thanks!! Xo
DCM Investment Banking Interview (Originally Posted: 10/27/2012)
Hi,
I recently went for an interview for a role in the debt capital markets origination team of a reputed investment bank. The person who took my interview has asked me to make two teasers of any two companies of my choice. Each teaser should be 2 pages max. One company should be levered and the other should be unlevered. Both should have a AA rating at least. He said that it should be made from a perspective of pitching to mutual funds to invest in the bond issues of these companies. I am slightly confused as to how to go about this. What kind of information do you think my teaser should contain? Plus, are there even companies which are completely unlevered. Also, is he implying a hypothetical situation where the companies have not issuing debt, but if they would then this is what I would have to make. Or, does he want me to make teasers on companies that are actually issuing debt in the near future or now? Any kind of help would be highly appreciated. Thank you.
Your teaser should contain their rating and any relevant metrics. I'm almost certain that Moody's and S&P post their rating criteria, they may even have a spreadsheet where you can plug in all your relevant information and it'll spit back out a rating based on their formulas. So then once you have the rating you find the metrics for similarly rated companies and compare your companies to those. You want to highlight the areas where your company outperforms the other companies of the same rating. That'll be a good reason for a mutual fund to invest in your company as opposed to a 'weaker' one for the same yield. That's how I would go about it.
For levered, use Microsoft, GE Corp (not Capital!) or Johnson and Johnson (believe they are AA). Unlevered...Apple? But not sure if they are even rated given they have no debt.
Is this really for a reputable bank? How old are you / what is your exp level? Frankly this is a ridiculous and unnecessary exercise.
I completely agree. Is this for a 1st year analyst gig in the US? Seems a bit much.
Also, like mrb mentioned you aren't really going to find a rating for a company with no debt because there would be no point for the ratings agency to issue one. You can find one with very little debt and use that as your unlevered.
Check the post about stock pitches and build on that. I think it was posted 2 days ago.
Moody's and S&P ratings. Coupon rate. Available FCF to service interest payments. Debt/EBITDA. Maybe performance of bonds from similar companies in industry. Company's story. Outstanding debt on the company's balance sheet.
This is a weird ask. They shouldn't expect you to know this stuff unless you have previous experience in LevFin.
Here you go http://www.scribd.com/doc/79691190/HY-One-Pagers-Goldman-Sachs
Debt Capital Market Analyst interview at BB (Originally Posted: 02/25/2011)
Hi all,
I got a 1st round FT DCM analyst at BB next week. I was wondering what kind of questions should I expect for the interview. Also What kind of things should i focus for DCM kind of role?
thanks all
Yield curves, rates, views on the economy, refinancing walls 2013/2018, Basel regulations and how you like the idea of advisory work which is linked to the markets.
Jacksonville?
Double Post
DCM interview case: Asses the current market and if now is a good time to raise funds (Originally Posted: 11/16/2017)
I am going to an interview at a large bank DCM inteerview and i have to prepare a small assignment before hand, since i am not a DCM professional by training i am not entire sure where to start, the assignment reads:
"A company is contemplating raising funds in the bond markets, and have asked you to assess the strength of the current market, and if now is a good time to raise funds in the bond market. "
They do not give me any additional information about the company, it's industry or financials. Thus, i assume they just want me to show that i can identify the macro economic indicators and trends which may impact a corporations ability to raise funds in the bond market.
They do mention that the presentation should only be a couple of slides and that i could touch on the subject of economic indicators, historical data/trends and market volatility.
Would love to hear from some knowledgeable people on this subject.
Thanks
Jill0909, have you checked out these or run a search:
More suggestions...
If those topics were completely useless, don't blame me, blame my programmers...
Bump! old post but very curious
URGENT: SunTrust Robinson Humphrey DCM Investment Grade Origination Analyst Interview (Originally Posted: 06/05/2014)
I just received an email that I will have a first round interview with this group for a full time analyst role on Monday. Does anyone on here know anything about this group, what to expect in an interview, or any other advice?
Never heard of them. There are other posts on WSO about the group though.
RBC Capital Markets DCM First Round Interview (Originally Posted: 01/30/2018)
Hi boys, anyone here has interviewed with RBC Capital Markets (Debt Capital Markets Group) ? This is a summer position based in Toronto. Please share some of the questions they might ask during first round. Thanks.
Hi Michael-Cohen, any of these threads helpful:
If we're lucky, the following pros may have something to say: nagulni diverse_kanga jimbofinance
I hope those threads give you a bit more insight.
Interview with Deutsche DCM Group (Originally Posted: 05/28/2010)
I have an upcoming interview with Deutsche DCM (Debt Capital Markets) Group and the JD mentions these roles :
• Client balance sheet analysis taking into account Funding/Capital needs and key risk analysis across Rates, FX and Commodities. • Preparation of trade ideas • Scenario analysis • Modelling of derivative transactions • Review of rating releases. • Preparation of pitch books
I am a trader as of now and want to move into banking. What all kinda questions i can expect and what all topics do i need to prepare on?
Thanks
Yo bud, want to let you know. DCM is NOT part ibanking at DB. It is part of S&T in fact.
Thanks makingclocks for your reply. Could u elaborate as your point of it being part of S&T? And in that case could u elaborate on topics which i need to prepare on and skills i need to show them keeping in mind the job description i have posted above.
Reply wud be of immense help to me.
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