How are DCM desks doing?

Intern in IB - DCM

I'm an incoming SA in DCM (assuming it doesn't get cancelled due to COVID). I'm curious about the activity DCM is seeing right now vs in January. What about corporates vs govt's?

Comments (19)

Apr 2, 2020

bump

Apr 2, 2020

generally pretty good, companies need capital and bank market / IG bond market are some of the preferred places to get it. busy times

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Apr 2, 2020

Do you think there'll be any correlation between busy nature of DCM and maybe they're willingness to recruit for more new FT people come August/September? Especially from students looking to get into Cap Markets from maybe other departments? Or just too much uncertainty going on to even venture a guess?

  • Analyst 1 in IB - Gen
Apr 2, 2020

the latter. source: work in cap markets, we don't even know what we're gonna do with our incoming class

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  • Incoming Analyst in IB - Gen
Apr 2, 2020

It's possible, I think DCM and Lev Fin will be the only teams that will have much work in the coming quarters, M&A will take a long time to unfreeze. Coverage groups will be busy working with Lev fin and DCM in terms of refis and amendments for their respective industries.

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  • Analyst 1 in IB - Gen
Apr 2, 2020

.

    • 1
Apr 2, 2020

Got it. Thanks. How is doing capital markets from home?

Apr 2, 2020

Also interested. Thanks!

  • Analyst 1 in IB - Gen
Apr 2, 2020

i work on an IB-ish desk so for us its the same as my friends in coverage - remote sucks, seniors blast you with work at all times, dealflow is not zero, but definitely less than usual (mostly refis/term loans/amend and extend)

Apr 2, 2020

following

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Apr 2, 2020

Similar boat as OP (joining a BB full time in FIG DCM come July). From what I've read from major news sources, looks like March was a very very solid month for DCM as the 2nd highest month for IG issuance volume since last September, with some solid room to run through April. Was a bit surprised tbh, but I guess that it makes sense seeing as corporates are just trying to shore up liquidity before facing the brunt of the minimal productivity and demand as a result of covid. Not sure how long this will last, but it's encouraging to know that as of now business isnt dead (knock on wood).
My question is how long does this hold up and what does IG issuance look like if we slide into a recession? Would hope that investor demand for yield would at least keep the market active enough for new deals to come to market. Maybe we see longer dated securities issued? Really not sure. All things considered it seems like the HY market seems to be opening back up after a hiatus with a few deals coming to market so thats nice.

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Apr 2, 2020
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