Newbie question. I read an article today about New York Times issuing a junk bond, and the underwriter is Barclays. Within Barclays, is it the DCM or LevFin division that did the underwriting work?


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If it's junk bond (i.e. non-investment grade), the Leveraged Finance team will do the execution.

LevFin teams primarily deal with 3 types of deals:

  1. Non-investment grade corporate issuances ("corporates")
  2. Non-investment grade issuances for Leveraged Buyouts ("LBO")
  3. Acquisition financing.

Ideally, the best experience for an analyst is deal type #2, but unfortunately, most deals are of type #1. Type #1 brings in a lot of money for the bank, is a stable and recurrent deal type, and has high likelihood of closing whereas the same does not hold true for 2 and 3.

This is why LevFin does not necessarily translate into a great analyst experience, especially if the team has so many corporate issuances that the analyst do not have time / the skills to model out financials.

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thanks big guy


Then, what does DCM do? like underwriting investment grade bonds?


Then, what does DCM do? like underwriting investment grade bonds?

Exactly, although some versions are blurred depending on the bank.


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