RBC Capital Markets vs. Jefferies

I have an offer at both firms (NYC) and trying to make the decision.

  • Both banks have same growth story and are strong in the MM
  • RBC acts more with their balance sheet and can support larger financing
  • Jefferies name is stronger than RBC in the U.S.
  • Both banks have pulled a lot of top MD talent from BB through the financial crisis
  • RBC is headquartered in Canada, which will always have an effect on perception
  • Both banks will have smaller groups than BB which will be better for developing skills and having more responsibility

With both being a generalist offer, which would you take, and why?

Comments (42)

Oct 5, 2011 - 5:08pm

Most likely S&T.

"All I've ever wanted was an honest week's pay for an honest day's work."
Oct 5, 2011 - 7:04pm

Investment Banking Division

How concerned should I be with the balance sheet difference between both banks? There has been a lot of talk as of late about boutiques being used for the M&A advisory expertise and the bigger banks being included for the financing. Do you think this will become more prevalent in the future, or is it more likely that RBC will grow faster (and get bigger deals) because of its huge trading presence and financing capabilities? Jefferies has spent a lot of money to achieve the high growth in the last couple years - I am concerned that this growth may not continue at the same pace. Any thoughts are much appreciated...somewhat spinning my wheels here...

Best Response
Oct 5, 2011 - 7:18pm

I have a couple good friends at Jefferies and from what they told me, Jefferies has a partnership with a commercial bank (forgot which one) that doesn't have an investment banking presence. Through the partnership, Jefferies is able to leverage their partners' liquidity as if it is their own balance sheet when competing for deals... so not necessarily disadvantaged vs. RBC in the middle market. When you get to large deals beyond their hold levels, then RBC may have somewhat of an advantage as it relates to balance sheet, but I don't think it'll be by much.

Oct 5, 2011 - 8:56pm
PEguy2011:
I have a couple good friends at Jefferies and from what they told me, Jefferies has a partnership with a commercial bank (forgot which one) that doesn't have an investment banking presence. Through the partnership, Jefferies is able to leverage their partners' liquidity as if it is their own balance sheet when competing for deals... so not necessarily disadvantaged vs. RBC in the middle market. When you get to large deals beyond their hold levels, then RBC may have somewhat of an advantage as it relates to balance sheet, but I don't think it'll be by much.

Would you be able to find out which commercial bank?

  • 3
Jul 4, 2013 - 3:12pm

nelobynature:

PEguy2011:

I have a couple good friends at Jefferies and from what they told me, Jefferies has a partnership with a commercial bank (forgot which one) that doesn't have an investment banking presence. Through the partnership, Jefferies is able to leverage their partners' liquidity as if it is their own balance sheet when competing for deals... so not necessarily disadvantaged vs. RBC in the middle market. When you get to large deals beyond their hold levels, then RBC may have somewhat of an advantage as it relates to balance sheet, but I don't think it'll be by much.

Would you be able to find out which commercial bank?

I believe the JEF partnership is with MassMutual.

Jan 23, 2014 - 11:17pm

Wait, is this for New York? I think the prestige rankings depend on that.

Array
Jan 23, 2014 - 11:22pm

thedude101:

Why does RBC have worse exit opps while it has become has a strong player in IB? Is this going to change in the next 3 years?

RBC isn't a major player in the U.S. - most of its dealflow is from Canada where it's the top dog (energy is hugely lucrative for the bank).

Jan 23, 2014 - 11:26pm

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