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Essentially this group deals with advising on and executing debt buybacks, exchanges, tender offers, etc... on behalf of issuers. In many cases it's pretty boilerplate stuff (run the math on how much an issuer would save by taking out old, high-coupon stuff and replacing with newer, lower-rate bonds), but can be very interesting when doing things like coercive exchanges, covenant modification/stripping, etc... Pay should be more or less in line with capital markets advisory roles (ie DCM and ECM). Can't imagine exit opps direct to the buyside are very good (the skillset is so narrow and very "soft") but at the junior level lateraling to other capital markets roles (eg DCM, LevFin, sales/trading and syndicate) are definitely very realistic. That said, everyone I knew in Liability Management seemed to really like the work.

 

@mrb87 hit most of it here. My buddy just left our LM group for PE and loved it. That being said, he has mentioned that LM is most worthwhile at top M&A shops. Vanilla refis are cool and all, but he got to work on some really complex transactions stretching across both the IG and HY space (covenant strips & debt migrations resulting from acquisitions/spinoffs). Playing the game theory between creditors and clients and calculating the NPV/BE for debt scenarios are things that my team outsourced to the LM guys. Actually one of the more technical CapMarkets groups

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