www.efinancialcareers.com/students | Careers in Financial Markets 2014
You may also work in syndication – coming in at the end of the process and ensuring the deal goes to market. This involves giving pricing and a guide to live market trends to investors and, once the deal goes live, marketing it.
Skills sought
Like most front-office investment banking roles, firms expect their analysts to be highly numerate and to have an understanding of the technicalities of company financing. However, while most investment bankers are very focused on individual deals, DCM bankers need to be able to develop relationships with clients over time.
“DCM bankers cultivate and develop relationships with clients by providing them with relevant market information at regular intervals,” says Patrick Quinn, managing director, debt capital markets, Americas at Nomura. “DCM bankers are also involved in every aspect of structuring and executing transactions - working with clients to determine the right structure for a transaction, working with legal counsel to properly document a transaction, and working with the syndicate team, sales force, and trading desks to price and distribute a transaction.”
The fast pace of the DCM desks means that not only must you have a knowledge of corporate finance, but you also need to develop an obsession with the movements of capital markets and keep up with both legal and regulatory developments related to the financial sector.
“Analysis of business trends also becomes increasingly important as you progress in your
27 pay and bonuses
Average debt capital markets pay 2012 ($k) role
1st/2nd year associate 3rd year associate Vice president Director
Managing director Source: Options Group Intelligence Unit
career, as sophisticated clients will expect you to present new ideas and solutions to them on a regular basis as you advise them on large and strategic transactions,” says Marco Buganza, director in the DCM team at Credit Suisse in London. “You will also need a strong determination to succeed, and good people skills.”
Analysts in investment banks’ DCM teams are expected to be more “well-rounded” than ever, says Sarah Schell, executive director, DCM,
J.P.Morgan in Hong Kong. “Command of the traditional core analyst skill set is only a baseline. In addition, an analyst is required to be conversant with the daily fundamentals, technicals, market issuance and execution processes across three segments: the high-grade and high-yield bond markets as well as the traditional loan market.
base salary Total compensation 100-125 125-140 200 300
400-500
200-300 250-400 400-600 600-850 750-1,200
career insight
elias spangenberg
DCM is more transactional than other parts of investment banking, and I really like that. It means that there are finite projects and clearly defined goals. Winning a competitive mandate or executing a transaction always feels great.
Associate, Debt capital markets, Morgan Stanley
Elias graduated with a BSc in Accounting & Finance from University of Warwick in 2009 and joined Morgan Stanley that year.
The debt capital markets team, at least at Morgan Stanley, is a joint venture between the investment banking division and the sales & trading division. This means there’s a lot of interaction between us, M&A bankers and traders in the sales & trading division.
My job focuses on Nordic and UK corporate debt issuers, and this means working on everything from relatively simple capital raisings to more complex risk management and
derivatives transactions. It’s the latter that I’ve currently been working on today, but even then I’m working on other projects and issuing regular updates to the clients I cover for existing deals.
DCM is more transactional than other parts of investment banking, and I really like that. It means that there are finite projects and clearly defined goals. Winning a competitive mandate or executing a transaction always feels great. DCM is also good if you want to combine technical skills with client-facing activity.
Most areas of investment banking will tell you this, but it’s a very team- oriented environment. It’s therefore really important to demonstrate before joining that you can work as part of a team, whether that’s through groups at university, sports or other engagements.
The job requires a lot of attention to detail, and good organisational ability since you’ll be working on multiple projects at one time. You’ll also need an interest in financial markets, because the job is technical and a genuine interest in finance and the markets helps. In addition to that you must be willing to take on client responsibility.
Try to read around as much as possible to get an understanding of how the capital markets work and why companies need to raise capital. With social networking, it’s also a lot easier to find professionals in your target area in case you have any questions.
As with any investment banking job, the hours you work can fluctuate depending on what you’re working on – this can make me late for social engagements!
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