What does DCM team do?
Debt Capital Markets (DCM) groups are responsible for providing advice directly to corporate issuers on the raising of debt for acquisitions, refinancing of existing debt, or restructuring of existing debt.
What are DCM products?
A debt capital market (DCM), also known as a fixed income market, is a market for trading debt securities such as bonds and loans. Like equity markets, debt capital markets are used by businesses and governments to raise long-term funds that could go towards growth or maintenance.
What is DCM banking?
Definition: A Debt Capital Market (DCM) is a market in which companies and governments raise funds through the trade of debt securities, including corporate bonds, government bonds, Credit Default Swaps etc.
What is DCM and ECM?
Capital markets bankers help clients raise money through public markets. Capital markets bankers usually specialize in equity or debt. They’re known as Equity Capital Markets (ECM) bankers and Debt Capital Markets (DCM) bankers. Capital markets jobs are well paid.
What do I need to know for a DCM interview?
In DCM interviews, you’ll need to know about balance sheets, bond valuations and seniority. If you’re interviewing for a junior DCM job, you’ll need to be wholly comfortable with the concepts of duration, valuation, convexity, spreads, the interest coverage ratio and the leverage coverage ratio.
Is DCM a good career?
DCM itself is considered a good long-term career option. Consider the sheer volume of the global debt market – there are opportunities in every country, both public sector and private, as well as every sector of the industry.
Is DCM sell side?
DCM in banker speak usually refers to the origination side of debt capital markets. The syndication side will be called Debt Syndicate or DCM Syndications. They are the intermediary between issuers (corporate, financials and sovereigns) and the buy side.
Why is DCM interesting?
DCM is extremely interesting because you get to interact with clients from the start. If you look at M&A, it may take a while before you start interacting with the CFOs or CEOs of the companies you work with. At VP level you might have some client contact, but really it’s more when you’re a senior VP or director.
What questions do they ask at DCM interview?
What is the yield to maturity on a bond? How do you price a bond? If you believe interest rates will fall, should you buy bonds or sell bonds? When should a company issue debt instead of issuing equity?
Does DCM pay well?
DCM bankers receive pretty much the same base salaries at all seniority levels as those in ECM and M&A, according to figures from executive search firm Options Group. First and second-year associates earn $100k-$125k and if you make it to MD your pay can reach up to $600k.
Is DCM part of investment banking?
Unlike other parts of investment banking, DCM teams both originate the issuance of debt (usually bonds) and can help to arrange the syndication which brings the bonds to market.
Can you move from DCM to M&A?
And that’s when you decide to make the move into M&A – or even a solid industry group that does a lot of M&A deals. A number of coaching clients have moved from ECM or DCM into M&A recently, so this article is mostly based on what they encountered in the process.
Is DCM a good job?
Is DCM an IB?
Sales and Trading is not IB . IB is split between industry groups (Energy, Healthcare, Consumer, etc.) and product groups (M&A, DCM , ECM , LevFin, Restructuring). These groups speak with each other depending on the task at hand.
Is DCM better than ECM?
DCM issuance is far higher than ECM. Every year, the amount of debt issued globally is typically four or five times higher than the amount of equity issued. In practical terms, this means that the role of ECM and DCM bankers is quite different. “In DCM, there’s a lot more repeat business,” says Rambosson.
What is DCM Ochem?
Uses. DCM’s volatility and ability to dissolve a wide range of organic compounds makes it a useful solvent for many chemical processes. In the food industry, it is used to decaffeinate coffee and tea as well as to prepare extracts of hops and other flavourings.
How is DCM made?
The predominant method of manufacturing dichloromethane uses as a first step the reaction of hydrogen chloride and methanol to give methyl chloride. Excess methyl chloride is then mixed with chlorine and reacts to give dichloromethane, with chloroform and carbon tetrachloride as co-products.
How harmful is DCM?
Classified as a neurotoxin, dichloromethane has been proven to cause damage to the brain and central nervous system (CNS). The Environmental Protection Agency (EPA) has classified it as a probable human carcinogen since high levels of exposure to the chemical has been proven to cause liver and lung cancer in animals.