| Topic Name: |
IB-S&T Compare Contrast |
| Message Name: |
Do you think that an |
| Date Posted: |
04/19/2000 |
| In Reply To: |
Capital Markets is a group of bankers (technically) that keeps a close eye on the markets in order to make the balance sheet of the client most efficient. For example, in Debt Capital Markets a client may want to issue debt, but there needs to be a group of bankers at the high end of the deal as it comes to market telling them which form of debt- preferred, subordinated, convertible, eurobonds, etc.- the market is favoring most highly.
Goldman Sachs and Merrill Lynch, as you may guess, have great Capital Markets divisions. Beware, however: capital markets professionals play widely differing roles at the different banks. For example, at SSB and CSFB people inside the firm will tell you not to go to CM, because all they do is pricing. At GS especially, people will tell you that they play a much more creative role in the banking process.
This division is common to all banks, but you find it in different divisions. For example, at GS Equity Capital Markets is in IBD, while Debt Capital Markets and High Yield Capital Markets are in FICC. I think personally that it is a great division to go into as an analyst because you are technically a banker but you get great market experience, and the difference is that you work on a trading floor as opposed to in a cubicle, which, at least for me, plays a big psychological role. On the other hand, you don't do as much modeling, whihc of course is a cost, since you learn so much from that.
If I sound like a commercial, it's b/c I just went through CM recruiting at some BB banks. ML and GS people loved their jobs.
The thing to remember is that bankers will tell you S/T and CM sucks, S/T people will tell you banking sucks, etc, especially on this website. Just go with what you want, because they are all different experiences.
good luck... |
| Message: |
Do you think that an analyst that has come out of the 2 year program from a capital markets group is at a disadvantage when compared to an analyst from an industry group, or M&A because they would not have had the modelling, and valuation experience?
Do you have any info on the SSB Debt Capital Markets group - execution only, the culture, competence? Thanks.
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