The debt capital markets (DCM) group advises corporate and government clients in raising debt for various financial purposes, including acquisitions, refinancings, and restructurings.

Within DCM, professionals typically fulfill roles in origination, structuring, and syndication.

Bond Market Segment

• Primary Market: Where issuers launch new bond issues to directly raise funds from investors
• Secondary Market: Where existing bonds are traded amongst market participants

Types of Bond Deals:

• Investment-Grade Bond
• High-Yield Bonds
• Government Bonds
• Municipal Bonds
• Emerging Markets Bonds

Banks generate revenue by offering products and services associated with new debt issuances. Consequently, DCM roles represent a blend of Investment Banking (IBD) and Sales & Trading (S&T), creating a distinctive blend of deal execution and engagement with public markets.

Recruiting

Regarding recruiting for DCM positions, candidates should have a deep understanding of the bond market, familiarity with current interest rate dynamics, an awareness of incentives for issuing debt, and a grasp of the drivers of fixed income products. Out of the credit-related IBD roles, DCM has some of the more elementary technical questions in their entry-level interviews; generally will be typical fixed income questions.