Debt Capital Markets

DCM is the half of capital markets that moves in debt, not equity. The bank sits between issuers and investors - insurers, pension funds, asset managers, banks - running five stages: origination, structuring, syndication, execution, aftermarket. A break anywhere derails the whole thing. DCM is continuous and credit-driven. Unlike ECM, a market tantrum doesn't slam the debt window shut overnight - issuers can almost always get a deal away. The question is price, not feasibility. Typical deal sizes run $200M–$3B; fees are thin (0.2–0.5% IG, 1.5–2.5% HY), so volume matters. Timelines are short: 4–6 weeks IG, 2–4 weeks HY. The skill set is credit analysis, covenant design, roadshow. Pricing is in basis points over a benchmark - Treasury, Bund, Gilt. IG trades 50–300bp over; HY 300–1,000bp+. New paper usually carries a 10–50bp concession to lure buyers. The syndicate desk runs the book. Orders come in as spread-and-size ("$50M at 275bp"), not share counts. Long-only holders get allocations first; flippers get cut. A well-allocated deal holds its secondary price; a poorly allocated one bleeds. Inside the bank, banking wants the deal live, markets wants the right price. Fee credit gets fought over - originators claim 25–35%, distributors 40–50%. The lead bookrunner takes the biggest slice; co-leads and syndicate members split the rest. Loan syndications (TLA, TLB) sit alongside bonds, priced off SOFR plus 200–600bp. Reading the window is everything. Credit can move fast.

Product group · from the G2G library

The whole story of this desk is a chapter in the G2G library.

Open jobs that use this (3)