Equity Capital Markets

Capital markets is the product that sits between issuers needing capital and institutions deploying it. The bank originates, structures, syndicates and executes. It splits into ECM (equity) and DCM (debt). ECM is event-driven and sentiment-dependent. IPOs run 12–24 months pre-launch then 4–6 months formally, with bookbuilding over 1–5 days and typical first-day pops of 15–25%. Fees run 3–7% on IPOs, 2–4% on follow-ons. Investors skew mutual funds and hedge funds. Risk is volatility and VIX - a window can slam shut on a 10% correction. DCM is continuous and credit-driven. IG issuance runs 4–6 weeks, HY 2–4 weeks. Fees are thin: 0.2–0.5% on IG, 1.5–2.5% on HY. Investors are insurance, pensions, asset managers. Pricing is in basis points over Treasuries. HY spreads can blow from 300bp to 1,000bp+ in a crisis. Every deal follows a five-stage chain: origination, structuring, syndication, execution, aftermarket. Senior bankers carry the issuer relationship, coverage bankers know the sector, syndicate owns distribution. Credit splits roughly 25–35% to originators, 40–50% to distributors. Banking wants the deal live; markets wants the price right. Bookbuilding is real-time price discovery. Allocation favours long-only holders over flippers. DCM adds bond documentation, covenant design (incurrence and maintenance), loan syndication with TLA/TLB tranches, plus private placements and structured products. Career paths branch by stage: coverage, syndicate, DCM origination, trading, research, structurers.

Product group · from the G2G library

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

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