Capital Markets: currently 500 jobs.The latest job was posted on 30 Nov 15.
efinancialcareers.com’s capital market jobs fall into two umbrella categories – equity capital markets, or ECM, and debt capital markets, or DCM – both involve raising long term finance for clients. DCM is all about raising money for the client by selling bonds, whilst ECM is all about selling stock in the client company – most obviously in an initial public offering or IPO. Each of the categories embraces roles in three main areas – origination, distribution and syndication.
The responsibility of the more senior members of the team, origination is getting the business and the role of originator is perhaps one of the most exciting in the industry. Originators are often required to travel around the world, meeting with existing and new clients, selling the services of the bank. The meeting are commonly at board level and when the client calls, the originators have to be available. It’s up to originators to work with clients to determine their needs, relay the information back to the bank and kick start the capital markets process.
Once the deal is in, it is down to the bank to get all of the legal documentation done and then start selling the equity or bonds to potential investors. The legal documentation invariably requires the coordinating the efforts of the bank with those of lawyers and accountants. The selling of the securities is the distribution process, undertaken by those aware of the benefits the securities will bring to investors and able to convince them to pay an acceptable price.
If the capital being raised is substantial, then a single bank might be insufficient to undertake all of the distribution. Instead a syndicate is formed of a group of banks, with the lead bank coordinating the efforts of the other banks in the syndicate. The feedback from the syndicate members will determine a suitable price for the securities being sold, with the finalized price determined by a combination of both the state of the market and global demand.
Practically every aspect of capital markets includes the need for in depth, accurate analysis, and flawless communication, both between bank and client and from bank to bank in a syndicate, to ensure the securities efficiently distributed at an acceptable price. This means that excellent analytic and communications are a must.