Capital Market Courses<\/a>\u00a0<\/strong>concept assume you buy a bond of 1000Rs face-value with a redemption date of 1 year.<\/p>\nAfter a year the bond can be redeemed at 100Rs plus the interest rate which may vary. When bond prices fall the interest rate moves up and vice versa. If you get 1100 Rs your interest rate is 10% and is much higher than the FD rate of 6-7 %. The investment is low-risk and earns a fixed interest rate. Such funds are a short-term boon for firms needing funds for expansion without the dilution of ownership. It\u2019s a win-win deal for both.<\/p>\n
The different types of bonds:<\/strong> \nThe bond types are risk-of-default related and can be categorized as<\/p>\n\nThe government bonds are at low-risk for default.<\/li>\n The companies issued investment bonds also fairly safe from default.<\/li>\n The bonds that are high-yield susceptible to risk and hence offering a better rate of returns.<\/li>\n<\/ul>\nThe DCM also handles debt-equity issuances for several purposes. At times on reaching debt-maturity bonds are refinanced or reissued. At other times the expanding company may be looking to reduce cost-to-company capital. A quick look at the statistics espoused by Dealogic shows the bond markets are huge in comparison to issuances.<\/p>\n
In 2013 alone, the DCM market figures showed debt-deals worth 6.1 trillion $ versus the 832.2 billion $ equity issuance markets. Compared to its value in 2012 there was a reported surge of 25 percent upwards.<\/p>\n
How to get a DCM job and why?<\/strong> \nThe DCM job is part of the investment banker\u2019s portfolio. This is a highly prestigious and well-paying job with a lot of hard work and challenges thrown in like the inordinately long work hours, the need for classroom and paid training to get placements as IBs and the long attributes list required of an IB.<\/p>\nDCM is way larger than the ECM and banks or firms find this large volume low-returns market needs constant new-deals to be worked on. ECM thrives in sectors like mining, aerospace, etc. The need to generate profits from large volumes of new-deals means more IBs to pitch the issuances and provide services for both investors and clients. \nFurther half the volumes of debt-issues are from the financial institutions.<\/p>\n
Hence, in larger firms, there could be separate CM and ECM divisions, private firms, and public companies divisions, or corporate and government debt markets divisions. The plus point is that a lot of debt-issuances ensure you are not just a salesperson of equity issuance.<\/p>\n
The normal workday of the FA is to convince investors and clients for deals. You will need to track trends, make presentations, draft pitches, create models, meet HNI clients, or work in inter-bank funds syndication.\u00a0 No matter where expect 80-100 hours of stress-laden work per week. No wonder then that nearly half the aspirants for IB jobs quit within 3 years. For the persistent expect to move up every 2-3 years from Analyst to Associate, VP, Director, and CFO or MD.<\/p>\n
Conclusion:<\/strong> \nThe DCM and ECM are areas that cover the various roles of an investment banker in capital markets. The\u00a0Capital Market Training\u00a0<\/strong>at Imarticus Learning is specially designed to help you hit the ground running.<\/p>\nIt has modules for resume building, personality development and interview facing techniques besides a robust financial Capital Market Tutorial<\/a>\u00a0<\/strong>curriculum. You will need classroom training, mentorship, certification and experience to help you stand out from the many IB career aspirants. Enroll at Imarticus today.<\/p>\n","protected":false},"excerpt":{"rendered":"At the very onset, let us tell you that one does not need to have extensive skills in modeling especially...<\/p>\n","protected":false},"author":1,"featured_media":186363,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[22],"tags":[112,113,114,1227],"pages":[],"coe":[],"class_list":{"0":"post-186339","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance","8":"tag-capital-market-courses","9":"tag-capital-market-training","10":"tag-capital-markets","11":"tag-capital-market-tutorial"},"acf":[],"yoast_head":"\n
What Modeling Skills are Needed For an Analyst in Debt Capital Market?<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n","yoast_head_json":{"title":"What Modeling Skills are Needed For an Analyst in Debt Capital Market?","description":"It is important to track the indices for outstanding debt. Any\u00a0capital market tutorial\u00a0should begin with related to DCM. Let's explore more about it.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/imarticus.org\/blog\/what-modeling-skills-are-needed-for-an-analyst-working-in-debt-capital-market-blog\/","og_locale":"en_US","og_type":"article","og_title":"What Modeling Skills are Needed For an Analyst in Debt Capital Market?","og_description":"It is important to track the indices for outstanding debt. Any\u00a0capital market tutorial\u00a0should begin with related to DCM. 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