Capital Markets: currently 700 jobs.The latest job was posted on 20 Aug 18.
Capital Markets
If you want to be at the leading edge of investment banking, capital markets is where securities start their lives and is ideal for those with a passion for finance.
In the capital markets, investment banks act as underwriters for companies wishing to raise funds either through equity or bond issues and jobs in this area cover a number of specialisms, for example equity research in London through to senior originator roles in Edinburgh.
Equity vs. Debt Capital Markets
Equity Capital Markets (ECM) teams are focused on companies that issue shares to raise funds. These shares will be tradable on stock exchanges like the London Stock Exchange or the New York Stock Exchange and originate either in the form of an Initial Public Offering (IPO) or a Rights Issue.
Alternatively, the DCM (Debt Capital Market) team enables issuers to raise funds by issuing bonds. These could be risky high yield or safer investment grade bonds issued by a company or treasury bonds issued by a national government.
Opportunities within Capital Markets
Within capital markets, origination positions are usually held by senior capital market bankers who have the expertise to understand the detailed needs of each potential client and then translate them into the services the bank can offer.
This could be a standard share or bond issue or it could be something more complex embracing elements of both equity and debt. These are known as hybrid securities and examples include bonds that can convert into equities at a pre-arranged price or preference shares that pay a fixed dividend.
The more desk-based structurer then may be necessary to develop the product, bringing the expectations of the originator to reality. It is then passed onto to the syndication desk who will effectively price the product and make it market ready.
All jobs in capital markets require strong communication skills, numerical aptitude and outstanding analytical abilities. It is often feast or famine, so for those that thrive on managing multiple projects under intense scrutiny, capital market positions are ideal.