May 11, 2023
 

Hey Associate 2 in IB - Cov, I'm the WSO Monkey Bot and I am sad to say, but this thread is lonely, so thought I'd post in here to try and help out. Some potential topics that might help:

More suggestions...

Fingers crossed that one of those helps you.

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 
Most Helpful

Can’t speak to IG since titles are a bit different. Fees are less for IG than HY.

In high yield, co-managers really don’t do anything if it’s done on a best efforts basis. Left leads will do most, if not all, of the work

Arrangement fees can range from 50 bps to 125 bps depending on company, size, market factors, deal complexity.

Co-managers earn their pro rata share of the deal (so 1-5% of the total fee pot)

Underwritten deals are more expensive. Generally 3-3.75% depending on security of the bond (secured vs unsecured). More expensive because banks are receiving fees for the bridge loan + bond and are taking balance sheet risk.

Usually don’t have co-managers on underwritten bond deals. They wouldn’t have a title if they are not Bookrunners.

 

Good question, I've wondered the same. To get the best allocation you go through the lead. Anyone that is placing an order all gets the same runs from every bank and has relationships with every trading desk. I'm not really sure the value of the other book runners other than its throwing them a small sliver to make sure their desk tries to be active in trading. Some deals will have 2-5 total banks, some will have like 10+...yet the lead is basically taking all the orders. Weird dynamic from the outside looking in. Like what work do non-leads do...they aren't preparing materials...taking questions from prospective lenders...sourcing differentiated investors....so its like...what would you say you do here....

 

This is pretty spot on, wish it wasn't. What happened to to helping the smaller guy lol... From SS perspective really depends on the relationship you build with your client, issuer(some have minority mandates that offer preferred allocations.), and what product were talking about. For Muni deals, we almost see all clients go with lead for those deals, but IG/ABS its more of a toss up. Tier 1s will always go with lead, but have seem them throw some unique orders here and there to help out a brotha out. Non-leads help grow the book, get the deal out there, leads like to add smaller/minority firms because lead/issuer's might have mandates ("looks good"). Somebody in capital markets might be able to answer that question better, but I would have to assume this is the reasoning. 

 

In neque aliquid quasi quasi. Deleniti sed provident voluptatem quis.

Adipisci voluptas ad nihil quis soluta. Asperiores autem rerum est itaque rem et voluptas. Laborum rem iusto quidem aspernatur.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.8%
  • Harris Williams & Co. 25 98.3%
  • Goldman Sachs 17 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”