Product Groups

If you’re looking to become an investment banking analyst, you’ll have to learn about the different product groups that operate at financial institutions.

Product groups consist of investment bankers that specialize in advising on specific types of deals across various industries. Here is an overview of the most common product groups:

Mergers and Acquisitions (M&A) is a common product group at many investment banks. These groups specialize in advising and facilitating mergers, acquisitions, divestitures, and other corporate restructuring activities for their clients.

Equity Capital Markets (ECM) is another common group. ECM groups guide companies on raising equity capital, such as through IPOs or add-on offerings.

Understanding Debt Capital Markets (DCM) is also essential. In DCM, bankers assist in raising funds through debt securities like bonds. ECM and DCM bridge investment banking with sales and trading.

Leveraged Finance (Lev Fin) groups focus on helping entities raise debt, typically below investment-grade issuances.

Our final example of a product group is Restructuring. These groups advise companies on restructuring their capital to prevent collapse. This involves addressing issues like bankruptcy and liquidation.