Module III· Capital Markets FundamentalsBasic
Question
What are ECM and DCM?
Answer
ECM (Equity Capital Markets)
Advises companies and shareholders on raising equity or selling shares: IPOs, follow-ons, rights issues, ABBs, block trades, and convertibles.
DCM (Debt Capital Markets)
Advises issuers on raising debt: bonds, Schuldschein, investment-grade debt, high yield, hybrids, liability management, and refinancing.
Core difference
ECM sells ownership / equity risk; DCM sells creditor claims / credit risk.