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B) 'ar t e most common ro$te into investment banking 'or someone /$st 'inis ing an $n%ergra%$ate %egree is to be ire% into a bank0s anal)st program 1'or more on li'e as an anal)st2 see ere34 &B(s are generall) ire% as associates4 (nal)sts an% associates work wit in speciali5e% gro$ps b$t t e) ma) not alwa)s ave control over t e gro$p to w ic t e) get assigne% 1anal)sts especiall)34 Some o' t e most common gro$ps 'o$n% wit in investment banks are %escribe% below2 along wit t e work t e) %o4 I' )o$0re a new gra%$ate intereste% in one o' t ese areas speci'icall)2 learn as m$c as )o$ can abo$t t e area t at intrig$es )o$ so t at )o$0re best positione% to be assigne% to t at gro$p2 b$t $n%erstan% t at )o$0ll most likel) be looking 'or a /ob as an anal)st or associate4 1Fin% /obs like t is3 In#ustr& Coverage &ost large investment banks ave an area calle% investment banking2 IB!2 IB62 CIB!2 7banking7 or somet ing t at Fin# $o%s Pick t&pe o 'o%s %enotes in%$str)-'oc$se% (nal)st,(ssociate investment -.$it),Cre%it banking4 T ese organi5ations are #esearc organi5e% into pro%$ct gro$ps Instit$tional

Investment Banking: Job Options

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A )reat* Al%eit Color ul* +ra#er 7Howie2 'irst o' all2 as t e calmest %emeanor o' an) tra%er I ever interacte% wit 2 so ver) 'ew sit$ations can 'reak im o$t4 He also as an ama5ing min% 'or mat 4 He0s /$st ver)2 ver) .$ick wit mat 4 He0s ver) organi5e%2 ver) creative2 I t ink is strongest 'eat$re is t at e as t is wa) o' p$tting c$stomers

Sales Tra%ing Str$ct$re% Finance -merging &arkets 8$blic Finance Cre%it,#atings (nal)st Broker,8rivate Client IT,S)stems Capital &arkets more444 Post a 'o% Searc b) ke)wor%9
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1e4g42 private placements3 an% in%$str) coverage gro$ps 1e4g42 aerospace34 See Cre%it S$isse0s banking page 'or an e;ample4 T e gro$p will ave a set o' senior bankers 1&anaging !irectors - $s$all) calle% 7&!0s73 w o maintain relations ips wit client companies in t e in%$str) 1e4g42 Boeing2 (erospatiale34 T ese bankers will be backe% $p b) a gro$p o' !irectors2 <8s2 (ssociates2 (nal)sts an% (%ministrative (ssistants w o elp b) atten%ing client meetings2 coming $p wit i%eas 'or clients2 preparing pitc books2 e;ec$ting transactions2 writing commitment committee memo0s etc4 T e two main t)pes o' b$siness are &&( 1see below3 an% 'inancings w ic co$l% be carrie% o$t separatel) b) a corporate 'inance gro$p 1see below3 or e;ec$te% wit in t e coverage gro$p4 Generall)2 t ere will be a client team t at comes

at ease47 +omm& Maranoo' Bear Stearns %escribing Howie #$bin2 a great mortgage-backe% tra%er4 FromHo$se o' Car%sb) =illiam Co an4

World Financial Center, NY Home to Several Investment Banks toget er 'or a speci'ic client %eal 1e4g42 iss$ance o' a Boeing Bon%34 T is will incl$%e t e &!2 a <8 an% an (ssociate2 (nal)st or two4 T is team wo$l%

Setting $p %eals w ere one compan) b$)s anot er is an important so$rce o' 'ee income 'or man) investment banks4 = en t is area is ot on =all Street2 it can be $gel) pro'itable4 B$t even w en capital markets con%itions make it %i''ic$lt 'or companies to 'inance ac.$isitions2 as t e) %i% in t e >??@,?A recession2 strategic mergers contin$e to appen an% banks t at speciali5e in &&( contin$e to %o %eals2 albeit at a lower vol$me4 I' )o$ go to work in t is area )o$ wo$l% elp o$t wit a team w ic acts as an a%visor to a client2 val$es transactions2 creativel) str$ct$res %eals an% negotiates 'avorable terms4 =orl%wi%e2 Gol%man Sac s2 "a5ar% an% &organ Stanle) are t e recogni5e% lea%ers in &&( a%visor)4 Investment banks ave increasingl) participate% %irectl) in "BOs2 spino''s an% bri%ge loans2 o'ten b) taking t eir own investment stake 1known as merc ant banking34 +o$r %$ties co$l% involve anal)5ing t e appropriate 'orm o' participation4 -;pect to start r$nning lots o' val$ation mo%els on sprea%s eets an% gra%$all) get more client 'oc$s as )o$ progress4 Pro'ect Finance 8ro/ect 'inance involves '$n%ing in'rastr$ct$re an% oil capital

pro/ects o'' o' a compan) or government0s main balance s eet4 Banks likeCre%it S$isse an% !e$tsc e Bank are active in t is area4 8ro/ect 'inance% %eals ave been some o' t e 'irst signi'icant con%$its o' 'oreign capital into co$ntries s$c as C ina2 +emen an% In%onesia4 = en ot er so$rces o' borrowing %r) $p2 pro/ect 'inance is generall) still t ere4 +ra#ing Some o' t e most %esirable /obs in investment banking are in sales an% tra%ing4 +o$r responsibilities wo$l% involve $n%ertaking transactions in e.$ities2 bon%s2 c$rrencies 1re'erre% to as Fore; or FB32 options or '$t$res wit tra%ers at commercial banks2 investment banks an% large instit$tional investors4 Tra%ing can be t$m$lt$o$s an% re.$ires a t oro$g knowle%ge o' markets2 'inancial instr$ments an% an int$ition 'or $man ps)c olog)4 -.$ities tra%ing positions o'ten involve 7telling a stor)7 to ot er tra%ers abo$t w ) t e) s o$l% p$rc ase )o$r stock4 Fi;e% income tra%ing positions call 'or strong anal)tical know- ow an% t e w erewit al to manage large amo$nts o' inventor) in an o'ten-t in market4 !erivatives tra%ers nee% ver) strong anal)tical know- ow 1per aps

even an engineering %egree34 Foreign e;c ange tra%ing is base% more on )o$r instincts abo$t markets2 politics an% macroeconomics4 T ere are a variet) o' ot er t)pes o' tra%ing /obs in agenc) sec$rities2 commercial paper2 repos etc4 1Fin% /obs like t is3 "tructure# Finance 8ositions in str$ct$re% 'inance involve t e creation o' 'inancing ve icles to re%irect cas 'lows to investors 1known as assetbacke% sec$rities34 T)pical assetbacks sec$riti5e cre%it car% receivables2 a$to loan receivables or mortgages4 T is market 'ell into some %isrep$te in >??@ as one t)pe o' assetbacke% sec$rit)--collaterali5e% mortgage obligations 1C&Os3-sprea% t e pain o' t e b$rst real estate b$bble 'ar an% wi%e2 b$t t e $se o' str$ct$re% ve icles generall) is likel) to s$rvive an% event$all) t rive again4 Ot er growt areas incl$%e assetbacke% commercial paper2 collaterali5e% bon% obligations 1CBOs32 an% repackage% asset ve icles4 It wo$l% be bene'icial to ave a soli% combination o' sprea%s eet2 acco$nting an% legal skills4 &ost st$%ents coming o$t o' sc ool know ver) little abo$t t is areaC so )o$ can get an e%ge b) e%$cating )o$rsel' b) rea%ing articles in t e area an% picking $p lingo like 7earl)-am risk7 'rom talking to market participants on in'ormational interviews4 1Fin% /obs like t is3

-erivatives !erivatives %erive t eir val$e 'rom anot er primitive sec$rit)4 Options2 swaps an% '$t$res are e;amples o' %erivatives4 T e market 'or %erivatives is gigantic an% s$b/ect to increasing scr$tin)4 T e %erivatives b$siness is ig l) pro'itable an% t e %eman% on =all Street 'or skille% %erivatives practitioners as been ver) ig 4 T is market is likel) to see '$rt er innovation in t e 'orms w ic swaps take an% in t e area o' e;otic options4 T is will create '$rt er speciali5e% /ob areas4 I' t is area interests )o$2 start st$%)ing mat 1especiall) stoc astic %i''erential e.$ations an% %erivation o' common mo%els like Black-Sc oles34 D$estions abo$t mo%els are likel) to come $p in interviews4 Sales skills are also important in t is area4 (not er relate% wor% )o$ will ear is 7str$ct$re% notes47 ( str$ct$re% note mig t be a 'oreign e;c ange loan2 'orwar% or '$t$res contract wit b$ilt in options str$ct$re% to a client0s nee%4 So2 'or e;ample2 a client t at will no longer be worrie% abo$t t eir position once t e +en 'alls below @E to t e %ollar co$l% b$) a 7knock-o$t7 option on a 'orwar% t at will not be active once t e )en,%ollar rate 'alls below a 'loor4 ( relate% an% pop$lar area is cre%it %erivatives w ic mig t involve selling an option w ic pa)s o'' w en a %e'a$lts on one o' its %ebt obligations4

A#visor& (%visor) services are o'ten provi%e% b) investment banks to p$blic an% private clients involve% in &&( an% 'inancings4 T e areas o' capital str$ct$re a%visor)2 val$ation a%visor) an% risk management a%visor) ave been pop$lar at man) investment banks4 O'ten work will be %one to %etermine a client0s val$e2 options 'or creating val$e or on a client0s in%$str) con%itions4 E.uit& an# Fixe# Income Research Sec$rit) anal)sts are $s$all) assigne% to an in%$str) or region4 +o$ co$l% be responsible 'or making b$) or sell recommen%ations to investors abo$t a stock or bon%4 +o$r %$ties wo$l% involve visiting companies an% eav) telep one contact wit instit$tional investors4 Investment banks o'ten like to ire people wit in%$str) e;perience into anal)st positions 1as oppose% to 'res &B(s or $n%ergra%s34 For e;ample2 i' )o$ were a resta$rant e;ec$tive )o$ co$l% probabl) get ire% as a resta$rant in%$str) anal)st wit a ealt ) pa) raise4 6nowing t e b$siness2 being able to talk to clients well an% aving goo% 'orecasts are ke) in t is position4 +o$ want to elp )o$r 'irm avoi% t e %rea%e% =orst (nal)sts list4 (nal)sts are o'ten re'erre% to as eit er .$ants or '$n%amental anal)sts4 F$n%amental anal)sts make recommen%ations base% on w at0s going on at a

compan)-- ow0s t e C-O2 w at are t e earnings etcF In contrast2 .$ants look at comp$ter programs t at i%enti') $n%erval$e% sec$rities2 markets or even w ole co$ntries4 T ere are 'ewer .$ant /obs2 b$t t e) o'ten pa) more beca$se t e re.$ire% mat ematical an% tec nical skills are ar%er to 'in%4 1Fin% /obs like t is3 International "ales/Emerging Markets (n area o' contin$e% growt is in international sales4 !espite man) past %isasters like t e (sia crisis in GAAH2 investor %eman% 'or sec$rities iss$e% in emerging markets t)picall) comes back strong4 Firms are meeting t is %eman% b) provi%ing sales personnel an% anal)sts speciali5e% in t ese markets4 (not er area o' ig %eman% is in emerging markets s$c as T ailan% or &e;ico4 Firms are looking 'or people wit speci'ic lang$age skills2 a willingness to travel an% knowle%ge o' t ese emerging markets4 +o$ can o'ten rise ver) .$ickl) in t is area2 even i' )o$ are .$ite )o$ng4 B$t e;pect ig risk4 -vents like t e #$ssia %e'a$lt in GAA@ ave istoricall) triggere% e;treme volatilit) in emerging market bon%s2 an% correspon%ing la)o''s among t ose w o elp iss$e an% sell t em4 ( great place to track goings on is t ro$g Bloomberg0s web site4 1Fin% /obs like t is3 Pu%lic Finance T e market 'or m$nicipal bon%s

is ver) large an% calls 'or anal)sts2 m$nicipal a%visors an% tra%ers4 8ositions in p$blic 'inance are $s$all) %i''ic$lt to obtain b$t o''er ig rewar%s4 8ersons wit previo$s e;perience in p$blic a%ministration wo$l% be attractive to investment banks in t is capacit)4 ( ma/or growt area in m$nicipals is in t e pro/ect 'inance area4 1Fin% /obs like t is3 Retail Brokerage / Private Client Coverage / "tock%roker 8rivate Client Bankers , brokers are in t e b$siness o' selling stocks2 bon%s2 ins$rance an% ot er investments to in%ivi%$als4 Some brokers speciali5e in ig net wort in%ivi%$als w ile ot ers span a variet) o' clients4 T is is a to$g b$siness to get starte% in 1especiall) i' )o$ are m$c )o$nger t an )o$r clients32 b$t t e rewar%s to a goo% people person wit great sales skills are ig 4 &an) brokers earn $pwar%s o' IE??2???4 Tr) to start wit a 'irm like &errill ")nc t at as a goo% training program4 1Fin% /obs like t is3 Institutional "ales In instit$tional sales )o$ wo$l% be responsible 'or conve)ing in'ormation abo$t partic$lar sec$rities to instit$tional investors4 +o$ wo$l% be likel) to ave eav) contact wit port'olio managers an% )o$r own 'irm0s anal)sts an% tra%ers4 Sales skills an% pro%$ct knowle%ge are cr$cial in t is area as is t e abilit) to get t ro$g to b$s) instit$tional investors4 =orking

in sales 'or an investment bank 1on t e sell si%e3 is o'ten goo% preparation to move over to t e b$) si%e 1ins$rance companies an% m$t$al '$n%s34 Bot t)pes o' /obs can be br$tal an% s$b/ect )o$ to ab$se4 ( common =all Street Joke9 = at0s t e %i''erence between a sell si%e an% a b$) si%e pla)erF (nswer9 On t e sell si%e t e) c$rse )o$ onl) a'ter t e) ang $p t e telep one4 Taking ab$se can be l$crative4 T e average salaries in instit$tional sales can e;cee% IHE?2??? per ann$m4 1Fin% /obs like t is3 I+ an# "&stems

World's Largest Trading Floor UBS, Stamford CT

Some o' t e best /obs in comp$ters an% in'ormation s)stems are on =all Street4 ( 'irm wit goo% tra%ing so'tware2 pricing so'tware2 or back o''ice so'tware can get a strong competitive a%vantage4 &i% si; 'ig$re salaries are not $ncommon 'or goo% s)stems people4 1Fin% /obs like t is3 ( 'ew s)stem arc itects wit skills in partic$larl) ig %eman%2 like t ose t at b$il% t e big banks0 ig 're.$enc) tra%ing programs2 ave been known to make in t e low seven 'ig$res4 Ratings Anal&st One wa) to break into investment banking is to start as a ratings agenc) anal)st4 T e pa) is relativel) low an% a%vancement opport$nities aren0t great2 b$t t e investment banks know it an% $se t e agencies as $nting gro$n%s 'or new anal)sts4 T e two largest agencies are &oo%)s an% Stan%ar% an% 8oor0s4 (s o' mi%->??A2 &oo%)s a% over G2??? anal)sts an% S&8 rate% IJ> trillion wort o' sec$rities4 T ese ig l) pro'itable agencies gra%e t e cre%it .$alit) o' companies an% sovereign entities accessing t e markets4 &ost o' t eir reven$e comes 'rom 'ees pai% b) iss$ers4 T ere is ig %eman% 'or persons w o can rate corporate bon%s an% str$ct$re% 'inance intelligentl)4 7=e are not a$%itors an% we %on0t $se lie %etectors2 so it0s $p to o$r anal)sts to be smart eno$g to

ask t e rig t .$estions27 sa)s -%war% -mmer2 e;ec$tive managing %irector an% ea% o' S&80s corporate ratings %epartment4 Bot agencies ave s$''ere% acc$sations o' con'lict o' interest - an% ave 'ace% reg$lator) attention - 'or giving ig ratings to mortgage-backe% sec$rities t at s$bse.$entl) $nravelle% in >??@,?A2 contrib$ting to t e nearimplosion o' t e banking s)stem4 Conse.$entl)2 t e big agencies0 competitors2 incl$%ing ot er agencies like Fitc an% smaller in%epen%ent researc provi%ers like Cre%itSig ts2 ave consoli%ate% t eir market gains4 *onet eless2 &oo%)s an% S&8 ave s$rvive% similar crises in t e past involving sec$rities t e) rate% ig l)2 incl$%ing t e collapses o' -nron an% =orl%com4 (s long as t ir%-part) ratings are $se% to at least partiall) %e'ine t e risk in ma/or 'inancial instit$tions0 port'olios an% t e) still are - rating agencies will e;ist4 1Fin% /obs like t is3
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