Careers in Financial Markets 2007-2008

Investment banking is a hot career choice –

how are you going to stand out from the competition?
Gaining an edge to secure that coveted position is crucial for developing a successful career in
investment banking and related fields. The decisions you make before you even go on your first
interview will shape your career path and determine your chances for success. This edition of
Careers in Financial Markets gives you a window into Wall Street careers and offers up the kind of
real world advice and inside view that you can’t get anywhere else.

Careers in Financial Markets gives you

the competitive edge with:

• Sector profiles that feature descriptive overviews and trends for 21 different career paths
• Career profiles of professionals working in various sectors with valuable advice
• Tips for finding a job that is tailored to life on The Street and how to get in
• Career management articles that help you map out your career path to the senior ranks
• Industry trends to allow you to gauge who are the big players and who’s hiring and 2007-08
who’s firing
• Glossary and resource guides to keep you on top of the latest lingo, and highlight
key publications to read and organizations to join
• Employer profiles which provide a snapshot of who’s hiring in what areas
Your guide to finding a job in securities and banking

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Welcome
Welcome to the third edition of Careers in Financial Mar-
kets, from eFinancialCareers.com.
Investment banking is one of the most popular career choic-
es among today’s very best graduates and MBAs, so the
competition to secure that all-important first foot in the door
is intense. The aim of this guide is to offer you real insights
into the world of Wall Street and the securities business,
and to give you the knowledge you need to stand out.
As you develop your career, we hope eFinancialCareers.com
will be your online companion. We serve the global financial
community as the Web’s top site for career management
and jobs in the securities, investment banking and asset
management fields. Professionals from analysts to managing
www.efinancialcareers.com
directors at the world’s leading investment banks, hedge
funds, ratings agencies and trading firms rely on us every day.
In addition to job listings, eFinancialCareers.com provides pre-
mier job market and pay analysis, employment advice and a
series of tools to help you maximize your career opportunities.
One such tool is our series of career guides, including the U.S.
and U.K. editions of Careers in Financial Markets and their
sister publications Careers in Accounting and Finance (U.K.), le
Guide des Carriéres en Finance (France), and Karrieren in der
Finanzwelt (Germany). These unique guides profile the current
trends, career paths, top players and skills required for the
principal financial professions.
If, having read this guide, you’d like to learn more about the
industry, conduct some pre-interview research, or simply
post your resume for your next job, come and visit us at
eFinancialCareers.com. Be sure to check out our Campus
Connection, which provides news, tips, background and
other information especially for business students.
With best wishes for your career,
Mark M. Feffer
U.S. Editor, eFinancialCareers.com
www.efinancialcareers.com
Contents
Welcome 1 Human Resources 44
Table of Contents 2 Legal 46
How to Use This Guide 3 Information Technology 48
Marketing and Public Relations 50
Ratings Agencies 51
Overview
A Career in Investment Banking 4 Information Providers 52
The Global Private Equity Club
and How to Get In 7
Finding a Job
Trends 8
The Campus Recruitment Process: A Survival Guide 54
A Guide to Graduate Training Programs 57
Sectors Interview Insiders: Know Your Q & A 59
Mergers and Acquisitions 10
Demand High for Qualified Grads 60
Debt and Equity Capital Markets 12
Sales and Trading 14
Managing Your Career
Research 16
Managing Your Career 62
Quantitative Analytics 18
Voices of Experience 65
Alternative Investments 22
Take the Offer and Run 66
Foreign Exchange 24
How the Right Recruiter Can Push Your Career 67
Fund Management 26
How to Blow Your Career in 90 Days or Less 68
Corporate Banking 29
‘Managing Up’ is a Key to Promotion 69
Private Banking and Wealth Management 30
What it Takes to Make Managing Director 70
Operations 32
Effective Networking 71
Investment Consulting 34
Recruiter Q&A 73
Private Equity 36
Building Effective Relationships with Mentors 74
Global Custody 38
How to Face Trader’s Trauma - Then Trade Some More 75
Risk Management 40
Don’t Underestimate Your Alumni Network 76
Compliance 42

Careers in Financial Markets is published by eFinancialCareers Ltd, www.efinancialcareers.com

Editor: Mark Feffer; Design & Production: Michael Ballou Dudley; Marketing: Maria Slabaugh
Writers: James A. Ambrosio, Caren Chesler, Dona DeZube, Maureen Nevin Duffy, Carol Gray, Jon Jacobs, Emma Johnson, Scott Krady, Lena Quek, Myra Thomas
Additional copies: cs@efinancialcareers.com +1 800-380-9040; ©2007-08 eFinancialCareers Ltd; no part of this publication may be reproduced without permission
 www.efinancialcareers.com

Employers How to Use This Guide

For Diversity, Banks Chase the Same Talent 78
Careers in Financial Markets is designed to be used in conjunction
Going Global 79
with eFinancialCareers.com, where you’ll find up-to-date pay and hir-
Employer Essentials 80 ing news, career advice and information on employment trends in the
Employer Profiles 81 financial markets. This guide will ground you in the securities industry’s
different sectors and provide background information on available
Resources 84
career paths and the skills you’ll need to be successful.
Glossary 86
To be credible at interviews, you have to know the difference between,
Facing a Great Future 88 say, global custody and private equity, or risk management and compli-
ance. That’s why our Sectors section reflects the range of professions
and skills needed for each area. The Overview presents trends and
career paths across the industry as a whole and investment banking in
particular. Finding a Job provides tips for identifying and landing not
just your first job, but the right first job, while Managing Your Career
explores strategies and tactics to help you move steadily up the ladder
- and to the top. Finally, the Employers section outlines the major insti-
tutions now looking to hire the best talent.
I hope this guide will inform and inspire you for your financial career.
And, I hope you’ll use eFinancialCareers.com as you build your success.
If you have questions or comments, please be sure to let us hear from
you.
Sincerely,

Jon Jacobs
Staff Writer
eFinancialCareers.com

Careers in Karrieren in der Guide des

Financial Markets Finanzwelt Carrières en Finance
Your guide to finding a job in banking and finance Ihr Ratgeber für den Einstieg in die Bank- und Finanzwelt Banque, assurance, comptabilité, audit et systèmes d’information

2007-08 2007-08 2007-08

The Financial Job Marketplace Die Finanz-Jobbörse La place de marché de l'emploi en finance
 A Career in Investment Banking
Is there any such thing as typical?
Each investment bank has its own personality. Some see
themselves as cutting edge while others pride themselves
on tradition. Some celebrate the art of the deal, while oth-
4 ers laud diligence. Many have tens of thousands of employ-
ees in offices around the world, and some measure their
staffs by the dozen and work out of a single office suite.
Despite such differences, most share a common approach
to their organization. So no matter where you work, you’ll
probably encounter a similar retinue of job titles in similar
spots on the organization chart.
Analyst
The first rung on the investment banking ladder is the
analyst, and it’s in this position that graduates invariably
begin their careers. In the language of investment bankers,
“analyst” is simply another way of saying “trainee.”
The work analysts do varies from division to division. In
corporate finance, analysts are the number-crunchers who
study a firm’s financial reports and put together “pitch
books” - the company and sector research that helps a
bank win business. In sales, analysts hit the phones, calling
(relatively unimportant) clients on various (non-crucial) mat-
ters. Analysts assigned to the trading floor can’t trade until
they’ve passed their regulatory exams. Once they have,
they’re still heavily constrained until they prove they’re not
going to press the wrong button and lose millions.
Most banks keep analysts in place for three years, then
decide whether or not to renew their contracts. Of course
at that point, analysts have the option of deciding whether
they want to stay on or make their way in another firm.
Analysts being considered for promotion must demonstrate
an aptitude for leadership, the ability to present their point
of view persuasively - even when it’s contrary to the views
of others - and an understanding of the needs and motiva-
tions of both their firm and its clients.
Associates
“Associates” are analysts who’ve made the grade, or busi-
ness school students who’ve joined the bank after earning
their vaunted MBA. Typically, associates manage and
allocate work to their own teams of analysts. Here again,
they usually hold their position for three years.
Vice Presidents
Successful associates move into the role of vice president,
and it’s at this level life starts to get exciting. While the title
may sound daunting, don’t be deceived: Any large invest-
ment bank has scores of VPs in its ranks.
Vice presidents in corporate finance manage the day-to-
day affairs of associates and analysts and usually have
more frequent contact with clients. Those working in sales,
trading or research often have their own book of customers,
more flexible risk parameters when trading, or their own list
of companies to research. Because sales people and traders
work on their own, exceptionally talented trading-desk VPs
can make more money than their firm’s managing directors.
At this level, career transitions are more difficult. So, many
VPs will stay in place for longer than the typical three
years. Those who don’t progress at one bank often jump to
another, where they can join at the next rank: director or
executive director.
Director or Executive Director
For directors and executive directors - the titles are used
interchangeably - the top rung of the ladder is within reach.
These men and women are the right hands of investment
banking’s leaders, the managing directors. In corporate
finance, executive directors help MDs handle relationships
with client companies. In sales and trading, they call bigger
and more important clients and place ever larger trades.
Managing Directors
At the upper echelons of the investment banking hierarchy
are the managing directors. These are the rainmakers who
work directly with clients and bring in business. As hap-
pens in any pyramid structure, few of those who started as
analysts will make it to this level. One large bank promotes
only six to eight percent of its directors to managing direc-
tor each year. At Goldman Sachs, the ratio of employees to
managing director is roughly 20 to 1.
At the end of the day, individual performance, revenue
generation and client service are keys to moving up the
investment banking ladder. How long should it take? It’s not
unreasonable for a hungry new analyst to become a manag-
ing director by his or her early thirties.
Careers in Financial Markets 2007-08
125934_1_v1 1
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 American Capital Strategies, Ltd. (Nasdaq: ACAS) has been an innovative leader
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American Capital and the funds it manages have invested approximately $18 billion
in over 350 portfolio companies in virtually every industry sector. We are the
only alternative asset management company that is a member of the S&P 500,
the largest U.S. publicly traded private equity firm and one of the largest publicly
traded alternative asset managers. The Company’s diverse portfolio is invested in
virtually every industry sector. We have built an institution with one of the best
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exit alternative investments.

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This announcement is neither an offer to sell nor a solicitation to buy securities. This announcement appears as a matter of record only.

The Global Private Equity Club and How to Get In
Breaking in is tough, but the payoff can be substantial
Private equity funds are the kings of the capitalist system.
With hundreds of millions -often billions - of dollars to
invest, they specialize in buying out large established com-
panies, improving them and then selling them.
People who work in private equity can make incredible
amounts of money. They also benefit from the kind of job
security most investment bankers only dream of. But if
you’re attracted to a career in the field, don’t think finding a
job is easy.
Lucky Few
“Private equity is one of the most popular career destina-
tions at this point in time,” says Tim Butler, director of
career development programs at Harvard Business School.
“It is also one of the most competitive, if not the most
competitive, industries to get into.”
Guy Townsend, managing director of Walker Hamill, a
London-based firm specializing in private equity recruitment
across Europe, says most people haven’t much of a chance.
“You need a top-class degree from a top school. If you’re com-
ing from banking, you need to work for a top-quality name,
and you need to be ranked at the top of your peer group.”
If you’re one of those few, how do you maximize your
chances of success? It all depends on where you’re based.
But on the whole, experts give the same message to every-
one: excel.
Start Young
When it comes to breaking into private equity, the English-
speaking world has an advantage: U.S. funds hire junior staff
on an annual basis, and UK funds increasingly do the same.
There are two common entry points: two to three years into
a first job after college graduation, or immediately after
earning an MBA.
The first option is best but doesn’t guarantee a job for life.
Funds typically hire with two-year contracts and then send
junior recruits to study for their MBA, with no guarantee
of being rehired. On the other hand, if you delay your initial
move until after you’ve received your MBA, you risk being
trumped by rivals who’ve already gotten experience in
the business.
The Carlyle Group, the giant PE fund with more than $58
billion under management, hires 15-20 associates per
Careers in Financial Markets 2007-08
www.efinancialcareers.com
year. Lori Sabet, managing director who oversees human
resources, says most come from investment banking or
strategy consulting. If you’re a banker, Sabet says you’ll be
well-placed with experience in one of four areas: corporate 7
finance, financial sponsors, leveraged finance or mergers
and acquisitions.
The MBA Springboard
If you plan to use the MBA track into private equity, be sure
to choose the right school. Blackstone Group presents to stu-
dents at just three schools: Harvard, Wharton and Columbia.
Harvard Business School claims that 11 percent of its
class of 2006 landed in private equity firms, up from seven
percent two years earlier. More than one in four founders of
existing PE and venture capital firms reportedly are gradu-
ates of HBS.
In 2005, Columbia Business School sent less than five
percent of its graduates into careers in venture capital
or private equity. Considering that most funds hire no
more than 10 people each, this was no mean feat. Regina
Resnick, Columbia’s head of the career services, points to
the school’s historic ties with the industry. It helps that big
names like Henry Kravis, co-founder of Kohlberg Kravis
Roberts, are alumni and have been known to run roundtable
discussions for students. “Private equity funds like to build
relationships with students before they hire,” says Resnick.
“It’s a very personalized process - they are not hiring in
great numbers and like to get to know people first.”
One of the best ways to approach a private equity firm is
through a fellow alumnus of your business school who’s
already inside, can provide introductions and perhaps even
act as your “champion.” What’s more, people in the field
often call upon alumni connections when sourcing deals.
The implications are clear: If you’re at the wrong school, your
chances of meeting the right people will be severely limited.
European Options
In France and Italy, job openings in private equity are rare,
although funds occasionally fill senior-level gaps with
outsiders.
In Germany, “you need to have had international exposure,”
says Jens Tonn, head of the German team at private equity
firm Candover. “English is essential: There are very few
independent German funds run by Germans.”
 Trends: A Cyclical and Highly Competitive Industry
Opportunities and volatility abound across financial services
A life on Wall Street may be many things, but sedentary it’s
not. In fact, words like “intense,” “dynamic” and “exhausting”
come to mind. Reach the office of managing director and you
8 can make a fortune and retire young. Be less than successful
at any point, and you’ll be crushed brutally and quickly.
Your success - or failure - depends on more than how
talented you are or how hard you work. Economic cycles,
market swings and a host of other circumstances subject
even well-planned careers to fits, starts and swings.
Only the Best Succeed
Bulge-bracket firms limit campus recruiting to a dozen or so
top colleges and MBA programs. Be prepared to demon-
strate facility in math or economics, even if neither was
your major. And tout your entrepreneurial bent, showing
initiative to take on projects that weren’t assigned to
you. Associates coming from top MBA programs will be
expected to possess the same skills, preferably combined
with work experience.
Investment banks pride themselves on being meritocracies.
Staffers don’t move up - or even keep their jobs - unless
they’re very good. Following annual reviews, firms like
Goldman Sachs or Morgan Stanley regularly cull at least
five percent of their least-performing employees.
Performance, however, doesn’t rule alone. Revenue is right
there alongside. Unless you bring in millions of dollars
and land the bonuses that go along with them, you won’t
become a multimillionaire. Although most investment
banks cap salaries at around $250,000, bonuses for top
performers add hundreds of thousands, or even millions, to
annual compensation.
“Financial service firms have suppressed salaries in favor
of performance-related bonuses for the last 20 years,” says
Alan Johnson, a New York-based compensation consultant.
“If you’re a senior person, less than 20 percent of your pay
is base salary, and the rest is down to performance. At
junior levels it’s likely to be 50-50.”
Hiring and Firing
The potential for phenomenal pay is the upside to a finan-
cial career. The downside is the omnipresent risk of losing
your job. Traditionally, financial firms have hired wildly when
business was good and fired just as wildly when results
turned down. The rash of layoffs in the years after 2000’s
burst dot-com bubble followed a manic hiring spree in the
late 1990s. In the early part of this decade, Merrill Lynch
reduced its headcount by 24,000 over two years. In April
2007, Citigroup said it’s eliminating 17,000 positions and
relocating 9,500 others from high-cost to lower-cost sites.
Here’s where your firm’s reputation comes in. Working for
companies with established brand names helps build an
impressive resume, leaving you better placed to find a new
job when it becomes necessary.
Graduate Recruitment:
A Variable Flow
The financial services industry’s cyclical approach to hiring
affects graduate recruits as well as undergrads. In tough
times, companies might cut recruitment to little or nothing
in some divisions. When business is good, graduate hiring
becomes a bonanza.
This year’s job market continues more than two years of
unprecedented growth along Wall Street and an accom-
panying demand for financial professionals. The Securities
Industry and Financial Markets Association reported that
broker-dealers doing business in the U.S. posted record pre-
tax profits of $33.1 billion for 2006. That represents an 88.2
percent increase over 2005, and eclipses the previous peak
of $31.6 billion set in 2000.
Although Wall Street’s hiring landscape still looks bright,
some in the industry suspect it’s being illuminated by a
late-afternoon sun.
Hot Sectors
Of course, the first step is to decide where you want your
career path to lead. Are you interested in fixed income?
Equities? Corporate finance? Choose carefully: We’re
talking about careers here, not simply jobs - and there is
a difference. Some sectors are healthier than others, and
some sectors are traditionally stronger than others.
Ted Moynihan, a partner with the management consult-
ing firm Oliver Wyman, suggests considering two things
when choosing where to work: the economic cycle and a
sector’s long-term growth prospects. “Different points of
the economic cycle will favor some divisions above others,”
he says. “However, several areas of the financial services
industry are benefiting from underlying structural growth,
regardless of the point in the cycle.”
Careers in Financial Markets 2007-08

So, ask yourself: Which areas are now experiencing either
long term or structural growth?
Private Equity
If hedge funds were the hottest place to be a financial
professional in 2006, private equity is the leading niche in
2007. A record $215.4 billion was raised by U.S. private
equity and venture capital firms in 2006, according to Dow
Jones Private Equity Analyst. Another $44.3 billion poured
in during the first quarter of 2007, some 67 percent above
last year’s record pace.
Fueled by these staggering sums, and further augmented by
bank credit, worldwide M&A activity reached $2.7 trillion
for the first six months of 2007, up 62 percent from a year
earlier, according to Thomson Financial. “The complex
nature of the merger and acquisition process is driving the
need for financial executives knowledgeable in this area,”
said Paul McDonald, executive director of Robert Half
Management Resources.
As with the largest hedge funds, private equity firms look to
investment banks as their “farm team.” They recruit people
coming out of programs as analysts or associates at big
Wall Street firms. And because private equity managers get
waist-deep in running the companies they invest in, these
roles usually require an MBA degree.
Hedge Funds
Hedge funds continue to be hot. Though your first job won’t
be as a hedge fund manager, the sector offers plenty of
opportunities for people to work in risk management, com-
pliance or information technology.
At junior levels, hedge funds want people who have
completed an investment banking analyst program or have
a few years as an associate under their belt, regardless of
whether or not they have an MBA. At more senior levels,
the funds seek bankers and research pros who have already
made the jump to the buy side. Having a feel for managing
a portfolio and understanding how to pick short positions
are two skills important for success at a hedge fund, says
Sandy Gross, managing partner and founder of Pinetum
Partners LLC, a retained search firm.
Structured Products
Structured products - such as complex “derivative instru-
ments,” meaning financial instruments that are based on
Careers in Financial Markets 2007-08
www.efinancialcareers.com
underlying stocks, bonds, currencies or assets - is another
hot area. It’s likely to remain one for some time, as institu-
tions and wealthy individuals continue to accumulate more
cash than stock and bond markets can comfortably absorb. 9
“Options” are simple examples of structured products.
These are instruments which provide buyers with the right
(but not the obligation) to purchase a particular financial
product - such as a stock - at a specified date and at a
specified price. A more exotic example is a “first-to-default
basket,” which allows buyers to hedge themselves against
market-to-market risk, as well as broader default risk.
More complex products usually spur a greater demand
for employees, both to work on existing products and to
develop new ones.
Those who ultimately want to work with structured prod-
ucts should train in sales, trading or capital markets roles.
Traders who work with structured products will typically
need a master’s degree, or even a Ph.D., in a mathematical
subject. Operations professionals could work in derivatives
as well, clearing and settling transactions.
Leveraged Finance
Recruiters also report interest in leveraged finance special-
ists. These are the folks who raise money for companies
that are considered below investment grade by ratings
agencies such as Standard & Poor’s or Moody’s. Usually us-
ing a company’s assets as security, leveraged finance teams
put together a debt package to meet the company’s needs.
Though demand is strong, most positions require at least
a few years of experience. Still, new graduates can work
their way into the sector by taking positions in credit analy-
sis, corporate banking or accounting.
Compliance
Greater scrutiny by regulators, especially in the U.S., has
prompted securities firms to hire more compliance staff to
help ensure their departments are adhering to the law in
both letter and spirit.
Some firms, such as Goldman Sachs and UBS, run graduate
training programs for compliance specialists. Other routes
into the area include law or the regulatory divisions of
large accounting firms, like PricewaterhouseCoopers or
Ernst & Young.
 Mergers and Acquisitions
Big deals, long hours, lots of travel – and lots of money
Specialists in mergers and acquisitions, or M&A, travel the
world to work on deals that reshape entire industries.
M&A is one of an investment bank’s core functions: to
advise client companies on whether to add businesses to
their portfolio of assets, sell off divisions or subsidiaries
they no longer want to own, or merge themselves entirely
with another company, either by acquiring the target firm or
10
selling themselves to it.
As a result, it would be more accurate to talk about merg-
ers, acquisitions and divestitures, since there are clearly
two sides to every deal and M&A advisors are employed
on both sides of the transaction. In some mergers, the two
companies involved join as equals. In other cases, M&A
bankers help their clients find buyers or sellers for business-
es that are of interest. In addition, companies are increas-
ingly being taken private in buyouts by private equity firms.
Regardless of what drives the deal-making, because M&A
specialists work on both sides of the transactions, they
work in a very lucrative business. And, it’s worth noting,
M&A activity has also exploded in recent years.
According to a February 2007 report from the accounting
firm PricewaterhouseCoopers, mergers and acquisitions are
at a six-year high. Dealogic, a financial information systems
company, calculates that deal-making among U.S. compa-
nies alone amounted to $429 billion worth of transactions
during the first quarter, and that globally M&A activity grew
15 percent to $1.13 trillion. Dealogic estimates that total
M&A activity will surpass the $4 trillion record of 2006,
which was also the most active deal-making year since
1999 - 2000.
What’s driving the urge to merge? Among other things,
there are the swollen bank accounts of private equity firms,
which seem to have a nearly inexhaustible supply of capital
available to finance acquisitions. Weary of the compli-
ance requirements of the post-Enron Sarbanes-Oxley Act,
public companies based in the U.S. are also more open to
be taken private in leveraged buyouts (LBOs) engineered
by private equity funds. Regardless of the reasons behind
the activity, this boom makes it a great time to be in the
advisory business.
Most large banks only become involved in deals worth
at least $150 million. Lower value transactions might be
handled by the M&A divisions of accounting firms, or by
middle market/boutique M&A firms that specialize in
smaller transactions or deals in a particular sector. Big
deals get the headlines in the financial media, but it’s the
numerous smaller deals, which occur on a regular basis,
that drive the business.
Whatever the size of the deal, M&A requires hard work. At
their client’s beck and call, the people involved are often in
their offices nights and weekends. Once a deal is underway,
junior bankers can expect to be busy assembling the reams
of financial information and legal documentation necessary
to get it done. Despite all this, M&A remains popular with
graduate applicants, particularly those earning their MBA,
because it can be lucrative even as they work their way up
the ladder of a firm.
Roles and Career Paths
Mergers and acquisitions is principally an advisory role.
When public companies announce they’re “exploring
strategic opportunities,” they’ve hired an investment bank
to advise them on a merger or acquisition. Rarely does the
work involve sprucing up existing operations.
Traditionally, M&A bankers advise clients on all aspects of
buying, selling, and merging with other companies. They’re
typically part of a broader corporate finance advisory team,
which also advises firms on how to raise the money needed
to finance a transaction. Among large investment banks,
a recent trend is for a separate unit to also participate
directly in the deal. Goldman Sachs Group became a leader
in this when it created its own private equity arm.
As a rule of thumb, the more senior you become in M&A,
the more contact you will have with clients. But as an
analyst, you’ll spend a lot of time working on pitchbooks,
which outline a bank’s ideas for a particular transaction (for
example, should the client buy company X or company Y
and, if so, how should the deal be financed?).
Analysts in the M&A division usually conduct basic industry
research and build the financial models used to price the
companies concerned. Associates, who are one level higher
in the banking hierarchy, oversee analysts’ work and check
that their models are correct.
A further rung up, vice presidents oversee the work of
analysts and associates, and often ask for the pitchbook to
be partially or completely rewritten - even if it means stay-
Careers in Financial Markets 2007-08

ing up until the early hours of the morning. Vice presidents
report to the directors and managing directors who are the
main points of client contact.
It’s not unusual for pitchbooks to come to nothing. Clients
may decide not to go ahead with the suggestions, or they
may engage a rival bank. When a pitchbook elicits a posi-
tive response, the M&A team moves into execution mode
- seeing the deal through to completion.
If you’re interested in pursuing a career in M&A, be diligent
and keep banging on doors. Bankers, after all, are busy
people. It’s critical to be a hard worker and a team player. It
also helps to be bright.
Job seekers should “find a firm where they really like the
people with whom they’ll work, and vice-versa,” one banker
told us. “Selecting a firm involves the age-old question of
finding that right fit for you.”
Skills and Qualities
• Appetite for hard work
• Analytical ability and statistical aptitude
• Ability to work well in a team environment
• Good communication skills and self-confidence
• Strong attention to detail
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Profile
Kip Clarke, M&A Segment Leader, KeyBanc
Capital Markets
What brought you to M&A?
I got into M&A because I was very interested in working with com-
panies that had to go through with important decisions and changes
that lead to increasing their value.
11
I started as a corporate strategy consultant at Booz Allen Hamilton.
While getting my MBA, I did an internship at an investment bank in
mergers and acquisitions. I liked that because it was more oriented
toward action and outcomes than toward the analysis and the plan.
After business school I worked several years at a regional investment
bank, and later at an M&A boutique that was acquired in 1996 by
KeyCorp, which is the parent of KeyBanc Capital Markets.
How has M&A changed over the course of your career?
The M&A business in the 1980s was about just advice, relationships
and information. Over the last 25 years it’s developed into acquiring
much greater industry expertise, and more recently it’s evolved into
acquiring access to capital, and acquiring access to the resources of
a large organization. Firms today are much bigger, much deeper than
they were 20 years ago.
What’s a typical day like?
A typical day involves several activities. We’ll propose ideas to com-
panies, and we’ll consider possible opportunities for our company and
our group that come in from a variety of sources. Then there is man-
aging and mentoring and working with my team - from coaching very
young bankers just out of college, to resolving differences of opinion
among executives over what courses of action to take. I also spend
time with clients executing transactions, and pitching new business.
What advice would you give students looking to go into M&A?
Learn how to write well and present well. People tend to confuse
investment banking with finance and accounting. But investment
banking and M&A work ultimately is about people and ideas and
persuasion, and it’s not so much about the numbers.
Employers look for leadership skills, maturity and teamwork. We’re
very big on candidates that have played team sports, are well-
rounded, have a sense of humor, take initiative, and have intellectual
curiosity. That could mean instead of spending a summer bartending
or being a lifeguard, maybe spend it backpacking around Europe, if
you can afford to do that.
 Debt and Equity Capital Markets
The ‘factory floor’ of the financial markets

Traded financial products are born in the capital markets ment banks act as the underwriters to create bonds and
divisions of investment banks. Bankers there produce the bring them to market.
securities used by companies and institutions who want to
Until the redemption date, the bondholder receives interest
raise money on the public markets. Their two main products
payments in return for the service of lending the issuer
are stocks, traded on the equity capital markets, and bonds,
money. Because these payments take the form of a fixed
traded on the debt capital markets.
cash sum paid at regular intervals, bonds are known as
Stocks, also known as shares or equities, are bought by fixed income products. Similarly, the bond markets can be
12
investors who want to share in the profits of a company known as the fixed income markets.
through dividends or the appreciation of the stock’s value. If
Capital markets divisions also issue more complex products,
the share price rises, investors can sell stock to other inves-
such as equity-linked securities - or bonds that can be con-
tors at a profit. If it falls, they might sell them at a loss. This
verted into equities at a pre-arranged price - and derivatives.
trading occurs in the secondary markets, and the company
itself doesn’t directly benefit. It’s raised the capital it needs ECM divisions and DCM divisions have traditionally been
through the shares’ initial public offering, or “IPO.” separate businesses. Recent years, however, have seen a
trend toward combining them into a single division.
Investment banks act as
“Eight of last year’s top “underwriters” on behalf of Global IPO activity grew 23 percent in the first half of 2007,
the company issuing stock. to a record $132 billion, according to Dealogic. The top
10 deals exceeded the They assume the risk of five underwriters of IPOs were J.P. Morgan Chase, Morgan
issuing the stock, and do the Stanley, Citigroup, UBS and Goldman Sachs. Paced by
$1 billion mark, and work necessary to bring it Blackstone Group LP’s $4.8 billion offering in June, financial
to market, in return for a fee sponsor portfolio companies tapped the market for $27.9
markets have become known as the underwriting billion during the period, up 38 percent from the first six
spread. The underwriting months of 2006.
increasingly global, with spread represents the differ- Growth in 2006 was strong as well. Proceeds to IPO issuers
ence between the price the
more total capital being issuing company receives
increased by 28 percent compared with 2005, according to
the accounting firm PricewaterhouseCoopers. The size of
for the stock and the price
raised in Europe than in at which it’s offered to
deals also increased dramatically; eight of last year’s top 10
deals exceeded the $1 billion mark. Markets have become
shareholders. In order to
the U.S.” spread the risk, particularly
increasingly global, with more total capital being raised in
Europe than in the U.S.
for large IPOs, investment
banks typically pool their resources, with one acting as the One of the trends driving the IPO market recently is in-
lead underwriter, which manages the deal. The fees charged creased buyout activity from private equity firms. These firms
from the offering are shared proportionately between the typically buy public companies using leverage - otherwise
underwriting banks based on a written agreement between known as debt - and take them private. After a period of
them. restructuring them outside of the glare of public-company
disclosure rules, they often return them to the public sector
Bonds are a form of debt. Like equities, they’re issued by a through an IPO, reaping a profit as they do. Such activity is
company or government in order to raise money. At some expected to continue to drive IPOs for the foreseeable future.
designated point in the future, the issuer has promised to In such cases, capital markets divisions handle the under-
pay the bondholders back. In the meantime, bonds can be writing, just as they assisted in the creation of the bonds
sold to other investors in the secondary bond markets. So, needed to take the target company private to begin with.
the bondholder who is eventually reimbursed is likely to be
different from the original buyer. As with equities, invest- Roles and Career Paths

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

Profile
If you work in the capital markets division of an investment Greta Kessel,
bank you could do anything from originating, to structur- Managing Director, JPMorgan Chase
ing, to syndicating. You could also work for a law firm that
specializes in securities law and handles the legal aspects How did you become a managing director?
of submitting registration paperwork and other tasks. I’ve been in investment banking at JP Morgan for 10 years now. I
started out in the New York office as a summer associate, and now
Origination specialists are usually senior capital markets
I’m a managing director in our Los Angeles office. I’m responsible
bankers. Their job involves a lot of travel as they meet
for the consumer and retail sectors. We work with smaller consumer 13
clients in an effort to gain insight into their financing needs
companies, which could include raising start-up capital. And we as-
and persuade them to offer up business to the bank. Es-
sist Fortune 100 companies in areas such as debt and equity financing
sentially, this is a senior level sales position.
and M&A. Before working in corporate finance I spent five years in
By comparison, general consulting after I graduated from college.
“If you work in the structurers are
Could you describe a typical day?
desk-bound. They
capital markets division spend their time There is no such thing as a typical day. It’s never the same. That being
said, I usually work on several live transactions with clients, whether
creating complex
of an investment bank financial products it be working on M&A transactions, financing or client marketing
activities, such as pitches. I spend the bulk of my time with clients,
to suit a company’s
you could do anything financing needs as meeting with senior officials - CEOs, CFOs, as well as deal teams
- those people who are involved in a corporate transaction within the
communicated by
from originating, the originators. company. In terms of my work load, I spend a lot of time in pitches
with a client or preparing for meetings. In most transactions, my
It’s up to the people
to structuring, to on the syndication
analysis consists of taking details from a model and figuring out a
solution. It might be to identify strategic alternatives for a client, or
desk to ready the
syndicating.” market for the sale.
figure out ways to increase shareholder value.
They calculate the What skills are critical in investment banking?
best price range for the product concerned, assess demand, Most important is the willingness to work hard. Investment bank-
and make sure the correct documents are in place. ing can be rewarding but you work a lot of hours. You have to give
100 percent, all of the time. In addition, you need to have a strong
Skills and Qualities analytical background. This is important in being able to think through
• Analytical ability and statistical aptitude various alternatives for clients. Of course, a strong foundation in
• Strong communication skills finance and accounting is critical. You can pick that up in school,
specifically in courses in mergers and acquisitions, accounting and
• Ability to manage multiple projects capital markets. You can also develop it through on-the- job training. I
• Perseverance relied heavily on JPMorgan’s training program, which included formal
and informal training on the job.
How can aspiring investment bankers get a leg up?
First, you should be reading the major financial and business publica-
tions. Develop an understanding of prevailing market trends, issues,
themes and current deals. School clubs that cater toward finance and
investments help you prepare for interviews, sample case studies,
and meet professionals in investment banking. It’s quite important
that you do your due diligence on the types of cultures at different
banks. You want to be aware of those differences and be a part of a
firm that you fit in.
Careers in Financial Markets 2007-08
 Sales and Trading
Fortunes are won and lost trading in the secondary markets
Every day, millions of financial products are traded in the
secondary markets. These provide a marketplace for traders
to buy and sell financial products after their initial issue.
(This is distinct from the primary market, which is where
brand new financial products are issued.) Salespeople
advise clients on investment opportunities in the second-
ary markets, while traders carry out the actual buying and
14 selling of securities.
Sales
Salespeople spend the bulk of their time working the
phones. They call clients from the moment the financial
markets open until the moment they close, as well as sev-
eral hours before and after. Clients can be high-net-worth
individuals, pension fund managers, other institutional
investors or corporate finance directors. Ultimately, sales-
people take orders for financial products and communicate
them to their trading desks for execution.
Salespeople have to be charming and persuasive - in short,
they need to be good at selling. Shrinking violets need
not apply. As a rule, their clients are knowledgeable and
sophisticated buyers of financial products. However, no
individual can be familiar with every possible investment
product, which range from stocks and bonds to deriva-
tives like interest rate swaps or credit derivatives. It’s
the salesperson’s job to introduce new opportunities to
customers, as well as keep them informed about changing
conditions that might affect the value of a security that’s
already in their portfolio.
Sales professionals typically start their day by reviewing
financial publications like The Wall Street Journal, along
with reports from their research staffs. They also listen in
on morning conference calls conducted by their research
departments, where they learn of upgrades or downgrades
to securities already covered, or of new issues being added
to the coverage list. All of this material becomes fodder for
the day’s sales calls.
The day usually doesn’t end just because the markets close.
Many investment sales professionals say the couple of
hours between the close and when clients start heading for
home are the best time to discuss strategies in detail. After
that, there are the dinners and entertainment with clients
that can stretch well into the evening hours.
Trading
Traders are the people who actually buy and sell products
on the secondary markets. They must make snap decisions
that can involve millions of dollars and earn substantial
profits in the process.
If you work as a trader, you’ll have to get up early to be at
your desk before the markets open. You’ll spend the rest of
the day sitting before an array of computer screens in the
company of scores of other traders on the trading floor. The
screens are a window into the financial markets, showing
movements in the prices of stocks, bonds, commodities
and other financial products, as well as real-time news and
research reports. At the touch of a button, traders can buy
and sell the products whose prices they’re tracking.
How trading desks make money - and how they make hiring
decisions - differs with each financial product. Trading of
fixed income products, derivatives, energy and physical
commodities like metals has been booming in recent years.
On the other hand, the ranks of equity traders are being
reduced as their jobs are replaced by electronic systems
that trade more quickly and efficiently.
Other Jobs
In between salespeople and traders exists a hybrid: the
sales-trader. Like salespeople, sales-traders call clients to
recommend securities. Like traders, they trade the securi-
ties once a sale has been made. However, recruiters say the
sales-trader role is gradually being phased out.
Firms - particularly larger investment firms - also employ
research-sales professionals, whose job is to sell their
employer’s research expertise. While investment sales pro-
fessionals and sales-traders will use the bottom line results
of a research report to pitch actual investments, research
salespeople must be intimately familiar with the details of
the analysis to be successful.
Roles and Career Paths
Traders and salespeople can be categorized according to
the products they trade, by the types of clients they sell
to, or by the sector they specialize in. For example, traders
might focus on foreign exchange, derivatives, corporate
bonds, government bonds, or any number of other products.
Careers in Financial Markets 2007-08

One salesperson might sell equities to pension fund inves-
tors, while another might focus on corporate bonds.
In addition, there are two fundamental types of trader:
proprietary traders and flow traders. Most traders are flow
traders, who buy and sell financial products on behalf of
an investment bank’s clients. Salespeople tell flow traders
what their clients want to buy and sell. In turn, flow traders
tell salespeople whether a particular trade is possible at a
particular price. Flow traders can also help guide sales-
people by keeping them informed of trading strategies and
the direction a market is headed in.
Once a client agrees to buy an instrument, flow traders are
obliged to make the trade at the price the client has agreed
to. If they don’t act quickly and the price rises, they will
have to sell the products to the client at a loss. On the other
hand, if traders buy at a price lower than what was quoted
to the client, the firm makes a profit.
A group of elite traders work on behalf of the bank. These
are the proprietary traders. They can make huge profits - or
considerable losses. It takes a stout heart and considerable
self-confidence to be a successful proprietary trader, but the
rewards for being a good one can be substantial.
Skills and Qualities
Sales
• Outgoing and self-confident
• Ability to grow and maintain client relationships
• Excellent communication skills
• Ability to understand complex products
Trading
• Passionate about financial markets
• Can function well under pressure
• Self-confidence
• Ability to think on your toes and react quickly to
changing market conditions
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Profile
Larry Levin, President, Secrets of Traders
What do trading desk managers look for in new hires?
They’re looking for someone with common sense, quickness - or an
ability to think through and do things efficiently and correctly - and
someone with a statistical mind, who’s always thinking about the
numbers, whether it’s how many customers we need to get in today
to make a profit, or watching a customer’s position and recognizing 15
whether it’s against them or for them. You also have to be good with
computers. You need to know about charts, and know good technical
analysis.
Trading is like any other business, and so you need to start at the
bottom. There is no easy road. You’d probably start as a clerk, where
you’re not trading your own money or the company’s money, not
making any decisions, but simply putting in orders for customers or
proprietary trading orders.
Where are the opportunities coming from today?
A lot of the proprietary trading companies are the places to be.
There’s one company here in Chicago that’s only hiring MBAs, and
they like training them themselves - even people with no trading back-
ground. There are a lot of arbitrage opportunities out there, and there
are companies taking advantage of that. A lot of traders who’ve done
well on the floor, and who have the computer skills, will get together
the computer people they need and try the entrepreneurial thing.
Today, the people who have a finance background in school, with
an appropriate internship or relevant first job, will certainly have a
better chance to acquire a job. Most of the trading jobs now, that are
hiring, are 99 percent off the trading floor. They’re in offices, trading
electronically. I wouldn’t be surprised if the trading floors went away
in three years.
Why has the nature of people being hired changed?
It’s simply because the trading has changed. It’s almost all computer-
driven today, and it’s so much cheaper - as far as transaction costs
and employee costs, whether you’re running a business in the futures
industry or with any financial instrument.
Trading experience goes a long way, and while I didn’t go to college,
most are looking for that today, as it’s a more competitive world out
there. When I first started, there weren’t computers on the floor.
I knew the important prices, but today charts are driving it. When
you’re a floor trader, you have the action, the noise, and the big
institutional firms doing things, and you follow that. When you trade
electronically, you don’t have any of that, and all you have are the
technical aspects - your math skills and your statistical skills.
 Research
Providing the fundamental analysis behind investment decisions
Investment analysts provide the fundamental research that
helps drive investment decision making on Wall Street.
While money managers and traders ultimately decide what
to buy and sell, the basis for those decisions frequently
starts with analysis provided by researchers at the major
investment banks, whose work may be supplemented by
internally produced research.
16
Research reports are valuable because they fill in informa-
tion gaps that can lead to inefficiencies in the market. With-
out a sense of a company’s fundamental value, investors
will tend to over or under value the firm’s stock. By provid-
ing the basic information investors need to make wise buy
or sell decisions, researchers help level the playing field.
Analysts who work for institutions like Goldman Sachs,
Merrill Lynch or Citigroup are said to work for the “sell
side” of the market. Their job is to produce research
reports, on industries and companies, which their employ-
ers can use as a basis for the investment recommendations
they make to their institutional and individual investor
clients. When the financial media reports that a firm’s stock
rose or fell due to a change in an “analyst’s recommenda-
tion,” the report is typically coming from a sell-side analyst.
The scandals that sprang from the technology and Internet
boom of the late 1990s and early 2000s tarnished the role
equity analysts play. The period’s strong bull market, rising
prominence of financial television programming, and bur-
geoning desire by formerly passive investors to trade online
converged to turn some analysts into media superstars.
While frequently appearing as television “talking heads,”
some of the best-known analysts were privately discounting
the worthiness of the stocks they publicly promoted. When
that came to light, their facade crumbled.
Soon after, investment banks moved to minimize conflicts of
interest by breaking the direct links between their analyti-
cal and banking teams. While stock analysts still appear on
financial television, they now always disclose whether they
have an ownership position in any of stocks they discuss.
Another change in the research world has been the rise of
independent firms that sell their analytical expertise alone,
without an investment banking component. However, to
date the success of such firms has been mixed. Those that
focus on a particular market niche, such as small capitaliza-
tion stocks or narrow industry subsets, have carved out a
business for themselves. The reason: Large Wall Street
firms tend to put most of their energy into following big-
company stocks that are heavily traded by their institutional
clients. Thinly traded small-cap stocks are usually ignored,
giving independent researchers a void to fill. Still, invest-
ment banking is a lucrative business, and industry observ-
ers say it is difficult - maybe almost impossible - for many
research-only firms to survive.
Research, it should be noted, doesn’t only happen on Wall
Street’s sell side. Hedge funds, mutual funds, pension funds
and other institutions on the “buy side” employ analysts to
ferret out investment and trading opportunities.
Another factor is that much of the sell side’s research
focuses on investors who are “long,” meaning they are
buying and holding positions for a period of time. Hedge
funds, in particular, can employ shorter-duration strategies,
like short-selling stocks they expect to drop, which calls for
a different analytical focus.
Finally, not all research professionals focus on equities.
Analysts are also employed to study instruments such as
corporate or government bonds, municipal securities, mort-
gage-backed securities and other credit derivatives.
Roles and Career Paths
Researchers spend their time scouring companies’ balance
sheets, talking to executives, and participating in confer-
ence calls where company leaders discuss their results
and future expectations. Researchers also analyze interest
rates, economies, and other areas that could provide insight
into the proper valuation of different financial instruments.
The natural career progression starts on the sell side,
where you’ll put in many days of long hours. From there,
you may try to move to the buy side via a hedge fund or
asset manager. Buy-side jobs provide more freedom and
flexibility. They can also be more enjoyable, because you’ll
be tasked with providing research that directly translates
into buy or sell decisions. Typically, buy-side analysts
receive bonuses tied to the performance of assets under
management. Because the buy side is very competitive, it’s
harder to break into.
Careers in Financial Markets 2007-08

Although buy-side firms have begun hiring more of their
own researchers, the sell side hasn’t gone away. Bulge
bracket firms like Goldman Sachs still produce the high-
est-quality sell-side research, but recruiters say most firms
haven’t grown their research staffs, and add that mid-tier
regional banks are beginning to cut or downsize theirs.
Some smaller boutiques are still in growth mode.
Lead analysts, whether on the buy or sell side, seldom get
hired without at least two or three years of experience,
beginning as a research assistant or junior analyst working
under the supervision of a more seasoned professional.
A lot of people break into the business beginning with an
internship.
“I always counsel students to take advantage of intern-
ship programs as much as possible,” says recruiter Edward
Storm of Comprehensive Recruiting in Phoenix. “Ninety-
nine percent of the time you won’t get hired without
experience, so seek out internships to get a foot in the door.
Even candidates with an MBA can be passed over because
firms will go with the people they know. Time is money, and
the less time spent training, the better, from the street’s
viewpoint.”
An exception to that rule can happen with candidates who
possess specialized industry expertise and are seeking to
become stock analysts. Storm notes he has been able to
place doctors or others with relevant pharmaceutical or
health-care related expertise directly into jobs analyzing the
healthcare industry.
Compensation ranges from a base $70,000 to $100,000
with bonuses of between $100,000 and $200,000 for entry-
level analytical positions, Storm says. Senior analysts can
expect to earn base salaries ranging between $125,000 to
more than $200,000, with bonuses ranging from $250,000
to $1.5 million.
Skills and Qualities
• Analytical and mathematical ability
• Accounting and financial statement analysis
• Strong written and oral communication skills
• Specific knowledge of markets and market segments
• Demonstrated interest in the investment process
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Profile
Lorraine Maikis, Senior Director, Fundamental
Equity Research Analyst, Merrill Lynch
What is the skill set an equity research analyst should have?
Financial and accounting skills are essential. As analysts, we’re
reliant on financial models to do company and industry analyses. This
includes looking at income-statement cash flows and the balance
sheet to get a better picture of a company’s performance and financial 17
health. These criteria impact a company’s stock price.
So, you must be able to build and run models and understand stock
valuation methods. Writing skills are also important because we com-
municate heavily with clients through our written reports.
As you move up in research, you need to develop presentation and
public speaking skills, since you’ll be interacting with others on a
daily basis, ranging from sales people to clients.
How would an aspiring research professional get started?
A love and understanding of the markets is important. The Wall Street
Journal and Barron’s offer insights into what’s happening in the world
of financial markets. The CFA program is very useful.
Could you describe your career path?
My career began at Price Waterhouse. I was an auditor, having
received a degree in accounting. After a few years there I wanted a
change and landed a position at Merrill Lynch. I worked as a junior
analyst covering environmental services - waste management compa-
nies, for example.
When my boss moved into a management role, I took over the
environmental services group. I covered environmental stocks, heavy
construction and homebuilding. Last year, my manager gave me the
opportunity to switch into a larger, more interesting sector, and I have
been covering specialty retail for a year now.
What is a typical day like as an equity research analyst?
There truly is no such thing as a typical day for me, which is re-
ally why I love this career. I speak on the phone and in person with
company managements, tour their facilities, and visit with clients. I
rely on many industry contacts that can provide me with a different
perspective, such as other retail specialists and industry experts.
I spend my time in the office reading through SEC filings and other
financial documents. I also perform modeling and stock valuation.
And we literally go to the mall and look at different retailers, checking
things like inventory levels, in-store promotions and sales trends.
 Quantitative Analytics
The brains behind financial models

In the international financial markets, successful trading Successful candidates in financial engineering are
strategies are devised by highly educated, highly intelligent extremely well-paid. Salaries start at six figures, and
professionals known variously as financial engineers, com- experienced professionals can command $250,000 per year
putational finance professionals or, more familiarly in the or more. They’re all highly qualified, but many employers re-
shorthand of Wall Street, “quants.” These are the people quire them to pass a rigorous vetting process including the
who create the financial theories, computer models, valua- verification of references and, ideally, published research
tion techniques and trading programs used by hedge funds, to point to. One recruiter who specializes in the field tells
18 investment banks and other market participants to exploit of one candidate she placed with a high-profile New York
opportunities that might be missed by average mortals. hedge fund. The job offer was rescinded after one of his
professors provided a less-than-glowing reference.
By and large, this terrain is occupied by people with
advanced degrees in disciplines such as physics, econom- “This hedge fund actually went through the trouble of
ics and computer science, or any of several mathematical contacting the professor that supervised his dissertation,
specialties such as multivariate calculus, linear algebra, rather than the professors he listed as references - and
differential equations, probability theory and statistical that professor was located in Brazil,” the recruiter said. The
inference. (If you’re scratching your head wondering what moral of the story: Make sure you have built strong relation-
those disciplines are about, then financial engineering is ships with your advisers and fellow researchers to go along
probably not the job for you.) Generally, these people also with your good academic record.
need to be familiar with the C++ programming language,
The job market for qualified quants is very good. During a
the most widely used in the field
panel discussion sponsored by the International Associa-
The fathers of computation- tion of Financial Engineers in April 2007, Alessia Falsarone,
“Successful candidates al finance are considered to
be the economists Myron
global investments analyst with Citigroup Global Wealth
Management, said, “There is a very strong, and increasingly
in financial engineering Scholes, Fischer Black and
Robert C. Merton. Scholes
strong, demand for quant skills - period.”
However, a crack in the armor appeared in the summer
are extremely well-paid. and Black are synonymous
with options pricing theory,
of 2007. As turbulence that started in a risky category of
mortgage bonds cascaded into other financial markets,
Salaries start at six fig- having developed the fa-
mous Black-Scholes equa-
some activities and institutions led by quants suffered
disproportionate damage. Among the most conspicuous
ures, and experienced tion. Their model provided
were quantitative hedge funds - investment funds that base
the fundamental conceptual
their investing and trading strategies entirely or primarily on
professionals can com- framework for valuing op-
computer models.
tions, and has become the
mand $250,000 per year de facto standard in the Several quant hedge funds reportedly lost as much as 20
percent of their value in the first two weeks of August
world’s financial markets for
or more.” valuing those instruments, alone. Goldman Sachs’ biggest hedge fund, the quant-driv-
en Global Alpha, fell about 15 percent from January through
whether they’re traded
on an exchange or over mid-August. Another loss-making Goldman fund had to be
the counter. Scholes was bailed out to the tune of $3 billion by the bank and some
awarded the Nobel Prize in Economics along with Merton in big-ticket investors.
1997. (Black died in 1995.) Merton’s work built upon the ef- A second market sector that had been a haven for quants
forts of Black and Scholes. He’s also credited with being the also came under a cloud: Structured bonds were among the
first person to start recruiting math and finance academics first financial markets to feel the chill. With risky types of
to work on Wall Street. credit investments suddenly falling out of favor, the busi-

Careers in Financial Markets 2007-08


ness of repackaging these bonds into more complex instru-
ments, such as collateralized debt obligations (CDOs) and
collateralized loan obligations (CLOs), pulled back sharply in
July and August.
Wall Street desks that invent, assemble and trade these
complex credit derivatives have long been a prime source of
demand for quant talent. Although the market turmoil didn’t
immediately dent hiring, the longer the structured credit
and quant hedge fund areas remain under pressure, the
likelier that headcounts and pay will be affected.
Roles and Career Paths
If you become a quant, much of your time will be spent
developing, programming and updating financial models.
When just starting out, you may be required to work com-
pletely by yourself, spending long hours building models
from scratch and coding for several hours straight.
Good communication skills are also helpful, however. A
quantitative professional can be viewed by other members
of a firm as a resource who can explain to laymen why and
how their models work. Plus, after long hours programming
complex models, you’ll need to ask colleagues to review
your efforts.
Quantitative analytics is one area where a candidate with a
doctorate isn’t considered to be overqualified, though such
an advanced degree isn’t always necessary. A master’s
degree in the appropriate discipline can also suffice. Falsa-
rone, for example, holds a master’s in financial mathematics
from Stanford University. Peers who pursued doctorates,
she said, did so to give themselves more time to settle on
what they wanted to do rather than to land a better job.
Unlike with MBA candidates, the pedigree of your college
isn’t always viewed as a hiring advantage. It’s more impor-
tant to demonstrate you have the skills needed to succeed
in the job.
Skills and Qualities
• Advanced degree in mathematics, economics, physics,
computer science or similar disciplines
• Ability to program complex financial models
• Good communication skills
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Profile
Savita Subramanian, Head of U.S. Quantitative
Strategy, Merrill Lynch
Could you describe a typical day?
On a day-to-day basis, my work consists primarily of building models,
which requires experience with model inputs, construction and
attention to detail. The most important skills are an understanding
of financial concepts coupled with quantitative skills. You work with 19
data regularly and must be in step with interpreting and managing it.
Next, we have to come up with investment ideas for our customers.
We look for pricing inefficiencies in the market and unique strategies
for stock investing that we can share with the firm’s clients.
Finally, we talk to clients about different trading ideas and strategies.
This is often the most rewarding part, because clients’ input often
points us toward ideas and relevant strategies. Now, as lead analyst,
I also am cultivating my managerial skills, whether it comes to hiring
or day-to-day management.
I still keep trying to come up with ideas, and work with our sales
team to communicate equity strategies to Merrill’s clients. We’re
also building new models, for example, how to pick stocks in specific
industries that are adaptive to changing investment environments.
We have to constantly monitor the models’ continued efficacy. I
generally spend a third of my day writing research for clients, a third
engaged in client interaction, and a third conducting the analysis.
What advice would you give to potential
Quantitative Strategists?
Find a firm with good mentors and a willingness to develop and invest
in them. The typical track is focusing on a quantitative discipline in
college, such as engineering, mathematics or statistics. Next, work
for a few years and then go back to school for a master’s or Ph.D.
There are many Wall Street firms that are actively seeking Ph.D’s
in finance, economics or specially tailored mathematics in finance
programs.
Are there specific resources you recommend?
Some publications I would recommend include the Financial Analyst
Journal and the Journal of Portfolio Management. There are also
conferences and organizations you can participate in. The SQA, or
Society of Quantitative Analysts, holds events that are focused on
topics in quantitative finance like modeling risk, portfolio construction
and optimization, building factor models and the like. The CFA (Char-
tered Financial Analysts) Institute is a great resource too, for both
conferences and interesting papers. And keeping in touch with what
academics are doing is useful in staying ahead of the curve.
Join
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 Alternative Investments
The megabucks world of hedge funds
The term “hedge fund” is based on the idea that money
managers can hedge their bets to ensure a profit, regard-
less of whether the market goes up or down. Though in
recent years, hedge funds have become more popular than
ever, the first was created more than 50 years ago: In 1949
money manager Alfred Winslow Jones began short-selling
stocks while buying others to offset his risk.
22
Hedge fund managers balance their exposure by using
options or futures, simultaneously holding long positions
while also short-selling, and other techniques. What distin-
guishes them from traditional mutual fund managers is their
willingness to push the boundaries of normal investment
techniques in a quest for unusually high returns. In addition,
they’re set apart by the amount of regulatory scrutiny they
face - or the lack of it, some might say.
Mutual funds are widely available to the general public and
must register with the government under the Investment
Company Act of 1940 and the U.S. Securities Act of 1933.
Thus, they’re subject to rigorous oversight by the Securities
and Exchange Commission. Hedge funds, by limiting their
investors to institutions like pension funds, endowments
and wealthy individuals that meet the definition of “quali-
fied investor” under securities law, are often exempt from
such oversight. In addition, hedge funds are limited to hav-
ing 99 such qualified investors, each of which is a “limited
partner.” So, they’re considered private pools of capital.
For all that, it’s not wholly accurate to say hedge funds are
totally unregulated, since the securities they buy and sell
are generally subject to government scrutiny.
Most hedge funds follow a particular investment strategy.
The most popular are:
• Short Selling: Short sellers borrow assets they
believe are overvalued, then sell them. When the price
falls, they buy the instrument back at a lower price
and return it to the lender. Because they’ve sold high
and bought low, their profit comes from the difference
between the two prices.
• Global Macro: Instead of focusing on the move-
ments of particular stocks, global macro funds create
and manage their portfolios based on their reading of
worldwide political and economic trends.
• Event-Driven: Managers using this strategy aim to
profit from one-off events, such as mergers, acquisi-
tions or bankruptcies.
Hedge funds are considered risky because they put money
into illiquid investments and can hold long or short stock
positions. To counter this risk, some investors put their
money into “funds of funds,” which spread their money -
and supposedly, their perils - across several different funds.
Although hedge funds have enjoyed impressive growth
since the early 2000s, other investment vehicles have cut
into their popularity. Wealthy investors in particular can
now take advantage of private equity, long-only funds,
which offer competitive returns with lower management
fees. Private equity funds are behind the recent wave of
public companies whose shares have been “bought out.”
After these firms have been taken private, the wealthy and
institutional investors in their owner funds share their prof-
its. Later, these companies may be re-offered to the public
via an initial public offering, which provides another source
of profit for the investors.
In mid-2007, a number of prominent hedge fund and private
equity firms suffered well-publicized setbacks, sparking
fears that the long-running boom in both those sectors
might be coming to an end.
The problems emerged when two hedge funds run by Bear
Stearns that owned bonds built from mortgage loans were
largely wiped out as rising numbers of homeowners fell be-
hind on mortgage payments. Those fund blowups led Wall
Street and investors to frown on many other relatively risky
loans. In particular, lenders began shying away from weaker
corporate borrowers, and from hedge funds in general,
which typically make heavy use of bank debt to magnify
returns on the portfolios they hold. In turn, less-plentiful
credit could make it much tougher for private equity funds
to keep up their hectic pace of debt-financed acquisitions of
companies, known as “leveraged buyouts” or “LBOs.”
Hedge funds are still drawing top talent. In New York,
recruiters target investment banks when searching for
experienced people, since the skill sets sought by both
funds and banks are often similar. However, the investment
banks generally have more conservative bonus structures,
are more risk-averse than hedge funds, and are subject
to complicated compliance procedures. For some, all of
Careers in Financial Markets 2007-08
 www.efinancialcareers.com

this makes jumping to a hedge fund an extremely attrac-
tive proposition. However, traditional investment banks
are countering by creating their own in-house hedge fund
groups and restructuring their compensation packages to
remain competitive with the alternative funds.
Five of the Biggest Hedge Fund Managers
Fortress Investment Group
This New York-based manager of both private equity and hedge funds
achieved a milestone in February 2007 by becoming the first U.S.
alternative investments firm to go public. Fortress was launched in 1998
and had $43 billion under management as of June 30, 2007. It is headed
by alumni of Goldman Sachs, Lehman, BlackRock and other Wall Street
firms.
Citadel Group
Founded in 1990 by Kenneth Griffin, Citadel has grown far beyond its
original focus on convertible bonds. Today the Chicago-based fund
company employs 1,000 investment professionals managing some $14
billion of capital in a variety of strategies, including credit, energy mar-
kets, equities, reinsurance, interest rates and quantitative strategies.
D.E. Shaw Group
One of the oldest and most successful “quant” fund managers, with
1,200 employees and $35 billion in capital. David E. Shaw founded
the company in 1988, two years after leaving Columbia University’s
computer science faculty to head an automated trading group at Mor-
gan Stanley. Shaw remains his firm’s chief executive, but now spends
most of his time leading a separate research team in “computational
biochemistry,” according to the company’s Web site.
SAC Capital Advisors
Founder Steven A. Cohen is known for rapid-fire trading. As SAC has
grown, it’s evolved to operate a variety of strategies and disciplines.
The 15-year old Stamford, Ct.-based firm employs more than 700 people
and had $12 billion under management as of February, 2007.
Roles and Career Paths
Jobs in hedge funds tend to fall into four categories:
• Analysis: Analyzing the companies, markets and
securities a hedge fund invests in.
• Sales and Marketing: Meeting with investors to
help sell the strengths of the fund.
23
• Trading: Executing the investment strategy, buying
and selling financial products according to analysts’
recommendations.
• Risk Management and Back Office: Settling
trades, working out risk exposure and making sure
everything flows smoothly. Many small funds out-
source these tasks to the prime brokerage divisions of
investment banks.
Most roles are quite distinct: If you join as a risk manager,
the chances of becoming an analyst are slim. On the other
hand, it’s not unknown for analysts to become traders.
Unfortunately, hedge funds rarely hire people fresh out of
school. Most are small organizations that lack the time or
resources for extensive training. New graduates would be
better served trying to join an investment bank to gain the
experience and expertise that will later be attractive to a
hedge fund, if that’s the career path they wish to follow.
Skills and Qualities
• Math aptitude
• Adaptability
• Creativity

AQR Capital Management

This Greenwich, Ct.-based quant shop was launched in 1998 by Clifford
S. Asness and three other top managers in Goldman Sachs’ quantita-
tive research group. In keeping with its’ founders emphasis on rigorous
model-building, AQR principals have published numerous research
papers in finance and business journals since 1991. As of early 2007 the
firm managed approximately $35 billion.

Careers in Financial Markets 2007-08

 Foreign Exchange
The world’s biggest market
The foreign exchange market (also called the “Forex” or
“FX” market) is the world’s largest in terms of cash value
changing hands daily. FX trading involves converting one
currency into another and predicting changes in exchange
rates based on global events. The point is simple: to profit
from currency price fluctuations. FX is an extremely liquid
market with numerous participants.
24
Anyone who has lost money by buying a foreign currency
before going on vacation, only to find its worth fell before
they arrived to spend it, will appreciate the need to keep
an eye on the value of currencies. Banks and their clients
face a similar problem, but to a much greater degree. For
example, a U.S.-based company that owns hundreds of mil-
lions, or even billions, of euros stands to lose huge amounts
if the currency drops even minutely against the dollar. On
the other hand, business is increasingly global: In an era
when the dollar is weak, U.S. companies with significant
sales in European and Asian markets can reap significant
bottom-line benefits when they convert their euro or yen-
denominated sales back into dollars.
Working in foreign exchange means predicting whether one
currency will fall (depreciate) or rise (appreciate) against
another. If depreciation is forecast, salespeople and traders
advise clients to sell the currency and buy one that’s ap-
preciating. It’s a simple variant of the “buy low, sell high”
maxim of financial markets.
The trading of currencies themselves is known as the spot
market, and is transacted by the world’s banks. However,
many of the products bought and sold in foreign exchange
markets are not actual currencies, but bets on the future
direction of foreign exchange price movements. These are
known as futures. Futures fall into a class of assets called
derivatives: They are contracts whose value is based on the
performance of an underlying financial asset, index, or other
investment. Large investors - like pension or hedge funds,
or multinational corporations with significant overseas
sales - use these derivative products as a “hedge” against
the rise or fall of the actual currencies. It’s a form of insur-
ance meant to protect against fluctuations in a portfolio or
on a balance sheet.
While geographically diverse, the top 10 FX trading institu-
tions account for nearly three-quarters of the estimated
$2.7 trillion in daily volume. According to the magazine Eu-
romoney, in 2006 they were Deutsche Bank, UBS, Citigroup,
Barclays Capital, Royal Bank of Scotland, Goldman Sachs,
HSBC, Bank of America, JPMorganChase and Merrill Lynch.
Over the last few years, the big story in FX markets has
been the weakness of the dollar, which has lost ground
consistently against both the euro and the British pound. In
April 2007, the pound hit $2, a level of weakness not seen
since 1992. The dollar also reached record lows against
the euro. Those drops were tied to the large budget deficit
in the U.S. - the FX market abhors government deficits - as
well as expectations about economic growth and inflation
in the U.S., and what the Federal Reserve intended to do
about it.
U.S. economic growth in the first quarter of 2007 slowed,
according to government measures. Over a sustained period
of time, weak economic growth would encourage the
Federal Reserve to cut interest rates in order to stimulate
the economy. But inflation measures, while not excessive
by historical standards, remained strong enough in the first
part of the year to concern the Fed’s policy makers, which
argues against a rate cut.
If and when the Fed concludes that it needs to cut rates,
investors can be expected move their money from dollar-
denominated bonds to markets with stronger currencies and
governments willing to pay higher interest rates. Because
economic policies can impact the FX market, FX traders
pay attention to what is happening in the government bond
markets, particularly trading of U.S. Treasury securities.
Best Bank for FX Research and Strategy
Total votes * Banks Corporates Investors
HSBC UBS HSBC JP Morgan
JP Morgan HSBC JP Morgan HSBC
UBS JP Morgan Citigroup UBS
Citigroup Citigroup Deutsche Citigroup
RBS RBS RBS Goldman Sachs
* This column shows the top overall vote-getters compiled from 4,188 respondents to
FX Week’s 2006 Best Bank Awards survey. The other three columns rank votes among
separate client segments.
Source: fxweek.com
Roles and Career Paths
Roles in the world of foreign exchange are much the same
as in the sales and trading arena, except that you’d be
Careers in Financial Markets 2007-08
 www.efinancialcareers.com

Profile
trading currencies and derivatives instead of corporate or Russell LaScala, Head of FX Trading for
government bonds and equity products. North America, Deutsche Bank
FX trading jobs are usually split between vanilla trading, Would you describe your early career path and how you got
where products are simple and trades are easy to execute, into FX trading?
and more complex derivatives trading. As with other trad-
I began my career in 1989 as an assistant on an FX desk. At that time,
ing desks, some traders execute transactions on behalf of
FX desks made money by matching buyers and sellers and capturing a
clients, while proprietary traders seek to earn profits for the
price spread. Banks rarely took on proprietary risk, because they didn’t 25
bank that employs them.
need to. I joined Deutsche Bank in 2003 as head of spot trading. Now
Best Bank for FX in North America I’m responsible for spot, forward options and complex risk.
Total votes * Banks Corporates Investors What qualities does this business require?
Citigroup Citigroup Citigroup Citigroup You really need to be well-versed and up-to-date on geopolitical and
BoA BoA HSBC BoA economic policies around the world. What’s going on in Japan, the
JP Morgan JP Morgan BoA JP Morgan
U.S. Fed and economic numbers, conflict in the Middle East, what
the European Central Bank is going to do next month - these are all
BNY BNY JP Morgan BNY
important drivers of exchange rates. That’s what keeps this business
HSBC UBS BNY Goldman Sachs fresh and exciting every day.
*This column shows the top overall vote-getters compiled from 4,188 respondents
to FX Week’s 2006 Best Bank Awards survey. The other three columns rank votes I’ve discovered that I have a passion for markets. There is nothing
among separate client segments more satisfying than a winning trade - gathering the data, looking
Source: fxweek.com at the market, translating an idea into a trade and watching it grow
to fruition is a high. I tend to trade against the herd. Those winning
Sales jobs in foreign exchange (as in other product areas) trades are the most gratifying.
are usually divided between different client types, with
some salespeople specializing in hedge funds and others It’s also important to be adaptable. As the markets continue to evolve
selling only to companies. and become more complex, FX traders are involved with many different
products including emerging markets, interest rates and commodities.
As is the case with equity and bond trading, researchers
that specialize in studying the currency markets produce Could you describe a typical day?
written reports that are used by the salespeople to keep cli- We start 7 a.m. I catch up with what happened overnight in Asia and
ents informed of market developments. If you work with FX Europe. The sales force and traders gather for a morning meeting
derivatives, you could also become a structurer, assembling where we discuss market trends and data releases for that day, which
complex exotic derivative products for clients. usually come out between 8:30 and 10 a.m. Customers will begin
calling our desk and trading shortly after we get in.
Skills and Qualities
• Understanding of geopolitical events and A lot of customers want direct access to traders, so I try to be on the
macroeconomics desk between 8 and 11 to provide that optimal service. I usually at-
tend meetings and handle other administrative responsibilities in the
• Quick thinking with a good awareness of how afternoon. I also spend a lot of time visiting clients, since this is still a
markets work big relationship-facing business. You learn a lot by visiting clients and
• For FX derivatives: reasonably strong math aptitude seeing what they need, which is constantly changing.

• For structurers: patience and communications skills Any other thoughts?

If people want to trade, they have to show some initiative. A few
banks and brokers have demo accounts, such as dbFX.com. Open a
demo account, start trading and keep track of your “paper” results.
Keep up with markets and what is causing the moves.

Careers in Financial Markets 2007-08

 Fund Management
Patience, profits, and pension funds

Fund managers are professionals who invest money on Taking the opposite tack, active fund managers decide them-
behalf of their clients. The term “fund manager” can refer selves what financial products to buy or sell. Their work
either to a firm that provides investment management ser- corresponds to the common idea of what fund management
vices or to an individual who makes investment decisions is all about. They invest in products their research indicates
on behalf of others. are likely to rise in price over time, thus allowing investors
to share in the appreciation of the stocks and saving them
Clients can include pension funds, insurance companies
the work of ferreting out opportunities on their own.
and other sources of institutional cash with a view toward
26
making it grow. Individual investors employ fund manage- Funds invest in everything from stocks, bonds or real estate
ment professionals through their investments in mutual to physical commodities such as oil or metals. Different
funds, either directly or as part of an Individual Retirement types of clients tolerate different amounts of risk, so fund
Account or other retirement plan. managers usually offer several different funds at a time.
Some offer fast growth along with a larger measure of risk.
Top Ten Largest Asset Management Firms Others offer slower growth and aim for less risk. Funds
also can be highly specialized, targeting specific sectors or
Total assets
Manager ($ mn; as of year-end 2005) regions of the world. Some managers are only interested in
UBS 2,016,000
small capitalization growth stocks, while others might focus
on the world’s biggest companies. The ways in which invest-
Barclays Global Investors 1,513,043
ment products can be categorized is virtually endless, as are
Allianz Group 1,493,488 the types of funds that cater to the desires of investors.
State Street Global 1,441,058
Most large investment banks have their own fund man-
Fidelity Investments 1,421,903
agement divisions, though some have done better than
AXA Group 1,260,202 others. There has been some consolidation among those
Capital Group 1,165,754 asset management groups. In 2005, Citigroup struck a deal
Credit Suisse 1,128,365 to trade its fund management division to Legg Mason, in
Deutsche Bank 1,026,875
exchange receiving Mason’s capital markets and brokerage
operations. Merrill Lynch followed suit in 2006 in a deal
Vanguard Group 957,589
that involved handing its asset management division over
Source: Pensions & Investments / Watson Wyatt to BlackRock Financial - then majority owned by PNC Finan-
cial. PNC Financial then sold a majority stake in BlackRock
Most investment managers take a long view, buying finan- to Merrill. The end result was that BlackRock’s assets under
cial products in the belief their value will rise over time. management swelled to more than $1 trillion.
Today, a newer breed is in charge of many hedge funds.
These mangers often have a shorter investment horizon and Roles and Career Paths
employ a variety of techniques to “hedge” risk through the Fund managers focus on the business of managing, and
use of options or futures while simultaneously holding long none are hired without experience. Many have an advanced
positions or by short-selling. (For more, see our profile of degree - such as an MBA - and many will also have a
the Alternative Investments sector.) Chartered Financial Analyst (CFA) designation. Early on, you
might gain exposure to fund management as a researcher
In this section, we focus on the two basic kinds of funds: responsible for identifying potential investment candidates,
Passive funds, also called “index trackers,” are designed to and eventually work your way into position assisting a
mimic the performance of well-known stock market indexes principal fund manager. You could also work in the industry
like the S&P 500. The investment decisions of passive as a fund marketer or in an operations role.
funds are typically made using computers, and may not hold
exactly the same stocks as listed in the index the fund is In the case of institutional fund management, marketing
intended to mimic. and sales professionals wine and dine potential clients in

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

Profile
an effort to persuade them to invest money, and also man- Preston Athey, Portfolio Manager, T. Rowe Price
age relationships with existing clients. They meet invest-
What led you to choose a career in portfolio management?
ment consultants and play a role in the development of new
products. Mutual funds can be sold through investment My father was an investment counselor. I grew up in a household
advisors - such as Merrill Lynch financial consultants - or where you talk about stocks with your father. I invested in my first
through direct marketing to individuals as is done by fund stock at age seven, and I determined at age 16 what I wanted to do
companies like Vanguard or Fidelity. in life. I began my career with T. Rowe Price in 1978. Today I manage
more than $9 billion -$6.5 billion in a small-cap value mutual fund, 27
Analysts help steer fund managers in the right direction and the rest in separately managed accounts using the same small-
when it comes to choosing assets in which to invest. They cap value strategy. I just love stocks, I love the stock market, I love
spend their time analyzing companies’ results and meeting investing. So I’m in the right job for me.
with senior management to discuss strategy. They then
write reports communicating their conclusions. What’s your typical day like?
I typically work from 8 until 6 when I’m in the office. I meet with the
Top Ten Largest Institutional Asset Managers management of companies I’m invested in, once a day on average,
Institutional assets for 60 to 90 minutes. I’ll have five or six conversations with individual
Manager ($ mn; as of year-end 2006) analysts here about stocks they’re working on. I’ll review e-mails and
State Street Global 1,690,881 voicemails from Wall Street and from companies. I get an average of
Barclays Global 1,457,745 250 each day, but I only care about those that bear some relation to
Fidelity Investments 930,442
one of the roughly 300 companies in my portfolios.
Legg Mason 744,816 I average five days a month out of the office, visiting companies or
Mellon Financial 744,534 going to conferences.
BlackRock 680,265 What is the most challenging aspect of your job?
AIG Global Investment 677,549 Staying on top of the information flow and juggling zillions of balls
Northern Trust Global 606,534 in the air all the time. For a lot of people, the most demanding part
Wellington Mgmt. 574,117 is the pressure of knowing you’re responsible for billions of dollars
of people’s life savings. So if the market goes down, it starts to eat
Vanguard Group 563,247
at them. But in my case, the only time I couldn’t sleep because of
Source: Pensions & Investments
something the market did was in the crash of ‘87.
What advice would you give students who want to work in
Like their counterparts in investment banks, operations this field?
staffers at fund managers do everything from work in
information technology to settling and reporting trades. Take all the courses you can that are relevant. Go to the best schools
Funds employ compliance staff to ensure they meet regula- you can, because it’s an extremely competitive industry. Get good
tory requirements, internal auditors to make sure internal grades. Do personal investing. It will not only make you a better
systems and controls function properly, and financial staff investor, but it will look good on your resume, it will give you an edge
to manage the firm’s own money. over other candidates who have not done that. And bring a copy of
your brokerage statement to the interview.
Skills and Qualities We get 1,000 resumes a year in the equity dept. We hire maybe six
• Understanding of how the financial world operates people. One of the things we look at is personal investing experi-
• Ability to select investments that will grow in value ence. We don’t look at their performance, because they could have
been lucky and, for example, bought Google in the IPO. Instead, we’ll
• For researchers, an inquiring mind look at their holdings and ask them to explain why they invested in a
• For marketing experts, excellent communication skills particular company. The quality of their answer helps us see whether
they understand how to analyze a stock.
Careers in Financial Markets 2007-08
When you’re dealing

trillion
with $1.8

in assets, instinct isn’t enough.

We base our actions on rigorous analysis of data and

the expertise of our people. There’s no ‘secret sauce’ at
Barclays Global Investors – just a scientifically informed,
consistent and rational approach to managing the largest
collection of assets in the world*. It’s a friendly, supportive
and balanced workplace, with world-class graduate
and internship programmes. A career in the science of
investment could be waiting for you. Find out more at
www.bgigraduatecareers.com

*Source: Global Investor, 31.12.06

Barclays Global Investors is authorised and regulated by the Financial Services Authority.

Corporate Banking
Consolidation may lead to pressure on opportunities
Corporate banking is the broad term given to different bank-
ing services that large companies, governments, or other
big institutions need in order to function day to day.
Responsibilities range from the relatively simple business
of issuing loans to more complex matters such as helping
minimize the taxes paid by overseas subsidiaries, manag-
ing changes in foreign exchange rates, or working out the
details of financing packages necessary for the construction
of a new office, plant or other facility. If an organization
is exporting overseas, corporate bankers might arrange a
process of international payment or put together “trade
finance” packages to ensure the firm is paid by foreign
customers.
In many cases, there’s an overlap between corporate
banking and capital markets. Bankers working in capital
markets help companies raise money by issuing equities or
debt. Corporate bankers typically help clients raise money
through loans. But, when it’s necessary, corporate bankers
will bring in the expertise of their capital markets col-
leagues.
Increasingly, corporate banking requires an understanding
of complex financing methods like securitization, where a
company sells bonds based on the money it will in earn in
the future from assets such as rented shop space or a back
catalogue of products.
This trend was given a boost with the repeal of the Glass-
Steagall Act in 1999. Glass-Steagall was a Depression-
era law that barred U.S. commercial banks from owning
brokerages or being involved in the securities markets. With
its repeal, the roles of investment bankers and corporate
bankers began merging. In addition, the increasing global-
ization of the financial markets makes it imperative for large
money-center banks to be able to offer a broad array of
services to help their business clients raise needed capital.
Longer term, the big news in the corporate banking sector is
consolidation. In the past five years the sector has changed
considerably as participants look to become bigger, and
thus better able to compete. The trend, which isn’t confined
to the U.S., has continued into early 2007. As this profile
was written, two U.K. banks, Barclays and the Royal Bank
of Scotland, were battling for control of the Dutch asset
manager ABN Amro.
Careers in Financial Markets 2007-08
www.efinancialcareers.com
During 2006, mid-tier regional banks in the U.S. were
merging to gain scale. Among the deals were Capital One
Financial Corp. acquiring Long Island’s North Fork Bank,
Wachovia acquiring the West Coast-based Golden West
Financial, and Regions Financial Corp. taking over AmSouth
Bancorp. Here again, most banking industry observers
expect this consolidation to continue.
29
Roles and Career Paths
If you opt for a career in corporate banking, you may start
out in any number of roles. For example, you may begin as
a credit analyst, spending your time looking at companies’
balance sheets and working out whether it’s a good idea to
issue loans to them.
From the credit analyst’s role you could progress to being
a relationship manager, responsible for lending money to a
handful of the bank’s customers. It’s a job that requires an
intimate understanding of each company’s strategy, a strong
appreciation for the risks of default, and sales skills.
If you aren’t interested in the relationship management side
of corporate banking, you could go into treasury manage-
ment. Treasury managers help companies cope with their
cash flow. They ensure that businesses have enough money
to pay for whatever they need to buy and help them deal
with fluctuations in the value of foreign currency holdings.
Corporate banking also offers a variety of operational posi-
tions, including technology and human resources roles.
Various banks offer training in corporate banking including
Citigroup, Goldman Sachs, UBS and HSBC. While all banks
will want candidates to possess a college degree, an MBA
isn’t required to get a foot in the door of many corporate
banking divisions.
Skills and Qualities
• Analytical ability and statistical aptitude
• Strong communication skills
• Ability to grow and maintain client relationships
• Demonstrable drive
 Private Banking and Wealth Management
For financial diplomats with product knowledge and strong interpersonal skills
As their title suggests, private bankers help wealthy people
manage their money in private. Their objective is to provide
a more personalized level of service than most individuals
commonly find at a commercial bank.
But while the business has always catered to the world’s
wealthiest people, some banks are dropping the bar that
defines “wealthy” as the Baby Boom generation accumu-
30
lates assets.
At the top of the private banker’s client roster are property
tycoons, professional athletes, movie and pop stars, and
members of families who have either grown wealthy, or
were born wealthy, through a successful family business.
These people are at least modestly wealthy, but some may
be very, very wealthy.
Until recently, private banks typically looked for clients with
at least $1 million in liquid assets to invest. Many set the
benchmark higher, dealing only with clients whose financial
assets equaled $10 million, $30 million, or more. Today,
though some are targeting clients with as little as $500,000
to invest as private banking clients. One of them is UBS, the
world’s largest wealth-management firm based on assets
under management.
The main role of a private banker is to help clients manage
their money. Traditionally, this involves helping them invest
wisely while avoiding risks that might reduce the value of
their assets. Private bankers also offer tax planning and
pension advice, help clients develop a strategy for philan-
thropy, and advise them on estate planning. In one subset
of the private banking sector known as Family Offices,
the bankers also perform tasks that range from screening
solicitations for charitable contributions to making sure the
client’s bills are paid on time.
A successful private banker needs an outgoing, service-
oriented personality, plus the ability to listen to clients as
well as talk with them. It’s a role best-suited to people who
can observe other individuals and come to understand their
needs. Their real talent is connecting with people who may
have a lot of their wealth tied up in a fairly narrow activity,
such as a successful family business, or who can be very
demanding. In short, good people skills help.
As the array of potential investment products widens, the
job of a private banker is becoming increasingly complex.
Private bankers need an understanding of financial products
from basic stocks and bonds to financial derivatives, private
equity and hedge funds. In most cases, the lead banker who
manages the direct relationship with a wealthy client will
be supported by a staff of experts who can be brought in to
address specific questions or needs as required.
The reality is that the wealthiest tier of people worldwide
are getting richer, particularly over the course of recent bull
markets for stocks and real estate. So, the private banking
business is going strong. A study published in June 2007 by
the Scorpio Partnership, a London-based wealth manage-
ment consulting firm, found assets managed by private
banks have surpassed $10.8 trillion worldwide.
Top Ten Largest Private Wealth Managers
Assets Under Management
Institution $ bn; year-end 2006
UBS 1,608
Citigroup 1,438
Merrill Lynch 1,209
Credit Suisse 642
JP Morgan 465
Morgan Stanley 450
HSBC 408
Deutsche Bank 249
Wachovia 206
Pictet 192
Source: Scorpio Partnership, Private Banking Benchmark 2007 report
Figures are for each institution’s high net worth wealth management division
Roles and Career Paths
If you work as a private banker, you can expect to focus in
one of three areas: investing money for existing clients,
building relationships, or managing back office functions
such as human resources and accounting.
People working on the investment side of private banking
either invest their clients’ money or offer detailed advice
to help clients make investment decisions themselves.
They are typically product specialists who are expert in a
particular asset class.
People working on the relationship side are essentially
salespeople who spend their time building connections with
Careers in Financial Markets 2007-08
 www.efinancialcareers.com

Profile
clients and selling the bank’s services. This can involve a lot Wayne Yang,
of traveling and close contact with interesting, unusual, and Managing Director, Citi Private Bank
demanding people. When a relationship banker has estab-
lished a client’s needs, investment specialists are brought in Describe your path into private wealth management.
to put more detailed solutions together. For clients who are I joined the old Chase Manhattan Bank in Hong Kong in 1989 as an
very wealthy, the relationships are often entrusted only to internal auditor for the region and, after reviewing their private bank
experienced executives. business, chose that as my career path. That led to a position at the
Citi Private Bank, where I’ve been since 1990. Since starting as a 31
A decade ago, most
“Their real talent is private bankers
service officer covering ultra high net worth individuals in Hong Kong,
I’ve been a relationship manager for Philippine and Singaporean
combined the inves-
connecting with people tor and relation-
clients, and also a business manager for the Malaysian, Brunei, Indo-
nesian and Australian wealth management operations. Since March
ship role. In some
who may have a lot of organizations, they
2006 I’ve been based in New York City, managing the Manhattan
Region for Citi Private Bank.
still do. But in most
their wealth tied up in banks, investors What is your typical day like?
and relationship I work hard to recruit top talent in our industry, manage and help
a fairly narrow activity, managers are now remove roadblocks for our private bankers and develop sales strate-
separate - another gies that align with our client needs. Most importantly, I spend time
such as a successful sign of the industry’s with our clients to build relationships and assist them with meeting
growing complexity. their wealth management objectives. There’s also a fair amount of ad-
family business, or who Firms such as ministration, as well covering regulatory requirements, performance
Goldman Sachs, management and problem resolution.
can be very demanding. HSBC and UBS run What are the most challenging aspects of your job?
graduate training
In short, good people programs for private
It’s consistently challenging to stay ahead of issues relevant to clients
and remain ahead of our competition. Our clients are among the
bankers. If you don’t
skills help.” find a place in one
smartest and most successful individuals in the world. Meeting and
surpassing their expectations encompasses an extraordinary amount
of those, it’s often
of due diligence on wealth management developments, trends,
possible to move into private banking with a background in
research, financial engineering and, of course, making sure this exper-
corporate finance or, more particularly, fund management.
tise is broadly displayed by each of our client-facing staff.
Unlike with most other senior roles, having an MBA or
What advice would you give to someone seeking to break into
majoring in business isn’t considered critical for a private
this area?
banker. In fact, a diverse background can be an asset
because clients can differ considerably in their needs and It’s a great career for someone who enjoys the wide range of topics
personalities. involved in wealth management. A private banker deals with invest-
ment-related issues, such as balance sheet optimization and wealth
Skills and Qualities distribution structuring, along with social aspects of wealth manage-
• Discretion and trustworthiness ment, like advising on philanthropy, client hobbies and interests,
and family dynamics. In addition, an important role for every private
• The ability to build strong relationships with discerning
banker is the ability and willingness to be a confidant of their clients.
clients
Private banking is an extremely client-centric business, and can often
• Knowledge and understanding of financial markets be challenging given the high level of service expectation. But it is
truly rewarding when you have satisfied the most demanding of indi-
viduals while competing against the best bankers in the industry.

Careers in Financial Markets 2007-08

 Operations
The unsung, largely hidden, heroes of investment banking

The operations groups at investment banks, brokerage business, the greater the percentage of revenue that falls to
houses, hedge funds, mutual funds or pension funds are the bottom line. Another area of Operations is hedge fund
commonly referred to as the “back office.” Unlike the trad- operations, or “prime brokerage.” Prime brokers are the
ers, salespeople, bankers, fund managers and corporate back office for hedge funds, offering everything from clear-
financiers of the front office, operations people don’t work ing, settlement and custody facilities to help in managing
directly with customers to generate revenue and profit. relationships with investors and raising new funds. Prime
Instead, they serve in support functions. Their jobs may be brokers play a lucrative role in large investment banks.
32 “behind the scenes,” but they’re critically important: An
Realizing just how important Operations can be to profit-
inefficient back office can negatively impact a firm’s profit-
ability, investment banks and other firms are seeking a
ability.
higher caliber of employee to work there. These profes-
Operations professionals ensure a financial services firm sionals support a firm’s trading operations by performing a
functions smoothly and efficiently. Their functions cover ev- multitude of functions, including reconciling a trading desk’s
erything from information technology to human resources, daily profit-and-loss statements or maintaining a firm’s
trade support, accounting and finance, and risk manage- internal portfolio accounting system.
ment. In fact, the overall Operations role is so broad,
At the same time, banks are shifting simple elements of
employees typically specialize in only one of these areas.
the operations function to lower-cost locations like India,
At the core of Operations China or Russia. This move offshore has been paralleled by
“Operations is taking is the function of clearing an increased use of technology. Twenty years ago, clearing
and settling trades. Clearing and settlements were labor-intensive businesses involving
a hit as processes are trades involves looking at a lot of forms and enormous filing systems. In the case of
the records made by traders most securities today, the clearing processes are dominated
electronically stream- or investment managers by computerized settlements facilities that transfer financial
when they buy and sell products electronically. Settlement systems such as the
lined and business financial products, then Clearinghouse for Interbank Payment Systems (CHIPS),
checking to make sure they Fedwire, and the Depository Trust and Clearing Corporation
moves overseas. The match the records kept by (DTCC) hold securities in electronic format and transfer
the counterparties to those them from one owner to another without the cumbersome
good news, however, is trades - the people from, paperwork of the past.
or to, the securities were
that the jobs left behind bought or sold.
None of this bodes particularly well for jobs in Opera-
tions, which is taking a hit as processes are electronically
tend to be more Settling trades is about
making sure the securi-
streamlined and business moves overseas. The good news,
however, is that the jobs left behind tend to be more inter-
interesting and pay ties bought and sold are
exchanged for the correct
esting and pay better salaries. Derivative products, such as
credit swaps, are also more likely to involve paper-based
better salaries.” amount of money. Settle-
ments cover everything
contracts that have not, as yet, fully evolved into electronic
clearing systems.
from preparing the
documentation required for Roles and Career Paths
a sale to making sure the bank has been paid for all of the Roles in clearing and settlements are typically for exception
shares it sold, or has paid for all the shares it bought. managers, the people who deal with instances where data
on electronic systems don’t match; they try to work out the
Operations may not be where banks make their profits,
reasons for the discrepancy. If you work as an exception
but it’s certainly an area where they can lose them. The
manager, you might find yourself talking to traders who
more efficient a financial services firm is at conducting its

Careers in Financial Markets 2007-08


claim to have sold shares for $3 each when the buyer says
the price was only $2. You might also find yourself chasing
payment from recalcitrant overseas buyers for trades they
deny ever took place, especially following periods where
trading was particularly volatile and rapid.
Electronic systems have vastly increased the speed with
which simple trades are processed. But derivative trades
are often too complex to be settled electronically. Often,
for example, trades are still confirmed by fax or through the
review of actual contracts. The large number of documents
required for derivatives transactions creates roles for docu-
mentation specialists. Some derivative operations positions
require an accounting degree and a CPA designation, as
well as experience in public accounting.
Most operations jobs have a strategic element. Banks use
operations staff to analyze ways of making processes more
efficient, and project managers implement their sugges-
tions. Thus, a finance background and knowledge of how
securities markets operate can be important to success
in this field. The more senior you become, the more likely
you will work in this kind of strategic or project manage-
ment role.
Skills and Qualities
• Deal with conflicts firmly and efficiently
• Strong analytical and problem-solving skills
• Strong math skills
• Attention to detail
• Good organization and time-management skills
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Profile
George Wehbe, Head of Global Derivatives
Operations, Citigroup
Could you tell us about your career path?
I’ve been with Citi and its predecessor companies for the past 15
years. I began in operations support within the global custody busi-
ness, where I was part of a five-person team. After spending a few
years there, I moved into a network management role supporting the 33
build-out of our custody/clearing businesses in emerging markets.
I joined derivatives in 2004 with responsibility for confirmation
activity. In March 2006 I was appointed head of OTC derivatives for
Citigroup globally. The primary functions included confirmation, settle-
ment and margining of OTC derivative transactions (interest rate, eq-
uity and credits). In April of this year I took on additional responsibility
for our FX and Loan operations, managing approximately 850 profes-
sionals. My primary function is to define our strategy and allocate
both human and technical resources toward delivering a best in class
platform for our clients. I also spend more time with our customers to
gauge how our products and services can better suit their needs.
What’s a typical day like?
My day varies considerably. I travel a great deal, probably about 7-10
days a month. My day begins at 7 a.m., and usually ends at 6:30 p.m.
I work extensively with our clients, which include institutions, hedge
funds, asset managers, pension and mutual funds. We have both
internal and external clients, and my work involves trying to deter-
mine how to best meet their needs while trying to maintain a balance
on both cost and controls. We’re regularly adding new products and
there is heavy client contact, so making sure that both people and
technology platforms are in place is key.
What does it take to be successful in Derivatives/Operations?
To be successful in derivatives, and this business in general, requires
a fundamental knowledge of capital markets. To have an understand-
ing of the way the cash, stock and bond markets work and affect one
another goes a long way. Other areas that are important to under-
stand are changes in foreign exchange, credit and equity derivatives.
You need to be able to look at the basics of product markets and
build knowledge from that. This can be done in many ways, whether
it’s from information readily available on the Web or in textbooks,
and through advanced certifications such as Series 7 licensing. It’s
important to round out your skill set.
The people who do well in derivatives are those who can use tools
like Excel and Access. We deal with large amounts of data and to be
able to mine through it with these tools is critical.
 Investment Consulting
Strategic advisors to fund managers - and scrutinizers of them

Investment consultants advise the trustees of corporate and Co., Callan Associates, RogersCasey, Evaluation Associates
public retirement plans, university endowments, founda- and Capital Resource Advisors.
tions, healthcare systems, not-for-profit organizations,
high-net-worth individuals and financial intermediaries on Roles and Career Paths
what to do with their money. Jobs in investment consulting usually fall into one of two
main categories: asset allocation and fund selection.
They help these clients determine the asset allocation
that will enable them to reach their investment goals, Asset allocation specialists advise clients whether to invest
34
whether by making sure a pension fund can meet its payout in equities, bonds, private equity funds, or alternative asset
obligations or maximizing the wealth of an endowment. In classes in order to generate the returns they require to pay
the process they recommend which fund managers clients pensions or fulfill other long-term goals. It’s a complex role
should invest with, and what percentage of the client’s that involves examining economic factors like interest rate
money should be directed to non-traditional, alternative changes, as well as the timing of the pension fund’s liabili-
investments. ties or pay-outs, and the likely risks and returns associated
with each type of asset. To help them, asset allocation
Investment consultants will first work with trustees or other
specialists create mathematical models that forecast how a
fiduciaries to analyze their investment goals and learn how
client’s money should be divided among asset classes.
their funds are governed. They want to understand what
level of performance the trustees expect and their sensitiv- Top 15 Largest Investment Consultants
ity to risk. The consultants then develop liability plans and Worldwide assets
profiles that enable them to recommend an acceptable Consultant under advisement ($ mn)
investment policy for their clients. Russell Investment Group 1,726,790
After establishing the appropriate allocation of funds across Watson Wyatt Investment 1,500,000
different asset classes and investment managers, invest- Cambridge Associates 925,000
ment consultants help implement their plan by identifying
Callan Associates 900,000
the fund managers who are most likely to meet the goals
R.V. Kuhns 782,851
that have been established with the least overhead costs.
It’s also the investment consultant’s job to monitor how the Ennis Knupp 737,000
funds they have recommended perform, and if the manag- Strategic Investment Solutions 706,145
ers of those funds are meeting - or failing to meet - the Mercer Investment Consulting 668,907
benchmarks that have been established. Most traditional Pension Consulting Alliance 625,576
fund managers have lengthy track records they can point
Wilshire Associates 620,000
to, and investment consulting firms have developed tools
and databases that allow them to monitor and rank those Hewitt Associates 495,000
managers. CRA RogersCasey 325,000
Richards & Tierney 306,082
In recent years, one of the biggest issues facing the
trustees of large pension funds has been determining the API Asset Performance 300,000
amount of money they should shift out of traditional stocks Evaluation Associates 265,000
and bonds and into alternative investments, such as hedge Source: Pensions & Investments
funds or real estate. As the number of hedge funds has
exploded, investment consulting firms have had to develop Fund selection specialists spend much of their time analyz-
expertise about them in order to better advise their clients. ing individual fund managers and asking questions about
their investment strategy. They scrutinize particular funds
Some of the larger investment consulting firms include
and author reports on their strengths and weaknesses.
Watson Wyatt, Mercer, Wilshire Associates, Frank Russell
Most investment consulting firms produce confidential lists

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

Profile
ranking fund managers according to their likely success Michael Kaplan,
going forward. Principal, Mercer Investment Consulting
Within fund selection and asset allocation are also roles for Tell us about your career path.
relationship specialists, who are the sector’s true con-
I started in 1980, right out of college, working with pension products
sultants. While many asset allocation and fund selection
within an insurance company. That placed me in contact with invest-
specialists work in research and focus on a particular type
ment consulting companies. In 1989, I joined a consulting firm that
of fund or investment product, relationship specialists are
became part of Mercer several years later. 35
usually generalists.
They are often more What is your current role and range of responsibilities?
“As the number of senior members of I’m involved with marketing and selling to new prospects, managing
the firm.
hedge funds has relationships, and actual nitty-gritty consulting work - doing analysis,
meeting clients, making recommendations.
Staff in invest-
exploded, investment ment consultancies With such a variety of situations and types of clients with varied
usually begin their needs, you’re forced to keep learning and stay up-to-date if you’re go-
consulting firms have careers in research ing to be effective in this job. We have to explain not just our actual
and move into investment recommendations and the rationale for them, but also the
had to develop expertise client facing roles investment concepts. We have to be able to educate clients. Many of
as they gain more them are not investment professionals, even though they oversee a
about them in order experience. Most pool of invested assets as one facet of their job.
large investment
to better advise consulting firms take What are your biggest challenges?
on graduates. After Making sure we’re experts on whatever the client needs. We must
their clients.” entering invest- deliver accurate, fast responses to an extremely wide variety of
ment consulting, requests. If I don’t know the answer, I’ll look within our organization
you’ll typically go to find someone who can answer it. The other main challenge is mak-
on to gain a professional qualification, such as a Chartered ing sure everything we put out is as close as possible to being 100
Financial Analyst (CFA) designation. percent accurate.

Skills and Qualities What skills and qualities are most important for an investment
• Analytical ability and statistical aptitude consultant?
Being able to analyze numbers. That goes beyond being good at math
• Team-working prowess
- it means having a grasp of what the numbers mean. Verbal and
• Ability to grow and maintain client relationships written communication skills. And an ability to juggle unexpected
changes in your assignments and in client needs.
• Powerful reasoning skills
What should students interested in a career in this field be
reading?
Pensions & Investments magazine. Keep up on business news: Read
The Wall Street Journal and/or the business section of a major paper
like the New York Times. A book I’d recommend for people interested
in this business is When Genius Failed: The Rise and Fall of Long-
Term Capital Management, by Roger Lowenstein. And there’s the
classic, Security Analysis by Graham and Dodd.

Careers in Financial Markets 2007-08

 Private Equity
You’ll need some experience or an MBA to make it in this sector
At a base level, private equity funds raise money for
companies in need of a capital infusion. In that respect,
they’re similar to investment banks. But while investment
banks raise money by selling stocks or bonds on the public
markets on behalf of client companies, private equity funds
do it by raising cash from wealthy individuals and institu-
tions like pension funds. In turn, they use this money to
36 invest in companies.
However, the similarity between PE funds and investment
banks ends there. Where investment banks don’t take a
controlling ownership interest in the companies they take
public, PE firms use the capital they raise - along with
leverage gained from issuing debt - to assume control of
businesses either as co-owners or, often, sole owners.
Like their hedge fund counterparts, private equity funds
have seen explosive growth in recent years. According
to Fortune magazine, over 1,000 U.S. companies were
purchased by private equity funds in 2006 alone. The funds
spent, or have committed to spend, in excess of $400 billion
for these deals. By any measure, that’s a lot of capital.
The managers of private equity funds sometimes pool their
resources to buy targeted a company, as happened in sev-
eral high-profile examples during 2006. In one of the largest
such transactions, HCA Inc., the largest for-profit operator
of hospitals in the U.S., was purchased by a consortium of
four private equity funds for $32 billion.
In some deals, private equity funds use a technique known
as a “leveraged buy-out” (LBO) for all or part of the purchase
costs. In an LBO, the acquiring group uses loans, bonds or
other debt instruments to raise the capital necessary to buy
the target. Often, they use the target company’s own assets
as collateral. Sometimes, the managers of a company work
with private equity groups to raise the money necessary to
buy the stock of the firm they’re running. These deals are
known as “management buy outs,” or MBOs.
The bottom line is that private equity funds have become a
huge force in the global economy, powerful enough to raise
concerns over the ability of the largest to pool resources
and so drive up deal prices to the point potential industry
bidders drop out.
In ideal situations, PE funds invest in underperforming
companies, turn them around, and sell their stake at a profit
some years later, often in the public markets. Sometimes
private equity companies engage in “asset stripping,” or
breaking up a company and selling its assets separately in
order to make their profit.
Venture capital and private equity are often used inter-
changeably. Strictly speaking, venture capital firms focus
on funding promising new businesses, where private equity
firms focus on generating value from established business-
es through restructurings and better management.
Firms like Texas Pacific Group, Carlyle Group, Bain Capital
and Blackstone Group are a few of sector’s big players.
Firms this big tend to get the most media attention because
of the size of the acquisitions they complete. However,
many mid-tier firms are also at work, acquiring smaller
companies that can benefit from an injection of capital and
management talent.
Roles and Career Paths
The private equity industry is booming. One New York
recruiter says there is competition for talent at PE firms,
which are battling with investment banks and hedge funds
for people with the skill sets they need.
At the senior-most levels, PE professionals can make huge
sums of money. These are individuals with the experience
and contacts to identify, originate and close deals. Below
them are the analysts, number-crunchers and lawyers
necessary to undertake the due diligence that will make the
deals work profitably. According to recruiters, mid-tier firms
in particular are seeking to bring more analyst and associ-
ate positions in house, rather than rely too much on outside
consulting firms to get their work done.
Careers in private equity offer two main entry points. Like
their investment bank peers, PE funds prefer people to have
a minimum of two to three years of experience at an invest-
ment bank, management consulting firm or accounting firm.
People emerging from a graduate business school with an
MBA program, who have some real-world experience, are
also in demand.
Skills and Qualities
• Analytical ability and math aptitude
• Team-working prowess
• Confident and outgoing
• Ability to grow and maintain client relationships
Careers in Financial Markets 2007-08

Profile
John Isaacson, Managing Director, American
Capital Strategies Ltd.
How did you break into private equity?
I was a Johns Hopkins University undergraduate and was planning to
attend Harvard law school. Someone from Morgan Stanley I played
tennis with said, “I’m going to save you from a fate worse than death
(being a lawyer). Come and interview for this investment banking
job.” I was a political science major who knew nothing about finance,
and I spent two years as a financial analyst at Morgan Stanley and
then became a trainer for incoming recruits.
Next, I applied to JD/MBA programs and was fortunate to get ac-
cepted to Stanford. Later, I dropped the JD because it was the dot
com boom and people were saying you don’t want to stay in school
longer than you have to.
While banking was wonderful in some ways, it was also transac-
tional. You didn’t get to put your money where your mouth was. After
business school, I worked at GTCR Golder Rauner, a Chicago private
equity firm, and then I became a vice president at Thayer Capital
Partners. In essence, I got here through my love of working with
companies and helping entrepreneurs live their dreams.
What’s a typical day like for you?
I start off around 8:30 a.m. and my job has three parts. A third of my
time is sourcing transactions through investment bankers, cold calling
and going to trade shows. I might do a road show - go to Boston and
spend the day with seven or eight intermediaries. Another third of my
time is doing deals - negotiating legal documents, doing due diligence
and trying to understand a business in a short period of time. The last
third is post-closing, the value add - getting our companies introduc-
tions to other companies, bringing on board members, adding man-
agement to upgrade the team. Monday through Thursday, we’re here
until 8 p.m. or later, and then on Friday we leave at a more reasonable
hour. We try to have weekends off during the ordinary course of busi-
ness, but the job can involve weekend work when a deal is hot.
What’s your advice for someone just starting out in your field?
You have to be patient, you have to realize this is not a transaction-
based business. We do have six- to 10-week projects to take a deal to
a closing, but we are managing deals over years, not days or weeks.
We encourage associates to become adept at sourcing, due diligence
and post closing value-add. There is not a professional that’s good
at all three. Work on your weakest area of those three and shore up
what you can.
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Profile
Stephen Hoffmeister, Principal,
Advent International
Tell us about your early career path and how you got into
private equity.
I started my career in consulting. It was a superb learning experience
and very relevant for the private equity business. I learned why some
businesses make money and why others don’t. I also learned early 37
lessons about working with management teams and respecting those
who run companies.
After business school, I joined Advent International. Advent has built
its investment team with professionals who have diverse experiences
and who embody the truth-seeking analytical approach of consulting.
What’s a typical day like for you?
There is no such thing. I like this business because every day is differ-
ent. Between different industries, business problems and phases in
a deal process, the job changes constantly. Additionally, at Advent I
work on deals in different parts of the world and have the opportunity
to team with my colleagues in 15 countries where we have offices.
What’s the most challenging aspect of your work?
The most challenging part is deciding how to spend my time. At any
given time, there are several companies in our target sectors which
are actively being sold. We could be working to create proprietary
investment opportunities or supporting our portfolio companies. One
of the keys to being successful in this industry is resource allocation.
How does working in private equity compare with consulting?
At firms like Advent, we perform many of the same analyses when
evaluating a prospective investment, as a consulting firm might during
a strategy study for a large client. On the other hand, when reviewing
an investment, we try to focus on three to five issues which we deem
to be most critical or strategic for the target business. By comparison,
strategy consulting firms today devote much of their attention to
operations, business unit strategy, merger integration, etc.
What advice would you give students who want to break into
private equity?
While it has been changing slowly, the most reliable path into private
equity is still through investment banking or consulting. Also, the
majority of private equity firms are small informal organizations who
tend to hire few investment professionals. So, apply at several firms
and know that many of the best offers will come late in the recruiting
season, when recruiters are certain that they need to hire.
 Global Custody
Guardians of the world’s financial records

Global custodians undertake the job of processing cross-
border securities trades while at the same time working to
keep the financial assets of clients safe, and servicing the
associated portfolio.
Before computers existed, global custodians had gigantic
filing systems for their core work - storing certificates of
stock and bond ownership for their clients. Today, cer-
38
tificates related to stock and bond ownership are stored
electronically, making the business of custody much less
space-intensive and easier to conduct. That’s not necessar-
ily the case within the booming alternative investment sec-
tors such as hedge funds and off-shore funds, though even
in those industries formerly cumbersome tracking systems
are moving toward more efficient electronic methods. In ex-
change for looking after clients’ assets, custodians charge a
fee of up to 0.08 percent of the assets they’re managing.
Global custody is a big
“Intense competition business. The total value of
worldwide custody assets
has put downward is $65 trillion, according to
globalcustody.net, a spe-
pressure on custody cialist Web site that tracks
the industry.
be taken over by Boston’s State Street. Investors Financial
Services had essentially put itself up for sale and attracted
numerous suitors. Meanwhile, Citigroup announced it was
buying New Jersey-based Bysis Group. While Citi planned
to retain Bysis’s business in mutual fund and hedge fund
administration, it intended to sell other portions of the busi-
ness. In the end, Citi would become the fifth-largest hedge
fund administrator.
Besides Citigroup, Mellon and State Street, other big
players include RBC Dexia Investor Services, UBS, JPMor-
gan and Northern Trust. The trend toward consolidation is
expected to continue.
Roles and Career Paths
While of its work is administrative and repetitive, the
role of custodian has widened to include a range of other
services. These include income collection (e.g. collecting
dividends from clients’ investments), performance measure-
ment (calculating the returns a client’s investments have
made over a period of time), and proxy voting on behalf
of clients at shareholder meetings. Custodians typically
specialize in a particular area, so exactly what you do will
depend on where you work.

fees, so increasingly Intense competition has put

downward pressure on cus-
custodians have tody fees, so increasingly
custodians have branched
branched out into more out into more lucrative ar-
eas, such as securities lend-
lucrative areas, such as ing and risk management.
They are also consolidating
securities lending and at a rapid pace. Small cus-
todians lack the manpower
risk management. They and technological expertise
for these higher margin ac-
are also consolidating at tivities, and so are gradually
being subsumed into bigger
a rapid pace.” players. Meanwhile, bigger
players are merging so as to
become even bigger.
In the past year, the Bank of New York and Mellon Bank
announced they would merge while Investors Financial
Services, the parent of Investors Bank & Trust, agreed to
Corporate action professionals normalize and consolidate
corporate announcement information - generally referred
to in the industry as “scrubbing” - to inform clients about
important events at companies that might impact the value
of the shares they hold. You need to have a basic under-
standing of underlying cash flows, accounting treatments,
operational controls, credit risks and market practices to be
successful in this role.
If you work in fund operations you might be asked to record
and monitor the investments made by fund management cli-
ents, or to work on clearing and settlements. Staff in clear-
ing and settlements make sure the contracts and payments
are in place following a client’s trade. Similar to operations
staff working in investment banks, fund operations staff in
custody houses look out for so-called “exceptions,” when
trades have not been settled properly, and try to resolve any
problems.
Custodians also offer more client-focused and technical
jobs. Relationship managers, for example, work with clients
to reassure them their assets are safely maintained.

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

Profile
Banks By Global Custody Assets, Worldwide, 2007 Barbara Z. Hammel, Managing Director, Strategy
and New Programs, Citigroup
Assets under custody,
Provider worldwide $ bn Could you describe your career path?
BNY Mellon Asset Servicing 18,957 I began my career as a product/brand manager at Kraft General
JPMorgan 13,903 Foods. In the 80s, I joined Citibank as a vice president in consumer
State Street 12,300 marketing, where I led the development, marketing and advertising
Citi 10,524 of new insurance and financial products. After stints in management 39
consulting and in a digital media firm, I returned to Citigroup in 2001
BNP Paribas 4,760
as director and global product head of investor internet solutions.
HSBC Securities Services 4,571
Northern Trust 3,800
As managing director of strategy and new programs within global
custody, my primary responsibilities include the creation and manage-
Société Générale 3,484
ment of innovative, cross-functional programs and the development of
UBS AG 3,377 strategic vision for franchise initiatives.
CACEIS Investor Services 2,548
Each experience has added to my portfolio of transferable skills,
© 2007 globalcustody.net No reproduction without consent
enabling me to move across fields, disciplines and industries.
Extract from source: www.globalcustody.net
The above extract depicts data from globalcustody.net as of August 1, 2007.
What’s a typical day like?
Service providers can submit their latest figures in real-time, so please refer to
globalcustody.net for the most up-to-date and comprehensive data.
A typical day is comprised of strategic and business discussions with
Global Custody colleagues and clients from around the globe. It may
begin with a weekly management conference call with my peers in
Graduates may start out in corporate actions or settlements various regions, focusing on opportunities to tap trends in emerging
and move into other positions after a few years. Few global markets or find new solutions for the needs of our clients. A team
custodians offer structured graduate training programs. meeting would usually follow, to inform the virtual global team of key
events and programs discussed. The rest of the day could be spent on
Skills and Qualities strategic initiatives and broader communication efforts.
• Strong communication, presentation, and selling skills
How has global custody changed in recent years?
• Organized and process-driven
Global custody has a fast-paced and rapidly changing business en-
• Work well under pressure vironment. The consolidation of industry players has heightened the
competitive landscape and has also increased the focus of product
excellence, innovation and best of class client service. In addition,
the growth of investment vehicles in emerging markets has expanded
opportunities for global custody products and services. The impact
is that strategic insight and expertise to develop new programs for
investors to respond to these changes is critical to business success.
Do you have any advice for future global custody managers?
For someone looking to excel in global custody, good communication
and analytic skills are a must. You must be able to think strategically
and effectively manage projects with virtual global teams. Success-
ful candidates should have an interest in securities and the investor
marketplace, and have a self-motivated, “can-do” attitude. Potential
applicants should keep abreast of industry news, monitor market
changes and participate in industry associations.

Careers in Financial Markets 2007-08

 Risk Management
Brakes on a bank’s risky activities
Risk management is a term that can be applied to many
aspects of business, but on a fundamental level it involves
protecting a company from negative events. For example:
• The insurance industry uses the term to broadly
describe services and products corporate and busi-
ness clients use to protect themselves from potential
losses.
40
• In corporate Information Technology departments, risk
managers are charged with insuring the business can
continue to function normally in the event of computer
system failure, terrorist attack or natural disaster.
• In the banking sector, risk managers strive to make
sure a bank isn’t overexposed to plummeting stock
markets or other financial pressures that will jeopar-
dize the strength of its balance sheet.
Banking executives try to manage three principal risks as
defined by a series of international agreements known
as the Basel Accords. These are a set of recommenda-
tions on banking laws and regulations promulgated by the
Basel Committee on Banking Supervision, which is part
of the Bank for International Settlements based in Basel,
Switzerland. Central bank representatives from the Group of
10 nations are members. Although the committee can only
advise, most member countries implement its recommenda-
tions through national laws.
Of course, there can be a
“There’s widespread gap between when recom-
mendations are made and
agreement that banks when they are actually
implemented by member
need to protect them- countries. Nonetheless,
there’s widespread agree-
selves against certain ment that banks need to
protect themselves against
specific types of risks.” certain specific types of
risks.
First there’s market risk, also known as systemic risk. This is
the hazard that a whole group of traded financial products
such as stocks, bonds, or commodities will fall in value si-
multaneously. Market risk is caused by outside events, such
as rising oil prices, terrorist bombs, earthquakes or sudden
hikes in interest rates.
Credit risk is the risk a particular company or individual will
default on its obligation to repay its debts. Credit risk is
becoming increasingly more complex as new credit deriva-
tive products allow banks to trade the risk a company will
fail to repay a loan. This means a major default could ripple
through the banking sector and impact more than just the
original lender. If the customer defaults on loan repay-
ments, whoever sold the credit default swap has to repay
the remainder to the bank.
Operational risk is the risk something might go wrong in
the day-to-day running of a bank, while reputational risk
- sometimes considered a sub-sector of operational risk - is
the risk that something will happen to damage a firm’s repu-
tation. Following a succession of financial scandals, such as
the collapse of Enron and penalties imposed on numerous
firms for publishing biased equity research and letting fa-
vored customers make improper mutual fund trades, banks
are increasingly sensitive to reputation management.
Roles and Career Paths
People who work in market risk are typically situated on or
close to the trading floor. Market risk specialists use math-
ematical value-at-risk (VaR) models to work out the maxi-
mum amount of money their bank would lose in the case of
a particular event. They also work closely with traders to
calculate the risk associated with specific transactions.
Professionals in credit risk analyze company balance sheets
and meet with directors to determine the organization’s
financial health. By comparison, operational risk experts
review the likelihood of particular events taking place and
formulate plans in case they do.
Reputational risk specialists attempt to present the bank’s
best side in public. Few banks employ reputational risk
specialists per se - the role is typically dealt with by Public
Relations, Human Resources, or the legal team.
If you want a career in risk management, it’s a good idea
to join a bank’s graduate training program. At some banks,
risk management training is covered by the IT or operations
department. However, Deutsche Bank and UBS are among
those offering risk-specific training to graduates. The Risk
Management Association also offers various training and
accreditation programs.
Careers in Financial Markets 2007-08

Skills and Qualities
• Analytical ability and statistical aptitude
• Strong skills in mathematics and finance
• Good problem-solving and decision-making abilities
• An understanding of the bigger picture
Types of Financial Risk
Market Risk
Risk of financial loss due to adverse movements in the level or volatility
of stock, bond, commodity or currency prices. This can be further subdi-
vided into stock market risk, interest rate risk (itself divisible into finer
classifications), volatility risk, and currency risk.
Credit Risk
The risk that a trading partner, such as another bank or a customer, will
fail to pay amounts due, or will be late in making payment.
Liquidity Risk
The risk of an inability to close positions because of market disruptions
or because a particular stock or other investment is “illiquid,” meaning
it has too few buyers or sellers to have a reliable price quote at all
times. Liquidity risk can also refer to an institution’s inability to obtain
funds to pay its own debts on time.
Settlement Risk
The risk that an agreed-upon trade will not be completed under the
expected terms, usually because either the seller may fail to deliver
shares, or the buyer may fail to pay by the settlement date.
Legal Risk
The possibility that contracts governing a trade may be unenforceable
because of conflicting laws between different jurisdictions or because
the documents weren’t properly prepared.
Operational Risk
The risk of losses due to weaknesses in internal controls, supervision
of employee activities, information systems and other management
functions.
Reputational Risk
The risk that ill-advised or improper actions by management or employ-
ees will damage an institution’s reputation and brand value. (Could be
considered a subset of operational risk.)
Source: International Financial Risk Institute; eFinancialCareers
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Profile
Aaron Brown, Executive Director,
Risk Methodology, Morgan Stanley
What skills do you look for in new hires, and what’s the train-
ing process like for those in risk?
There are three essentials I definitely look for: energy, honesty
and talent. More specifically, for my job, someone would need the
quantitative ability, in addition to derivative knowledge, and IT project 41
management. But when I hire, I would take someone with quantita-
tive ability and either derivative knowledge or the IT background,
since it’s rare to find people with all three skills.
People tend to have certain career paths, and you never get both the
derivative and IT experience. I tend to get people coming out of IT,
who then get a master’s in quantitative finance or financial engineer-
ing, or I get someone with the trading background.
Where are the majority of your new hires coming from? And
from starting positions in risk, where do these people typi-
cally go?
Well, it’s changing quite a bit now, since there just aren’t enough desk
traders and desk quants to fill the demand. That’s part of the reason
why all of the quant degrees cropped up in the first place. We do our
own training here, and so we do hire just a few direct from college,
with no experience. I have seen those people go on to desk quant
positions or to become junior traders. But I prefer someone with the
interest, and the background, as it’s easier to know if they have the
head for this kind of thing.
We hire many more experienced people. They typically go on to a
business role in portfolio management or prime brokerage, or a few
go into front office development to work on IT systems.
Can you tell us a bit about the day-to-day in risk methodology?
The nice thing about working in the middle office is that it pays well
and there’s less stress than you might imagine, since there’s a big
team and experienced people at the top. The biggest stress for those
on lower levels is to make those contacts. It’s important that people
learn that they need to do more than just the job, or they’ll find them-
selves no better off than when they first started.
Having a position in risk needs to be a learning and development
process, since most of the people there are not going to be the head
of risk. They’ll move on to other things. I like to say that we’re a start-
ing point or a finishing school, and those people working here need
to use the time wisely. You can certainly get caught up in regulatory
deadlines or a report being due, but you can’t let the day-to-day
distract you.
 Compliance
The internal watchdogs of the financial industry
If you want to work in the compliance area of an investment
bank, brokerage, mutual fund company or other financial
institution, you’ll need a healthy respect for rules and
regulations. It’s the job of compliance professionals to make
sure financial firms operate within the rules set by govern-
ment regulators.
In addition to interpreting the complicated and ever-chang-
42
ing external rules that regulators lay down, the compliance
function creates a system of rules to apply those regula-
tions internally. Compliance officers then communicate
these rules to a firm’s employees, and work diligently to
enforce them.
In the U.S., the primary regulatory body overseeing the
financial markets is the Securities and Exchange Commis-
sion, or SEC, whose main goal is to protect investors and
maintain the markets’ integrity.
In the financial sector, the compliance function is usually
split into teams. These include money laundering spe-
cialists, training specialists, monitoring specialists, and
advisory and product specialists. Virtually no document
that’s going to be released to the public -from marketing
materials to financial reports - gets out the door without
being reviewed by a compliance specialist. In many cases,
that review is conducted by an attorney.
Many corporations outside of the financial sector have
also begun to establish compliance staffs. The trend is one
result of the Sarbanes-Oxley Act in the U.S., which estab-
lished new rules for how public companies must report their
financial results. The top compliance officers at non-finan-
cial firms are often referred to as “corporate compliance
officers,” where in the financial world they’re known as
“chief compliance officers.”
Business consulting practices have also been adding
compliance expertise, which they sell to clients as part of
broader “risk management” programs. These consultants
help clients understand business risks, determine accept-
able levels of exposure, implement control programs, and
provide ongoing tools for measuring and monitoring the
effectiveness of a company’s compliance program.
Roles and Career Paths
Jobs in compliance vary depending on the area in which
you work. If you opt for money laundering, you’ll spend
your time on the lookout for suspicious transactions. For
example, if someone pays cash for a very large quantity of
bonds, it’s likely to warrant your attention - particularly if
that person or organization has never dealt with the bank
before. In the U.S., money laundering officers report to the
Financial Crimes Enforcement Network (FINCEN) of the
Department of the Treasury.
Compliance training specialists focus on internal controls.
While money laundering teams are identifying financial
fraudsters, training specialists preach the compliance
message to the bank’s employees. They create and present
training courses explaining what the rules and regulations
are, and why it is that bankers need to follow them.
Monitoring specialists look out for infringements of rules
and regulations that suggest employees are up to no good.
Traditionally, in the realm of junior compliance staff, much
of this role has been taken over by computers. Computers
can monitor billions of e-mail messages per day and spot
unusual activities such as dormant trading accounts that
suddenly come back to life.
Compliance advisors interpret regulations and apply them
to particular business areas and products. An increasing
number are product specialists who offer advice on par-
ticular types of financial products. Product specialists sit on
or near the trading floor. They tell traders whether or not a
particular trade can go ahead, and suggest alternatives that
will still be satisfactory to the client. Compliance advisors
need to know a lot about trading and about the products
they’re advising on. Some are ex-traders.
If you don’t get onto an investment bank’s compliance
training program, there are a few other options. One is to
train with the SEC, which has training programs. Another is
to work for the compliance consulting arm of an accounting
firm like KPMG or PricewaterhouseCoopers.
Skills and Qualities
• Self-confident and assertive
• Competent understanding of legal issues
• Methodical
Careers in Financial Markets 2007-08
 diversity = enriched experience
Our mission is to impact and influence the diversity
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 Human Resources
The ‘people people’ of investment banks

Human Resources departments - commonly referred to as minority groups. Also, the increasing number of employ-
“HR” - are responsible for the “people issues” that arise ment laws working their way onto the books has generated
in an investment bank. This means everything from hiring, a need for professionals with a mix of HR and legal training.
firing and paying employees to implementing workplace
HR professionals say their work has taken on a strategic
policies on diversity, discrimination and employee monitor-
role in an industry constantly on the hunt for top talent. As
ing. They also manage disciplinary cases.
one said, forward-thinking companies “are keenly aware
The mantra of HR professionals? “People are an organiza- of the intrinsic value of
44
tion’s best asset.” This is particularly relevant in investment having a strong partner-
banks, where the difference between a good employee and ship with recruiting and “ ‘People are an orga-
a bad employee can be measured in millions of dollars. In how that partnership is
addition, hiring trends at investment banks tend to reflect the cornerstone of suc- nization’s best asset’
the state of the financial markets: The industry has a repu- cess.” Understanding the
tation for bulking up when times are good and laying off relationship between HR is particularly relevant
large numbers when times get tough. and the investment bank’s
In recent years, most banks have changed the structure of
overall goals is a key to in investment banks,
success in this sector,
their HR departments, outsourcing much of their peripheral
activity. Questions about compensation, benefits or em-
along with understand- where the difference
ing the intricacies of
ployee relations - which used to be addressed by HR people
in each banking division
the securities business. between a good em-
Often, it’s up to the HR
“HR professionals say - are now often handled by
call centers. Consequently,
staff to understand the ployee and a bad em-
talent market’s dynamics
their work has taken on fewer HR people work
inside the banks, and those
and formulate recruiting ployee can be measured
strategies that will attract
a strategic role in an in- that remain face pressure to
become more like “strategic
and retain the people in millions of dollars.”
needed to meet the firm’s
dustry constantly on the partners,” understanding
and advising departments
business goals.

hunt for top talent.” on business matters like

reward policies and reten-
It’s no easy task to find a job as a graduate trainee in an in-
vestment bank’s HR department. Few banks offer such train-
tion of top staff. eeships here, and those that do usually have no more than
two or three places. However, you have options besides
Roles and Career Paths landing a spot in a training program. Because banks train so
Jobs in HR usually fit into one of five categories: few HR staff themselves, they often recruit expertise on the
• Employee Relations open market. Former HR staff from Time Warner, General
Electric and Pepsi-Cola can all be found working in banks.
• Recruitment
If you’re interested in working in recruitment, try to gain ex-
• Compensation and Benefits perience with a recruiting firm that helps investment banks
• Training and Development find staff. These firms fall into two categories: “contingent”
and “retained.” Contingency recruiters get paid only if their
• “Generalist” clients make a hire. By contrast, retained firms get paid re-
Recently, a “diversity’” category has begun to emerge as HR gardless of whether they find anyone to fill a particular job.
staffs are entrusted with nurturing workforces that include To be a recruiter at a search firm, you’ll usually need previ-
more women and more members of different ethnic and ous experience. But search firms such as Russell Reyn-

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

Selected Resources for HR Professionals
Organization
Society for Human Resource Management
American Society for Training
and Development
Organizational Development Network
American Management Association
Profile
Linda J. Gray, Vice President, KeyBank
Web Site What made you decide this was the career for you?
www.shrm.org My internal wiring requires a great deal of people contact. I am
drawn to the investigative nature of the recruiting business. I am
www.astd.org
motivated by the nature of solving a puzzle, and that’s what recruiting
www.odnetwork.org is: a detective story that unfolds. It’s finding the one perfect candidate
www.amanet.org for the one perfect opportunity. 45

- Academy of Management www.aomonline.org I started my career as a coordinator in a recruitment firm, learning

The National Association of Asian American the ropes, learning the business, learning what it takes to be a good
www.naaap.org
Professionals recruiter. I worked my way up to junior recruiter, corporate recruiter,
Management Leadership for Tomorrow www.ml4t.org senior recruiter and now I’m the VP and talent acquisition team man-
t National Human Resources Association www.humanresources.org ager. Our team supports the institutional banking, real estate capital
National Society for Hispanic Professionals www.nshp.org
and debt capital markets divisions at Key.
World at Work www.worldatwork.org What’s a typical day like for you?
No day is typical. Nothing follows the same pattern every day, and
olds, Korn/Ferry, and Heidrick & Struggles employ bright that’s what I love about recruiting. Your to-do list at the beginning of
graduates as researchers and train them to become search the day rarely matches what you’ve accomplished at the end of the
consultants. International contingency recruitment firms day. The key is to stay flexible and prioritize the workflow to maximize
such as Badenoch & Clark, Robert Walters and Michael your efforts and results for your clients.
Page run graduate training programs.
I deal with strategic planning for our clients – workforce planning to
red Skills and Qualities achieve business goals. We conduct strategy meetings, interviews,
• Broad range of interpersonal skills market research, competitive intelligence gathering and cold calling.
” I also read a lot of industry publications to keep a finger on the pulse,
• Intuitive reasoning
to see what’s going on and if there are any major market disruptions
• Good judgment in which people would be looking for other opportunities.
• High degree of self-motivation What’s the most challenging aspect of your job?
The most challenging aspect is finding the right cultural fit. You can
assess the skills and abilities of candidates, and talk about creden-
tials, but finding the right people depends on whether their personal-
ity matches up with the culture and environment of the company and
of the line of business. Identifying soft skills - what you don’t find on
the resume – is what makes the job very exciting and challenging.
What skills and qualities are needed for this field?
Patience. It takes a healthy period of time to find the right person for
the right seat. You need to be very good at skills assessment, putting
the pieces together and matching candidate skills with opportunity.
You need great people skills and you need to think strategically.
In the past, recruiting was perceived as an order-taking business.
Today, forward thinking companies ensure that recruiting has a seat
at the strategic table. They understand that having a strong partner-
ship with recruiting is the cornerstone of success.
Careers in Financial Markets 2007-08
 Legal
From internal control to M&A advisory,
calling all lawyers
Banks are large and complex organizations, and most of
their activities have legal implications. It is up to the legal
department to ensure that all the contracts signed by the
bank are watertight, that the bank fulfils its contractual
commitments and that lawsuits are avoided.
Thanks to banking scandals and hefty fines from regulators,
banking lawyers have come into their own in recent years.
46
For example, Citigroup promoted its former chief legal
counsel, Chuck Prince, to chief executive in 2003, just after
Citigroup was forced to set aside a massive $1.2 billion
to cover the costs of litigation related to Enron and biased
equity research.
Roles and Career Paths
As a banking lawyer, you may specialize in the legal
complexities of merger and acquisition (M&A) deals. Or
you could find yourself working on the trading floor, or with
the capital markets teams. Usually, there is also a team of
lawyers working in a central legal office dealing with issues
such as discrimination claims and major litigation.
M&A work can involve everything from preparing the docu-
ments expressing one company’s intention to buy another to
conducting due diligence on the proposed purchase.
If you work on the capital markets team you’ll deal with
the legal complexities surrounding the issuance of new
financial products. In addition, lawyers ensure that the
information provided by a company preparing to list on the
stock exchange is correct and within the law.
Trading floor lawyers advise on the legality of trades and
deal with the documents required to buy and sell financial
products. By determining which trades can and can’t go
ahead, trading floor lawyers play an important role in the
development of new complex derivative products.
Few investment banks train lawyers themselves; instead,
securities lawyers typically get their start working for a
major law firm.
Skills and Qualities
• Ability to assimilate information and pick out key points
• Very strong interpersonal and lateral thinking skills
• Work well under pressure
• Ability to grow and maintain client relationships
Profile
Heather Sahrbeck, Vice President,
Associate General Counsel, Goldman Sachs
Could you tell us about your career path?
I went to Duke University for both my undergraduate in political sci-
ence and German, and law school, which I graduated in 1997. I went
straight from undergrad to grad school. After that I worked at Davis,
Polk & Wardwell, a firm in New York, where I specialized in securi-
ties and mergers and acquisitions until 2000. Then I joined Goldman
Sachs as an associate in this group. I was promoted to vice president
in 2002.
I am the business unit manager for a group of 12 lawyers within
the investment banking legal department. We work on all banking
transactions including securities offerings, mergers, etc. I also have
some managerial responsibilities including staffing and overseeing
assignments.
Did you always know you wanted to practice corporate law?
I had no idea at first. When I was a summer associate I was exposed
to the corporate side of law and I really enjoyed the transactional
work and the commercial aspect of it. As opposed to litigation, which
is completely adversarial all the time, corporate law can be a very
collaborative process, which I appreciate.
What is a typical day for you?
Being in-house counsel offers a slightly better lifestyle than at an
outside law firm. Because we work a lot with outside firms, they are
the ones working on documents overnight. That said, we are all on
call 24/7, even though we might be in the office from 8:30 a.m. to
7:30 p.m.
At any one time, I’m working on 50 to 60 transactions. It’s impossible
to take a deep dive into any one, so the one with the most complexi-
ties gets tackled first. I might spend an hour or two on a conference
call discussing disclosure issues relating to a securities offering,
meeting with a client to go over an engagement letter for a merger,
talking about a potential structure for a new security with a banker, or
training bankers on a new policy or procedure.
It’s also a lot of putting out fires.
Any advice for someone looking to get into law?
It’s important to really understand the reasons you want to go to law
school. If you’re going to law school, you should have some goal of
using that law degree. If you’re not sure right out of college, it’s not a
bad idea to seek out a job to figure out where you might fit in best.
Careers in Financial Markets 2007-08
ENTRY LEVEL
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Bloomberg provides information to business leaders around the world. Our employees
have a passion for excellence, no matter what their experience is. We foster that passion
and encourage growth and development in every way possible.
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25360180 0707
 Information Technology
The work that’s increasingly outsourced overseas

An investment bank’s information technology (IT) depart-
ment is responsible for the web of networks, computers and
software that underpin any modern financial organization.
Firms use technology for just about everything: communi-
cating with staff, storing information on clients, and running
complex computer models to price and trade financial
products. They are known for having some of the world’s
48 cutting-edge systems, especially for their trading floors.
In recent years, IT spending has risen along with the costs
of providing technical solutions. In pursuit of lower costs,
a growing number of banking IT jobs are being outsourced
to locations such as India and China. One recruiter predicts
that by 2010, internal IT departments will shrink by a third.
The good news is that
banks still need plenty of
“Banks still need plenty people in western financial
centers to manage and
of people in western coordinate with overseas
employees. According
financial centers to to the technology re-
search company Forrester
manage and coordinate Research, there will be no
shortage of future demand
with overseas employ- for business analysts and
project managers who
ees. According to one understand the banking
business and can manage
researcher, there will be the outsourced functions.
no shortage of future IT professionals who want
to stay in advanced technol-
demand for business ogy are being advised
to couple their technical
analysts and project expertise with deep knowl-
edge of a vertical industry,
managers who such as financial services
or pharmaceuticals, or to
understand the banking combine IT with business
skills, perhaps by earning
business and can an MBA. Recruiters say
financial firms increasingly
manage the outsourced seek candidates with a
combination of business
functions.” and technology skills, such
as an understanding of fixed income and Java, or knowl-
edge of mortgage-backed securities and C#. In addition,
says Netin Gupta at RadixThink, a recruitment process out-
sourcer in Centreville, Va., “most of our clients are looking
for people who can communicate well, who can really put
their point across briefly and directly. A lot of times, they
have to communicate with clients and interact with traders
on the floor, so communication skills are very important.”
While companies want combined skills, they often don’t
offer an obvious path to acquiring them. So, IT profession-
als should keep an eye out for positions that offer a mentor
who might help them broaden their role in the firm.
Roles and Career Paths
Jobs in IT fall into four categories: development, business
analysis, project management, or technical support.
If you become a developer, you may be responsible for writ-
ing the computer programs that help the bank do everything
from pricing and booking trades to calculating risk. The
programming languages used by banks are usually C++,
Java and Microsoft’s .NET.
While developers write the programs, business analysts
look at the way technology is used in the bank and analyze
the opportunities for making it work better. A trader might
complain about the length of time it takes his computer
to execute a trade, so it’s up to an analyst to investigate
whether the complaint is valid. If it is, a new computer
might be needed, or some of the programming code might
have to be changed.
Selected Resources, Companies and Organizations
Organization Web Site
CIO Magazine www.cio.com
CIO Today
CNET News
www.cio-today.com
news.cnet.com
Computing Technology Industry Association www.comptia.org
Information Technology Alliance www.italliance.com
Software & Information Industry Association www.siia.net
SIIA Financial Information Services Division www.fisd.net
Cisco Systems www.cisco.com
Microsoft Corp. www.microsoft.com
Oracle Corp. www.oracle.com

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

Profile
Business analysts help identify the potential for making Samuel H. Gaer, CIO, New York Mercantile Exchange
changes to a bank’s technology systems. Once big changes
How did you get started?
are underway, the responsibility for managing them often
passes to another set of IT staff: the project managers. Believe it or not, I started as a clerk on the trading floor when I was
Project managers plan, structure and fulfill IT projects. If IT 15. I worked there every summer until I graduated from the Wharton
development work is outsourced, project managers work School of Business in 1988, and from there I got very involved in the
with providers to ensure the effort is completed correctly business. When I graduated, I immediately went down the floor and
and within the mandated time frame. started trading. I worked for a trading company on the Commodities 49
Exchange for a number of years.
Technical support staff require razor-sharp technical skills
and the thickest of skins to handle not only technology How did you go from trader to CIO?
problems, but the frustration of irate traders as well. It’s a In 1998, I left the trading floor to start a trading-software develop-
role that carries a ment company. We had very high profile clients, and in late 2002 we
“IT professionals lot of responsibil-
ity: a computer
licensed the system to NYMEX (the New York Mercantile Exchange).
They made an offer shortly after that for certain assets of the com-
who want to stay in problem on a trading
floor lasting a few
pany, and offered me the CIO position.
What’s a typical day like for you?
advanced technology minutes could cost
millions of dollars. I get in at 7:30 or 8 a.m. and generally use the time for administrative
are being advised to It’s up to the support
staff to identify and
work. I’ve been checking my e-mails all night long anyway, because
now everyone has a BlackBerry. The rest of the day is meeting time.
couple their technical resolve the glitch as
soon as possible.
We meet for various tech and trading issues. I have a meeting with
the chairman, followed by an executive committee meeting and
expertise with deep Generally, the IT
technology team meetings.
staff members in We’ve moved from rebuilding the place and putting out fires to
knowledge of a vertical investment banks growth and maturity of the company, so now I’m more involved with
specialize in a managing and mapping out the future.
industry, such as particular business The most challenging aspect of my job is managing the tech team
area. While many while managing business expectations. Fortunately, because of my
financial services, or to work on the trading background, I am able to really relate very well between the business
floor, others are of trading and the technology of trading.
combine IT with based in private
banking, fund Any tips for the aspiring CIO?
business skills, perhaps management, opera- A great resource for me is CIO magazine. I was a very green CIO com-
tions, or deal with ing in - I had been CEO in smaller companies and was not exposed to
by earning an MBA.” core infrastructure anything of this scale prior. It’s useful to know what your peers are
requirements. doing. Reaching out to CIOs in your industry is also helpful, even if
they’re competitors. Your exchanges don’t have to be about strategy.
Skills and Qualities You can discuss general CIO matters.
• Superior programming abilities
In the past, a CIO had to be a computer developer. I was at the
• Strong communication skills forefront of a wave of CIOs who have a business background first and
• Innovative foremost (I was an economics and business major). Now it’s business
first, technology second. Know your business, know your customer
• Client-focused and know your technology. Technology for the sake of technology just
• Good problem-solving and decision-making abilities doesn’t work.

Careers in Financial Markets 2007-08

 Marketing and Public Relations
Managing a firm’s image to the outside world
On Wall Street, public relations and marketing staffs are
responsible for representing financial services companies to
customers, clients, investors and the general public. Their
role is to position the firm as it would like to be seen, but
they fulfill that mission in different ways.
Although related, marketing and public relations are distinct
functions. Marketers concern themselves with managing a
firm’s reputation by deciding how its brand name, products
50
and services are portrayed in advertising and promotional
campaigns. Public relations people focus on how a bank is
represented in the media and, in the case of public compa-
nies, to investors.
Financial firms spend substantial amounts of money to
promote their brand names. Some firms sponsor sporting
events like golf and tennis tournaments, while others have
purchased the naming rights to stadiums and arenas as a
way of reinforcing their brand image. Financial companies
are also regular advertisers in traditional media like news-
papers, magazines and television. They’re also increasingly
marketing on the Internet. Managing the message across
all of these channels is among the jobs that marketing
professionals perform.
Public relations professionals concern themselves with how
their firms are portrayed by journalists. Following a spate of
bad publicity during the technology boom years of the late
1990s and early 2000s - when research analysts were seen
to be insufficiently independent from their banks’ M&A
arms - the role of PR people become more important. Today,
staff at most Wall Street firms are forbidden to talk to jour-
nalists without the permission of the media relations staff.
At the same time, most financial firms want to be seen
as experts on the markets and the economy. Thus, they’re
willing to make analysts, portfolio managers, executives
and other professionals available to discuss their views on
what’s driving market activity. It’s the PR staff that controls
who is made available to journalists and the topics staff
members are permitted to talk about.
Roles and Career Paths
Investment banks, brokerages, commercial banks and fund
managers typically employ centrally focused marketing
staffs to promote their firms as a whole, as well as product-
specific marketing people who sit alongside sales teams.
The role of marketing groups can include sponsoring events,
producing brochures and other collateral material, develop-
ing corporate logos, determining the pricing and position-
ing of products and services, and researching markets for
potential new products.
Those interested in marketing or PR careers can look
beyond investment firms themselves. Companies that
exist to sell products and services to Wall Street - such as
financial software developers, trading system vendors, or
providers of information products - often seek individuals
with specific market experience to fill product management
roles. Firms like Bloomberg or Reuters will generally seek
people with direct, hands-on experience in a specific market
to fill a position as a product manager.
While people in the central marketing department com-
municate to customers and work closely with sales staffs,
people in PR encourage journalists to write positive articles
about the company they work for – or engage in damage
control if a bank is attracting negative media attention.
Investment banks typically have their own in-house PR
departments. Larger firms may have a separate staff to
handle the Investor Relations function, whose role is to
communicate financial results. The job has become more
specialized for all U.S. public companies after the passage
of the Sarbanes-Oxley Act in 2002.
Few financial firms train their own marketing and PR staffs
in-house. Typically, they hire professionals with several
years’ experience, usually gained in a blue chip company or
a top PR agency. Product managers, likewise, usually come
in with several years’ experience in large advertising agen-
cies. However, large financial firms may at times hire entry-
level marketing personnel either full-time, or as interns, to
assist more-seasoned professionals. There are also various
independent PR agencies active in the financial world.
Skills and Qualities
• Strong written and oral communication skills
• Networking and relationship management
• Understanding of and ability to communicate
financial issues
• Ability to quickly grasp complex issues
• Specific knowledge of markets and market
segments
Careers in Financial Markets 2007-08

Ratings Agencies
Grading the potential of market players
The role of ratings agencies is to assess the credit worthi-
ness of companies and government agencies that issue
debt instruments to investors. Although the issuers actually
pay for the privilege of having their business scrutinized,
the agencies provide a neutral analysis of a debt issuer’s
ability to repay its obligations.
The debt ratings sector is dominated by three companies:
Standard & Poor’s (S&P), Moody’s Investors Service and
Fitch Ratings. With analysts based in business centers
worldwide, S&P and Moody’s are by far the largest, holding
about 75 percent of the business. Fitch, the smallest of the
three, has grown larger in recent years through acquisitions.
Another well-known agency, A.M. Best, specializes in rating
insurance companies -- both their debt and their “financial
strength,” or the ability to pay policy claims. Best also rates
U.S. banks and bank holding companies, including small
and mid-sized community banks. The company touts its
location in the bucolic horse country of central New Jersey
as being perfect for people seeking a “stable environment,
without the inconvenience of commuting to a major urban
center.”
All four companies issue debt rankings in a similar format,
which makes it easy for investors to compare the ratings of
one organization to the other. A debt issuer rated AAA (in
the format used by S&P and Fitch) or Aaa (in the Moody’s
version) is judged to be almost certain to repay its debts.
Any bonds rated Ba by Moody’s and BB by Fitch and S&P
are considered to be speculative grade, or “junk.” While
debt consigned to this category will attract investors, the
issuing company will have to pay higher yields in order to
get them. The lowest possible ranking is “C.” Buyers of
these bonds face the greatest prospect of not getting their
money back.
Debt ratings aren’t static. Bonds that may have started out
with an investment grade rating can be downgraded if the
fortunes of a company, industry or government worsen.
The nature of debt financing has changed dramatically
over the years and the ratings agencies have had to adapt
accordingly. For example, Moody’s notes on its Web site
that its analysts follow the debt of 100 countries, 11,000
companies and 25,000 public finance issues. On top of that,
it follows 70,000 structured finance deals, a number that is
Careers in Financial Markets 2007-08
www.efinancialcareers.com
undoubtedly growing because structured finance - which
refers to the exotic credit-derivative instruments that have
become hugely popular tools for managing risk - is the fast-
est-growing segment of Moody’s business, according to a
company spokesperson.
Plus, Wall Street has figured out ways to securitize every-
thing from credit card debt to cosmetic surgery receivables.
51
Figuring out the level of risk associated with those kinds of
deals falls to the analysts in the structured finance ratings
teams, who are generally quantitative specialists. Lawyers
are also a part of the analytical teams.
Roles and Career Paths
Ratings agencies look for people with training in finance,
mathematics, economics and similar quantitative disci-
plines. Advanced degrees aren’t always required but they
can be helpful in landing a job. (In the words of one analyst:
“We have people who have come in with a bachelor’s
degree and a thirst for knowledge.”)
Typically, analysts at ratings agencies specialize in particu-
lar product types such as corporate finance, which is rating
particular companies; public finance, which follows local,
state and provincial governments; sovereign debt, which
is issued by countries; infrastructure debt, which might be
issued by a utility company or a government agency that
funds development projects like road construction; financial
institutions; or the structured finance arena. Depending on
their area of specialization, staffers can expect some ele-
ment of travel to go along with their work.
Most agencies offer young talent considerable opportunity
to grow and take on new responsibilities as their careers
progress.
Skills and Qualifications
• Analytical, statistical and quantitative skills are most
desirable.
• MBAs or other graduate degrees useful and some-
times required.
• Strong written and oral communication skills.
• Ability to clearly express complex issues.
• Self-motivation and the ability to meet deadlines
without direct supervision
 Information Providers
Delivering data to the markets
The fuel that powers the financial markets is a potent com-
bination of real-time news and market data. Whether it’s
the release of a company’s quarterly earnings report, the ac-
tions of central banks on interest rate policies, a significant
merger or acquisition or a default or bankruptcy by a major
debt issuer, market participants react to news every trading
day. Events like these, big and small, drive trading activity.
52
Because news inspires action, traders ultimately rely on
accurate and timely market data as a basis for their buy-sell
decisions. Trillions of dollars in stocks, corporate and gov-
ernment bonds, futures, options and a seemingly limitless
number of exotic, over-the-counter derivative instruments
- such as swaps or collateralized debt obligations (CDOs)
- are bought and sold worldwide each day. Collecting, mas-
saging and disseminating all of this trading data is the job
of the information providers - the companies in the financial
information industry.
The principal players in this realm are Reuters, Bloomberg
and Thomson Financial, a unit of the Thomson Corpora-
tion. (In May 2007, Thomson and Reuters announced they
had agreed to merge.) All three companies have extensive
news operations and employ hundreds of people to gather
and scrub for accuracy the data they redistribute to market
professionals, corporate clients and other organizations.
Another, smaller player is Interactive Data, which is 60-
percent owned by Pearson PLC, publisher of the Financial
Times. Interactive Data’s subsidiary products include Com-
stock, which distributes a real-time feed of market data,
and FT Interactive, a supplier of data to institutional clients.
In addition to the data suppliers, many other companies
operate in specialized segments of the industry. Some
are software developers building sophisticated tools and
trading programs. Others focus on news or market analysis.
Dow Jones & Company, whose Dow Jones News Service
has been covering the markets for more than 100 years,
is one example of the latter. Its content can be delivered
through distribution partners or directly to clients. The
company has also created numerous indexes that now form
the basis for tradable securities. Many lay people know
Dow Jones primarily through its flagship product, The Wall
Street Journal.
Vendors like Reuters and Bloomberg not only distribute
data to the financial industry, they also collect it, then
consolidate and sell it back to the same institutions that
initially generated it. In over-the-counter markets for bonds,
foreign exchange, financial derivatives, and so on, pricing
is supplied by dealers and brokers. For example, the trading
desks at large investment banks like Citigroup or Goldman
Sachs generally supply prices for securities that are in their
inventory. Think of those as the advertised or list prices,
which can differ from actual selling prices. Brokers, on
the other hand, are middlemen, and the data they provide
reflect actual transaction prices. Cantor Fitzgerald was one
of the first firms to report the prices for trades it brokered in
the market for U.S. Treasury securities, which it still resells
through its subsidiary, Cantor Market Data. Other major
suppliers of data feeds are the world’s stock, commodity
and options exchanges.
When the Internet first became popular, data vendors
feared their role would become less important as more
information became available directly to investors and
bankers alike. That trend has proceeded more slowly than
originally feared, although it has driven consolidation in the
industry.
Roles and Career Paths
The diversity of companies in the financial-information
sector makes it difficult to describe a single, precise career
path. However, there are certain attributes that will lead to
career success.
Foremost is a strong understanding of how the markets
operate, which will be critical whether one enters a sales,
operations, data management or technical development
role.
Technology expertise can be another important skill. Trading
is increasingly moving from telephone based, person-to-per-
son transactions to screen-based dealings that are driven
by sophisticated software programs. People with the skills
to create the algorithms that drive these programs are in
increasing demand.
The field offers numerous entry-level opportunities.
Information companies seek individuals with a statistical
background or financial training for the teams responsible
for ensuring their distributed data is accurate.
For an overview of the kinds of companies involved in this
industry, see the member page of Software and Information
Careers in Financial Markets 2007-08
 www.efinancialcareers.com

Profile
Industry Association’s Financial Information Services Divi- Niel Siekerka, Global Head of Markets Data, Reuters
sion at www.fisd.net/about/members.asp.
Niel, tell us what you do exactly.
Skills & Qualities I run market data operations for Reuters. We collect and manage all
• Strong understanding of the financial markets or the the financial information that comes in from the exchanges, contribu-
ability to learn. tors and third parties, and we normalize it and produce output that
goes into our products. So, for example, we take data coming in from
• Analytical and statistical skills.
the New York Stock Exchange, format it into a Reuters presentation 53
• Good oral and written communication skills. and deliver it to terminals used by people like brokers and investment
professionals.
• Technology aptitude or programming abilities.
Could you walk us through your career path?
Software and Information Industry Association
Financial Information Services Division I graduated from Rutgers University in 1984 with a degree in econom-
Selected Members ics. I started my career at Dow Jones as a database statistician, col-
Bank of New York lecting financial information in real time, as well as historical data for
the electronic publication division. We created the Dow Jones Indices
Barclays Capital
and World Indices.
Bloomberg L.P.
Charles Schwab & Co., Inc.
After six or seven years I moved on to a project management position
overseeing global exchange data for a company called Telerate, which
Credit Suisse
Dow Jones had purchased. I then had stints as a vice president for a
Dow Jones & Company small company and at Merrill Lynch, where I was in charge of product
Edgar Online and pricing strategy. My next stop was my current position at Reuters.
Fidelity Investments
It seems that your career grew alongside the information
Goldman, Sachs & Co. technology sector.
IBM That’s true. As the technology grew, the scope of my responsibility
JP Morgan Chase & Company grew. First information from financial databases went into newspapers,
Lehman Brothers, Inc. then electronic publishing, and so on. Each stage had nuances that
London Stock Exchange required operational functions and technology and quality initiatives.
Marketwatch So what advice would you give to people starting their
McGraw-Hill Companies, Inc. careers in a more mature technology industry?
Merrill Lynch It’s a fine line between being open to learning new things, not limiting
Moody’s Investors Service yourself to current technology and seeking out new challenges, but
also keeping up on industry initiatives and training opportunities to
Morgan Stanley
set yourself apart as a subject matter expert.
Nasdaq Stock Market, Inc.
Reuters Ltd.
What does your typical day look like?
Societe Generale As a senior manager, I have a say in not just my group, but other
Standard & Poor’s Corporation
groups and divisions. Keep in mind Reuters is a global company. I have
people in every time zone. I take phone calls at 5 a.m. to make sure
State Street Global Advisors
I am able to participate in calls in Europe, and calls at 9 p.m. to take
Thomson Financial part in meetings in Asia. There’s not a set amount of hours I work.
UBS Ag
Source: SIIA

Careers in Financial Markets 2007-08

 The Campus Recruitment Process: A Survival Guide
Your first job could be the hardest one to land
With its glamorous reputation, high pay and potential for
international travel, investment banking exerts a mag-
netic attraction over business students. Each year, tens of
thousands of soon-to-be business school graduates apply
for a few hundred openings at each of the largest invest-
ment banks. Somewhere between 80 to 90 percent of those
who are offered jobs will come into the company directly
through on-campus recruiting.
In addition to on-campus events, banks use online ap-
plications and in-person interviews to filter the wave of
54 applicants. If you want to secure your spot on Wall Street,
start acquiring coursework, extracurricular activities and
social skills as early as possible. During your freshman and
sophomore years, the groundwork you lay in those three
areas will help you during the online and in-person inter-
views that come later, suggests Dr. Phil Gardner, director of
the Collegiate Employment Research Institute at Michigan
State University. “A lot of students don’t realize all the work
they have to put into the process before they get to the
interview,” he says.
Indeed, the search for your Wall Street job can start the
day you arrive on campus your freshman year. Check with
your school’s career center to see which banks recruit on
your campus and learn how to sign up for any events they
sponsor. Even if your school doesn’t draw the big banks,
it may have contacts with second-tier players. Ask which
professors have ties to investment banking and sign up for
their classes. Join any student clubs related to banking, and
volunteer to help run an organization. Next, visit the cooper-
ative education office to check on internships. Your school’s
career counselors should also be able to help you select the
right classes for the track you want to get on. For example,
investment banking requires more math than most business
students have, Gardner says. “When I’m working with ABN
AMRO, they’ll look for engineers and math majors.”
Surviving Application Forms
With thousands of applicants seeking positions, it’s not
surprising that investment banks use the Internet as the
starting point in the application process, or that their
online application forms eliminate over 50 percent of the
applicants. Since banks most commonly seek nothing
short of a 3.5 grade point average, numbers can knock an
applicant out. To help banks further winnow the remaining
high-achievers, online applications ask behavioral ques-
tions such as “Describe a situation in which you displayed
leadership skills to influence the outcome of an event.” To
do well, craft a detailed, concise answer that demonstrates
a skill used in investment banking.
“Don’t do the application in isolation,” advises Jeffrey
Rice, executive director of the Career Center at Ohio State
University’s Fisher College of Business. Start long before
the due date, so you’ve got time to gather feedback on your
answers from professors, alumni and fellow students.
Avoid common application mistakes: overly brief answers,
spelling errors, skipped questions and pasting replies from
one bank’s application form to another’s. Vivienne Dykstra,
a former investment banking recruiter turned graduate
recruitment consultant, believes the best applicants are the
first off the mark. Banks are quick to offer early applicants
an interview as soon as possible, she says. (For more de-
tails, check out the Employers section.) While you’re online,
purge any inappropriate material you’ve posted at social
networking sites.
Surviving Interviews
If you’re at a top-tier university, you’ll likely do a first-round
interview or attend an on-campus presentation followed by
a networking reception. “It’s in that time that you’re going
to make significant meetings,” Rice says. “We do a lot of
education around communication and e-mail skills - how to
be persistent without being annoying.” Before the event,
research the bank’s major clients and the markets in which
they’re active. “Even a mid-tier bank wants you to know the
business and what they do,” Gardner warns.
Practice interviews and other programs offered by the ca-
reer counseling center can help prepare you for more formal
on-campus interviews, designed to test your skills and
probe your personality. Usually, you’ll face a panel of junior
staffers from the business area to which you’ve applied,
along with a human resources professional (see Interview
Insiders: Know Your Q&A on page 59). Portray yourself as
a team player and a leader, with technical and company-
related knowledge.
If you succeed, your next step will be a second-round
interview at company headquarters. By this point, of 10,000
applicants, perhaps 600 will be left standing. And of these,
between half and two thirds will receive the coveted offer
of a full-time job.
Careers in Financial Markets 2007-08
 www.efinancialcareers.com

Q&A
Caitlin McLaughlin, Global Head of Graduate answers. Employees who say, “Here’s the problem and
Recruitment, Citi here’s my solution” are always preferred over those who
only say, “Here’s the problem.”
What advice do you have for a college student seek-
ing a job on Wall Street? What else is important for new employees to
Start looking in your junior year. Careers in financial understand?
services and investment banking are very competitive, so Wall Street is a business that demands a lot of its profes-
the best-prepared students are the ones who will receive sionals, but it gives a lot in return. And after what has likely
multiple offers. been a very successful college experience, you are about to
join a business that experiences market fluctuations, tense
To prepare, you need to diligently research each company.
hours and heavy competition from other firms. You have to
Know the differences between their business models, their
be prepared to ride out those waves. 55
analyst programs and, most importantly, their cultures.
Attend as many company-hosted events as possible where Most of our juniors were at the top of their class at a top
you can network and spend one-on-one time with company undergraduate institution, which they got into because they
officials. were the valedictorian or salutatorian of their high schools.
They’ve been winners all their lives. Now, they come into a
Too many students don’t do the work around culture to the
business where everyone has that same background. They
level that they should. All Wall Street firms do very similar
may work 100 hours on a transaction that their firm may
work. It’s the character and style of the company that can
lose. That may be their first experience losing, so managing
make your experience good or bad.
your way through those ups and downs is critical, because
What’s your advice for junior staffers? your firm may not always win — unless you come to work
Wall Street rewards excellence. As a junior person, you for us at Citi.
should develop your reputation quickly as someone who
does outstanding work and whose models and quantitative
analyses are always right.
When you’re in
“All Wall Street firms do college, if you turn
in a paper with one
very similar work. It’s or two mistakes, you
probably get an A-.
the character and style When you’re in this
business, if you turn
of the company that can in a pitch with one
or two errors, you’ve
make your experience failed. Whatever
you show to your
good or bad.” superiors should be
client-ready work.
You want to be perceived as an individual with a great
attitude who’s always willing to do what it takes to get the
job done.
Develop your leadership qualities. Become someone who
helps colleagues that need assistance. Be solution-ori-
ented, versus someone who finds problems, but offers no

Careers in Financial Markets 2007-08

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A Guide to Graduate Training Programs
The good news is graduate training programs at the
country’s top financial firms provide a wonderful entryway
to the business. The bad news is securing a spot in one can
be difficult. Competition is stiff and firms such as Citigroup,
UBS, Merrill Lynch and JPMorgan recruit the majority of
their MBA hires from the top-ranked programs. Recruit-
ing generally takes place online or on-campus, with visits
sometimes scheduled as early as mid-September. So if
investment banking is your goal, begin your job search as
soon as you unpack your suitcase.
“Banks start deciding who gets invited to dinner based on a
review of the resumes and interactions during the company
presentations, which start in the first half of September,”
says Jonathan Masland, senior associate director in the
Career Development Office at Dartmouth’s Tuck School of
Business.
Whether your campus draws Wall Street recruiters or you
have to seek them out yourself, start your job search by
visiting the campus career counseling center and coopera-
tive education office to ask about events, services and
internships for first-year MBA students.
“The career center can help you develop broader job-search
skills through workshops and self-assessments, to make
sure you’ll do well during screenings,” says Roxanne Hori,
assistant dean of the Kellogg School of Management’s
Career Management Center. The center can also help you
build an effective resume and help you develop interview
and networking skills. Says Hori: “You need cocktail party
skills.”
Getting There From Where?
Most people who return to school for an MBA are trying to
adjust their career from one sector to another, or from one
geographic location to another, according to Masland. “To
make that switch you need a strong desire to do investment
banking and the ability to craft a pitch that’s based on what
you’ve done previously, and that shows why you’d be a
good banker,” he says.
If you’re planning to use your MBA to land your first job in
investment banking, it’s important to narrow your focus to
a particular niche as early as possible, advises Hori. “Learn
about the industry and job functions,” she says. “Sales and
trading requires a different skill set than working in mergers
Careers in Financial Markets 2007-08
www.efinancialcareers.com
and acquisitions. If you’re an analytics lover, working in a
hedge fund might work for you.”
Next, hone in on geography and company size, so you can
tailor your research and networking to specific firms. For
example, says Hori, “if you thrive in a small company, Piper
Jaffray or Robert Garrett might be a good fit.” Talk to as
many people as you can who work in investment bank-
ing, but avoid using hiring contacts for this type of routine
questioning.
Summer internships are also critical for career-switchers.
57
“If you don’t do a summer internship, it’s going to be very
difficult if not impossible [to find work in investment bank-
ing after graduation],” warns Masland.
The Programs
Actual training programs differ from bank to bank. Some
place trainees in a particular position, while others rotate
MBAs through several departments. “If you know you love
energy and only want to work in energy, then pick a firm
where you know you’ll be hired into the sector you want,”
Masland advises. For graduates who aren’t certain which
niche is the best fit for them, firms like Lehman Brothers,
which does a rotation through several departments, is a
better fit.
In addition, consider firm size. “My advice for career switch-
ers is to go with a big firm,” Masland says. Why? “It’s
easier to go from a large, well-respected firm to a small
firm than vice-versa,” he explains. “There’s also more room
for you to come up to speed at a large firm. There are few
people and less wiggle room at a smaller firm.”
It’s also a good idea to try and secure a spot at a firm where
people from your school are in senior positions. That way,
you’ll have mentors likely to make sure you’re in on the best
deals, to mentor you and to protect you during downturns.
In the end, remember that training programs typically last
a few months at most. If you’re selected, treat the position
as you would an internship. “You need to look at it as a long
interview,” Masland says. “In the end, it’s about whether
you’re someone they want to hire. At the end of the day,
you want to get the job.”
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Interview Insiders: Know Your Q&A
Interviewers will try to trip you up
You’ve filled in application forms, you’ve excelled in
aptitude tests. All that remains is getting through the
interviews.
Now the real work begins.
Put it down to nerves or inexperience, but plenty of people
answer interview questions badly. Take, for example, the
man who was asked to provide an example of his persua-
siveness. He talked about enticing pigs to mate. Bad an-
swer. “It’s surprising how unclued-up people can be about
what we’re looking for,” observes one investment bank’s
head of graduate recruitment.
Some mistakes are self-evident. Angela Garnett, former
head of graduate recruitment at Lazard in London, recalls
a man who was asked if he read the financial press. He
said he found it quite boring. “It wasn’t a good answer,”
she observes.
So, what’s the best defense against gaffes during a high-
pressure interview? Preparation. You need to understand
the interview process, and anticipate the kinds of questions
you’re going to be asked.
Round One: Examples, Examples,
Examples
What banks are looking for is simple: They want examples.
Most use “competency-based” interview techniques, which
means - in the first round, in particular - candidates are
usually asked to provide examples of situations in which
they’ve displayed a particular competency. “We look for
specific examples of past behaviors which provide ex-
amples of future potential,” explains Nancy Labiner, former
head of Europe campus recruiting at Goldman Sachs. “We
don’t require investment banking experience. A candidate
can talk about a job at Starbucks if they can tie the experi-
ence to leadership, working as part of a team or dealing
with difficult customers, for example.”
First-round interviews are usually conducted by junior bank-
ers and graduate recruitment staff. You need to stand out,
because the numbers aren’t in your favor: At this phase,
a bank hiring 200 graduate trainees will interview around
1,600 people.
What Do Banks Want?
When it comes to behaviors, most banks focus on the same
things: team building, communication skills, assertive-
Careers in Financial Markets 2007-08
www.efinancialcareers.com
ness, leadership skills and being proactive. Joanne Scott of
Morgan Stanley says questions designed to elicit desired be-
haviors might include “Give an example of a situation where
you demonstrated leadership,” or “How would your friends
describe you?” Questions are designed to be open-ended.
Within reason, your responses can cover any subject area as
long as they’re detailed and specific to your own experience.
Round Two: Brain Teasers
Second- and third-round interviews are more technical, and
more frequently conducted by senior bankers. “Some busi-
nesspeople like asking bizarre questions and conducting 59
high-pressure interviews,” says Vivienne Dykstra, former
head of graduate recruitment at Deutsche Bank and now a
consultant on graduate recruitment techniques. “The idea is
to put candidates on the spot and grill them until they crack,
with a view to seeing how they react under pressure.”
David Schwartz, a financial services recruiter and former
global head of campus recruiting at Goldman Sachs, says
high-pressure interviews are increasingly frowned upon.
“HR people have to restrain bankers from asking these
questions,” he says. “In the end, a guy who knows how to
solve a brain teaser won’t necessarily be any good at bring-
ing in a corporate finance deal.”
Sample Brain Teaser Questions
Used by Banking Interviewers:
Q. At dawn on Monday a snail fell into a bucket that was
12 inches deep. During the day it climbed up three inches.
During the night it fell back two inches. On what day did the
snail finally manage to climb out of the bucket?
A. The following Wednesday, nine days later.
Q: A man drove from Aardvark to Beeville. On the first day
he traveled one-third of the distance. On the second he
traveled half of the remaining distance. On the third he
traveled two-thirds of the remaining distance. On the fourth
day, after covering three-quarters of the remaining distance,
he was still five miles from Beeville. How many miles had
he covered so far?
A: 175 miles: the total trip is 180 miles. On the first day
he traveled 60 miles, leaving 120 miles. On day two he
traveled another 60 miles, leaving 60 miles. On day three he
traveled 40 miles, leaving 20 miles. On day four he traveled
15 miles, leaving five miles.
 Demand High for Qualified Grads
Manage multiple offers to get that great first job

It could be called the bus syndrome: You’re waiting for a job At the same time, delaying for too long may mean offers
offer from an investment bank - and all of a sudden three explode beneath your feet. “All students will be given an
come along at once. What do you do? exploding date by which to make a decision,” says Brian
Hood, head of graduate recruitment at Citigroup in London,
If job offers were buses, you might be tempted to hop on
“After that, an offer will no longer be valid.” Schools
the first one and hope for a seat. But mismanaging the
typically demand banks give their students a few weeks to
decision-making process could take you way off the track of
make decisions. “We make it clear rapidly exploding offers
your career.
are unacceptable,” says Morton. “Otherwise, banks would
Multiple Offers be asking students to sign up at the end of interviews.”
In such a competitive industry, the chance of receiving One graduate recruiter at a bulge bracket bank says
60
multiple offers might seem unlikely. But career experts say deadlines can be stretched to a point. “We are very flexible.
top candidates could easily find themselves on the receiv- If someone needs more time because they’re interviewing
ing end of several opportunities. “We’re all targeting the somewhere else, we will typically give it to them. But we
same top students,” says Kristina Peters, head of graduate won’t do it twice.”
recruiting at Deutsche Bank in New York. “At business
schools like Harvard and Wharton, it’s not unusual for Be Honest
students to have four or five different offers.” If you’re juggling multiple job offers, should you tell the
banks pursuing you? There are clear advantages to doing
The best candidates are heavily pursued, agrees Connie
so: Realizing you’re a hot prospect, banks might offer ad-
Thanasoulis of Merrill Lynch corporate campus recruiting.
ditional incentives to help you make up your mind. Certainly,
“Top undergraduates and graduate students used to have
banks prefer for you to tell them everything. “We need to
an average of one or two offers each,” she says. “That’s
get as intimate as possible with candidates,” says Merrill
gone up to three or four, with exceptional candidates having
Lynch’s Thanasoulis. “It helps if we can get information
seven or eight offers from different banks.”
about who else has offered them a position, and how that
Don’t Delay influences their significant other. The more we know, the
“We are very flexible. If If you’re a one of those more likely we can get a candidate what they want.”
receiving three, four, seven When banks know what’s going on, they can be very per-
someone needs more or eight offers, you might suasive, typically inviting candidates to meet their potential
want to delay making a de- colleagues and assigning buddies (preferably an alum from
time because they’re cision as long as possible. the same school) to make frequent contact. If a spouse has
“Some students take pride reservations about relocating to the likes of New York or
interviewing in collecting offers,” says Chicago, for example, the bank’s lure may be extended in
Deutsche Bank’s Peters. that direction. Deutsche has helped spouses find jobs, says
somewhere else, we “They’re like a badge of Peters. Another bank said it has even offered to employ
honor.” But, remember: spouses itself.
will typically give it to Every job you decline is
an offer for someone else.
them. But we won’t “In the interests of their
classmates, we strongly
do it twice.” encourage students to make
their choices and move on,”
says Julie Morton, associate dean of MBA Career Services
at Chicago Business School.

Careers in Financial Markets 2007-08

 Managing Your Career
It’s about more than finding your next job
You tune up your car regularly. You see the dentist twice
a year. You balance your checkbook monthly and take
vitamins daily. You even clean out your closet from time to
time. It’s all part of ongoing life maintenance.
And your career? It needs attention at regular intervals, too.
So network. Keep your resume current. Listen when recruit-
ers call. From Day One, set down clear goals for yourself.
If you think simply having a job is enough, you’ve won the
battle but lost the war. Dawn Fay, New York-based regional
vice president of Robert Half International, recommends
a better strategy: taking a periodic “career inventory” - an
actual written timeline and action plan. “If you don’t set it
down, you don’t pay any attention to it,” she says.
62 In the inventory, itemize your skills and aptitudes, incorpo-
rate what you’ve done professionally to date, and include
what you’ve liked about your jobs - and what you haven’t.
List your future goals and what it will take to achieve them.
Try not to be too broad, too vague or too long-term, which
can be daunting. Rather, Fay says, “Break it down and start
small, with attainable, short-term goals. Give yourself
check-in points. That makes it tangible.”
A Tactical Plan
Then, Fay says, use the plan as a road map - but recruit one
or more co-pilots. A major career-management mistake is
trying to accomplish everything alone, in a vacuum. A better
approach is to “strategically reach out to people around
you,” Fay believes. “It’s important to enlist someone you
trust in the workplace, or a family member or friend who
knows you very well.”
Use those people as sounding boards for your ideas. Ask
them how they achieved their goals and to tell you about
the obstacles they faced along their own paths. Have them
help you assess your strengths and weaknesses, including
creative thinking, teamwork and oral and written communi-
cation skills. And stress that you need honest feedback. Fay
puts her money where her mouth is, periodically scheduling
time to talk with her father even though sometimes what he
tells her “is not always what I want to hear.”
Such trusted advisors will become part of your personal
network. And having a network, experts say, is crucial to
getting ahead.
Nurture Your Network
“Your foundation peer network is the people who do what
you do, not your industry or your company colleagues,” notes
John Challenger, chief executive of the Chicago-based out-
placement consulting firm Challenger, Gray and Christmas.
“Today few people work in one company all their lives.”
To establish a network, you have to get out there and
meet people. “Be very engaged with your world because
that’s where things come up when they’re least expected,”
Challenger says. “Visit customers and potential customers,
attend events within the industry and join professional as-
sociations. Share best practices and information. Build lots
of strong relationships with people who do what you do.
They know where the jobs are.”
“Some companies pick up the tab and pay to let you be in-
volved,” Fay points out. She also suggests staying in touch
with college classmates, talking with people in different de-
partments within your company and at other firms, reading
newspapers and trade magazines consistently, participating
in relevant Internet chat boards, and volunteering at chari-
table organizations that can expand your horizons.
Al Mariano, a salary professional/consultant with Robert
Half in Chicago, points out that networking is about more
than going out for drinks with your co-workers. In addition
to his work, Mariano teaches college-level courses at night,
belongs to local civic groups and volunteers at several
non-profit organizations. “I’m socializing and contributing to
the community. It’s a good feeling,” he says. Through these
groups, “I know people who say, ‘If you’re ever thinking of
transferring…’ It gives me another layer of security.”
Making a spreadsheet can help. “Organize your contacts:
the people you meet along the way, those you want to
stay in touch with, both internal to your organization and
external,” Fay says. “Knowledge is power. The more of it
you have, the better off you’re going to be.”
Fay also recommends regularly touching base with people
in your network. “It takes time to build relationships, and
your network might be a little bit cold if you only turn to it in
times of trouble,” she says - or, for instance, when you need
a job. “You’d be amazed at the information you can get or
give within your network.”
Careers in Financial Markets 2007-08

Accept Challenges, Stay Current
Danielle Domingue, vice president of investment banking re-
cruiting at JPMorgan in New York, says ongoing professional
education and constant teamwork are imperative and will
enable you to take calculated career risks. “Don’t be afraid
to move around and try different things,” she says. “(Other-
wise) you can get in a rut and not be sure how to get out.”
Challenger recommends developing skills in real-world
settings. “Being heavily engaged in your work and taking
on interesting, challenging assignments that give you a
strong skill set provides the background to solve the kinds
of issues and projects companies face,” he says. “Having a
record in those areas demonstrates your abilities.”
Additionally, keep on top of new legislation, systems and
technologies that apply to your work. Today’s state-of-the-
art skills will be obsolete in five years, so try to anticipate
the knowledge you’ll need to acquire.
And try working in multiple industries, Challenger says.
“Forty-five percent of people change industries when they
change jobs. You’re defined today by your profession more
than by your industry,” he observes. “We’re going back to
the age of the guild.” Thus, professional certifications can
provide a leg up.
Resuscitate Your Resume
Of course, you should always keep your business cards
handy. But it’s just as important to be able to place your
resume in the right hands at a moment’s notice. And that
means keeping it current.
Fay suggests updating your resume on a timetable that
works for you. That could mean tinkering with it every time
you acquire a new skill or certification, finish a significant
project or acquire a new position within your company. Or
it could mean reevaluating it at regular intervals (every six
months, for example). “It’s very hard to start from scratch
if you’ve not kept up your resume for a long time,” she
says. “Make time to do the things that will save you time
in the end.”
It’s also a good way to see if your career inventory is on
track or, as Fay puts it, “to keep tabs on yourself.”
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Challenger recommends updating your resume “each time
you finish something major, while it’s still fresh.” The rea-
son? “Companies are most interested in what you’ve done
within the last three to five years. Winnow out things over
10 years old.”
Charm Recruiters
Including recruiters in your network is also important.
Challenger says the best time to look for a job is “when
you’re not that interested,” adding, “Don’t wait until it’s
an emergency. Don’t leave it up to others (to decide) when
you make career moves.” Working through a recruiter is
often advantageous, Fay adds, because reputable recruiters
have established “a level of trust and understanding” with
employers.
63
To find recruiters, Fay says, “Talk to people you trust and ad-
mire.” Ask them whether they have used recruiters, either
to apply for a job or to hire for a vacancy. Then, she says,
identify recruiters who specialize in your field.
Remember that referrals tend to open doors, Fay says. So,
when you call a recruiter for the first time, “Use the name
of the person who referred you.”
And if a recruiter calls, remain polite and professional even
if you’re not job-hunting at that moment. “Be gracious,
even when declining (an offer), and don’t burn bridges,”
Domingue says. “Personal relationships are paramount in
this industry, and the world of banking is a very small place.”
Maintain Balance
When mapping your career path, make sure you actually like
the kind of work you’ll be doing. “A lot of people aspire to
be a CPA, CFP (certified financial planner) or to work in bank-
ing, but they just don’t have a passion for it,” Mariano says.
“Think it through and see if it’s something you’ll enjoy.”
But don’t focus on your career trajectory at the expense
of your personal relationships. “When you’re doing career
management, don’t forget to think about where you’re
headed in your personal life,” Fay says. “Make sure it all
fits together. Otherwise it can hurt.”
Thus, she says, “Keep the big picture of both in your mind.
Only you as an individual will understand the balance.”
 THE ROAD TO THE TOP JUST GOT SHORTER.

“One of the first things that attracted me to Key was its flat
organization. It offers greater senior management and client
exposure for junior bankers plus the opportunity to take on
more responsibility and develop new skills at an early stage.
It is indeed a unique opportunity for anybody interested in
developing a career in Investment Banking.”

Alejandro Cola – Associate, Consumer Markets Group

MBA from Owen Graduate School of Management at Vanderbilt University;
Economics Degree from Universidad de la República, in Montevideo, Uruguay

Strategy

Fast track to success.

KeyBanc Capital Markets offers you the career opportunity of a lifetime. You will join
an organization that is relationship-driven and focused on your success. As one
of the most respected corporate and investment banking institutions in the United
States, KeyBanc Capital Markets has gained a reputation for delivering strategic
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Technology and Mergers & Acquisitions.
Head of

To learn more about joining our team, please visit key.com/careers or contact Robin Kaness at robin_e_kaness@keybank.com.

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NYSE/NASD/SIPC, and KeyBank National Association (“KeyBank N.A.”), are marketed. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities
representatives, who may also be employees of KeyBank N.A. Banking products and services are offered by KeyBank N.A. ©2007 KeyCorp.

Voices of Experience
Professionals offer advice on investment banking careers
Caitlin McLaughlin, Global Head of Graduate Recruitment,
Citi
• Wall Street is a business that demands a lot of its
professionals, but it gives a lot in return. And after
what has likely been a very successful college experi-
ence, you are about to join a business that experiences
market fluctuations, tense hours and heavy competi-
tion from other firms. You have to be prepared to ride
Stephen Hoffmeister
out those waves.
Principal
Advent International
Preston Athey, Portfolio Manager, T. Rowe Price
• Take all the courses you can that are relevant. Go to
the best schools you can, because it’s an extremely
competitive industry. Get good grades.
• Do personal investing. It will not only make you a bet-
ter investor, but it will look good on your resume, it will
give you an edge over other candidates who have not
done that. And bring a copy of your brokerage state-
ment to the interview.
Barbara Z. Hammel, Managing Director, Strategy and New
Programs, Citigroup
Barbara Z. Hammel
Managing Director • Good communication and analytic skills are a must.
Strategy and New Programs
Citigroup • Have an interest in securities and the investor market-
place, and have a self-motivated, “can-do” attitude.
• Keep abreast of industry news, monitor market
changes and participate in industry associations.
George Wehbe, Head of Global Derivatives Operations, Citi
• To be successful requires a fundamental knowledge of
capital markets. To have an understanding of the way
the cash, stock and bond markets work and affect one
another goes a long way.
• Other areas that are important to understand are
George Wehbe
Head of Global Derivatives changes in foreign exchange, credit and equity deriva-
Operations tives. You need to be able to look at the basics of
Citi
product markets and build knowledge from that.
• This can be done in many ways, whether it’s from in-
formation readily available on the Web or in textbooks,
and through advanced certifications such as Series 7
licensing. It’s important to round out your skill set.
Careers in Financial Markets 2007-08
www.efinancialcareers.com
Stephen Hoffmeister, Principal, Advent International
• The majority of private equity firms are small informal
organizations who tend to hire few investment profes-
sionals. So, apply at several firms and know that many
of the best offers will come late in the recruiting season,
when recruiters are certain that they need to hire.
Carol DeNatale, COO, Americas Investment Banking,
Merrill Lynch
• For me, networking has been more informal in the
way I keep in touch with people or maintain relation-
ships. But I’m also very open with people and have
never been shy in asking for new responsibilities or
opportunities. You have to be open to meeting people
and getting to know who has access to information. 65
• It’s important to be honest with yourself about what
it is you like to spend time doing, and researching the
positions that might be a good fit. Don’t let someone
else define your career for you. And, of course, it’s
important to network.
Mary O’Gorman, Managing Director, Snelling Search, NY
• Start defining your goals as early as you possibly can.
For the better jobs on Wall Street, you have to get into
a track early on, or else you’re never going to get into it.
• Besides finding a mentor - and maybe more important-
ly - you should try to get yourself a “rabbi.” Mentors
provide advice. Rabbis provide sponsorship. Sponsors
can help you make a move.
Niel Siekerka, Global Head of Markets Data, Reuters
• It’s a fine line between being open to learning new
things, not limiting yourself to current technology and
seeking out new challenges, but also keeping up on
industry initiatives and training opportunities to set
yourself apart as a subject matter expert.
Heather Sahrbeck, Vice President, Associate General
Counsel, Goldman Sachs
• If you’re going to law school, you should have some
goal of using that law degree. If you’re not sure right
out of college, it’s not a bad idea to seek out a job to
figure out where you might fit in best.
 Take the Offer and Run
When to make a move for greener pastures

You’ve been in your first job a year when a recruiter brings ductivity benefits of promoting from within.” To position
you an offer with a better salary from a competing firm. themselves for those opportunities, Messmer suggests
You go into your manager’s office to resign and receive a employees make sure their managers understand their skills
counteroffer. Should you take it? and career goals.
No, says Bob Deissig, a partner at the Ayers Group, a New If you’re looking to move - internally or externally - Mess-
York-based human resources consulting company. Firms mer stresses you should know the skills required for the job
shouldn’t make counteroffers either, he adds, citing a you’re pursuing, and acquire any additional education you
survey in The Wall Street Journal that showed more than may need. Volunteer for new tasks to demonstrate enthusi-
90 percent of job seekers who accepted counteroffers were asm, and make your boss look good.
unhappy a year later. Most, in fact, ended up leaving their
When Deissig evaluates candidates for their ability to move
firm, voluntarily or not.
into a more challenging position, he looks for indications of
“In financial services, it’s like musical chairs,” Deissig says. inquisitiveness. “You often can see that outside of work as
“People from First Boston go to Morgan Stanley and people well,” he says. “You want to know if the person is a quick
from Morgan Stanley go to UBS, and it just rotates.” learner, if they go outside the box rather than always taking
66
things in logical succession.”
Why Leave?
Rather than bring in a new hire who has to learn all of a Finally, says Messmer, candidates should help prepare their
position’s responsibilities, banks and financial services successor. Doing so allows you to move on without burning
firms seek exact fits. For the employee, pay is often the only your professional bridges.
difference between one company and another. “That means Learning Opportunities
the only pull for a person to leave their current company
“We tell clients to be more flexible and provide learning
is more money,” says Deissig. “If there isn’t a lot of push,
opportunities,” says Deissig. When they take that approach,
when they go in to resign it becomes very commonplace
hiring companies provide more than just additional money
to counter. So, why should they leave when their current
for the same opportunity: They offer candidates the chance
employer just matched the salary offer?”
to learn new areas of the business.
Often, the answer is because the employee was unhappy,
In addition, “If a person has the right experience, if they
either with a manager or the company’s culture. In such cas-
are smart and have a degree of learning agility, it is not a
es, his decision to accept a counteroffer will lead to second
leap of faith to move that person into a bigger job,” Deissig
thoughts in the months ahead. As for his managers: They’ve
says. The result is a win-win for recruiters, candidates and
just learned the employee isn’t loyal, and may spend their
banks. The recruiters have a wider range of people to pres-
time looking for a replacement.
ent, firms get to look at a group of highly skilled, eager job
Running up the Ladder candidates, and job-seekers have an incentive greater than
just money. For everyone, the outcome is a loyal employee
That replacement may well come from within the company.
who has grown into a new position.
In a recent Robert Half survey of executives at the largest
1,000 companies in the U.S., 60 percent of the respondents
said they were more likely to promote from within than they
were three years ago. Max Messmer, chairman and chief
executive of Robert Half International and author of Manag-
ing Your Career for Dummies, says that job-hopping can
be an attractive way to advance in times of low unemploy-
ment. However, he notes, “employers value loyalty, and the
best growth opportunities often are internal, particularly
among those firms that recognize the morale and pro-

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

How the Right Recruiter Can Push Your Career

Know what you’re doing to play the game

Recruiters get a bad rap, with some of Wall Street’s uniniti-
ated believing they’re a chromosome apart from telemarket-
ers. But if you think that way, think again. A good search
consultant is your ally through thick and thin, and search
firms can provide you with a network of potential jobs that
may not otherwise be available. In other words, this is an
important relationship, which you should handle profession-
ally and properly.
Your first task? Get noticed.
Putting Yourself on the Map
“A lot of job seekers think that getting attention is just a
question of barraging people with resumes and endless
telephone calls,” says Allan R. Starkie, a partner at New
York-based executive search firm Riotto Jones & Company.
While Starkie says such tactics won’t win you any friends,
if your phone isn’t ringing you’d do well to take matters into
your own hands. To show you know what you’re doing:
• It’s often easier to make human contact with contin-
gency recruiters. Because they’re only paid for suc-
cessful hires, contingency firms are more likely than
retained firms to consider resumes that come in over
the transom.
• Ask for referrals from colleagues or friends. Says
Janice Reals Ellig, co-chief executive of the retained
search firm Chadick Ellig: “One of the best ways to
get on my radar is to be referred by someone I know,
including clients.”
• Research respectable firms operating in your area.
Search the World Wide Web or visit the library to
consult the Directory of Executive Recruiters, which
profiles practice areas, size and salary level handled.
• Send an introductory e-mail to the search partner
who handles your area at a particular firm. Follow
up by phone no more than twice. If you don’t get a
response, don’t nag - just go to the next search firm
on your list. If you do make contact, try to get a face-
to-face appointment.
Face to Face
Use your meeting to gauge the search consultant’s profes-
sionalism. “Look at the office space. Ask about the person’s
experience with the Wall Street product they’re handling,
what kind of placements they’ve made and what firms
they’re dealing with,” says Susan Teeman, president of
contingency search firm Teeman Perley Gilmartin.
You may find yourself opposite a less-than-professional
recruiter. If he or she is sitting on a hot opportunity, you may
still want to proceed after ratcheting down your expecta-
tions and setting a strict policy against their sending your
resume without permission.
At your initial meeting with a recruiter:
• Be prepared to explain why you’re different from all the
other candidates. “I always ask ‘What do people say
about you?’” says retained search consultant Ellig. “I
want to hear in a concrete but not arrogant way what
you’ve accomplished and what differentiates you. If 67
you’re going to be too shy about it, that’s not good.”
• Know your product, understand the movement in the
marketplace, what’s going on at different firms and
what’s happening in your sector.
• Don’t be negative about previous bosses or companies,
and don’t divulge confidential or proprietary infor-
mation (“I don’t know if I should be telling you this,
but…”).
Even if you don’t fit a current opening, keep the long view
in mind. Ask the recruiter for introductions to three people
who might be helpful as you explore your options. Good
search consultants know the value of introducing worthy
clients to one another.
To wrap up an interview, ask if it’s okay to e-mail every 8-12
weeks to check on new searches. And send a thank you note.
For this, e-mail is good but a handwritten note is better.
Information Exchange
Once you’ve made contact with a recruiter, maintain the
relationship. One way to do this is through information
sharing.
As president of the New York-based retained search firm
Jay Gaines & Company, Jay Gaines advocates building
relationships with several recruiters whose careers will par-
allel yours. “You really want to share information because
recruiters can be a wonderful source of what’s happening in
the industry and a good source of advice,” he says.

Careers in Financial Markets 2007-08

 How to Blow Your Career in 90 Days or Less
Successfully managing a job transition

Don’t think that you’ve got a honeymoon period in store This is the way we did things at our company, and it was
during the first months of your new job. In the results-ori- better.’”
ented world of finance, the focus is going to be on instant
Instead of coming on so strongly, take time to analyze and
gratification - for your new employer, not you.
understand your new environment. Acknowledge the firm’s
“In all cases, they expect you to hit the ground running,” successes before taking a hacksaw to its failures - and
says Peter Gonye, co-head of search firm Spencer Stuart’s don’t voice your opinions in a critical or unflattering way.
private equity and investment banking practice.
Not surprisingly, many new hires find it easier to transition
To prepare yourself, “you should certainly understand what into places devoid of settled fiefdoms. “Companies that
type of culture it is before going in,” adds Janice Reals are in a really heavy growth mode are much more fluid,”
Ellig, co-chief executive of the retained search firm Chadick says Ellig.
Ellig. “Some are bureaucratic, while others are more run-
with-the-ball entrepreneurial.” Slower is Better
At least one observer would like to see companies go a
Preparation begins before you’ve even received a job offer.
little easier on new employees. “To expect a stranger to
68 During the interview process, investigate the people who’ve
come into a company and
held your position previously, as well as your future boss
and other successful figures within the company. Find out
really have credibility
and confidence and be
“During the interview
what’s made them successful (or not), and learn all you can
about how they operate. Make sure you’re crystal clear on
able to hit home runs,
I think is dumb,” says
process, investigate
your boss’s operating style: Is he or she a big communicator
or not? Are you expected to operate independently or check
Jay Gaines, president of
New York-based retained
the people who’ve
in every step of the way?
Once you start your job, don’t be surprised if you’re pretty
search firm Jay Gaines &
Company.
held your position
much abandoned to your own devices.“Companies often
don’t welcome you with open arms because they don’t
Gaines prefers the previously, as well
approach of one client,
know how to,” says Ellig. “They’re so busy working on
things that they seldom communicate, or they fail to
“a top asset manage- as your future boss
ment firm,” which tells
communicate.”
candidates, “Look, for the and other success-
The ‘Other Place’ Trap first year, we really would
In his former job as head of international human resources
prefer it if you wouldn’t ful figures within the
do anything. Learn our
at Merrill Lynch, Sean Woodroffe observed many instances
of over-eager but insensitive
culture, learn how we do company.”
things and then act.”
“Once you start your new hires committing cor-
porate suicide. “One of the
job, don’t be sur- classic missteps was the
‘I’ve-done-it-better-at-the-
prised if you’re pretty other-place’ syndrome,” he
says. “I’ve seen instances
much abandoned to of senior executives coming
in and saying, ‘The way you
your own devices.” guys do things is archaic.

Careers in Financial Markets 2007-08

 www.efinancialcareers.com

‘Managing Up’ is a Key to Promotion

Managing up isn’t the same as kissing up. Not by a long shot.
Master it, and your career possibilities grow exponentially.
Managing up is about knowing how to create a work
environment that produces the best result for three entities:
you, your boss and the company you both work for. Like
other workplace tasks, successfully managing up involves
planning, communication and timing.
“It’s important to manage up, across and down, but particu-
larly up,” says Abe Weiss, director of the Rutgers Center for
Management Development in Piscataway, N.J. “You want
to create perceptions in terms of the way you build relation-
ships so you can be identified as
“Managing up re- a higher-potential professional
within your organization, and be
quires mastery of the eligible for training, development
things, she says, that “save time, save effort and may in the
long run save money. They help you get ahead, get along
with the boss and show off what you can do.”
For example, Tierney says, be sensitive to the best - and
worst - times to approach your boss. Be prepared with vari-
ous alternatives for approaching a particular project. “Come
in with clear-cut options, so the impact of the resulting
decisions will be clear,” she advises. Or if you’re scheduling
a meeting, ask your boss about the best time for him or her
to attend.
Tips for Effectiveness
Anthony Panos, the Manhattan-based director of the man-
agement development and human resource management
programs at Cornell’s Industrial and Labor Relations School,
says managing up also involves becoming an advocate for
69

and promotion.”
yourself and your career. He offers these tips:
‘concepts and vocab- So what exactly does “managing
• “Become a citizen of the organization. As your tenure
ulary’ of your work- up” mean? Weiss says it’s “being
able to offer solid informa-
increases, just doing tasks is not enough.”
• “Be aware of the assumptions you have about yourself
place and ‘the ability tion” and being “responsive to
requests that come down.” He and other people in the organization.” These may limit
your vision.
to listen actively.’” sees it requiring mastery of the
“concepts and vocabulary” of • “Empathize with your manager. Know his or her hot
your workplace and “the ability to buttons and what drives them.”
listen actively.” These skills will enable you to ask higher-
level questions, and therefore be perceived as a strategist. • Use language (both spoken and written) everyone
In turn, you may be given access to information unavailable understands.
to others. • Be aware of your own story and how you tell it. “Use
straight talk, not emotion. Be neutral and fact-driven.”
Communications and
Relationships • “Use ‘no’ as a problem-solving opportunity to help your
All this requires honing both hard and soft skills. Weiss boss accomplish what he needs.”
suggests taking “any courses you can in communication, • Be a team-builder within your own group. “Be at
building and managing relationships and on team manage- the forefront while preserving the position of the
ment and presentation skills. It’s essential to understand manager.”
how to present material and what loses a crowd.” And
remember, he says, that when you’re standing before a
group, you’re “a proxy for your sponsor.”
Maureen Tierney, a management consultant in New York
and former associate dean of the graduate school of busi-
ness at Fordham University, teaches a core course there
called “Fundamentals of Management.” In it, she tells
students that managing up involves “little things and com-
mon-sense things that are often overlooked.” They’re the

Careers in Financial Markets 2007-08

 What it Takes to Make Managing Director
And why not everyone is cut out to be one
Those promoted to managing director have made it.
They’ve obtained the highest title an investment bank can
bestow. They typically make more money, shoulder more
responsibility and are admitted to an elite inner circle, often
complete with its own dining rooms. Bankers who don’t
make the cut are left wondering if they ever will.
Rungs to the Top
Becoming an MD is nothing like becoming an associate or a
vice president. While low-level promotions can typically be
swung with a good word from a direct boss, the selection
of MDs is a more complex process. While each bank has its
particular foibles, all start with a short list in a process that
begins at the grassroots and ends at the highest echelons.
70 Throughout, existing MDs play a pivotal role.
In the first stage, vice presidents who excel in their annual
assessments are nominated by the managing director in
charge of their team. David Charters, a former MD in equity
capital markets at Deutsche Bank, says the luckiest VPs are
nominated within just two years. “Everything needs to go
according to plan: deals come in, you get to work with big
producers and they are big enough to credit you with your
contribution,” he says.
In the second stage, team leaders present nominations to
a group of MDs convened especially for the purpose. The
group assembles a list of the most exceptional candi-
dates. Jean Facon, a JPMorgan managing director turned
recruiter, describes the evaluation process as collegial:
“Typically, a committee of managing directors considers
names on a case-by-case basis,” she explains.
Once the names have been debated and the cream of the
crop is selected, the list of candidates is presented to ex-
ecutives higher up the ranks. At UBS, for example, members
of the investment banking board review each nominee’s
suitability. “The chairman is briefed on who is who and
approves their promotions or not,” says one banker. At this
stage, disapprovals are unusual.
If you want this all-important title inscribed on your business
card, use the following strategies to boost your chances.
Make Friends in High Places
Given the pivotal role played by current MDs, who knows
you and who likes you are critical. “It’s the ‘in’ crowd versus
the ‘out’ crowd,” complains one would-be MD. If you’re go-
ing to make it, you need to navigate your way to using one
of the bank’s stars to guide you.
The solution sounds simpler than it is: Find someone senior
who likes you and respects your work. “There is merit in
attaching yourself to a big producer,” says Charters, the
former Deutsche MD, “particularly one generous enough
to credit the team for achievements. If not, you could put in
four or five years at VP level and still not make it.”
Make Lots of Money for the Bank
Revenue generation is not the only criterion for making MD,
but it’s certainly one of the most important. “It is not only
about long service. You have to make the fees,” says an MD
and head of department at a U.S. bank.
“Numbers speak louder than words,” adds an MD in
equities at a German bank. “Lots of people are involved in
deals, but only a few make the difference between success
and failure. You need to show you are one of the few.”
Treat People Well
MDs are good managers. They should know how to bring
out the best in people. You won’t be promoted if you reduce
junior colleagues to tears for making a spelling mistake. On
top of that, banks also want MDs to demonstrate their core
values (typically found somewhere on their Web sites) both
inside and outside of work.
Do All This Consistently
It won’t be sufficient to make high-level friends in the
months just before promotions are considered, or to
suddenly become sweetness and light when you have a
reputation as a dragon. “A late lobbying effort is unlikely
to make any difference,” says recruiter Facon. “You need
years of a consistently strong track record, both in terms of
performance and in adhering to common values.”
Handling Failure - Without Failing
Candidates typically get two shots at promotion after
graduating to the short list. If you don’t make it twice in a
row, your chances are severely depleted. If that happens,
console yourself with the fact that MDs are not always
the most highly paid, and hold a heavy plate of managerial
responsibilities to boot. Or, you can try your luck elsewhere.
If a new bank really wants you, it might bring you on as an
MD, sidetracking the usual process entirely.
Careers in Financial Markets 2007-08

Effective Networking
Today, networking remains a critical component of the
business school graduate’s job search. Even with the help
of campus career advisors, visiting corporate recruiters, and
corporate career fairs, many more unadvertised job opportu-
nities go to the savvy individuals willing to take the time to
connect with key people in the industry. And, with competi-
tion for opportunities in the finance field at an all-time high,
networking helps to separate a candidate from the pack.
Keosha Moon, assistant director of recruiting for the MBA
Career Management Center at Emory University’s Goizueta
Business School, says, “In a society where much of busi-
ness is relationship-driven it should come as no surprise
that networking is imperative for a successful MBA career
search.” She encourages students and graduates to “take
advantage of their broad network in terms of alumni,
faculty, peers, staff, undergraduate ties, family, friends, and
more,” and refers to networking as a “life skill.”
Moon adds, “We are of the opinion that students should
approach networking not from the point of view of what
someone can do for them, but rather what they can do for
someone else.” She does caution that networking is just
one of the many things critical to a successful job search,
adding that it doesn’t replace the importance of research,
technical skills, and solid work experience. However,
researching and building industry know-how can also lead
to other networking opportunities. Take the time to research
and join the myriad of industry organizations and MBA as-
sociations also valuable for networking.
Becoming and staying a member of an alumni associa-
tion also helps to build and maintain those contacts in the
finance field. More importantly, internships held during the
graduate school years can lead to important networking op-
portunities, especially if students are diligent in maintaining
ties to their former supervisor or boss. Outstanding students
should also reach out to key professors, as faculty members
often handle consulting work for Corporate America and
may be able to offer a direct introduction to a key player in
your field.
Daphne Atkinson, vice president of industry relations for
the Graduate Management Admission Council, reminds,
“Networking pays significant dividends in one’s career, but
it can’t be something that you merely engage in for the
short-term.” She suggests establishing a plan to develop a
network of individuals valuable to the job search. She adds,
Careers in Financial Markets 2007-08
www.efinancialcareers.com
“Networking isn’t a static thing. Remember to keep yourself
in the loop even when you’re not looking for a job, because
there will come a point in time when you just may be.” She
also suggests helping others with their networking goals,
as Moon suggests. Says Atkinson, “The process has to be a
two-way street to be effective.”
While women and minority MBAs remain underrepresented
in the finance field, Atkinson notes that good networking
skills can bridge the gap for these students. She suggests
that those interested in the finance field reach out to the
National Association of Women MBAs, the National Black
MBA Association, and the National Society of Hispanic
MBAs. Atkinson adds that these groups do help to increase
networking ties, as these associations specifically seek to
aid in career development. She notes, “But, remember to 71
always be open to contacts that may be outside of your
realm of experience, and don’t discount any source avail-
able to you.”
And today, as more people use the Internet to connect and
meet, online social networking sites, such as Facebook.
com and MySpace.com, are also being used to highlight
an individual’s educational background and job skills. Of
course, getting an employer to tap into your MySpace page
may not be considered the most professional move just yet.
It’s also important to remember that anything you put online
(even the things that aren’t career-related) can also come
back to haunt you, so be selective in the things you plan to
upload. One set of potential employers may never check
out your MySpace page, but another overly curious hiring
manager might also take a chance and Google you, only to
find something particularly embarrassing.
Targeted career blogs can sometimes be a valuable
resource or even a wonderful way to pass on sage words
about an interview with a particular accounting or bulge
bracket firm. Of course, as with anything on the web, do
a little legwork to make sure any information garnered
virtually is accurate. Another site, LinkedIn.com, bills itself
as a business networking tool, and now professionals in
a variety of fields, including finance, are tapping into their
online resources, which allows job candidates, corporate
recruiters, and hiring managers a controlled place to inter-
act on potential job opportunities.
 www.sgcib.com

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C a p i t a l M a r k e t s ■ D e r i v a t i v e s ■ S t r u c t u r e d F i n a n c e

Recruiter Q&A: Mary O’Gorman, Managing Director,
Snelling Search, New York
What’s the most important advice you would give
someone embarking on a career in finance?
Work in a revenue-generating area that is profitable and
growing, leverages your background, skills and interests,
and has breadth and depth.
You should be asking yourself, “What segments of finance
are making the most money right now, and which ones
will be driving the bottom line in three years, five years, 10
years?” The closer you are to the revenue-generating areas
of the firm, the better off you’ll be.
What else should people do to take control of their
early career?
Start defining your goals as early as you possibly can. For
the better jobs on Wall Street, you have to get into a track
early on, or else you’re never going to get into it.
The top firms take in summer interns from the top under-
graduate schools, then hire graduates from those internship
pools to be analysts. Last year there were very, very few
people selected for analyst programs who were not part of
the internship pool. And both Wall Street and private equity
hire junior associates from among people coming out of two-
year or three-year analyst programs at investment banks.
Getting on the track early is equally important for a career
on the buy side. Once you become an associate at an
investment bank, it gets tough to move to the buy side.
Employers feel that if a candidate was truly interested in
the buy side, that interest would have shown up sooner.
It’s said that most jobs are found by networking. Is
there a right way and a wrong way to network?
It’s not something you should first start when you’re looking
for a job. It should be a big part of your life. The opposite of
networking is isolating yourself. That’s not good. It’s impor-
tant for both personal development and business develop-
ment to be out and about and engaging with people. Then,
when you have to reach out during a job search, it won’t be
a big shift. It comes naturally out of your experience.
Industry conferences provide great opportunities to network.
Use your school to find networking opportunities. And, culti-
vate relationships with people you meet through your work.
This accounts for much of the historical success of country
clubs, and even churches. They are avenues for networking.
Careers in Financial Markets 2007-08
www.efinancialcareers.com
How can people get the most benefit from recruiters?
If they don’t know about you, or forgot about you, they can’t
hire you. So make yourself visible in the industry. Get listed
in directories. Go to networking events, whether through
your school or through your company.
Bear in mind that recruiters work to fill specific slots. So if
a recruiter doesn’t pursue your candidacy, all it means is
you’re not a fit for that particular slot.
How should you go about finding a mentor?
The bulge bracket firms have organized efforts to mentor
people. But I would suggest trying to pick your own men-
tors. It doesn’t have to be a formal process.
Besides finding a mentor - and maybe more importantly
73
- you should try to get yourself a “rabbi.” Mentors provide
advice. Rabbis provide sponsorship. Sponsors can help you
make a move.
So how do you find a sponsor or “rabbi”?
This kind of relationship arises over time, based on recogni-
tion of mutual need. It’s an alliance, like in the TV series,
“Survivor.” It’s also an opportunity for an experienced
person to help someone. Many people enjoy helping others.
No matter what your job, you must strive to add value and
have people be aware of that. It isn’t essential to have a
mentor or a sponsor for that to happen, but it helps.
What qualities does Wall Street most want from
entry-level hires?
First, top academic background - top schools, grades, SAT
scores. The SAT although taken in high school, is useful for
comparing people from different colleges, and because it’s
believed to measure aptitude rather than knowledge.
Second, a general sense of purpose, a record of accom-
plishment and compelling answers to these questions:
What do you want to do?; Why do you want to do it?; What
can you share with me about your prior accomplishments
that would convince me that you’re going to be good at
it? A demonstrated early and avid interest in finance can
sometimes help. And, having done your homework about
the company and position is critical.
Third, good communications, confidence and a pleasant per-
sonal manner. Employers want people who are articulate,
can easily engage other people and put them at ease.
 Building Effective Relationships With Mentors
Think outside your company for career-long nurturing
While many Wall Street firms have mentorship programs,
the most useful relationships are usually those sought out
by the protégé, believes Susan Battley, a New York-based
executive coach and author of Coached to Lead: How to
Achieve Extraordinary Results with an Executive Coach.
“Formal programs tend to under-deliver because so much of
mentorship is not so much interest-driven, but personality-
and compatibility-driven,” she says.
Battley advocates finding multiple mentors for your various
professional goals. One person may help you with concrete
ambitions like getting up to speed on technological issues,
while another may be a sounding board for more sensi-
tive, interpersonal topics. “Don’t put all your eggs in one
basket,” she advises. “Instead, cast a wide net and build a
74 personal advisory board.”
Beverly Kaye, CEO and founder of Career Systems Inter-
national, a Pennsylvania-based career consultancy, says
a mentorship’s real value often isn’t apparent until many
years down the road, when the mentor knows the younger
person well enough to offer truly insightful advice and feed-
back, as well as the confidence to share their most prized
contacts and connections.
“Long-term, a mentor gets to know you in a way you don’t
even know yourself, and they can offer open feedback that
you would not get from others,” Kaye says. “The longer you
know a mentor, the more willing they are to connect you with
their friends and resources. And a senior person is in the
information flow in ways the junior person is not. They can
share warning signs, or show them the writing on the wall.”
Some advise taking the idea of mentorship even further.
Mary O’Gorman, managing director of Snelling Search in
New York City, suggests getting what she calls “a rabbi.”
What’s the difference? “Mentors provide advice,” says
O’Gorman. “Rabbis provide sponsorship. Sponsors can help
you make a move.”
Like Kaye, O’Gorman sees value in relationships that
develop over time. “It’s an alliance, like in the TV series,
Survivor,” she says. “It’s also an opportunity for an experi-
enced person to help someone else, and many people enjoy
helping others.”
When seeking and nurturing a mentorship, remember:
• Take it easy when approaching a potential mentor.
Ask them for coffee, or casually inquire about their
background or expertise. Asking a stranger, “Want to
be my lifelong mentor?” is weird.
• Keep an open mind when it comes to mentors.
Consider more than one, and for goals both specific,
nebulous, long- and short-term.
• It’s a two-way street, so consider what you can offer
the mentor. Perhaps you have insights into new-recruit
impressions or a specific type of technology the older
person would find useful. Or perhaps you can return the
favor of guidance with research for a specific project.
• Be open and authentic. Just like a personal relation-
ship, a mentorship will be richer if you show your
vulnerabilities and weaknesses.
• Remember that the mentor gets something out of help-
ing. Kaye, who has mentored many people though her
career, says “there are a number of young people I sin-
cerely want to help and give the benefit of my wisdom
and connections in the field. I get a good feeling that my
legacy is living on and that I get to expand my touch.”
Finally, bear in mind that developing a network means ex-
tending yourself. Too many people on Wall Street - particu-
larly women and minorities - spend most of their time with
people just like themselves. They lunch with them, socialize
with them, and generally spend their time and energy
networking with them rather than forging bonds with upper
management. Not only are they failing to make friends in
high places, they’re actually inhibiting their growth poten-
tial at their company.
Networking with peers rather than higher-ups is more
than simply a series of lost opportunities: It can hurt you
if managers think you’re breeding contempt in the office.
Maria Mulqueen, who has worked in the IT departments
of several financial services firms, says women sometimes
believe they’re the victims of sexism in the workplace, and
complain to each other about it. In doing so, they cre-
ate what she calls the “henhouse effect.” Whether their
bosses’ initial actions were sexist or not becomes moot
as they create an environment buzzing with acrimony and
ill will. “You walk in the room, and you can tell they were
just talking about you,” she says. And no boss is going to
respond well to that.
Careers in Financial Markets 2007-08

Trading’s Changing Dynamics: Is Macho Moving Out?
The trading floors are seen as a rough and tumble environ-
ment, fit for a man’s man. But with the advent of electronic
trading and the influx of more women into financial fields,
could this state of affairs finally be ending? Overall, as floor
traders morph into desk traders, the nature of trading itself
is certainly changing. Still, expectations can sometimes be
more difficult to alter.
The stereotypical man’s man trader still exists to some de-
gree, especially for those who are trading from the floors of
the various exchanges, says Drew Mandler, a managing di-
rector of capital markets for the Southport, Conn., office of
Smith Hanley Associates, an executive search firm handling
the quantitative end of Wall Street. “These are certainly
hard charging individuals,” he notes, simply because of the
physicality of the trading floor environment. In the past,
being big and assuming your spot may have helped you
win the trade. But today’s increasingly electronic trading
environment is shaking up the status quo. In fact, the move
to electronic trading could be one thing that helps get rid
of the man’s man, as trading moves away from pushing and
shoving and toward an IT-driven and quantitative approach.
Eli Radke, a market analyst for Secrets of Traders, a
Chicago-based trading education company, agrees. The
move to electronic trading does help open opportunities
for financially savvy women, at least to some degree, he
says. Radke, who trades from a desk, remembers the more
physical environment from his past experiences on the floor
of the Chicago Mercantile Exchange. “Certainly, things are
changing,” he observes.
Still, large numbers of women have yet to make it on the
“upstairs,” or desk end, of the game, says Smith Hanley’s
Mandler. Even with the right mix of experience and quan-
titative expertise, he says female traders need to have a
“thick skin” to break into this traditionally, all-male working
environment.
Changing Times
With the times changing and more women entering the
workplace, the shift will continue as many of the major
investment banks and trading operations go out of their
way to implement written policies that discourage frater-
nity-like atmospheres. Of course, legislating behavior and
getting people to behave more professionally can be two
different things. “It is definitely much less of a locker room
Careers in Financial Markets 2007-08
www.efinancialcareers.com
than it used to be, but it’s still not perfect,” says Mandler.
Luckily, firms are in recruitment mode, and are aware of
the lack of women on Wall Street. Many of the larger ones
are on the lookout for top female graduates in business
and finance-related degree programs. It also doesn’t hurt to
have relevant certifications under one’s belt, particularly the
CFA (Chartered Financial Analyst) designation, to make your
resume float to the top of the pile.
One senior level arbitrage trader in New York City, who has
more than ten years of experience in derivatives, agrees
that women in the field need to be hardy sorts. At the same
time, he notes this is true for almost anyone in an occupa-
tion as risky as trading. While saying today’s traders, simply
because of the quantitative skills they need, are better
educated and more disciplined than their brethren of the 75
past, he observes, “These are still individuals who tend
to have large personalities - people who can be confident
with taking on big risk. Everyone still expects the flash - the
big watch, the nice car and boat, but the reality is shift-
ing. Successful traders now come in all types, and some
of them even live quiet suburban lives.” But it really does
take an entrepreneurial spirit to get ahead in this game, and
especially in volatile trading times.
Fortunately, more firms are putting formalized training
programs in place for the top math graduates at America’s
better college and university programs, this trader says.
“Quantitative reasoning is replacing the good old boys’
network of yesteryear, and even smaller firms are looking
for those with advanced computer and math backgrounds,”
he says. “You can see that many of today’s hedge fund
managers and financial entrepreneurs who started at one
of the big firms struck out on their own after honing their
skills.” The ability to trade large amounts of capital and
the discipline that their risk management teaches them
provides an advantage over the individuals from smaller
firms, he notes.
 Don’t Underestimate Your Alumni Network
Jon Howell, a Harvard MBA, refers to himself as “the alum-
ni-association networking poster child.” After a 25-year
career at commercial banks in New York (his last position
was at Citibank), in 2002 he decided he needed a lifestyle
change. Given the opportunity to run a software company in
Irvine, Calif., he packed up and moved to an area where he
knew very few people.
“I decided I needed a network,” Howell recalls. “So I sent
a few e-mails to the Harvard Business School Association
of Orange County,” one of 116 local HBS clubs nationwide.
He gradually ramped up his involvement to the point where
he’s now its managing director. He figures he has a network
of about 300 people - some 200 in the club and 100 outside.
Additionally, Howell sold the software company about two
76
years ago and founded Core Strategies, a consulting firm,
with two senior partners who also are Harvard Business
School graduates.
Howell’s story neatly summarizes the benefits of network-
ing within your alumni association. You all speak the same
language, because you understand the type and amount of
work it took to make you a member. There’s built-in loyalty
to the school and your alumni-association peers. Whether
on a local or national level, the network will support you
throughout your entire working life. And, whether you’re
looking to find a job or to fill one, there’s an inherent, pre-
screened pool of talent and contacts you can tap into.
In other words, says Eric Mokover, associate dean, career
initiatives, at the UCLA Anderson School of Management,
an alumni association is “the single most important facility
to enable students to get jobs, and for companies to recruit
successfully. Alumni have a real emotional connection to
the school and therefore are going to work harder in a place
where they know what the quality’s about.”
That sense of connection makes some alumni efforts verge
on the heroic, Mokover says. As an example, he describes
one Anderson alumnus - a managing director in capital mar-
kets at Citigroup - who was on a business trip to London.
He’d promised to meet with a small group of students in a
mentoring session, so he flew to Los Angeles before return-
ing to his office in New York.
If not for the lobbying by another alumnus, a senior manag-
ing director at Bear Stearns in New York, Mokover says,
the bank “would have dropped us” after three years of
unsuccessful on-campus recruiting. Without that graduate’s
intervention, he says, “We would have blown a relationship
with an important bank.”
A third graduate, a managing director at Morgan Stanley,
“drops everything she’s doing to coach students,” Mokover
says. And a managing director in private equity funds on
the investment-banking side, “will go through walls for our
students to try to help them.”
Old School Ties that Bind
Career-services professionals at other schools see similar
dedication. Barb Hewitt, senior associate director of career
services at the University of Pennsylvania, says, “We have
a huge number of job openings from alumni who want to
hire other alumni. There’s a natural connection. It’s an easy
sorting mechanism at the start.”
Alumni also can help humanize the hiring process. “In-
dividual students talk to alumni to get information about
certain careers and companies,” Hewitt says. “They often
develop a relationship.” With such a relationship in place,
“You have someone who knows you and can pick you out of
that pile (of resumes). You become more of a person, less of
a piece of paper.”
The best part of tapping into an alumni network, according
to Pat deMasters, of the University of California Berkeley’s
Haas School of business, is “no more cold calls.” She
says when a student or recent graduate reaches out to an
alumnus, “You automatically have something in common, so J
they’re therefore more willing to help you.”
C
As at many other schools, Haas alumni are included in
career fairs and student workshops on interviewing, resume A
writing and other job-search techniques. Online resources h
offer a treasure trove of career-research opportunities.
W
The bottom line: Don’t overlook your alumni network. There’s C
just one caveat: don’t take alumni help for granted. “Be
W
thankful for your alumni. Treat them well,” says Mokover.
c
v
Careers in Financial Markets 2007-08
 Now There’s a Better Way to Disagree
Join the Debate
on eFinancialCareers.com

Anonymous, Thu Aug 23 2007

As a woman mutual fund manager...with a stint in investment bank-
ing...have found being a woman is not a help. I agree with the obser-
vations in "Women in Hedge Funds" and have a few of my own to
add. I have to work many times harder for the respect that men are
instantly given. My focus and fundamental analysis is oft times up
JOIN THE DEBATE against someone slinging total bull$@%& without any of the due dili-
gence. And, to be totally successful I need for men to acknowledge
Comment: Why aren't there more women in hedge funds? that my market strategy and investment calls are good. A man
acknowleding a woman is right...sounds simple...but is truly a wall of
ego and years of good-old-boy attitudes to overcome. Also, have con-
An (anonymous female) contributor explains why there aren’t more women in tinually found (and which is backed up by annual compensation stud-
hedge funds. ies by the CFA Institute)that compensation is lacking versus my male
counterparts. I, too, don't want to be seen as a "woman"
Winners and Losers in the How Team Sports Advance anything...just acknowledged and compensated for my talent. Some
partial consolation is that in my area, performance numbers for the
Credit Meltdown Street Careers mutual fund are objective.
Join the Debate »
Who’ll benefit and who won’t from the So, you doubt the old saw that partici-
chaos in the markets? Here’s our pating in team sports is good for your Anonymous, Consulting, Thu Aug 23 2007
Unfortunately, I agree with your assessment of the situation. Cultural
verdict. career? biases could very well be at work and the investors may not even be

Jump in today: www.efinancialcareers.com/debate

 For Diversity, Banks Chase the Same Talent
Opportunities abound for qualified candidates
In recent years, the financial industry has put great effort
into hiring and retaining minorities at all levels. While
there’s no question many firms have made real progress,
entrenched corporate cultures and economic realities have
sometimes halted that evolution.
Few doubt the industry’s direction will change, but at the
same time few believe complete solutions will be achieved
easily or quickly. Meanwhile, minority candidates are present-
ed with an exceptional opportunity: Because fewer women,
blacks and Hispanics are applying to business schools, finan-
cial companies are engaged in a fierce war for talent.
Executives are quick to throw water on the notion that
diversity equals entitlement or lower standards. “It’s impor-
tant to remember that diversity and meritocracy are one and
the same,” says Lance LaVergne, vice president of Human
Capital Management at Goldman Sachs and manager of the
firm’s U.S. diversity recruiting efforts. Observes Elizabeth
78 Wamai, a director at Merrill Lynch and the firm’s diversity
manager for Global Markets and Investment Banking,
unqualified candidates won’t be successful, so there’s real
pressure to make sure each hire is a good hire.
Finding Talent
To find qualified candidates, the industry is searching both
broad and deep. Companies are reaching out to students as
early as junior high with internships and communications
programs. They’re also working with not-for-profit groups
like Management Leadership for Tomorrow and Sponsors
for Educational Opportunity to reach young prospects, and
seeking candidates from academic areas outside of busi-
ness school, such as accounting and law.
Several firms offer fellowships and internships to promising
candidates who want to attend business school but need
help shouldering the financial burden. In addition to net-
working, they’re advertising more in minority media outlets,
pushing recruiters to find more candidates, sending more
staffers to job fairs sponsored by minority organizations,
and leveraging their own employee networks.
Trends
Walk onto an “average” trading floor of 100 people at a
Wall Street investment bank and you’ll see a lot of white
faces. Seventy-nine of them, in fact. That’s assuming the
staff’s diversity matches the workforce described in the
2005 Report on Diversity Strategy, Development and Demo-
graphics, published by what is now the Securities Industry
and Financial Markets Association. Scattered through the
ranks would be nine Asians, six African-Americans and
five Hispanics. Fifty-six of the traders would be men - 46 of
them white. Of the 44 women, 11 would be of color.
Since the previous report in 2003, the proprietors of this
trading floor have hired two Asians, one African-American
and seven women. This is what many people refer to as
“incremental growth.” However, some observers say it may
be also a sign the industry is hiring serious people. While
on first read a three-percentage-point rise in a diverse work-
force - from 18 percent total in 2003 to 21 percent in 2005
- may not seem like much, says one, “if it was 10 percent,
you’d hear cries of ‘affirmative action’ and ‘they’re just hir-
ing minorities.’ These numbers could mean real progress.”
Today, LaVergne says, the focus of many diversity efforts
is on gender, mainly because women are both a larger
demographic and more evolved politically and organization-
ally than blacks and Hispanics. “There are more women in
the organization than any other minority group. They have
critical mass,” he observes. However, he points out blacks
are developing that same kind of momentum, and Hispanics
are making rapid gains.
Getting Beneath the Surface
How can candidates be sure that what they’re experiencing
during recruitment reflects the true company culture? “First,
do your research,” says Merrill’s Wamai. When visiting a
firm, be aware of the people you’re meeting with and how
they compare to the rest of the office. Interviewing with
three black professionals who appear to be the only ones in
the building is probably not a good sign, she notes. Wamai
suggests asking questions and listening for consistent
answers, and meeting as many people within the company
as you can, even if they’re not in your core area of interest.
Tanya Hinton, president and chief executive officer of Di-
versified Search Services of Chicago, suggests researching
the company’s retention rate among minorities and women.
You want to find out “not just do they have diversity hires,
but do they retain minorities as well?” she says. Taking ad-
vantage of professional and minority networks to talk with
people in the company is another way to learn whether its
culture truly embraces diversity, she suggests. “You really
have to get in there to see how it’s all working in practice.”
Careers in Financial Markets 2007-08

Going Global: International Career Options for Graduates
Expanding your horizons - and your options
Once upon a time, wise American graduates focused their
efforts on landing jobs in U.S. financial firms. Taking a posi-
tion at any other kind of outfit was seen as second-best,
and chances were dicey you could make the jump back into
a U.S. bank.
Today, that’s changing. Among the firms doing the hiring on
Wall Street are some ambitious international players like
Deutsche Bank, UBS, HSBC, Credit Suisse, BNP Paribas and
Barclays Capital. Do they have what it takes to retain new
staff against their home-grown rivals? And how do their
cultures compare to those of U.S. investment banks?
“Genuinely international career opportunities” is the refrain
of Keith Yardley, who heads U.S. campus recruiting and tal-
ent management for HSBC Securities in Manhattan. “Most
of the people who come to work for us are attracted by our
ability to move them internationally,” he says.
International Postings Burnish a
Resume
The attraction for graduates is obvious: the chance to
brighten a resume with experience in the world’s fastest-
growing markets, right from day one. “The international
arena in this industry is where a lot of the action is,”
observes Tom Tilghman, senior consultant in the global
consulting group of Towers Perrin in New York. These days,
becoming a senior executive at a large financial firm is all
but impossible without some sort of international experi-
ence or expertise.
The emphasis on international work is rooted in a simple
economic reality: In the world’s capital markets, the U.S. long
ago ceased being the only game in town. Wall Street has
been losing stock-exchange listings to London and China. As
of June 2007, the U.S. accounted for just 43 percent of world
equity market capitalization, according to the S&P/Citigroup
Global Equity Indices. That’s down from 57 percent at the
end of 2001 and 53 percent at the end of 2003.
If Japan was the place to be in finance during the 1980s,
and Eastern Europe was the place of the 1990s, today it’s
all about China.
The luster that Asia adds to a resume is so great that many
Americans and Europeans have chosen to “commute” to
Hong Kong or Singapore for MBA studies. Even leading U.S.
business schools are jumping on the bandwagon. The Uni-
Careers in Financial Markets 2007-08
www.efinancialcareers.com
versity of Chicago, Northwestern and UCLA, among others,
are offering MBA programs in Asia, usually in partnership
with Asian universities like Hong Kong’s University of Sci-
ence and Technology. The programs draw up to half their stu-
dents from people who live and work in the U.S. or Europe.
Pros and Cons of Globe-trotting
Rightly or wrongly, “foreign” banks are perceived as having
a more distinct and welcoming culture than many U.S.
organizations. Gary Goldstein, chief executive of Whitney
Group, an executive search firm for the financial industry,
says, “Many of the great American banking cultures have
been pretty much destroyed. It’s one of the faux-pas of
the past few decades. Banking used to be a very clubby
industry, where people identified with the firm they work
for. Not any more.”
Recruiters who bemoan the loss of Wall Street cultures
tend to sing a similar tune: Mergers change corporate
culture for the worse, and sometimes dull a bank’s business 79
edge. European banks seem to have largely escaped this
stigma, and global players such as HSBC and UBS have
managed to maintain their corporate identities.
Graduates can find themselves in places like Paris, Am-
sterdam, London or Shanghai while they learn the ropes.
But there may be a price of admission to such locales.
New employees are often required to take examinations to
comply with local regulatory demands, and some require a
great deal of study.
Culture Shock?
Then there’s language. Although international banking
is still largely conducted in English, fluency in the local
language is a major advantage when applying for positions
overseas, even at entry level. So if you grew up hearing Chi-
nese or Russian spoken at home, you’ll have a head start in
this race. Next best is to have studied a language at school.
For some people who’ve never encountered life beyond
America’s borders, new cultures can pose a challenge. At-
titudes toward work, strange customs and those linguistic
difficulties can perplex the new kid on the block, and it
takes a degree of flexibility and patience to learn your way
around, both geographically and culturally.
 Employer Essentials
A snapshot of institutions operating within the financial markets

Company Address Telephone Graduate Website

ABN Amro 55 East 52nd Street, New York, NY 10055 212 409 1000 www.graduate.abnamro.com

Banc of America Securities 9 West 57th Street, New York, NY 10019 800 432 1000 www.bofa.com/careers

Barclays Capital 200 Park Avenue, New York, NY 10166 212 412 4000 www.barcap.com/campusrecruitment/

Barclays Global Investors 45 Fremont, San Francisco CA 94105 415 597 2000 www.bgigraduatecareers.com

Bear Stearns 383 Madison Ave. New York, NY 10179 212 272 2000 www.bearstearns.com/careers

Bloomberg, Inc. 731 Lexington Avenue, New York, NY 10022 212 318 2000 careers.bloomberg.com

BNP Paribas 787 7th Avenue, New York, NY 10019 212-841-2000 careers.bnpparibas.com

www.cibcwm.com/wm/careers/
CIBC World Markets 425 Lexington Avenue, New York, NY 10017 212 856 4000
campus-recruitment.html

Citigroup 399 Park Avenue, New York, NY 10043 800 285 3000 www.oncampus.citigroup.com

Credit Suisse 11 Madison Avenue, New York, NY 10010 212 325 2000 campusrecruiting.credit-suisse.com
80
Deutsche Bank 60 Wall Street, New York, NY 10019 212 250 2500 www.db.com/careers

www.franklintempleton.com/retail/
Franklin Templeton Investments 100 Fountain Pkwy., St. Petersburg, FL 33716
jsp_cm/careers/careers_main.jsp

Goldman Sachs 85 Broad Street, New York, NY 10004 212 902 1000 www2.goldmansachs.com/careers/

HSBC 452 5th Avenue, New York, NY 10018 212 525 3735 www.hsbcusa.com/careers

JPMorgan 270 Park Avenue, New Yor, 10017 212 270 6000 careers.jpmorgan.com

KeyBanc Capital Markets 127 Public Square, Cleveland, OH 4411 800 KEY2YOU www.key.com/html/A-3.html

Lehman Brothers 745 7th Avenue, New York, NY 10019 212 526 7000 www.lehman.com/careers

Lincoln International 500 West Madison, Suite 3900, Chicago, IL 60661 312 580 8339 www.lincolninternational.com

www.macquarie.com/us/aboutus/careers/
Macquarie Group 125 West 55th Street, New York, NY 10019 212 231 1000
graduate_undergraduateUS.htm

Merrill Lynch 250 Vesey Street, New York, NY 10080 212-449-1000 ml.com/careers

Morgan Stanley 1585 Broadway, New York, NY 10036 212 761 4000 www.morganstanley.com/about/careers/recruiting

Piper Jaffray 800 Nicollet Mall, Minneapolis, MN 55402 612 303 6000 www.piperjaffray.com/careers

RBC Capital Markets Corp. One Liberty Plaza, New York, NY 10006 212 858-7000 www.rbccm.com/0,,cid-15927_,00.html

Société Générale 1221 Avenue of the Americas, New York, NY 10020 212-278-6000 careers.us.socgen.com

UBS 677 Washington Blvd., Stamford, CT 06901 203 719 3000 www.ubs.com/1/e/career_candidates

Careers in Financial Markets 2007-08


Company Address: 2 Bethesda Metro Center, 14th
floor, Bethesda, MD 20814
Graduate Website: www.AmericanCapital.com/
careers
Company Snapshot: American Capital is the only
alternative asset management company that is a
member of the S&P 500. With $16 billion in assets
under management, American Capital is the largest
U.S. publicly traded private equity firm and one of the
largest publicly traded alternative asset managers.
American Capital, both directly and through its
global asset management business, is an investor in
management and employee buyouts, private equity
buyouts, and early stage and mature private and pub-
lic companies. American Capital provides senior debt,
mezzanine debt and equity to fund growth, acquisi-
tions, recapitalizations and securitizations. American
Capital and its affiliates invest from $5 million to
$800 million per company in North America and 5
million to 500 million per company in Europe.
Headcount: Over 700
Graduates Hires (MBA level) per annum: 25
Undergrad Hires per annum: 15
Approximate Graduate/Undergrad hires 2007: 32
Graduates recruited into: All departments, offices,
and at various career levels.
Training offered: ACAS offers the opportunity to
build skills through unique assignments, on-the-job
experiences and specialized training programs;
including Harvard’s Negotiation Skills course custom-
ized for ACAS. We are committed to the development
of all employees and continue to invest in leader-
edge programs to grow our talent.
Internship Info: Summer associates and interns are
routinely hired.
Skills required: We are constantly seeking creative
and intelligent candidates with various educational
and professional experience.
Application deadline: You may submit your resume
to our website at any time.
Careers in Financial Markets 2007-08
Company Address: 45 Fremont, San Francisco,
CA 94105
Graduate Website: www.bgigraduatecareers.com
Company Snapshot: Barclays Global Investors (BGI)
is one of the world’s largest asset managers and a
leading global provider of investment management
products and services. From inventing the world’s first
index fund in 1971 and the first quantitative active
strategy in 1978, we have pioneered change and led
investment innovation. Today we manage more than
$1.86 trillion (£950 billion) worth of assets, for over
2,900 clients throughout the world. We’ve developed
a unique approach to equity and fixed income asset
management, combining quantitative scientific
analysis with human ingenuity to become creators
and inventors in our field.
GRADUATE PROGRAMME INFO
Approx. grad hires in 2007/8: 65
Divisions offering vacancies: Active Equities,
Indexed Equities, Fixed Income (Active/Indexed),
Business Development, Technology
Typical duration of grad programme: 18 months
Application deadline: 14th October 2007.
INTERNSHIP PROGRAMME INFO
Approx. no. of intern hires 2007/8: 40
Divisions offering vacancies: Active Equities,
Indexed Equities, Fixed Income (Active/Indexed),
Business Development, Technology
Typical duration of internship programme: 12
weeks
Application deadline: January 2008. Please see
website.
www.efinancialcareers.com
Company Address: 731 Lexington Avenue
New York, NY 10022
Telephone: 212-617-2000
Graduate Website: careers.bloomberg.com
Company Snapshot: At Bloomberg, each of our
8,000 employees embodies the excellence and intel-
lectual curiosity that we are known for. We demand
much of our people; they are treated with the respect
that they have earned by building us into a world
leader in our industry. We give them every advan-
tage in their careers, with top-flight education and
windows for advancement. All this means that we
create an environment in which you have unparal-
leled opportunity to excel.
We have many arenas in which you can shine. You
can work for our core business, the Bloomberg
Professional® service, or join the teams of any of
our media products, from our television and radio
networks to our magazines and books. We have a
reputation for excellence worldwide, and our employ-
ees are the key to maintaining our reputation.
Take a look at who we are. The challenges. The
rewards. The opportunity. We know you’ll like what
you see.
Headcount: 8,000 employees
Training Offered: At Bloomberg we offer our
employees a wide range of training and career devel- 81
opment opportunities. Our internal repository, Bloom-
berg University, is a place where employees can go to
search for instructor-led training, self-study courses
and other special training events. Regardless of your
job function, we’re devoted to helping you develop
your career. Whether you’re interested in sharpening
your technical skills or learning how to contribute
more effectively, BU has something for you. We offer
skill-building courses in employee development and
job-specific courses in financial markets, sales, news,
PC/technical training and our products. Bloomberg is
truly a company that believes leaders can be made.
If managing people is your passion, our Leadership
Development track is structured so that employees in
any stage of their supervisory career can benefit. We
have three levels of courses that will enhance your
skills and build a strong awareness of what it takes
to be a mentor, coach and leader at Bloomberg.
 Company Address: 388 Greenwich Street,
New York, NY 10013
Graduate/Undergraduate Website:
www.citigroupcib.com/careers
www.oncampus.citigroup.com
Company Snapshot: Citi is the most complete
financial partner to individuals, corporations, financial
institutions, institutional investors and governments
in the world. Citi’s Markets & Banking division, is
a global leader in banking, capital markets, and trans-
action services, with a presence in many countries
dating back more than 100 years. Citi enables clients
to achieve their strategic financial objectives by
providing them with cutting-edge ideas, best-in-class
products and solutions, and unparalleled access to
capital and liquidity.
Financial Report: You can find links to our Annual
Report and Investor Relations by visiting www.
citigroupcib.com/media/
Headcount: There are approximately 55,000 employ-
ees in Markets & Banking globally.
Approximate Graduate/Undergrad hires 2007:
705 Analysts and 272 Associates globally
Graduates recruited into: We recruit for ap-
proximately 13 Analyst programs and 8 Associate
programs globally, offering a wide range of oppor-
tunity. These programs fall into one of the following
business units of Markets & Banking: Global Banking,
82
Global Capital Markets, Global Transaction Services,
Finance, Operations and Technology.
Training offered: Most of our programs offer a
comprehensive training program including orienta-
tions and classroom training.
Internship Info: Summer Internships are available
for most of our programs. These programs are for
candidates in their Junior year and are designed to
give you a 10-12 week experience preparing you for a
full time opportunity. We also have summer opportu-
nities for candidates in their sophomore year which is
our Sophomore Rotational Program. To find out more
please visit our website oncampus.citi.com
Skills required: Each of our programs is unique and
requires different skills sets. In general we look for
highly motivated candidates with a strong work ethic,
high energy level, superior academic performance,
personal integrity, commitment to excellence, strong
communication, interpersonal, and solid quantita-
tive skills. We encourage candidates to apply to our
programs from a diverse range of academic back-
grounds, it is not necessary to major in a traditional
finance program.
Application deadline: Apply online at oncampus.
citi.com The general time to apply for full time posi-
tions is Sept/Oct and Jan/Feb for summer positions.
We advise candidates to consult with their career
management offices on campus for deadlines specific
to their school.”
Company Address: 60 Wall Street,
New York, NY 10005
Graduate/Undergraduate Website:
www.db.com/careers
Company Snapshot: Deutsche Bank is a leading
global investment bank with a strong and profitable
private clients franchise. A leader in Germany and
Europe, the bank is continuously growing in North
America, Asia and key emerging markets. With 73,114
employees in 73 countries, Deutsche Bank offers
unparalleled financial services throughout the world.
The bank competes to be the leading global provider
of financial solutions for demanding clients creating
exceptional value for its shareholders and people.
Financial Report: Please revert to the most recent
Investor Relations Fact Sheet located at http://www.
deutsche-bank.de/ir/en/
Headcount: 73,000
Graduates Hires (MBA level) per annum: 300
Undergrad Hires per annum: Approx.600
Approximate Graduate/Undergrad hires 2007:
1000 globally
Graduates recruited into: Graduate trainees are
recruited across all areas of the bank; ranging from
Technology to Human Resources to Global Markets
trading.
Training offered: Programs vary in length and
format and, while some involve rotations through
different areas to develop broad based knowledge,
others develop specialist skills from day one. The
programs can vary from two weeks to twelve weeks
in length and are designed to provide trainees with
a challenging and deep learning experience while
preparing each for a successful career.
Internship Info: Internships exist across most
divisions globally. They are a perfect introduction to
both a career with Deutsche Bank and the financial
services industry, allowing you the opportunity to
explore potential career paths before completing
your academic studies. Programs run from between
9 and 10 weeks. Interns work alongside industry
professionals, developing essential skills while being
paid competitively. Completing an internship is highly
encouraged. As well as honing essential skills and
obtaining valuable experience, internships also help
students develop relationships that are helpful in de-
termining the proper path for them after graduation.
Application deadline: All global candidates apply
via the online form which, depending upon the region
and program you are applying to, may take approxi-
mately 15 -40 minutes to complete. Please revert to
the website for detailed information by program and
region as dates may vary but generally applications
open in September for the full time programs that
commence the following Spring and for internship
opportunities the following Summer.
Company Address: 127 Public Square,
Cleveland, OH 44114
Graduate Website: www.key.com/jobs
Company Snapshot: KeyCorp is one of the nation’s
largest financial services companies, with assets of
approximately $93 billion. The Cleveland-based com-
pany provides retail and wholesale banking, invest-
ment, financing and money management services to
individuals and companies across the U.S. KeyCorp is
the largest domestic fully integrated commercial and
investment bank focused on middle market clients,
KeyBanc Capital Markets (KBCM) is the institutional
banking division of Key.
Financial Report: Please visit Key’s website for
up-to-date details. www.key.com
Headcount: Key employs 19,500+ employees across
the US with businesses in 45 different states
Graduates Hires (MBA level) per annum: Approx
10-15
Undergrad Hires per annum: Approx 50-75
Approximate Graduate/Undergrad hires 2007:
Approx 60-90
Graduates recruited into: Associate Program in
Investment Banking is highly focused on building
advanced skills in finance.
Training offered: This program requires new Associ-
ates to receive uninterrupted training for 8 weeks.
Program includes classroom lectures, case studies
and hands on group exercises. Industry Segment
heads lead presentations on lines of business and
product support groups. Each Associate is given
individual time to meet with Managing Directors to
gain an understanding of business segments. Outside
vendors, such as Train the Street, will teach on finan-
cial modeling and valuation techniques. Additional
training includes business writing and presentation
skills.
Internship Info: 5-10 internships offered for the
Associate Program per year (MBA level)
Skills required: Candidate will have an MBA or
law degree with 2-3+ years of investment banking,
corporate banking or other relevant experience; and
possess solid experience in financial valuation and
modeling. Has excellent interpersonal skills, strong
written and verbal communication skills. Attention
to detail, quick turnaround while demonstrating the
ability to listen, follow directions, and identify the
needs of others.
Application deadline: 11/1/07
Careers in Financial Markets 2007-08

Company Address: 4 World Financial Center, 250
Vesey Street, New York, NY 10080
Graduate Website: ml.com/careers/campus
Company Snapshot: Merrill Lynch is one of the
world’s leading wealth management, capital markets
and advisory companies, with offices on six conti-
nents. We are a leading global trade and underwriter
of securities and derivatives across a broad range of
s asset classes and serve as a strategic advisor to cor-
porations, governments, institutions and individuals
worldwide. Merrill Lynch owns approximately half of
BlackRock, one of the world’s largest publicly traded
investment management companies.
Financial Report: Financial Information, includ-
ing second quarter 2007 earnings, can be found at
http://ir.ml.com
Headcount: As of June 29, 2007, Merrill Lynch has
61,900 employees globally.
Graduates Hires (MBA level) per annum: Glob-
ally, we recruit approximately 150 - 200 associates at
the MBA or post-graduate level.
Undergrad Hires per annum: Globally, we recruit
approximately 700 - 750 analyst at the college or
university level.
Graduates recruited into: Merrill Lynch hires
analysts in the following groups: Global Markets &
- Investment Banking, Global Private Client, Global
Research, Global Infrastructure Solutions (including
Technology and Operations), Chief Financial Office,
Human Resources, and Compliance. We hire associ-
ates in: Global Markets & Investment Banking, Global
Private Client and Global Research.
e Training offered: Each business offers entry-level
training prior to the start of an assignment and on-
the-job training throughout an employee’s career.
Internship Info: Merrill Lynch offers summer analyst
and associate opportunities in most of the business
groups listed above. The work is challenging and
the feedback that summer analysts and associates
receive is constructive and educational. Generally
a 10-week program, the summer program includes
business specific learning opportunities and firmwide
events such as a Senior Speaker Series highlighting
presentations by top executives.
Skills required: Required skills vary by business,
but overall Merrill Lynch is interested in candidates
with exceptional quantitative abilities, teamwork
skills, communication skills, along with creativity and
initiative.
Application deadline: Interested students should
apply online at ml.com/careers/campus in the Fall
semester as well as checking with their college
or university careers services office for applicable
deadlines and events.
Careers in Financial Markets 2007-08
Company Address: 840 Newport Center Drive,
Newport Beach, CA 92648
Graduate Website: www.pimco.com
Company Snapshot: Pacific Investment Manage-
ment Company (“PIMCO” http://www.pimco.com) is
one of the world’s largest investment management
firms, managing $700 billion in fixed-income assets
for governments, institutions and individual investors.
PIMCO is a highly respected name in fixed income
management, due in large part to its total return ap-
proach and impressive long-term performance record.
The firm counts among its prestigious clients many of
the largest U.S. Pension funds, Insurance Companies,
and Foundations & Endowments. PIMCO has exper-
tise and significant resources committed to virtually
every sector, including commodities, realestate and
equities. The Company’s headquarters are located in
Newport Beach, California, and the firm has offices in
New York, Toronto, London, Munich, Sydney, Tokyo,
Singapore and Hong Kong.
Headcount: 900
Graduates Hires (MBA level) per annum: 30
Undergrad Hires per annum: 15
Approximate Graduate/Undergrad hires 2007: 25
Graduates recruited into: Account Management,
Product Management, Business Management and
Portfolio Management.
Training offered: We offer a 12 week training
program for all full-time hires.
Internship Info: Our intern program is 10 weeks
long and starts with one week of training in Newport
Beach, CA.
Skills required: Candidate must be working on an
M.B.A. degree with an emphasis in Finance and Eco-
nomics or a related, quantitative/analytical field from
an accredited, leading business school or university,
or other equivalent Advanced Degree as it relates to
the position is required. Preference will be given to
candidates whose field of study provides exposure
to finance/capital markets, and macroeconomics, or
whose business experience and knowledge is aligned
with the requirements of the position in one or more
areas described immediately above. A Chartered
Financial Analyst (CFA) designation is required, so
candidates must be willing to pursue CFA designation
immediately after joining PIMCO. Typically this
position requires a Series 7, 63, 3, and other ap-
plicable licenses.
The ideal candidate will possess expertise in macro-
economics, business cycle analysis, and fixed income
markets attained through coursework, individual
study and prior work experience. Preference will be
given to candidates with extensive experience work-
ing with executive-level management. “
www.efinancialcareers.com
Company Address: 1221 Avenue of the Americas
Graduate Website: www.sgamericas.com,
www.sgcib.com
Company Snapshot: A leading financial services
group, Société Générale employs more than 120,000
people worldwide in three businesses: Retail Banking
& Financial Services, Global Investment Management
and Services, and Corporate & Investment Banking
(CIB). The US workforce with over 3,000 employees
—1,600 of which work in the CIB division—is one of
Société Générale’s biggest operations.
The firm has demonstrated expertise in SG CIB’s core
product areas of Capital Markets, Derivatives and
Structured Finance
Approximate Graduate/Undergrad hires 2007:
Approximately 20 Analysts and 5 Associates into the
New York Analyst and Associate programs
Graduates recruited into: Société Générale
Corporate and Investment Bank recruits Analysts
and Associates into all areas of our business. Our
employees provide attractive and innovative financial
products to clients.
Training offered: Analysts in Corporate Finance,
Investment Banking and Origination roles attend
Société Générale’s Training Program, which begins
in July. The five week intensive classroom train- 83
ing starts with an introduction to the firm and its
capabilities and the curriculum includes instruction
on advanced accounting, financial modeling, credit
analysis, valuation, mergers & acquisitions, corporate
finance and marketing, spreadsheet building,
company analysis, and financial markets, as well as
product and corporate finance group presentations.
The program is designed to develop solid financial
analysis skills and provide an overview of Société
Générale’s business. Associates in Sales/Trading/
Financial Engineering roles gain valuable on the
job training by working closely with successful and
experienced Traders, Salespersons and Financial
Engineers.
Skills required: Société Générale seeks under-
graduate and select graduate students with strong
academic performance, exceptional interpersonal
skills, and superior analytical and quantitative ability.
The Firm values individuals who can interact with all
levels of the organization and possess negotiation,
problem-solving and decision-making skills. Initia-
tive, integrity and creativity distinguish successful
candidates. Individuals must also possess Société
Générale’s values of innovation, professionalism and
team spirit.
Application deadline: Interested students should
submit resumes to us-humn-campusrecruitment@
sgcib.com
 Resources
News you should use

Information moves the markets - whether it’s stock, bond or
futures quotes, breaking news driving commodities trading,
the release of a company’s annual report or turnover among
its executives or staff.
To succeed on Wall Street, you have to keep up. Among
other things, that means staying up-to-date on develop-
ments in business, politics, economics and the world in
general. That’s no small task in today’s media-crazed world,
especially if you want to focus your career in specialized
areas like hedge funds or risk management.
This list is meant as a starting point, a collection of infor-
mation resources you can use to keep abreast of what’s
going on in business and general news around the world.
In addition to these, each market sector offers a variety of
trade publications that focus on narrow areas of expertise.
Don’t forget to read the information presented by compa-
nies themselves in their 10-Ks, 10-Qs, annual reports and
press releases, which you can almost always find on their
corporate Web sites.

General and Business News Sector News

Bloomberg (www.bloomberg.com) BondsOnline www.bondsonline.com

BusinessWeek (www.businessweek.com) Compliance Week www.compliancenews.com

CNBC TV (www.cnbc.com) Corporate Financing Week www.corporatefinancingweek.com

CNN (www.cnn.com) The Deal www.thedeal.com

The Economist (www.economist.com) Default Risk www.defaultrisk.com

Financial News (www.financialnews-us.com) Finance Asia www.financeasia.com

84
The Financial Times (www.ft.com) Fund Action www.fundaction.com

Forbes (www.forbes.com) GloriaMundi www.gloriamundi.com

Fortune (www.fortune.com) HedgeWorld www.hedgeworld.com

MSNBC (www.msnbc.com) Inside Market Data www.insidemarketdata.com

The New York Times (www.nytimes.com) On Wall Street www.onwallstreet.com

Reuters (www.reuters.com) Risk Magazine www.risk.net

USNews and World Report (www.usnews.com) Securitization News www.securitizationnews.com

The Wall Street Journal (www.wsj.com) Trader Daily www.traderdaily.com

Washington Post (www.washingtonpost.com) Wall Street & Technology www.wallstreetandtech.com

Waters www.watersonline

Careers in Financial Markets 2007-08

 Q&A
Career Information and Career Development Carol DeNatale, COO, Americas Investment Banking,
Merrill Lynch
eFinancialCareers (www.efinancialcareers.com)
Could you tell us about your career path?
and its Campus Connection (www.efinancialcareers.com/campus)
I graduated in 1988 from Fairfield University, where I was a finance and
Association of Latino Profession-
(www.alpfa.org) economics major. I worked at what was then Chase Manhattan for two
als in Finance and Accounting years as a financial analyst before going to Columbia business school,
CareerJournal, from where I got my MBA in 1992. I joined Merrill Lynch right out of busi-
(www.careerjournal.com)
The Wall Street Journal
ness school, starting in the Corporate Treasury department, where I did
Career Opportunities for capital and strategic planning. I worked very closely with the Financial
(www.cosdonline.org)
Students with Disabilities
Institutions Group in investment banking, which I later joined, and was
Management Leadership promoted to vice president.
(www.ml4t.org)
for Tomorrow
Through relationships I developed in the Treasury department, I was
National Black MBA Association (www.nbmbaa.org)
approached when an opportunity opened up for a business manager
Sponsors for Educational position in Investment Banking. I moved into a business management
(www.seo-usa.org)
Opportunity
role in 2000 and assumed my current role two years ago.
Women on Wall Street (wows.db.com)
Talk about the power of networking, even if you stay at one
organization.
General Financial and Investing News
Opportunities presented themselves to me very much as a result of
Barron’s www.barrons.com relationships I developed in my time here. For me, networking has been
Dealbreaker www.dealbreaker.com
more informal in the way I keep in touch with people or maintain rela-
tionships. But I’m also very open with people and have never been shy 85
FierceFinance www.fiercefinance.com in asking for new responsibilities or opportunities. You have to be open
to meeting people and getting to know who has access to information.
Institutional Investor www.ii.com
What do you do every day?
Investor’s Business Daily www.ibd.com
My job really is a very diverse role. I help make sure we’re managing
InvestmentNews www.investmentnews.com our business consistently with our objectives. I think of my job as if
I’m running a small business within a large organization, as I handle
MarketWatch www.marketwatch.com everything from how to approach the market, to human resource devel-
opment, to finance and compliance issues.
The New York Times’ Dealbook dealbook.blogs.nytimes.com
I usually get in around 8 a.m., and work until 7:30 or 8 p.m. Between 8
SmartMoney www.smartmoney.com a.m. and 6, I spend a lot of time in meetings with bankers, addressing
issues in their respective groups, whether it’s about how to approach a
Others certain client situation or how we allocate resources. In the evenings,
I sit down and analyze data and make sure I understand trends in the
CFA Institute www.cfainstitute.org
business. That said, no two days are alike.
Graduate Management Admission Council www.gmac.com/
What advice would you give someone looking to succeed in
Securities Industry and www.sifma.org your industry?
Financial Markets Association The key is understanding the type of work you like doing, then being
Securities and Exchange Commission www.sec.gov open to opportunities that come your way. It’s important to be honest
with yourself about what it is you like to spend time doing, and re-
searching the positions that might be a good fit. Don’t let someone else
define your career for you. And, of course, it’s important to network.
Careers in Financial Markets 2007-08
 Glossary
Banking terminology the top banks will expect you to know
To search the full glossary online, visit our Campus Connection
Jargon Buster. www.efinancialcareers.com/campus
Back Office
Refers to all the behind-the-scenes processes at an investment
bank, which don’t directly bring in revenues. Most of the work is
largely IT-related or administrative.
Block Trade
A trade that involves a large quantity of stock (e.g., 10,000 shares
or more) or large dollar amount of bonds (e.g., $200,000 or more).
Bonds
Unlike equities, bonds are a kind of debt. Instead of getting a bank
loan, companies sell bonds and promise to pay the money back to
whoever buys them in X years’ time. Until then, they pay the bond-
holder a small amount of money each year. Because the amount of
money paid annually is fixed at the start, bonds are also known as
“fixed income” products.
Bulge Bracket Bank
A nebulous term referring to the biggest and best investment
banks. The U.S. banks Goldman Sachs, Morgan Stanley and Mer-
86 rill Lynch traditionally possess bulge bracket status. More recently,
the term has been extended to gigantic rivals such as Citigroup,
JPMorgan, Deutsche Bank and UBS.
Buy Side
A generic name for organizations that buy financial products (se-
curities) in an attempt to make money out of their changing value.
Fund managers are buy side firms, as are hedge funds.
Clearing and Settlements
The activities that take place behind the scenes after a financial
product has been traded. In the first part (clearing), banks add up
all the trades done with one company, and look at any problems
that arise. In the second part (settlements), the products traded
are delivered in return for payment.
Commodities
Raw materials such as precious metals or grains whose contracts
are bought and sold on commodities exchanges.
Debt Capital Markets (DCM)
Responsible for soliciting, structuring and executing investment
grade debt and related product businesses, including new issues
of both public and private debt.
Derivatives
A derivative is a financial device that is based and priced on
another financial product (e.g. a stock, bond or foreign currency),
or on changes in a financial index or rate (e.g. the Dow Jones
index of the 30 largest U.S. companies, an interest rate, or an
exchange rate). When you buy or sell a derivative you don’t buy
or sell an actual product, but a contract linked to that product.
For example, someone buying a simple stock “option” (a kind of
derivative) acquires the right to purchase a stock in the future at a
pre-ordained price.
Equities
Another word for company stocks or shares. The name comes from
the notion that stockholders share equally in the ownership of the
company (according to how many equities they own).
Equity Capital Markets (ECM)
Undertakes the origination, structuring, marketing and pricing of
public offerings and private placements of equity and equity-re-
lated securities.
Exotic Products
Complex derivatives. Exotic derivatives are typically linked to
several underlying assets or rates. For example, the price of an
exotic derivative may depend on the average price of 20 different
stocks, plus changes in the interest rate, and will only pay out
if the value of these underlying variants reaches a certain level.
Exotic products are cutting edge, as opposed to vanilla products,
which are a lot simpler.
Front Office
The revenue-generating areas of the bank. People in the front
office interact with clients to bring in business and create profits.
Front office employees include salespeople, traders and corporate
financiers. Front office bankers typically earn the most money.
Futures
A kind of derivative product entitling the buyer to purchase a spe-
cific amount of a financial product for a specific price at a set time
in the future. When that point in time arrives, if that price turns
out to be below the actual price of the product, the owner can sell
the product on for a profit.
IPO
Initial Public Offering, meaning the first time a company sells
its shares on the open market. Privately owned companies that
launch on the stock exchange “float” an IPO, for example, as a
way to raise capital.
Careers in Financial Markets 2007-08
 Middle Office
As its name suggests, the middle office is positioned between the
front and back office of a bank. People who work in the middle
office are not strictly revenue generators, nor are they strictly
administrative staff. The middle office is concerned with risk man-
agement and the calculation of profit and loss. People who work
here are, therefore, typically risk managers and accountants.
Origination
As opposed to “execution,” (doing a deal), “origination” is the
word bankers use to describe the process of winning business in
the first place. Origination bankers are senior bankers with strong
client relationships.
Pitchbook
The research books that junior bankers (analysts) typically compile
to help senior M&A bankers win business. They involve a lot of
hard work (and sleepless nights) and include everything from infor-
mation on potential takeover targets to research on the particular
market in which the target firm operates, as well as the sales
pitch the banking team will make to the target company.
Price/Earnings Ratio
The P/E ratio is a popular statistic used to analyze whether the
price of a stock is reasonable. It is calculated by dividing the cur-
rent price of a stock with that company’s earnings per share.
Primary Market
The financial market where investors buy brand new securities
which haven’t been traded anywhere else previously. Shares re-
leased during an IPO are sold on the primary market, for example,
as are newly released bonds, or subsequent issues of new shares
by companies already floating on the stock exchange.
Sarbanes-Oxley
The Sarbanes-Oxley Act came into force in 2002. It followed a
series of corporate scandals and aimed to protect investors from
companies that falsify their accounts. Under Sarbanes-Oxley, cor-
porate executives who deliberately misstate accounts face longer
prison sentences. One of the most significant parts of the Act is
Section 404, which says companies must file reports showing they
have control over their internal processes. This has created plenty
of work for accountants (who oversee the report writing), and
plenty of bureaucracy for banks and other companies that have to
produce a paper trail proving internal controls exist.
Careers in Financial Markets 2007-08
Secondary Markets
The markets in which existing financial products are exchanged
between investors. The New York Stock Exchange and Nasdaq are
secondary markets, for example.
Securities
All financial products that can be bought and sold. These include
shares, bonds, and derivatives.
Securities and Exchange Commission (SEC)
The federal agency that enforces securities laws and sets
standards for disclosure about publicly traded securities, including
mutual funds. It was created in 1934 and consists of five com-
missioners appointed by the U.S. President and confirmed by the
Senate to staggered five-year terms. To ensure its independence,
no more than three members of the commission may be of the
same political party.
Sell Side
Refers to organizations that sell financial products to clients,
including fund managers (buy side). Investment banks are sell side
organizations, for example.
Short Selling 87
The practice of selling stock that you don’t own. This can be
advantageous when you borrow stock, sell it expensively, and then
buy it back cheaply when prices have fallen.
Structuring
The process of assembling complex financial products.
Underwriting
The process by which banks agree to buy any leftover shares in
an IPO or other share issue. Banks charge an underwriting fee to
cover this risk.
Universal Bank
A bank that deals with companies, fund managers and other
professional investors, and that also deals with members of the
public who have bank accounts with it (known as “retail” inves-
tors). Citigroup and JPMorgan Chase are examples.
Vanilla Products
Another word for a simple derivative. The most common are
swaps (exchanging one financial product for another) and options
(which gives purchasers an “option” to buy a stock or bond some-
time in the future at a pre-ordained price).
 Facing a Great Future
SIFMA’s CEO on the opportunities the financial industry offers you
As I contemplate the words to inspire you to pursue a
career in financial services, I’m reminded of a scene from
the 1967 film, The Graduate, staring Dustin Hoffman. The
scene comes during a celebratory, welcome-home party for
the recent graduate, Ben Braddock (played by Hoffman).
Marc E. Lackritz A family friend named Mr. McGuire approaches Ben with
Chief Executive Officer
some words of wisdom to keep in mind as he determines
Securities Industry and
Financial Markets his career path.
Association
Mr. McGuire says: “I just want to say one word to you - just
one word: Plastics.”
Ben: “Exactly how do you mean?”
Mr. McGuire: “There’s a great future in plastics. Think about
it. Will you think about it?”
So now I say to you: There’s a great future in financial
services. Will you think about it?
If you are considering a career in financial services, you’re
not alone. Financial services was the top industry career
choice for MBA students in 2005 and second highest in
2006.
Why so much intrigue in the financial services industry
88
amongst your peers? That’s simple. It can be summed up
with one word: opportunity. There’s tremendous opportunity
awaiting you with a career in the financial services industry.
With the industry experiencing tremendous growth, there
couldn’t be a better time to begin. According to the U.S.
Department of Labor, wage and salary employment in the
financial services industry is projected to rise 16 percent
by 2014, compared to the 14 percent increase expected for
wage and salary employment across all industries.
This dramatic rise in employment over the next decade
stems chiefly from a more investment-savvy public. In 2005
half of all U.S. households (nearly 57 million) owned stock;
nearly three times the amount of viewers that tune in to
American Idol on a given night. With so much investing
activity comes the need for greater investment advice, thus
increasing the amount of work available in the industry.
The effects of globalization are also contributing to the
projected employment surge over the next decade. Once
separated by vast oceans and national boundaries, our capi-
tal markets are more interconnected now than ever before.
With the simple click of a mouse, billions of dollars in capi-
tal become cross-border transactions, changing hands in the
blink of an eye. As a result, the financial services industry
has become a global business with greater investment op-
portunities and enhanced access to markets. As firms adapt
to the global marketplace of the 21st century, they will
increasingly look to tap young talent to fill new roles.
Joining a dynamic industry lush with record growth isn’t the
only opportunity that awaits you with a career in financial
services. In addition to job availability, you can capitalize on
the opportunity to become part of the solution to a growing
problem surrounding Social Security depreciation. With
Social Security solvency expected to drop into the red in
the coming decades, the demand for alternative sources of
retirement income will increase exponentially. So, those
approaching retirement will increasingly turn to alternative
investment mechanisms such as 401(k) programs, IRAs and
mutual funds to sustain themselves after leaving the work-
force. The threat to Social Security is creating an enormous
vacuum for alternative sources of income during retirement.
A career in financial services presents you with a tremen-
dous opportunity to fill this void by providing sources of
retirement income for those approaching retirement.
The obstacle posed by the deterioration of Social Security
is a serious problem, but not one that can’t be solved by
bright-minded leaders of tomorrow joining the industry’s
ranks. While there are a number of ways for you to begin
a career in financial services, ranging from stock broker to
research analyst, I suggest you also give serious consid-
eration to the possibility of working toward becoming a
financial adviser. As it stands now, there is simply not
enough professional talent to go around. Furthermore, there
are simply more business opportunities than the current
roster of financial advisers can handle. Couple that with the
influx of baby boomers looking to increase their portfolio in
the coming years and you find yourself with an exceptional
opportunity to fill a niche ripe with profitability.
Simply put, the financial services industry is continuously
evolving and innovating itself to meet customer demand for
new financial products and services, to compete more ef-
fectively domestically and abroad, and to utilize technologi-
cal advances. With so many opportunities on the horizon,
the industry needs gifted graduates like you to fill in the
gaps. So I ask you again: Will you think about it?
Careers in Financial Markets 2007-08
 limitless potential

[
MERRILL LYNCH
growth and momentum
] To reach for the top.
Lifting you even higher.

inspiring colleagues

Merrill Lynch offers you unparalleled opportunities

to build your career. Our premier brand and global
capabilities create a strong foundation for you to
explore a range of diverse career options. Working
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to our company's business growth and momentum.
It's a great time to join us.

Work alongside industry-leading professionals to

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For more information or to apply online,

visit ml.com/careers

You thrive on success and you know just how far your talent will take you. We do too. That’s
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Merrill Lynch is an equal opportunity employer. Expect the better career. Find out more at

www.db.com/careers

ml.com/careers

151337_CVR 2 8/28/07 1:20:23 PM

 Careers in Financial Markets 2007-2008
Investment banking is a hot career choice –
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