Careers in Financial Markets 2014 (Efinancialcareers)

7/22/2019 Careers in Financial Markets 2014 (Efinancialcareers)

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Th aduat uid to diwok i th acia cto

CAREERSin Financial Markets

2014


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Our employees are central to our project. Which is why we want men and women fromvaried backgrounds who can offer different insights and help us move forward together, along

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Getting In

2 A Truly Global Industry 4 Show Me the Money 6 What It Really Takes to

Get In 8 Positioning Yourself on

Paper10 Graduate Recruiter Q&A

12 The Final Hurdle14 The Rise and Rise ofInternships

Investment Banking

18 Mergers & Acquisitions22 Equity Capital Markets26 Debt Capital Markets28 Sales & Trading30 Research32 Compliance & Risk

Management

34 Operations36 Information Technology

Financial Services

38 Fund Management42 Alternative Investments43 Global Custody44 Interdealer Broking46 Wealth Management48 Corporate Banking50 Data Providers & Rating

Agencies 51 Insurance54 Accounting

Employers

56 Company Proles

Careers in Financial

Markets 2014Welcome to the 2014 edition of Careers inFinancial Marketsfrom eFinancialCareers.If youre looking for a job in the nancial sector,this guide is designed to give you an overviewof the options available and an edge over yourpeers in this ercely competitive industry.

If you believed the headlines, youd think that the investment bankingindustry was struggling to attract good students, but the reality isthat its tougher than ever to get in. Goldman Sachs says it receives

17,000 applications for the 300 places on its summer internshipprogramme, while the Association of Graduate Recruiters reckonsthere are 135 students ghting for every place available in the investmentbanking sector.

We can give you a helping hand. Careers in Financial Marketsbrings you theinside track from those working in all the dierent sectors across theindustry on what it takes to get in and then succeed in your career.

In the rst part of this book, we guide you through the application process everything from sprucing up your resume to making it through thedreaded assessment centres. Banks recruitment teams, careers coachesand those who have made it through the process themselves all oertips on how to excel. We then take a sector focus: rst we examine thecareer options in investment banking, and then we give an insight intocareers elsewhere in the nancial sector, including private equity, fundmanagement and accounting.

All our articles feature insights from senior nancial servicesprofessionals, as well as information on pay and bonuses from juniorlevels through to the senior ranks. We use the US dollar as the defaultcurrency for pay and revenue gures.

Finally, dont use this guide in isolation visit the Students tab onwww.enancialcareers.com to receive regularly updated news and adviceon the graduate recruitment market to stay ahead of the competition.

Pau CakEditor

Careers in Financial Markets2014 is published byeFinancialCareers Ltdwww.enancialcareers.com

Publishing &Project Manager

Janice Chalmers

EditorPaul Clarke

DesignBergHind Joseph

ArtworkJake Johnstone

ContributorsNicol Degli InnocentiRyan HarrisonFrances Perraudin

Sub-editorAnnabella Gabb

eFinancialCareers Ltd

No part of this publicationmay be reproduced without

permission.

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www.efnancialcareers.com/students | Careers in Financial Markets2014 1

GETTINGIN

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top tennancial centres

1. London 6. Tokyo

2. New York 7. Geneva

3. Hong Kong 8. Boston

4. Singapore 9. Seoul

5. Zurich 10. Frankfurt

Source:Z/Yen Global Financial Centres Index 13(March 2013)

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Europe, Middle East & AfricaLondon may have been rocked by a

combination of job cuts and scandalshitting the banking sector, but it remainsthe worlds top nancial centre.

It has the largest slice of some of thebiggest markets in the world 37% ofthe $4 trillion traded daily on the foreignexchange markets go through London,while 46% of turnover in the $1.2 trillionOTC derivatives market is traded in theCity. Investment banks have sueredin their bread-and-butter M&A marketthough deal volumes are less than halfof pre-crisis levels, at $145.7bn in 2012.

On the Continent, France is the largestfund management centre, with $3.7

trillion in assets under management(AUM) and 83,000 people employed bythe sector. Germany rules the roost indebt capital markets (DCM), with $461.5bnworth of deals completed in 2012.

It also has a sizeable fund managementindustry, with $2.6 trillion in AUM,and employs over 300,000 peoplein insurance.

Switzerland remains a magnet for wealthmanagement, with over $5.4 trillion inAUM, 51% from foreign investors. Thecountry is also number one in Europe fortrading various physical commodities,and is a centre for fund management

and reinsurance. Both Ireland andLuxembourg are renowned for globalcustody, administering assets of $2.9trillion and $3.3 trillion respectively.

The Middle East is home to hugesovereign wealth funds, which togetherhave over $1.9 trillion in investable assets

and are large employers of internationalnancial services talent. They have

helped attract international nancialservices rms to the region, but the$4.8 trillion in investable personalwealth has also meant internationalprivate banks are v ying for businessin the Middle East.

United States & CanadaWith several economies in disrepair inEurope and Asia, North America may beyour best bet when it comes to ndingwork in nancial services, particularlyfor higher paying roles. US investmentbanking revenues are expected to rise byas much as 15% year-over-year in 2013,while European and Asian banks aregetting cut at the knees. Its the same

story in private equity. Twice as muchmoney was spent on buyouts in the USin the rst half of 2013 compared with ayear ago.

While New York City remains the capitalof the nancial services world in NorthAmerica, the shrinking of Wall Street haschanged the hiring landscape in the BigApple to some degree. New York hoststhe greatest number of nancial servicesjobs, but employment in the sector hasfallen by 7.4% since 2007. Still, if youwant to work for one of the big boys,New York City is where you shouldbe looking.

When it comes to trading, particularlyin the derivatives and futures markets,Chicago calls itself king. The ChicagoMercantile Exchange (CME) and theChicago Board of Trade are two of thebiggest alternative trading oors inthe world.

Boston, meanwhile, is best known for itsfund management business, with severalrms controlling much of the wealth inthe Massachusetts area. Then theres SanFrancisco. Known for its unparallelledventure capital industry, the City by theBay is the most viable nancial capitalwest of the Mississippi. Successfulbrokerage rms are also scattered

across San Fran.The majority of nancial services jobs inCanada are in Toronto, but you can ndwork throughout the countrys biggestcities. Business units like risk, lendingand various back-oce positions areparticularly healthy up north.

Asia-PacicAsia has been synonymous with growth

in recent years, but it has some long-established nancial hubs in the top ten Singapore, Hong Kong, Tokyo and Seoul.

While expansion may have stalled in thepast two years, one thing remains on anupward trajectory wealth. There arenow 3.37 million people with over $1m toinvest in the region, and $10 trillion inassets. Not surprisingly, both Singaporeand Hong Kong are magnets for privatebanks, and talent remains at a premium.

Singapore has also traditionally beena low-cost destination for banksoperations and IT functions but morerecently cheaper options in mainland

China, the Philippines, India and EasternEurope have been explored.

Hong Kong has high equity capital marketsdeal volumes, with over $24.5bn completedlast year, and its also close to mainlandChinas larger equity markets, whichcompleted nearly $80bn in deals last year.

Nonetheless, while investment bankingjob cuts have historically been lightin Asia, headcount reductions amongrevenue generators reached 18% of theglobal total last year a signicant rise.

Tokyo is the regions largest FX market, witha daily turnover of $2.8 trillion in 2012. Italso houses Asias largest fund management

industry, with $3.4 trillion in AUM.Australia remains domestically focused,with the Big Four banks NationalAustralia Bank, Commonwealth Bank,Westpac and ANZ still dominatingthe market. Its compulsory employmentsuperannuation (retirement)programme has ensured a formidableasset management industr y, with $1.5trillion in AUM.

The nancial services sector oers awealth of opportunities across the globe,and each nancial centre has its strengthsand specialisms.

Londons hold on the top spot for

nancial services has much to dowith its 37% share of the$4 trillion traded every day on theforeign exchange markets.

A Truly Global IndustryA aphot of th ky tth of th wod

acia ct

$4trillion


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GETTINGIN

EMPLOYERS

FINANCIALSERVICES

INVESTMENTBANKING


San Francisco

Chicago

Toronto

New York

Boston

London

Edinburgh

Paris Frankfurt

Moscow

Dubai

Zurich/Geneva

TokyoSeoul

ShanghaiHong Kong

Singapore

Ky to yo

the worlds nancial hubs at a glance

www.enancialcareers.com/students | Careers in Financial Markets2014

US & Canada

New York

Chicago

Boston

San Francisco

Toronto

EMEA

London

Edinburgh

Paris

Frankfurt

Zurich/Geneva

Moscow

Dubai

Asia-Pacic

Singapore

Tokyo

Seoul

Shanghai

Hong Kong

Capital Markets

Commodities

Derivatives

Fund Management

FX

Hedge Funds

Financial Markets

M&A

Operations

Private Banking

Asia-Pacifc

Europe, Middle East& Africa (EMEA)

US & Canada

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However, at graduate level,the fact remains that youwill earn more in yourrst three years workingin a front-oce role thanin any other industry.Median starting salariesin investment bankingcome in at 38.2k ($57.7k),

according to guresfrom the Association ofGraduate Recruiters in theUK. However, this gureincludes support functions.

Those in the sales & tradingand investment bankingdivisions receive a basesalary of approximately45k ($68k), accordingto recruiters DartmouthPartners. Add in bonusesand you earn 65k ($98k)in your rst year. In theUS, rst-year analystsearned an average of $110k,

according to research fromheadhunters Glocap, whichbreaks down as $70k in basesalary and a $40k bonus.

Investment banks stillwant to attract the verybest graduates, and partof this is being able to

pay accordingly, says JonTerry, partner in the rewardpractice at PwC. Theres aperception that investmentbanking is the place to earnmore money, more quicklythan in any other industry.Banks are trying to changethat image but not at

graduate level.Among the largestinvestment banks, thebiggest payer for analysts intheir rst year in 2012 wasCredit Suisse, which oeredaverage remuneration of74k ($111k), accordingto Dartmouth, closelyfollowed by Barclays at73k ($110k).

Pay rises are fairlyregimented in the followingthree years as you move upfrom analyst one to analyst

two and three positions.Base salaries increasemoderately to 50k ($75k)in year two, suggestDartmouths gures, butbonuses range from 30-40k ($45-60k) and, by yearthree, total compensationrises above 100k ($150k)

largely driven by biggerbonuses that are around90% of salary.

Any 21-year-old will havetheir head turned by thepotential to earn 65k intheir rst year, says LoganNaidu, chief executive

of Dartmouth Partners.Whats changed is thatas job opportunities forgraduates have shrunk ininvestment banking, rmswant to see students whogenuinely love the workand have demonstrated thisthroughout university.

Investment banks alsohave to ensure that theyremain competitive withother areas of the nancialsector. Its common particularly in the last 12months for analysts in

mergers & acquisitions,leveraged nance andnancial sponsors divisionsto move into private equitypositions after only a yearor two working for aninvestment bank. Analystsin private equity earn $117k,according to Glocap gures.

If you want to earn the sortof money where you canretire on a yacht by thetime you hit 30, though,investment bankingisnt the right industry.Theres pressure from

nancial regulators acrossthe world to ensure thatremuneration is moreclosely tied to risk thismeans smaller bonuses, anincreasing proportion ofwhich needs to be deferredover a number of years and

tied up in the banks stock.Still, managing directorsin M&A can expect to bringin up to $1.7m, according togures from headhuntersOptions Group.

In Europe, regulators arepushing through proposals

that would limit bonuspayments to 100% of salary,or 200% if shareholders agree.

If your base salary is closeto a million dollars, and youhave a bonus to match which can happen at seniorlevels then relative to thevast majority of equivalentjob roles in other industries,people are still very wellpaid, says PwCs Terry.

Most banks raised basesalaries three years agoin response to increasingpressure on bonuses, andare doing so again.

Generally, though, mostexperts agree that pay inthe investment bankingsector is on a downwardkeel, albeit from a veryhigh starting point.

The average total remunerationoered to rst-year analysts ininvestment banking. Pay expertsexpect total compensation to fallby 30% over the next ve years,but not in the junior ranks.

$98k

Theres a perception thatinvestment banking isthe place to earn more

money, more quickly thanin any other industry.Banks are trying tochange that image but not at graduate level.

Jon TerryPartner,

Reward practice,PwC

Put aside images of investment bankers quang Bollingerand high-ving each other after another bumper bonusround. Hubris around banking pay is no longer the order of

the day. With regulators cracking down and public angerover bonuses, banks have instead been keen to point tohow responsible theyre being about remuneration.

show m th moy

Bonuses, Bollinger and thebaying public the truth aboutinvestment banking pay

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Working to improve the future.

Join the EIB

The EIB, as the Bank of the European Union, is dedicated to improving the

future of peoples lives in Europe and around the world. It achieves its goals

thanks to a diverse and highly qualified workforce, motivated to supportthe financing of sound investment projects that deliver tangible results.

Join the European Investment Bank

www.eib.org/jobs


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First things rst: do the right degreeThe best place to start is, of course, with anance or economics deg ree. Economics isntactually a degree that helps once you get intothe job, admits one young investment banker,but people associate it with the profession, soit was ver y useful having it. But what if its too

late and youre already deep into a banking-inappropriate undergraduate degree? HR teamswill tell you it doesnt necessarily matter.Your degree subject will always matter froma knowledge and learning perspective, but weprovide really robust training programmes forour interns and graduates that enables thosewho dont have nance or economics degreesto contribute in a similar way to those whodo, says Faye Woodhead, graduate resourcingmanager at Deutsche Bank.

Although investment bankers come from arelatively diverse range of academic disciplines,youll have to work twice as hard to get in ifyour degree subject deviates from the bankingnorm. My English degree stil l raises e yebrows,

says one banker, who got a job at a m id-capinvestment bank through a graduate traineescheme two years ago. There are certain placesthat I just wouldnt have got a job, he says,referring to bigger investment banks. If youredoing a classics or history deg ree, youd betterstart interning, joining societies and striving forthe very best marks. In the case of our bankerwith an English degree, he did most of the above,but still says he wouldnt have got his job i f hehadnt had good maths grades at school.

Start earlyIdeally, you should start building up your CVfrom the minute you get to university, if notbefore. The later you leave it, the harder it isto get a foot in the door, says one 24-year-old, working at a global investment bank. Headvises those who havent left it too late to lookinto doing work experience programmes, with aview to being taken onto a summer internship.Spring weeks, as theyre called, provide youwith an introduction to the workings of thebank, its various divisions and f unctions.

People who have done such programmesare much more likely to be shortlistedfor interview, he says. The schemes arecompetitive to get on to, but not as competitiveas the summer internships. Dierent banksalso run these in dierent weeks, so reallyswitched-on students could do numerous

insight weeks consecutively.Show an interest in the marketsWhether you are at a top university doing anance degree or not, you wont stand much of achance with the more prestigious banks if yourCV doesnt scream I love markets! Anotherinvestment banker we spoke to, who is chargedwith assessing work experience in CVs, says thatfakers will be spotted. It cant just be somethingyouve put on your CV at the last minute, you needto show a track record of being interested.

Investment banks love to see e xtra-curricularactivity, but it doesnt all have to be banking andnance-related, says another investment banker:If theres nothing at all on there, it does makeyou look very narrow, he adds. He was a memberof his universitys nance society, but the thing

that he says was commented on most frequentlyat interview was his involvement in the armedforces as an ocer cadet.

Embrace nepotismBut, unsurprisingly, all the extra-curricularactivity in the world may not prove as useful as

Your degreesubject will alwaysmatter from aknowledge andlearning perspective.

Honest advice about going into investment banking afteruniversity is hard to nd. Graduate recruiters want to encourageas many applications as possible, so qualities like passion,hunger and dedication are all cited as what they want to see innew hires, rather than anything more quantitative. The reality of

getting into the super-competitive world of investment bankingis rather dierent, however.

What It Really Takes to Get In

Real-world tips for getting afoothold in investment banking

FAYE WOODHEADGraduate

resourcingmanager,

Deutsche Bank

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a sly phone call to an investment banker friendor family member. The more competitivethe industry, the more important it is to callon every contact you have, says one 25-year-old banker. If youre up against thousands ofapplicants, youd be stupid not to leverage everyconnection. Young investment bankers wespoke to were full of nepotism horror stories.Of all the people I know from university whowent into banking, a considerable percentagewere helped along the way by somebody theyknew, says one. I know somebody who didntget a place on a summer internship programmeat a big investment bank, but a phone call wasmade by Daddy and he was given a place.

Although your contacts can make that crucialdierence, gone are the days when they couldget you straight into a job. On the whole,your connections can help get your applicationnoticed and maybe get you to the interviewstage, but after that its up to you, says theinvestment banker. And with well-fundedgraduate recruiters at investment banksscouting universities for the top talent, gettingconnections is no longer something that onlythe super-privileged can do. Go to every singlebanking presentation there is and introduceyourself to people. Join societies like the nancesociety or entrepreneurial society as theyre alsogood for connections. Just because you donthave friends in high places now, doesnt meanyou cant make some.

Boost your chances with internshipsAnd if networking can get you a summerinternship, but not a job, thats not somethingto be snied at. The vast majority of my yeargroup did an internship before getting their gradjob, says another banker, who himself did aninternship at the bank where he now works. Idsay 80% had done an internship at some point.

(For more information on internships, see TheRise and Rise of Internships on p14).

Work out what your bank wantsAccording to the young investment bankers wespoke to, the HR line about looking for peoplewho t with their companys culture isnt totalrubbish. It really is true that you might notbe the right match for a bank you might beperfect for Lloyds, but not for HSBC. They wantto nd the right t, says one. Having anentrepreneurial spirit endeared me to the bankI work for, but I dont think it would have meanta lot to other banks. You can work out what abank is looking for by dissecting the companyswebsite and analysing what the media says aboutthem. Most companies will be reasonably open

about what they value whether its sportingexcellence, charity work or top grades.

Learn to sell yourselfAnd once youve worked out what they want,you need to persuade them that youve got it.The importance of talking the talk is not to beunderestimated. One banker says he was able to

smooth talk his interviewers: I said that I mightnot know everything about nancial instrumentsnow, but Id certainly work as hard as I could tond out, if I got the opportunity which wasnttrue at all.

Learning to sell yourself will continue to benetyou throughout your career. I work withsomebody who was a trader at three dierentbanks, says one investment banker. He lostmoney at each one, but he still kept on gettingrehired because hes such a smooth talker.Apparently, it is possible to fake being the rightperson for the bank youre applying for: Theresa lot of duplicity in the application process people get jobs at top investment banks knowingthat they want to leave after ve years. But, hesays, 95% of people who get jobs are genuine. Inthe end, its always easier to get into investmentbanking if you actually do have passion,hunger and dedication.

the checklist

Stick to these rulesto succeed

1. Make sure yourewell-roundedBanks dont want

autobots. You needto show commitmentto nance, but haveother interests toshow your softerqualities.

2. Keep the degreenance-relatedBanks will teachyou what you needto know aboutthe industry, buteconomics ornance degrees tendto be the most likelyto get you through

the door.3. Get an internship

Internshipconversions var yfrom 65-75%,depending on thebank. Its the easiestroute in, whichis why places areercely fought for.

4. Make friends andinuence peopleNetwork like crazy,get to know whoswho and leverage

any contacts youhave - nepotism isstill alive and well.

geTTIngIn

The typical conversion rate forsummer interns in investmentbanking. It remains the numberone route to a full-time position

75%

EMPLOYERS

FInAnCIAlservICes

InvesTmenTbAnKIng

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Three banking insiders a bankinggraduate recruiter, a graduate recruitmentconsultant, and a CV coach review a

real* CV selected from those submittedby students to eFinancialCareers.

i* The names and

locations etc. havebeen changed toprotect the identityof the real studentbehind the CV.

Ou thak to:

Carolyn Mcoscar,Graduate Recruiter,roya bak ofscotad

Victoria McLean,MD, City Cv, careerand executive coaching

Tim Webster, Principal,Datouth Patgraduate recruitmentconsultancy

TIM WEBSTERPrincipal,

DartmouthPartners graduate

recruitmentconsultancy

I go straight forrelevant work

experience, thenimmediately toeducation. And acrossthe board we're lookingfor outputs.

What recruiters look for

Your academics degree and evenA-levels/Highers at the rightgrades to convey a track record

of achievement.Your achievements I go straightfor relevant work experience, thenimmediately to education. Andacross the board we're lookingfor outputs, says Tim Webster,principal, Dartmouth Partnersgraduate recruitment consultancy.

Your attention to detail check outthe dierent dash lengths in thedates and the inconsistent use offull stops. Why does this matter? Asan entry-level analyst, colleaguesand clients might think if yourpresentation is sloppy, could your

thinking be sloppy too?

Format & language

Layout easy to scan; bulletpointshelp to keep focus, but the stray,second-level bulletpoint underFidelity is overdoing it.

Length a one-pager is generallyne for graduate jobs; but the info inplaces is vague, so Tom could have goneto two pages to convey more detail.

No personal statement thereviewers were split, but all agreed

its not needed if its clear what typeof role youre going for and why.

Fonts some inconsistent fonts andspacing throughout, with the bottomsection just squeezed onto the page,giving an impression of lack of care.

Language Tom trips up at the endwith the overly casual undergradstudies rather than undergraduatestudies yes, Tom, one of thereviewers actually pointed that out- thats how much detail matters!

Wok xpic

O-cycle internship possiblydangerous to include something youhavent yet started, as you neverknow what might happen betweennow and then.

Alliance Trust too vague, whichundermines Toms credibility.One reviewer thought it was purework shadowing, in which casehe should say so, as being unclearraises doubt.

Fidelity much more specic aboutwhat he did; he clearly had outputsalthough even here it would be goodto see more specics e.g. about whichparticular phamaceutical companies.

educatio

Balance? Tom gives Education morespace than Work Experience, andtoo much weight to the Columbiacourse, which was a short coursecompared with his degree or MSc.

Focus? Toms football achievementsshould be under additional

information or interests sections.Level? St Andrews, for one reviewer,is not the best place to do nancialeconomics, but as a university itis strongly placed in the rankings.Also, did he do Highers or A-levels?

ladhip

Is it really necessary? Depends onwhich role Tom is going for, butnot all graduate roles in banking

specically target leadership skills.Is it really leadership? Not really. Itsadministration. And the one piece ofreal leadership Tom has as captainof a football team has been left outof this section altogether.

ski & itt

General its important that thereisan Interests section, as it conveysa broader view of who you are.

Technical shouldnt start withthese, and should try to specifylevel of prociency.

Entrepreneurial better to usespace to show achievements -recruiters know how to spot theskills your achievements convey.

Financial recruiters do like somesigns of genuine interest in the eldfor which youre applying.

Oa

Main strength? The layout.

Main negative? The vagueness.

In or out? Despite the lack ofdetail, all three reviewers wouldhave ltered Toms CV to the nextrecruitment stage.

Overall assessment solid butnot outstanding.

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Three investment banking graduate recruitersanswer students questions on what they look for,and what (not) to do to land a job with them...

Q: Do you look for any particularacademic qualications, and how can acandidate make their CV stand out?

We hire from all academic backgroundsand place a high value on the diversityof thought. We want to see candidateswho are well-rounded but focused.Forexample, holding a meaningful role inone or two organisations is preferable todoing a little bit of everything. An abilityto maintain high academic standardswhile showing impactful involvement inextra-curricular activities will make acandidate stand out.

Q: What non-work-related activitiesdo you look on favourably?

Athletics, volunteering, studentgovernment or other extra-curricular

activities that demonstrate an abilityto work in teams or lead, or show a realdedication to a philanthropic interest.

Q: What would make you pick onegraduate CV over thousands of others?

Strong academic achievements, relevantwork experience and meaningful extra-curricular involvement. In addition, ifcandidates have leveraged their networkand engaged with professionals at therm, this should also be highlighted inthe cover letter to help them stand out.

Q: How can candidates succeed atinterviews?

Know your resume and be able to

articulate clearly what you are lookingfor and why you are interviewing for thisparticular role. Its important to shownot only that you can do the job, but thatyou want to do the job. Stay up to date onmarkets and current events. Have a fewkey examples ready in advance of theinterview that highlight your strengths aswell as any challenges.

Coming across as condent is imperative,so practise, practise, practise! The moretimes you tell your story the easierit becomes. And most importantly, beyourself. Never forget to ask questions atthe end of the interview. We often heardescribe the culture or when will I hear

back?, but smart candidates will askrelevant industry-related questions.

Q: Where do people slip up?

Candidates who come across as arrogantor insincere will not succeed. A relevantbackground is important. Candidatesneed to convey a demonstrated interestin the industry. Finally, being able toarticulate why they want to work atMacquarie versus another rm is key.

gaduat rcuit Q&A

How to impressgraduate recruitersin EMEA, the USand Asia-Pacic

Its important to show not only thatyou can do the job, but that you wantto do the job. Stay up to date onmarkets and current events.Valerie Fred

Regionalrecruitment lead,

Americas,Macquarie

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Q: How important is it tohave done an internshipat Goldman Sachs?

A signicant number ofthe people we interviewhave done an internship,either at Goldman Sachsor with another rm. It ishelpful if the candidatescan give examples of howthey have demonstratedcertain skills and I wouldhighly recommend thatyou have some work

experience before theinterview. Obviously, aninternship at GoldmanSachs provides theideal opportunity tobuild a relationship withour team.

Q: What tips would yougive on how to preparefor an interview?

Practising your interviewtechnique is key. It isamazing how dierentthe experience can feelfrom what you haveimagined, so practise as

much as possible withfriends, family or yourcareers service. Anothertip is to do your research:you should be able to talkeloquently about why

you want that particularjob and why you want towork for the rm.

Q: What is the mainreason for rejectinga candidate in yourexperience?

It depends on therequirements of the rolethe candidate is applyingfor, but you shouldfocus on perfectingyour application,because spelling or

grammar mistakes area distraction from thecontent and will probablymean you will notsucceed. It is importantto demonstrate you havea well-rounded prole,solid academics but alsocommercial awareness,leadership skills, extra-curricular experienceand initiative.

Q: What are the mostcommon mistakescandidates make?

I would say coming acrossas either over or under-condent in interview.Candidates shouldseek to nd a balance:they must be condent

enough to communicatetheir enthusiasm andmotivation for the

job, without soundingarrogant. Anothercommon mistake is whencandidates answer thequestion they hope to beasked, rather than theone that is posedto them.

Q: How important is itto ask as well as answerquestions?

It is important, as aconversation is alwayspreferable to a one-way dialogue. It isgreat if a candidate isable to ask intelligentquestions during theinterview rather thanadministrative orlogistical questions. Thisenables them to showthey have done theirresearch and are engagedin the conversation andselection process.

Candidates must becondent enough tocommunicate theirenthusiasm andmotivation withoutsounding arrogant.

Helen OuseleyGraduate

recruitmentmanager, EME A,Goldman Sachs

Q: Do you only hire nance graduates? If not,what else do you look for?

The important thing to remember is thatyou do not have to be studying nance tobe qualied. We have graduates from allbackgrounds working within UBS, includingthose studying the humanities and sciences,as well as economics and nance. We are more

interested in the broad intellectual skills youhave developed at university than the subjectyou specialise in. Were looking for people whohave the integrity, drive and teamwork skills tohelp us deliver our promises to our clients.

Q: With so many applications, you must seesome frustrating mistakes often. What arethey?

The most commonly made mistakes are theresult of simple oversight of important details.We frequently see applicants who cut andpaste cover letters without customisation,sometimes leaving the wrong company nameon the letter or application. Some applicantssend us CVs without including their contactdetails, therefore we are not able to contact the

candidate. It is very important to put accurateand precise information on the CV and avoidany grammar and spelling mistakes. Andnally, you should only attach a professionalphoto of yourself, rather than a photo of you onvacation or at a social event.

Q: What should students know going into aninterview?

Preparation is the most important. For us, weparticularly look for candidates who can showthey understand the nancial market and UBSbusinesses. My tips are:

Know your area: You do not need to be anexpert, but you need to demonstrate your

knowledge and focus on the business area forwhich you have applied. You should researchgeneral information about the rm, gain anunderstanding of the markets in which weoperate and have a more detailed knowledge ofyour chosen business area.

Kow th pop: Make sure you attend one ofour campus presentations or events and meetwith representatives from UBS. Get a sense ofwho we are, how we operate as an organisationand what our current and future priorities are.

lit ad thik:Listen carefully to thequestion, and think about what the intervieweris really asking. Take your time: repeating thequestion or asking for clarication can be a good

way of composing your thoughts and preparingyour answer.

Dot ptd you kow:If you dont knowabout something, admit it. Honesty will get youfurther than blung.

Tim CohnHead of graduate

trainingprogramme, APAC,

UBS

EMEA

Aia-Pacifc

EMPLOYERS

FInAnCIAlservICes

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Not all banks have them GoldmanSachs doesnt, for instance. Nonetheless,its the preferred way of deciding whichstudents to hire in EMEA and Asia.Heres what you should expect.

1. More numerical testsThe online numerical tests wereeasy the ones youll face during theassessment centre will step up a gear.However, to ensure that you didntGoogle your way through it, or pay amaths whizz to take the e xam for you,

many banks will ask you to re-sit thetests again rst thing in the morning.Some banks will set harder numericaltests throughout the day.

How to excel:Jut ak u youcotiud to pacti. nuicatt a atiy ip additio,utactio, pcta, aph adi.

2. Individual presentationSome banks are kind and send you thetopic a week before, others present youwith documents on the day and expectyou to digest the information and comeup with a cohesive argument. Its usually

a problem relevant to your eld youropinion on a potential M&A deal in thenews, the future of the bank youreworking at, how to value a company. Thiswill be assessed by senior people in yourbusiness line, so its really your chance toshineor sink.

How to excel: Cotuct a cohiaut with a t u ofpoit ad a cocuio. Dot ipyuitat th ifoatio ackwithout ii a coct opiio,ad ppad to ha it qutiod aai dicto wi attpt toip it to hd. Kp it coci adca dot ti youf up i kot ycati a oy copx autyou cat pt i ti.

3. Group exerciseYoull be separated into groups of fouror ve, given an information pack abouta particular topic and asked to worktogether to come up with a discussionon its contents, usually followed by apresentation that will be assessed by agroup of managing directors. Its not justabout the presentation though, graduaterecruiters will usually stroll throughthe discussions, trying to assess yourbehaviour in a group environment andhow you interact in a team.

How to excel: mot pop au tht way to ip i to doiat thpocdi, aki thi adhipquaiti ca. bak ay fowo thi. Itad you wat to focu oactiy paticipati without ithtaki o o i idid. Takiti to coid, couicatio,aayi ad itpti thifoatio, ta woki adiuci oth a ao ky.

4. InterviewsDepending on the bank, you could haveanything from three to seven interviewson the day. Usually, they are with seniorbankers on the team youre applying to,but other rms also include HR. Somewill be competency-based assessingyour behaviour in a given scenario others will be technical, testing yourbanking know-how.

How to excel: r th sTAr

(situatio, Tak, Actio, rut)appoach to itiwi, hpiaitai tuctu to you aw.Kow you Cv, cau you wi qutiod o ythi. Ad aoa tay ca aitai qutiodid to ak you thik o youft wi ud xtiy.

5. E-tray/In-trayBecause it emulates a real workingenvironment, this is often consideredthe most dicult element of theassessment day. Youll be presentedwith documents related to a particularscenario you are working on nancialinformation on a company, the structure

of the rm, the banks stance on it.

Th Fia Hud

The gruelling days thatwill seal your fate

If youve made it through investment banksinitial screening processes the onlineapplications and psychometric tests, telephoneinterviews and, in some cases, a face-to-facegrilling then youll be invited to the nal

hurdle, the assessment centre.

Expect experienced interviewersto test what you dont know and tond the limits of your knowledge,

whether about current aairs,markets, technical knowledge,brainteasers or whatever.

Peter HarrisonCEO,

Harrison Careers

the STARapproach

situation

Tak

Actio

rut

S

T

A

R

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Then emails will start owing intoyour inbox, and youll be asked tochoose from three set responses,based on your calculations or factswithin the documents on yourlaptop. You may also be asked toadvise on a particular strategyrelated to that rm.

How to excel: Thi ay oudcopicatd, ut th aoithod i iia to oth ttthouhout th at ct

ad cuitt poc. U thifoatio you ha, dit itad i th oica aw.

6. Written exerciseDepending on the bank, you couldbe asked to write a multi-pagereport, a simple email or a one-pager, but the object of the exerciseis simple testing your writtencommunication skills.

You will be asked to come up with acompelling case for, say, acquiringa particular company, again basedon information provided to you bythe bank.

How to excel:Thik of it ik aay itoduc you aut,i up to fou ao why youthik thi i th ca, ad ctyou poit with a cocuio.Dot kit aoud th poit ak a dciio ad tak a iw.Oh, ad ak u you aai ipcca.

These are only open tothe students banks aregenuinely interestedin, and who would havepassed the first stages ofthe application process.Generally, a bank willfly in candidates and putthem up in a hotel nearhead office usually NewYork and invite them toa networking event thenight before.

This is informal, andgives you a chance to

meet other candidates,but should still be viewedas the first test somebanks, admittedly notoften, have been knownto make hiring decisionsthere and then.

In theory, super-daysare simple youll berequired to undertake aseries of interviews withvarious members of thebusiness. There will beat least one interviewwith someone at everylevel analyst, associate,

VP, director (or executivedirector) and managingdirector but therecould be as many as ten30-minute interviewsfrom 8am-6pm.

Some firms take areality TV approach eliminating candidatesthroughout the day,but others will make adecision at the end ofthe super-day based onscores submitted by thedifferent people whohave interviewed you.

Expect to get beyondthe usual competencyquestions that do notreally differentiatecandidates says PeterHarrison, a formerexecutive director atGoldman Sachs who nowruns Harrison Careers.Expect experiencedinterviewers to test whatyou dont know and tofind the limits of yourknowledge, whetherabout current affairs,markets, technical

knowledge, brainteasersor whatever. Expectthat any lies will bedetected - do not tryto bluff experienced

interviewers. You will aceinterviews by being readyfor any question.

Technical questionswill be asked, so knowweaknesses in yourknowledge and focus onthem before the day sothat youre as preparedas you can be. And, if youdont know the answer,try not to panic: Whenthey ask what the yieldon the 10-year JGB Yengovernment bond is,

you can explain you donot know that, but youDO know the yield on1, 10 and 30-year USTreasuries, the 10-yearUK Gilt and the 10-yearGovernment Euro bondsays Harrison.

Its not all about yourknow-how the peopleinterviewing you arethose youll eventuallybe working with, so theywant to know if you willfit into the team. Thismeans you have to be

likeable, and genuinelyunderstand what it isyoure getting into andwhether you want to be apart of it.

One interviewer wasincredibly genial forabout 15 minutes, untilI made a mistake,and then he suddenlyswitched to a high-pressure interviewer,questioning everyanswer, interrupting andgenerally making my lifedifficult says George

Trower, a longstandinginvestment bankingprofessional and careerscoach. The point is youshould never let yourguard down everythingis a test.

the checklist

Here are four goldenrules to follow at bankssuper-days

1. Beinteresting!You may have spentthe last six monthstravelling aroundAsia. If so, what didyou do and learn? If

you spent time fundraising, how was yourapproach innovative?Say something to makeyou stand out.

2. Dont over-practiseYou may want to cramon your technicalknow-how, but dontgive scripted answersto questions about youand your motivations.

3. Prepare for stressInterviewers willtest how you handle

pressure thinkquestions with no realanswers, tasks whichcannot be completed intime for the deadline.Its more about howyou behave thangetting it right.

4. Know yourselfExpect walk methrough your resumeor tell me aboutyourself questions.Dont u your lines,lie or drone on. Thiswill be the rst, and

most crucial, part ofany interview.

In the US, instead of assessment centres, banks tend toinvite students in for a day of interviews starting on aSaturday morning, known as a super-day.

Succeeding at the super-day

You could be expected to sitthrough a maximum of 10interviews at a super-day.

Anticipate anything fromcompetency-based questionsto pressure interviews.

1day10interviews

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Lets make one thing quite clear if you dontcomplete a summer internship at an investmentbank, your chances of securing a full-time roleare severely diminished.

The Rise and Rise of Internships

Ten ways to turn your summerjob into a full-time oer

Under-selling themselves is a mistake

a lot of interns make. Youre not justthere to do a job you need to builda network and create a bond with theteam youre assigned to.

Stephanie AhrensHead of rmwide

graduate recruitment,Morgan Stanley

Goldman Sachs, forinstance, oers full-timeroles to around 60-70%of its interns; at MorganStanley this gure risesto 65-75%. According to asurvey by High Fliers,78% of those hired intoinvestment bankinghave previous industryexperience: thismeans internships.

The summer internshipis not simply a chance tosample the industry; itsthe primary route into

investment banking. Bankspay their interns around$15k for 10 weeks and theyexpect them to work forthat money. The hours forinterns in front-oce roleshave increased dramaticallyin recent years.

Sell yourselfDont walk around theoce with the swagger of abig-swinging deal-maker,but dont be a wallower.This is one of the biggestmistakes interns make,

says Stephanie Ahrens,head of rmwidegraduate recruitment andprogramme management,EMEA at Morgan Stanley.

Under-selling themselvesis a mistake a lot of internsmake, she says. Yourenot just there to do a job you need to build a networkand create a bond with theteam youre assigned to.

Make the rstweek count

The rst week can beoverwhelming muchof it will be spent withother interns in intensiveclassroom-based training.Getting to grips withnancial products, asset

classes and product types,modelling techniques andExcel shortcuts may seemdaunting, but this willgive you the skills tomake it through the restof your internship.

Remember,everything is a testSome of the projectsyoure assigned could berepetitious, menial ordownright boring, but all ofthem will mean something.Similarly, coee runs and

lunch orders may seemdemeaning, but makesure you get it right itsa minor test to see if youcan be trusted with biggertasks. Check your worktwo or three times. Youshouldnt be makinggrammatical mistakes inemails. Formatting is nothard. Do it correctly, saysone investment banking VP.

Look for bondsWhether you went to the

same school as the VP onyour desk, support thesame football team orshare a similar hobby,look for a way to ingratiateyourself with the peopleyoure working with.Ultimately, some couldprove eective mentors,but everyone will providefeedback on whether yout into the team.

Be a team playerIts a clich, but everyonewill tell you thatinvestment banking is ateam-oriented industry.Excel at your individualtasks, but dont lose sightof the bigger picture orhow you can help outothers on the desk. Dontbe an over-enthusiasticpuppy, but be willing todo whats required.

Be proactive, take onyour own projects withenthusiasm but contribute

in dierent ways and helpothers wherever you can,says Ahrens.

Ask questionsIf you dont understandsomething, dont sit at yourdesk trying to gure it out- ask someone. Similarly,when a senior bankerexplains something to you,dont just nod, ask follow-up questions. There are nodumb questions, everyoneassumes you know lessthan them anyway.

Be a culturevulture

Investment banks will bekeen to show how theirculture dierentiates themfrom their competitors.Get to know the corporateculture, and also how theteams really work domultiple internships if

possible to nd out aboutthe dierent rms andwhich one is for you.

Get socialYoull be given variousopportunities to socialisewith your intern peers, andnetwork with more seniorbankers. Grab these withboth hands, but in thelatter remember to remainprofessional, dress smartlyand ask the right questions.

Be openEven if youre on arotational internship, youmay go in with an idea ofwhich desk you want to endup working on. Forget this there are no guarantees,and you may nd thatyoure better suited to adivision you knew littleabout before going into theinternship. Also, every deskyou work on will feed backto HR, which will aect theeventual decision anyway.

Dress correctlyDress smartly, but dontcome in wearing a Hermstie and a pair of Ferragamoloafers. Bankers, especiallyanalysts, who youll bespending most of your timewith, dont want to see anintern whos better dressedthan them.

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In nance, itsgood to specialise.And thats exactly

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As the worlds leading nancialcareers website, were the placeto go for the best jobs and people.No other careers site can giveyou that vital competitive edgeand invaluable industry insights.

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18/64Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by t he Financial Conduct Authority and the Prudential Regulation Authorit y.Barclays Bank PLC is registered in England. Registered number 1026167. Registered Office: 1 Churchill Place, London E14 5HP.

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20/64

As the name suggests, M&A teams in investmentbanks advise client companies on mergers(where two companies join together as equals)and acquisitions (where one rm takes over partor all of another). Big investment banks only getinvolved with transactions worth at least $100m,and at the top end, the deals can be worth billions.

A career in M&A demands considerablecommitment. M&A bankers advise their clientsat stressful and critically important periodsin a companys lifetime. Every deal is unique,and competition between banks is intense,so deadlines are tight and the hours can bepunishing. Junior bankers can expect to be busyassembling the required nancial informationand legal documentation late into the night, ifthe deal demands it.

A successful M&A banker should be a hopelessoptimist because the reality is that the majority

of prospective deals dont happen for one reasonor another, says Jim Frawley, US head of M&Aat Macquarie Capital. You inevitably spend alot of time and eort on things that never cometo fruition but to be successful, you cannot letthat discourage you from working just as hard onthe next potential deal.

Key playersM&A revenues have been harder to come by inrecent years, with the overall deal value in 2012

falling by 47% since the boom of 2007, accordingto Ernst & Young. US players still dominatethe market.

Roles and career pathsThere is a relatively straight route up the careerladder in M&A. You start out at analyst levelfor three years, move up to associate for threeyears, then vice president, director (or executivedirector, depending on the bank) and managingdirector. Within those roles you have a chance tofocus on sectors such as consumer, nancials, oiland gas, or media and telecommunications.

The more senior you get in M&A banking, themore youll deal face-to-face with clients. At thejunior level you may attend cl ient meetings with

more senior bankers but mainly youll be focusedon complex nancial modelling and research tocompile the pitch book the document the rmuses to outline its ideas on which companies aclient should buy or sell to.

As an analyst, your key tasks will also includeworking on these client service presentations. Alot of this will involve building a nancial model,valuing a company or benchmarking it againstits peers.

It is only later that you step away from thenumber crunching. The key dierence betweenan analyst and an associate is that an associatetakes a little more responsibility for thetransactions and projects.

Investment Banking

key players

Global M&A ranking 2012 by deal value ($bn)

bakDa

aumakt

ha

1. Goldman Sachs 632.6 23.3%

2. J.P.Morgan 500.4 18.5%

3. Morgan Stanley 497.2 18.3%

4. Citi 448.1 16.5%

5. Barclays 426.4 15.7%

Source: Dealogic

Mergers & Acquisitionsbi da, hap uit ad it coptitio

When people think of investment banking, its invariably thesharp-suited individuals working on big deals in the mergers &acquisitions (M&A) team. Because of its glamorous reputation,it is one of the most competitive sectors to break into.

You inevitably spend a lot of time and eorton things that never come to fruition but tobe successful, you cannot let that discourage

you from working just as hard on the nextpotential deal.Jim FrawleyUS Head of M&A,Macquarie Capital

the overview

Revenues have beentougher to come byin M&A

Juniors roles areall about numbercrunchingandworking long hours

Working withclients comesfurther upthe career ladder

Howhot?

Money

Kudos

Opportunities

7/10 8/10 9/10 6/10

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For more details visit our website

www.morganstanley.com/careers

Morgan Stanley is an equal opportunity employer committed to workforce diversity. (M/G/D/V) 2013 Morgan Stanley

you have talents. we have options.

a p p ly n o w f o r s u mm er

i n t e r n s h i p s a c r o s s a l l

divisions in our london office.


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Pay and bonusesFirst-year analysts in M&A earn an average of45k ($68k) base salary and a bonus of between16-28k ($25-42k), according to gures from UKrecruiters Dartmouth Partners. On Wall Streettotal compensation for rst-year analysts is$110k, according to headhunters Glocap.

Skills soughtGiven that much of an analysts time is spentproducing complex nancial models used forcompany valuations, investment banks willexpect you to come armed with mathematical

skills and a keen aptitude for spreadsheets.You spend a substantial amount of timepreparing, gathering information andsynthesising it in such a way that helps clientsmake decisions that meet their objectives, saysFrawley. Therefore, an eective M&A banker hasto be strong on the quantitative aspects of the job,and eective at understanding deal dynamics, atidentifying critical issues and at being creativeand thoughtful in how to address them.

Numerical skills a re important, but theyreby no means the only things an M&A bankermust possess. Banks expect you to beautonomous, a quick learner and, considering thelong hours, able to maintain focus and accuracyunder pressure.

You should be willing to take responsibilityand demonstrate the strong communication andinterpersonal skills that are needed in order towork successfully with clients and in teams,says Brian OKeee, vice president, investmentbanking division, EMEA at Goldman Sachs.

The analyst role is a launch pad for yourM&A career, so banks will also expect to seeevidence of the skills required further down theline. Frawley says that senior bankers spendtheir time developing and nurturing clientrelationships, originating new business andmanaging the execution of projects. Suce tosay, wallowers need not apply, but any goodinvestment banker also needs business acumenand an ability to think longer-term beyond thecurrent deal.

M&A deals are also all about team work, so youshould feel comfortable working with a range

of colleagues across various departments andgeographies: You need to be able to learnquickly, have an innovative mindset, be a trueteam player and have the ability to interactwith colleagues and clients across the globe,says Mark Barbour-Smith, COO for M&A, EMEAat Credit Suisse.

pay andbonuses

Average global M&A pay 2012 ($k)

ro ba aay Tota copatio

1st/2nd year associate 100-125 250-350

3rd year associate 125-140 300-400

Vice president 200 400-650

Director 300 600-1,300

Managing director 300-500 1,100-1,700

Source: Options Group Intelligence Unit

Students need to go intothe job with their eyesopen - there are a lotof late nights, and as adeal comes to fruition,work can eat into your

weekends.

JaThoio

Vice president,

UK M&A,J.P.Morgan

James graduated witha degree in economicsfrom EdinburghUniversity and joinedJ.P.Morgan in 2008.

Because the competitionfor places in M&A is sointense, the technicalskills expected ofgraduates - numeracyand excellentcommunication skills -are a given. Desire andmotivation is what willget you ahead, and thisis hard to fake on anongoing basis. Peopleneed to be in it for thebuzz of the job.

At VP level, my roleinvolves speaking tolawyers, accountants andother nancial advisers,and bringing all the

information they providetogether to oer the bestadvice to clients. Thiscan be structuring andvaluation advice for alarge, high-prole M&Adeal, or linking a numberof interested partiestogether to make a bid fora particular asset.

We typically start workat 8.30am, and I tendto leave the ocearound 9pm. Eventhen, Im still availablechecking emails,reviewing documentsand often participatingin conference calls,particularly if a client ison the West Coast of theUS. Students need to gointo the job with theireyes open - there are alot of late nights, andas a deal comes tofruition, work can eatinto your weekends.

This afternoon I will bedrafting an oer letterfor a deal with a companythat the team has beenworking on for the lastthree months. Weve

been working togetherto build a valuationmodel and talking toindustry consultants,clients and accountantsto give us the input todecide on a price. Thistwo to three-page letteris a culmination of thateort, assimilatingthe information andpresenting it to the client.

What often getsoverlooked aboutworking in M&A is thatits predominantly apeople business. For allthe analysis, churningthrough Excel andPowerpoint, the key isbeing able to convey thismessage to the client,whether thats a FTSE100 CEO or a partner ina private equity rm.

career insight

InvesTmenTbAnKIng

www.enancialcareers.com/students | Careers in Financial Markets2014

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Investment Banking

When a company chooses to raise capital byissuing stock for the rst time, possibly to fundan expansion, its known as going public, and aninitial public oering (IPO) is simply the method

by which shares are sold on a stock exchange.Investment banks act as underwriters in theprocess, meaning that, in exchange for a fee,they guarantee that they will sell the shares acompany is issuing for a certain price. If theycant nd enough people to buy the shares at theprice theyve agreed for the company, the bankis obliged to buy the shares. IPOs are the best-known form of share issuance, but ECM bankersare also involved in a number of other types of(often more complex) deals. These include:

Follow-on oering after a company hasbeen public for more than a year, it maychoose to issue additional stock. Because therm is already publicly traded, the marketsdetermine the follow-on issuance share price,so investment banks focus their eorts onmarketing, rather than valuation.

Secondary oering a chance for companiesto increase the amount of tradeable stock andspread market capitalisation (its value) over agreater number of shares. Usually, its down tomajor shareholders, typically company foundersor initial shareholders, looking to ooad some oftheir stock.

Rights issue allowing publicly listed, cash-strapped companies to issue additional stock,usually at a discount rate, in order to meet theirnancing obligations.

Block trade a privately negotiated stock sale

organised through investment banks that allowstwo parties to buy and sell large quantities ofa companys stock without aecting its supplyand demand. Big trades can cause dramaticuctuations in share price.

Registered direct oering a pre-determinedamount of stock sold to a select band ofregistered institutional and accredited investors,rather than the man on the street.

Roles and career pathsLike other front-oce roles in investmentbanking, job titles and career progression arerelatively straightforward. You start out as ananalyst, either structuring products by being atthe heart of the valuation process, or being partof syndication (preparing the sale of nishedproducts to investors). Associates stay withthe number crunching, but are also likely to bemore involved with clients. As you move up to

vice president, expect the role to become moreprocess-driven namely, stepping away fromthe data and liaising with third parties likelawyers, accountants and other nancialadvisers in order to gather and synthesiseinformation for clients.

Its only later, at director and managing directorlevel, where the pressure mounts and youbecome an originator, nurturing relationshipswith existing clients, pitching for new businessand hand holding clients, particularly thosegoing to market for the rst time.

Within the ECM team you can either chooseto become an industry specialist consumer,nancials, telecoms etc or move into aparticular group. For example, working in a

team originating deals is dierent from thesyndication division, which more closely liaiseswith investors and the banks equity sales team.Or, you could specialise in convertible bonds alow-yielding corporate debt issuance that has theoption to convert into equity. These roles sit inthe ECM team, but are much more quantitative.

Skills soughtIf you harbour ambitions to become a seniorECM banker who originates deals, banks willexpect you to come armed with a natural charm.As we are working with very senior companyexecutives, we look for charisma and condence(but not over-condence) so that a team membercan engage well with clients, says Ben Canning,

managing director, UK ECM at BNP Paribas. Wetry to envisage what a person will be like in veto 10 years time, to see if they can manage clientrelationships.

key players

Global ECM bookrunner ranking 2012 ($bn)

baknt

umakt

ha

1. Goldman Sachs 58.6 8.9%

2. Citi 54.6 8.3%

3. Morgan Stanley 52.4 7.9%

4. J.P.Morgan 51.6 7.8%5. Bank of America

Merrill Lynch46.1 7.0%

Source: Dealogic

Equity Capital Marketsguidi copai ito th puic ph

Stock markets may be the public face of the nancialsector, but before a companys shares can be tradedthey must be created, and its the equity capitalmarkets (ECM) bankers who help companies do this.

We can teach you all thecorporate nance skills you

will ever need but I havenever hired anyone who didnot have a strong interest innancial news and markets.Be informed, have a view.

Rupert MitchellManaging director,

Head of Asia-Pacic equity

syndicate,Citigroup

the overview

Equity capital

markets bankershelp companiesraise funds on thestock market

Its all about trust,relationshipsandcharm

Careers can besales-driven orhighly quantitative

Howho

t?

Money

Kudos

Opportunities

7/10 8/10 7/10 7/10

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It all adds up to anexceptional career decisionNow is the time to join RBC Capital Markets.

Youll grow with us in a collegiate culture thatprovides exciting opportunities for your future.

See where you fit into the equation atcampus.rbccm.com

You

ExpertiseStrength

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This ad is for informational purposes only. RBC Capital Markets is a registered trademarkof Royal Bank of Canada. RBC Capital Markets is the global brand name for the capitalmarkets business of Royal Bank of Canada and its affiliates, including RBC CapitalMarkets, LLC (member FINRA, NYSE and SIPC); RBC Dominion Securities Inc. (memberIIROC and CIPF) and RBC Europe Limited (authorized and regulated by Financial ServicesAuthority). Registered trademark of Royal Bank of Canada. Used under license. RBCCapital Markets, LLC 2012. All rights reserved.The right formula


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du financement de lconomie mondiale.Bienvenue vos ides

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Rejoignez Crdit Agricole Corporate & Investment BankBANQUE DE FINANCEMENT ET DINVESTISSEMENT

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EMPLOYERS

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InvesTmenTbAnKIng


Trust between a bank and a client is veryimportant. Going public is an integral andnerve-wracking time for companies and everycase is unique, so banks need to ensure theiradvice on pricing and timing is absolutely spoton. Not surprisingly, considering the constantmovements of the stock markets (and theresulting eect on appetite for equity issuance),banks expect their graduates to be news junkies.

We can teach you all the corporate nance skillsyou will ever need but I have never hired anyonewho did not have a strong interest in nancialnews and markets. Be informed, have a view,says Rupert Mitchell, managing director, head ofAsia-Pacic equity syndicate, Citigroup.

On the syndication side of ECM, youre ensuringthat a deal that has been given the go-aheadin principle doesnt end up falling throughbecause one party is dissatised or gets cold feet.Syndication is more about project managementand being able to solve all sorts of issues thatmay come up throughout the deal executionprocess, and being able to work eectively withdierent professional parties both internally

and externally, says Melody Ngan, director inthe Asian equity capital markets team at Bank ofAmerica Merrill Lynch.

pay andbonuses

Average global capital markets pay 2012 ($k)





Director 300-500 500-750

Managing director 400-500 650-1,100


Haah mat

Senior originator,Equity capitalmarkets syndicate

Asia,UBS

Hannah has degrees incommerce (nance andaccounting) and arts (Frenchand economics) from

the University of Queensland,Brisbane, Australia. She joinedUBS in 2007.

Working in equity capitalmarkets (ECM) can bemore about people skillsthan anything else. TheECM environment isextremely dynamic andoften one is called uponto resolve problems ornd solutions for clientsat extremely shortnotice. In essence, thesyndicate desk is chargedwith balancing the best

interests of the rmscorporate clients withthose of institutions andother investors which arealso UBS clients. Its adelicate balancing act.

I am responsible for theexecution of ECM tradesacross the Asia region.This means not onlyexecution and pricing ofdeals but also a high levelof risk management.Transactions span bothprimary and secondarymarkets and include

initial public oerings,accelerated placements(oering shares in ashort period, with littleor no marketing), blocktrades (large purchasesof securities), andrights issues.

Numeracy and a thoroughunderstanding of equitycapital markets areobviously important forthe role, but it is alsonecessary to work to tightdeadlines and on multipleprojects simultaneouslyacross several businessdivisions.

Anyone wanting to workin ECM should ensure thattheir research is thorough,seeking to gain experienceof as many areas of

investment banking aspossible. Typically, thehours are long and thework can be demandingso it is important toensure that you areproperly prepared for thechallenges. Perhaps themost important qualitiesare exibility and athorough knowledge ofclient needs.

It is important to ensurethat the capital raisingneeds of our corporateclients are satised, but

not simply at the expenseof buy-side institutions,retail or other investors.In light of the scale andbreadth of UBSs equitiesplatform it is particularlyimportant for us tooversee an equitableoutcome. If we fail, ourclients can be expectedto take their businesselsewhere.

careerinsight

Anyone wanting to workin ECM should ensure thattheir research is thorough,seeking to gain experienceof as many areas ofinvestment bankingas possible.


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Investment Banking

DCM teams deal with saleable units of debt in theform of bonds. DCM is also called the xed-income

market. This is because bonds typically pay a xedamount in interest until their redemption date (i.e.when the original issuer has to pay back the moneyon the bond to whoever owns it at that time).

For example, a bond worth $100 might pay out$10 a year, making the interest rate, or yield,10%. The yield on the bond is inversely related tothe price the bond is bought or sold for, meaningif the price of the bond falls, then its yieldrises. Even though its price on the market mayuctuate, its face value remains the same and atthe end of the xed period it can be redeemed forthe price it was issued at, in this case $100.

Bonds come in all shapes and sizes, includingtreasury bonds issued by governments,investment grade bonds issued by companies,and so-called high-yield bonds (which are morelikely to default so pay a higher rate of return).Some are plain vanilla, oering a xed rateof interest and single principal repayment atmaturity. Others may be exceptionally complex

structured products.Banks may advise if, say, a company needsmoney to expand, or is reissuing (or renancing)debt after the initial bond has reached maturity.Bond markets dwarf equity issuance therewere $6.5 trillion-worth of debt deals globallyin 2012, according to Dealogic, versus $662bn inequity markets.

Roles and career pathsAs we mentioned, DCM markets are a lot biggerthan ECM markets and as a result those workingon this side of the business can be busier. DCMis a high-volume, but low-margin, business forthe banks, meaning that teams need to work onmore deals in order to generate the same level ofprots. The good news is that a lot of companiesissue debt frequently, so theres less of a need topitch to investors than during equity issuance.

Some debt teams are separated into governmentand corporate debt issuance, while others willdivide their teams between public companies andprivate placements. Within this, like ECM, debtbankers will focus on a particular sector, suchas aerospace or mining. Financial institutionsaccount for around 50% of all debt issuance, sobanks tend to have a separate team focusing ondierent elements of the nancial sector.

Junior DCM bankers will spend much of theirtime creating nancial models and draftingpitch books, much like their counterparts inECM and M&A. However, youll also be requiredto obsessively keep track of market trends newissues, demand drivers and rumours and mayoccasionally be asked to attend deal roadshowswith more senior bankers.

As banks are essentially oering similar services,they have to convince clients that their rm is theone to use. So before debt-related products can becreated, deal originators are deployed to bring innew business. These are senior bankers, usuallydirector and managing director level, who spend alot of time travelling to clients to gain an insightinto their nancing needs.

key players

Global DCM bookrunner ranking 2012 ($bn)

bakDa

aumakt

ha

1. J.P.Morgan 466.6 7.1%

2. Deutsche Bank 401.3 6.1%

3. Barclays 399.1 6.1%

4. Citi 378.4 5.8%5. Bank of America

Merrill Lynch333.4 5.1%

Source: Dealogic

Debt Capital MarketsTh fat-pacd wod of ot ad copoat od

If a company wants to expand but doesnt wantto sacrice private ownership, its more likelyto turn to debt capital markets (DCM) ratherthan issue equity in order to nance it.

DCM bankers cultivate and

develop relationships with clientsby providing them with relevantmarket information at regularintervals.

Patrick QuinnManaging director,

Debt capital markets,Americas, Nomura

theover

view

Debt capital markets dwarf equitydeal issuance

Junior bankers must be numerate,articulate and able to juggle a varietyof tasks

DCM bankers need an obsession withthe movements of capital markets Opportunities

Kudos

Money

How hot?

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You may also work in syndication coming inat the end of the process and ensuring the dealgoes to market. This involves giving pricing and aguide to live market trends to investors and, oncethe deal goes live, marketing it.

Skills soughtLike most front-oce investment bankingroles, rms e xpect their analysts to be highly

numerate and to have an understanding of thetechnicalities of company nancing. However,while most investment bankers are very focusedon individual deals, DCM bankers need to be ableto develop relationships with clients over time.

DCM bankers cultivate and developrelationships with clients by providing themwith relevant market information at regularintervals, says Patrick Quinn, managingdirector, debt capital markets, Americas atNomura. DCM bankers are also involved inevery aspect of structuring and e xecutingtransactions - working with cl ients to determinethe right structure for a transaction, workingwith legal counsel to properly document atransaction, and working with the syndicate

team, sales force, and trading desks to price anddistribute a transaction.

The fast pace of the DCM desks means that notonly must you have a knowledge of corporatenance, but you also need to develop anobsession with the movements of capital marketsand keep up with both legal and regulatorydevelopments related to the nancial sector.

Analysis of business trends also becomesincreasingly important as you progress in your

career, as sophisticated clients will e xpect youto present new ideas and solutions to them ona regular basis as you advise them on la rgeand strategic transactions, says MarcoBuganza, director in the DCM team at CreditSuisse in London. You will also need astrong determination to succeed, and goodpeople skills.

Analysts in investment banks DCM teams

are expected to be more well-rounded thanever, says Sarah Schell, executive director,DCM, J.P.Morgan in Hong Kong. Command ofthe traditional core analyst skill set is only abaseline. In addition, an analyst is required tobe conversant with the daily fundamentals,technicals, market issuance and executionprocesses across three segments: the high-gradeand high-yield bond markets as well as thetraditional loan market.

pay andbonuses

Average debt capital markets pay 2012 ($k)





Director 300 600-850

Managing director 400-500 750-1,200


DCM is moretransactional thanother parts of investmentbanking, and I really likethat. It means that thereare nite projects andclearly dened goals.Winning a competitivemandate or executinga transaction alwaysfeels great.

eiaspa

Associate,Debt capitalmarkets,

Morgan Stanley

Elias graduated with aBSc in Accounting & Finance

from University of War wickin 2009 and joined MorganStanley that year.

The debt capital marketsteam, at least at MorganStanley, is a joint venturebetween the investmentbanking division and thesales & trading division.This means theres a lotof interaction betweenus, M&A bankers andtraders in the sales &trading division.

My job focuses on Nordic

and UK corporate debtissuers, and this meansworking on everythingfrom relatively simplecapital raisings tomore complex riskmanagement and

derivatives transactions.Its the latter thatIve currently beenworking on today, buteven then Im workingon other projects andissuing regular updatesto the clients I cover forexisting deals.

DCM is moretransactional thanother parts of investmentbanking, and I really

like that. It means thatthere are nite projectsand clearly denedgoals. Winning acompetitive mandateor executing a transactionalways feels great.DCM is also good ifyou want to combinetechnical skills withclient-facing activity.

Most areas of investmentbanking will tell youthis, but its a very team-oriented environment.Its therefore really

important to demonstratebefore joining that youcan work as part of ateam, whether thatsthrough groups atuniversity, sports orother engagements.

The job requires a lotof attention to detail,and good organisationalability since youll beworking on multipleprojects at one time.Youll also need aninterest in nancialmarkets, because the

job is technical anda genuine interest innance and the marketshelps. In additionto that you must be

willing to take on clientresponsibility.

Try to read around asmuch as possible to getan understanding of howthe capital markets workand why companies needto raise capital. Withsocial networking, itsalso a lot easier to ndprofessionals in yourtarget area in case youhave any questions.

As with any investmentbanking job, the hours

you work can uctuatedepending on whatyoure working on thiscan make me late forsocial engagements!

career insight

GETTINGIN

EMPLOYERS

FINANCIALSERVICES

INVESTMENTBANKING


InvesTmenTbAnKIng


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Investment Banking

In the secondary markets, salespeople adviseclients on investment opportunities, whiletraders buy and sell securities on their behalf.

The secondary markets are divided into equities(stocks and shares) and xed income, currenciesand commodities (corporate credit, governmentdebt, currencies, commodities and interest rateproducts). Within the xed income division isforeign exchange (FX) - the largest market inthe world, with an average daily turnover of$4 trillion.

High-volume markets like FX and equities havebecome increasingly traded electronically. Thebenet is greater trade volume, which improvesmarket liquidity as well as increasing the speedand reducing the cost of transactions. Thedownside is that less manpower is requiredso trader headcount has fallen dramaticallyin recent years, while employee numbers in

the technology divisions (see InformationTechnology on p36) have risen.

There is also a range of exotic derivativeproducts within all these sectors, whose valuedepends on the underlying security.

Roles and career pathsSalespeople advise their clients when to buy andsell securities. They usually focus on particularproducts (e.g. government bonds) and clients,whether thats high-net-worth individuals,pension funds or corporate nance managers.Salespeople take orders from clients, from themoment markets open until they close, andcommunicate them to the trading desks.

Traders track the markets and buy and sellproducts at the touch of a button. Your career willbe dened both by what you trade (e.g. equities,foreign exchange, or commodities) and by thekind of trader you are. There are several types.

Flow traders buy and sell nancial productsfor a banks clients, while proprietary (orprop) traders trade the banks own money.Historically, prop traders were at the top of the

trader hierarchy, but many banks have reducedtheir prop trading activities following regulatorycrackdowns like the Dodd-Frank Act in the US.

Execution traders place trades for analysts andfund managers the key is to be both quick andaccurate with the software, and able to deal withany problems should they occur.

There are also sales-traders, who act as

intermediaries between sales and executiontraders, and develop new business for the bank.They quote prices, take client orders, advise onthe timing of the trade and execution method.They are seen as key revenue generators, andgood client relationships are key to the job.

Within the electronic trading teams, youll alsond quantitative analysts, who design, developand implement execution algorithms using a

key players

FICC market share

1. J.P.Morgan 10.5%

2. Citigroup 9.5%

3. Deutsche Bank 9.0%

4. Barclays 8.9%

5. Bank of AmericaMerrill Lynch

7.5%

Source: Deutsche Bank and J.P.Morgan analyst estimates

Equities market share

1. Goldman Sachs 13.1%

2. Morgan Stanley 10.3%

3. Credit Suisse 8.5%

4. UBS 6.7%

5. Barclays 6.4%

Source: J.P.Morgan analyst estimates

Sales & TradingTh wh da woki th coday akt

Every day, millions of nancial products are boughtand sold in the secondary markets where traders andsalespeople in investment banks work together totrade for clients after a securitys initial issue.

You mustbe true toyourself,nd thecommunicationstyle that youare comfortablewith and use it

to gain clientstrust and buildyour network.

Joe SquiresCo-head,Rates salesEurope,BNP Paribas

theover

view

Sales is all about people skills,resilience and persistence

Trading is increasingly electronic, andtraders need to adapt

Traders need to assimilate a lotof information in a fast-paced,pressurised environment Opportunities

Kudos

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mathematical approach to identify investmentopportunities and strategies.

Within the sales and trading division, graduatesare also recruited into structuring and marketingroles. Its the structurers job to create nancialproducts and provide a pricing service toclients. Its the marketers role to search for newopportunities to sell these products, and preparemarketing materials and pitches.

Skills soughtIf youre trading complex derivatives youllneed the mathematical ability to understandthe products. If youre trading non-complex,vanilla products, youll need to understandwhat drives the market. FX and equity traders inparticular are news junkies, able both to connectthe dots across a broad range of dataand understand the implications of worldevents on markets.

The ability to multi-task, to work underpressure in a fast-moving environment, toassimilate information quickly in order to reactfast to market changes, sharp attention to detail,and strong risk management skills are a mustfor a successful career in trading, says DanielleSindzingre, global head of xed income, creditand currencies, SG CIB.

Understandably, if you have a desire to work in

sales, its safe to say you shouldnt be a shrinkingviolet. You must also have a thick skin only asmall percentage of approaches to clients resultin a successful sale, so you must be able to persistin the face of rejection.

You must be true to yourself, nd thecommunication style that you are comfortablewith and use it to gain clients trust and buildyour network, says Joe Squires, co-head, ratessales Europe at BNP Paribas.

To be successful in sales, individualsneed to possess superb verbal and writtencommunication skills with a proven ability todevelop and build relationships both internallyand externally, adds Sindzingre.

pay andbonuses

Equity cash sales average global pay 2012 ($k)


Associate 100-120 150-200

Vice president 150-200 250-350

Director 250-300 350-450

Managing director 400-500 450-600


Equity cash trading average global pay 2012 ($k)


Associate 100-120 150-200

Vice president 150-200 150-300

Director 250-300 300-450

Managing director 400-500 450-600


We value raw talent, butthe people who are mostsuccessful combine theirtalent with a sense ofurgency and tenaciouseort.

Howad ma

Head of cash

equities trading,Asia ex-Japan,Bank of America

Merrill Lynch

Howard has an SB andMBA from the MassachusettsInstitute of Technology inthe US. He started his careerat McKinsey

Documents

Careers in Financial Markets 2014 (Efinancialcareers)