Working in An Investment Bank

1. Working in An Investment Bank Careers Adviser Abi Sharma

2. Aim of Today • An overview of the different job roles you can do • What role would you suit? • Current job market

3. The Investment Bank People use retail banks to borrow, save and manage their finances. Investment banks help large companies do the same thing.

4. What are the Front Office divisions? Banking Secondary Markets Transaction services Project finance Asset Finance M&As Corporate Finance FXTrading Sales Primary Capital Corporate Markets Banking Equity Fixed Structuring Capital Income Markets Markets

5. The Divisions • Imagine you’ve built a successful manufacturing company. • You want to go global. • What would you need from a bank?

6. To borrow money for equipment, materials and running costs The Corporate Banking division would provide you with a loan and act as the long-term relationship manager and conduit to other services.

7. To handle cash flow effectively Transaction Services would manage your company’s cash flow, a bit like a current account, except the balance could be billions of dollars!!

8. To buy another company Mergers & Acquisitions (M&A) would help you to buy up or merge with another company. - roles: start as analyst then progress. Can specialise on particular sector e.g. oil & gas

9. To raise money for growth through selling shares Equity Capital Markets wouldlist your company on the stock market,find you buyers for the shares and underwrite

10. So, your company’s getting larger… but you want to continue to expand. What do you need next? More money…. …basically

11. You need to fund debt more cheaply Fixed Income/Debt Capital Markets will help you get a larger loan via bonds or a syndicated loan

12. Fund a long term project Project Finance will lend you money against the future income of the completed project.

13. Replace key equipment across all your branches Where you need large items which add value to your company, Asset Finance will buy these items ( ‘assets’) and lease them to you.

14. …manage your now considerable (!) personal wealth Private Banking will manage your investments, liabilities and responsibilities.

15. Other Capital Markets roles Structuring: this creating, marketing, buying and selling the full range of derivatives (including futures, options, swaps and credit derivatives).

16. Derivatives traders at the Chicago Board of Trade, established in 1848 – the world's oldest futures and options exchange.

17. Sales and Trading Sales advise clients on which financial products to invest in or to sell and traders buy and sell them on behalf of clients. Equity Research provide clients and colleagues with the best possible information on market trends and investment opportunities: so this supports the sales and trading roles.

18. The Foreign Exchange team does deals on behalf of clients (including pension fund holders/hedge fund managers) on the Foreign Exchange Market (FX).FX is about predicting how economics factors cause currencies to rise or fall.

19. Middle Office Credit Risk Management assess and evaluates the risk involved with each of the bank’s products.

20. Back Office Information Technology provides the competitive tools of the trade for everyone in a bank, from salespeople to researchers. Operations make the transactions actually happen.Once trading is complete They clear, settle and execute hundreds of thousands of deals every day, worth billions of dollars.

21. Good intro to investment banking divisions at: www.bankingbasics.citigroup.com/buildabank/ • www.wikipedia.org will explain new terms as will the jargon buster at the back of ‘All you need to know about the City’ • More detail from the Vault Guide to Investment Banking and Finance • www.efinancialcareers.com • Then start reading the Financial Times and Economist regularly.

22. Current Job Market for 2009 Morgan Stanley: Places filled by interns Lehman: Who knows?! Merrill Lynch: Hiring for selected positions Dresdner Kleinwort: Not hiring Deutsche Bank: Analyst positions not banking / markets JPMorgan: Selective hiring UBS: 30% of places available after interns

23. Where does that leave me? Think broader in finance: • Locations other than london? • What other areas still have opportunities? • Accountancy, Advisory Services, Brokering • What other areas are growing? • Risk analysis, risk management /actuarial, insurance

24. Read the News!!! “Hundreds of finance jobs will be created in Liverpool in the coming months after Barclays announced a recruitment drive, according to reports.”www.cv-library.co.uk, 9 October 2008 “Up to 200 finance jobs will be created in a period of five years after insurance firm Swinton Group announced it is aiming to increase the size of it commercial division through acquisitions.www.cv-library.co.uk, June 2008

25. Application Tips Question: Why this business line? • Structure – try 3 reasons, 3 paragraphs • Think concrete evidence; avoid the vague • They want to see (a) evidence you know what you’d be doing in this role (b) you’d enjoy it and (c) you have started to demonstrate the skills required • Style – keep sentences short, don’t waste words, do you really need that joining word (e.g. “also”, “in addition”, “furthermore”)?

26. Good example… Know what role involves Why this business line? “Sales & Trading would suit me for three reasons. Firstly, I enjoy visibility and accountability. I discovered this through representing my year group on the School committee. I took a petition for change to time-tabling to the autumn meeting, presented to the Faculty Dean and twelve senior academics. Time tabling in term two has been changed as a result. Secondly, I think quickly. I demonstrated this when…” Enjoy/skills

27. Question: Why this bank? • Be particularly careful to avoid the vague and cliched “You have a great reputation”, “You are a market leader” How can you prove this? Why is this important to YOU? • Banks want to know (a) you’ve researched what makes them different (so talk to people there via recruitment events or contacts, Google search them, read their website including case studies…) and (b) what links you to them. • Reference anything you’ve learned about them – where did you learn it? • Think about their culture, specialist areas, approach to training. Definitely talk about any exposure you’ve had to them via recruitment events, work experience – what has this taught you?

28. Good example… Why this bank? “When talking to an X Bank representative at the SOAS Graduate Jobs Fair, I was impressed by the level of contact analysts have with senior managers. In my summer placement with Flexible Asset Management, I found I learnt a lot from contact with the firm’s director. I would like this to continue into my graduate career.”

29. CVs • Do they specify a 1 page CV? • American banks generally expect 1-page. • Call European banks to ask which they’d prefer, but often either will do.

30. Tips from Standard Chartered’s Graduate Recruiters… “Commercial sense is vital.  We will ask questions about things like customer care, how would you invest £1K etc to make sure that you have a sense of what makes a business run.  Don’t just read the FT.  Also read around the current topics via the Economist, Business pages in the Broadsheets etc. to get more than one side of the story.” “If you are given an opportunity to sell yourself, then take it.  We have 3 questions on our form, the third of which asks you to tell us anything else that you want us to know in support of your application.  Loads of people leave this blank and this is a real missed opportunity.”

31. Other tips… Where possible get an internship whilst at university. These are available in the winter / summer of your penultimate year. If you can’t get one in an investment bank try and get one in a retail bank.

32. How we can help? • CV checks tomorrow for finance: library Pod 1 • FB 115 6-7.30pm Panel Talk, Q&A, Drinks • CV & Application form checks & workshops • Careers Group employer events & courses www.careers.lon.ac.uk

33. Queen Mary Careers Service WG3 Queens Building – 020 7882 5065 Opening times: Monday-Thursday 10.30am-5pm Friday 10.30am-4pm Drop-in sessions: Monday-Thursday 10.30am-12.30pm 2.00pm-4.30pm Part of www.careers.qmul.ac.uk