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management industries. eFinancialCareers.com includes a student Campus Connection, premier job
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and ahead in your career.
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
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interview will shape your career path and determine your chances for success. This edition of
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• Career profiles of professionals working in various sectors with valuable advice
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• Industry trends to allow you to gauge who are the big players and who’s hiring and
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key publications to read and organizations to join
• Employer profiles which provide a snapshot of who’s hiring in what areas
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Focus on Career Management
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Your guide to finding a job in securities and banking
2006-07
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 within a dynamic environment, you will contribute to our
company's business growth and momentum. It's a great time to join us.
Work alongside industry-leading professionals to deliver exceptional
solutions to our clients. Expect to be a contributor, a collaborator,
and a colleague.
For more information or to apply online, visit ml.com/careers
Merrill Lynch is an equal opportunity employer.
[ ]
MERRILL LYNCH
limitless potential
growth and momentum
inspiring colleagues
ml.com/careers
The road to the top just got shorter.
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the benefit of greater client exposure and potential for advancement.”
Dina Patel – Associate, Consumer Group
M.B.A. Kellogg School of Management; B.B.A. University of Michigan
Fast track to success.
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Our integrated bank model and industry expertise provides creative capital-raising
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Our markets include: Diversified Industries, Energy, Consumer, Industrial, Healthcare,
Financial Services, Technology and Mergers & Acquisitions.
To learn more about joining our team of motivated, successful individuals,
please contact Dawn Zima at dawn_m_zima@keybank.com.
Achieve anything.
Welcome
Welcome to the second edition of eFinancialCareers.com’s
Careers in Financial Markets.
Investment banking is one of the most popular career choices
among today’s very best graduates and MBAs, so the com-
petition 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 manage-
ment fields. Professionals from analysts to managing 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 for job seekers is our series of career guides:
Careers in Financial Markets, and its sister publications
Careers in Financial Markets (UK), le Guide des Carrières en
Finance (France) and Carriere in banca e finanza (Italy). 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 eFinancial-
Careers.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 future career,
Nicki Gilmour
Managing Director, eFinancialCareers.com
www.efinancialcareers.com
www.efinancialcareers.com
Contents
Welcome 1
Contents 2
How to Use This Guide 3
Overview
A Career in Investment Banking 4
Trends: A Cyclical and Highly Competitive Industry 6
Sectors
Mergers and Acquisitions 8
Debt and Equity Capital Markets 10
Sales, Trading and Research 12
Quantitative Analytics 16
Alternative Investments 18
Corporate Banking 21
Foreign Exchange 22
Private Banking 24
Operations 26
Fund Management 28
Investment Consulting 32
Private Equity 34
Global Custody 36
Risk Management 39
Compliance 40
Human Resources 42
Legal 44
Information Technology 46
Marketing and Public Relations 48
Ratings Agencies 50
Information Providers 52
Finding a Job
The Recruitment Process: A Survival Guide 54
A Guide to Graduate Training Programs 56
Interview Insiders: Know Your Q&A 57
Demand High for Qualified Grads 58
Managing Your Career
Managing Your Career 60
Happy? You Should Still Keep Your Resume Ready 63
Building Effective Relationships With Mentors 64
Making Friends and Influencing People 65
Take the Offer and Run 66
Voices of Experience 68
How the Right Recruiter Can Push Your Career 69
Recruiter Q&A: John Mazzei 70
How to Face Trader’s Trauma – Then Trade Some More 73
How to Blow Your Career in 90 Days or Less 74
How to Future Proof Your Career 75
The Global Private Equity Club and How to Get In 76
What it Takes to Make Managing Director 78
Career Path: Joseph Ghartey 79
Career Path: Jeffrey Sherry 80
Resources 81
Careers in Financial Markets is published by eFinancialCareers Ltd, www.efinancialcareers.com
Editor: Mark Feffer; Project Manager: Lena Quek; Design & Production: Michael Ballou Dudley; Marketing: Maria Slabaugh
Writers: James A. Ambrosio, Caren Chesler, Dona DeZube, Maureen Nevin Duffy, Carol Gray, Emma Johnson, Scott Krady, Lena Quek, Myra Thomas
Additional copies: cs@efinancialcareers.com +1 800-380-9040; ©2006-07 eFinancialCareers Ltd; no part of this publication may be reproduced without permission
Employers
For Diversity, Banks Chase the Same Talent 82
Going Global: International Career Options for Graduates 84
Better to Go Bulge or Boutique at Career Start? 85
Employer Essentials 86
Employer Profiles 87
Glossary 90
Compliance and the Shape of Things to Come 92
How to Use This Guide
Careers in Financial Markets is designed to be used in conjunction
with eFinancialCareers.com, where you’ll find up-to-date pay and hir-
ing news, career advice and information on employment trends in the
financial markets. This guide will ground you in the securities industry’s
different sectors and provide background information on available
career paths and the skills you’ll need to be successful.
To be credible at interviews, you have to know the difference between,
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
institutions 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 me hear from you.
Sincerely,
Mark M. Feffer
U.S. Editor
eFinancialCareers.com
www.efinancialcareers.com
4
Careers in Financial Markets 2006-07
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-
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 pitchbooks
– the company and sector research that helps a bank win
business. In sales, analysts hit the phones, calling (rela-
tively unimportant) clients on various (non-crucial) matters.
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 both clients’ and their
firm’s needs and motivations.
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 that life starts to get exciting. While
the title may sound daunting, don’t be deceived: Any large
investment 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 potentially make more money than their firm’s manag-
ing 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 the
investment banking world’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
Managing directors sit at the upper echelons of the invest-
ment banking hierarchy. They’re the rainmakers who deal
directly with clients and bring in business. As happens 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 director each
year. At Goldman Sachs, the ratio of employees to manag-
ing 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.
T HI S I S WHE RE YOU NE E D TO BE .
jpmorgan.com/careers
YOU
ARE
HERE.
JPMorgan is a marketing name of JPMorgan Chase & Co. and its subsidiaries worldwide. ©2006 JPMorgan Chase & Co. All rights reserved. JPMorgan is an equal opportunities employer.
AND WE’VE SPENT ABOUT TWO HUNDRED YEARS GETTING READY FOR YOU. WE’VE BUILT AN INVESTMENT BANK THAT DOES
MORE BIG, COMPLEX DEALS THAN ANYONE ELSE. WE’VE SET THE PACE OF CHANGE IN
EVERYTHING FROM TECHNOLOGY DEVELOPMENT TO PRODUCT INNOVATION TO RESPECT FOR WOMEN AT WORK. WE’VE
CREATED A BUSINESS PLATFORM THAT LETS US MEET THE GLOBAL NEEDS OF OUR CLIENTS BETTER THAN ANYONE ELSE. AND
WE HAVE CREATED A TEAM SPIRIT THAT IS STRONG AND SUPPORTIVE, WITHOUT BEING RESTRICTIVE. NOW WE’RE
ENTERING THE MOST EXCITING STAGE OF OUR HISTORY – WITH INVESTMENT, GROWTH
AND TALENT AT THE TOP OF THE AGENDA. EVEN IF YOU’VE NEVER CONSIDERED INVESTMENT BANKING AS A CAREER
BEFORE, YOU SHOULD NOW. BECAUSE, WHATEVER YOU WANT FROM THE FUTURE – INTELLECTUAL
CHALLENGE, PERSONAL RECOGNITION, PROFESSIONAL FULFILLMENT, FAST-TRACK DEVELOPMENT, A RICHER LIFE, OR ALL
OF THE ABOVE – THIS IS WHERE YOU NEED TO BE. THIS IS YOUR TIME.
6
Careers in Financial Markets 2006-07
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 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
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 five
percent or more of their least-performing employees. On its
Web site, Goldman Sachs lists its 14 Business Principles,
which include this thought: “We offer our people the oppor-
tunity to move ahead more rapidly than is possible at most
other places. Advancement depends on merit and we have
yet to find the limits to the responsibility our best people
are able to assume.”
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 be-
come a multimillionaire. Although most investment banks
cap salaries at around $250,000, bonuses for top perform-
ers 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 followed a manic hiring spree in the late 1990s. In
1996, for example, worldwide headcount at Goldman Sachs
was 6,000. By 2001, the company had 25,000 employees.
By 2004, 5,000 of those were gone. In the early part of this
decade, Merrill Lynch reduced its headcount by 24,000 over
two years. While some observers believe Wall Street has
learned its lesson, and so will avoid such swings in the
future, many others remain unconvinced.
This is an industry with an exceptionally flexible approach
to recruitment. To avoid being left behind, would-be
investment bankers should develop strong transferable
skills relevant to other industries or sectors. Working for
companies with established brand names also helps build a
more impressive resume, leaving you better placed to find a
new job when it becomes necessary.
Graduate Recruitment:
A Variable Flow
These characteristics apply to 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. In 2000, Wall Street
dramatically increased its hiring and boosted pay by as much
as 50 percent. After all, investment banks had to compete
with all those dot-com companies so in vogue at the time.
But over the next two years, the number of graduate vacan-
cies plummeted 25 percent and students found it increas-
ingly hard to secure jobs. The dot-com bubble had burst.
Today, graduates are stepping onto a promising landscape.
Investment banks and management consulting firms are
aggressively recruiting MBA graduates. In 2006, several
banks were expecting to increase their intake by around 30
percent. Whether or not the trend holds throughout 2007
remains to be seen.
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 consulting
firm Mercer 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
7
www.efinancialcareers.com
Careers in Financial Markets 2006-07
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.”
So, ask yourself: Which areas are now experiencing either
long term or structural growth?
Hedge Funds
There’s no other way to say it: Hedge funds are hot right now.
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, compliance or information technology.
As more institutional money is invested with hedge funds,
the funds have moved into private equity and other forms of
direct capital, providing financing for acquisitions, recapital-
izations, leveraged buy-outs, bridge financing, growth and
distressed situations. As a result, they have increasingly
sought staffers with experience in sourcing, valuation,
modeling, structuring and negotiation – the very skill sets
possessed by investment bankers from top firms. 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 who have already made the jump to the buy
side because, in the words of one recruiter, “they need the
instincts and experience of an investor.”
Structured Products
Structured products—such as complex “derivative instru-
ments,” meaning financial instruments that are based on
underlying stocks, bonds, currencies or assets—is another
hot area. It’s likely to remain one for some time.
“Futures” are simple examples of structured products.
These are instruments which provide buyers with the
right 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. When it comes to hiring structured-prod-
uct specialists, most investment banks are driven by their
pursuit of better investment returns: Neither the equities
nor debt markets have performed all that well in recent
years, so derivatives based on underlying products have
provided some of the only avenues for investors to achieve
higher rates of return.
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. “Not only is there a premium for
compliance people now, the job of compliance is getting
bigger,” says Marie Rice, a senior consultant at Jay Gaines
& Company, Inc., a Manhattan-based financial services
recruitment firm. “The market is demanding, more than
ever, people who can sort through the complexity of the
law and translate that into specific initiatives across the
corporation.”
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.
8
Careers in Financial Markets 2006-07
Mergers and Acquisitions
Big deals, long hours, lots of travel – and lots of money
Mergers & acquisitions is about doing deals: the deals that
join two companies as equals (a merger), result in one com-
pany being taken over by another (an acquisition), or one
firm selling itself or one of its business units (a disposal).
M&A specialists are the people who make these transac-
tions happen. They travel the world, earning millions of dol-
lars in fees for their firms and hefty compensation packages
for themselves. Some transactions are straightforward, such
as when Engelhard Corp., a maker of chemical and materials
catalysts, was purchased by the German chemical company
BASF AG. Others have the
potential to change the face of
a global industry, as happened
when the New York Stock
Exchange and its European
counterpart Euronext proposed
becoming a single, transoceanic
financial exchange.
“The role of an M&A specialist
is a complex one and requires
a combination of skills and
personality traits,” says Allan
Walker, Japan representative
for Eban, an executive search
firm with offices in Asia, London
and New York. M&A specialists
need to be articulate, with strong verbal and written com-
munication skills that enable them to convince key stake-
holders to move one way or another, he explains. They also
should be able to conduct in-depth analysis of a company’s
financial situation and industry position while keeping in
mind the macro view, engaging in “blue-sky thinking” and
sharing that vision. “The role entails hard work and long
hours, often working under pressure with tight deadlines,”
Walker says. “It requires tenacity, patience and discretion.”
Most large investment banks only become involved when
a transaction will be worth $150 million or more. Smaller
transactions—those worth between $20 million and $150
million—are usually handled by the M&A divisions of large
accounting firms.
Putting together an M&A deal is no small task. The teams
involved often work days, nights and weekends. Once a
transaction is underway, junior bankers are kept busy as-
sembling the financial information and legal documentation
required for its completion. Just one merger can require
reams of contracts, disclosures, regulatory filings and other
documents – all produced under deadline pressure.
Still, M&A is a popular choice among business school
graduates, which is a good thing for investment banks. A
survey conducted in the first half of 2006 by Financial News
and IntraLinks, a provider of secure online workspaces to
the financial services industry, found that 96 percent of
Europe’s banks planned to hire junior employees for their
M&A departments. At the same time, remember that the
number of graduates applying to a bank’s M&A department
often outstrips the number of available positions.
Roles and Career Paths
Mergers and acquisitions bankers are advisors. They
counsel their clients on all aspects of buying, selling and
merging with other companies. They’re usually a part of
a broader corporate finance group that guides clients on
the processes and strategies involved in raising the money
needed to finance a transaction.
Generally, the more senior the M&A specialist, the more
contact he or she has with clients. Analysts—the most
junior of investment bankers—spend much of their time
creating pitchbooks, the documents that outline a bank’s
ideas for a particular transaction. For example, a pitchbook
might sketch out whether a client should purchase a com-
pany and then detail how the deal should be financed. M&A
U.S. Announced M&A First Half 2006
Advisor Value $bn No. of deals
Goldman Sachs 156.9 39
Lehman Brothers 141.2 37
Citigroup 136.5 32
Evercore Partners 107.8 9
Rohatyn Associates 89.4 1
JPMorgan 64.0 40
Lazard 44.4 9
Merrill Lynch 40.8 30
Morgan Stanley 39.0 32
Credit Suisse 38.6 35
Source: Thomson Financial
Just one merger can
require reams of
contracts, disclosures,
regulatory filings and
other documents – all
produced under
deadline pressure.
9
www.efinancialcareers.com
Careers in Financial Markets 2006-07
analysts often 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
the analysts’ work
and check their
models to make
sure they’re correct.
Supervising the
associates and
analysts are the
vice presidents.
VPs have little com-
punction about ask-
ing for pitchbooks
to be rewritten,
even if it means
the associates and
analysts stay up
all night to make
the changes. VPs
report to directors
and managing directors, the people who “own” the client
relationship, and so are the main points of contact between
the bank and the client.
Sometimes, a pitchbook comes to nothing. A client may not
go along with the team’s suggestions, or it might engage a
rival bank. However, when a client buys into a pitchbook’s
proposals the team speeds into execution mode – seeing
the deal through to completion.
Skills and Qualities
• Appetite for hard work
• Analytical ability and statistical aptitude
• Team-working prowess
• Good communication skills and self-confidence
• Strong attention to detail
Kathleen D. Scott, Principal, RA Capital Advisors
How did you come to work in M&A?
My previous experience was in public accounting: I worked at Arthur
Andersen in San Diego for 3 1/2 years. I worked on audits of public
and private companies in a variety of industries, such as health care,
defense and not-for-profits. RA Capital was one of Andersen’s clients.
It’s very common for public accountants to migrate over to work for
one of their clients.
What’s a typical day like for you?
If we’re working on a buy-side engagement, it may include overseeing
the screening process to try to find the most attractive targets for a
client. On the sell side, I may be strategizing on how to best posi-
tion a client in order to maximize value to its shareholders. I typically
oversee the process of finding the right buyers, such as those who
are most likely to pay a premium. I get very involved with negotiat-
ing various aspects of transaction agreements, as well as assisting
clients who are looking for private financings. I also deal with some
administrative. But overall, my job is 90 percent deal flow.
What advice would you give to students hoping to break into
the business?
An internship is the best way to determine the areas you’re inter-
ested in. A career in investment banking is very demanding. People
shouldn’t go into it if they want a lot of free time. It requires you to
have a well-rounded skill set, and there’s no set way to enter the
field. Some people jump right into investment banking, while others
work for a while, earn an MBA and get into it later.
What advice would you give to junior staffers?
In general, it’s important in M&A and investment banking to try and
stay one step ahead of the fray. By anticipating change or people’s
needs, you can demonstrate that you’re thinking as a vice president or
director would. You’ll go a long way in the M&A world if you tend to
perform up to a higher role rather than simply the title you possess.
Is there anything else you think is important?
A career in investment banking requires a significant commitment.
This is a time-intensive business, but it’s important to maintain a
balance in your life. Particularly, when you work as a junior analyst,
it’s difficult to take time off because of the pressures to perform.
But you don’t want to get burned out. I have two children in elemen-
tary school, and it’s important that I see them grow up. While it’s
important to be committed to your career, life is too short to ignore
everything else.
Profile
M&A specialists are
the people who make
transactions happen.
They travel the world,
earning millions of dol-
lars in fees for
their firms and hefty
compensation
packages for
themselves.
10
Careers in Financial Markets 2006-07
Debt and Equity Capital Markets
The ‘factory floor’ of the financial markets
The capital markets are the area where equity and debt
products—more popularly known as stocks and bonds—are
created, sold and bought. Created by investment bankers in
the capital markets divisions of firms like Goldman Sachs,
Merrill Lynch and UBS, these financial products are used by
companies and institutions to raise money that will fund any
number of business activities or financial obligations.
Stocks, which trade on the equity capital markets, or
“ECMs,” represent ownership interest in a company. To put
it simply, a firm’s value is measured by multiplying the dollar
value of each share by the
number of shares outstanding.
When a company offers stock,
investors pay for any shares
they buy. Then, their shares’
value rises or falls based on the
performance of the company
and the perception of investors
on the value of the stock. In
other words, a stock’s value is
often tied to how well investors
believe the company and its
stock will perform over the short, medium and long terms.
Stocks are also known as equities.
For investors, stocks earn money in two ways. First, they
allow them to share in the company’s profits when it
pays dividends. Dividends are essentially a share of the
company’s profits that are divided among its stockholders.
In addition, stocks can be sold from one investor to another.
Obviously, shareholders will usually want to sell their stock
at a higher price than they paid for it.
Bonds are traded on the debt capital markets, or “DCMs.”
They’re a form of loan that carry a commitment for repay-
ment at a designated point in the future. Often, the bond-
holder who is eventually repaid is likely to be different from
the investor who purchased the bond in the first place.
Between the time they acquire a bond and its redemption
date, bondholders receive interest payments in return for
the service of loaning money to the issuer. Because these
interest payments take the form of fixed cash sums paid
at regular intervals, bonds are known as fixed-income
products. Similarly, the bond markets are sometimes called
fixed-income markets.
In addition to stocks and bonds, a bank’s capital markets
division can issue more complex products. Among them are
equity-linked products, which are bonds that can be con-
verted into equities at a pre-arranged price; and derivatives,
which are financial instruments based on an underlying
product such as a stock or other asset.
According to Thomson Financial, global equity and related
volume rose 45.7 percent during the first half of 2006, to
$321.8 billion. Even with the stock market weakening,
the second quarter of 2006 was the strongest since 2000:
Volume rose to $173 billion from $100.5 billion during the
second quarter of 2005.
Roles and Career Paths
Bankers working in the capital markets division cover a
range of tasks, often specializing in originating, structuring
or syndicating an issue. Originating is another way of say-
ing creating a financial product. Structuring means assem-
bling products, while syndicating encompasses preparing
products for sale to investors.
Origination specialists are usually senior bankers who
spend much of their time on the road, meeting clients to
learn about their financing needs and persuading them
to engage their bank’s services. By contrast, structurers
are distinctly desk-bound: They spend their time creating
complex products to suit the financing needs uncovered by
origination specialists. Once the structuring work is done,
it’s up to syndicators to prepare the market for the sale.
They calculate the best price range, assess demand and
make sure the correct documents are in place.
Skills and Qualities
• Analytical ability and statistical aptitude
• Awareness of how markets work
• Strong communication skills
• Ability to manage multiple projects
• Perseverance
In addition to stocks
and bonds, a bank’s
capital markets
division can issue
more comlex products
Bloomberg is the world’s leading provider of real-time financial news, data and analysis.
Leading corporations, news organizations, financial professionals and individuals in
more than 127 countries rely on Bloomberg. Our products drive decisions that affect
millions of people and billions of dollars worldwide every day.
BE VALUED
A determination to communicate is built into our culture. We break down barriers
between people and encourage communication by bringing colleagues together. With
no job titles or executive areas, we foster interaction at every level. We have over 8,000
employees embodying the excellence and intellectual curiosity for which we are known.
We demand much of our people; they are treated with the respect that they have earned
by helping us to become a world leader in our industry. All this means that we create an
environment in which you have unparalleled opportunity to excel.
BE CHALLENGED
We offer graduates a variety of areas in which to perform. You can get involved with
the BLOOMBERG PROFESSIONAL® service, the financial information platform that is
our core business, or join one of our media teams distributing the latest financial and
business news. We recruit from any background and from any discipline. From day one,
you can expect real responsibility. You will work with many business areas and people
at all levels. We work in international teams and alongside people from every culture
and background on a daily basis.
BE DEVELOPED
Career development opportunities at Bloomberg are wide-ranging. Our structure
is meritocratic, meaning that there is no hierarchy or barrier to communication. The
result is that our company is geared towards progression and advancement. You will
be evaluated solely on your own performance and the contribution you make to our
business. At Bloomberg, you learn by doing and by gaining responsibility. Training is
ongoing in every team. All employees can enroll onto Bloomberg University classes to
improve their knowledge across a multitude of subject areas. We also fund job-related
external training and study towards professional qualifications.
Apply online:
careers.bloomberg.com
VACANCIES FOR
GRADUATES
Finance
IT
Media
Research & Development
Sales
Internships
Vacancies also available in
Europe and Asia
APPLICATION DEADLINE:
Year-round recruitment
12
Careers in Financial Markets 2006-07
Sales, Trading and Research
Winning and losing in the secondary markets
After a financial product is launched, it’s traded on a
secondary market. Here, salespeople, traders and research-
ers sign-up clients, advise them and carry out their trading
strategies and instructions. Generally, clients involved in
these markets are high-net-worth individuals, pension funds
and institutional investors.
Sales
Salespeople spend their time working the phones, calling
clients from the moment markets open until the moment
they close, as well as during the hours before and after
trading. Once they’ve signed an
order, the salespeople
pass it on to traders, who buy
the products on the
appropriate market.
To succeed, salespeople must
be charming and persuasive.
Clients often need a bit of
encouragement before buying a
product, and salespeople must
be able to call them for a chat
about market conditions as
easily as to plug 20,000 shares of a company’s stock or the
latest government bond.
Between the salesperson and the trader exists a hybrid:
the sales-trader. Like salespeople, these professionals call
clients to recommend securities. Like traders, they can buy
and sell the appropriate stocks or bonds after an order has
been signed.
Trading
The people who actually buy and sell products on the
secondary markets are the traders.
Traders make snap decisions worth millions of dollars,
and can make substantial profits in the process. They get
up before dawn to be at their desks when the markets
open, and spend their days
ensconced before an array
of computer screens that
allow them to monitor the
price movements of stocks,
bonds, commodities and
other financial products, as
well as real-time news and
research reports.
The outlook for hiring
and compensation varies
according to the type of
financial product a trader
specializes in. In mid-2006,
Lehman Brothers and Credit
Suisse were among the
banks hiring traders as
they built new commodi-
ties teams, and investment banks continued to make hefty
profits from their trading operations.
On the other hand, many of Wall Street’s traditional trad-
ing jobs are feeling the heat from an increased reliance
on algorithmic trading and technology. Some executives
estimate the sell side has lost about a third of its trading
jobs as decimalization narrows spreads and many routine
execution tasks are automated. In the long run, there may
be opportunities for professionals who can combine trading
skills with the ability to analyze and repair algorithms. Un-
derstanding when to use algorithms, when a trader has to
step in to complete an order, and how to monitor algorithm
performance through the trading day are skills that could
become increasingly important on trading desks.
Research
Researchers produce written reports that salespeople use
Wall Street’s
traditional trading
jobs are feeling the
heat from an
increased reliance
on algorithmic
trading and
technology.
How successful in-
dependent research
houses will ulti-
mately be remains
an open question.
2005 Best Overall Sales Team
Rank Firm
1 Bear Stearns
2 Lehman Brothers
3 Citigroup
4 Merrill Lynch
5 Morgan Stanley
6 UBS
7 Sanford C. Bernstein
8 Goldman Sachs
9 JPMorgan Securities
10 Credit Suisse First Boston
Source: Institutional Investor
13
www.efinancialcareers.com
Careers in Financial Markets 2006-07
Damien Loh,
Foreign Exchange Options Trader, JPMorgan
What made you choose trading as your career?
I learned about trading when investment bankers came to my school
to speak to us. I wanted to be in a job that allowed me to learn
something beyond what I had learned in skill, yet allowed me to apply
what I had studied.
Can you describe a typical day?
I arrive at 6:45 a.m., when markets in London are starting to move
again with New York just coming in. I have to quote prices non-stop,
risk manage and look for new trading ideas simultaneously. I don’t
stop to catch my breath until noon, when I eat lunch at my desk while
staring at the screens. As London leaves for the day, markets become
quiet and there is more time for me to read research and figure out
my profit and loss for the day. I leave work at 5:30 p.m. and it starts
all over again the next day.
What do you like most about trading?
The learning curve remains steep and it’s a true meritocracy. A good
trader gets promoted and compensated commensurately, without
much politics interfering with that process. I also like how it re-
quires a person to synthesize their knowledge and skills in many
disciplines—like geo-political knowledge, statistics, programming,
etc.—into one job.
What skills and qualities do you need to excel in this field?
You need an excellent work ethic. You also need to be both book
smart and street smart. Excellent communication skills are a must. A
lot of money is lost from miscommunication. And you need to be able
to handle long term bouts of stress.
Any words of advice for the aspiring trader?
A trader spends a lot of time with his or her colleagues, so besides
having the usual requisites of being smart and having a good work
ethic, students should highlight an interesting fact about themselves
on their resumes. Don’t put the usual hobbies like poker or watching
movies. For example, I wrote how I was flying planes before driv-
ing and that sparked more conversations than anything else on my
resume.
Profile
to make investment recommendations to clients. They
spend their time scouring balance sheets, talking to com-
pany directors and participating in conference calls where
executives discuss their annual results and their expecta-
tions for the future. Researchers also analyze interest rates,
economies and other matters that might provide insight into
the proper valuation of financial instruments.
In recent years, researchers have had their share of bad
press. In 2002, New York Attorney General Eliot Spitzer
imposed total fines of $1.4 billion on 10 U.S. banks after
they were accused of producing research that was biased
in favor of their corporate finance clients. Two well-known
researchers, Henry Blodget of Merrill Lynch and Jack Grub-
man of Citigroup, were barred from the securities industry
for life.
Following the Spitzer investigation, the linking of research
to use of banks’ other services was banned and research
houses independent of the banks have sprung up as a
result. How successful those independent houses will
ultimately be remains an open question. Since researchers
aren’t any longer involved with attracting business to their
firm’s corporate finance departments, they’re paid less than
they were before, and fewer of them have jobs. And, some
banks have moved some research operations overseas, tak-
ing advantage of lower costs and qualified talent.
continued on next page
2005 Best All-America Research Team
Rank Firm
1 Lehman Brothers
2 Merrill Lynch
3 Morgan Stanley
4 Bear Stearns
5 Citigroup
5 UBS
7 JPMorgan
8 Sanford C. Bernstein
9 Banc of America Securities
9 Credit Suisse First Boston
9 Goldman Sachs
Source: Institutional Investor
14
Careers in Financial Markets 2006-07
Continued from previous page
At least one bank, Lehman Brothers, has reportedly pulled
analysts from traditional composition duties to dispense
their advice directly to client reps while sitting in the sales
room. While insiders say Wall Street has used such “desk
analysts” for years, recently they’ve been able to earn
larger bonuses by coming up with trading ideas the desk
can successfully execute.
Roles and Career Paths
Traders, salespeople and researchers can be categorized
according to the products they trade, the types of clients
they sell to, or the sector they specialize in. For example,
a trader might work with foreign exchange derivatives or
corporate bonds, while a salesperson might sell equities
to pension fund investors. A researcher might specialize
in analyzing the stock price of oil and gas companies. For
salespeople and traders in particular, advancement is all
about performance.
There are two fundamental types of trader. A handful of
elite traders—called proprietary traders—buy and sell on
behalf of the bank itself. But the majority are flow traders
who buy and sell financial products on behalf of their bank’s
clients. Salespeople tell flow traders what clients want to
buy and sell, and flow traders tell salespeople whether a
particular trade is possible at a particular price. Once a cli-
ent places an order, the flow traders must make the trade at
the agreed-on price. If they don’t act quickly and prices rise,
they must sell the product to the client at a loss. However,
if prices fall, the firm sells to the client at a profit.
2005 Best Equity Trading Desk – Nasdaq
Rank Firm
1 Lehman Brothers
2 Merrill Lynch
3 Morgan Stanley
4 Citigroup
5 Bear Stearns
6 Credit Suisse First Boston
7 UBS
8 Goldman Sachs
9 Banc of America Securities
10 Liquidnet
Source: Institutional Investor
2005 Best Equity Trading Desk – NYSE-Listed
Rank Firm
1 Lehman Brothers
2 Merrill Lynch
3 Citigroup
4 Bear Stearns
5 Morgan Stanley
6 Credit Suisse First Boston
7 Goldman Sachs
8 UBS
9 Liquidnet
10 Banc of America Securities
Source: Institutional Investor
15
www.efinancialcareers.com
Careers in Financial Markets 2006-07
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
• Work well under pressure
• Think on your toes
• Math aptitude
Research
• Innovative and decisive
• Ability to assimilate information and take an original
view
• Excellent communication and relationship skills
• Analytical ability and statistical aptitude
James Janesky, Managing Director, Ryan Beck & Co
How did you come to work in equity research?
I graduated from Penn State University in 1984 and worked for six
years at Macy’s before I returned to business school at the University
of Houston. I developed an interest in equity research between my
first and second year. I did an internship with Shell Royal Pension
Fund, and found it great to be interacting with executives at com-
panies and tracking fundamentals about stocks and investments. I
decided to work on the sell side, where we provide investment advice
to the buy side’s network of retail brokers and institutional investors.
I finished graduate school in 1993 and worked in research for several
firms before joining Ryan Beck.
What’s a typical day like for you?
My day can vary depending on the time of year. I typically follow 13
stocks. I spend my day doing due diligence on companies, comprised
of independent work and outside communications with companies.
Earnings season is a rigorous period and occurs four times a year. We
evaluate what companies have reported and evaluate the quality of
those earnings. In between top-line revenues and bottom-line earn-
ings per share, there may be any number of things we help interpret
for investors. Ultimately, we make decisions as to whether individuals
should buy, sell or hold a stock. We visit companies, conduct support-
ive research, speak at conferences, and attend them, too.
Primarily, I am interacting with clients. I spend a lot of time on the
phone and also visit clients several times a year. I interact with corpo-
rate managers and independent contacts to perform due diligence on
companies. Also, I write a lot. It’s the means by which we communi-
cate new information to clients.
What advice would you give to students hoping to break into
the business?
The most important thing for anyone is to have a passion for the
work. The hours are long. There is heavy travel. You have to make
difficult decisions, like missing birthdays and recitals. You must be
passionate to be a sell side analyst.
What do you think people should be reading?
To work in equity research, it’s critical to be reading financial pub-
lications such as The Wall Street Journal and the New York Times
business section. Since these publications won’t cover all types of
small-cap stocks, it’s important to read industry publications.
Profile
16
Careers in Financial Markets 2006-07
Quantitative Analytics
It’s about more than just numbers
Known to all in the industry as “quants,” quantitative ana-
lysts are highly sought after by investment banks and hedge
funds. Quants develop mathematical models and implement
statistical tools to assist in trading and risk management.
Once upon a time, quants consisted of Ph.D.s in physics or
mathematics with no formal training in financial engineer-
ing. With the growth of the derivatives industry and the
increasing complexity of the financial models used in the
markets, the aspiring quant can now choose from a number
of credible master’s and doctorate programs in mathemati-
cal finance, financial engineering or quantitative finance.
Another attractive academic qualification is computer
science. Programming skills, or a basic understanding of
computer language at the very least, are essential for many
quant positions.
“Quantitative finance is in essence a multidisciplinary
enterprise,” wrote Dr. Emanuel Derman, a professor at
Columbia University and director of its financial engineer-
ing program, in “Finding a Job in Finance,” published in the
May 2004 edition of Risk. “To be effective, you must learn
finance, mathematics and programming. If you can program,
you can always add value. If you can’t, you have to be a lot
smarter to earn your keep.”
There is a large demand for quants to work in statistical
arbitrage. Statistical arbitrage is a style of management
that employs complex statistical models that try to capture
small abnormalities in a security’s intraday return. Recruit-
ers say demand and pay for quant researchers is also set
to rise dramatically over the next year. “There is demand
for more and more quant researchers,” says Hemendra Rai,
leader of the quantitative trading and analytics practice at
recruitment firm Huxley Associates.
Roles and Career Paths
Can you break into quantitative analytics without an Ivy
League education? Deborah Rivera, founder of the New
York-based Succession Group, says this is actually one of
the few areas where your prospects are strong even if you
don’t have an Ivy League degree. It’s important, however,
that you have strong references from your professors.
Firms will also look at the quality and visibility of your
published work and its potential relevance to Wall Street.
“If you publish interesting work and develop the necessary
relationships, you may very well excel in this area,” Rivera
says. “But the references will be key.”
Rod Williams, a job market consultant with New York-
based Lee Hecht Harrison, agrees that solid references can
catapult a candidate over the preference for Ivy League
candidates, though having gone to a top school certainly
helps. “The top tiers definitely help open more doors,”
Williams says. “However, faculty members with great
credentials and who are highly thought of in the quant/risk
world can be a big help in securing interviews, especially if
the candidate has high marks.”
Williams says it’s also a big plus to have a work history that
relates to the field in which you’re interested. A job in front
office or operations, for instance, would make a candidate
more attractive.
“Quantitative finance isn’t mathematics or chess. It’s not a
field for brilliant idiot savants. It’s an attempt to model the
world or markets and people, and you need a little wisdom
and experience to know what can work,” says Derman.
Derman recommends that on top of academics, you
also learn the realities of the financial world. “Listen to
the people who live by their models. Go to practitioner
seminars and industry conferences,” he says. “Join the
Professional Risk Managers’ International Association, the
Global Association of Risk Professionals or the International
Association of Financial Engineers. Read The Wall Street
Journal and Risk, follow market rates and spreads.”
Being brilliant with numbers and intellectually curious
isn’t all you need to succeed. Firms are not just looking for
individuals with sizable brain power, but rather quants that
possess excellent communication skills and can interact
well with others in the business. A quant who can balance
the esoteric nature of his or her job with relating to the rest
of the business is an attractive candidate for advancement
into a management role.
Skills and Qualities
• Strong mathematical, programming and finance skills
• Ability to work in a fast-paced environment
• Keen intuition and excellent communication skills
18
Careers in Financial Markets 2006-07
Alternative Investments
The mysterious and megabucks world of hedge funds
The term hedge fund comes from the idea that money
managers can hedge their bets to ensure a profit regard-
less of whether the market goes up or down. For example,
a fund that invests in shares of Company X risks losing out
if the share price falls. To offset that risk, the fund might
buy an option giving it the right to purchase an agreed-upon
quantity of the company’s stock for a set price on a particu-
lar date in the future. If the option is set at a low enough
price, the fund will profit even if the stock’s price drops.
Why? Because the fund can buy the shares at a price below
the market, then resell them at market value to recover the
losses on its initial investment.
However, hedge funds aren’t
the only financial institutions
to employ hedging. Banks, for
example, do it every day. What
distinguishes hedge funds from
traditional fund managers is
their willingness to push the
boundaries of normal invest-
ment techniques to achieve
unusually high returns.
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 movements
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 po-
sitions. To counter this risk, some investors put their money
into funds of funds, which spread their money—and suppos-
edly, their perils—across several different hedge funds.
Although hedge funds have enjoyed impressive growth dur-
ing the early part of the 2000s, new money invested with
them has begun to decline. In part, this is because a variety
of other investment vehicles have become available. For ex-
ample, investors can now take advantage of private equity,
long-only funds, which offer competitive returns with lower
management fees.
Despite posting the biggest-ever gain in assets under
management in 2006’s second quarter, there are hints
hedge funds may be losing
their allure when it comes
to attracting staff. During
the summer, a number of
media outlets reported on
traders and fund managers
who returned to traditional
investment banks after
leaving to dip their toes
in the hedge-fund waters.
One recruiter commented
that most junior bankers
now prefer to spend time in
the corporate world before
moving to a hedge fund.
“Hedge fund jobs used to be
a big selling point,” he says.
“But people now are saying
they want a big name bank
on their CV for two or three
years at least.”
In addition, some recruiters
speculate that a round of consolidation is in store for hedge
funds, which has led to a slowdown in hiring.
Roles and Career Paths
Jobs in hedge funds tend to fall into four categories:
• Analysis: Analyzing the companies, markets and finan-
cial products a hedge fund invests in.
• Sales and Marketing: Meeting with investors to help
sell the strengths of the fund.
• Trading: Executing the investment strategy, buying and
selling financial products according to analysts’ recom-
mendations.
What distinguishes
hedge funds from
traditional fund
managers is their
willingness to push
the boundaries
of normal invest-
ment techniques to
achieve unusually
high returns.
There are hints
hedge funds may be
losing their allure
when it comes to
attracting staff.
19
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Careers in Financial Markets 2006-07
Steven Marotta,
Research Analyst, Wyper Capital Management
What is it like working for a hedge fund?
It’s hard to generalize because every firm is different. The atmosphere
of hedge funds are largely dictated by the personalities that control
them. Here, there is one decision maker. At other funds, the deci-
sion-making process could be more collaborative. The ease at which
stocks are moved in and out of the portfolio is determined by how
much confidence the decision maker has in the person making the
recommendation. If I pick a bunch of right things, have a hot hand,
that tends to build confidence – and, at times, vice versa.
What skills are important to be successful as a stock analyst
in this business?
I think it’s important to have a high degree of familiarity with the
names you are responsible for, to have a depth of knowledge of spe-
cific firms. Solid modeling skills are important to discovering the levers
in a company’s operating model. However, at the end of the day, it can
be garbage in, garbage out if your assumptions aren’t accurate.
Interpersonal skills also are very valuable. You must have the ability
to communicate your ideas, to get along with the people you work
with, and to rise to challenges when necessary. When you are pitch-
ing a name, you will be challenged on it. So you have to be prepared,
and you can’t be a shrinking violet. That is something I underestimat-
ed coming to this side of the business. You must have the information
at hand to back up your recommendations.
While I can’t speak for what happens at other funds, I think that if there
is common denominator for stock analysts, it would be that you must
be able to stand up under fire and have the conviction that your recom-
mendation is the right one for what your firm wants to accomplish.
What advice would you offer to students?
Get good grades…and go to class. The pedigree of the school
helps, but if you aren’t in one of the top schools, getting a job with
a marquee name early would help. If I had to do it over again, I’d
have tried to begin my career on the buy side at a well-known shop
such as Soros or Fidelity. It may have allowed my career to advance
at a quicker pace. Not everyone can work at those types of firms, of
course, so whatever situation you land in, make the best of it. Devel-
oping a network helps, too.
Control your destiny by knowing what to do: Don’t be arrogant, don’t
turn people off, and think in terms of what you can deliver for some-
one who can possibly hire you.
Profile
• Risk Management and Back Office: Settling trades,
working out a hedge fund’s risk exposure and making
sure everything flows smoothly. Many small funds
outsource 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.
The bad news is that hedge funds rarely take graduates
fresh out of school. Most are small organizations without
the time or resources to train graduates themselves. In-
stead, they prefer to hire them away from investment banks.
Skills and Qualities
• Math aptitude
• Adaptability
• Creativity
Top 10 Hedge Funds Ranked By 2005 Return
Fund Name Return % Assets $m
Dejima Fund Ltd 264.4 92.1
Gazinvest Fund 237.8 20.3
Prosperity Quest Fund 172.2 64.4
Phalanx Japan AustralAsia
Multi-Strategy Fund Ltd 152.0 5.0
Blue Sky Japan LP 142.9 571.4
Russian Prosperity Fund (Euro) 136.8 81.7
Prosperity Cub Fund 133.9 167.2
Russian Prosperity Fund USD (A) 131.9 586.0
Russian Prosperity Fund (C Shares) 128.6 454.1
Vision Opportunity Master Fund Ltd 124.9 12.3
Compiled by MARHedge
Source: The Barclay Group
Register today!
Please contact Jeannie Lee at +646.274.6213 or jlee@marhedge.com
Peter Fletcher, Parly Company SA
Stewart Massey, Massey, Quick & Co LLC
Stanley Pantowich, TAG Associates LLC
Jane Abitanta, Perceval Associates
Louise Wasso-Jonikas, Angelo, Gordon Advisors LLC
Keith Rosenbloom, CARE Capital Group
Petek Kutucuoglu, GEM Global Equities
Management S.A.
E. McClain Bradley, Eno Farms Inc.
Fred Fruitman, Loeb Partners Corp
Stan Kowalewski, Fund of Funds Group,
Columbia Partners LLC Investment Management
Harlan Peltz, Peltz Capital Management LLC
Suzanne Murphy, Acorn Partners
StormBoswick, Brompton Cross Capital
Matthew Hoffman, Mayer & Hoffman
Capital Advisors LLC
Anthony Scaramucci, SkyBridge Capital LLC
Hugh Lamle, M. D. Sass Investors Services Inc.
Francois Bloch, Amas Bank
Russ Prince, Prince & Associates
Arthur Bavelas, Resource Network LTD
Edward Renn, Withers Bergman LLP
John Bailey, Spruce Private Investors LLC
Gordon Haave, Investment & Consulting Group,
Asset Services Company
Heidi Steiger, Lowenhaupt Global Advisors
Mike Murgio, Asset Management Advisors
Peter Tobeason, J.H. Whitney Commodity and
Macro Trading Advisors LLC
Peter Panayiotou, Gulf Finance House
Eric Meyer, Shariah Capital,
A Division of Meyer Fund Management LLC
Suzy Peterfriend Ross, FamilyLegacy Inc.
Guy Benstead, Cedar Ridge Partners LLC
KEYNOTE SPEAKER
JimO'Neill, Head of Global Economic Research, Goldman Sachs, London
SPEAKERS INCLUDE:
MARHedge World
Wealth Summit 2006
13th Annual International Conference on Hedge Fund Investments
October 22-24, 2006 • Southampton Fairmont, Bermuda
MARHedge World
Wealth Summit 2006
21
www.efinancialcareers.com
Careers in Financial Markets 2006-07
Corporate Banking
Some see consolidation, others opportunity
Corporate banking is the broad term given to the banking
services that large companies, governments or other big
institutions need in order to function from day to day.
These services range from the relatively simple business
of issuing loans to more complex matters such as helping
to minimize taxes paid by overseas subsidiaries, managing
the impact of foreign exchange rates or determining how to
finance the construction of a new theme park. Many institu-
tions offer corporate banking customers services to support
retirement plans, benefit plans and payroll.
If a company exports its
products, corporate bankers
might also arrange a process
of international payment or put
together trade finance packages
that help ensure the firm is paid
by its foreign customers.
Often, the roles of corporate
bankers and capital markets
specialists overlap. Bankers
working in capital markets help
companies raise money by issuing equities or debt. Corpo-
rate bankers typically help clients obtain money through
loans. Neither specialty works in a vacuum, and corporate
bankers will bring in the expertise of their capital markets
colleagues when it’s necessary to serve the needs of their
customers.
Increasingly, corporate banking requires an understanding
of complex financing methods, such as securitization – in
which a company sells bonds based on the money it expect
to earn in the future from assets like rented shop space
or a back catalogue of popular music. Some institutions
organize teams of bankers around specific areas of industry
expertise. Bank of America, for example, says it leverages
the knowledge of in-house of industry experts with product
specialists “to deliver customized financial solutions.” The
notions of customized service and specialized expertise are
common among corporate banks.
In the past five years, the sector has changed considerably
as participants look to become bigger as a way to better
compete. Some banks have sought to strengthen their
services through consolidation. Others, such as the Royal
Bank of Scotland, have added staff and other resources
to take advantage of what they perceive as significant
opportunities in the corporate banking marketplace. (In fact,
European banks recruited more than 3,600 corporate and
investment banking staffers during the first eight months of
2006 to strengthen their businesses and maintain surging
profits.)
Roles and Career Paths
While the career path for corporate bankers can vary from
institution to institution, many start out working as credit
analysts. These folks spend
their time reviewing the
balance sheets of clients,
and prospective clients, to
determine whether they’re
likely to pay back any loans
that are made to them.
From the credit analyst’s
chair many bankers move
up to the ranks of relation-
ship managers, who are
responsible for making the
actual lending decisions
for a relatively small group of customers. The job requires
an intimate understanding of each client’s strategy, and a
strong appreciation of the risks of default.
Not interested in relationship management? Then consider
treasury management. Professionals in this area help busi-
nesses make sure they have the cash flow to pay for goods
and services and help navigate fluctuations in the value of
their foreign currency holdings. To do this, banks provide
services to streamline and manage deposits and disburse-
ments, manage cash and minimize fraud.
Corporate banks also offer positions in operations, including
such areas as technology and human resources. Various
banks—including Citigroup, Goldman Sachs, UBS and
HSBC—offer training in corporate banking.
Skills and Qualities
• Analytical ability and statistical aptitude
• Strong communication skills
• Ability to grow and maintain client relationships
• Demonstrable drive
Services range
from issuing loans
to determining how
to finance the
construction of a
new theme park.
Increasingly,
corporate banking
requires an under-
standing of complex
financing methods.
22
Careers in Financial Markets 2006-07
Foreign Exchange
Not for the faint-hearted
Sometimes referred to as “forex” or “FX,” the foreign
exchange market is all about converting one currency into
another and studying global events in order to predict
fluctuations in exchange rates.
Have you ever bought a foreign currency before going on an
overseas trip, only to find its value dropped by the time you
arrived? If you have, you’ll appreciate the need to keep an
eye on the relative value of currencies. The challenge faced
by banks and their clients is similar, though measured on a
much larger scale. For example, a U.S.-based company that
holds hundreds of millions of euros could face huge losses
if the euro drops even minutely against the dollar.
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 their clients to sell the falling currency and buy the
one that’s appreciating. It’s a simple variant of the market
maxim “buy low, sell high.”
Currencies themselves are traded on what’s called the
spot market. Along with them are products called futures,
which allow investors to, basically, predict the future
direction of foreign-exchange price movements. Futures fall
into the class of assets called
derivatives, which are contracts
whose value is based on the
performance of an underlying
financial asset, index or other
investment.
Over the last few years, the
big foreign-exchange story
has been the weakness of the
dollar, which lost ground consis-
tently against the euro from
mid-2002 to March 2005. In
the later part of the year, the
currency regained ground as the
Federal Reserve raised interest rates, and so made it more
attractive for international investors. By the middle of 2006,
a number of Wall Street firms were introducing products for
individual investors who wanted to invest in foreign curren-
cies as a hedge against the weak dollar.
Meantime, the market was expanding, with the consult-
ing and research firm Greenwich Associates reporting
that global currency trading
volume rose nearly 14 per-
cent during 2005 compared
to 2004.
Although recruiting efforts in
FX were modest in 2006, with
some observers saying activ-
ity was more about upgrading
than wholesale expansion or
change, several banks were
building their teams. These
included Bank of America,
which was completing a build
out begun in 2005, and Dresdner Kleinwort Wasserstein,
which was committed to growing its 150-person FX staff by
10 percent. In addition, investment banks, asset managers
and hedge funds were hiring FX professionals to work the
currencies of emerging markets. Merrill Lynch and HSBC
were both reported to have hired emerging market foreign
exchange professionals during 2006, and many banks see
the area as one with strong growth potential.
In FX, professionals
focus on trading
currencies and their
derivatives instead
of bonds and
equity products.
Many banks see
emerging markets
foreign exchange as
being an area with
strong growth
potential.
Best Bank in FX in North America
Rank Total votes* Banks Corporates Investors
1 Citigroup Citigroup Citigroup Citigroup
2 JPMorgan JPMorgan JPMorgan BoA
3 BoA UBS BoA JPMorgan
4 UBS BoA BNY RBS
5 BNY BNY ABN Amro Goldman Sachs
*The companies listed under this column are placings for overall votes. These
were compiled from the 2,639 respondents of the survey. Placings listed to the
right detail the voting in separate client segments.
Source: fxweek.com
Best Bank for FX Research & Strategy
Rank Total votes* Banks Corporates Investors
1 JPMorgan UBS HSBC JPMorgan
2 UBS JPMorgan JPMorgan UBS
3 HSBC Citigroup UBS Goldman Sachs
4 Citigroup HSBC ABN Amro HSBC
5 Goldman
Sachs
Goldman
Sachs
Citigroup Citigroup
23
www.efinancialcareers.com
Careers in Financial Markets 2006-07
Advances in technology have made much of the work
involved in FX more efficient. Computers have replaced
fax machines for communications purposes, for example,
with their capabilities for e-mail and instant messaging.
In addition, FX instruments have grown more creative and
complex.
Roles and Career Paths
Like the capital markets, the foreign exchange markets
make use of salespeople, traders and researchers. In FX,
however, professionals focus on trading currencies and
their derivatives instead of bonds and equity products.
FX trading jobs are usually split between vanilla trad-
ing—where products are simple and trades easy to ex-
ecute—and more complex derivatives trading. As in other
sectors, sales jobs are usually divided between client types,
with some salespeople specializing in hedge funds and oth-
ers selling only to corporate clients. Researchers produce
written reports used by the salespeople to keep clients
informed of market developments and their impact.
If you specialize in FX, you also could become a structurer
who assembles complex, exotic derivative products for
clients.
Skills and Qualities
• Understanding of geopolitical events and
macroeconomics
• Quick thinking with a good awareness of how
markets work
• For FX derivatives: reasonably strong math aptitude
• For structurers: patience and communications skills
Rebecca Patterson, Global Currency Strategist,
JPMorgan
Would you tell us about your role and career path?
I am part of a small team in charge of creating currency forecasting for
JPMorgan. My role involves research, interaction with the firm’s cli-
ents and working internally with our sales and trading professionals.
I also represent the bank to the general public, through both speaking
engagements at conferences and in communication with the press.
Before coming to JPMorgan I worked as a journalist, covering the
financial markets and public sector. I studied journalism at the
University of Florida, and later attended the School of Advanced Inter-
national Studies at Johns Hopkins. I later earned my MBA, studying
part-time at NYU’s Stern School of Business.
What’s a typical day like for you?
Generally, I work from about 6 a.m. to 6 p.m. I come in and read up
to see what happened in the markets overnight. I’ll look for anything
that may present a trade idea. I’ll look for anything that may change
my broader views.
At about 7:15, I’ll lead our Hoot, which is our internal intercom sys-
tem. We’ll discuss with colleagues around the bank globally, via the
Hoot, what we expect to happen in the day ahead.
Each day can be different. There are data releases and often sur-
prises. We’ll seek out trade ideas around those numbers, then we’ll
call clients. We’ll also have calls with colleagues to discuss different
views. There may be a presentation with a client. The challenging
thing about the job is that markets are always evolving, so you never
figure everything out. You can only hope to stay aware of how the
markets change, stay ahead of the curve. You never get bored in this
business.
What should students be reading?
Everything they can. I am a news junkie. I read The Wall Street
Journal and the New York Times online daily. The Economist is my
Bible on weekends. It’s important to keep up with what’s going on
in the world – not just the dollar versus the yen, but broader, global
economic issues.
Markets are highly interrelated, so you have to be able to understand
the equity, bond and commodity markets and how they each could
impact currencies. Policymaking is also important, as indirectly it can
influence portfolio and trade flows that in turn drive currencies. You
must have a natural curiosity about the world, which involves reading
and asking lots of questions.
Profile
24
Careers in Financial Markets 2006-07
Private Banking
For financial markets diplomats with in-depth product knowledge
Private bankers help rich people manage their money as
privately and discreetly as possible. Their clients can
be anyone from chief executives to property tycoons,
investment bankers to professional athletes, pop stars to
members of a privately run family business. As different as
these clients may be, they all have one thing in common:
They’re extremely wealthy. Typically, private banks seek
customers with at least $1 million to invest, but many only
accept those whose financial assets are worth more than
$30 million.
A private banker’s main role is to help clients manage their
money by investing wisely and avoiding risks that might
reduce the value of their assets. They also offer tax and
pension advice, help develop strategies for philanthropy
and offer guidance on estate planning.
Today, the job of private banker is becoming increasingly
complex. The array of potential investment products is
widening, the markets are becoming more volatile and the
impact of the economy’s ups and downs is often more diffi-
cult to predict. More wealthy clients are investing in hedge
funds, which bring their own set of nuance and dynamics
to the wealth-management world. The financial products
available—such as international equities, fixed income
products, derivatives and real estate investment trusts
(REITS) to name just a few—are far more sophisticated
then they were 10 years ago.
To succeed in this environment, private bankers need an
understanding of financial products from basic stocks and
bonds to complex derivatives. They must get to know their
clients personally and be capable of delivering frank, care-
fully considered advice to people who are often financially
sophisticated in their own right – as well as strong-willed
and sure of their convictions.
Roles and Career Paths
Private bankers work primarily in three areas: They invest
money for existing clients, they build relationships, or
they manage back-office functions like human resources
and accounting.
On the investment side, private bankers either personally
manage their clients’ portfolios or offer detailed advice to
help them do it themselves. In this area, most private bank-
ers are product specialists who share their expertise in a
particular asset class, such as bonds or derivatives.
Those working on the relationship side are essentially
salespeople. They spend their time building connections
with clients as a way to sell their bank’s services. They of-
ten travel to meet clients and prospective clients, and strive
to demonstrate their bank’s commitment to its customers.
Once a relationship banker has established the client’s
needs, investment specialists come in to create detailed,
specific solutions to meet them.
A decade ago, most private bankers combined the invest-
ment and relationship roles. While that’s still the case in
some organizations, in most banks the industry’s increasing
complexity has led to a separation of the two.
Many large investment banks—such as Goldman Sachs
and UBS—run graduate training programs for private
bankers. Most private bankers are accepted into a training
program, which run for at least one year. If you don’t find a
place in such a program, you might move into the sec-
tor after getting experience in corporate finance or, more
particularly, fund management. Many people entering the
field have MBAs, and communication skills and a strong
knowledge of financial products are keys to success.
Skills and Qualities
• Discretion and trustworthiness
• Excellent customer service skills
• Knowledge and understanding of financial markets
Global Private Banking Managed Assets First Half 2005
Institution AUM $bn
UBS 1301.0
Merrill Lynch Global Private Client Group 1040.0
Credit Suisse 520.6
JPMorgan Private Bank 300.0
Deutsche Bank 187.0
HSBC Private Banking 183.2
Citigroup Private Bank 177.0
Wachovia Wealth Management 155.1
ABN AMRO Private Banking 150.8
Goldman Sachs 140.9
Source: Scorpio Partnership
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26
Careers in Financial Markets 2006-07
Operations
The unsung, largely hidden heroes of investment banking
An investment bank’s operations division is known as the
back office. Unlike the traders, sales people, bankers and
corporate financiers in the front office, the operations staff
doesn’t work with customers to generate revenues and
profits. Instead, it provides support functions throughout
the bank, making sure everything from computer systems to
hiring works smoothly, that the firm is effectively manag-
ing its risk, and that its invoices go out and its receivables
are collected. Indeed, the division’s functions are so broad,
staffers typically specialize in a single area, such as human
resources or information technology.
At the division’s core is the function of clearing and settling
trades. This involves examining the records of traders to
make sure they match
the buy and sell orders
kept by the “counterpar-
ties,” the people with
whom a particular trans-
action was executed.
Ensuring that stocks
or shares bought and
sold by traders are
exchanged for the cor-
rect amount of money is
called “settling” a trade.
People who do this
work in an area called
“settlements.” Their
jobs include everything
from preparing the docu-
mentation required for a
sale to making sure the
bank has either paid for
all the shares it bought,
or been paid for all the
shares it sold.
The growing complexity and shear volume of trades—es-
pecially of derivatives, debt and exotic instruments—has
given clearing and settlement staffs as much respect and
attention as the frontline trading desks. In addition, as
many operations specialists mature, opportunities are open-
ing up for professionals in junior roles.
If operations isn’t where banks
make their money, it’s certainly
an area where they can lose
it. The more efficient a bank
is at conducting its business,
the greater the percentage
of revenue that goes to the
bottom line. Because of this,
banks are both seeking a higher
caliber of employee to work in
operations, and shifting simple
elements to lower-cost loca-
tions like India, China, Russia
and Scotland.
Along with this move offshore has come an increased
reliance on technology. Twenty years ago, clearing and
settlements were labor-intensive tasks involving a lot of
forms and enormous filing systems. Today, they’re largely
handled by computerized systems such as CHIPS, Fedwire
and the Depository Trust and Clearing Corporation (DTCC),
which hold securities in electronic form and transfer them
electronically.
This increased use of
technology and the grow-
ing trend toward offshoring
doesn’t bode well for careers
in operations. On the other
hand, the jobs left behind
tend to be more interesting
and better paid.
A particularly notable area
is hedge fund operations, or
prime brokerage. These are
the back offices for hedge
funds, offering everything
from clearing, settlement and
custody facilities to assistance in managing relationships
with investors and raising new funds. In large investment
banks, prime brokers can earn generous compensation.
Roles and Career Paths
Today, exception managers have the primary role in the
clearings and settlement department.
Operations provides
support functions
throughout the bank,
making sure everything
from computer systems
to hiring works smoothly,
that the firm is
effectively managing
its risk, and that invoices
go out and receivables
are collected.
If operations isn’t
where banks make
their money, it’s
certainly an area
where they can
lose it.
27
www.efinancialcareers.com
Careers in Financial Markets 2006-07
When data in the electronic systems don’t match, exception
managers are the ones who work out the reasons behind
the discrepancy. They talk to traders who claim to have sold
shares for $3 when the buyer reports the agreed-on price
was $2, or chase payments from a recalcitrant overseas
buyer who denies a trade ever took place.
While electronic systems have dramatically increased the
speed at which simple trades are processed, derivative
trades are often too complex to be settled electronically.
Many tasks in settling derivatives trade are still done manu-
ally—trades are often confirmed by fax, for example—and
the large number of documents involved creates roles for
documentation specialists. The sheer unwieldiness of these
tasks, however, is putting strong pressure on the industry to
adopt more automated solutions.
Despite their detail-oriented nature, most operations jobs
have a strategic element to them: Investment banks use
operations to analyze ways of making processes more
efficient. It falls to project managers to implement new
systems and new approaches. If you stick with operations,
at some point you’ll likely work in some kind of strategic or
project management role.
Skills and Qualities
• Deal with conflicts firmly and efficiently
• Strong analytical and problem-solving skills
• Attention to detail
• Good organization and time-management skills
Brian Urkowitz, Global Transactional Client Services,
Merrill Lynch
What’s a typical day like for you?
It usually begins with 30 minutes of catch-up on e-mail or a morning
meeting. There can be conference calls with other regions. Today, it
was with Europe about business growth.
Then, I had breakfast with our summer analyst program from Dart-
mouth. As an alumni, I was able to arrange for a group of undergradu-
ate students to work here. For the next hour and a half I had a client
services management meeting. This session gathers the global Client
Service team together to discuss strategy and client issues.
I will spend about an hour and a half catching up on calls and e-mail.
I’ll have an hour meeting with the team to review metrics about
clients and vendors, data that will tell us how about how we interact
with our clients, what goes well and what needs improvement. Next,
we’ll have one-to-one meetings with each client service functional
head about controls. At 4 p.m., I reviewed the technology efforts for
our prime broker business. Later, there is a conference call about a
specific client request.
How does your role now compare with earlier in your career?
The biggest change is that earlier in my career I knew every transac-
tion that my team was involved with. Now, I am at a point where
I don’t worry about specific transactions unless things go wrong.
Instead, I worry about what the business will want in the next six
months or year, and whether we are positioned to deal with it.
Until recently the challenge of an operations manager was to do it
cheaply without sacrificing controls. More recently, clients have told
us that operations is now an important factor in how they decide to
do business. They want us to do it at the right price, but with greater
concern about service. That has made our work a high priority in the
company. So, the changed emphasis on the importance of operations
is a great thing for our business.
What advice would you give to junior staffers or students?
The biggest thing is to be able to look at how things are done and
ask why and can it be done more efficiently. Any big brokerage house
has many processes that are 10 or 20 years old. They work very well
and are very reliable. We rely on our junior team members to be able
to critically analyze processes and recommend improvements, or to
engage senior managers to make necessary changes to increase our
level of quality. It’s important to always question whether or not there
is a better way to do something.
Profile
28
Careers in Financial Markets 2006-07
Fund Management
A game of patience, profits, and pension funds
Fund managers are professionals who invest money
on behalf of clients including pension funds, insurance
companies and unit trusts—otherwise known as institu-
tional investors—with a view toward making it grow. They
approach their work with a long-term view, buying financial
products in the hope their value will rise over time.
In this world, there are two kinds of funds. First are the pas-
sive funds, sometimes called index trackers, which follow
the rises and falls of a financial index. Typically, computers
make the investment decisions for these funds.
When most people think of fund management, they tend to
think of active fund managers, who buy and sell financial
products themselves, investing in instruments whose price,
they believe, will rise over time. These funds invest in
everything from stocks and bonds to real estate and com-
modities such as oil, wheat and aluminum. Different clients
tolerate different amounts of risk, so fund management
firms usually run several funds at one time. Some offer fast
growth (with higher risk), while others offer slower growth
(and less risk).
Most large investment banks have their own fund-manage-
ment divisions, though these units have been pressured in
recent years. In 2005, Citigroup sold its asset-management
business to Legg Mason after it generated disappointing
results, and Deutsche
Bank sold a major part of
its business to Aberdeen
Asset Management
after senior staff left and
clients started withdraw-
ing money.
On the other hand, in
early 2006 half of the
chief executives of global
investment companies
surveyed said they ex-
pected revenues to grow
by a more than a fifth
over the next three years.
The PricewaterhouseCoo-
pers Global Investment Management Survey found that 55
percent of the CEOs expected revenue growth of 20 percent
or more during that timeframe. U.S. investment firms were
less bullish, with 35 percent expecting revenue growth of
20 percent while two-thirds forecast growth of 5 percent to
19 percent. Whatever their outlook, retaining talent ranked
as one of the executives’ top concerns, both in the U.S.
and internationally. U.S. firms were more likely to use both
short-term and long-term incentives to recruit, retain and
motivate portfolio managers.
Roles and Career Paths
Fund managers focus on the business of managing. How-
ever, fund management companies also need marketers,
research analysts and operations experts.
Marketers wine and dine potential clients and persuade
them to invest money with their fund. They manage
relationships with
existing clients,
meet investment
consultants to
promote their firms,
and play a role in
the development of
new products.
Analysts help fund
managers choose
assets to invest
in. They spend
their time studying
companies’ results
and meeting with
the senior manage-
ment of businesses
the fund might in-
vest in – or already has a stake in. Then they write lengthy
reports to communicate their conclusions.
Professionals in operations do everything from develop,
implement and manage information systems to settle and
report trades, manage projects and handle customer ser-
vice. However, many funds have outsourced the administra-
tive aspects of their operations to global custodians.
The career path for someone interested in fund manage-
ment should start with a college major in economics, and
In early 2006, half of
the chief executives of
global investment
companies surveyed
said they expected
revenues to grow by a
more than a fifth over
the next three years.
continued on page 31
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think
Literal or lateral - the test
A simple vowel sets the two words apart, yet the
difference in their meanings is paramount.
The literal thinker stops at the obvious solution. But for the lateral mind,
the obvious is merely the start.
In the world of finance, the way you approach a problem could determine
the career path you take. And working out the answers to these six
conundrums could well be the start of you finding your way.
One.
Cut a 100 metre length of rope into 2 metre lengths. How many cuts do
you make?
Two.
A 10-foot rope ladder hangs over the side of a boat with the bottom rung
on the surface of the water. The rungs are one foot apart, and the tide
goes up 6 inches per hour. How long will it be until 3 rungs are covered?
Three.
Three switches outside a windowless room are connected to three light
bulbs inside the room. How can you determine which switch is connected
to which bulb if you may enter the room only once?
Four.
Take two apples from five apples and what do you have?
Five.
The day before yesterday, Jenny was 17 years old. Next year, she'll be 20
years old. How is this possible?
Six.
You’re all alone in a deserted house at night and you only have one match,
a lamp, a fire and a candle. What do you light first?
Now you’ve worked them all out, turn the page
to see if you’re right.
Literal or lateral - the answers
One.
49.
Two.
Never, the boat rises with the tide.
Three.
Switch one light on for a minute; turn it off and turn another on.
Go into the room and feel the off-bulbs. The warm one is connected
to the first switch and the on-bulb is connected to the second.
Four.
Two apples.
Five.
Today is January 1st. Her 18th birthday was on December 31st.
This year she'll be 19; 20 next.
Six.
The match.
At Barclays Global Investors, we offer unrivalled
career opportunities in the financial arena to
those who take problem solving to its extreme.
We’re constantly challenging old rules and creating new ones.
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and one of the world’s top ten active fund managers with $1.6 trillion
worth of assets under management. We have over 2,500 employees,
2,800 clients and 11 offices worldwide.
Our development program will give you the chance to contribute your
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31
www.efinancialcareers.com
Careers in Financial Markets 2006-07
Richard P. Cervone, Portfolio Manager,
Putnam Investments
What’s a typical day like for you?
There are two kinds, but both are focused on taking information. The
first is a day in the office. I’ll read the current day’s news to see which
companies reported earnings. Then, I’ll meet with analysts to discuss
which stocks seem worth buying. Companies often come and visit us.
I spend a lot of time looking at financial statements. I’ll read annual
reports, and talk to my partner on the fund, Jim Wiess, about short-
term events that are happening at a company.
The second type of day is one where we’re traveling to different
companies. We meet with a variety of companies, talking to the chief
executive officer, the chief operating officer and the heads of different
business units. We also visit the stores themselves, to get an idea of
what they’re like and how they deal with customers, etc.
What advice would you give to students?
Take courses in finance and anything that teaches you about the valu-
ation of companies. Also, take a broad range of courses in areas such
as marketing and strategy, because they’ll teach you to evaluate man-
agement decisions and how they impact the top and bottom lines, as
well as how the businesses operate. Learn as much as you can about
business on your own. And, it’s important to communicate a high level
of enthusiasm when looking for jobs at mutual funds.
What should people interested in this sector be reading?
I tell people to read major newspapers such as the Financial Times,
the New York Times and The Wall Street Journal. If you have an inter-
est in a specific industry, read trade publications that cover them. It
can be tough to keep up with all of them, so pick a few areas to gain
an edge or better understand an industry. Also, read company-specific
information, such as 10-K and 10-Q filings and annual reports. These
will help you make independent judgments about companies. The
tough part is cutting through the clutter and getting to what is most
pertinent.
Any other thoughts?
A career at a mutual fund is a wonderful career. I enjoy the balance of
working with people like my partner, or speaking directly to company
management. It involves a lot of quantitative work, like working with
financial statements, numbers. But there’s also a “street corner”
aspect to the business. I enjoy going into retail stores and seeing how
they do business and learning about their operations. It helps to con-
nect all of the dots when assessing a company’s business.
Profile
continued from page 28
then possibly an MBA. Starting off as a buy-side analyst is
a good first step into the working world: It’s important to
have good analytical skills and use them to focus on a sec-
tor you can cover to create expertise.
Skills and Qualities
• Understanding of how the financial world operates
• Ability to assimilate information and pick out key
points
• For researchers, an inquiring mind
• For marketing experts, excellent communication skills
Top Ten Largest Asset Management Firms
Rank Company AUM $bn
1 Barclays Global Investors 1,400.5
2 State Street Global Advisors 1,367.3
3 Fidelity Investments 1,299.4
4 Capital Group Companies 1,050.4
5 The Vanguard Group 852.0
6 Allianz Global Investors 790.5
7 JPMorgan Asset Management 782.6
8 Mellon Financial Corporation 738.3
9 Deutsche Asset Management 723.4
10 Northern Trust Global Investments 589.8
Source: Global Investor Magazine
32
Careers in Financial Markets 2006-07
Investment Consulting
Strategic advisors to—and scrutinizers of—fund managers
Investment consultants advise investors such as pension
fund trustees on what to do with their money. They help
their clients determine a proper asset allocation for their
goals, and identify appropriate fund management firms with
whom they might invest their money. In the process, they
look at the fund managers’ track records and try to predict
how they will perform in the future, knowing that strong
returns over the past decade don’t guarantee a fund will
avoid a fall in value during the next 12 months.
To avoid turbulent stock markets, many investment consul-
tants have advised clients to switch money away from equi-
ties into bonds and higher risk alternatives such as hedge
funds. Hedge funds aim to produce positive returns in both
falling and rising markets.
Some of the larger investment consulting firms include
Watson Wyatt, Mercer, Wilshire Associates, Frank Russell
Co., Callan Associates, BARRA RogersCasey, Evaluation
Associates and Capital Resource Advisors. Each hires an
average of six to 12 new graduates per year.
Recently, the sector has been pressured by competition
from investment banks, changes in pensions and the cost of
expanding research departments. To avoid the appearance
of conflict of interest, many consultants have stopped offer-
ing lucrative advice to asset managers.
Roles and Career Paths
Jobs in investment consulting usually fall into one of two
general categories: asset allocation and fund selection.
Asset allocation specialists advise clients whether to invest
in equities, bonds, private equity funds or alternative asset
classes. For pension fund trustees, this means helping
ensure the investments generate the returns necessary
to pay pensions over the next 30 years or more. Theirs is
a complex role that involves examining economic factors,
such as interest rate changes, as well as the timing of the
pension fund’s liabilities (or pay-outs) and the likely risks
and returns associated with each type of asset. To help
do all this, asset allocation specialists create mathemati-
cal models that forecast how a client’s money should be
divided among asset classes.
Fund selection specialists analyze individual fund manag-
ers and ask questions about their investment strategy.
They scrutinize particular funds and write reports on the
strengths and weaknesses of each. Most investment
consulting firms produce confidential lists that rank each
fund manager according to his or her likely success going
forward.
Both fund selection and asset allocation also have relation-
ship specialists, who are the sector’s true consultants.
While many specialists work in research and focus on a
particular type of fund or investment product, relationship
specialists tend to be generalists. They often have a more
senior role, since
investment-consul-
tant staff members
typically begin their
careers in research
and move into
client-facing roles
only as they gain
more experience.
Most large invest-
ment consulting
firms take on graduates. At some point, you’ll have to earn
a professional qualification such as the Chartered Financial
Analyst (CFA).
Skills and Qualities
• Analytical ability and statistical aptitude
• Team-working prowess
• Ability to grow and maintain client relationships
• Powerful reasoning skills
At some point,
you’ll have to earn a
professional qualification
such as the Chartered
Financial Analyst (CFA).
Our ambition:
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at what we do
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34
Careers in Financial Markets 2006-07
Private Equity
Requirements: experience or an MBA
Like the capital markets divisions of investment banks,
private equity funds raise money for companies in need of
cash. But while bankers do this by selling a firm’s stocks or
bonds, private equity funds do it by offering cash to busi-
nesses in exchange for an ownership stake. They become
co-owners, or even sole owners, of the companies in which
they invest.
In ideal situations, they invest in underperforming compa-
nies, turn them around, and sell their stake at a profit some
years later. Sometimes private equity companies engage in
asset stripping, or breaking up a
business and selling its assets
separately.
The money invested by private
equity funds is frequently
used for management buyouts
(MBOs), where a company or
one of its divisions is bought
by its managers. Alternatively,
the funds may be used for a
management buy-in (MBI),
where managers from outside
take over a firm.
Venture capital and private
equity are often used inter-
changeably. But strictly speak-
ing, venture capital refers to the
funding of new and developing
businesses, while private equity is more often associated
with MBOs and MBIs.
The private equity industry is booming due to the lack of
trade buyers and the relative ease with which private equity
firms can sell their investments at a profit. Usually, trade
buyers bid against private equity funds to buy underper-
forming rivals, but recently they have been doing this
less often.
Two other factors are contributing to the boom, says one
general partner of an equity/venture capital fund: First is
the relative ease of finding low-cost debt financing – which
typically makes up 50 to 70 percent of a transaction’s total
purchase price. Second is the fact that institutional and
retail investors have provided unprecedented amounts of
capital to private equity funds as a way of diversifying their
investment portfolios. Recently, private equity returns have
reached over 30 percent annually.
Folks in PE like the sector’s creativity, independence and
lack of bureaucracy. Because private equity firms tend to be
small, juniors can benefit from a flatter, more intimate work
environment than they’d find at a large investment bank.
Roles and Career Paths
People who work in private equity can make huge amounts
of money. They also benefit from the kind of job security
most investment bankers only dream of. But don’t count
on finding a job easily here: Private equity funds hire few
juniors, and they hire almost no one straight out of college
(see The Global Private Equity Club and How to Get In on
page 76).
There are two main
entry points to a career
in private equity: After
you’ve been working at
an investment bank for
two or three years, or
immediately after you’ve
received an MBA.
Typically, junior staff
members handle number
crunching and analyze
the companies in which
the fund is considering
investing. On the next
rung are the principals,
who determine whether
an investment deal is
worth pursuing and, if it
is, undertake tasks from arranging the necessary documen-
tation to negotiating the right price.
People in private
equity can make
huge amounts of
money… and benefit
from the kind of job
security most
investment bankers
only dream of.
In ideal situations,
private equity funds
invest in
underperforming
companies, turn them
around, and sell their
stake at a profit some
years later.
35
www.efinancialcareers.com
Careers in Financial Markets 2006-07
Imran Ali, Associate, Alta Communications
How did you get into private equity?
After the end of my first year as an analyst in an investment bank, I
was contacted by a number of headhunters looking to place candi-
dates with investment banking experience into fields such as private
equity, venture capital and hedge funds.
I personally looked toward private equity for the in-depth nature of
the job. Unlike banks and hedge funds that operate by doing more
transactions, and quickly, private equity deals usually take more time
and require even the most junior of associates to get deep into the
weeds and understand the nuts and bolts of a company, its industry
and the dynamics surrounding a deal. In my view, it offers the best
opportunity to learn the maximum amount within a short period of
time, not just about finance but about the legal aspects of a deal and
the operational aspects of a company.
How does working for a private equity firm compare to an
investment bank?
It’s similar on some levels, but overall it’s markedly different. The
necessity to have a strong grounding in finance and accounting holds
true, but you’re required to not only have technical skills, but the abil-
ity to make good decisions using those skills. This job also requires
you to have a lot more direct interaction with parties you wouldn’t
necessarily deal with as an analyst in a bank. A private equity job
requires a higher level of responsibility. An analyst position at an
investment bank provides a good platform but typically wouldn’t allow
for a junior person to gain the same exposure and experience.
What’s been the most challenging aspect of your career
so far?
Just understanding the scope of what needs to be done and how to get
smart on those to-do items is the most difficult part of the job. Large
investment banks have formal training programs, but junior private
equity professionals do most, if not all, of their learning on the job.
Do you have any tips for students who want to break into
private equity?
Know your finance and accounting, and polish up those skills by work-
ing at either an investment bank or a consulting firm beforehand. Don’t
be afraid to have an opinion and to take a stand on any deal or invest-
ment opportunities. Be humble and learn to work well with others
– not just colleagues, but also counterparts in a deal and agents, etc.
Profile
Originators are at the top of the private equity tree. They
are usually the fund’s partners, who, as their title suggests,
originate and oversee deals. When one of the fund’s invest-
ments is sold at a profit, these are the folks who make the
most money.
Skills and Qualities
• Analytical ability and statistical aptitude
• Team-working prowess
• Confident and outgoing
• Ability to grow and maintain client relationships
The Global Private Equity Awards 2005 –
North America Champions
Award Firm Name
LBO firm of the year The Blackstone Group
Mid-market firm of the year DLJ Merchant Banking
Venture Capital firm of the year Accel Partners
Best law firm (fund formation) Debevoise & Plimpton
Best law firm (deals) Simpson Thacher & Bartlett
Best debt provider JPMorgan
Best M&A advisor Goldman Sachs
Best placement agent Credit Suisse
Source: PrivateEquityOnline.com
36
Careers in Financial Markets 2006-07
Global Custody
Guardians of the world’s financial markets
Global custodians look after the assets of their clients – or,
rather, the proof of the assets: the certificates that repre-
sent stock and bond ownership. Before computers existed,
global custodians had gigantic filing systems for their core
work – storing certificates of stock and bond ownership.
Today, certificates related to asset ownership are stored
electronically, making the business of custody much less
space-intensive.
Typically, global custodians charge fees of up to 0.08 per-
cent of the assets they’re managing. That might not seem
like a lot, but when you multiply
it by the billions of dollars the
industry is responsible for, you’ll
see it adds up quickly. Today,
the total value of worldwide
custody assets is $82 trillion
according to globalcustody.net,
a specialist Web site.
Like so many other areas of
Wall Street, fees for global
custody are under pressure as
the sector’s players compete
for the same business. This is
driving custodians to branch out
into more lucrative businesses, such as securities lending
and risk measurement. In turn, small custodians—who lack
the manpower and technological wizardry for these higher
margin activities—are gradually being subsumed into
bigger players.
Still, a lot of people are employed by global custodians. At
the end of 2005, Mellon Financial Corporation—one of the
world’s larger custodians in terms of assets—employed
a total of 16,700 people globally, while Bank of New York
employed more than 24,000 and Northern Trust had around
8,000. While some of those staffs were engaged in busi-
nesses such as private wealth management, many were
engrossed in tasks related to asset servicing. Recruiters say
the industry’s appetite for staff continues unabated. “Cus-
tody jobs are growing,” observes one. “There’s a definite
lack of people to fill the roles.”
Roles and Career Paths
Traditionally, much of the work in global custody is admin-
istrative and repetitive. Recently, however, the custodian’s
role has widened to include a range of other services
including income collection (e.g. collecting dividends from
clients’ investments), performance measurement (calcu-
lating the returns clients’ investments have made over
a period of time) and proxy voting on behalf of clients at
shareholder meetings. Custodian firms usually specialize
in a particular area, so exactly what you do will depend on
where you work.
Corporate action professionals normalize and consolidate
corporate announcement information—which is called
“scrubbing,” in industry parlance—to inform clients about
company events that could impact the value of their shares.
Staffers in fund operations might record and monitor the
investments made by fund management clients, or work on
clearing and settlements. Staff in clearing and settlements
ensure that contracts and payments are in place following a
trade made by a client. Similar to operations staff working
in investment banks, a custody house’s fund operations
staff looks for and resolves “exceptions” that occur when
trades have not been settled properly. In addition, growth
in the hedge funds sector has created demand for staff
familiar with complex derivative products and hedge fund
accounting practices, who are predictably hard to find.
Custodians also offer more
client-focused and techni-
cal jobs. Relationship
managers, for example,
work with clients to reas-
sure them that their assets
are safely maintained.
Graduates may start out
in corporate actions or
settlements, then move
into other positions after
a few years. Few global
custodians offer struc-
tured graduate training
programs, but you can
help position yourself for the sector by speaking a second
language, grounding yourself in economics, finance,
marketing and accounting, and gaining experience with
project management.
“Custody jobs are
growing,” says one
recruiter. “There’s a
definite lack of
people to fill
the roles.”
Traditionally, much
of the work in global
custody is adminis-
trative and repeti-
tive. Recently, how-
ever, the custodian’s
role has widened …
37
www.efinancialcareers.com
Careers in Financial Markets 2006-07
Skills and Qualities
• Strong communication, presentation, and selling skills
• Organized and process-driven
• Work well under pressure
Patrick Costello, Global Head of Network Mgmt,
Mellon Group
Can you tell us about your career path?
In the early 1980s, I owned a bar, which I managed at night while
taking classes during the day at the University of Cincinnati. During
a comparative economics class, I was stunned to learn that in 1997,
Hong Kong was going “to revert” to the People’s Republic of China.
It really grabbed me. I wanted to experience it. So I made a ten-year
plan. I graduated with a bachelor’s degree, sold the bar, landed an
entry-level job at a discount brokerage house and started to fill out
applications to MBA programs. Then I married a partner who really
had no interest in moving to Hong Kong. End of plan – until a couple
of years later when I met a co-worker who had a job that required
going to Hong Kong once a year. I set my sights on his job.
I asked questions, let it be known I was very interested in contribut-
ing to the firm by working in the same area, basically made a pest of
myself. But showing that interest led to a position reporting to this
manager, and eventually I succeeded him as his own career advanced.
For a number of years, I regularly visited Hong Kong to advance the
custody services of the bank.
What’s a typical day like for you?
I have the best job at the bank. It requires a look through the entire
organization from back office, where my team resides, to middle
office and front office. On top of that, my colleagues and I represent
Mellon in its relationships with financial institutions around the
world, regularly receiving their representatives in our offices and
performing due-diligence inspections of their sites around the globe.
Our team is pulled in many directions, giving us the opportunity to
contribute to day-to-day operations and the delivery of service to
clients, and also to help develop the product so it can maintain its
leading position in the marketplace.
What advice would you give to students hoping to break into
the business?
My career wasn’t planned. I found it. Most are. Keep your eyes open,
speak up and take in as much of the road as possible. As far as
courses go, unless you have a specific professional field of interest,
a well-rounded base is the best course. A foundation in economics,
finance, marketing and accounting is essential. Beyond that, the real
value lies in fluency in a second language, project management skills
and experience, flow analysis and an awareness of the general world.
A real plus is experience living and/or studying abroad – anywhere
for any reason. The point is to get out there.
Profile
Banks by Global Custody Assets Worldwide 2006
Provider Total assets under custody $bn
The Bank of New York 11,970
JPMorgan 11,700
State Street 10,700
Citigroup 9,142
Mellon Group 4,300
BNP Paribas 4,132
HSBC Securities Services 3,200
Northern Trust 3,100
UBS AG 2,919
Société Générale 2,500
Source: globalcustody.net
www.financialnewsonline-us.com
“Business is like any game. It has its players, a language, a complex
history, rules, controversies and a rhythm…
I learned mountains about business just by reading every financial
newspaper and magazine I could get my hands on. From them,
I picked up what deals worked and which failed, and why. I followed
people’s careers. I tried to understand what kinds of strategic moves
were criticized and which were praised…
I still believe the business media is such a good teacher that I am
amazed when I meet a young person who doesn’t just consume it.
Don’t let that happen, this mentor is right there for the taking!”
Jack Welch, Winning
R
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and securities no-one comes close to covering the game like we do.
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www.efinancialcareers.com
Careers in Financial Markets 2006-07
Risk Management
The brake on a bank’s risky activities
Arguably, risk managers have the most obvious job title on
Wall Street.
These are the people who make sure that investment banks
aren’t overexposed to a plummeting stock market, or don’t
make huge loans to a company that’s on the verge of bank-
ruptcy. They examine the business from a variety of angles
to make sure it can continue to operate in the event of a
massive computer system failure or a terrorist attack.
In recent years, the competition for risk managers has
heated up as hedge funds began using higher bonuses
to attract them away from traditional investment banks.
During 2006, capital market firms seemed to be upping the
ante, increasing their compensation for risk managers so
that, in the words of one recruiter, “hedge funds will need
to dig a bit deeper into their pockets in 2006 to attract or
retain top talent.”
Some observers say risk management is increasingly being
“carved out” from trading desks or senior management
operations, where they’ve resided until recently. Hedge
funds, said one, are seeking to position risk management
in ways that are more independent from the trading side of
their business.
Risk managers break risk into several categories.
First, there’s market risk, also known as systemic risk. This
is the risk that a whole group of traded financial products
(for example, stocks, bonds or commodities) will fall in
value at the same time. Market risk is caused by events
outside of the market, such as rising oil prices, terrorist
bombs, earthquakes or a sudden rise in interest rates.
Credit risk is the danger a particular company or individual
will default on its obligations. This is becoming an increas-
ingly complex area as credit-derivative products allow banks
to trade the risk that a company will fail to repay a loan. If
the customer defaults, whoever bought the credit default
swap has to repay the balance of the loan to the bank.
Operational risk describes the danger that something might
go wrong in the day-to-day running of the bank. Reputation-
al risk, sometimes considered a sub-sector of operational
risk, involves the possibility that something will happen to
damage a firm’s reputation. In the wake of financial scan-
dals, such as the collapses of Enron and Worldcom, banks
are increasingly sensitive to reputation management.
Roles and Career Paths
People who pursue careers in market risk typically work on
or near their firm’s trading floor. Market risk specialists use
mathematical value-at-risk (VaR) models to work out the
maximum amount of money the bank would lose in the case
of a particular event. They also work closely with traders to
calculate the risk associated with specific transactions.
The people in credit risk analyze company balance sheets
and meet with company directors to determine the
organization’s financial health. By comparison, operational
risk experts review the likelihood of particular risky events
taking place, and formulate plans for handling an event if it
actually comes to pass.
Reputational risk specialists work to present the bank’s
best side to the public. Few banks employ these types of
specialists per se. Typically, the role is dealt with by the
bank’s public relations department, the human resources
department 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, some larger banks offer risk-specific
training to graduates. Hedge funds seek risk professionals
with solid quantitative skills, including Ph.Ds in quant fields
such as mathematics, statistics and physics.
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
40
Careers in Financial Markets 2006-07
Compliance
The internal watchdogs of the banking world
Compliance specialists make sure investment banks oper-
ate within the rules set by government regulators. It’s a
growing area that needs people who have a healthy respect
for rules and regulations. Not only that, but compliance
staffers must be able to stand their ground when advising
professionals in other areas of the bank that what seems
like a good idea won’t be looked on so kindly by enforce-
ment officials.
In addition to interpreting the complex and ever-changing
regulations laid down by government agencies, the compli-
ance department creates a system of rules designed to ap-
ply those regulations internally. Its staff then communicates
the rules to bank employees
and works to enforce them.
In the U.S., the primary
regulatory body for financial
markets is the Securities
and Exchange Commission,
or SEC. The SEC’s main goal
is to protect investors and
maintain the integrity of the
U.S. financial markets.
Investment banks usually
split compliance into teams
that include money launder-
ing specialists, training spe-
cialists, monitoring special-
ists and advisory and product specialists. In the aftermath
of the 2001 terrorist attacks on New York and Washington,
the government tightened money-laundering regulations
considerably through laws such as the USA Patriot Act.
In 2003, the European Union also broadened its existing
money laundering regulations.
In 2005, the bulk of the $25.5 billion spent on compliance by
the securities industry went to staffing costs, according to a
survey by the Securities Industry Association, the predeces-
sor of the Securities Industry and Financial Markets Associa-
tion, or SIFMA. Increased staffing and regular inquiries from
regulators caused the industry’s compliance costs to nearly
double 2002’s expenditures of $13 billion, the survey found.
Much of the cost resulted from companies increasing both
compliance staffs and their compensation, which was
pressured upward ‘’both due to the immediate need for ex-
perienced compliance personnel who were in short supply
and the elevation of the
importance of the compli-
ance function within the
firm,’’ the report said.
Roles and
Career Paths
Jobs in compliance
vary depending on the
area. Money laundering
specialists spend their
time looking out for
suspicious transactions.
For example, someone paying cash for a large quantity of
bonds will get their attention, especially if the purchaser
is someone that’s never dealt with the bank before. Money
laundering officers report to the Treasury Department’s
Financial Crimes Enforcement Network (FINCEN).
Compliance training specialists focus on internal controls,
preaching the compliance message to the bank’s employ-
ees. They create and present courses explaining rules and
regulations and why bankers have to follow them.
Monitoring specialists
look out for signs that
employees may be up
to no good. Recently,
much of the grunt work
involved has been
taken over by comput-
ers, which can monitor
huge volumes of e-mail
messages each day and
spot unusual events, such
as when dormant trading
accounts suddenly come
back to life.
Compliance advisors
interpret regulations and
apply them to particular
business areas and
products. An increasing
A growing area that
needs people who
have a healthy
respect for rules
and regulations.
In 2005, increased
staffing and regu-
lar inquiries from
regulators caused the
industry’s compliance
costs to nearly double
2002’s expenditures.
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Careers in Financial Markets 2006-07
number are specialists who sit on or near the trading floor
and offer advice on particular types of financial products.
They might tell traders whether or not a particular trade can
go ahead and, if it can’t, suggest alternatives that could still
be acceptable to the client. Compliance advisors need to
know a lot about trading and the products they’re advising
on. Some are ex-traders.
While graduate training programs in compliance—not to
mention entry-level jobs—used to be rare, today they’re
growing more commonplace. If you don’t get into one of
these programs, you could apply to one of the SEC’s, or
work for the compliance consulting arm of a Big Four ac-
counting firm, such as PricewaterhouseCoopers, KPMG or
Deloitte & Touche.
Skills and Qualities
• Self-confident and assertive
• Competent understanding of legal issues
• Methodical
Harold Tinkler, Chief Ethics and Compliance Officer,
Deloitte & Touche USA
Would you describe your role?
We try to make sure that people use the available tools or seek out
help. My responsibility is to help my Deloitte partners resolve prob-
lems and administer responsibilities to encourage ethical behavior.
We help develop tools and policies for the various practices, and we
monitor them. To do this, my job is to create an environment and en-
sure policies are consistent, and of course, enforce them if necessary.
What is a typical day like for you?
My typical day is broken down into two baskets: my internal day and
my external day.
Internally, our primary tool is an ethics help line, an 800 number that
people can call confidentially to ask questions about ethics and pro-
fessional behavior. They can make a report on a matter that they think
isn’t right. We can develop resolutions, and often do, as the phone
rings often and people know who I am.
Externally, we have outreach programs, including speakers at univer-
sities and to members of the financial community.
What advice would you give you professionals interested in
your field?
To be successful in compliance you must be able to develop a deep
expertise in areas that you oversee. It requires the ability to relate to
people and complex issues that are subject to compliance monitor-
ing – many of which are client matters. You have to have a mindset
compatible with quality control. The work should be the primary
motivation.
This isn’t a career or role that you work at alone. There’s a lot of
cooperation, so you need to be comfortable with working in several
disciplines, such as human resources, professional, legal and person-
nel. It also requires an understanding of client relationships. It’s very
important to possess a strong sense of “team.”
A lot of questions come up, so you can’t simply teach people about
compliance and ethics. It requires more of an ability to make them
aware of the issues they’ll face. Most people never intend to do be
unethical or non-compliant. It’s that the workplace is complicated.
There are many gray areas when it comes to understanding what the
requirements are and how employees go about fulfilling them. This is
where I can help. I can help navigate through better approaches. It’s
my job to make them aware, and provide a resource for people to go
to for assistance.
Profile
42
Careers in Financial Markets 2006-07
Human Resources
The ‘people people’ of investment banks
Human resources departments—commonly referred to as
“HR”—are responsible for the “people issues” that arise
in an investment bank. This means everything from hiring,
firing and paying employees to implementing workplace
policies on diversity, discrimination and employee monitor-
ing. They also manage disciplinary cases.
The mantra of HR professionals? “People are an organiza-
tion’s best asset.” This is particularly relevant in investment
banks, where the difference between a good employee and
a bad employee can be measured in millions of dollars. In
addition, hiring trends at investment banks tend to reflect
the state of the financial markets: The industry has a reputa-
tion for bulking up when times
are good and laying off large
numbers when times get tough.
In recent years, most banks
have changed the structure of
their HR departments, outsourc-
ing much of their peripheral
activity. Questions about com-
pensation, benefits or employee
relations—which used to be
addressed by HR people in each
banking division—are now
often handled by call centers.
Consequently, fewer HR people
work inside the banks, and
those that remain face increas-
ing pressure to become more
like “strategic partners,” under-
standing and advising depart-
ments on business matters like
reward policies and retention of
top staff.
Roles and Career Paths
Jobs in HR usually fit into one of five categories: employee
relations, recruitment, compensation and benefits, training
and development, and generalist. Also, the increasing
number of employment laws working their way onto the
books has generated a need for professionals with a mix of
HR and legal training.
Recently, a “diversity” category has begun to emerge as HR
staffs are entrusted with nurturing workforces that include
more women and more members of different ethnic and
minority groups. “Our marketplace is rapidly changing, and
the workforce is becoming much more diverse. We have to
recognize the customer base is changing as well, and we
need to have people to create products in our team with
a specific experience,” observes Patricia David, managing
director and global head of diversity/talent and employee
programs for the corporate and investment banking division
of Citigroup.
These efforts have gained a higher profile as, increasingly,
banks’ efforts in diversity involve senior executives and
business-unit leaders. Says the global head of diversity for
one bank: “For diversity to take, business leaders have to be
involved. It’s a key to success.”
HR professionals say their work has taken on a strategic
role in an industry con-
stantly on the hunt for top
talent. As one said, for-
ward-thinking companies
“are keenly aware of the
intrinsic value of having
a strong partnership with
recruiting and how that
partnership is the corner-
stone of success.”
Understanding the
relationship between HR
and the investment bank’s
overall goals is a key to
success in this sector, along with understanding the intrica-
cies of the securities business. Often, it’s up the HR staff
to understand the talent market’s dynamics and formulate
recruiting strategies that will attract and retain the people
needed to meet the firm’s business goals.
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-
eeships here, and those that do usually have no more than
two or three places. However, you have options besides
landing a spot in a training program. Because banks train so
few HR staff themselves, they often recruit expertise on the
open market. Former HR staff from Time Warner, General
Electric and PepsiCo can all be found working in banks.
“People are an orga-
nization’s best asset”
is particularly rel-
evant in investment
banks, where the
difference between
a good employee
and a bad employee
can be measured in
millions of dollars.
HR professionals say
their work has taken
on a strategic role
in an industry
constantly on the
hunt for top talent.
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If you’re interested in working in recruitment, try to gain ex-
perience with a recruiting firm that helps investment banks
find staff. These firms fall into two categories: contingent
and retained. Contingency recruiters get paid only if their
clients make a hire. By contrast, retained firms get paid re-
gardless of whether they find anyone to fill a particular job.
To be a recruiter at a search firm, you will usually need
previous experience. But search firms such as Russell
Reynolds, Korn/Ferry, and Heidrick & Struggles employ
bright graduates as researchers and train them to become
search consultants. International contingency recruitment
firms such as Badenoch & Clark, Robert Walters, and
Michael Page run graduate training programs.
Linda J. Gray, Vice President, KeyBank
What made you decide this was the career for you?
My internal wiring requires a great deal of people contact. I am
motivated by the nature of solving a puzzle, and that’s what recruiting
is: a detective story that unfolds. It’s finding the one perfect candidate
for the one perfect opportunity.
What’s a typical day like for you?
No day is typical and that’s what I love about recruiting. Your to-do
list at the beginning of the day rarely matches what you’ve accom-
plished at the end of the day. The key is to stay flexible and prioritize
the workflow to maximize your efforts and results for your clients.
I deal with strategic planning for our clients – workforce planning to
achieve business goals. We conduct strategy meetings, interviews,
market research, competitive intelligence gathering and cold calling.
I also read a lot of industry publications in the marketplace to keep a
finger on the pulse of the industry, to see what’s going on and if there
are any major market disruptions in which people would be looking
for other opportunities.
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 their
credentials, but finding the right people depends on whether their
personality matches up with the culture and environment of the
company and of the line of business.
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 for the right picture 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 are keenly aware of the intrinsic value of
having a strong partnership with recruiting and how that partnership
is the cornerstone of success.
Any tips for folks hoping to get into HR?
Understand the strategic alliance between HR and the business goals.
Be a trusted advisor to your client. Know your business inside and out,
know the marketplace, follow the trends, understand the competition
and formulate recruiting strategies that support the business goals.
Profile
44
Careers in Financial Markets 2006-07
Legal
From internal control to M&A advisory, calling all lawyers
Securities firms are large and complex organizations, and
most of their activities have legal implications. The job of
an investment bank’s legal department is to make sure all
of its contracts are watertight, that it fulfills its legal com-
mitments and avoids lawsuits, but is well-defended when
they do occur.
In recent years, investment banking lawyers have come into
their own, thanks to banking scandals and the potential for
hefty fines from regulators. Some never thought a lawyer
would head a Wall Street firm – but look at Chuck Prince,
the chief executive at Citigroup.
Once the bank’s legal counsel,
Prince was promoted to the top
job in 2003, just after Citigroup
was forced to set aside a
massive $1.2 billion to cover
the costs of litigation related to
the Enron scandal and biased
equity research.
More recently, the growth
of hedge funds has spurred
demand for lawyers who can
advise them. In fact, recruiters
say competition for lawyers
with the appropriate financial
services experience has become
so heated, it’s not uncommon
for law firms to require their
hedge-fund clients to agree not
to poach from their staff. “Most
law firms servicing hedge funds
are perpetually short on candidates,” says Adam Zoia, man-
aging partner of Glocap Search and head of the firm’s hedge
fund practice. “They’re desperately seeking staff.”
Increased scrutiny is pushing funds to rely more on in-house
counsel. “Internally, hedge funds have become more like
a proper business and most have in-house counsel,” Zoia
adds. “There is more and more legal work to be done.”
Roles and Career Paths
The career of a securities lawyer can follow any number of
paths. Some might specialize in the legal complexities of
mergers and acquisitions, while others work on the trading
floor or advise capital markets teams. Some work in the
investment bank’s central legal office, dealing with
discrimination claims, workplace issues or various types
of litigation.
M&A work can involve everything from preparing the
documents expressing one company’s intention to buy
another to conducting due diligence on the company
under consideration.
If you work on a bank’s 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 a
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, these lawyers
play an important role in
the development of com-
plex derivative products.
Few investment banks
train lawyers themselves.
It’s usually necessary
to obtain legal training
elsewhere. This typically
means working for one of
the major law firms. For
those interested in hedge
funds, a specific back-
ground in that sector isn’t
necessarily required for
a job as in-house counsel
or to work for a law firm’s
hedge fund clients. However, experience with financial ser-
vices, particularly in a transaction-related field, is a must.
“If you’ve been a securities lawyer or in M&A, you can pick
it up,” says Glocap’s Zoia.
Many attorneys suggest getting exposure to the real world
as early as possible, through summer jobs and internships,
especially after your first year of law school. Says one:
“Practical work experience provides a great head start.”
The job of the legal
department is to
make sure all
contracts are
watertight, that
legal commitments
are fulfilled, and
lawsuits are avoided
– or well-defended.
“Internally, hedge
funds have become
more like a proper
business and most
have in-house coun-
sel,” says one search
consultant. “There is
more and more legal
work to be done.”
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Careers in Financial Markets 2006-07
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
John Marzulli, Partner, M&A Group,
Shearman & Sterling
Could you tell us how you came to specialize in M&A?
Working in M&A was an accident. As an associate (at Shearman &
Sterling) I was assigned to M&A and quickly developed an affinity for
it. I’ve done M&A work for 22 years, spending six years in our London
office, where I moved as a young partner. I was the first full-time U.S.
M&A lawyer to be exported overseas by the firm. I was successful
partly because of my willingness to listen to other ways of doing things.
What’s a typical day like for you?
It varies and is what keeps you interested and devoted to succeed.
There’s always something new – a new business, culture or form of
transaction. I might do an entire deal through electronic means, com-
municating with people on the phone and e-mail. Other times, contact
is in-person and there is constant travel. In one deal I made 14 trips to
Europe in 17 weeks.
Much of my work involves planning. Now, I’m involved in the early
stages of a transaction, where I’ll sit down with the principals and try
to understand their goals and help analyze risks. From a legal perspec-
tive, it’s designing a path from where the client is to where it wants to
be. Clients want us to do many things: antitrust or work with industry
regulatory bodies. Often there are roadblocks to deals such as special
litigation, contingent liabilities and problems at the target company.
What advice would you give to students hoping to break into
the field?
Get a real summer job. Especially after your first year of law school,
find a small firm that will hire you as a first-year law clerk. After a
year of studying law solely as an academic discipline, it will do you
wonders to see action in the real world.
What should people interested in M&A law should
be reading?
If you’re interested in M&A or business and commercial law, the best
thing you can do is to read The Wall Street Journal. The danger is
the belief that all you need to know is the law. Reading the Financial
Times, Fortune and Forbes help you understand the business context in
which we work and the business issues that clients are wrestling with.
Profile
Top Law Firms for M&A Target Completed First Half 2006
Legal advisor
Rank
value $bn
Market
share %
No. of
deals
Wachtell Lipton Rosen & Katz 172.3 29.8 28
Simpson Thacher
& Bartlett 161.4 27.9 53
Shearman & Sterling 149.4 25.8 40
Skadden, Arps, Slate,
Meagher & Flom 123.8 21.4 75
Dewey Ballantine 117.4 20.3 25
Cleary Gottlieb
Steen & Hamilton 117.1 20.2 29
Sullivan & Cromwell 95.1 16.4 44
Fried Frank Harris
Shriver & Jacobson 92.7 16.0 26
Latham & Watkins 91.5 15.8 99
Davis Polk & Wardwell 90.4 15.6 22
Source: Thomson Financial
46
Careers in Financial Markets 2006-07
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
cutting-edge systems, especially for their trading floors,
where financial products and commodities are bought and
sold electronically.
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 low-cost locations such as India and China. Plenty of
banks have offshore activities already. At least one recruiter
predicts that by 2010, internal IT departments will shrink by
a third.
The good news is that banks will still need plenty of people
in western financial centers to liaise with overseas employ-
ees. According to technology research company Forrester
Research, there will be no shortage of future demand for
business analysts and project managers who understand the
banking business and can manage the outsourced functions.
IT professionals who want to
stay in advanced technology
are being advised to couple
their technical expertise with
deep knowledge of a vertical
industry, such as financial
services or pharmaceuticals,
or to combine IT with busi-
ness skills, perhaps with an
MBA. Recruiters say financial
firms increasingly seek can-
didates with a combination
of business and technology
skills, such as an understand-
ing of fixed income and Java,
or knowledge of mortgage-
backed securities and C#. In
addition, says Netin Gupta
at RadixThink, a recruit-
ment process outsourcer 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 commu-
nication skills are very
important.”
While companies want
combined skills, they often
don’t offer an obvious path
to acquiring them. So, IT
professionals 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 tend to fall into
one of four categories: de-
velopment, business analy-
sis, project management,
and 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
need to be changed.
Business analysts help identify the potential for making
changes to a bank’s technology systems. Once big changes
are underway, the responsibility for managing them often
passes to another set of IT staff: the project managers.
Project managers plan, structure and fulfill IT projects. If IT
development work is outsourced, project managers liaise
Financial firms are
known for having
some of the world’s
cutting-edge
systems, especially
for their trading
floors, where
financial products
and commodities
are bought and sold
electronically.
47
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Careers in Financial Markets 2006-07
with providers to ensure the work is completed correctly
and within the right time frame.
Technical support staff requires razor-sharp technical skills
and the thickest of skins to handle not only technology
problems, but the frustration of irate traders as well. It’s a
role that carries a lot of
responsibility: A computer
problem on a trading floor
lasting a few minutes
could cost millions of dol-
lars. It’s up to the technical
support staff to identify
and resolve the glitch as
soon as possible.
Generally, the IT staff
members in investment
banks specialize in a
particular business area.
While many work on the
trading floor, others are
based in private banking, fund management, operations, or
deal with core infrastructure requirements.
Skills and Qualities
• Superior programming abilities
• Strong communication skills
• Innovative
• Client-focused
• Good problem-solving and decision-making abilities
Samuel H. Gaer, CIO, New York Mercantile Exchange
How did you get started?
Believe it or not, I started as a clerk on the trading floor when I was
15. I worked there every summer until I graduated from the Wharton
School of Business in 1988, and from there I got very involved in the
business. When I graduated, I immediately went down to the floor
and started trading. I worked for a trading company on the Commodi-
ties Exchange for a number of years.
How did you go from trader to CIO?
In 1998, I left the trading floor to start a trading-software develop-
ment company. I founded TradinGear, building brokerage systems,
electronic trading platforms for hedge funds, broker dealers and
the exchange. We had very high profile clients, and in late 2002 we
licensed the system to NYMEX (the New York Mercantile Exchange).
They made an offer shortly after that for certain assets of the com-
pany, and offered me the CIO position.
What’s a typical day like for you?
I get in at 7:30 or 8 a.m. and generally use the time for administrative
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.
We meet for various tech and trading issues. I have a meeting with
the chairman, followed by an executive committee meeting and
technology team meetings.
The most challenging aspect of my job is managing the tech team
while managing business expectations. Fortunately, because of my
background, I am able to really relate very well between the business
of trading and the technology of trading.
Any tips for the aspiring CIO?
A great resource for me is CIO magazine. It’s a really good peer
resource. I was a very green CIO coming in – I had been CEO in
smaller companies and was not exposed to anything of this scale
prior. It’s useful to know what your peers are 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. You can discuss general
CIO matters.
Profile
IT professionals
should keep an eye
out for positions that
offer a mentor who
might help them
broaden their role in
the firm.
48
Careers in Financial Markets 2006-07
Marketing and Public Relations
Manage the firm’s image to the outside world
Marketing and public relations people are the interface
between financial services companies and the wider world.
Marketers try to present the firm as it would like to be seen
and concern themselves with reputation management,
meaning how a bank’s brand is portrayed in advertising and
promotional campaigns. PR people focus on how a bank is
represented in the media. Though related, these are two
distinct roles.
Following a rash of negative coverage of scandals related
to biased research and dubious trading deals, the role of an
investment bank’s PR staff has become more important than
it’s often been regarded in the past. Banks are increasingly
sensitive about their portrayal in the media, and staff at
most firms are forbidden to talk to journalists without secur-
ing permission from the PR or media relations department.
Like communicators in other industries, Wall Street’s
marketing staffs have to contend with new types of media
competing for the attention of their audiences. So, effective
marketing and PR staffers have to keep up with changing
technology and new audience dynamics, while making sure
all of a bank’s communications meet regulatory and compli-
ance rules.
Roles and Career Paths
Investment banks typically employ both centrally-focused
marketing staff to promote the firm as a whole, and
product-dedicated staff who work alongside sales teams
to advance specific offerings. Their work can range from
sponsoring sporting events to producing brochures or
developing corporate logos. For example, ABN Amro spon-
sors Team ABN Amro in the 2005-2006 Volvo Ocean sailing
race, Merrill Lynch has sponsored professional golf events,
and HSBC purchased the naming rights to the HSBC Arena,
home of the National Hockey League’s Buffalo Sabres.
While marketing is all about communicating with customers
and prospective customers, public relations—often called
media relations—is about communicating with journalists.
Usually, investment banks have in-house PR departments
that encourage journalists to create positive articles about
their firm and field queries in response to breaking news.
The PR department also helps communicate quarterly
results and manage media coverage of mergers and acqui-
sitions. If the bank is attracting negative media attention,
the PR staff engages in damage control, trying to limit the
coverage’s impact to the extent that it can.
Investor Relations Ranking by the Buy Side
Sector First Team Second Team Third Team
Banks/Large-Cap Wachovia Corporation Bank of America Corporation Wells Fargo & Company
Brokers & Asset Managers The Goldman Sachs Group, Inc. Lehman Brothers Holdings, Inc. Ameritrade Holding Corporation
Specialty Finance Capital One Financial Corporation American Express Company AmeriCredit Corporation
Source: Institutional Investor
Investor Relations Ranking by the Sell Side
Sector First Team Second Team Third Team
Banks/Large-Cap Wachovia Corporation National City Corporation US Bancorp
Banks/Mid-Cap South Financial Group KeyCorp -
Brokers & Asset Managers The Goldman Sachs Group, Inc. Lehman Brothers Holdings, Inc. The Charles Schwab Corporation
REIT Archstone-Smith Trust*, Prologis* - -
Specialty Finance Providian Financial Corporation Capital One Financial Corporation -
*tied position
Source: Institutional Investor
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Careers in Financial Markets 2006-07
In some cases, banks
combine the market-
ing and PR functions
in a single communi-
cations department.
Such groups often
shoulder broader re-
sponsibilities, such as
communicating with
the bank’s own staff
and shareholders.
Few investment
banks train their
own marketing and
PR staff in-house.
Rather, they usually
hire marketing and
PR professionals with
several years’ experi-
ence, often gained in
a blue chip company
or top PR agency. The people who develop a bank’s brand
are drawn from large advertising agencies. In addition, a
number of independent PR and advertising agencies are
active in the financial world. These may be hired by a bank
to give their own teams a boost.
Skills and Qualities
• Strong written and oral communication skills
• Networking and relationship management
• Understanding of and ability to communicate
financial issues
• Ability to grasp complex issues very rapidly
Curtis S. Chin, Managing Director, Burson-Marsteller
Can you tell us about your career path?
In journalism school at Northwestern, I worked as a reporter but
realized it wasn’t for me. I met someone at Burson-Marsteller in
Washington and got a job there working for financial institutions
and non-profits. I left for Yale’s School of Management and after-
ward worked as a consultant in B-M’s Tokyo office. But I left to serve
as a special assistant to the U.S. Secretary of Commerce in the first
Bush Administration.
I returned in 1993 to become managing director of operations in
our Beijing office. I moved to Hong Kong in 1998 to oversee opera-
tions, then returned to New York in 2001. Since then, I’ve focused
on counseling clients and leading teams focused on corporate social
responsibility, engagement and accountability, as well as on Asia
Pacific economic, trade and development issues.
What’s a typical day like for you?
No day is typical. Today I provided counsel to clients in San Francisco
and New York on business affairs. I called our Geneva office about a
conference on regulatory issues. I’ll work with a team helping a client
incorporate blogs into its strategy, assist a Fortune 500 company or
government client on economic and trade issues, or talk via videocon-
ference with our CEO.
What advice would you give to students hoping to break into
the business?
There is no single way to break into the business. Be passionate
about your work. Take time to learn about the industry and your
clients’ industries. Develop knowledge and a perspective that your
client and supervisor don’t have. Don’t be afraid of change or seeing
things differently.
What should people be reading if they want to break into this
kind of work?
Listen, read and view news broadly. Our role is to be part of a
business’s decision-making process. One way is to be aware of what’s
online and offline, and even non-mainstream media. Read publica-
tions and reports that impact your business such as trade magazines
and journals. Develop your own sources of information from people
you interact with. Reading the Financial Times, Washington Post,
New York Times, Wall Street Journal is a must, but not enough. It’s
a 24-7 news cycle. The news comes via cell phone and on radio and
television instantaneously. Understanding how the media works posi-
tions you to be ahead of news. Still, don’t be overwhelmed by all the
media out there.
Profile
Following a rash of
negative media
coverage of scandals
related to biased
research and
dubious trading deals,
the role of an
investment bank’s
PR staff has become
more important.
50
Careers in Financial Markets 2006-07
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 ratings agency 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 acquisi-
tions. Another small but well-known agency, A.M. Best,
specializes in rating debt issued by the insurance industry.
Best 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.”
S&P, Moody’s and Fitch issue
their rankings in similar for-
mats, which makes it easy for
investors to compare the rat-
ings 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 take a turn
for the worse.
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
undoubtedly growing because structured finance—which
refers to the exotic credit-derivative instruments that have
become hugely popular tools for managing risk—is the
fastest-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.
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.
During 2006, Fitch Ratings created a group for rating U.S.
commercial real estate collateralized debt obligations due
to increased volumes of issuance. CDOs are pools of debt
instruments repackaged into components carrying different
levels of risk.
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:
The nature of debt
financing has
changed dramatically
over the years and
the ratings agencies
have had to
adapt accordingly.
Ratings: A Guide
Agency Moody’s Standard & Poors Fitch
Investment
Grade Aaa AAA AAA
Aa AA AA
A A A
Baa BBB BBB
Speculative
Grade (‘Junk’) Ba BB BB
B B B
Caa CCC CCC
Ca CC CC
C C C
Sources: Moody’s, S&P, Fitch
51
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Careers in Financial Markets 2006-07
“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 special-
ization, staffers can
expect some element of
travel to go along with
their work.
Most agencies offer
young talent consider-
able 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
sometimes required
• Strong written and oral communication skills
• Ability to clearly express complex issues
• Self-motivation and the ability to meet deadlines
without direct supervision
Evan Tepper, Structured Finance Analyst,
Moody’s Investors Service
How did you come to work at Moody’s?
I graduated from the University of Michigan in April 2002 with a
degree in economics. I started out at the hedge fund Caxton As-
sociates, where I was in a quantitative group that looked at outside
trading systems. We analyzed the historical trading patterns of these
systems to determine if they would be useful to us in future trading.
I was there two years and I just wanted more opportunity for growth.
I kind of stumbled upon structured finance and it really piqued my
interest. I learned more about it and when I spotted an opportunity to
join Moody’s, I did.
What is a typical day like for you?
I am part of the monitoring group, so when I come in I have a set
routine, which is to review the deals I’m responsible for monitoring to
see if anything has happened that could affect our rating. I’m also one
of the more senior members of the team, so I’m constantly training
new members. I also work on rating new deals and participate in the
ratings committees. I’m constantly on the phone with trustees and
bank contacts about deals in the market.
Can you tell us a bit about how the process works?
Every new deal is assigned to a quantitative analyst, and a legal ana-
lyst since we are reviewing contracts. But the decision on how to rate
a deal isn’t made by just those two. They have to present their case
to a rating committee, justify their analyses and prove that it’s correct.
What skills do you think are most important for a structured-
finance analyst?
It’s certainly good to have a solid quantitative background, but it’s
equally important to be able to communicate with people. The most
important thing is to come in motivated every day and be willing to
learn. There is so much to learn that even people who have been part
of the group for 10 years are still learning new things. You also need
to be self-motivated, because no one is looking over your shoulder.
The work is assigned to you and everyone has deadlines, but as long
as you can meet your deadlines, it’s a very engaging place to work,
with a lot of diversity.
What information sources or organizations should people be
aware of?
Some of the best information sources happen to be structured-finance
conferences, which take place all year long, and are organized by dif-
ferent banks, industry organizations, or by Moody’s itself.
Profile
The most important
thing is to come in
motivated every day
and be willing
to learn.
52
Careers in Financial Markets 2006-07
Information Providers
Delivering data for 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.
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 government bonds, futures, options and a seemingly
limitless number of exotic, over-the-counter derivative
instruments—such as swaps or collateralized debt obliga-
tions (CDOs)—are bought and sold worldwide each day.
Collecting, massaging and dissemi-
nating all of this trading data is the
job of the information providers – the
companies in the financial informa-
tion industry.
The principal players in this realm
are Reuters, Bloomberg and Thom-
son Financial, a unit of the Thomson
Corporation. 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 organi-
zations. 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 Comstock, which distributes a real-time feed of
market data, and FT Interactive, a supplier of data to institu-
tional 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 informa-
tion 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
Because news
inspires action,
traders ultimately
rely on accurate
and timely market
data as a basis
for their buy-sell
decisions.
53
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Careers in Financial Markets 2006-07
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
Industry Association’s Financial Information Services Divi-
sion at www.fisd.net/about/members.asp.
Skills & Qualities
• Strong understanding of the financial markets or the
ability to learn
• Analytical and statistical skills
• Good oral and written communication skills
• Technology aptitude or programming abilities
Software and Information Industry Association
Financial Information Services Division
Selected Members
American Stock Exchange
Bank of America
Barclays Global Investors
Bloomberg L.P.
Cantor Market Data
Charles Schwab & Co., Inc.
Chicago Board of Trade
Chicago Mercantile Exchange
Deutsche Bank AG
Dow Jones & Company
Edgar Online
Fidelity Investments
Goldman, Sachs & Co.
HSBC Holdings PLC
IBM
Lava Trading
Lehman Brothers, Inc.
McGraw-Hill Companies, Inc.
Merrill Lynch
NASD
Société Générale
Standard & Poor’s Corporation
Thomson Financial
Tokyo Stock Exchange
Verizon Business
Richard Jacobi,
Vendor Relations Manager, Lava Trading Inc.
What are your responsibilities and how do you spend
your day?
I have responsibility for our relationships with all external vendors,
including the exchanges. We use data from a total of 40 different
exchanges. I also manage relationships with the third-party software
companies that develop applications for Lava under contract.
How did you get involved in this business?
I started at the New York Stock Exchange many years ago, in a
monitoring role. We would watch trading patterns for unusual trading
activity. Then I received an offer from ADP to become its manager of
exchange relations, which is when I first became involved in a market
data role. After ADP, I went to work for Smith Barney, running data
management for its retail branch network. Then I spent six years
at the New York Mercantile Exchange as its head of market data. I
returned to the vendor side with Moneyline Telerate for a couple of
years before coming here.
What advice would you give to someone thinking of entering
the industry?
I’ve always been on the administrative side, where you certainly need
a financial background and a thorough understanding of the financial
industry. You need to understand what market data is and how it’s
used, including all of its nuances. Market data comes in a lot of dif-
ferent flavors: you’ve got real-time data, delayed data and reference
data, which is all the data that surround it. Historical data, corporate
actions and research information all become a big part of market
data and what the end users are looking for. A lot of my job managing
market data and vendor relationships comes down to understanding
how much is being charged and who pays for it.
What about technical expertise?
You do need to have an understanding of technology. People in this
industry need to understand how trading and analytical systems work
and how they are used. You don’t need to know how to program these
systems, but you do need to understand their inner workings. For
example, when a feed is going into a black box that can redistribute
the data for multiple uses, you must have a grasp of what that means
and its implications.
Profile
54
Careers in Financial Markets 2006-07
The Recruitment Process: A Survival Guide
Your first job could be the hardest one to land
With its reputation as a high paying and jet-setting industry,
investment banking exerts a magnetic attraction over
business students. It shouldn’t come as a surprise, then,
that competition for undergraduate and graduate trainee
positions is intense. Applications are received by the tens of
thousands and the vast majority of those applying are turned
down. To filter this wave, banks use a thorough screening
process that includes on-campus events, online applications
and several rounds of interviews. If you want to make it
through, you have to stand out every step of the way.
Surviving Application Forms
The online application forms found on investment bank
Web sites eliminate over 50 percent of the applicants. Poor
academic credentials are the most common cause of failure:
Most banks seek nothing short of a 3.5 grade point average.
However, strong academic results don’t guarantee an inter-
view. To weed out those with little else to offer, application
forms ask searching questions such as “Describe a situation
in which you displayed leadership skills to influence the
outcome of an event.”
Students often underestimate the importance of these
questions. To do well, you should craft a detailed but con-
cise answer that backs up your claim to the skills the bank
is looking for. That’s no small challenge. Recruiters say com-
mon mistakes include answers that are too short, spelling
errors, failing to answer the question and pasting answers
from one bank’s application form to another’s. To ace the
application, prepare your answers offline and proofread
them carefully. Make sure you’re answering the questions.
Be brief and clear.
It’s also a good idea to get your application in early. Vivienne
Dykstra, a former investment banking recruiter turned gradu-
ate recruitment consultant, believes the best applicants are
the first off the mark. Banks are
quick to offer these early applicants
an interview as soon as possible,
she says. (For application details,
check out the Employers section.)
Surviving
Interviews
If a bank likes your application
form, you may be invited to a first-
round interview. Here, recruiters
will probe to learn more about your skills and personal-
ity. First interviews usually take place on your university
campus, with your college’s career office coordinating the
interview time slots.
Usually, you’ll face a panel of several interviewers made
up of junior staffers from the business area to which you’ve
applied, as well as representatives of the bank’s human
resources department. This first round is all about ensuring
you’re the right kind of person for the bank. All firms have a
list of skills and personal characteristics, known as “compe-
tencies,” which they try to identify (see Interview Insiders:
Know Your Q&A on page 57). At this stage, the recruiters
will also test your knowledge of investment banking and
your motivation for working at their firm.
If you create a credible impression as both a team player
and a leader, and as someone who is knowledgeable about
investment banking in general and this bank in particular,
you should be invited back for more. By this point, around
300 of the original 8,000 or more applicants are left. Be-
tween half and two thirds of these will receive the coveted
offer of a full-time job.
The second round puts a greater emphasis on technical
aptitude. The bankers interviewing you will want to make
sure you can function intelligently under pressure and are in-
terested enough in their business to have more than a basic
understanding of how it works. This means applicants for
roles in fixed-income sales might be asked how bond prices
respond to interest rate adjustments, and why. Applicants
for foreign exchange (FX) trading roles might be asked to
explain how interest rates adjust to the price of FX options.
Networking is the Key
In addition to the application and the interview, most banks
organize on-campus events at the universities where they
regularly recruit. Before the interview dates they also hold
networking sessions for candidates to meet both the re-
cruiters and professionals in different divisions of the firm.
These events are extremely important, says Amabelle
Cardenas, a campus recruiter for Merrill Lynch. “In this
business, it is so important to network and make good con-
nections,” she says. “Candidates must follow-up after the
networking sessions are over and build that relationship.”
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Careers in Financial Markets 2006-07
Danielle Domingue, Vice President,
Investment Banking Recruiting, JPMorgan
For MBAs today, there are more careers in investment banking than
I’ve seen in 10 years. And 80 to 85 percent of those people are
switching careers from places as unique as the Peace Corps, or teach-
ing or others.
You don’t have to have experience in modeling, but we look at
whether you have done your homework, and why you’re interested in
this field. The hook is why you’re interested. We look for honest and
smart answers.
If you’re in school, go to recruiting events on campus. Show an inter-
est, ask questions and reach out. Demonstrate the strength of your
background. Be quick on your feet, have good grades and intellectual
horsepower. We’re not looking for a type but for a well-rounded
background. In a client-facing role, your personality should be more
outgoing, very much the person selling to the client.
We expect an MBA to have a certain amount of polish. With under-
graduates, a recruiter can take a more mentoring approach. If you don’t
have a background in finance, we recommend getting to know the
business and as many bankers as possible through a directed network.
Another key is that you handle yourself appropriately, according to the
event – whether it’s a dinner or a one-on-one meeting. Don’t have too
much confidence or too much to drink, for example. We like students
to exhibit confidence in themselves, but arrogance can be a huge
turn-off. Show a consistent and good face to the folks who have met
you. We want to see whether you handle yourself professionally.
Our process is very thorough but very quick. We communicate quickly
with our students about our decisions, even if it’s bad news. Usually
the second round of interviews is more intense than the first. They
see up to 12 bankers for a full-time position, and most banks are
pretty consistent about that.
It serves an applicant really well if he or she is diligent with follow-up
through gracious follow-up calls. Be gracious even when declining an
offer. Bankers have the minds of elephants. We don’t forget people. If
you’ve been turned down, say, “I’d really like to talk to you next year.”
In summary, network, engage in constant learning and constant
teamwork, and take calculated risks. Use judgment consistently, in
a good way. A lot of that comes with time. Use the tools that exist
around you and don’t be afraid to ask questions. Put in the time and
be involved in extra-curriculars. And be aware of the importance of
work/life balance.
Observations
William Richards,
Hedge Fund Relationship Director, UBS
What advice would you give to students hoping to
break into the business?
I’m deeply involved with the summer intern program here
at UBS. You’d be surprised who’s here. We have a young
woman from the University of North Carolina who’s a phys-
ics major. We recruit from both undergraduate and graduate
programs. We have a training program for juniors in college
that gives them an intense course in finance.
Study the three most successful investors in the history of
the world: Julian H. Robertson, Jr., George Soros at Soros
Fund Management and Warren Buffet at Berkshire Hatha-
way. Read Soros: The Life and Times of a Messianic Billion-
aire, by Michael T. Kaufman, and Julian Robertson: A Tiger
in the Land of Bulls and Bears, by Daniel A. Strachman.
What advice would you give to junior staffers?
In a world where so much of what we do revolves around e-
mail, voice mail and faxes, it’s extremely important to make
a personal connection. When I have something important to
tell a client, I make an appointment to come see them.
Call people and say, “I’m thinking about getting in the
business or I work at UBS and I cover you and I want your
advice on how to cover you.” They’ll never turn you down.
This country rewards risk very well. Get out on the risk
curve and be willing to have opinions on investments and
express those opinions. Having an energy for what you do is
something people notice, identify with right away, and like.
What else do you think is important?
It’s a demanding business mentally and physically, so it’s
important to be competitive and physically in good condi-
tion. To fly 11 or 13 hours to Brazil and two hours later to be
interviewing a CEO, you’ve got to be in good shape. It’s a
marathon, not a sprint, so you need to pace yourself.
Q&A
55
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Careers in Financial Markets 2006-07
Although graduate training programs at the country’s top
financial firms provide a wonderful entryway to the field,
securing a spot can be difficult. Competition is stiff in
investment banking, and firms like Citigroup, UBS, Merrill
Lynch and JPMorgan all seek the cream of the crop from
the nation’s leading MBA programs. Recruiting generally
takes place on-campus through the school’s career services
office, or online, from August to November. Exact timing
differs depending on the firm and the position involved.
The requirements for all training programs are basically the
same. They require candidates to have relevant experience,
either garnered through real jobs or summer internships. If
possible, candidates should skip the online application pro-
cess and opt for face-to-face meetings during on-campus
recruiting. While it may be routine and comfortable for you
to communicate by e-mail, it’s generally difficult to make a
memorable impression through virtual means.
Typical of the leading firms’ training programs is that of
UBS, which accepts top-notch individuals with undergradu-
ate and graduate degrees, preferably candidates with a
concentration or major in business, accounting or finance.
There are some exceptions, according to Stefanie Amana-
tides, director of the bank’s campus recruiting efforts for
the Americas. “We do hire some people with other types of
master’s degrees,” she says. “Computa-
tional finance and financial engineering
degrees are of big interest.” Once they’re
accepted into the program, UBS places
trainees in its investment banking, fixed
income and equities divisions. The major-
ity of slots are filled in UBS’s New York
City and Stamford, Conn., locations.
As in the programs at other financial
firms, trainees at UBS work full-time. The
program begins in late summer and lasts
for five to seven weeks, depending on the
division. “It’s an extremely comprehen-
sive process,” says Amanatides. “They’re
not in training 100 percent of the time:
Some of the time is devoted to working
with in-house and outside vendors to train in specialty areas
pertinent to the specific division. They may need to prepare
for various licenses, such as the Series 7 or Series 63.”
Besides offering a strong footing in a firm’s inner workings,
graduate training programs groom new hires for manage-
ment roles in the company. “We are looking for future
leaders of this organization. We’re looking for people
with diverse backgrounds, and not ones that come out of
a cookie cutter,” Amanatides notes. “You have to have
certain skills, of course, like strong quantitative, communi-
cation, and analytical skills. But, you also have to have an
aptitude to learn.”
In July 2006, UBS accepted about 70 MBA recipients from
the U.S. into the full-time graduate training program. While
the contest for such a limited number of slots is fierce,
the competition among financial firms for the relatively
small number of top students is also heating up, Amana-
tides says. More established investment firms, banks and
insurance companies are competing with alternative and
boutique investment firms.
Caitlin R. McLaughlin, managing director of campus recruit-
ing for corporate and investment banking at Citigroup,
agrees that competition for the best MBA students is
growing. Citigroup runs four graduate finance—and eight
undergraduate finance—training programs. Those selected
typically have a strong MBA background. “We also look for
a resume that shows success in a variety of areas, including
documented leadership responsibility,” adds McLaughlin.
And on top of having a strong GPA and stellar standardized
test scores, candidates should be involved in school, ex-
tracurricular and community activities. Firms also consider
those with top grades from other tracks, such as doctorates
in mathematics, computer science or other finance and
technology-related programs.
Citigroup’s graduate training programs run about four to
six weeks, with a week of programming and additional
homework to complement what is learned on the job. “It’s
a structured program, but not at all textbook-oriented,”
explains McLaughlin. “This program is about taking theory
into practice. They’re taught by senior professionals. They
might learn what it means to handle a mergers and acquisi-
tions transaction, for example.” MBA trainees are accepted
into one of a number of departments, including sales and
trading, investment banking, corporate banking or global
transaction services. The lion’s share of the hiring occurs
in New York City, but Citigroup also hires trainees at other
regional sites.
A Guide to Graduate Training Programs
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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. One man was asked to
provide an example of his persuasiveness. He answered with
a description of enticing pigs to mate. “It’s surprising how
unclued-up people can be about what we’re looking for,” ob-
serves one investment bank’s head of graduate recruitment.
Some mistakes are self-evident. Angela Garnett, 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,” Garnett says.
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 typically asked to provide examples of situations in
which they’ve displayed a particular competency. “We
look for specific examples of past behaviors which provide
examples of future potential,” says Nancy Labiner, 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 experience
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, assertiveness,
leadership skills and being proactive. Joanne Scott of
Morgan Stanley says questions designed to elicit desired
behaviors might include “Give an example of a situation
when 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
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 at Highland
Partners in New York, 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 neces-
sarily be any good at bringing 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 3 inches. During
the night it fell back 2 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.
58
Careers in Financial Markets 2006-07
It could be called the bus syndrome: You’re waiting for a job
offer from an investment bank – and all of a sudden three
come along at once. What do you do?
If job offers were buses, you might be tempted to hop on
the first one and hope for a seat. But mismanaging the
decision-making process could take you way off the track of
your career.
Multiple Offers
In such a competitive industry, the chance of receiving
multiple offers might seem unlikely. But career experts say
top candidates could easily have multiple offers to juggle.
“We’re all targeting the same top students,” says Kristina
Peters, head of graduate recruiting at Deutsche Bank in
New York. “At business schools like Harvard and Wharton,
it’s not unusual for students to have four or five different
offers.”
The best candidates are heavily pursued, says Connie
Thanasoulis of Merrill Lynch corporate campus recruiting.
“Top undergraduates and graduate students used to have
an average of one or two offers each,” she says. “That’s
gone up to three or four, with exceptional candidates having
seven or eight offers from different banks.”
Don’t Delay
If you’re a one of those receiving three, four, seven or eight
offers, you might want to delay making a decision as long
as possible. “Some students take pride in collecting offers,”
says Deutsche Bank’s Peters. “They’re
like a badge of honor.” But, remem-
ber: Every job you decline is an offer
for someone else. “In the interests of
their classmates, we strongly encour-
age students to make their choices
and move on,” says Julie Morton, as-
sociate dean of MBA career services
at Chicago Business School.
At the same time, delaying for
too long may mean offers explode
beneath your feet. “All students will
be given an exploding date by which
to make a decision,” says Brian Hood, head of graduate
recruitment at Citigroup in London, “After that, an offer will
no longer be valid.”
Schools typically demand banks give their students a few
weeks to make decisions. “We make it clear rapidly explod-
ing offers are unacceptable,” says Morton. “Otherwise,
banks would be asking students to sign up at the end of
interviews.”
One graduate recruiter at a bulge bracket bank says
deadlines can be stretched to a point. “We are very flexible.
If someone needs more time because they’re interviewing
somewhere else, we will typically give it to them. But we
won’t do it twice.”
Be Honest
If you’re juggling multiple job offers, should you tell the
banks pursuing you? There are clear advantages to do-
ing so: Realizing you’re a hot
prospect, banks might offer
additional incentives to help you
make up your mind. Certainly,
banks prefer for you to tell them
everything. “We need to get
as intimate as possible with
candidates,” says Merrill Lynch’s
Thanasoulis. “It helps if we can
get information about who else
has offered them a position,
and how that influences their
significant other. The more we
know, the more likely we can get
a candidate what they want.”
When banks know what’s going
on, they can be very persua-
sive, typically inviting candidates to meet their potential
colleagues and assigning buddies (preferably an alum from
the same school) to make frequent contact. If a spouse has
reservations about relocating to the likes of New York or
Chicago, for example, the bank’s lure may be extended in
that direction. Deutsche has helped spouses find jobs, says
Peters. Another bank said it has even offered to employ
spouses itself.
Demand High for Qualified Grads
Manage multiple offers to get that great first job
Career
experts say top
candidates could
easily have
multiple offers
to juggle.
If you’re juggling
multiple job
offers, should you
tell the banks
pursuing you?
There are clear
advantages to
doing so.
60
Careers in Financial Markets 2006-07
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: making 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.
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, she says, use the plan as a road map, but recruit one
or more co-pilots. A major career-management mistake, she
says, is trying to accomplish everything alone, in a vacuum.
A better approach is to “strategically reach out to people
around you,” she 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 en route. Have them help you
assess your strengths and weaknesses, including creative
thinking, teamwork and oral and written communication
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,” says
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.”
Managing Your Career
It’s About More Than Finding Your Next Job
Dawn Fay
Regional Vice President,
Robert Half International
Al Mariano
Salary Professional/Consultant,
Robert Half International
61
www.efinancialcareers.com
Careers in Financial Markets 2006-07
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 says. “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.”
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
It’s important to include recruiters in your network. Chal-
lenger 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.
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
banking, 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.”
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63
www.efinancialcareers.com
Careers in Financial Markets 2006-07
Happy? You Should Still Keep Your Resume Ready
Always be ready to move
No matter how happy you are in your current job, you should
have an up-to-date resume in the hands of a recruiter.
“You shouldn’t have it out everywhere, but you should have
an agent looking out for what you do, because if something
attractive comes along at a good shop you want to be
notified,” says Joseph Sullivan, president of International
Market Recruiters.
The notion of “the best time to get a job is when you already
have one” is both a cliché and a widely ignored truism, adds
Alan Geller, managing director at AG Barrington in New York.
“A lot of people are asleep at the wheel and they wait until
it’s too late, and then the call me. Often it’s their last day on
the job,” he says, adding that it’s more difficult to market a
person effectively in such situations.
On top of that, Geller says, approaching recruiters when you
aren’t seeking a new job allows you and the recruiter time
to work together and develop a real relationship.
Maintaining Momentum
Often, changing firms is the only way to get ahead. “If you
are in the same job for four years, the question is why?”
notes Sullivan. “If you’re in a hot area like credit derivatives
or prime brokerage, businesses that are growing, and you
are being left behind, sometimes you have to leave for the
sake of leaving.”
The biggest reason people want to change jobs is money,
recruiters say. For example, Geller cites some of his recent
cases: A salesman joined a
firm on a verbal agreement and
then discovered his commis-
sions didn’t match what was
promised. In other instances,
company executives modified
commission plans because
their sales staffs were earning
too much.
Staffers often seek to leave
companies that have surren-
dered their competitive edge
by halting investment in new
products and innovations, or
because of a poor manager.
And, of course, change at the
top often creates turmoil and
uncertainty – and cause employees to begin considering a
move toward the door. “You don’t owe it to your existing
company to ride out the changes,” Sullivan believes. “Even
if you have only been there a year, you should get into a
company that you like.”
“Change is good,” he says. “People will adapt to a new job,
get better and grow their careers.”
Burnishing Your Resume
Wall Street likes people who get things done. Students
looking for ways to position themselves might want to
consider the backgrounds of the Goldman Sachs Global
Leaders, a group of 100 high achieving college students
from 20 countries. Their common thread: real accomplish-
ments, some made even before they’ve entered college.
In July 2006, the Goldman Sachs Foundation brought 50
of the Global Leaders to New York. They spent a week
hearing from socially responsible corporate executives and
philanthropists—people such as Craig Newmark of Craig’s
List, Deborah Dingell of the General Motors Foundation and
Michael Gilligan of the Luce Foundation—and developing
their own networks among their colleagues.
The Goldman Sachs Leaders have demonstrated they’re
people who are results-oriented. Rajeeb Dey of the Univer-
sity of Oxford, for example, founded the English Secondary
Students’ Association, a national organization that gives
students aged 11-19 a greater voice in education. Boryana
Atanassova of the American University of Bulgariawas one
of the founders of the UN Youth Association in Bulgaria.
Another Global Leader, Harvard University’s Thomas Had-
field, created and sold Soccernet.com to ESPN before he
had graduated high school. He went on to start the online
education company Schoolsnet.com with his father.
All undergraduates can take a page from the Global Leaders’
playbook. “You can do a lot more besides study” while you’re
in college, says Dey, who recommends students look for
opportunities to lead in ways that will help themselves and
their communities. In addition, “think internationally, act lo-
cally,” suggests Atanassova. Hadfield agrees. “It’s important
to spend time with people from different cultures,” he said.
“It’s important to have respect for different approaches.”
“Think big, start small, scale fast,” he adds. “Your only limit
is your ambition.”
Approaching
recruiters when you
aren’t seeking a new
job allows you and
the recruiter time to
work together and
develop a real
relationship.
64
Careers in Financial Markets 2006-07
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
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 men-
tor, 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.”
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
helping. 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.”
Building Effective Relationships With Mentors
Think outside your company for career-long nurturing
“Don’t put all your
eggs in one basket,”
she advises.
“Instead, cast a
wide net and build a
personal
advisory board.”
It’s a two-way
street, so consider
what you can offer
your mentor.
65
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Careers in Financial Markets 2006-07
Making Friends and Influencing People
Networking is a critical career tool
Today, networking remains a critical component of the
business-school graduate’s job search – and their career
advancement. Even with the help of campus career advisors
and visiting corporate recruiters, a number of unadvertised
opportunities go to individuals savvy enough to connect
with key people in the industry. And, with competition for
plum opportunities at a high, networking helps separate a
candidate from the pack.
Kori Neville, associate director of the Goizueta MBA Career
Management Center at Emory University’s Goizueta Busi-
ness School, reminds students to first reach out to their
extended network of family, friends and work associates.
“The most important contacts are the obvious ones, those
from your undergraduate and graduate school,” she says.
“Possibly a family friend or someone with a similar interest
can be helpful on your career search.”
While Neville cautions “networking isn’t a substitute for
research,” she says it’s an effective way to provide prospec-
tive employers and colleagues
with insight into your skill set.
“Make sure you do your home-
work first, though,” she advises.
“You’ll find that it helps to net-
work when you know your subject
matter or area of expertise.” Take
the time to research and join
some of the myriad of industry
organizations and MBA associa-
tions valuable for networking.
In addition, most universities
maintain a database of alumni in
a given field, and many of these
folks are more than willing to
help graduates of their alma ma-
ter. In finance in particular, joining
an alumni association helps to
maintain contacts.
More importantly, internships
held during graduate school can
lead to important networking opportunities, especially if
students are diligent in maintaining ties to their former
supervisor or boss. Outstanding students should also reach
out to key professors, since faculty often handle consulting
assignments for corporate America.
“Networking pays significant dividends in one’s career,
but it can’t be something that you merely engage in for
the short-term,” says Daphne Atkinson, vice president of
industry relations for the
Graduate Management
Admission Council, a
non-profit education as-
sociation and the provider
of the Graduate Manage-
ment Admission Test
(GMAT). Atkinson sug-
gests establishing a plan
to build and develop a
network of individuals and
organizations valuable to
your career. “Networking
isn’t a static thing,” she
points out. “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.”
Atkinson also suggests helping others with their network-
ing goals. “The process has to be a two-way street to be
effective,” she points out. Taking and never giving back will
eventually leave you out of the loop.
While women and minority MBAs remain underrepresented
in the financial world, Atkinson notes that good network-
ing skills can bridge the gap. She notes that reaching
out to such organizations as the National Association of
Women MBAs, the National Black MBA Association, and
the National Society of Hispanic MBAs helps to increase
networking ties to finance firms, since these associations
specifically seek to help in career development.
“Remember to always be open to contacts that may be
outside of your realm of experience,” she suggests. “Don’t
discount any source.”
Internships held
during graduate
school can lead to
important networking
opportunities,
especially if students
are diligent in
maintaining ties
to their former
supervisor or boss.
With competition for
plum opportunities
at a high, network-
ing helps separate a
candidate from
the pack.
66
Careers in Financial Markets 2006-07
You’ve landed your first job. A year later a recruiter brings
you an offer of a better salary from a competing firm. You
go into your manager’s office to resign and receive a coun-
teroffer. Should you take it?
No, says Bob Deissig, a partner at the Ayers Group, a New
York-based human resources consulting company. Firms
shouldn’t make counteroffers either, he adds, citing a
survey in The Wall Street Journal that showed more than
90 percent of job seekers who accepted counteroffers were
unhappy a year later. Most, in fact, ended up leaving their
firm, voluntarily or not.
“In financial services, it’s like musical chairs,” Deissig says.
“People from First Boston go to Morgan Stanley and people
from Morgan Stanley go to UBS, and it just rotates.”
Why Leave?
Rather than bring in a new hire who has to learn all of a
position’s responsibilities, banks and financial services
firms seek exact fits. For the employee, pay is often the only
difference between one company and another. “That means
the only pull for a person to leave their current company
is more money,” says Deissig. “If there isn’t a lot of push,
when they go in to resign it becomes very commonplace
to counter. So, why should they leave when their current
employer just matched the salary offer?”
Often, the answer is because the employee was unhappy,
either with a manager or the company’s culture. In such cas-
es, his decision to accept a counteroffer will lead to second
thoughts in the months ahead. As for his managers: They’ve
just learned the employee isn’t loyal, and may spend their
time looking for a replacement.
Running up the Ladder
That replacement may well come from within the company.
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-
ductivity benefits of promoting from within.” To position
themselves for those opportunities, Messmer suggests
employees make sure their managers understand their skills
and career goals.
If you’re looking to move—internally or externally—Mess-
mer stresses you should know the skills required for the job
you’re pursuing, and acquire any additional education you
may need. Volunteer for new tasks to demonstrate enthusi-
asm, and make your boss look good.
When Deissig evaluates candidates for their ability to move
into a more challenging position, he looks for indications of
inquisitiveness. “You often can see that outside of work as
well,” he says. “You want to know if the person is a quick
learner, if they go outside the box rather than always taking
things in logical succession.”
Finally, says Messmer, candidates should help prepare their
successor. Doing so allows you to move on with profes-
sional bridges unburned.
Learning Opportunities
“We tell clients to be more flexible and provide learning
opportunities,” says Deissig. When they take that approach,
hiring companies provide more than just additional money
for the same opportunity: They offer candidates the chance
to learn new areas of the business.
In addition, “If a person has the right experience, if they
are smart and have a degree of learning agility, it is not a
leap of faith to move that person into a bigger job,” Deissig
says. The result is a win-win for recruiters, candidates and
banks. The recruiters have a wider range of people to pres-
ent, firms get to look at a group of highly skilled, eager job
candidates, and job seekers have an incentive greater than
just money. For everyone, the outcome is a loyal employee
who has grown into a new position.
Take the Offer and Run
When to make a move for greener pastures
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68
Careers in Financial Markets 2006-07
Steven Marotta, Research Analyst,
Wyper Capital Management
• Interpersonal skills are very valuable. You must have
the ability to communicate your ideas, to get along
with the people you work with, and to rise to chal-
lenges when necessary.
• You have to be prepared, and you can’t be a shrinking
violet. That is something I underestimated coming to
this side of the business. You must have the informa-
tion at hand to back up your recommendations.
• Get good grades…and go to class. The pedigree of
the school helps, but if you aren’t in one of the top
schools, getting a job with a marquee name early
would help.
• Developing a network helps.
Harold Tinkler, Chief Ethics and Compliance Officer,
Deloitte & Touche USA
• To be successful in compliance you must be able to
develop a deep expertise in areas that you oversee.
It requires the ability to relate to people and complex
issues that are subject to compliance monitoring.
• You have to have a mindset compatible with quality
control. The work should be the primary motivation.
Richard P. Cervone, Managing Director, Portfolio Manager,
Putnam Investments
• Take courses in finance and anything that teaches you
about the valuation of companies.
• Take a broad range of courses in areas such as market-
ing and strategy, because they’ll teach you to evaluate
management decisions and how they impact the top and
bottom lines, as well as how the businesses operate.
• Learn as much as you can about business on your own.
And, it’s important to communicate a high level of
enthusiasm when looking for jobs at mutual funds.
Rebecca Patterson, VP and Global Currency Strategist,
JPMorgan
• Markets are highly interrelated, so you have to be able
to understand the equity, bond and commodity markets
and how they each could impact currencies.
• Policymaking is also important, as indirectly it can
influence portfolio and trade flows that in turn drive
currencies.
• You must have a natural curiosity about the world,
which involves reading and asking lots of questions.
Patrick Costello, Global Head of Network Management,
Mellon Group
• Career decisions are frightening. Take a deep breath,
relax and avoid the temptation to overanalyze your
career path. My career wasn’t planned. I found it.
Most are.
• Keep your eyes open, speak up and take in as much of
the road as possible.
Kathleen D. Scott, Principal, RA Capital Advisors
• An internship is the best way to determine the areas
you’re interested in.
• A career in investment banking is very demanding.
People shouldn’t go into it if they want a lot of free time.
• This is a time-intensive business, but it’s important
to maintain a balance in your life. Particularly, when
you work as a junior analyst, it’s difficult to take time
off because of the pressures to perform. But you don’t
want to get burned out.
Imran Ali, Associate, Alta Communications
• Know your finance and accounting, and polish up those
skills by working at either an investment bank or a
consulting firm beforehand.
• Don’t be afraid to have an opinion and to take a stand
on any deal or investment opportunities.
• Be humble and learn to work well with others – not
just colleagues, but also counterparts in a deal and
agents, etc.
Evan Tepper, Structured Finance Analyst,
Moody’s Investors Service
• The most important thing is to come in motivated
every day and be willing to learn. There is so much
to learn that even people who have been part of the
group for 10 years are still learning new things.
Voices of Experience
Professionals offer advice on investment banking careers
Steven Marotta
Research Analyst,
Wyper Capital Management
Harold Tinkler
Chief Ethics and
Compliance Officer,
Deloitte & Touche USA
Richard P. Cervone
Managing Director,
Portfolio Manager,
Putnam Investments
69
www.efinancialcareers.com
Careers in Financial Markets 2006-07
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. Janice
Reals Ellig, president of retained search firm Gould
McCoy Chadick & Ellig, says “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 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, it’s important
to maintain a 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.
70
Careers in Financial Markets 2006-07
Q: What can you do to be more proactive in managing
your career?
A lot of us make assessments about our career success by
benchmarking ourselves against our peers. But if you’re
working in a smaller company, there aren’t many peers. So
what can you do? You can join an alumni association. You
can take a night course. It’s all about getting into a com-
munity of fellow travelers. A lot of people do it by computer.
They form these internet chat rooms, and they talk about
their careers there.
Careers are internal. A job is external. The job is something
someone else gives you. A career is something you give
yourself.
Q: Many experts say mentors are important. How do
you find a mentor at work?
The first thing you should look for is common values. You
don’t need someone who’s doing the same job. You need
someone who shares your values or world view. Say I’m
money-hungry, but you’re not. I’d be a bad role model for you.
There are three things you need to focus on in a career:
money, fun and learning. You have to find people who have
those three elements in the same priority you do.
And by the way, those priorities can change. If you’re trying
to start a family, you may be trying to maximize income, so
you’ll put money first. There’s nothing wrong with that. And
then once you have a family, your mentor may change.
Q: So how do you find this mentor?
You’ve got to find that person by their behavior, by their suc-
cesses, by their reputation, internally. And that’s how you
identify them. And then you see their receptivity. And you
ask them if they will be your mentor.
Q: Are most people receptive?
If they’re not receptive, then you’ve picked the wrong
mentor. My guess is, being a mentor is considered by most
people to be an honor.
But you should wait until you’re on a job for at least six
months before approaching someone. By that time, you’ve
established a reputation. No one will want to help you if
you’re not effective in your job. If you’re doing a good job,
then your contributions to the organization are apparent.
Q: What should people with financial services jobs
be reading, to further their careers?
Books in the popular press, periodicals, newspapers. I
think all that stuff adds to your professional development.
It shows up in your job and in interviews. You know what’s
topical.
Q: How should people view recruiters? As someone
constantly in their lives or someone they call when
they want to make a move?
Unfortunately, my answer is self-serving. You need a good
recruiter like you need a good lawyer or a good accountant.
Just because you haven’t been sued recently doesn’t mean
you don’t want a good lawyer. The same thing is true for an
accountant and an executive recruiter – not so much to get
a new job but as a career advisor. I get a lot of phone calls
from people who aren’t interested in leaving their company,
but want to move internally.
Q: Speaking of which, how do you know when it’s
time to leave your current job?
Boredom. People say everyone is motivated by money. The
number one motivator in peoples’ careers is learning. The
number two is fun or fulfillment. And the number three is
money. There’s something about always learning something
that’s exciting. You just can’t beat it. That’s how you know if
you’re in the wrong job. You’re not learning anything.
Q: Is it better to stay in one place for a long time, or
to move around and get a diversified palette of
experience?
To me, neither one is better or worse. It’s really whether
you’re in an environment where you’re learning. If you
brought a resume to me of someone who had three jobs in
10 years, but that person had the same job and responsibili-
ties in each position, that’s a problem. But if you show me
someone who has had three jobs in the 10 years, and in
each job they had increased their responsibilities and had
developed professionally? That’s fine with me.
Recruiter Q&A: John Mazzei, Managing Director,
Rand Thompson, New York
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Careers in Financial Markets 2006-07
How to Face Trader’s Trauma – Then Trade Some More
Using mental discipline to keep yourself on track
Trading, most industry insiders will tell you, is a business
with tremendous turnover. “In order to succeed in this busi-
ness, you have to have utmost mental strength,” says Evan
Lazarus, managing director of Sperling Enterprises, who be-
gan his career in 1998. “Most people don’t recognize that.”
Indeed, Lazarus says only about 10 percent of the traders he
knew when he started remain in the business today. Sever-
al times, he’s found himself in situations where he was sure
he couldn’t handle the business’s mental pressure. “I was at
a point where there was a wall in front of me, and I could
not knock it down,” he says. However, each time, with the
help of Sperling Chief Operating Officer Doug Hirschhorn,
Lazarus managed to overcome his trader’s trauma.
“Doug opened up my mind to concepts like the prospect
theory, thinking about trading in terms of points instead of
money,” explains Lazarus. “He helped me to understand
myself more so than anything else.”
Focusing on points rather than
dollars allows you to “focus on
the process of the trade, not
the outcome of the trade,” says
Hirschhorn, who worked for both
the Chicago Mercantile Exchange
and the Chicago Board of Trade
before joining Sperling Enter-
prises in 2005. Or, in the words
of Alan Farley, a private trader and columnist for TheStreet.
com: “Experienced traders control risk. Inexperienced trad-
ers chase gains.”
Blocked And Under-Trading
Jeanne Zingaro, a private trader who trades in commodi-
ties, suffered from a severe lack of confidence after one of
her trades resulted in a big loss. “I couldn’t bring myself to
jump back in,” she recalls. Hers was a common trader pre-
dicament called “under-trading,” which occurs when traders
identify an opportunity but can’t make themselves act. Dr.
Brett Steenbarger, a clinical psychologist who specializes in
trading psychology, likens this fear of trading to a mild form
of post-traumatic stress disorder.
To overcome such trauma, Hirschhorn encourages traders
to create a daily game plan and motto – and to stick with it
as closely as possible. He also suggests keeping a journal
to help identify what’s lead to their successes – and their
losses. For Zingaro, Hirschorn’s techniques are “a good
way of evaluating the day,” she says. “Everyone makes
mistakes, how one handles the mistake is an important
thing to learn.”
Overconfidence –
And Over-Trading
While the lack of confidence begets under-trading, over-
confidence and the fear of missing out on trades can lead
to an opposite result: over-trading. “That’s when we find
ourselves putting on trades when we don’t really have an
edge. We find ourselves not really adhering to our trading
plans,” says Steenbarger. Over-trading can also be triggered
by frustration from a previous loss that leads to a “revenge
trade,” or simple boredom from a lack of trading activity.
Tom Rice, director of trader development at Goldenberg,
Hehmeyer, says at some point most traders—including
himself—fall prey to over-trading. Overcoming the impulse
requires self-discipline, he says. “Discipline is a muscle,
you have to exercise it,” he declares.
“Ultimately, I believe that trading is a performance skill
that is learned through intensive exposure, and that it is an
example of implicit learning,” says Steenbarger. “In that
sense, the factors that make for successful performance
as a trader are the same as those that make for success
among chess grandmasters, Olympic athletes or ballet
dancers at the Bolshoi.”
“Battling the mental aspect of this business is the hard-
est,” says Lazarus. Still, despite the difficulties posed by his
career, trading has become “very defining for who I am,”
he says. “It’s mine: mine to create, mine to grow, mine to
complete. It gives me a real sense of accomplishment.”
“Experienced
traders control risk.
Inexperienced traders
chase gains.”
74
Careers in Financial Markets 2006-07
Don’t think that you’ve got a honeymoon period in store for
you during the first months of your new job. In the results-
oriented world of finance, instant gratification—for your
new employer, not you—is more like it.
“In all cases, they expect you to hit the ground running,”
says Peter Gonye, co-head of search firm Spencer Stuart’s
private equity and investment banking practice. To prepare
yourself, “you should certainly understand what type of cul-
ture it is before going in,” adds Janice Reals Ellig, president
of the retained search firm Gould McCoy Chadick & Ellig.
“Some are bureaucratic, while others are more run-with-
the-ball entrepreneurial.”
Preparation begins before you’ve even received a job offer.
During the interview process, investigate the people who’ve
held your position previously, as well as your future boss
and other successful figures
within the company. Find out
what’s made them successful (or
not), and learn all you can about
how they operate. Make sure
you’re crystal clear on your boss’s
operating style: Is he or she a big
communicator or not? Are you ex-
pected to operate independently
or check in every step of the way?
Once you start your job, don’t be
surprised if you’re pretty much
abandoned to your own devices
once you’ve been shown your
desk. “Companies often don’t
welcome you with open arms
because they don’t know how
to,” says Ellig. “They’re so busy working on things that they
seldom communicate, or fail to communicate.”
The ‘Other-Place’ Trap
In his former job as head of international human resources
at Merrill Lynch, Sean Woodroffe observed many instances
of over-eager but insensitive new hires committing hari-
kari. “One of the classic missteps was the ‘I’ve-done-it-
better-at-the-other-place’ syndrome,” he says. “I’ve seen
instances of senior executives coming in and saying, ‘The
way you guys do things is archaic. This is the way we did
things at our company, and it was better.’”
Instead of coming on so strongly, take time to analyze and
understand your new environment. Acknowledge the firm’s
successes before taking a hacksaw to its failures – and
don’t voice your opinions in a critical or unflattering way.
Easier Transitions at
High-Growth Firms
Not surprisingly, many new hires find it easier to transition
into places devoid of settled fiefdoms. “Companies that
are in a really heavy growth mode are much more fluid,”
says Ellig.
Slower is Better
At least one observer would like to see companies go a lit-
tle easier on new employees. “To expect a stranger to come
into a company and really have credibility and confidence
and be able to hit home
runs, I think is dumb,”
says Jay Gaines, presi-
dent of New York-based
retained search firm Jay
Gaines & Company. He
prefers the approach of
one client, “a top asset
management firm,” which
tells candidates, “Look,
for the first year, we re-
ally would prefer it if you
wouldn’t do anything. Learn our culture, learn how we do
things and then act.”
How to Blow Your Career in 90 Days or Less
Successfully managing a job transition
Once you start
your job, don’t be
surprised if
you’re pretty much
abandoned to your
own devices once
you’ve been shown
your desk.
At least one observer
would like to see
companies go a little
easier on new
employees.
75
www.efinancialcareers.com
Careers in Financial Markets 2006-07
How to Future Proof Your Career
The right moves today mean you may be around tomorrow
Careers in investment banks
carry a distinct risk premium:
You may be earning more money
than people outside the industry,
but you’re also more likely to
lose your job.
There’s no shortage of prec-
edents: In 2004, Deutsche Bank
cut 6,000 jobs, and between
2001 and 2003 Merrill Lynch
eliminated some 24,000 staff
positions. More recently, Credit
Suisse said it will cut 300 jobs
as it repositions its asset-man-
agement unit to focus on core
strengths.
So what do you do if you want
your banking career to have the
longevity of, say, Sandy Weill’s? The fabled Citigroup chair-
man retired in 2006 after starting out as a runner on Wall
Street during the 1960s. We asked a selection of search
consultants and career advisors for advice. Here’s what
they said:
• Move proactively
• Build a large rolodex
• Don’t overspecialize too soon
– John Challenger, Challenger Grey & Christmas
John Challenger, chief executive of Challenger Grey &
Christmas, the outplacement provider, says you should rec-
ognize you’re not going to stay at one organization for your
entire career. When the right opportunities come along, you
should move proactively.
While you’re working, Challenger says, you also should de-
vote 10 percent of your time to building a hefty rolodex and
doing favors for others. “The more favors you do for other
people by connecting them and making things happen, the
more favors they’ll do for you,” he observes.
Challenger cautions against overspecializing in a small
organization too early in your career. “Early on, it’s better
to be a generalist working for a larger bank,” he believes.
“You’ll meet a lot more people and have a broader scope.
It’s also easier to go from a big organization to a little one
than the other way around.”
• If you’re based in the U.S., work for a U.S.-based
firm
• Anticipate the strategic direction of the company
you’re working for
• Watch out for consolidation
– Jay Gaines, Jay Gaines & Co.
If job security is all-important, says Jay Gaines, chief
executive of Jay Gaines & Co., a New York-based financial
services search firm, Wall Street bankers should think about
working for U.S. banks. “When Americans work for non-
U.S.-based institutions it’s often a much bumpier ride,” he
says. “Non-U.S. institutions have restructured on U.S. soil
many times.”
By way of example, he points to UBS, which went through
numerous gyrations before reaching its current powerhouse
status. As well as giving up-and-coming European banks a
wider-than-average berth, Gaines advises keeping an eye on
your employer’s strategic direction. “Look at the institution
you’re working in, consider its core strengths, and judge
whether the area you’re in is peripheral to the core,” he
says. If it is, you could fall prey to business restructuring.
For Gaines, the securest career option is working for a
large U.S. bank that won’t be subject to a takeover. “If you
work for a top-four bank in the U.S., the chances that your
organization will be acquired (and that you’ll lose your job
as a result) are very low,” he says.
On the other hand, he warns career progression will prob-
ably be slower there than at a smaller firm or a fast-growing
European bank. “These are crowded places. There’s a trade-
off between the speed of advancement and lower risk.”
76
Careers in Financial Markets 2006-07
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 private equity, 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
coming 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 nearly $42 billion
under management, hires 15-20 associates per year. Lori
Sabet, senior vice president for 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 finance, financial
sponsors, leveraged finance or mergers & acquisitions.
The MBA Springboard
If you plan to use the MBA track into private equity, be sure
to choose the right school. Blackstone Capital Partners, a
U.S. fund with some $30 billion under management, pres-
ents to students at just three schools: Harvard, Wharton
and Columbia.
In 2005, Columbia Business School sent less than 5 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, Co-
lumbia’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.”
The implications are clear: If you’re at the wrong school, your
chances of meeting the right people will be severely limited.
European Options
Barbara Valaperti, a Paris-based consultant at search firm
Heidrick & Struggles, says that while most funds have
well-established offices in France, job openings are rare.
However, some funds will occasionally fill senior-level gaps
with outsiders. Valaperti says the desirable combination
includes a little banking, a little strategy consulting and a
smattering of industry experience.
If you want a job in Italy, it helps to have friends in high
places. The Italian private equity market is small and
recruitment is rare.
Speaking many languages can also be an advantage. In
Germany, for example, “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.”
The Global Private Equity Club and How to Get In
Breaking in is tough, but the payoff can be substantial
78
Careers in Financial Markets 2006-07
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.
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 managing
director 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. Through a
process of elimination, the group assembles a list of the most
exceptional candidates. 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 executives higher up the ranks. At UBS, for example,
members of the investment banking board review each
name’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.
What it Takes to Make Managing Director
And why not everyone is cut out to be one
79
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Careers in Financial Markets 2006-07
Joseph Ghartey, Head of Equity Derivatives for the
Americas, JPMorgan
Joseph Ghartey, 33, is responsible for North and South
American sales and trading, equity finance and market-mak-
ing at JPMorgan. Although he was made a managing direc-
tor at 31, when asked about his career, he’s more apt to talk
about his recruitment activities: positions as co-captain of
the Harvard University recruiting team, or JPMorgan’s In-
vestment Bank Inclusive Leadership Council, or as co-head
of the Junior Resource Development Council of JPMorgan,
especially his role as an alumni of Sponsors for Education
Opportunity (SEO), a non-profit organization that helps
people of color achieve their professional goals.
Q: What was your initial goal when you were just
starting out at school?
Well, early on I wanted a Ph.D. in economics or math.
Q: And did you go on to graduate school?
No. An internship in the summer of ’94, prior to my senior
year at Harvard University, piqued my interest in Wall
Street.
Q: Where was the internship?
The SEO helped me obtain a summer internship at Smith
Barney, where I reviewed annual reports and 10-Q’s and put
together pitchbooks.
Q: And you went back to Harvard after that internship?
Yes. I graduated in ’95 with majors in math and economics.
Prior to graduation, I applied to JPMorgan in sales
and trading.
Q: Not in M&A?
No, I had more interest in sales, and there were other
considerations. Sales and trading is a good entry point,
because you can start as an analyst, as I did. There are
more roles in this field suited to mathematics, whereas
in M&A math skills are not immediately applicable at the
entry level. Also, from a pay perspective there is more op-
portunity for compensation.
Q: Did you get to use your training much in the
real world?
Oh, yes. In ‘95, equity, credit and other derivatives were
just becoming really hot in the States. Having a math de-
gree helped a great deal. The modeling used in structuring
deals is very mathematical. Understanding the risk param-
eters of a deal requires math, and developing models, the
statistical analysis for inputs for pricing the derivatives—to
determine if the contract is priced richly or cheaply—are all
very dependent on math.
Q: It sounds like they were exciting times.
They were – and still are. New products in equity derivatives
were coming online and new markets were opening up ev-
ery day. I was part of the Americas Equity Derivative Team,
specifically in Latin America, Brazil, Argentina, Mexico.
Q: Exciting from an economic standpoint of course,
given the volatility in that region at that time.
It was very challenging and exciting.
Q: Did you need to be bilingual?
The math really helped more than language.
Q: Did you go into this with programming skills?
We programmed a lot to develop risk management tools
and customize applications. We probably used some visual
basic and SQL languages. But nothing that we used back in
the day is used now. Today, we use C++ and mainly object
based models.
Q: What are the hours like in sales and trading?
In the beginning we were more manual. We press a button
now to generate our P&L statement. So instead of 6:30
a.m. until 10 p.m., we finish up closer to 6 p.m., unless
we’re entertaining clients. Then meetings and dinner can
run late.
Q: And your charity work?
Very important to me. As an alumni member of SEO, I am
co-chair of SIRV – Saving, Investing and Returning Value.
SEO places 300 interns a year.
Q: Intrinsic rewards aside, how’s the money?
I started at $35,000 and I’m making a lot more than that now.
Joseph Ghartey
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Careers in Financial Markets 2006-07
Jeffrey Sherry, Investment Banker, Ryan Beck & Co.
Jeffrey Sherry, 31, is director with Ryan Beck & Co., a full
service investment banking firm with 43 offices in 14 states.
He is responsible for the day-to-day management of deals,
maintaining client relationships and identifying and bringing
in new business. His clients are middle market companies
with revenues from $25 million up to several hundred million
dollars, predominantly in the consumer and retail industry.
Q: Could you tell us about how you got to be director
at Ryan Beck?
Well, I started with a good foundation. I graduated from
Wharton School at the University of Pennsylvania with a B.S.
in Economics with concentrations in accounting and finance.
Q: Accounting?
Yes. I actually spent my internship at KPMG, in their tax
department.
Q: And how did that work out?
Very well. The experience guided me away from the ac-
counting field, although the skills came in handy later.
Q: So you didn’t go into accounting after graduation?
No. My first job was with Dresdner Kleinwort Benson, as
an analyst in the investment banking group. I valued deals
with prospective companies, performed research, prepared
marketing materials. This was all under the vice president
and the associates of my group.
Q: When did you move on to Ryan Beck?
In 1999. DKB was more focused on mergers and acquisition
business, and Ryan Beck offered more client interaction. I
entered as an analyst there as well, but as the only analyst,
so I had to take on a lot more functions. There was a lot of
client contact.
Q: Including road shows?
Yes, I had to participate in road shows.
Q: How did you get the introduction to Ryan Beck?
Through a friend of a friend who knew I was seeking a new
opportunity. DKB was involved in international deals and I
found the domestic, middle-tier market more interesting.
I’ve been here seven and a half years now, and in that
time I’ve gone from analyst to associate, associate vice
president, president and now director, reporting to the head
of investment banking.
Q: That’s pretty fast. What’s your secret?
Working really hard. There are always a lot of hours and
hard work. It’s not even necessarily the hours, but the
mental acuity required to really keep on top of things. It’s
the capacity to do a lot in a short amount of time.
Q: Multitasking?
Absolutely.
Q: How well did your schooling prepare you for
the challenge?
I was very lucky to get to Wharton. The financing and ac-
counting courses they offered were really helpful to draw
upon later in the workplace. Also, the exposure to different
kinds of people and groups prepared me for relating to an
assortment of colleagues on the job.
Q: You haven’t gone the popular MBA route.
I chose a less formal route. I learn a lot from attending pre-
sentations, seminars and lectures on law and accounting. I
read a wide range of newspapers, magazines and journals
to keep up. And, I talk to a lot of people, which is a very
important source of information.
Q: Is travel part of the job? You’re on your way to the
airport now…
Yes, a couple of times a month, to see existing clients or
meet new clients. Often it’s for raising capital or performing
due diligence for transactions.
Q: What kinds of changes in investment banking have
you noticed?
When I joined, there was a heavy focus on the Internet and
Internet companies. The emphasis is broader now. We’re
studying consumer retail, real estate, even title insurance.
Q: Any advice for others considering entering invest-
ment banking?
Make sure it’s something you really want to do, because it
takes real commitment to become successful at it.
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Careers in Financial Markets 2006-07
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.
Resources
News you should use
General Financial and Investing News
Barron’s www.barrons.com
FierceFinance www.fiercefinance.com
Institutional Investor www.ii.com
Investor’s Business Daily www.ibd.com
InvestmentNews www.investmentnews.com
The New York Times’ Dealbook dealbook.blogs.nytimes.com
Career Information and Career Development
eFinancialCareers www.efinancialcareers.com
Asian Financial Society www.asianfinancialsociety.org
Association of Latino Professionals
in Finance and Accounting
www.alpfa.org
CareerJournal,
from The Wall Street Journal
www.careerjournal.com
Career Opportunities for Students
with Disabilities
www.cosdonline.org
Management Leadership
for Tomorrow
www.ml4t.org
National Black MBA Association www.nbmbaa.org
National Society of Hispanic MBAs www.nshmba.org
Sponsors for Educational
Opportunity
www.seo-usa.org
Women on Wall Street wows.db.com
Sector News
BondsOnline www.bondsonline.com
Compliance Week www.compliancenews.com
Corporate Financing Week www.corporatefinancingweek.com
The Deal www.thedeal.com
Default Risk www.defaultrisk.com
Finance Asia www.financeasia.com
Fund Action www.fundaction.com
GloriaMundi www.gloriamundi.com
HedgeWorld www.hedgeworld.com
Inside Market Data www.insidemarketdata.com
MARHedge www.marhedge.com
On Wall Street www.onwallstreet.com
Risk Magazine www.risk.net
Securitization News www.securitizationnews.com
Trader Daily www.traderdaily.com
Wall Street & Technology www.wallstreetandtech.com
Waters www.watersonline.com
General and Business News
Bloomberg www.bloomberg.com
BusinessWeek www.businessweek.com
CNN www.cnn.com
Financial News www.financialnews-us.com
The Financial Times www.ft.com
Forbes www.forbes.com
Fortune www.fortune.com
The New York Times www.nytimes.com
Reuters www.reuters.com
USNews and World Report www.usnews.com
The Wall Street Journal www.wsj.com
Washington Post www.washingtonpost.com
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Careers in Financial Markets 2006-07
In recent years, the financial industry has put great effort
into hiring and retaining minorities at all levels. And 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
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
SIA’s 2005 Report on Diversity Strategy, Development and
Demographics. 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
workforce—from 18 percent total in 2003 to 21 percent in
2005—may not seem like much, says one, “if it was 10 per-
cent, you’d hear cries of ‘affirmative action’ and ‘they’re just
hiring 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 says. 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.”
For Diversity, Banks Chase The Same Talent
Opportunities abound for qualified candidates
Ten School Diversity Alliance
www.tenschools.com
Chicago Graduate School of Business | Columbia Business School | Darden School of Business at University of Virginia | Harvard Business School
Kellogg School of Management | MIT Sloan School of Management | Stanford Graduate School of Business |
Tuck School of Business at Dartmouth | UCLAAnderson School of Management | The Wharton School of University of Pennsylvania
Our mission is to impact and influence the diversity
of MBA campuses, organizations, and the global
community. We also strive to increase the awareness
of and participation in graduate management
education by underrepresented populations.
We encourage you to attend an information session to
learn more about the value of an MBA and the MBA
application process. You will have the opportunity to
speak to admissions representatives, current students,
and alumni from different MBA programs around the
country. For dates, times, and locations please visit
our website at www.tenschools.com.
diversity = enriched experience
84
Careers in Financial Markets 2006-07
Once upon a time, wise American
graduates focused their efforts on
landing jobs in U.S. financial firms.
Taking a position at any other kind
of bank 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 interna-
tional players like Deutsche Bank, HSBC, BNP Paribas, ABN
Amro and Barclays Capital. Do they have what it takes to re-
tain new staff against their home-grown rivals? And how do
their cultures compare to those of U.S. investment banks?
International Options
“Genuinely international career opportunities” is the refrain
of Keith Yardley at HSBC Securities in Manhattan. Yardley
is head of U.S. campus recruiting and talent management
at the firm. “Most of the people who come to work for us
are attracted by our ability to move them internationally,”
he says.
The attraction for graduates is obvious: the chance to
embrace a career that will give them the opportunity to
travel and see the world even while they gain valuable
work experience. 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, and
sometimes a bank’s business edge, for the worse. European
banks seem to have largely escaped this stigma, and global
players, such as HSBC and UBS, have managed to maintain
their corporate identities in spite of explosive growth.
Pros and Cons of Globe-trotting
Graduates with wanderlust can find themselves in places
like Paris, Amsterdam, London or Shanghai while they learn
the ropes. Imagine the glamour: You contemplate a day’s
work while munching a croissant and sipping coffee in one
of Paris’s boulevard cafés, or you step out for a quick dim
sum from a hawker stall in China. But there may be a price
of admission to such locales. Young employees are often re-
quired to take examinations to comply with local regulatory
demands, and some require a great deal of study – which
will undoubtedly cut down your café time.
Then there’s the issue of language. International banking
may be largely conducted in English, but unless you’re
posted to an English-speaking country you’ll still have to
bone up on the languages of your host land. It might not be
a problem at European banks for someone who’s studied
French or German at school, but it could be a significant
issue for further-flung postings that could require Manda-
rin, Japanese or Russian. Not being able to communicate
with the local population can lead to an isolated “ex-pat”
existence, which may defeat the purpose of visiting foreign
countries in the first place.
Culture Shock?
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 – geographically and culturally.
Even the UK, which shares a common language with the
U.S., can be incomprehensible at times. For starters you
eat biscuits with tea, not gravy; have jam instead of jelly;
wear waistcoats instead of vests, and face spellings like
flavours, colours and neighbours instead of flavors, colors
and neighbors.
But bear in mind: If you like seeing new places and
experiencing new things, an international career that
embraces travel to new places and a working environment
with colleagues from a multiplicity of cultures is an appeal-
ing challenge.
Going Global: International Career Options for Graduates
Expanding your horizons – and your options
85
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Careers in Financial Markets 2006-07
Better to Go Bulge or Boutique at Career Start?
Our financial markets expert panel tackles this classic dilemma
Q. I’m in my second year of business school. I have one of-
fer from a bulge bracket bank and a couple from boutiques.
Which would be better for my career? I’m interested in both
the long- and short-range considerations.
A. There’s no use separating what’s good for your career
from what’s good for you as a person. Engage in an honest
conversation with yourself about your priorities and style.
Are status and prestige at the top of your list? Is it all about
the bonus? Do you thrive under rapid-fire challenges or do
you prefer to order them more methodically, one at a time?
Are you a passionate proponent of your best ideas, or do
you favor a group-think approach?
The broad stereotypes of the bulge vs. boutique choice
are easy to draw. Some believe that nothing beats the
rigor and discipline of big-firm associate programs. Their
formal, systematic approach to training new MBAs typically
includes rotation through different groups, imparting a good
overview of the business. They often run valuable mentor-
ing programs and a variety of activities to help groom you
as an up-and-coming professional. The big banks typically
pay more, too. And, if you’re looking for status and prestige
early in your career, this is where to find it.
What you probably won’t find in the bulge club is the
opportunity to move up quickly and take a leading role. As
a professional at a large institution, your best ideas may
be discouraged and you may have to give up credit or edit
your thinking just when you feel most passionate about
something.
At a boutique, you can expect to function somewhat less
like a peon. Boutiques take fewer recruits from business
schools, however. In these leaner shops, you may dig your
teeth into substantive work early on. You may find your-
self shoulder-to-shoulder with some of the best and most
experienced in their field. The interpersonal challenges are
greater – but so is the chance for advancement.
It’s important to be aware that there are significant differ-
ences shop to shop. Is the bank on the right trajectory or
do things seem a bit shaky? Just as important, what is the
group energy of the institution? What is the emotional tone,
the nuances of personal integrity (or lack thereof) that char-
acterize the human element of any business environment?
You can find positive group energy in the right department
of a large firm or at the senior management level of a small
firm. Make sure you do find it, though, because it will make
all the difference in taking you—and your career—to the
next level.
If you would like to pose a question of your own, please
send an email to expertadmin@efinancialcareers.com
The Expert Panel
Maggie Craddock
Maggie Craddock is an executive coach to
Wall Street professionals through Work-
place Relationships. She is the author of
The Authentic Career.
Kenneth Taber
Ken Taber is an employment law partner
with Pillsbury Winthrop LLP.
Rod Williams
Rod Williams is the New York City job
market consultant for Lee Hecht Harrison,
a career and leadership consulting firm.
Peter Gonye
Peter Gonye brings 14 years of experi-
ence in investment banking and 12 years
of executive search expertise to Spencer
Stuart’s Private Equity and Investment
Banking specialty practice groups.
86
Careers in Financial Markets 2006-07
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 10022 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 - 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 212 617 2000 careers.bloomberg.com
BNP Paribas 787 7th Avenue, New York, NY 10019 212-841-3000 www.bnpparibas.com
CIBC World Markets 425 Lexington Avenue, New York, NY 10017 212 856 4000
www.cibcwm.com/wm/careers/
campus-recruitment.html
Citigroup 383 Greenwich Street, New York, NY 10013 212 816 6000 www.oncampus.citigroup.com
Credit Suisse First Boston 11 Madison Avenue, New York, NY 10010 212 325 2000 www.csfb.com/standout/
Deutsche Bank 60 Wall Street, New York, NY 10019 212 250 2500 careers.db.com
Franklin Templeton Investments 100 Fountain Pkwy., St. Petersburg, FL 33716 - www.franklintempletoncareers.com
Goldman Sachs International 85 Broad Street, New York, NY 10004 212 902 1000 www.gs.com/careers
HSBC 452 5th Avenue, New York, NY 10018 212 525 3735 www.hsbcusa.com/careers
JPMorgan 270 Park Avenue, New York, NY 10017 - www.jpmorgan.com/careers
KeyBanc Capital Markets 127 Public Square, Cleveland, OH 44114 800 KEY2YOU www.key.com/jobs
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
Macquarie Group 125 West 55th Street, New York, NY 10019 212 231 1000 www.macquarie.com
Merrill Lynch 250 Vesey Street, New York, NY 10080 - www.ml.com/careers
Morgan Stanley 1585 Broadway, New York, NY 10036 212 761 4000 www.morganstanley.com/careers/recruiting
Piper Jaffray 800 Nicollet Mall, Minneapolis, MN 55402 800 333 6000 www.piperjaffray.com/careers
RBC Capital Markets Corp. One Liberty Plaza, New York, NY 10006 212 428 6600 www.rbccm.com/0,,cid-16882_,00.html
Société Générale 1221 Avenue of the Americas, New York, NY 10020 - https://careers.us.socgen.com
UBS 677 Washington Blvd., Stamford, CT 06901 203 719 0629 www.ubs.com/graduates
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Careers in Financial Markets 2006-07
Company Address: 731 Lexington Avenue
New York, NY 10022
Telephone: 212-617-2000
Graduate Website: careers.bloomberg.com
Company Address: 787 7th Avenue,
New York, NY 10019
Telephone: 212-841-3000
Graduate Website: www.bnpparibas.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-
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 Snapshot: BNP Paribas is a global leader
in banking and financial services, and ranks among
the world’s top 15 banks by market capitalization
and total assets. The North American operation is a
critical component to this strategy with over 14,000
employees across the continent. BNP Paribas’ activi-
ties in the U.S. include Corporate and Investment
Banking, Retail Banking and Asset Management and
Services.
Financial Report: Please see www.bnpparibas.com
for annual report.
Headcount: 14,000 in North America
Graduates Hired Per Annum: This is a new pro-
gram for the U.S. Our goal is to hire approximately
60 Analysts & Associates this year.
Approximate Graduate Hires 2006: 50 hired into
Analyst and Associate Program in the U.S.
Graduates are recruited into: Various positions
across the entire Bank i.e. Fixed Income, Equities &
Derivatives, Corporate Finance, Leveraged Finance,
Risk Management, Trading Operations, etc.
Training Offered: 5 week intensive training includ-
ing: 30 to 50 hours of on-line product specific pre-
course work, 2 weeks of intensive product training,
post-course study, orientation and company overview,
business/technical related coursework based on level
and position, professional development courses (busi-
ness writing, negotiation, selling and presentation
skills), teambuilding and multicultural awareness.
Internship Info: 12 week formal internship develop-
ment program
Skills Required: Strong analytical and quantitative
skills, excellent leadership and communication skills,
team oriented individuals with interest and desire in
financial markets
Application Deadline: For consideration, please
contact your individual campus career service office
for application deadlines or submit your cover letter
and resume indicating area of interest to
campusrecruiting@americas.bnpparibas.com.
Company Address: 45 Fremont, San Francisco,
CA 94105
Graduate Website: www.bgigraduatecareers.com
Company Snapshot: Barclays Global Investors is
the world’s number one index fund manager and one
of the world’s top ten active fund managers. From
inventing the world’s first index fund in 1971 and
the first quantitative active strategy in 1978, we’ve
pioneered change and led investment innovation.
BGI has more than $1.6 trillion assets under manage-
ment and over 2,800 clients worldwide. We offer
funds focusing on active, index and asset allocation
strategies, as well as being the global leader in
exchange traded funds (ETFs) via iShares, and one of
the world’s largest securities lenders.
Financial Report: Visit our website for more
information.
Headcount: Over 2,800 employees in 11 offices
worldwide.
Graduates Hired Per Annum: c60 full time (global);
c50 internships (global)
Approximate Graduate Hires 2006: 45 full time
(global), 35 internships (global)
Graduates Are Recruited Into: Research, Portfolio
Management, Trading, Business/Product Develop-
ment, Sales/Marketing, Strategy, Securities Lending,
Operations, IT development: Locations - San Fran-
cisco, London, Hong Kong, Singapore & Tokyo.
Training Offered: All employees, including interns,
have access to seminars, e-learning and classes to
suit requirements. Those joining the full-time pro-
gram, start with a three week induction at our Head
Office in San Francisco, combining technical, busi-
ness and interpersonal skills development. Over the
year you will develop in-depth specialist expertise
relevant to your area, through formal and informal
education and will be supported through professional
qualifications.
Internship Info: Our 10 - 12 week summer internship
positions are open to penultimate year students.
Skills Required: An excellent academic background,
strong interpersonal and team-working skills and
high quality communication skills. Additional require-
ments vary depending on the role applied for. Please
see the website for details.
Application Deadline: Full time program: October,
8th 2006. Internship program: January, 7th 2007
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Careers in Financial Markets 2006-07
Company Address: 270 Park Avenue, New York, NY
10017
Graduate Website: www.jpmorgan.com/careers
Company Address: 127 Public Square,
Cleveland, OH 44114
Graduate Website: www.key.com/jobs
Company Snapshot: JPMorgan’s global client fran-
chise, built over 200 years, is the foundation of our
business and distinguishes us from our competitors.
We serve over 22,000 clients in over 100 countries,
making ours one of the broadest client franchises
in the industry. And we have the ability to deliver
the breadth of the firm’s capabilities, tailored to the
needs of our diversified clients in local markets. Be-
cause we put our clients’ interests first as we provide
them with the best advice and solutions for their
long-term needs, we have earned an award-winning
reputation in the industry as an influential banking
and business innovator. Our analysts and associates
play a key role in sustaining this reputation and grow-
ing the business. As a firm that relies on the quality
of our talent, we are committed to investing in each
employee’s professional and skill development.
Headcount: Approximately 20,000 employees glob-
ally in the Investment Bank
Approximate Graduate Hires 2006: 300 full-time,
300 summer
Graduates Are Recruited Into: We offer full-time
and summer opportunities in Corporate Finance,
Sales & Trading and Research for advanced and
undergraduate degree candidates. PhD candidates
can apply to summer and full-time opportunities in
Quantitative Research and Fixed Income Strategy.
Training Offered: Closing the gap between theory
and practice, our training programs are widely ac-
cepted as the best in the global finance sector, taught
by top industry professionals and our own most
experienced and inspiring people. We leverage a full
range of teaching methods (lectures, case studies,
hands-on exercises, simulations). Advanced profes-
sional certification is supported, and we encourage
deeper skill set development through continual train-
ing opportunities that keep employees on the cutting
edge of investment banking.
Skills Required: We want to meet people who are
intellectually curious, results-driven, team-oriented,
innovative, client focused; with well developed
analytical, communication and leadership skills; and
an ability to work in a fast-paced team environment.
Demonstrated academic excellence and solid work
experiences are crucial.
Company Snapshot: Cleveland-based KeyCorp is
one of the nation’s largest bank-based financial ser-
vices companies, with assets of approximately $92
billion. Key companies provide investment manage-
ment, retail and commercial banking, consumer fi-
nance, and investment banking products and services
to individuals and companies throughout the United
States and, for certain businesses, internationally.
Financial Report: Please visit Key’s website for
up-to-date details. www.key.com
Headcount: Key employs 19,300+ employees across
the US with businesses in 45 different states.
Graduates Hires Per Annum: Approx. 10-15
Undergraduate Hires Per Annum: Approx. 50-75.
Approximate Graduate/Undergrad Hires 2006:
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
Associates to receive uninterrupted training for 8
weeks. The program includes classroom lecture, case
studies and hands-on group exercises. Industry Seg-
ment 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, Training the Street, will teach
on financial modeling, and valuation techniques.
Additional vendors include presentation skills and
business writing.
Additional Topics Include: Understand industry
and corporate compliance; Identify the components of
and develop an effective pitchbook; Analyze financial
statements; Perform and analyze financial modeling
and valuation techniques. Access database tools and
strategic information (research and resources).
Internship Info: 5-10 internships are offered for the
Associate Program per year (MBA level)
Skills Required: The ideal candidate is a highly
motivated and talented individual with the desire
to embark on a career in Investment Banking. The
candidate will be quantitatively and financially-ori-
ented, possess the ability to succinctly express ideas,
have a positive, can-do attitude and will thrive in a
fast-paced and intensive team environment. Graduate
degree in Finance, Economics or Accounting.
Application Deadline: 11/1/2006
Company Address: 388 Greenwich Street,
New York, NY 10013
Graduate/Undergraduate Website:
www.citigroupcib.com/careers
www.oncampus.citigroup.com
Company Snapshot: Citigroup Corporate and
Investment Banking achieves the extraordinary for
our clients around the world. To provide our clients
with best-in-class products, services and execution,
our businesses are organized into three groups:
Global Banking, Global Capital Markets and Global
Transaction Services. This structure enables us to
leverage our product breadth and geographic scope,
and effectively align our resources with our clients’
needs. Working together, our businesses respond to
client needs and provide the right solutions based on
a complete global understanding and appreciation of
our clients’ circumstances. And our clients gain the
advantage of working with a truly unified corporate
and investment bank.
Financial Report: You will find links to our Annual
Report and Investor Relations by visiting
www.citigroupcib.com/media/
Headcount: There are approximately 55,000 employ-
ees in the Corporate and Investment Bank globally.
Approximate Graduate/Undergrad Hires 2006:
134 Associates / 850 Analysts globally
Graduates Recruited Into: We recruit for approx.
13 Analyst programs and 8 Associate programs
globally, offering a wide range of opportunity, includ-
ing: Global Banking, Global Capital Markets, Global
Transaction Services, Global Corporate Services
Training Offered: Most of our programs offer a com-
prehensive training program including orientation and
classroom training.
Internship Info: Summer Internships are available for
most of our programs.These programs are designed to
give you a 10-12 week experience preparing you for
full time opportunities. To find out more please visit
our website: www.oncampus.citigroup.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
www.oncampus.citigroup.com. The general time
to apply for full time positions is in 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 schools.
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Careers in Financial Markets 2006-07
Company Address: 250 Vesey Street, New York,
NY 10080
Graduate Website: www.ml.com/careers
Company Snapshot: Merrill Lynch is a leading
global financial management and advisory company
with a presence in 36 countries across six continents.
It serves the needs of both individual and institutional
clients with a diverse range of financial services,
including: personal financial planning, securities un-
derwriting, trading and brokering, investment banking
and advisory services, trading of foreign exchange,
commodities and derivatives, banking and lending,
insurance, research.
Headcount: Merrill Lynch has approximately 50,000
employees globally.
Graduates Hired Per Annum: Globally, we recruit
approximately 550 - 600 analysts (at the undergradu-
ate level), and between 150 - 200 associates (at the
graduate level).
Approximate Graduate Hires 2006: Same as above.
Graduates Are Recruited Into: Merrill Lynch
hires analysts into every business including: Global
Markets & Investment Banking, Global Private Client,
Merrill Lynch Investment Managers Research and
our Corporate & Enterprise programs (which include
Technology, Accounting & Finance, HR and Opera-
tions) and associates in Global Markets & Investment
Banking, Global Private Client, Research and Risk
Management.
Training Offered: Each business offers on the job
training and some form of classroom training.
Internship Info: Merrill Lynch offers summer intern-
ship opportunities in all campus recruiting programs.
The work is challenging and the feedback interns
receive is honest and constructive. The 10-week
program includes business specific learning opportu-
nities, and firm-wide events such as a Global Senior
Speaker Series. There are many opportunities to work
closely with senior management and to network with
other interns.
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. Each business lists what they are particu-
larly interested in on the website at
www.ml.com/careers.
Application Deadline: Interested students must
apply online at ml.com/careers as early as pos-
sible in the Fall semester. In addition, should we
be interviewing on your campus, please follow the
instructions of your Career Services Office.
Company Address: 1221 Avenue of the Americas,
New York, NY 10020
Graduate Website: https://careers.us.socgen.com
Company Snapshot: One of the largest financial
services groups in the euro-zone, Société Générale
employs more than 103,000 people worldwide
in three businesses: Retail Banking & Financial
Services, Global Investment Management and
Services, and Corporate & Investment Banking
(CIB). With a U.S. workforce of over 2,700 employ-
ees—1,500 of which work in the CIB division—the
country represents one of Société Générale’s biggest
overseas operations. The U.S. team delivers a
robust range of services to targeted multinational,
institutional and sector-based clients in industries
where the firm has demonstrated expertise, including
Financial Institutions, Oil & Gas, Utilities, Media &
Telecom, Aerospace, Gaming & Lodging and Sports.
This focused industry approach is integrated with a
diversified product mix to service some of the world’s
largest corporations and high growth clients.
Approximate Graduate/Undergrad Hires 2006:
20 analysts for the New York office
Graduates Recruited Into: Targeting top North
American schools, Société Générale seeks under-
graduate students with a GPA of 3.5 or higher with
majors in Financial Engineering, Mathematics,
Marketing, Finance or general engineering. Strong
academic performance, exceptional interpersonal
skills, and superior analytical, computer and commu-
nication skills are essential. The firm values individu-
als who can interact with all organizational levels in
a collegial and constructive manner, and encompass
elevated negotiation, problem-solving and deci-
sion-making skills. Initiative, integrity and creativity
distinguish successful candidates, who must also
possess Société Générale’s values of innovation,
professionalism and team spirit.
Training Offered: The Analyst Training Program
begins in June with a two-week introduction to the
firm and its capabilities. Analysts in Sales/Trad-
ing/Financial Engineering roles then transition to
on-the job-training sessions on the trading floor. For
Analysts in Corporate Finance and Origination roles,
the curriculum continues with instruction in advanced
accounting, financial modeling, valuation, corporate
finance and marketing. Analysts are placed in a prod-
uct or corporate finance group, depending on their
interests and the firm’s needs, after they are recruited
but prior to the start of the training program.
Application Deadline: Interested students should
submit resumes to us-careers@sgcib.com.
Company Address: 11 Wall Street, New York, NY
10005
Graduate Website: www.nyse.com
Company Snapshot: NYSE Group, Inc. (NYSE:
NYX) operates two securities exchanges: the New
York Stock Exchange (the “NYSE”) and NYSE Arca
(formerly known as the Archipelago Exchange, or
ArcaEx®, and the Pacific Exchange). NYSE Group is
a leading provider of securities listing, trading and
market data products and services.
Headcount: Approximately 3,000
Approximate Graduate Hires 2006: 16
Graduates Recruited Into: Member Firm Regula-
tion Examiner Trainee Program: Candidates selected
will examine financial, operational and floor activities
of members and member firms to ensure compliance
with NYSE and SEC rules and regulations. They will
participate in an on the job training program designed
to provide the additional knowledge necessary to per-
form the responsibilities of an entry level Examiner
effectively and to develop a basic understanding of
the fundamentals underlying the securities industry.
Qualifications include the following: Bachelor’s
Degree in Accounting or Finance with a minimum of
9 credits in accounting and a minimum grade point
average of 3.0, computer literacy and ability to travel.
Market Surveillance Analyst Trainee: Ana-
lyze computer generated surveillance alerts and
complaints concerning trading in listed securities.
Prepare market reconstruction of transactions and
analyze market data. Assist in investigations of aber-
rational trading activity by upstairs traders, program
traders, floor brokers and specialists, including file
organization, document control, digesting testimony,
summarizing documents and trading records. Prepare
closing memoranda with recommendations for regu-
latory action when appropriate. Qualifications include
the following: Bachelors Degree with a minimum
grade point average of 3.0, strong written and verbal
communication skills., strong analytical and computer
skills. Securities industry experience, finance or busi-
ness background a plus.
Internship Info: Each summer a limited number of
college students are hired to work for the NYSE in
non-trading-floor departments. The program runs for
10 weeks, beginning at the end of May and ending
in the first week of August. Application deadline is
April 1st.
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Careers in Financial Markets 2006-07
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-
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.
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
91
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Careers in Financial Markets 2006-07
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.
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
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).
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Careers in Financial Markets 2006-07
By Rick Ketchum
If you’re contemplating a career in the financial industry,
don’t overlook the real opportunities that await you in the
compliance side of the house.
What do I mean by compliance? Simply put, it is the
responsibility of regulatory compliance officials to ensure
that securities firms and their employees do not violate
U.S. Securities and Exchange Commission and New York
Stock Exchange rules. While easy to say, it is anything
but simple. It requires dedicated professionals who are
thorough, familiar with the firm’s business, and able to put
technological systems to work to build a strong control sys-
tem that can detect potential violative activity. An effective
compliance system is critical to building investor confidence
because it protects the firm from disciplinary actions and
reputational harm.
If you’ve earned a degree in business, accounting or law,
or if you have experience as a trader or registered repre-
sentative, you have valuable knowledge and skills that can
allow you to move over into the regulatory world. Through
compliance, you can gain a deeper understanding of how
a securities firm works and you can be part of the firm that
has been expanding rapidly in recent years. You can enjoy
substantial access throughout a company.
The experience you gain may also increase your mobility.
Business-side leaders in many firms see compliance person-
nel as having broad understanding of how the organization
operates and an ability to formulate a control environment
that can protect the business. So, in time, you may be able to
move over to trading, risk management or investment banking
functions, if that interests you. Strong compliance with rules
and the law has come to be recognized as good business.
I have dedicated most of my career to being a regulator.
After earning my law degree, I went to work for a law firm,
and then moved to the SEC. There I was able to marry the
legal skills I had developed with the practical problems of
that essential government agency. I eventually moved on to
NASD and the Nasdaq Stock Market. After a brief stint at
Citigroup, I landed my current job as chief executive officer
of NYSE Regulation, Inc., the not-for-profit subsidiary of
the NYSE Group. My organization oversees trading at the
New York Stock Exchange, NYSE Arca, and activity by our
member firms. NYSE Regulation also ensures that compa-
nies listed on the NYSE and NYSE Arca meet our financial
and corporate-governance listing standards.
I have found great satisfaction being part of an effort to
ensure the health of the capital formation process and
strengthen a culture of compliance in the securities industry
– both of which are critical to a strong and vibrant economy.
To understand the role of today’s compliance professional,
it is important to understand what the securities industry
has gone through in the past few years. While the industry
has demonstrated dynamism and creativity, over the last
decade it also suffered from wide-ranging regulatory lapses
– the collapse of Enron, WorldCom, and other compa-
nies; the research analyst conflict-of-interest settlement;
specialists trading ahead of customers, to name just a few.
These shortcomings caused the securities industry and
regulators to step back and reexamine what, in some cases,
was business-as-usual in order to anticipate and prevent
future scandals. Increased spending on compliance was a
necessary response. The industry needed to increase its
commitment to ensure the protection of investors.
While regulators were beefing up their staff and resources,
and meting out tougher penalties to deter violative behavior
and create a culture of compliance, the securities industry
was also changing.
The biggest realization was that regulatory settlements
and private lawsuits could dramatically impact shareholder
value. Business leaders came to recognize that they had not
committed enough resources to get the job of protecting
investors done right. Many firms reorganized their compli-
ance efforts.
Today, top compliance officials often report directly the
firm’s CEO. The tone at the top has changed for legal and
compliance officers and there’s been a dramatic expansion
of responsibility.
What does that mean for you?
A career in compliance is an enormously rewarding oppor-
tunity to make a difference – not just for the organization
that you work for, but also for investors everywhere.
Compliance and the Shape of Things to Come
NYSE Regulation’s CEO on Compliance and its opportunities
Rick Ketchum
Chief Executive Officer,
NYSE Regulation, Inc.
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 within a dynamic environment, you will contribute to our
company's business growth and momentum. It's a great time to join us.
Work alongside industry-leading professionals to deliver exceptional
solutions to our clients. Expect to be a contributor, a collaborator,
and a colleague.
For more information or to apply online, visit ml.com/careers
Merrill Lynch is an equal opportunity employer.
[ ]
MERRILL LYNCH
limitless potential
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inspiring colleagues
ml.com/careers
The road to the top just got shorter.
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Dina Patel – Associate, Consumer Group
M.B.A. Kellogg School of Management; B.B.A. University of Michigan
Fast track to success.
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To learn more about joining our team of motivated, successful individuals,
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Achieve anything.
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management industries. eFinancialCareers.com includes a student Campus Connection, premier job
opportunities, career advice, salary trends and industry news to keep you on top of the job market
and ahead in your career.
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
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• 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
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
$19.95
Focus on Career Management
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Your guide to finding a job in securities and banking
2006-07

limitless potential

[ MERRILL LYNCH ]
growth and momentum 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 within a dynamic environment, you will contribute to our company's business growth and momentum. It's a great time to join us. Work alongside industry-leading professionals to deliver exceptional solutions to our clients. Expect to be a contributor, a collaborator, and a colleague. For more information or to apply online, visit ml.com/careers Merrill Lynch is an equal opportunity employer.

ml.com/careers

www.efinancialcareers.com

Welcome
Welcome to the second edition of eFinancialCareers.com’s Careers in Financial Markets. Investment banking is one of the most popular career choices 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 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 premier job market and pay analysis, employment advice and a series of tools to help you maximize your career opportunities. One such tool for job seekers is our series of career guides: Careers in Financial Markets, and its sister publications Careers in Financial Markets (UK), le Guide des Carrières en Finance (France) and Carriere in banca e finanza (Italy). 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 future career,

Nicki Gilmour Managing Director, eFinancialCareers.com www.efinancialcareers.com

Carol Gray. ©2006-07 eFinancialCareers Ltd. Design & Production: Michael Ballou Dudley. www. Dona DeZube. Project Manager: Lena Quek. Lena Quek. Emma Johnson.efinancialcareers. Marketing: Maria Slabaugh Writers: James A.Contents Welcome Contents How to Use This Guide 1 2 3 Marketing and Public Relations Ratings Agencies Information Providers 48 50 52 Overview A Career in Investment Banking Trends: A Cyclical and Highly Competitive Industry 4 6 Finding a Job The Recruitment Process: A Survival Guide A Guide to Graduate Training Programs Interview Insiders: Know Your Q&A 54 56 57 58 Sectors Mergers and Acquisitions Debt and Equity Capital Markets Sales. no part of this publication may be reproduced without permission . Caren Chesler. Trading and Research Quantitative Analytics Alternative Investments Corporate Banking Foreign Exchange Private Banking Operations Fund Management Investment Consulting Private Equity Global Custody Risk Management Compliance Human Resources Legal Information Technology 8 10 12 16 18 21 22 24 26 28 32 34 36 39 40 42 44 46 Demand High for Qualified Grads Managing Your Career Managing Your Career Happy? You Should Still Keep Your Resume Ready Building Effective Relationships With Mentors Making Friends and Influencing People Take the Offer and Run Voices of Experience How the Right Recruiter Can Push Your Career Recruiter Q&A: John Mazzei How to Face Trader’s Trauma – Then Trade Some More How to Blow Your Career in 90 Days or Less How to Future Proof Your Career The Global Private Equity Club and How to Get In What it Takes to Make Managing Director Career Path: Joseph Ghartey Career Path: Jeffrey Sherry Resources 60 63 64 65 66 68 69 70 73 74 75 76 78 79 80 81 Careers in Financial Markets is published by eFinancialCareers Ltd. Myra Thomas Additional copies: cs@efinancialcareers.com +1 800-380-9040. Scott Krady. Maureen Nevin Duffy. Ambrosio.com Editor: Mark Feffer.

say. the Employers section outlines the major institutions now looking to hire the best talent. And.com Employers For Diversity.com as you build your success. The Overview presents trends and career paths across the industry as a whole and investment banking in particular. global custody and private equity. you have to know the difference between. while Managing Your Career explores strategies and tactics to help you move steadily up the ladder – and to the top.www. or risk management and compliance. Feffer U. career advice and information on employment trends in the financial markets. Finally. Glossary Compliance and the Shape of Things to Come 90 92 Mark M. where you’ll find up-to-date pay and hiring news. please be sure to let me hear from you. Finding a Job provides tips for identifying and landing not just your first job. but the right first job. To be credible at interviews. That’s why our Sectors section reflects the range of professions and skills needed for each area.com . If you have questions or comments.S. This guide will ground you in the securities industry’s different sectors and provide background information on available career paths and the skills you’ll need to be successful. Banks Chase the Same Talent Going Global: International Career Options for Graduates Better to Go Bulge or Boutique at Career Start? Employer Essentials Employer Profiles 82 84 85 86 87 How to Use This Guide Careers in Financial Markets is designed to be used in conjunction with eFinancialCareers.efinancialcareers. Editor eFinancialCareers.com. I hope this guide will inform and inspire you for your financial career. Sincerely. I hope you’ll use eFinancialCareers.

don’t be deceived: Any large investment bank has scores of VPs in its ranks. executive directors help MDs handle relationships with client companies. the managing directors. and it’s at this level that life starts to get exciting. revenue generation and client service are keys to moving up the investment banking ladder. They’re the rainmakers who deal directly with clients and bring in business. Some see themselves as cutting edge while others pride themselves on tradition. they usually hold their position for three years. How long should it take? It’s not unreasonable for a hungry new analyst to become a managing director by his or her early thirties. Despite such differences. and some measure their staffs by the dozen and work out of a single office suite. As happens in any pyramid structure. Managing Directors Managing directors sit at the upper echelons of the investment banking hierarchy. or business school students who’ve joined the bank after earning their vaunted MBA. Once they have. they call bigger and more important clients and place ever larger trades. career transitions are more difficult. While the title may sound daunting. where they can join at the next rank: director or executive director. These men and women are the right hands of the investment banking world’s leaders. In the language of investment bankers. Analysts assigned to the trading floor can’t trade until they’ve passed their regulatory exams. trading or research often have their own book of customers. Director or Executive Director For directors and executive directors—the titles are used interchangeably—the top rung of the ladder is within reach. then decide whether or not to renew their contracts. analysts are the number-crunchers who study a firm’s financial reports and put together pitchbooks – the company and sector research that helps a bank win business. associates manage and allocate work to their own teams of analysts. Those who don’t progress at one bank often jump to another. So. Most banks keep analysts in place for three years. In sales and trading. calling (relatively unimportant) clients on various (non-crucial) matters. and it’s in this position that graduates invariably begin their careers. In sales. individual performance. you’ll probably encounter a similar retinue of job titles in similar spots on the organization chart. Of course at that point. the ability to present their point of view persuasively—even when it’s contrary to the views of others—and an understanding of both clients’ and their firm’s needs and motivations. exceptionally talented trading-desk VPs can potentially make more money than their firm’s managing directors. while others laud diligence. In corporate finance. Those working in sales. Some celebrate the art of the deal. Careers in Financial Markets 2006-07 Associates Associates are analysts who’ve made the grade. Because sales people and traders work on their own.” The work analysts do varies from division to division. “analyst” is simply another way of saying “trainee. more flexible risk parameters when trading. few of those who started as analysts will make it to this level. they’re still heavily constrained until they prove they’re not going to press the wrong button and lose millions. One large bank promotes only six to eight percent of its directors to managing director each year. So no matter where you work. . Vice presidents in corporate finance manage the day-today affairs of associates and analysts and usually have more frequent contact with clients. or their own list of companies to research. In corporate finance. At this level. analysts hit the phones. At Goldman Sachs. Vice Presidents Successful associates move into the role of vice president. the ratio of employees to managing director is roughly 20 to 1. analysts have the option of deciding whether they want to stay on or make their way in another firm. many VPs will stay in place for longer than the typical three years. most share a common approach to their organization. Analysts being considered for promotion must demonstrate an aptitude for leadership. Here again. Many have tens of thousands of employees in offices around the world. At the end of the day. 4 Analyst The first rung on the investment banking ladder is the analyst. Typically.A Career in Investment Banking Is there any such thing as typical? Each investment bank has its own personality.

GROWTH AND TALENT AT THE TOP OF THE AGENDA. JPMorgan is a marketing name of JPMorgan Chase & Co. ©2006 JPMorgan Chase & Co. FAST-TRACK DEVELOPMENT. BECAUSE. WE’VE AND CREATED A BUSINESS PLATFORM THAT LETS US MEET THE GLOBAL NEEDS OF OUR CLIENTS BETTER THAN ANYONE ELSE. AND WE’VE SPENT ABOUT TWO HUNDRED YEARS GETTING READY FOR YOU. PROFESSIONAL FULFILLMENT. NOW WE’RE ENTERING THE MOST EXCITING STAGE OF OUR HISTORY – WITH INVESTMENT. All rights reserved. . OR ALL – THIS IS WHERE YOU NEED TO BE. jpmorgan. WE HAVE CREATED A TEAM SPIRIT THAT IS STRONG AND SUPPORTIVE. WITHOUT BEING RESTRICTIVE. A RICHER LIFE. MORE YOU BIG. WE’VE INVESTMENT BANK THAT DOES SET THE PACE OF CHANGE IN BUILT AN EVERYTHING FROM TECHNOLOGY DEVELOPMENT TO PRODUCT INNOVATION TO RESPECT FOR WOMEN AT WORK. EVEN IF YOU’VE NEVER CONSIDERED INVESTMENT BANKING AS A CAREER BEFORE. WHATEVER YOU WANT FROM THE FUTURE – INTELLECTUAL OF THE ABOVE CHALLENGE. JPMorgan is an equal opportunities employer. COMPLEX DEALS WE’VE THAN ANYONE ELSE. PERSONAL RECOGNITION. and its subsidiaries worldwide. THIS IS YOUR TIME.com/careers THIS IS WHERE YOU NEED TO BE. YOU SHOULD NOW.ARE HERE.

Economic cycles. suggests considering two things when choosing where to work: the economic cycle and a sector’s long-term growth prospects. In 2006. for example. however. 1996. On its Web site. starts and swings. In . investment banks had to compete with all those dot-com companies so in vogue at the time. but sedentary it’s not. leaving you better placed to find a new job when it becomes necessary.Trends: A Cyclical and Highly Competitive Industry Opportunities and volatility abound across financial services A life on Wall Street may be many things. the first step is to decide where you want your career path to lead. and so will avoid such swings in the future. or even millions. “Different points of Careers in Financial Markets 2006-07 Hiring and Firing The potential for phenomenal pay is the upside to a financial career. less than 20 percent of your pay is base salary. Investment banks and management consulting firms are aggressively recruiting MBA graduates. Hot Sectors Of course. graduates are stepping onto a promising landscape. In the early part of this decade. graduate hiring becomes a bonanza. Be less than successful at any point.” says Alan Johnson. But over the next two years. 6 Only the Best Succeed Investment banks pride themselves on being meritocracies. Staffers don’t move up—or even keep their jobs— unless they’re very good. The dot-com bubble had burst. 5. Working for companies with established brand names also helps build a more impressive resume. The downside is the omnipresent risk of losing your job. Your success.000. market swings and a host of other circumstances subject even well-planned careers to fits. In 2000.000 over two years.” Performance. depends on more than how talented you are or how hard you work. and you’ll be crushed brutally and quickly. Unless you bring in millions of dollars and land the bonuses that go along with them. Following annual reviews. and some sectors are traditionally stronger than others. you won’t become a multimillionaire. to annual compensation. Advancement depends on merit and we have yet to find the limits to the responsibility our best people are able to assume. worldwide headcount at Goldman Sachs was 6. While some observers believe Wall Street has learned its lesson. At junior levels it’s likely to be 50-50. several banks were expecting to increase their intake by around 30 percent. To avoid being left behind. doesn’t rule alone. Revenue is right there alongside. the number of graduate vacancies plummeted 25 percent and students found it increasingly hard to secure jobs. words like “intense. By 2001. or failure. When business is good. Today. Are you interested in fixed income? Equities? Corporate finance? Choose carefully: We’re talking about careers here. bonuses for top performers add hundreds of thousands. a partner with the management consulting firm Mercer Oliver Wyman. would-be investment bankers should develop strong transferable skills relevant to other industries or sectors. companies might cut recruitment to little or nothing in some divisions.000 of those were gone. Merrill Lynch reduced its headcount by 24. firms like Goldman Sachs or Morgan Stanley regularly cull five percent or more of their least-performing employees. Although most investment banks cap salaries at around $250. In tough times. many others remain unconvinced.” Graduate Recruitment: A Variable Flow These characteristics apply to graduate recruits as well as undergrads. Whether or not the trend holds throughout 2007 remains to be seen.000. not simply jobs – and there is a difference. This is an industry with an exceptionally flexible approach to recruitment. By 2004.” “dynamic” and “exhausting” come to mind. which include this thought: “We offer our people the opportunity to move ahead more rapidly than is possible at most other places. Traditionally. Reach the office of managing director and you can make a fortune and retire young. the company had 25. Wall Street dramatically increased its hiring and boosted pay by as much as 50 percent. After all. Some sectors are healthier than others. a New York-based compensation consultant. and the rest is down to performance. financial firms have hired wildly when business was good and fired just as wildly when results turned down. Goldman Sachs lists its 14 Business Principles. “If you’re a senior person. “Financial service firms have suppressed salaries in favor of performance-related bonuses for the last 20 years. Ted Moynihan. The rash of layoffs in the years after 2000 followed a manic hiring spree in the late 1990s.000 employees. In fact.

“Futures” are simple examples of structured products. As more institutional money is invested with hedge funds.D. 7 Hedge Funds There’s no other way to say it: Hedge funds are hot right now. Other routes into the area include law or the regulatory divisions of large accounting firms. a Manhattan-based financial services recruitment firm. several areas of the financial services industry are benefiting from underlying structural growth. More complex products usually spur a greater demand for employees. trading or capital markets roles. Inc. most investment banks are driven by their pursuit of better investment returns: Neither the equities nor debt markets have performed all that well in recent years. in a mathematical subject.efinancialcareers. corporate banking or accounting. leveraged finance teams put together a debt package to meet the company’s needs. As a result. modeling. bridge financing. most positions require at least a few years of experience.” Leveraged Finance Recruiters also report interest in leveraged finance specialists. leveraged buy-outs. run graduate training programs for compliance specialists.” which allows buyers to hedge themselves against market-to-market risk. the sector offers plenty of opportunities for people to work in risk management.S. At junior levels. Structured Products Structured products—such as complex “derivative instruments. they have increasingly sought staffers with experience in sourcing. When it comes to hiring structured-prodCareers in Financial Markets 2006-07 . regardless of whether or not they have an MBA.. Though your first job won’t be as a hedge fund manager. as well as broader default risk. like PricewaterhouseCoopers or Ernst & Young. “Not only is there a premium for compliance people now. Traders who work with structured products will typically need a master’s degree.” he says. Compliance Greater scrutiny by regulators. clearing and settling transactions. Operations professionals could work in derivatives as well.. in the words of one recruiter. structuring and negotiation – the very skill sets possessed by investment bankers from top firms.” says Marie Rice. valuation. so derivatives based on underlying products have provided some of the only avenues for investors to achieve higher rates of return. Usually using a company’s assets as security. especially in the U. “they need the instincts and experience of an investor. a senior consultant at Jay Gaines & Company.” Some firms.” meaning financial instruments that are based on underlying stocks. such as Goldman Sachs and UBS. Still. compliance or information technology. or even a Ph. ask yourself: Which areas are now experiencing either long term or structural growth? uct specialists. bonds. has prompted securities firms to hire more compliance staff to help ensure their departments are adhering to the law in both letter and spirit.www.” So. both to work on existing products and to develop new ones.com the economic cycle will favor some divisions above others. providing financing for acquisitions. It’s likely to remain one for some time. currencies or assets—is another hot area. the job of compliance is getting bigger. “However. the funds have moved into private equity and other forms of direct capital. new graduates can work their way into the sector by taking positions in credit analysis.. growth and distressed situations. At more senior levels. “The market is demanding. more than ever. 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. Though demand is strong. the funds seek bankers who have already made the jump to the buy side because. recapitalizations. people who can sort through the complexity of the law and translate that into specific initiatives across the corporation. Those who ultimately want to work with structured products should train in sales. A more exotic example is a “first-to-default basket. regardless of the point in the cycle. These are instruments which provide buyers with the right to purchase a particular financial product—such as a stock—at a specified date and at a specified price. hedge funds want people who have completed an investment banking analyst program or have a few years as an associate under their belt.

the more senior the M&A specialist. selling and merging with other companies. The teams involved often work days. M&A specialists need to be articulate. At the same time. earning millions of dollars in fees for their firms and hefty compensation packages for themselves. A survey conducted in the first half of 2006 by Financial News and IntraLinks. remember that the number of graduates applying to a bank’s M&A department often outstrips the number of available positions. the documents that outline a bank’s ideas for a particular transaction. They counsel their clients on all aspects of buying. Still.S.6 No.Mergers and Acquisitions Big deals. which is a good thing for investment banks. M&A Careers in Financial Markets 2006-07 . the more contact he or she has with clients.9 141.” says Allan Walker.4 40.0 44. regulatory filings and other documents – all produced under deadline pressure. They’re usually a part of a broader corporate finance group that guides clients on the processes and strategies involved in raising the money U. of deals 39 37 32 9 1 40 9 30 32 35 needed to finance a transaction. Japan representative for Eban. disclosures. he explains. They travel the world. “The role of an M&A specialist is a complex one and requires a combination of skills and personality traits. a maker of chemical and materials catalysts. often working under pressure with tight deadlines. Once a transaction is underway. disclosures.8 39.4 64. or one firm selling itself or one of its business units (a disposal).8 89. a provider of secure online workspaces to the financial services industry. with strong verbal and written communication skills that enable them to convince key stakeholders to move one way or another. “It requires tenacity. Smaller transactions—those worth between $20 million and $150 million—are usually handled by the M&A divisions of large accounting firms. London and New York. patience and discretion. For example. engaging in “blue-sky thinking” and sharing that vision. Generally. Analysts—the most junior of investment bankers—spend much of their time creating pitchbooks. found that 96 percent of Europe’s banks planned to hire junior employees for their M&A departments.. transoceanic financial exchange. junior bankers are kept busy assembling the financial information and legal documentation required for its completion.2 136. Others have the potential to change the face of a global industry. Some transactions are straightforward. long hours. an executive search firm with offices in Asia. nights and weekends. “The role entails hard work and long hours. Putting together an M&A deal is no small task. Announced M&A First Half 2006 Advisor Goldman Sachs Lehman Brothers Citigroup Evercore Partners Rohatyn Associates JPMorgan Lazard Merrill Lynch Morgan Stanley Credit Suisse Source: Thomson Financial Value $bn 156.5 107. M&A is a popular choice among business school graduates. regulatory filings and other documents – all produced under deadline pressure. Roles and Career Paths Mergers and acquisitions bankers are advisors. lots of travel – and lots of money Mergers & acquisitions is about doing deals: the deals that join two companies as equals (a merger). as happened when the New York Stock Exchange and its European counterpart Euronext proposed becoming a single.” Most large investment banks only become involved when a transaction will be worth $150 million or more. result in one company being taken over by another (an acquisition). M&A specialists are the people who make these transactions happen. Just one merger can require reams of contracts. was purchased by the German chemical company BASF AG. 8 Just one merger can require reams of contracts.0 38.” Walker says. a pitchbook might sketch out whether a client should purchase a company and then detail how the deal should be financed. such as when Engelhard Corp. They also should be able to conduct in-depth analysis of a company’s financial situation and industry position while keeping in mind the macro view.

Principal. VPs have little compunction about asking for pitchbooks to be rewritten. They travel the world. when a client buys into a pitchbook’s proposals the team speeds into execution mode – seeing the deal through to completion. who are one level higher in the banking hierarchy. Supervising the associates and analysts are the vice presidents. This is a time-intensive business. What advice would you give to junior staffers? In general. By anticipating change or people’s needs. I worked on audits of public and private companies in a variety of industries. oversee the analysts’ work and check their models to make sure they’re correct. 9 Skills and Qualities • Appetite for hard work • Analytical ability and statistical aptitude • Team-working prowess • Good communication skills and self-confidence • Strong attention to detail Careers in Financial Markets 2006-07 . RA Capital Advisors How did you come to work in M&A? My previous experience was in public accounting: I worked at Arthur Andersen in San Diego for 3 1/2 years. as well as assisting clients who are looking for private financings. when you work as a junior analyst. earning millions of dollars in fees for their firms and hefty compensation packages for themselves. You’ll go a long way in the M&A world if you tend to perform up to a higher role rather than simply the title you possess. I have two children in elementary school. RA Capital was one of Andersen’s clients. People shouldn’t go into it if they want a lot of free time. a pitchbook comes to nothing. I typically oversee the process of finding the right buyers. On the sell side. But you don’t want to get burned out. It’s very common for public accountants to migrate over to work for one of their clients. Sometimes. and it’s important that I see them grow up. M&A specialists are the people who make transactions happen. you can demonstrate that you’re thinking as a vice president or director would. What advice would you give to students hoping to break into the business? An internship is the best way to determine the areas you’re interested in. such as those who are most likely to pay a premium. What’s a typical day like for you? If we’re working on a buy-side engagement. Is there anything else you think is important? A career in investment banking requires a significant commitment. Kathleen D. defense and not-for-profits. even if it means the associates and analysts stay up all night to make the changes. and so are the main points of contact between the bank and the client. such as health care. earn an MBA and get into it later. but it’s important to maintain a balance in your life. life is too short to ignore everything else. it may include overseeing the screening process to try to find the most attractive targets for a client. A client may not go along with the team’s suggestions. VPs report to directors and managing directors.www. while others work for a while. I get very involved with negotiating various aspects of transaction agreements. Particularly. But overall.com Profile analysts often conduct basic industry research and build the financial models used to price the companies concerned. my job is 90 percent deal flow. and there’s no set way to enter the field. Associates. Scott. Some people jump right into investment banking. I also deal with some administrative. While it’s important to be committed to your career. the people who “own” the client relationship. It requires you to have a well-rounded skill set. A career in investment banking is very demanding. it’s difficult to take time off because of the pressures to perform. However.efinancialcareers. it’s important in M&A and investment banking to try and stay one step ahead of the fray. or it might engage a rival bank. I may be strategizing on how to best position a client in order to maximize value to its shareholders.

To put it simply. the second quarter of 2006 was the strongest since 2000: Volume rose to $173 billion from $100. Among them are equity-linked products. Bonds are traded on the debt capital markets. they allow them to share in the company’s profits when it pays dividends.8 billion. and derivatives. often specializing in originating. a bank’s capital markets division can issue more comlex products Stocks.7 percent during the first half of 2006. global equity and related volume rose 45. Roles and Career Paths Bankers working in the capital markets division cover a range of tasks. the bondholder who is eventually repaid is likely to be different from the investor who purchased the bond in the first place. In addition. which are bonds that can be converted into equities at a pre-arranged price. stocks can be sold from one investor to another. it’s up to syndicators to prepare the market for the sale. Often. Merrill Lynch and UBS. For investors. Because these interest payments take the form of fixed cash sums paid at regular intervals. bondholders receive interest payments in return for the service of loaning money to the issuer. Even with the stock market weakening. the bond markets are sometimes called fixed-income markets. Stocks are also known as equities. medium and long terms. which are financial instruments based on an underlying product such as a stock or other asset. Then. First. stocks earn money in two ways. Structuring means assembling products. a firm’s value is measured by multiplying the dollar value of each share by the number of shares outstanding. 10 In addition to stocks and bonds. According to Thomson Financial.” They’re a form of loan that carry a commitment for repayment at a designated point in the future.” represent ownership interest in a company. By contrast. Once the structuring work is done. meeting clients to learn about their financing needs and persuading them to engage their bank’s services. Between the time they acquire a bond and its redemption date. these financial products are used by companies and institutions to raise money that will fund any number of business activities or financial obligations. or “ECMs. while syndicating encompasses preparing products for sale to investors. They calculate the best price range. investors pay for any shares they buy.Debt and Equity Capital Markets The ‘factory floor’ of the financial markets The capital markets are the area where equity and debt products—more popularly known as stocks and bonds—are created. which trade on the equity capital markets. Similarly. bonds are known as fixed-income products. Originating is another way of saying creating a financial product. structurers are distinctly desk-bound: They spend their time creating complex products to suit the financing needs uncovered by origination specialists. a stock’s value is often tied to how well investors believe the company and its stock will perform over the short. shareholders will usually want to sell their stock at a higher price than they paid for it. their shares’ value rises or falls based on the performance of the company and the perception of investors on the value of the stock. Skills and Qualities • Analytical ability and statistical aptitude • Awareness of how markets work • Strong communication skills • Ability to manage multiple projects • Perseverance Careers in Financial Markets 2006-07 . Obviously. When a company offers stock. Created by investment bankers in the capital markets divisions of firms like Goldman Sachs. assess demand and make sure the correct documents are in place.5 billion during the second quarter of 2005. In addition to stocks and bonds. sold and bought. Dividends are essentially a share of the company’s profits that are divided among its stockholders. to $321. In other words. or “DCMs. a bank’s capital markets division can issue more complex products. structuring or syndicating an issue. Origination specialists are usually senior bankers who spend much of their time on the road.

From day one. we foster interaction at every level. With no job titles or executive areas. We also fund job-related external training and study towards professional qualifications. the financial information platform that is our core business.com . you can expect real responsibility. We recruit from any background and from any discipline. Our structure is meritocratic. We have over 8. they are treated with the respect that they have earned by helping us to become a world leader in our industry. At Bloomberg. Vacancies also available in Europe and Asia BE DEVELOPED Career development opportunities at Bloomberg are wide-ranging. or join one of our media teams distributing the latest financial and business news. You will work with many business areas and people at all levels. Training is ongoing in every team. You can get involved with the BLOOMBERG PROFESSIONAL® service.bloomberg. you learn by doing and by gaining responsibility. news organizations. BE VALUED A determination to communicate is built into our culture. Leading corporations. Our products drive decisions that affect millions of people and billions of dollars worldwide every day. The result is that our company is geared towards progression and advancement. Apply online: APPLICATION DEADLINE: Year-round recruitment careers. We break down barriers between people and encourage communication by bringing colleagues together. BE CHALLENGED We offer graduates a variety of areas in which to perform. All employees can enroll onto Bloomberg University classes to improve their knowledge across a multitude of subject areas. data and analysis. We demand much of our people. meaning that there is no hierarchy or barrier to communication. You will be evaluated solely on your own performance and the contribution you make to our business. We work in international teams and alongside people from every culture and background on a daily basis.VACANCIES FOR GRADUATES Finance IT Media Research & Development Sales Internships Bloomberg is the world’s leading provider of real-time financial news.000 employees embodying the excellence and intellectual curiosity for which we are known. financial professionals and individuals in more than 127 countries rely on Bloomberg. All this means that we create an environment in which you have unparalleled opportunity to excel.

To succeed. Clients often need a bit of encouragement before buying a product. 12 and sell the appropriate stocks or bonds after an order has been signed. Bernstein Goldman Sachs JPMorgan Securities Credit Suisse First Boston On the other hand. and salespeople must be able to call them for a chat about market conditions as easily as to plug 20. The outlook for hiring and compensation varies according to the type of financial product a trader specializes in. and investment banks continued to make hefty profits from their trading operations. there may be opportunities for professionals who can combine trading skills with the ability to analyze and repair algorithms. Here. Traders make snap decisions worth millions of dollars. many of Wall Street’s traditional trading jobs are feeling the heat from an increased reliance on algorithmic trading and technology. Once they’ve signed an order. In mid-2006. and spend their days ensconced before an array of computer screens that allow them to monitor the price movements of stocks. Firm Bear Stearns Lehman Brothers Citigroup Merrill Lynch Morgan Stanley UBS Sanford C. as well as during the hours before and after trading. Sales Salespeople spend their time working the phones. who buy the products on the appropriate market. pension funds and institutional investors. salespeople must be charming and persuasive. as well as real-time news and research reports. advise them and carry out their trading strategies and instructions. bonds. calling clients from the moment markets open until the moment they close. Trading and Research Winning and losing in the secondary markets After a financial product is launched. traders and researchers sign-up clients.000 shares of a company’s stock or the latest government bond. Wall Street’s traditional trading jobs are feeling the heat from an increased reliance on algorithmic trading and technology. Trading The people who actually buy and sell products on the secondary markets are the traders. Understanding when to use algorithms. commodities and other financial products. clients involved in these markets are high-net-worth individuals. Generally. they can buy 2005 Best Overall Sales Team Rank 1 2 3 4 5 6 7 8 9 10 Source: Institutional Investor How successful independent research houses will ultimately be remains an open question. the salespeople pass it on to traders. Lehman Brothers and Credit Suisse were among the banks hiring traders as they built new commodities teams. these professionals call clients to recommend securities. when a trader has to step in to complete an order. Like salespeople. salespeople. Between the salesperson and the trader exists a hybrid: the sales-trader.Sales. and can make substantial profits in the process. Like traders. Some executives estimate the sell side has lost about a third of its trading jobs as decimalization narrows spreads and many routine execution tasks are automated. and how to monitor algorithm performance through the trading day are skills that could become increasingly important on trading desks. it’s traded on a secondary market. They get up before dawn to be at their desks when the markets open. Research Researchers produce written reports that salespeople use Careers in Financial Markets 2006-07 . In the long run.

Foreign Exchange Options Trader. What do you like most about trading? The learning curve remains steep and it’s a true meritocracy. And. were barred from the securities industry for life. A lot of money is lost from miscommunication. risk manage and look for new trading ideas simultaneously. In 2002. continued on next page Careers in Financial Markets 2006-07 . economies and other matters that might provide insight into the proper valuation of financial instruments. What skills and qualities do you need to excel in this field? You need an excellent work ethic.. statistics. students should highlight an interesting fact about themselves on their resumes.S. when I eat lunch at my desk while staring at the screens. JPMorgan What made you choose trading as your career? I learned about trading when investment bankers came to my school to speak to us. so besides having the usual requisites of being smart and having a good work ethic. And you need to be able to handle long term bouts of stress. I have to quote prices non-stop. Since researchers aren’t any longer involved with attracting business to their firm’s corporate finance departments. I wrote how I was flying planes before driving and that sparked more conversations than anything else on my resume. Any words of advice for the aspiring trader? A trader spends a lot of time with his or her colleagues. etc. 13 Firm Lehman Brothers Merrill Lynch Morgan Stanley Bear Stearns Citigroup UBS JPMorgan Sanford C. In recent years. markets become quiet and there is more time for me to read research and figure out my profit and loss for the day. A good trader gets promoted and compensated commensurately. they’re paid less than they were before.m.efinancialcareers. Two well-known researchers. Following the Spitzer investigation.m. How successful those independent houses will ultimately be remains an open question. You also need to be both book smart and street smart. Don’t put the usual hobbies like poker or watching movies. talking to company directors and participating in conference calls where executives discuss their annual results and their expectations for the future. I wanted to be in a job that allowed me to learn something beyond what I had learned in skill. some banks have moved some research operations overseas. Excellent communication skills are a must.com Profile to make investment recommendations to clients. taking advantage of lower costs and qualified talent. without much politics interfering with that process. Bernstein Banc of America Securities Credit Suisse First Boston Goldman Sachs they were accused of producing research that was biased in favor of their corporate finance clients. As London leaves for the day.—into one job. programming. Henry Blodget of Merrill Lynch and Jack Grubman of Citigroup. They spend their time scouring balance sheets. and it starts all over again the next day. I leave work at 5:30 p. and fewer of them have jobs. I also like how it requires a person to synthesize their knowledge and skills in many disciplines—like geo-political knowledge. Can you describe a typical day? I arrive at 6:45 a.www. Researchers also analyze interest rates. when markets in London are starting to move again with New York just coming in. New York Attorney General Eliot Spitzer imposed total fines of $1. I don’t stop to catch my breath until noon. yet allowed me to apply what I had studied. For example. researchers have had their share of bad press.4 billion on 10 U. banks after 2005 Best All-America Research Team Rank 1 2 3 4 5 5 7 8 9 9 9 Source: Institutional Investor Damien Loh. the linking of research to use of banks’ other services was banned and research houses independent of the banks have sprung up as a result.

While insiders say Wall Street has used such “desk analysts” for years. a trader might work with foreign exchange derivatives or corporate bonds. However. A handful of elite traders—called proprietary traders—buy and sell on behalf of the bank itself. Once a client places an order. Salespeople tell flow traders what clients want to buy and sell. or the sector they specialize in. the flow traders must make the trade at the agreed-on price. Roles and Career Paths Traders. they must sell the product to the client at a loss. Lehman Brothers. 2005 Best Equity Trading Desk – NYSE-Listed Rank 1 2 3 4 5 6 7 8 9 10 Source: Institutional Investor Firm Lehman Brothers Merrill Lynch Citigroup Bear Stearns Morgan Stanley Credit Suisse First Boston Goldman Sachs UBS Liquidnet Banc of America Securities Careers in Financial Markets 2006-07 . if prices fall. has reportedly pulled analysts from traditional composition duties to dispense their advice directly to client reps while sitting in the sales room.2005 Best Equity Trading Desk – Nasdaq Rank 1 2 3 4 14 5 6 7 8 9 10 Source: Institutional Investor Continued from previous page Firm Lehman Brothers Merrill Lynch Morgan Stanley Citigroup Bear Stearns Credit Suisse First Boston UBS Goldman Sachs Banc of America Securities Liquidnet At least one bank. advancement is all about performance. For salespeople and traders in particular. salespeople and researchers can be categorized according to the products they trade. There are two fundamental types of trader. If they don’t act quickly and prices rise. recently they’ve been able to earn larger bonuses by coming up with trading ideas the desk can successfully execute. while a salesperson might sell equities to pension fund investors. But the majority are flow traders who buy and sell financial products on behalf of their bank’s clients. A researcher might specialize in analyzing the stock price of oil and gas companies. and flow traders tell salespeople whether a particular trade is possible at a particular price. the types of clients they sell to. the firm sells to the client at a profit. For example.

where we provide investment advice to the buy side’s network of retail brokers and institutional investors. too. I spend a lot of time on the phone and also visit clients several times a year. Managing Director.efinancialcareers.com Profile 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 • Work well under pressure • Think on your toes • Math aptitude Research • Innovative and decisive • Ability to assimilate information and take an original view • Excellent communication and relationship skills • Analytical ability and statistical aptitude James Janesky. comprised of independent work and outside communications with companies. I decided to work on the sell side. Earnings season is a rigorous period and occurs four times a year. In between top-line revenues and bottom-line earnings per share. You have to make difficult decisions. conduct supportive research. What do you think people should be reading? To work in equity research. It’s the means by which we communicate new information to clients. Primarily. it’s critical to be reading financial publications such as The Wall Street Journal and the New York Times business section. 15 Careers in Financial Markets 2006-07 . I typically follow 13 stocks. I developed an interest in equity research between my first and second year. it’s important to read industry publications. You must be passionate to be a sell side analyst. I write a lot. and attend them. I did an internship with Shell Royal Pension Fund. Ultimately. I interact with corporate managers and independent contacts to perform due diligence on companies. we make decisions as to whether individuals should buy.www. like missing birthdays and recitals. sell or hold a stock. speak at conferences. there may be any number of things we help interpret for investors. What’s a typical day like for you? My day can vary depending on the time of year. We evaluate what companies have reported and evaluate the quality of those earnings. Ryan Beck & Co How did you come to work in equity research? I graduated from Penn State University in 1984 and worked for six years at Macy’s before I returned to business school at the University of Houston. There is heavy travel. Also. I am interacting with clients. What advice would you give to students hoping to break into the business? The most important thing for anyone is to have a passion for the work. and found it great to be interacting with executives at companies and tracking fundamentals about stocks and investments. We visit companies. Since these publications won’t cover all types of small-cap stocks. I spend my day doing due diligence on companies. The hours are long. I finished graduate school in 1993 and worked in research for several firms before joining Ryan Beck.

mathematics and programming.” published in the May 2004 edition of Risk.” says Derman. “If you publish interesting work and develop the necessary Skills and Qualities • Strong mathematical. programming and finance skills • Ability to work in a fast-paced environment • Keen intuition and excellent communication skills Careers in Financial Markets 2006-07 .” wrote Dr. the Global Association of Risk Professionals or the International Association of Financial Engineers.” Williams says it’s also a big plus to have a work history that relates to the field in which you’re interested. founder of the New York-based Succession Group. “But the references will be key. that you have strong references from your professors. but rather quants that possess excellent communication skills and can interact well with others in the business. Go to practitioner seminars and industry conferences. A quant who can balance the esoteric nature of his or her job with relating to the rest of the business is an attractive candidate for advancement into a management role. would make a candidate more attractive. Quants develop mathematical models and implement statistical tools to assist in trading and risk management. Programming skills. agrees that solid references can catapult a candidate over the preference for Ivy League candidates. leader of the quantitative trading and analytics practice at recruitment firm Huxley Associates. It’s an attempt to model the world or markets and people. though having gone to a top school certainly helps.” Rivera says. With the growth of the derivatives industry and the increasing complexity of the financial models used in the markets. a job market consultant with New Yorkbased Lee Hecht Harrison. Another attractive academic qualification is computer science. Derman recommends that on top of academics. says this is actually one of the few areas where your prospects are strong even if you don’t have an Ivy League degree. It’s not a field for brilliant idiot savants. Statistical arbitrage is a style of management that employs complex statistical models that try to capture small abnormalities in a security’s intraday return. financial engineering or quantitative finance. however.” Rod Williams. If you can program. “There is demand for more and more quant researchers. you have to be a lot smarter to earn your keep. Recruiters say demand and pay for quant researchers is also set to rise dramatically over the next year. “Quantitative finance is in essence a multidisciplinary enterprise.” quantitative analysts are highly sought after by investment banks and hedge funds. A job in front office or operations. especially if the candidate has high marks. 16 Roles and Career Paths Can you break into quantitative analytics without an Ivy League education? Deborah Rivera. Read The Wall Street Journal and Risk. follow market rates and spreads.” Being brilliant with numbers and intellectually curious isn’t all you need to succeed.” There is a large demand for quants to work in statistical arbitrage. It’s important. and you need a little wisdom and experience to know what can work.” says Hemendra Rai.s in physics or mathematics with no formal training in financial engineering. you must learn finance.” he says. If you can’t. for instance. you also learn the realities of the financial world. “However. or a basic understanding of computer language at the very least. “Join the Professional Risk Managers’ International Association. Once upon a time. Firms are not just looking for individuals with sizable brain power. quants consisted of Ph.Quantitative Analytics It’s about more than just numbers Known to all in the industry as “quants. the aspiring quant can now choose from a number of credible master’s and doctorate programs in mathematical finance. Emanuel Derman. Firms will also look at the quality and visibility of your published work and its potential relevance to Wall Street. in “Finding a Job in Finance. relationships. “To be effective. a professor at Columbia University and director of its financial engineering program. you can always add value. “Quantitative finance isn’t mathematics or chess. you may very well excel in this area.D.” Williams says. faculty members with great credentials and who are highly thought of in the quant/risk world can be a big help in securing interviews. “The top tiers definitely help open more doors. “Listen to the people who live by their models. are essential for many quant positions.

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the fund might buy an option giving it the right to purchase an agreed-upon quantity of the company’s stock for a set price on a particular date in the future. Why? Because the fund can buy the shares at a price below the market. • Global Macro: Instead of focusing on the movements of particular stocks. long-only funds. If the option is set at a low enough price.” 18 There are hints hedge funds may be losing their allure when it comes to attracting staff. For example. However. a fund that invests in shares of Company X risks losing out if the share price falls. then resell them at market value to recover the losses on its initial investment. markets and financial products a hedge fund invests in. Hedge funds are considered risky because they put money into illiquid investments and can hold long or short stock positions. acquisitions or bankruptcies. do it every day. Despite posting the biggest-ever gain in assets under management in 2006’s second quarter. some investors put their money into funds of funds. In addition. During the summer. their perils—across several different hedge funds. the fund will profit even if the stock’s price drops. Although hedge funds have enjoyed impressive growth during the early part of the 2000s. which spread their money—and supposedly. • Event-Driven: Managers using this strategy aim to profit from one-off events. To counter this risk.Alternative Investments The mysterious and megabucks world of hedge funds The term hedge fund comes from the idea that money managers can hedge their bets to ensure a profit regardless of whether the market goes up or down. One recruiter commented that most junior bankers now prefer to spend time in the corporate world before moving to a hedge fund. buying and selling financial products according to analysts’ recommendations. they buy the instrument back at a lower price and return it to the lender. this is because a variety of other investment vehicles have become available. In part. which offer competitive returns with lower management fees. • Sales and Marketing: Meeting with investors to help sell the strengths of the fund. What distinguishes hedge funds from traditional fund managers is their willingness to push the boundaries of normal investment techniques to achieve unusually high returns. investors can now take advantage of private equity. Most hedge funds follow a particular investment strategy. To offset that risk. which has led to a slowdown in hiring. “Hedge fund jobs used to be a big selling point. What distinguishes hedge funds from traditional fund managers is their willingness to push the boundaries of normal investment techniques to achieve unusually high returns. a number of media outlets reported on traders and fund managers who returned to traditional investment banks after leaving to dip their toes in the hedge-fund waters. some recruiters speculate that a round of consolidation is in store for hedge funds. such as mergers. their profit comes from the difference between the two prices. Careers in Financial Markets 2006-07 . When the price falls. “But people now are saying they want a big name bank on their CV for two or three years at least.” he says. Roles and Career Paths Jobs in hedge funds tend to fall into four categories: • Analysis: Analyzing the companies. for example. • Trading: Executing the investment strategy. then sell them. global macro funds create and manage their portfolios based on their reading of worldwide political and economic trends. Because they’ve sold high and bought low. The most popular are: • Short Selling: Short sellers borrow assets they believe are overvalued. new money invested with them has begun to decline. there are hints hedge funds may be losing their allure when it comes to attracting staff. For example. Banks. hedge funds aren’t the only financial institutions to employ hedging.

At other funds.7 167. The ease at which stocks are moved in and out of the portfolio is determined by how much confidence the decision maker has in the person making the recommendation. vice versa.9 128. at times. it would be that you must be able to stand up under fire and have the conviction that your recommendation is the right one for what your firm wants to accomplish. don’t turn people off.9 136. it can be garbage in. getting a job with a marquee name early would help. and you can’t be a shrinking violet. they prefer to hire them away from investment banks. and think in terms of what you can deliver for someone who can possibly hire you. However. have a hot hand. So you have to be prepared. to have a depth of knowledge of specific firms. to get along with the people you work with.0 454. of course.efinancialcareers. it’s not unknown for analysts to become traders.9 131.1 12. Most are small organizations without the time or resources to train graduates themselves. It may have allowed my career to advance at a quicker pace. and to rise to challenges when necessary.1 20. Return % 264. Steven Marotta. Instead. The atmosphere of hedge funds are largely dictated by the personalities that control them. too.3 64. You must have the ability to communicate your ideas. The pedigree of the school helps. Developing a network helps. On the other hand. What advice would you offer to students? Get good grades…and go to class. Wyper Capital Management What is it like working for a hedge fund? It’s hard to generalize because every firm is different. Careers in Financial Markets 2006-07 . I’d have tried to begin my career on the buy side at a well-known shop such as Soros or Fidelity.2 152. at the end of the day. The bad news is that hedge funds rarely take graduates fresh out of school. You must have the information at hand to back up your recommendations. so whatever situation you land in. Most roles are quite distinct: If you join as a risk manager. there is one decision maker.com Profile • Risk Management and Back Office: Settling trades. If I had to do it over again. Many small funds outsource these tasks to the prime brokerage divisions of investment banks. I think that if there is common denominator for stock analysts.0 571. that tends to build confidence – and. What skills are important to be successful as a stock analyst in this business? I think it’s important to have a high degree of familiarity with the names you are responsible for.6 124.3 19 Skills and Qualities • Math aptitude • Adaptability • Creativity Top 10 Hedge Funds Ranked By 2005 Return Fund Name Dejima Fund Ltd Gazinvest Fund Prosperity Quest Fund Phalanx Japan AustralAsia Multi-Strategy Fund Ltd Blue Sky Japan LP Russian Prosperity Fund (Euro) Prosperity Cub Fund Russian Prosperity Fund USD (A) Russian Prosperity Fund (C Shares) Vision Opportunity Master Fund Ltd Compiled by MARHedge Source: The Barclay Group Interpersonal skills also are very valuable.4 5. working out a hedge fund’s risk exposure and making sure everything flows smoothly.www. Not everyone can work at those types of firms. That is something I underestimated coming to this side of the business.4 237. but if you aren’t in one of the top schools.4 81. you will be challenged on it. Control your destiny by knowing what to do: Don’t be arrogant. If I pick a bunch of right things. Research Analyst. When you are pitching a name. the chances of becoming an analyst are slim. Here.8 172.9 Assets $m 92.8 133. the decision-making process could be more collaborative.0 142.2 586. make the best of it. garbage out if your assumptions aren’t accurate. While I can’t speak for what happens at other funds. Solid modeling skills are important to discovering the levers in a company’s operating model.

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Others. to take advantage of what they perceive as significant opportunities in the corporate banking marketplace. and corporate bankers will bring in the expertise of their capital markets colleagues when it’s necessary to serve the needs of their customers. including such areas as technology and human resources. Bankers working in capital markets help companies raise money by issuing equities or debt. Bank of America. banks provide services to streamline and manage deposits and disbursements. governments or other big institutions need in order to function from day to day. and prospective clients. says it leverages the knowledge of in-house of industry experts with product specialists “to deliver customized financial solutions.efinancialcareers. such as securitization – in which a company sells bonds based on the money it expect to earn in the future from assets like rented shop space or a back catalogue of popular music. Goldman Sachs. Neither specialty works in a vacuum. If a company exports its products.) Roles and Career Paths While the career path for corporate bankers can vary from institution to institution. corporate banking requires an understanding of complex financing methods. Corporate banks also offer positions in operations. to determine whether they’re likely to pay back any loans that are made to them. Often. Corporate bankers typically help clients obtain money through loans. who are responsible for making the actual lending decisions for a relatively small group of customers. To do this.600 corporate and investment banking staffers during the first eight months of 2006 to strengthen their businesses and maintain surging profits. Skills and Qualities • Analytical ability and statistical aptitude • Strong communication skills • Ability to grow and maintain client relationships • Demonstrable drive Careers in Financial Markets 2006-07 . Many institutions offer corporate banking customers services to support retirement plans. benefit plans and payroll. and a strong appreciation of the risks of default. From the credit analyst’s chair many bankers move up to the ranks of relationship managers. many start out working as credit analysts. managing the impact of foreign exchange rates or determining how to finance the construction of a new theme park.com Corporate Banking Some see consolidation. the roles of corporate bankers and capital markets specialists overlap. corporate banking requires an understanding of complex financing methods. (In fact. manage cash and minimize fraud. These services range from the relatively simple business of issuing loans to more complex matters such as helping to minimize taxes paid by overseas subsidiaries. 21 Increasingly. for example. Not interested in relationship management? Then consider treasury management. UBS and HSBC—offer training in corporate banking. These folks spend their time reviewing the balance sheets of clients. European banks recruited more than 3.” The notions of customized service and specialized expertise are common among corporate banks. The job requires an intimate understanding of each client’s strategy. Increasingly. corporate bankers might also arrange a process of international payment or put together trade finance packages that help ensure the firm is paid by its foreign customers. Some institutions organize teams of bankers around specific areas of industry expertise. Various banks—including Citigroup. others opportunity Corporate banking is the broad term given to the banking services that large companies. have added staff and other resources Services range from issuing loans to determining how to finance the construction of a new theme park. the sector has changed considerably as participants look to become bigger as a way to better compete. such as the Royal Bank of Scotland. In the past five years. Professionals in this area help businesses make sure they have the cash flow to pay for goods and services and help navigate fluctuations in the value of their foreign currency holdings.www. Some banks have sought to strengthen their services through consolidation.

For example. The challenge faced by banks and their clients is similar. the big foreign-exchange story has been the weakness of the dollar.-based company that holds hundreds of millions of euros could face huge losses if the euro drops even minutely against the dollar. These were compiled from the 2. a U. Placings listed to the right detail the voting in separate client segments. In the later part of the year. with the consulting and research firm Greenwich Associates reporting that global currency trading volume rose nearly 14 percent during 2005 compared to 2004.639 respondents of the survey. Have you ever bought a foreign currency before going on an overseas trip.Foreign Exchange Not for the faint-hearted Sometimes referred to as “forex” or “FX.” the foreign exchange market is all about converting one currency into another and studying global events in order to predict fluctuations in exchange rates. predict the future direction of foreign-exchange price movements. Best Bank for FX Research & Strategy Rank 1 2 3 4 5 Total votes* JPMorgan UBS HSBC Citigroup Goldman Sachs Banks UBS JPMorgan Citigroup HSBC Goldman Sachs Corporates HSBC JPMorgan UBS ABN Amro Citigroup Investors JPMorgan UBS Goldman Sachs HSBC Citigroup Many banks see emerging markets foreign exchange as being an area with strong growth potential. which was completing a build out begun in 2005. index or other investment. the market was expanding. the currency regained ground as the Federal Reserve raised interest rates. These included Bank of America. Source: fxweek. By the middle of 2006. sell high. In FX. you’ll appreciate the need to keep an eye on the relative value of currencies. Over the last few years. and so made it more attractive for international investors. which are contracts whose value is based on the performance of an underlying financial asset. and Dresdner Kleinwort Wasserstein. It’s a simple variant of the market maxim “buy low. Meantime. which lost ground consistently against the euro from mid-2002 to March 2005.” Currencies themselves are traded on what’s called the spot market. Along with them are products called futures. which allow investors to. Merrill Lynch and HSBC were both reported to have hired emerging market foreign exchange professionals during 2006. with some observers saying activity was more about upgrading than wholesale expansion or change. Working in foreign exchange means predicting whether one currency will fall (depreciate) or rise (appreciate) against another. 22 Although recruiting efforts in FX were modest in 2006. In addition.com Careers in Financial Markets 2006-07 . several banks were building their teams. If depreciation is forecast. Best Bank in FX in North America Rank 1 2 3 4 5 Total votes* Citigroup JPMorgan BoA UBS BNY Banks Citigroup JPMorgan UBS BoA BNY Corporates Citigroup JPMorgan BoA BNY ABN Amro Investors Citigroup BoA JPMorgan RBS Goldman Sachs *The companies listed under this column are placings for overall votes. a number of Wall Street firms were introducing products for individual investors who wanted to invest in foreign currencies as a hedge against the weak dollar. which was committed to growing its 150-person FX staff by 10 percent. investment banks. and many banks see the area as one with strong growth potential. asset managers and hedge funds were hiring FX professionals to work the currencies of emerging markets. salespeople and traders advise their clients to sell the falling currency and buy the one that’s appreciating. though measured on a much larger scale. only to find its value dropped by the time you arrived? If you have. Futures fall into the class of assets called derivatives.S. basically. professionals focus on trading currencies and their derivatives instead of bonds and equity products.

covering the financial markets and public sector. Computers have replaced fax machines for communications purposes. I come in and read up to see what happened in the markets overnight. sales jobs are usually divided between client types. Each day can be different. What’s a typical day like for you? Generally. FX instruments have grown more creative and complex. as indirectly it can influence portfolio and trade flows that in turn drive currencies. There are data releases and often surprises. As in other sectors. so you never figure everything out. JPMorgan Would you tell us about your role and career path? I am part of a small team in charge of creating currency forecasting for JPMorgan. with some salespeople specializing in hedge funds and others selling only to corporate clients. I work from about 6 a. I’ll look for anything that may present a trade idea. You must have a natural curiosity about the world. the foreign exchange markets make use of salespeople. studying part-time at NYU’s Stern School of Business. The Economist is my Bible on weekends.com Profile Advances in technology have made much of the work involved in FX more efficient. Global Currency Strategist. and later attended the School of Advanced International Studies at Johns Hopkins. for example. but broader. via the Hoot. I’ll lead our Hoot. what we expect to happen in the day ahead. In addition.m.efinancialcareers. What should students be reading? Everything they can. I studied journalism at the University of Florida. FX trading jobs are usually split between vanilla trading—where products are simple and trades easy to execute—and more complex derivatives trading. stay ahead of the curve. Careers in Financial Markets 2006-07 Roles and Career Paths Like the capital markets. traders and researchers. then we’ll call clients. Policymaking is also important. Researchers produce written reports used by the salespeople to keep clients informed of market developments and their impact. I later earned my MBA. exotic derivative products for clients.m.www. bond and commodity markets and how they each could impact currencies. however. I read The Wall Street Journal and the New York Times online daily. I am a news junkie. I also represent the bank to the general public. global economic issues. In FX. We’ll also have calls with colleagues to discuss different views. I’ll look for anything that may change my broader views. We’ll discuss with colleagues around the bank globally. 23 Skills and Qualities • Understanding of geopolitical events and macroeconomics • Quick thinking with a good awareness of how markets work • For FX derivatives: reasonably strong math aptitude • For structurers: patience and communications skills . Rebecca Patterson. The challenging thing about the job is that markets are always evolving. There may be a presentation with a client. you also could become a structurer who assembles complex. to 6 p. It’s important to keep up with what’s going on in the world – not just the dollar versus the yen. which involves reading and asking lots of questions. through both speaking engagements at conferences and in communication with the press. You can only hope to stay aware of how the markets change. so you have to be able to understand the equity. If you specialize in FX. Markets are highly interrelated. You never get bored in this business. Before coming to JPMorgan I worked as a journalist. with their capabilities for e-mail and instant messaging. professionals focus on trading currencies and their derivatives instead of bonds and equity products. We’ll seek out trade ideas around those numbers. My role involves research. At about 7:15. interaction with the firm’s clients and working internally with our sales and trading professionals. which is our internal intercom system.

They often travel to meet clients and prospective clients. fund management. such as bonds or derivatives. A private banker’s main role is to help clients manage their money by investing wisely and avoiding risks that might reduce the value of their assets. carefully considered advice to people who are often financially sophisticated in their own right – as well as strong-willed and sure of their convictions. more particularly. private bankers either personally manage their clients’ portfolios or offer detailed advice to help them do it themselves. A decade ago. the job of private banker is becoming increasingly complex.6 300. As different as these clients may be. specific solutions to meet them.0 520. help develop strategies for philanthropy and offer guidance on estate planning.0 183.2 177.Private Banking For financial markets diplomats with in-depth product knowledge Private bankers help rich people manage their money as privately and discreetly as possible. While that’s still the case in some organizations. which run for at least one year. private bankers need an understanding of financial products from basic stocks and Global Private Banking Managed Assets First Half 2005 Institution UBS Merrill Lynch Global Private Client Group Credit Suisse JPMorgan Private Bank Deutsche Bank HSBC Private Banking Citigroup Private Bank Wachovia Wealth Management ABN AMRO Private Banking Goldman Sachs Source: Scorpio Partnership bonds to complex derivatives. and strive to demonstrate their bank’s commitment to its customers. Those working on the relationship side are essentially salespeople. Many people entering the field have MBAs. or they manage back-office functions like human resources and accounting. Most private bankers are accepted into a training program. fixed income products. The array of potential investment products is widening. They must get to know their clients personally and be capable of delivering frank.0 155. they build relationships. most private bankers are product specialists who share their expertise in a particular asset class. On the investment side. The financial products available—such as international equities. in most banks the industry’s increasing complexity has led to a separation of the two. but many only accept those whose financial assets are worth more than $30 million. More wealthy clients are investing in hedge funds. In this area. Once a relationship banker has established the client’s needs. investment bankers to professional athletes.8 140. they all have one thing in common: They’re extremely wealthy. Many large investment banks—such as Goldman Sachs and UBS—run graduate training programs for private bankers. which bring their own set of nuance and dynamics to the wealth-management world. If you don’t find a place in such a program. To succeed in this environment. and communication skills and a strong knowledge of financial products are keys to success. private banks seek customers with at least $1 million to invest. Their clients can be anyone from chief executives to property tycoons. investment specialists come in to create detailed.0 1040. the markets are becoming more volatile and the impact of the economy’s ups and downs is often more difficult to predict.1 150. They also offer tax and pension advice.0 187. Roles and Career Paths Private bankers work primarily in three areas: They invest money for existing clients. you might move into the sector after getting experience in corporate finance or. Today. most private bankers combined the investment and relationship roles. Typically. They spend their time building connections with clients as a way to sell their bank’s services.9 Skills and Qualities • Discretion and trustworthiness • Excellent customer service skills • Knowledge and understanding of financial markets Careers in Financial Markets 2006-07 . derivatives and real estate investment trusts (REITS) to name just a few—are far more sophisticated then they were 10 years ago. 24 AUM $bn 1301. pop stars to members of a privately run family business.

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This increased use of technology and the growing trend toward offshoring doesn’t bode well for careers in operations. Twenty years ago. Careers in Financial Markets 2006-07 . largely hidden heroes of investment banking An investment bank’s operations division is known as the back office. settlement and custody facilities to assistance in managing relationships with investors and raising new funds. The more efficient a bank is at conducting its business. Because of this. Indeed. 26 Operations provides support functions throughout the bank. In large investment banks. On the other hand. as many operations specialists mature. that the firm is effectively managing its risk. the operations staff doesn’t work with customers to generate revenues and profits. prime brokers can earn generous compensation. sales people. it’s certainly an area where they can lose it. offering everything from clearing.Operations The unsung. which hold securities in electronic form and transfer them electronically. In addition. Roles and Career Paths Today. staffers typically specialize in a single area. China. Fedwire and the Depository Trust and Clearing Corporation (DTCC). Ensuring that stocks or shares bought and sold by traders are exchanged for the correct amount of money is called “settling” a trade. it’s certainly an area where they can lose it. that the firm is effectively managing its risk. Along with this move offshore has come an increased reliance on technology. such as human resources or information technology. or been paid for all the shares it sold. banks are both seeking a higher caliber of employee to work in operations. Russia and Scotland. making sure everything from computer systems to hiring works smoothly. they’re largely handled by computerized systems such as CHIPS. A particularly notable area is hedge fund operations. Unlike the traders. Today.” Their jobs include everything from preparing the documentation required for a sale to making sure the bank has either paid for all the shares it bought. This involves examining the records of traders to make sure they match the buy and sell orders kept by the “counterparties. and shifting simple elements to lower-cost locations like India. or prime brokerage. These are the back offices for hedge funds. exception managers have the primary role in the clearings and settlement department. the division’s functions are so broad. opportunities are opening up for professionals in junior roles. making sure everything from computer systems to hiring works smoothly. The growing complexity and shear volume of trades—especially of derivatives. At the division’s core is the function of clearing and settling trades. bankers and corporate financiers in the front office. debt and exotic instruments—has given clearing and settlement staffs as much respect and attention as the frontline trading desks. the jobs left behind tend to be more interesting and better paid. and that invoices go out and receivables are collected.” the people with whom a particular transaction was executed. and that its invoices go out and its receivables are collected. If operations isn’t where banks make their money. People who do this work in an area called “settlements. the greater the percentage of revenue that goes to the bottom line. If operations isn’t where banks make their money. clearing and settlements were labor-intensive tasks involving a lot of forms and enormous filing systems. Instead. it provides support functions throughout the bank.

Brian Urkowitz. It’s important to always question whether or not there is a better way to do something. What advice would you give to junior staffers or students? The biggest thing is to be able to look at how things are done and ask why and can it be done more efficiently. the changed emphasis on the importance of operations is a great thing for our business. Despite their detail-oriented nature.www. we’ll have one-to-one meetings with each client service functional head about controls. Today. So. at some point you’ll likely work in some kind of strategic or project management role. clients have told us that operations is now an important factor in how they decide to do business. Later. That has made our work a high priority in the company.efinancialcareers. Then. and whether we are positioned to deal with it. Many tasks in settling derivatives trade are still done manually—trades are often confirmed by fax.com Profile When data in the electronic systems don’t match. More recently. At 4 p. it was with Europe about business growth. however. data that will tell us how about how we interact with our clients. what goes well and what needs improvement. Until recently the challenge of an operations manager was to do it cheaply without sacrificing controls.m. I am at a point where I don’t worry about specific transactions unless things go wrong. This session gathers the global Client Service team together to discuss strategy and client issues. They talk to traders who claim to have sold shares for $3 when the buyer reports the agreed-on price was $2. exception managers are the ones who work out the reasons behind the discrepancy. or to engage senior managers to make necessary changes to increase our level of quality. Next. I’ll have an hour meeting with the team to review metrics about clients and vendors. We rely on our junior team members to be able to critically analyze processes and recommend improvements. Merrill Lynch What’s a typical day like for you? It usually begins with 30 minutes of catch-up on e-mail or a morning meeting. I worry about what the business will want in the next six months or year. I will spend about an hour and a half catching up on calls and e-mail. there is a conference call about a specific client request. or chase payments from a recalcitrant overseas buyer who denies a trade ever took place. For the next hour and a half I had a client services management meeting. While electronic systems have dramatically increased the speed at which simple trades are processed. As an alumni. It falls to project managers to implement new systems and new approaches. There can be conference calls with other regions. for example—and the large number of documents involved creates roles for documentation specialists. How does your role now compare with earlier in your career? The biggest change is that earlier in my career I knew every transaction that my team was involved with. I reviewed the technology efforts for our prime broker business. Now. They work very well and are very reliable.. The sheer unwieldiness of these tasks. I was able to arrange for a group of undergraduate students to work here. Global Transactional Client Services. They want us to do it at the right price. most operations jobs have a strategic element to them: Investment banks use operations to analyze ways of making processes more efficient. Any big brokerage house has many processes that are 10 or 20 years old. I had breakfast with our summer analyst program from Dartmouth. Careers in Financial Markets 2006-07 27 Skills and Qualities • Deal with conflicts firmly and efficiently • Strong analytical and problem-solving skills • Attention to detail • Good organization and time-management skills . is putting strong pressure on the industry to adopt more automated solutions. If you stick with operations. but with greater concern about service. Instead. derivative trades are often too complex to be settled electronically.

meet investment consultants to promote their firms. The career path for someone interested in fund management should start with a college major in economics. and play a role in the development of new products. First are the passive funds. Roles and Career Paths Fund managers focus on the business of managing. implement and manage information systems to settle and report trades. Different clients tolerate different amounts of risk. manage projects and handle customer service. wheat and aluminum.S. Analysts help fund managers choose assets to invest in.S. Then they write lengthy reports to communicate their conclusions. with 35 percent expecting revenue growth of 20 percent while two-thirds forecast growth of 5 percent to 19 percent. 28 In this world. On the other hand. Professionals in operations do everything from develop. who buy and sell financial products themselves. computers make the investment decisions for these funds. They manage relationships with existing clients. profits. research analysts and operations experts. and continued on page 31 Careers in Financial Markets 2006-07 . insurance companies and unit trusts—otherwise known as institutional investors—with a view toward making it grow. Whatever their outlook. Citigroup sold its asset-management business to Legg Mason after it generated disappointing results. buying financial products in the hope their value will rise over time. many funds have outsourced the administrative aspects of their operations to global custodians. they believe. In early 2006. Most large investment banks have their own fund-management divisions. they tend to think of active fund managers. retain and motivate portfolio managers. In 2005. in early 2006 half of the chief executives of global investment companies surveyed said they expected revenues to grow by a more than a fifth over the next three years. there are two kinds of funds. They spend their time studying companies’ results and meeting with the senior management of businesses the fund might invest in – or already has a stake in. retaining talent ranked as one of the executives’ top concerns.Fund Management A game of patience. Marketers wine and dine potential clients and persuade them to invest money with their fund. These funds invest in everything from stocks and bonds to real estate and commodities such as oil. will rise over time. and internationally. and pension funds Fund managers are professionals who invest money on behalf of clients including pension funds. However. Typically. U. However. investing in instruments whose price. fund management companies also need marketers. The PricewaterhouseCoopers Global Investment Management Survey found that 55 percent of the CEOs expected revenue growth of 20 percent or more during that timeframe. so fund management firms usually run several funds at one time. which follow the rises and falls of a financial index. half of the chief executives of global investment companies surveyed said they expected revenues to grow by a more than a fifth over the next three years.S. U. They approach their work with a long-term view. investment firms were less bullish. while others offer slower growth (and less risk). firms were more likely to use both short-term and long-term incentives to recruit. sometimes called index trackers. and Deutsche Bank sold a major part of its business to Aberdeen Asset Management after senior staff left and clients started withdrawing money. Some offer fast growth (with higher risk). though these units have been pressured in recent years. When most people think of fund management. both in the U.

How can you determine which switch is connected to which bulb if you may enter the room only once? Four. How is this possible? Six. . she'll be 20 years old. How many cuts do you make? Two. a fire and a candle. You’re all alone in a deserted house at night and you only have one match. What do you light first? Now you’ve worked them all out. And working out the answers to these six conundrums could well be the start of you finding your way. The literal thinker stops at the obvious solution. and the tide goes up 6 inches per hour.Literal or lateral . In the world of finance. Cut a 100 metre length of rope into 2 metre lengths. turn the page to see if you’re right. Jenny was 17 years old. How long will it be until 3 rungs are covered? Three. the way you approach a problem could determine the career path you take. yet the difference in their meanings is paramount. Who w a job don’t h think One.b The day before yesterday.the test A simple vowel sets the two words apart. If you look beyo to find the r visit www. A 10-foot rope ladder hangs over the side of a boat with the bottom rung on the surface of the water. Take two apples from five apples and what do you have? Five. But for the lateral mind. Three switches outside a windowless room are connected to three light bulbs inside the room. Next year. The rungs are one foot apart. the obvious is merely the start. a lamp.

500 employees. After all. develop innovative products. Switch one light on for a minute.800 clients and 11 offices worldwide. You can scientifically prove new investment theories. 20 next. bgigrads.Literal or lateral . the boat rises with the tide. wants b you have to about? Two. Three. Our development program will give you the chance to contribute your ideas whether you’re an undergraduate. The match. This year she'll be 19. We have over 2. Two apples. Four. while learning about the whole scope of our business. 49. Five. At Barclays Global Investors.com Please visit www.bgigrads. This approach has made us the world’s largest asset manager. Go into the room and feel the off-bulbs.the answers One. and one of the world’s top ten active fund managers with $1. The warm one is connected to the first switch and the on-bulb is connected to the second. Never.com to find out more. or manage portfolios and continually enhance the investment process and its results. 2. We’re constantly challenging old rules and creating new ones. Master. who wants a job that you don’t have to think about? ond the obvious right answer. Six. turn it off and turn another on. . Today is January 1st. we offer unrivalled career opportunities in the financial arena to those who take problem solving to its extreme.6 trillion worth of assets under management. PhD or MBA student. Her 18th birthday was on December 31st.

so pick a few areas to gain an edge or better understand an industry. and talk to my partner on the fund. but both are focused on taking information.com Profile continued from page 28 then possibly an MBA. Learn as much as you can about business on your own. as well as how the businesses operate. I’ll meet with analysts to discuss which stocks seem worth buying.3 1.4 589. What should people interested in this sector be reading? I tell people to read major newspapers such as the Financial Times. about shortterm events that are happening at a company.www. We also visit the stores themselves. I spend a lot of time looking at financial statements. etc. It helps to connect all of the dots when assessing a company’s business. talking to the chief executive officer.4 852. to get an idea of what they’re like and how they deal with customers. The tough part is cutting through the clutter and getting to what is most pertinent.3 723.6 738.efinancialcareers. the chief operating officer and the heads of different business units. because they’ll teach you to evaluate management decisions and how they impact the top and bottom lines. We meet with a variety of companies. read company-specific information.5 1. I enjoy the balance of working with people like my partner. Also. I enjoy going into retail stores and seeing how they do business and learning about their operations.4 1. Then. 31 Source: Global Investor Magazine Skills and Qualities • Understanding of how the financial world operates • Ability to assimilate information and pick out key points • For researchers. I’ll read the current day’s news to see which companies reported earnings. excellent communication skills Careers in Financial Markets 2006-07 . numbers. read trade publications that cover them.8 Richard P Cervone.367.5 782.400. take a broad range of courses in areas such as marketing and strategy. Top Ten Largest Asset Management Firms Rank 1 2 3 4 5 6 7 8 9 10 Company Barclays Global Investors State Street Global Advisors Fidelity Investments Capital Group Companies The Vanguard Group Allianz Global Investors JPMorgan Asset Management Mellon Financial Corporation Deutsche Asset Management Northern Trust Global Investments AUM $bn 1. I’ll read annual reports. Portfolio Manager.0 790. Companies often come and visit us.050. If you have an interest in a specific industry.299. like working with financial statements. or speaking directly to company management. The first is a day in the office. such as 10-K and 10-Q filings and annual reports. The second type of day is one where we’re traveling to different companies. Also. the New York Times and The Wall Street Journal. And. Starting off as a buy-side analyst is a good first step into the working world: It’s important to have good analytical skills and use them to focus on a sector you can cover to create expertise. What advice would you give to students? Take courses in finance and anything that teaches you about the valuation of companies. it’s important to communicate a high level of enthusiasm when looking for jobs at mutual funds. an inquiring mind • For marketing experts. Putnam Investments What’s a typical day like for you? There are two kinds. It can be tough to keep up with all of them. It involves a lot of quantitative work. But there’s also a “street corner” aspect to the business. Any other thoughts? A career at a mutual fund is a wonderful career. . These will help you make independent judgments about companies. Jim Wiess.

you’ll have to earn a professional qualification such as the Chartered Financial Analyst (CFA). many consultants have stopped offering lucrative advice to asset managers. Theirs is a complex role that involves examining economic factors. as well as the timing of the pension fund’s liabilities (or pay-outs) and the likely risks and returns associated with each type of asset. In the process. since investment-consultant staff members typically begin their careers in research and move into client-facing roles only as they gain more experience. relationship specialists tend to be generalists. They help their clients determine a proper asset allocation for their goals. such as interest rate changes. While many specialists work in research and focus on a particular type of fund or investment product. they look at the fund managers’ track records and try to predict how they will perform in the future. and identify appropriate fund management firms with whom they might invest their money. They scrutinize particular funds and write reports on the strengths and weaknesses of each. who are the sector’s true consultants. Both fund selection and asset allocation also have relationship specialists. For pension fund trustees. changes in pensions and the cost of expanding research departments. asset allocation specialists create mathematical models that forecast how a client’s money should be divided among asset classes.. Roles and Career Paths Jobs in investment consulting usually fall into one of two general categories: asset allocation and fund selection. Asset allocation specialists advise clients whether to invest in equities. To help do all this. you’ll have to earn a professional qualification such as the Chartered Financial Analyst (CFA). Most investment consulting firms produce confidential lists that rank each fund manager according to his or her likely success going forward. Skills and Qualities • Analytical ability and statistical aptitude • Team-working prowess • Ability to grow and maintain client relationships • Powerful reasoning skills Careers in Financial Markets 2006-07 . Callan Associates. knowing that strong returns over the past decade don’t guarantee a fund will avoid a fall in value during the next 12 months. They often have a more senior role.Investment Consulting Strategic advisors to—and scrutinizers of—fund managers Investment consultants advise investors such as pension fund trustees on what to do with their money. BARRA RogersCasey. Fund selection specialists analyze individual fund managers and ask questions about their investment strategy. bonds. Recently. this means helping ensure the investments generate the returns necessary to pay pensions over the next 30 years or more. the sector has been pressured by competition from investment banks. At some point. private equity funds or alternative asset classes. Each hires an average of six to 12 new graduates per year. Evaluation Associates and Capital Resource Advisors. Some of the larger investment consulting firms include Watson Wyatt. Wilshire Associates. Frank Russell Co. To avoid turbulent stock markets. Hedge funds aim to produce positive returns in both falling and rising markets. many investment consultants have advised clients to switch money away from equities into bonds and higher risk alternatives such as hedge funds. To avoid the appearance of conflict of interest. 32 At some point. Most large investment consulting firms take on graduates. Mercer.

PF Magazine January 2006 IFR December 2005 Our ambition: be the best at what we do For more information on career opportunities.socgen. America Deal of the Year Infrastructure and Oil & Gas PFI.us.com E u r o C a p i t a l M a r k e t s ■ Bank 2006 of t Eur he Year omon ey 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 .com AMERICAS COVERAGE Financial Institutions Servicing Over 700 Target Corporate and Financial Institution Clients Oil & Gas and Utilities Gaming. visit https://careers.sgcib. Lodging & Leisure Media & Telecom Coordinating Product Solutions Across Select Industry Sectors Sports Aerospace Multinationals DERIVATIVES House of the Year Equity Derivatives Risk.www. IFR and The Banker 2006 N°2 FX Structured Products for Investors FX Week November 2005 Top 5 Top 3 In 30 Commodities Derivatives Product Categories Energy Risk February 2006 Americas House of the Year Equity Derivatives The Banker September 2005 In 30 Interest Rate Derivatives Product Categories Risk September 2005 FINANCING AND MARKET ACTIVITIES Best Export Finance Arranger Trade Finance June 2006 Global Bank of the Year Best Commodity Bank and Structured Commodity Bank Trade Finance June 2006 N°1 Global Securitisation in Euros Project Finance PFI 2006 N.

The money invested by private equity funds is frequently used for management buyouts (MBOs). turn them around. where managers from outside take over a firm. private equity funds do it by offering cash to businesses in exchange for an ownership stake. But don’t count on finding a job easily here: Private equity funds hire few juniors. while private equity is more often associated with MBOs and MBIs. or even sole owners. Roles and Career Paths People who work in private equity can make huge amounts of money. of the companies in which they invest. or breaking up a business and selling its assets separately. Two other factors are contributing to the boom. People in private equity can make huge amounts of money… and benefit from the kind of job security most investment bankers only dream of. independence and lack of bureaucracy. Usually. But while bankers do this by selling a firm’s stocks or bonds. In ideal situations. Venture capital and private equity are often used interchangeably. They become co-owners. and they hire almost no one straight out of college (see The Global Private Equity Club and How to Get In on page 76). juniors can benefit from a flatter. The private equity industry is booming due to the lack of trade buyers and the relative ease with which private equity firms can sell their investments at a profit. and sell their stake at a profit some years later. undertake tasks from arranging the necessary documentation to negotiating the right price. private equity returns have reached over 30 percent annually. Sometimes private equity companies engage in asset stripping. says one general partner of an equity/venture capital fund: First is the relative ease of finding low-cost debt financing – which typically makes up 50 to 70 percent of a transaction’s total purchase price. They also benefit from the kind of job security most investment bankers only dream of. Second is the fact that institutional and retail investors have provided unprecedented amounts of Typically. if it is. or immediately after you’ve received an MBA. Alternatively. where a company or one of its divisions is bought by its managers. Folks in PE like the sector’s creativity.Private Equity Requirements: experience or an MBA Like the capital markets divisions of investment banks. they invest in underperforming companies. private equity funds raise money for companies in need of cash. junior staff members handle number crunching and analyze the companies in which the fund is considering investing. trade buyers bid against private equity funds to buy underperforming rivals. Because private equity firms tend to be small. venture capital refers to the funding of new and developing businesses. But strictly speaking. In ideal situations. Careers in Financial Markets 2006-07 . 34 capital to private equity funds as a way of diversifying their investment portfolios. more intimate work environment than they’d find at a large investment bank. who determine whether an investment deal is worth pursuing and. but recently they have been doing this less often. turn them around. Recently. There are two main entry points to a career in private equity: After you’ve been working at an investment bank for two or three years. the funds may be used for a management buy-in (MBI). private equity funds invest in underperforming companies. On the next rung are the principals. and sell their stake at a profit some years later.

of their learning on the job. not just about finance but about the legal aspects of a deal and the operational aspects of a company. Unlike banks and hedge funds that operate by doing more transactions.com Profile Originators are at the top of the private equity tree. When one of the fund’s investments is sold at a profit. these are the folks who make the most money. In my view. Alta Communications How did you get into private equity? After the end of my first year as an analyst in an investment bank. it offers the best opportunity to learn the maximum amount within a short period of time. who. its industry and the dynamics surrounding a deal. etc. but also counterparts in a deal and agents. They are usually the fund’s partners. but overall it’s markedly different. This job also requires you to have a lot more direct interaction with parties you wouldn’t necessarily deal with as an analyst in a bank. but the ability to make good decisions using those skills. but junior private equity professionals do most. private equity deals usually take more time and require even the most junior of associates to get deep into the weeds and understand the nuts and bolts of a company. if not all. Don’t be afraid to have an opinion and to take a stand on any deal or investment opportunities.com Firm Name The Blackstone Group DLJ Merchant Banking Accel Partners Debevoise & Plimpton Simpson Thacher & Bartlett JPMorgan Goldman Sachs Credit Suisse Careers in Financial Markets 2006-07 . Be humble and learn to work well with others – not just colleagues. An analyst position at an investment bank provides a good platform but typically wouldn’t allow for a junior person to gain the same exposure and experience. How does working for a private equity firm compare to an investment bank? It’s similar on some levels. and quickly. I personally looked toward private equity for the in-depth nature of the job. venture capital and hedge funds. Do you have any tips for students who want to break into private equity? Know your finance and accounting. Large investment banks have formal training programs. Imran Ali. but you’re required to not only have technical skills.efinancialcareers. as their title suggests. Associate.www. A private equity job requires a higher level of responsibility. The necessity to have a strong grounding in finance and accounting holds true. originate and oversee deals. 35 Skills and Qualities • Analytical ability and statistical aptitude • Team-working prowess • Confident and outgoing • Ability to grow and maintain client relationships The Global Private Equity Awards 2005 – North America Champions Award LBO firm of the year Mid-market firm of the year Venture Capital firm of the year Best law firm (fund formation) Best law firm (deals) Best debt provider Best M&A advisor Best placement agent Source: PrivateEquityOnline. I was contacted by a number of headhunters looking to place candidates with investment banking experience into fields such as private equity. What’s been the most challenging aspect of your career so far? Just understanding the scope of what needs to be done and how to get smart on those to-do items is the most difficult part of the job. and polish up those skills by working at either an investment bank or a consulting firm beforehand.

“There’s a definite lack of people to fill the roles. but when you multiply it by the billions of dollars the industry is responsible for.” observes one. Corporate action professionals normalize and consolidate corporate announcement information—which is called “scrubbing. Today. Staff in clearing and settlements ensure that contracts and payments are in place following a trade made by a client. much of the work in global custody is administrative and repetitive. 36 “Custody jobs are growing. Traditionally. Staffers in fund operations might record and monitor the investments made by fund management clients.700 people globally. fees for global custody are under pressure as the sector’s players compete for the same business. Before computers existed. rather.” Roles and Career Paths Traditionally. such as securities lending and risk measurement.08 percent of the assets they’re managing. That might not seem like a lot.000 and Northern Trust had around 8. the proof of the assets: the certificates that represent stock and bond ownership.g. work with clients to reassure them that their assets are safely maintained. the custodian’s role has widened … Careers in Financial Markets 2006-07 . much of the work in global custody is administrative and repetitive. Custodian firms usually specialize in a particular area. certificates related to asset ownership are stored electronically. Similar to operations staff working in investment banks. a custody house’s fund operations staff looks for and resolves “exceptions” that occur when trades have not been settled properly. while Bank of New York employed more than 24. Still. While some of those staffs were engaged in businesses such as private wealth management. “There’s a definite lack of people to fill the roles. a lot of people are employed by global custodians. Typically.net. however. collecting dividends from clients’ investments). Recruiters say the industry’s appetite for staff continues unabated. growth in the hedge funds sector has created demand for staff familiar with complex derivative products and hedge fund accounting practices. In turn. Mellon Financial Corporation—one of the world’s larger custodians in terms of assets—employed a total of 16. global custodians charge fees of up to 0. so exactly what you do will depend on where you work. who are predictably hard to find. for example. making the business of custody much less space-intensive. performance measurement (calculating the returns clients’ investments have made over a period of time) and proxy voting on behalf of clients at shareholder meetings. This is driving custodians to branch out into more lucrative businesses. you’ll see it adds up quickly. Like so many other areas of Wall Street. the custodian’s Graduates may start out in corporate actions or settlements. or work on clearing and settlements. Recently. marketing and accounting.Global Custody Guardians of the world’s financial markets Global custodians look after the assets of their clients – or. the total value of worldwide custody assets is $82 trillion according to globalcustody. Few global custodians offer structured graduate training programs.” says one recruiter.000. a specialist Web site. Today. At the end of 2005. grounding yourself in economics. and gaining experience with project management. small custodians—who lack the manpower and technological wizardry for these higher margin activities—are gradually being subsumed into bigger players.” in industry parlance—to inform clients about company events that could impact the value of their shares. “Custody jobs are growing. many were engrossed in tasks related to asset servicing. however. Relationship managers.” role has widened to include a range of other services including income collection (e. but you can help position yourself for the sector by speaking a second language. Recently. In addition. Custodians also offer more client-focused and technical jobs. finance. global custodians had gigantic filing systems for their core work – storing certificates of stock and bond ownership. then move into other positions after a few years.

and also to help develop the product so it can maintain its leading position in the marketplace. During a comparative economics class. For a number of years. So I made a ten-year plan. The point is to get out there. sold the bar.www. flow analysis and an awareness of the general world. Beyond that. where my team resides.919 2. let it be known I was very interested in contributing to the firm by working in the same area. marketing and accounting is essential. A foundation in economics. I asked questions.970 11. a well-rounded base is the best course. the real value lies in fluency in a second language. I regularly visited Hong Kong to advance the custody services of the bank. Keep your eyes open. But showing that interest led to a position reporting to this manager. presentation.100 2. project management skills and experience.300 4.200 3. It really grabbed me. What’s a typical day like for you? I have the best job at the bank. landed an entry-level job at a discount brokerage house and started to fill out applications to MBA programs. unless you have a specific professional field of interest.700 10. I set my sights on his job. basically made a pest of myself. Then I married a partner who really had no interest in moving to Hong Kong. speak up and take in as much of the road as possible. I found it. my colleagues and I represent Mellon in its relationships with financial institutions around the world.com Profile Skills and Qualities • Strong communication. Mellon Group Can you tell us about your career path? In the early 1980s. A real plus is experience living and/or studying abroad – anywhere for any reason. and selling skills • Organized and process-driven • Work well under pressure Patrick Costello.142 4. Hong Kong was going “to revert” to the People’s Republic of China.700 9.net 37 Total assets under custody $bn 11. I was stunned to learn that in 1997. Most are. and eventually I succeeded him as his own career advanced. What advice would you give to students hoping to break into the business? My career wasn’t planned. finance. End of plan – until a couple of years later when I met a co-worker who had a job that required going to Hong Kong once a year.132 3. to middle office and front office. which I managed at night while taking classes during the day at the University of Cincinnati. On top of that. I wanted to experience it.efinancialcareers. As far as courses go. Global Head of Network Mgmt. giving us the opportunity to contribute to day-to-day operations and the delivery of service to clients. I graduated with a bachelor’s degree. Our team is pulled in many directions. It requires a look through the entire organization from back office.500 . Careers in Financial Markets 2006-07 Banks by Global Custody Assets Worldwide 2006 Provider The Bank of New York JPMorgan State Street Citigroup Mellon Group BNP Paribas HSBC Securities Services Northern Trust UBS AG Société Générale Source: globalcustody. I owned a bar. regularly receiving their representatives in our offices and performing due-diligence inspections of their sites around the globe.

comprehensive daily news and analysis of the US securities and investment banking industry. It has its players. a complex history. but in investment banking and securities no-one comes close to covering the game like we do. a language. From them. Winning Jack wasn’t talking only about Financial News Online US. Daily updates available on site or via our range of email alerts all completely FREE: Daily News Update People Moves Press Digest Trading and Technology RE www. this mentor is right there for the taking!” Jack Welch. institutions and deals driving the business. Register for Financial News Online US today for up-to-the-minute. controversies and a rhythm… I learned mountains about business just by reading every financial newspaper and magazine I could get my hands on. Don’t let that happen. rules. I tried to understand what kinds of strategic moves were criticized and which were praised… I still believe the business media is such a good teacher that I am amazed when I meet a young person who doesn’t just consume it. and why. covering the individuals.com GI FO STE AC R F R T CE RE OD SS E AY .financialnewsonline-us. I followed people’s careers. I picked up what deals worked and which failed.“Business is like any game.

are seeking to position risk management in ways that are more independent from the trading side of their business. At some banks. sometimes considered a sub-sector of operational risk. also known as systemic risk. operational risk experts review the likelihood of particular risky events taking place. terrorist bombs. bonds or commodities) will fall in value at the same time. Market risk specialists use mathematical value-at-risk (VaR) models to work out the maximum amount of money the bank would lose in the case of a particular event. some larger banks offer risk-specific training to graduates. “hedge funds will need to dig a bit deeper into their pockets in 2006 to attract or retain top talent. risk managers have the most obvious job title on Wall Street. the role is dealt with by the bank’s public relations department. These are the people who make sure that investment banks aren’t overexposed to a plummeting stock market. whoever bought the credit default swap has to repay the balance of the loan to the bank. stocks.” Some observers say risk management is increasingly being “carved out” from trading desks or senior management operations. risk management training is covered by the IT or operations department. or don’t make huge loans to a company that’s on the verge of bankruptcy.www. Reputational risk. If you want a career in risk management.efinancialcareers. This is becoming an increasingly complex area as credit-derivative products allow banks to trade the risk that a company will fail to repay a loan.com Risk Management The brake on a bank’s risky activities Arguably. Risk managers break risk into several categories. there’s market risk. During 2006. 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 . the competition for risk managers has heated up as hedge funds began using higher bonuses to attract them away from traditional investment banks. This is the risk that a whole group of traded financial products (for example.Ds in quant fields such as mathematics. If the customer defaults. Reputational risk specialists work to present the bank’s best side to the public. However. increasing their compensation for risk managers so that. By comparison. it’s a good idea to join a bank’s graduate training program. They examine the business from a variety of angles to make sure it can continue to operate in the event of a massive computer system failure or a terrorist attack. where they’ve resided until recently. Hedge funds. In the wake of financial scandals. in the words of one recruiter. Typically. earthquakes or a sudden rise in interest rates. and formulate plans for handling an event if it actually comes to pass. involves the possibility that something will happen to damage a firm’s reputation. Few banks employ these types of specialists per se. said one. statistics and physics. Careers in Financial Markets 2006-07 Roles and Career Paths People who pursue careers in market risk typically work on or near their firm’s trading floor. Credit risk is the danger a particular company or individual will default on its obligations. In recent years. They also work closely with traders to calculate the risk associated with specific transactions. Market risk is caused by events outside of the market. 39 The people in credit risk analyze company balance sheets and meet with company directors to determine the organization’s financial health. including Ph. the human resources department or the legal team. such as rising oil prices. Hedge funds seek risk professionals with solid quantitative skills. such as the collapses of Enron and Worldcom. Operational risk describes the danger that something might go wrong in the day-to-day running of the bank. banks are increasingly sensitive to reputation management. capital market firms seemed to be upping the ante. First.

Compliance
The internal watchdogs of the banking world
Compliance specialists make sure investment banks operate within the rules set by government regulators. It’s a growing area that needs people who have a healthy respect for rules and regulations. Not only that, but compliance staffers must be able to stand their ground when advising professionals in other areas of the bank that what seems like a good idea won’t be looked on so kindly by enforcement officials. In addition to interpreting the complex and ever-changing regulations laid down by government agencies, the compliance department creates a system of rules designed to apply those regulations internally. Its staff then communicates the rules to bank employees and works to enforce them. In the U.S., the primary regulatory body for financial markets is the Securities and Exchange Commission, or SEC. The SEC’s main goal is to protect investors and maintain the integrity of the U.S. financial markets. pressured upward ‘’both due to the immediate need for experienced compliance personnel who were in short supply and the elevation of the importance of the compliance function within the firm,’’ the report said.

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Roles and Career Paths

In 2005, increased staffing and regular inquiries from regulators caused the industry’s compliance costs to nearly double 2002’s expenditures.

Jobs in compliance vary depending on the area. Money laundering specialists spend their time looking out for suspicious transactions. For example, someone paying cash for a large quantity of bonds will get their attention, especially if the purchaser is someone that’s never dealt with the bank before. Money laundering officers report to the Treasury Department’s Financial Crimes Enforcement Network (FINCEN). Compliance training specialists focus on internal controls, preaching the compliance message to the bank’s employees. They create and present courses explaining rules and regulations and why bankers have to follow them. Monitoring specialists look out for signs that employees may be up to no good. Recently, much of the grunt work involved has been taken over by computers, which can monitor huge volumes of e-mail messages each day and spot unusual events, such as when dormant trading accounts suddenly come back to life. Compliance advisors interpret regulations and apply them to particular business areas and products. An increasing

A growing area that needs people who have a healthy respect for rules and regulations.

Investment banks usually split compliance into teams that include money laundering specialists, training specialists, monitoring specialists and advisory and product specialists. In the aftermath of the 2001 terrorist attacks on New York and Washington, the government tightened money-laundering regulations considerably through laws such as the USA Patriot Act. In 2003, the European Union also broadened its existing money laundering regulations. In 2005, the bulk of the $25.5 billion spent on compliance by the securities industry went to staffing costs, according to a survey by the Securities Industry Association, the predecessor of the Securities Industry and Financial Markets Association, or SIFMA. Increased staffing and regular inquiries from regulators caused the industry’s compliance costs to nearly double 2002’s expenditures of $13 billion, the survey found. Much of the cost resulted from companies increasing both compliance staffs and their compensation, which was

Careers in Financial Markets 2006-07

www.efinancialcareers.com

Profile
number are specialists who sit on or near the trading floor and offer advice on particular types of financial products. They might tell traders whether or not a particular trade can go ahead and, if it can’t, suggest alternatives that could still be acceptable to the client. Compliance advisors need to know a lot about trading and the products they’re advising on. Some are ex-traders. While graduate training programs in compliance—not to mention entry-level jobs—used to be rare, today they’re growing more commonplace. If you don’t get into one of these programs, you could apply to one of the SEC’s, or work for the compliance consulting arm of a Big Four accounting firm, such as PricewaterhouseCoopers, KPMG or Deloitte & Touche. Harold Tinkler, Chief Ethics and Compliance Officer, Deloitte & Touche USA Would you describe your role? We try to make sure that people use the available tools or seek out help. My responsibility is to help my Deloitte partners resolve problems and administer responsibilities to encourage ethical behavior. We help develop tools and policies for the various practices, and we monitor them. To do this, my job is to create an environment and ensure policies are consistent, and of course, enforce them if necessary. What is a typical day like for you? My typical day is broken down into two baskets: my internal day and my external day. Internally, our primary tool is an ethics help line, an 800 number that people can call confidentially to ask questions about ethics and professional behavior. They can make a report on a matter that they think isn’t right. We can develop resolutions, and often do, as the phone rings often and people know who I am. Externally, we have outreach programs, including speakers at universities and to members of the financial community. What advice would you give you professionals interested in your field? To be successful in compliance you must be able to develop a deep expertise in areas that you oversee. It requires the ability to relate to people and complex issues that are subject to compliance monitoring – many of which are client matters. You have to have a mindset compatible with quality control. The work should be the primary motivation. This isn’t a career or role that you work at alone. There’s a lot of cooperation, so you need to be comfortable with working in several disciplines, such as human resources, professional, legal and personnel. It also requires an understanding of client relationships. It’s very important to possess a strong sense of “team.” A lot of questions come up, so you can’t simply teach people about compliance and ethics. It requires more of an ability to make them aware of the issues they’ll face. Most people never intend to do be unethical or non-compliant. It’s that the workplace is complicated. There are many gray areas when it comes to understanding what the requirements are and how employees go about fulfilling them. This is where I can help. I can help navigate through better approaches. It’s my job to make them aware, and provide a resource for people to go to for assistance. Careers in Financial Markets 2006-07

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Skills and Qualities
• Self-confident and assertive • Competent understanding of legal issues • Methodical

Human Resources
The ‘people people’ of investment banks
Human resources departments—commonly referred to as “HR”—are responsible for the “people issues” that arise in an investment bank. This means everything from hiring, firing and paying employees to implementing workplace policies on diversity, discrimination and employee monitoring. They also manage disciplinary cases.
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“People are an organization’s best asset” is particularly relevant in investment banks, where the difference between a good employee and a bad employee can be measured in millions of dollars.

The mantra of HR professionals? “People are an organization’s best asset.” This is particularly relevant in investment banks, where the difference between a good employee and a bad employee can be measured in millions of dollars. In addition, hiring trends at investment banks tend to reflect the state of the financial markets: The industry has a reputation for bulking up when times are good and laying off large numbers when times get tough. In recent years, most banks have changed the structure of their HR departments, outsourcing much of their peripheral activity. Questions about compensation, benefits or employee relations—which used to be addressed by HR people in each banking division—are now often handled by call centers. Consequently, fewer HR people work inside the banks, and those that remain face increasing pressure to become more like “strategic partners,” understanding and advising departments on business matters like reward policies and retention of top staff.

more women and more members of different ethnic and minority groups. “Our marketplace is rapidly changing, and the workforce is becoming much more diverse. We have to recognize the customer base is changing as well, and we need to have people to create products in our team with a specific experience,” observes Patricia David, managing director and global head of diversity/talent and employee programs for the corporate and investment banking division of Citigroup. These efforts have gained a higher profile as, increasingly, banks’ efforts in diversity involve senior executives and business-unit leaders. Says the global head of diversity for one bank: “For diversity to take, business leaders have to be involved. It’s a key to success.” HR professionals say their work has taken on a strategic role in an industry constantly on the hunt for top talent. As one said, forward-thinking companies “are keenly aware of the intrinsic value of having a strong partnership with recruiting and how that partnership is the cornerstone of success.”

Understanding the relationship between HR and the investment bank’s overall goals is a key to success in this sector, along with understanding the intricacies of the securities business. Often, it’s up the HR staff to understand the talent market’s dynamics and formulate recruiting strategies that will attract and retain the people needed to meet the firm’s business goals.

HR professionals say their work has taken on a strategic role in an industry constantly on the hunt for top talent.

Roles and Career Paths
Jobs in HR usually fit into one of five categories: employee relations, recruitment, compensation and benefits, training and development, and generalist. Also, the increasing number of employment laws working their way onto the books has generated a need for professionals with a mix of HR and legal training. Recently, a “diversity” category has begun to emerge as HR staffs are entrusted with nurturing workforces that include

It’s no easy task to find a job as a graduate trainee in an investment bank’s HR department. Few banks offer such traineeships here, and those that do usually have no more than two or three places. However, you have options besides landing a spot in a training program. Because banks train so few HR staff themselves, they often recruit expertise on the open market. Former HR staff from Time Warner, General Electric and PepsiCo can all be found working in banks.

Careers in Financial Markets 2006-07

Careers in Financial Markets 2006-07 43 . but finding the right people depends on whether their personality matches up with the culture and environment of the company and of the line of business. In the past. The key is to stay flexible and prioritize the workflow to maximize your efforts and results for your clients. Robert Walters. know the marketplace. you will usually need previous experience. We conduct strategy meetings. putting the pieces together for the right picture and matching candidate skills with opportunity. and that’s what recruiting is: a detective story that unfolds.efinancialcareers. It takes a healthy period of time to find the right person for the right seat. try to gain experience with a recruiting firm that helps investment banks find staff. Be a trusted advisor to your client. I also read a lot of industry publications in the marketplace to keep a finger on the pulse of the industry. Today. They are keenly aware of the intrinsic value of having a strong partnership with recruiting and how that partnership is the cornerstone of success. recruiting was perceived as an order-taking business. These firms fall into two categories: contingent and retained. To be a recruiter at a search firm. Any tips for folks hoping to get into HR? Understand the strategic alliance between HR and the business goals.com Profile If you’re interested in working in recruitment. to see what’s going on and if there are any major market disruptions in which people would be looking for other opportunities. Vice President. Linda J. International contingency recruitment firms such as Badenoch & Clark. Korn/Ferry. You need to be very good at skills assessment. What’s the most challenging aspect of your job? The most challenging aspect is finding the right cultural fit. and talk about their credentials. What’s a typical day like for you? No day is typical and that’s what I love about recruiting. competitive intelligence gathering and cold calling. Know your business inside and out. and Heidrick & Struggles employ bright graduates as researchers and train them to become search consultants. KeyBank What made you decide this was the career for you? My internal wiring requires a great deal of people contact. Contingency recruiters get paid only if their clients make a hire. forward thinking companies ensure that recruiting has a seat at the strategic table. I deal with strategic planning for our clients – workforce planning to achieve business goals. I am motivated by the nature of solving a puzzle. It’s finding the one perfect candidate for the one perfect opportunity. market research. What skills and qualities are needed for this field? Patience.www. Gray. Your to-do list at the beginning of the day rarely matches what you’ve accomplished at the end of the day. You can assess the skills and abilities of candidates. and Michael Page run graduate training programs. follow the trends. interviews. retained firms get paid regardless of whether they find anyone to fill a particular job. By contrast. But search firms such as Russell Reynolds. You need great people skills and you need to think strategically. understand the competition and formulate recruiting strategies that support the business goals.

” “Internally. M&A work can involve everything from preparing the documents expressing one company’s intention to buy another to conducting due diligence on the company under consideration. In addition. and most of their activities have legal implications. it’s not uncommon for law firms to require their hedge-fund clients to agree not to poach from their staff.Legal From internal control to M&A advisory. Prince was promoted to the top job in 2003. especially after your first year of law school. workplace issues or various types of litigation. these lawyers play an important role in the development of complex derivative products. Some never thought a lawyer would head a Wall Street firm – but look at Chuck Prince. However. investment banking lawyers have come into their own. It’s usually necessary to obtain legal training elsewhere. “Most law firms servicing hedge funds are perpetually short on candidates. just after Citigroup was forced to set aside a massive $1. The job of an investment bank’s legal department is to make sure all of its contracts are watertight. experience with financial services. is a must. “There is more and more legal work to be done. dealing with discrimination claims. Many attorneys suggest getting exposure to the real world as early as possible. By determining which trades can and can’t go ahead. Some work in the investment bank’s central legal office. Once the bank’s legal counsel. “Internally. recruiters say competition for lawyers with the appropriate financial services experience has become so heated. but is well-defended when they do occur. hedge funds have become more like a proper business and most have in-house counsel. particularly in a transaction-related field. you can pick it up. calling all lawyers Securities firms are large and complex organizations. This typically means working for one of the major law firms. If you work on a bank’s capital markets team. In recent years. that it fulfills its legal commitments and avoids lawsuits.” says Adam Zoia. Says one: “Practical work experience provides a great head start.” Roles and Career Paths The career of a securities lawyer can follow any number of paths. Some might specialize in the legal complexities of mergers and acquisitions. Trading floor lawyers advise on the legality of trades and deal with the documents required to buy and sell financial products. For those interested in hedge funds. through summer jobs and internships. “They’re desperately seeking staff. and lawsuits are avoided – or well-defended.” says Glocap’s Zoia. while others work on the trading Careers in Financial Markets 2006-07 . you’ll deal with the legal complexities surrounding the issuance of new financial products. a specific background in that sector isn’t necessarily required for a job as in-house counsel or to work for a law firm’s hedge fund clients. hedge funds have become more like a proper business and most have in-house counsel.2 billion to cover the costs of litigation related to the Enron scandal and biased equity research. 44 floor or advise capital markets teams. lawyers ensure that the information provided by a company preparing to list on a stock exchange is correct and within the law. that legal commitments are fulfilled. the growth of hedge funds has spurred demand for lawyers who can advise them. “If you’ve been a securities lawyer or in M&A. the chief executive at Citigroup. thanks to banking scandals and the potential for hefty fines from regulators. The job of the legal department is to make sure all contracts are watertight.” Zoia adds. managing partner of Glocap Search and head of the firm’s hedge fund practice. In fact. More recently.” Few investment banks train lawyers themselves. “There is more and more legal work to be done.” says one search consultant.” Increased scrutiny is pushing funds to rely more on in-house counsel.

efinancialcareers. Slate. communicating with people on the phone and e-mail. it’s designing a path from where the client is to where it wants to be. 45 Top Law Firms for M&A Target Completed First Half 2006 Legal advisor Wachtell Lipton Rosen & Katz Simpson Thacher & Bartlett Shearman & Sterling Skadden. Fortune and Forbes help you understand the business context in which we work and the business issues that clients are wrestling with. Reading the Financial Times.4 16. the best thing you can do is to read The Wall Street Journal. contingent liabilities and problems at the target company. I might do an entire deal through electronic means. After a year of studying law solely as an academic discipline.8 21. The danger is the belief that all you need to know is the law.0 15. As an associate (at Shearman & Sterling) I was assigned to M&A and quickly developed an affinity for it. In one deal I made 14 trips to Europe in 17 weeks. find a small firm that will hire you as a first-year law clerk. Other times. of deals 28 53 40 75 25 29 44 26 99 22 Careers in Financial Markets 2006-07 . Especially after your first year of law school.2 16.4 Market share % 29.7 91.4 117.8 117. Meagher & Flom Dewey Ballantine Cleary Gottlieb Steen & Hamilton Sullivan & Cromwell Fried Frank Harris Shriver & Jacobson Latham & Watkins Davis Polk & Wardwell Source: Thomson Financial Rank value $bn 172.6 No. spending six years in our London office. Now. where I’ll sit down with the principals and try to understand their goals and help analyze risks. I’ve done M&A work for 22 years. Much of my work involves planning. From a legal perspective.4 123. culture or form of transaction.1 95.S. M&A Group.9 25. I’m involved in the early stages of a transaction.3 161.3 20.www. What’s a typical day like for you? It varies and is what keeps you interested and devoted to succeed. contact is in-person and there is constant travel. Clients want us to do many things: antitrust or work with industry regulatory bodies. What should people interested in M&A law should be reading? If you’re interested in M&A or business and commercial law. Arps. Shearman & Sterling Could you tell us how you came to specialize in M&A? Working in M&A was an accident.8 27. where I moved as a young partner. Partner. What advice would you give to students hoping to break into the field? Get a real summer job.1 92.com Profile 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 John Marzulli. it will do you wonders to see action in the real world.4 149.5 90. There’s always something new – a new business. I was the first full-time U. M&A lawyer to be exported overseas by the firm.8 15. I was successful partly because of my willingness to listen to other ways of doing things.4 20. Often there are roadblocks to deals such as special litigation.

The good news is that banks will still need plenty of people in western financial centers to liaise with overseas employees. IT professionals who want to stay in advanced technology are being advised to couple their technical expertise with deep knowledge of a vertical industry. computers and software that underpin any modern financial organization.. who can really put their point across briefly and directly. or knowledge of mortgagebacked securities and C#. In recent years. Recruiters say financial firms increasingly seek candidates with a combination of business and technology skills. A trader might complain about the length of time it takes his computer to execute a trade. In addition. project managers liaise Careers in Financial Markets 2006-07 . Project managers plan. they often don’t offer an obvious path to acquiring them. Java and Microsoft’s . If it is. so it’s up to an analyst to investigate whether the complaint is valid. If you become a developer.NET. says Netin Gupta at RadixThink. they have to communicate with clients and interact with traders on the floor. especially for their trading floors. such as an understanding of fixed income and Java. and running complex computer models to price and trade financial products. At least one recruiter predicts that by 2010. 46 Roles and Career Paths Jobs in IT tend to fall into one of four categories: development. internal IT departments will shrink by a third. “most of our clients are looking for people who can communicate well. a new computer might be needed. perhaps with an MBA. the responsibility for managing them often passes to another set of IT staff: the project managers. and technical support. Business analysts help identify the potential for making changes to a bank’s technology systems. such as financial services or pharmaceuticals. IT spending has risen along with the costs of providing technical solutions. or to combine IT with business skills. where financial products and commodities are bought and sold electronically. structure and fulfill IT projects. or some of the programming code might need to be changed. According to technology research company Forrester Research. Firms use technology for just about everything: communicating with staff. Once big changes are underway. storing information on clients. So. The programming languages used by banks are usually C++. so communication skills are very important. They are known for having some of the world’s cutting-edge systems. a growing number of banking IT jobs are being outsourced to low-cost locations such as India and China. business analysis.” While companies want combined skills.Information Technology The work that’s increasingly outsourced overseas An investment bank’s information technology (IT) department is responsible for the web of networks. a recruitment process outsourcer in Centreville. project management. Va. A lot of times. In pursuit of lower costs. especially for their trading floors. where financial products and commodities are bought and sold electronically. IT professionals should keep an eye out for positions that offer a mentor who might help them broaden their role in the firm. Financial firms are known for having some of the world’s cutting-edge systems. 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. If IT development work is outsourced. Plenty of banks have offshore activities already. you may be responsible for writing the computer programs that help the bank do everything from pricing and booking trades to calculating risk. there will be no shortage of future demand for business analysts and project managers who understand the banking business and can manage the outsourced functions.

building brokerage systems. I was a very green CIO coming in – I had been CEO in smaller companies and was not exposed to anything of this scale prior. I founded TradinGear. broker dealers and the exchange. I’ve been checking my e-mails all night long anyway. and in late 2002 we licensed the system to NYMEX (the New York Mercantile Exchange). operations. Fortunately. It’s up to the technical support staff to identify and resolve the glitch as soon as possible. and generally use the time for administrative work. The most challenging aspect of my job is managing the tech team while managing business expectations. Samuel H. Reaching out to CIOs in your industry is also helpful. the IT staff members in investment banks specialize in a particular business area. I left the trading floor to start a trading-software development company.com Profile with providers to ensure the work is completed correctly and within the right time frame. Generally.efinancialcareers. Technical support staff requires razor-sharp technical skills and the thickest of skins to handle not only technology problems. When I graduated. CIO. electronic trading platforms for hedge funds. I worked for a trading company on the Commodities Exchange for a number of years. IT professionals should keep an eye out for positions that offer a mentor who might help them broaden their role in the firm. What’s a typical day like for you? I get in at 7:30 or 8 a. Your exchanges don’t have to be about strategy. I am able to really relate very well between the business of trading and the technology of trading. It’s a role that carries a lot of responsibility: A computer problem on a trading floor lasting a few minutes could cost millions of dollars.m. even if they’re competitors. and offered me the CIO position.www. You can discuss general CIO matters. but the frustration of irate traders as well. followed by an executive committee meeting and technology team meetings. or deal with core infrastructure requirements. New York Mercantile Exchange How did you get started? Believe it or not. It’s useful to know what your peers are doing. The rest of the day is meeting time. and from there I got very involved in the business. We had very high profile clients. I worked there every summer until I graduated from the Wharton School of Business in 1988. others are based in private banking. 47 Skills and Qualities • Superior programming abilities • Strong communication skills • Innovative • Client-focused • Good problem-solving and decision-making abilities Careers in Financial Markets 2006-07 . Gaer. It’s a really good peer resource. Any tips for the aspiring CIO? A great resource for me is CIO magazine. While many work on the trading floor. because of my background. How did you go from trader to CIO? In 1998. We meet for various tech and trading issues. I started as a clerk on the trading floor when I was 15. because now everyone has a BlackBerry. They made an offer shortly after that for certain assets of the company. fund management. I have a meeting with the chairman. I immediately went down to the floor and started trading.

these are two distinct roles. Prologis* Providian Financial Corporation Second Team National City Corporation KeyCorp Lehman Brothers Holdings. ABN Amro sponsors Team ABN Amro in the 2005-2006 Volvo Ocean sailing race. Inc. The PR department also helps communicate quarterly results and manage media coverage of mergers and acquisitions. investment banks have in-house PR departments that encourage journalists to create positive articles about their firm and field queries in response to breaking news. American Express Company Third Team Wells Fargo & Company Ameritrade Holding Corporation AmeriCredit Corporation Careers in Financial Markets 2006-07 . Capital One Financial Corporation Second Team Bank of America Corporation Lehman Brothers Holdings. while making sure all of a bank’s communications meet regulatory and compliance rules. Marketers try to present the firm as it would like to be seen and concern themselves with reputation management. Inc. and product-dedicated staff who work alongside sales teams to advance specific offerings. Merrill Lynch has sponsored professional golf events. 48 Investor Relations Ranking by the Sell Side Sector Banks/Large-Cap Banks/Mid-Cap Brokers & Asset Managers REIT Specialty Finance *tied position Source: Institutional Investor First Team Wachovia Corporation South Financial Group The Goldman Sachs Group. the role of an investment bank’s PR staff has become more important than it’s often been regarded in the past. home of the National Hockey League’s Buffalo Sabres. meaning how a bank’s brand is portrayed in advertising and promotional campaigns. and staff at most firms are forbidden to talk to journalists without securing permission from the PR or media relations department. trying to limit the coverage’s impact to the extent that it can. PR people focus on how a bank is represented in the media. Inc. So. Roles and Career Paths Investment banks typically employ both centrally-focused marketing staff to promote the firm as a whole. Wall Street’s marketing staffs have to contend with new types of media competing for the attention of their audiences. Though related. If the bank is attracting negative media attention. Usually. Archstone-Smith Trust*. public relations—often called media relations—is about communicating with journalists. Inc. Following a rash of negative coverage of scandals related to biased research and dubious trading deals. For example. Like communicators in other industries.Marketing and Public Relations Manage the firm’s image to the outside world Marketing and public relations people are the interface between financial services companies and the wider world. Capital One Financial Corporation Third Team US Bancorp The Charles Schwab Corporation - Investor Relations Ranking by the Buy Side Sector Banks/Large-Cap Brokers & Asset Managers Specialty Finance Source: Institutional Investor First Team Wachovia Corporation The Goldman Sachs Group. and HSBC purchased the naming rights to the HSBC Arena. effective marketing and PR staffers have to keep up with changing technology and new audience dynamics. While marketing is all about communicating with customers and prospective customers. Their work can range from sponsoring sporting events to producing brochures or developing corporate logos. the PR staff engages in damage control. Banks are increasingly sensitive about their portrayal in the media.

New York Times. What should people be reading if they want to break into this kind of work? Listen. Such groups often shoulder broader responsibilities. The people who develop a bank’s brand are drawn from large advertising agencies. or talk via videoconference with our CEO. Since then. I left for Yale’s School of Management and afterward worked as a consultant in B-M’s Tokyo office. I worked as a reporter but realized it wasn’t for me. I’ll work with a team helping a client incorporate blogs into its strategy. Wall Street Journal is a must. a number of independent PR and advertising agencies are active in the financial world. Rather. Reading the Financial Times. I moved to Hong Kong in 1998 to oversee operations.S. Curtis S. 49 Few investment banks train their own marketing and PR staff in-house. assist a Fortune 500 company or government client on economic and trade issues. In addition. and even non-mainstream media. Chin. Still. What advice would you give to students hoping to break into the business? There is no single way to break into the business. Managing Director. then returned to New York in 2001. Develop knowledge and a perspective that your client and supervisor don’t have. often gained in a blue chip company or top PR agency. Take time to learn about the industry and your clients’ industries. Don’t be afraid of change or seeing things differently. trade and development issues. such as communicating with the bank’s own staff and shareholders. The news comes via cell phone and on radio and television instantaneously. they usually hire marketing and PR professionals with several years’ experience. Skills and Qualities • Strong written and oral communication skills • Networking and relationship management • Understanding of and ability to communicate financial issues • Ability to grasp complex issues very rapidly Careers in Financial Markets 2006-07 . These may be hired by a bank to give their own teams a boost. don’t be overwhelmed by all the media out there. I called our Geneva office about a conference on regulatory issues. Develop your own sources of information from people you interact with.efinancialcareers. Burson-Marsteller Can you tell us about your career path? In journalism school at Northwestern. read and view news broadly. Be passionate about your work. the role of an investment bank’s PR staff has become more important. It’s a 24-7 news cycle. Washington Post. But I left to serve as a special assistant to the U. banks combine the marketing and PR functions in a single communications department. Today I provided counsel to clients in San Francisco and New York on business affairs. as well as on Asia Pacific economic. Read publications and reports that impact your business such as trade magazines and journals. Secretary of Commerce in the first Bush Administration. engagement and accountability. One way is to be aware of what’s online and offline.www. What’s a typical day like for you? No day is typical. I’ve focused on counseling clients and leading teams focused on corporate social responsibility. but not enough. In some cases. I returned in 1993 to become managing director of operations in our Beijing office. Understanding how the media works positions you to be ahead of news. Our role is to be part of a business’s decision-making process. I met someone at Burson-Marsteller in Washington and got a job there working for financial institutions and non-profits.com Profile Following a rash of negative media coverage of scandals related to biased research and dubious trading deals.

Moody’s and Fitch issue their rankings in similar formats. CDOs are pools of debt instruments repackaged into components carrying different levels of risk.000 companies and 25.M. Advanced degrees aren’t always required but they can be helpful in landing a job. specializes in rating debt issued by the insurance industry. who are generally quantitative specialists. Fitch Ratings created a group for rating U. holding about 75 percent of the business. according to a company spokesperson.Ratings Agencies Grading the potential of market players The role of ratings agencies is to assess the credit worthiness of companies and government agencies that issue debt instruments to investors. For example. Fitch. Another small but well-known agency. With analysts based in business centers worldwide. 50 The ratings agency sector is dominated by three companies: Standard & Poor’s (S&P).000 public finance issues. During 2006. Debt ratings aren’t static. On top of that. A. Bonds that may have started out with an investment grade rating can be downgraded if the fortunes of a company. Although the issuers actually pay for the privilege of having their business scrutinized. Moody’s notes on its Web site that its analysts follow the debt of 100 countries. commercial real estate collateralized debt obligations due to increased volumes of issuance. without the inconvenience of commuting to a major urban center. Moody’s Investors Service and Fitch Ratings. the issuing company will have to pay higher yields in order to get them.000 structured finance deals. S&P and Moody’s are by far the largest. 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. has grown larger in recent years through acquisitions. The nature of debt financing has changed dramatically over the years and the ratings agencies have had to adapt Standard & Poors AAA AA A BBB BB B CCC CC C Fitch AAA AA A BBB BB B CCC CC C Roles and Career Paths Ratings agencies look for people with training in finance. it follows 70. economics and similar quantitative disciplines.S. industry or government take a turn for the worse. mathematics. Ratings: A Guide Agency Investment Grade Moody’s Aaa Aa A Baa Speculative Grade (‘Junk’) Ba B Caa Ca C Sources: Moody’s. 11. Any bonds rated Ba by Moody’s and BB by Fitch and S&P are considered to be speculative grade.” While debt consigned to this category will attract investors. Figuring out the level of risk associated with those kinds of deals falls to the analysts in the structured finance ratings teams. Best touts its location in the bucolic horse country of central New Jersey as being perfect for people seeking a “stable environment. which makes it easy for investors to compare the ratings of one organization to the other. Best. Fitch The nature of debt financing has changed dramatically over the years and the ratings agencies have had to adapt accordingly. S&P. Wall Street has figured out ways to securitize everything from credit card debt to cosmetic surgery receivables. the smallest of the three. Lawyers are also a part of the analytical teams. The lowest possible ranking is “C. S&P.” Buyers of these bonds face the greatest prospect of not getting their money back. or “junk. the agencies provide a neutral analysis of a debt issuer’s ability to repay its obligations. a number that is undoubtedly growing because structured finance—which refers to the exotic credit-derivative instruments that have become hugely popular tools for managing risk—is the fastest-growing segment of Moody’s business.” accordingly. (In the words of one analyst: Careers in Financial Markets 2006-07 . Plus.

There is so much to learn that even people who have been part of the group for 10 years are still learning new things. Evan Tepper. where I was in a quantitative group that looked at outside trading systems. But the decision on how to rate a deal isn’t made by just those two. I started out at the hedge fund Caxton Associates. or by Moody’s itself.com Profile “We have people who have come in with a bachelor’s degree and a thirst for knowledge. which is issued by countries. but as long as you can meet your deadlines. but it’s equally important to be able to communicate with people. justify their analyses and prove that it’s correct. so I’m constantly training new members. What skills do you think are most important for a structuredfinance analyst? It’s certainly good to have a solid quantitative background. financial institutions. which is rating particular companies. I learned more about it and when I spotted an opportunity to join Moody’s. I’m also one of the more senior members of the team. I kind of stumbled upon structured finance and it really piqued my interest. I also work on rating new deals and participate in the ratings committees. What information sources or organizations should people be aware of? Some of the best information sources happen to be structured-finance conferences. We analyzed the historical trading patterns of these systems to determine if they would be useful to us in future trading. I was there two years and I just wanted more opportunity for growth. statistical and quantitative skills are most desirable • MBAs or other graduate degrees useful and sometimes required • Strong written and oral communication skills • Ability to clearly express complex issues • Self-motivation and the ability to meet deadlines without direct supervision . The work is assigned to you and everyone has deadlines. which might be issued by a utility company or a government agency that funds development projects like road construction. infrastructure debt. which is to review the deals I’m responsible for monitoring to see if anything has happened that could affect our rating. Moody’s Investors Service How did you come to work at Moody’s? I graduated from the University of Michigan in April 2002 with a degree in economics.www. public finance.”) Typically. analysts at ratings agencies specialize in particular product types such as corporate finance. and are organized by different banks. The most important thing is to come in motivated every day and be willing to learn. Skills and Qualifications • Analytical. which follows local. Most agencies offer young talent considerable opportunity to grow and take on new responsibilities as their careers progress. with a lot of diversity. state and provincial governments. They have to present their case to a rating committee. What is a typical day like for you? I am part of the monitoring group. I did. sovereign debt. Structured Finance Analyst. because no one is looking over your shoulder. Depending on their area of specialization. You also need to be self-motivated. Careers in Financial Markets 2006-07 51 The most important thing is to come in motivated every day and be willing to learn. staffers can expect some element of travel to go along with their work. and a legal analyst since we are reviewing contracts. I’m constantly on the phone with trustees and bank contacts about deals in the market. or the structured finance arena. which take place all year long. industry organizations. so when I come in I have a set routine. it’s a very engaging place to work.efinancialcareers. Can you tell us a bit about how the process works? Every new deal is assigned to a quantitative analyst.

data vendors feared their role would become less important as more information became available directly to investors and bankers alike. Interactive Data’s subsidiary products include Comstock. and the data they provide reflect actual transaction prices. Other major suppliers of data feeds are the world’s stock. commodity and options exchanges. The principal players in this realm are Reuters. traders ultimately rely on accurate and timely market data as a basis for their buy-sell decisions. and so on. financial derivatives. Whether it’s the release of a company’s quarterly earnings report. are middlemen. That trend has proceeded more slowly than originally feared. market participants react to news every trading day. Treasury securities. a significant merger or acquisition or a default or bankruptcy by a major debt issuer. However. Many lay people know Dow Jones primarily through its flagship product. there are certain attributes that will lead to career success. Technology expertise can be another important skill. which can differ from actual selling prices. Events like these. In over-the-counter markets for bonds. Another smaller player is Interactive Data. Cantor Market Data. massaging and disseminating all of this trading data is the job of the information providers – the companies in the financial information industry. Because news inspires action. whose Dow Jones News Service has been covering the markets for more than 100 years. traders ultimately rely on accurate and timely market data as a basis for their buy-sell decisions. corporate clients and other organizations.S. Bloomberg and Thomson Financial. Trillions of dollars in stocks. precise career path. a supplier of data to institutional clients. is one example of the latter. Some are software developers building sophisticated tools and trading programs. In addition to the data suppliers. which it still resells through its subsidiary. the trading desks at large investment banks like Citigroup or Goldman Sachs generally supply prices for securities that are in their inventory. People with the skills to create the algorithms that drive these programs are in increasing demand. futures. Foremost is a strong understanding of how the markets operate. Brokers. Dow Jones & Company. Because news inspires action. 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. which will be critical whether one enters a sales. then consolidate and sell it back to the same institutions that initially generated it. over-the-counter derivative instruments—such as swaps or collateralized debt obligations (CDOs)—are bought and sold worldwide each day. big and small. options and a seemingly limitless number of exotic. The Wall Street Journal. Vendors like Reuters and Bloomberg not only distribute data to the financial industry. which is 60-percent owned by Pearson PLC. drive trading activity. although it has driven consolidation in the industry. corporate and government bonds. data management or technical development role. they also collect it. which distributes a real-time feed of market data. operations. foreign exchange. Others focus on news or market analysis. Cantor Fitzgerald was one of the first firms to report the prices for trades it brokered in the market for U. Collecting. pricing is supplied by dealers and brokers. person-to-person transactions to screen-based dealings that are driven by sophisticated software programs. Its content can be delivered through distribution partners or directly to clients. and FT Interactive. on the other hand. When the Internet first became popular. many other companies operate in specialized segments of the industry. For example. Information companies seek individuals with a statistical Careers in Financial Markets 2006-07 . 52 company has also created numerous indexes that now form the basis for tradable securities. Trading is increasingly moving from telephone based. The Roles and Career Paths The diversity of companies in the financial-information sector makes it difficult to describe a single. Think of those as the advertised or list prices. publisher of the Financial Times. the actions of central banks on interest rate policies. a unit of the Thomson Corporation. The field offers numerous entry-level opportunities.Information Providers Delivering data for the markets The fuel that powers the financial markets is a potent combination of real-time news and market data.

Lava Trading Inc. What about technical expertise? You do need to have an understanding of technology. McGraw-Hill Companies. but you do need to understand their inner workings.. What advice would you give to someone thinking of entering the industry? I’ve always been on the administrative side. including all of its nuances. I returned to the vendor side with Moneyline Telerate for a couple of years before coming here. You need to understand what market data is and how it’s used. Inc. Sachs & Co. corporate actions and research information all become a big part of market data and what the end users are looking for.net/about/members. How did you get involved in this business? I started at the New York Stock Exchange many years ago. I also manage relationships with the third-party software companies that develop applications for Lava under contract. Richard Jacobi. What are your responsibilities and how do you spend your day? I have responsibility for our relationships with all external vendors. Merrill Lynch NASD Société Générale Standard & Poor’s Corporation Thomson Financial Tokyo Stock Exchange Verizon Business 53 Careers in Financial Markets 2006-07 .com Profile background or financial training for the teams responsible for ensuring their distributed data is accurate. where you certainly need a financial background and a thorough understanding of the financial industry. Market data comes in a lot of different flavors: you’ve got real-time data. People in this industry need to understand how trading and analytical systems work and how they are used. which is when I first became involved in a market data role. including the exchanges. Skills & Qualities • Strong understanding of the financial markets or the ability to learn • Analytical and statistical skills • Good oral and written communication skills • Technology aptitude or programming abilities Software and Information Industry Association Financial Information Services Division Selected Members American Stock Exchange Bank of America Barclays Global Investors Bloomberg L. I went to work for Smith Barney. which is all the data that surround it. you must have a grasp of what that means and its implications. see the member page of Software and Information Industry Association’s Financial Information Services Division at www. We use data from a total of 40 different exchanges. A lot of my job managing market data and vendor relationships comes down to understanding how much is being charged and who pays for it.P. Chicago Board of Trade Chicago Mercantile Exchange Deutsche Bank AG Dow Jones & Company Edgar Online Fidelity Investments Goldman. You don’t need to know how to program these systems.efinancialcareers. For an overview of the kinds of companies involved in this industry. After ADP. HSBC Holdings PLC IBM Lava Trading Lehman Brothers.asp. Inc. when a feed is going into a black box that can redistribute the data for multiple uses. Then I spent six years at the New York Mercantile Exchange as its head of market data. Inc. For example. in a monitoring role. running data management for its retail branch network. Then I received an offer from ADP to become its manager of exchange relations. Vendor Relations Manager.fisd. Historical data. Cantor Market Data Charles Schwab & Co.www. We would watch trading patterns for unusual trading activity. delayed data and reference data.

” she says. It shouldn’t come as a surprise. failing to answer the question and pasting answers from one bank’s application form to another’s. At this stage. and as someone who is knowledgeable about investment banking in general and this bank in particular. If you want to make it through. Before the interview dates they also hold networking sessions for candidates to meet both the recruiters and professionals in different divisions of the firm. you’ll face a panel of several interviewers made up of junior staffers from the business area to which you’ve applied. that competition for undergraduate and graduate trainee positions is intense. around 300 of the original 8. “Candidates must follow-up after the networking sessions are over and build that relationship. Applicants for foreign exchange (FX) trading roles might be asked to explain how interest rates adjust to the price of FX options. the recruiters will also test your knowledge of investment banking and your motivation for working at their firm. recruiters Careers in Financial Markets 2006-07 . Here. banks use a thorough screening process that includes on-campus events. you may be invited to a firstround interview. as well as representatives of the bank’s human resources department.000 or more applicants are left. The second round puts a greater emphasis on technical aptitude. This means applicants for roles in fixed-income sales might be asked how bond prices respond to interest rate adjustments. then. strong academic results don’t guarantee an interview. with your college’s career office coordinating the interview time slots. To filter this wave.) Networking is the Key In addition to the application and the interview. Banks are quick to offer these early applicants an interview as soon as possible.” Surviving Interviews If a bank likes your application form. 54 will probe to learn more about your skills and personality. she says. These events are extremely important. online applications and several rounds of interviews. This first round is all about ensuring you’re the right kind of person for the bank. Poor academic credentials are the most common cause of failure: Most banks seek nothing short of a 3. a campus recruiter for Merrill Lynch.5 grade point average. you should be invited back for more. Make sure you’re answering the questions. All firms have a list of skills and personal characteristics.” which they try to identify (see Interview Insiders: Know Your Q&A on page 57). spelling errors. prepare your answers offline and proofread them carefully. Between half and two thirds of these will receive the coveted offer of a full-time job. says Amabelle Cardenas.The Recruitment Process: A Survival Guide Your first job could be the hardest one to land With its reputation as a high paying and jet-setting industry. (For application details.” Students often underestimate the importance of these questions. However. a former investment banking recruiter turned graduate recruitment consultant. To weed out those with little else to offer. you should craft a detailed but concise answer that backs up your claim to the skills the bank is looking for. First interviews usually take place on your university campus. believes the best applicants are the first off the mark. To do well. Usually. Applications are received by the tens of thousands and the vast majority of those applying are turned down. check out the Employers section. It’s also a good idea to get your application in early. you have to stand out every step of the way. known as “competencies. Vivienne Dykstra. By this point. application forms ask searching questions such as “Describe a situation in which you displayed leadership skills to influence the outcome of an event. Surviving Application Forms The online application forms found on investment bank Web sites eliminate over 50 percent of the applicants. and why. “In this business. it is so important to network and make good connections. most banks organize on-campus events at the universities where they regularly recruit. investment banking exerts a magnetic attraction over business students. Be brief and clear. The bankers interviewing you will want to make sure you can function intelligently under pressure and are interested enough in their business to have more than a basic understanding of how it works. Recruiters say common mistakes include answers that are too short. To ace the application. If you create a credible impression as both a team player and a leader. That’s no small challenge.

and like. With undergraduates. It serves an applicant really well if he or she is diligent with follow-up through gracious follow-up calls. And be aware of the importance of work/life balance. 55 If you’re in school. “I’m thinking about getting in the business or I work at UBS and I cover you and I want your advice on how to cover you. Another key is that you handle yourself appropriately. Observations Danielle Domingue. for example. so it’s important to be competitive and physically in good condition. The hook is why you’re interested. If you’ve been turned down.” In summary. voice mail and faxes. engage in constant learning and constant teamwork. Bankers have the minds of elephants. George Soros at Soros Fund Management and Warren Buffet at Berkshire Hathaway. “I’d really like to talk to you next year. We’re not looking for a type but for a well-rounded background. UBS What advice would you give to students hoping to break into the business? I’m deeply involved with the summer intern program here at UBS. I make an appointment to come see them. Hedge Fund Relationship Director. Put in the time and be involved in extra-curriculars. We expect an MBA to have a certain amount of polish. Demonstrate the strength of your background. but arrogance can be a huge turn-off. They see up to 12 bankers for a full-time position. This country rewards risk very well. but we look at whether you have done your homework. in a good way. not a sprint. We have a training program for juniors in college that gives them an intense course in finance. Show a consistent and good face to the folks who have met you.” They’ll never turn you down. say. and why you’re interested in this field. What advice would you give to junior staffers? In a world where so much of what we do revolves around email. Show an interest. If you don’t have a background in finance.. Usually the second round of interviews is more intense than the first. ask questions and reach out. Call people and say. A lot of that comes with time. network. a recruiter can take a more mentoring approach. identify with right away. We have a young woman from the University of North Carolina who’s a physics major. We like students to exhibit confidence in themselves. by Michael T. Having an energy for what you do is something people notice. Study the three most successful investors in the history of the world: Julian H. we recommend getting to know the business and as many bankers as possible through a directed network. Robertson. Use judgment consistently. We look for honest and smart answers. Strachman. Be gracious even when declining an offer. You’d be surprised who’s here. We don’t forget people. To fly 11 or 13 hours to Brazil and two hours later to be interviewing a CEO. you’ve got to be in good shape. it’s extremely important to make a personal connection. very much the person selling to the client. We communicate quickly with our students about our decisions. and take calculated risks. by Daniel A. according to the event – whether it’s a dinner or a one-on-one meeting. Don’t have too much confidence or too much to drink. We recruit from both undergraduate and graduate programs. It’s a marathon. Kaufman. Jr. You don’t have to have experience in modeling. there are more careers in investment banking than I’ve seen in 10 years. Use the tools that exist around you and don’t be afraid to ask questions. Get out on the risk curve and be willing to have opinions on investments and express those opinions.com Q&A William Richards.efinancialcareers. Vice President. We want to see whether you handle yourself professionally. Read Soros: The Life and Times of a Messianic Billionaire.www. In a client-facing role. and Julian Robertson: A Tiger in the Land of Bulls and Bears. have good grades and intellectual horsepower. What else do you think is important? It’s a demanding business mentally and physically. go to recruiting events on campus. your personality should be more outgoing. JPMorgan For MBAs today. so you need to pace yourself. When I have something important to tell a client. or teaching or others. Careers in Financial Markets 2006-07 . Investment Banking Recruiting. And 80 to 85 percent of those people are switching careers from places as unique as the Peace Corps. Our process is very thorough but very quick. even if it’s bad news. Be quick on your feet. and most banks are pretty consistent about that.

” In July 2006. They’re taught by senior professionals. the competition among financial firms for the relatively small number of top students is also heating up. Firms also consider those with top grades from other tracks. We’re looking for people with diverse backgrounds. for example. accounting or finance. and not ones that come out of a cookie cutter. And on top of having a strong GPA and stellar standardized test scores. but Citigroup also hires trainees at other regional sites. corporate banking or global transaction services. and firms like Citigroup. it’s generally difficult to make a memorable impression through virtual means.” says Amanatides.” adds McLaughlin. extracurricular and community activities. “We do hire some people with other types of master’s degrees. managing director of campus recruiting for corporate and investment banking at Citigroup.. Amanatides says. “They’re not in training 100 percent of the time: Some of the time is devoted to working with in-house and outside vendors to train in specialty areas pertinent to the specific division. “We are looking for future leaders of this organization. investment banking. graduate training programs groom new hires for management roles in the company. from August to November. If possible. Citigroup’s graduate training programs run about four to six weeks. “It’s an extremely comprehensive process.” she says. into the full-time graduate training program. 56 Besides offering a strong footing in a firm’s inner workings. “This program is about taking theory into practice. candidates should be involved in school. either garnered through real jobs or summer internships. Careers in Financial Markets 2006-07 The requirements for all training programs are basically the same. such as doctorates in mathematics. The program begins in late summer and lasts for five to seven weeks. and analytical skills. of course. which accepts top-notch individuals with undergraduate and graduate degrees. Competition is stiff in investment banking. UBS. More established investment firms. preferably candidates with a concentration or major in business. according to Stefanie Amanatides. locations. “You have to have certain skills. including documented leadership responsibility. McLaughlin. They may need to prepare for various licenses. Exact timing differs depending on the firm and the position involved. The majority of slots are filled in UBS’s New York City and Stamford. but not at all textbook-oriented. Conn.” .” explains McLaughlin. They might learn what it means to handle a mergers and acquisitions transaction. While the contest for such a limited number of slots is fierce. Citigroup runs four graduate finance—and eight undergraduate finance—training programs.S. with a week of programming and additional homework to complement what is learned on the job. director of the bank’s campus recruiting efforts for the Americas. Merrill Lynch and JPMorgan all seek the cream of the crop from the nation’s leading MBA programs. They require candidates to have relevant experience. such as the Series 7 or Series 63. trainees at UBS work full-time. Those selected typically have a strong MBA background. like strong quantitative. including sales and trading. “We also look for a resume that shows success in a variety of areas. While it may be routine and comfortable for you to communicate by e-mail. banks and insurance companies are competing with alternative and boutique investment firms. depending on the division. computer science or other finance and technology-related programs. The lion’s share of the hiring occurs in New York City. Caitlin R. “It’s a structured program. UBS accepted about 70 MBA recipients from the U. “Computational finance and financial engineering degrees are of big interest. Typical of the leading firms’ training programs is that of UBS.” Amanatides notes. securing a spot can be difficult. candidates should skip the online application process and opt for face-to-face meetings during on-campus recruiting. There are some exceptions.” Once they’re accepted into the program. As in the programs at other financial firms. But. Recruiting generally takes place on-campus through the school’s career services office. fixed income and equities divisions.A Guide to Graduate Training Programs Although graduate training programs at the country’s top financial firms provide a wonderful entryway to the field. agrees that competition for the best MBA students is growing. or online. you also have to have an aptitude to learn. UBS places trainees in its investment banking. communication.” MBA trainees are accepted into one of a number of departments.

“We don’t require investment banking experience. and former global head of campus recruiting at Goldman Sachs. in particular—candidates are typically asked to provide examples of situations in which they’ve displayed a particular competency. “We look for specific examples of past behaviors which provide examples of future potential. “Some businesspeople like asking bizarre questions and conducting high-pressure interviews. recalls a man who was asked if he read the financial press.efinancialcareers. and more frequently conducted by senior bankers. leaving 20 miles. One man was asked to provide an example of his persuasiveness. leaving 120 miles. You need to understand the interview process. leadership skills and being proactive. On the second he traveled half of the remaining distance. “In the end. Within reason. which means—in the first round.” observes one investment bank’s head of graduate recruitment. “HR people have to restrain bankers from asking these questions.” says Nancy Labiner. nine days later. On day four he traveled 15 miles.” says Vivienne Dykstra. On the first day he traveled one-third of the distance. behaviors might include “Give an example of a situation when you demonstrated leadership. Put it down to nerves. but plenty of people answer interview questions badly. Q: A man drove from Aardvark to Beeville. your responses can cover any subject area as long as they’re detailed and specific to your own experience. Now the real work begins. he was still five miles from Beeville. you’ve excelled in aptitude tests. with a view to seeing how they react under pressure. head of Europe campus recruiting at Goldman Sachs. On what day did the snail finally manage to climb out of the bucket? A.” or “How would your friends describe you?” Questions are designed to be openended. leaving 60 miles. All that remains is getting through the interviews. The following Wednesday. former head of graduate recruitment at Deutsche Bank and now a consultant on graduate recruitment techniques. a guy who knows how to solve a brain teaser won’t necessarily be any good at bringing in a corporate finance deal. “It’s surprising how unclued-up people can be about what we’re looking for.” he says. says high-pressure interviews are increasingly frowned upon. Angela Garnett. He answered with a description of enticing pigs to mate.” David Schwartz. a financial services recruiter at Highland Partners in New York. what’s the best defense against gaffes during a highpressure interview? Preparation. During the night it fell back 2 inches. On day three he traveled 40 miles. working as part of a team or dealing with difficult customers. a bank hiring 200 graduate trainees will interview around 1. assertiveness. after covering three-quarters of the remaining distance. Sample Brain Teaser Questions Used by Banking Interviewers: Q. Most use “competency-based” interview techniques.” 57 Round One: Examples. for example. What do Banks Want? When it comes to behaviors.” Garnett says.600 people.www. You need to stand out. During the day it climbed up 3 inches.com Interview Insiders: Know Your Q&A Interviewers will try to trip you up You’ve filled in application forms. Some mistakes are self-evident. most banks focus on the same things: team building. So. A candidate can talk about a job at Starbucks if they can tie the experience to leadership. because the numbers aren’t in your favor: At this phase. leaving five miles. On the first day he traveled 60 miles. “It wasn’t a good answer. On the third he traveled two-thirds of the remaining distance. He said he found it quite boring. Examples. communication skills. Examples What banks are looking for is simple: They want examples. and anticipate the kinds of questions you’re going to be asked.and third-round interviews are more technical.” First-round interviews are usually conducted by junior bankers and graduate recruitment staff. How many miles had he covered so far? A: 175 miles: the total trip is 180 miles. On day two he traveled another 60 miles. Round Two: Brain Teasers Second. or inexperience. Joanne Scott of Morgan Stanley says questions designed to elicit desired Careers in Financial Markets 2006-07 . “The idea is to put candidates on the spot and grill them until they crack. At dawn on Monday a snail fell into a bucket that was 12 inches deep. On the fourth day. head of graduate recruitment at Lazard in London.

and how that influences their significant other. Another bank said it has even offered to employ spouses itself.” says Kristina Peters. What do you do? If job offers were buses. Deutsche has helped spouses find jobs. seven or eight offers. “That’s gone up to three or four. should you tell the banks pursuing you? There are clear advantages to doing so. Certainly. If you’re juggling multiple job offers.” Be Honest If you’re juggling multiple job offers.” says Morton.” says Deutsche Bank’s Peters. “All students will be given an exploding date by which to make a decision. “Top undergraduates and graduate students used to have an average of one or two offers each. says Connie Thanasoulis of Merrill Lynch corporate campus recruiting. But we won’t do it twice. remember: Every job you decline is an offer for someone else. “It helps if we can get information about who else has offered them a position.” says Merrill Lynch’s Thanasoulis.” says Julie Morton. four.” says Brian Hood. banks might offer additional incentives to help you make up your mind.” Don’t Delay If you’re a one of those receiving three. you might be tempted to hop on the first one and hope for a seat. we strongly encourage students to make their choices and move on. head of graduate recruiting at Deutsche Bank in New York.” But. we will typically give it to them. banks would be asking students to sign up at the end of interviews. for example. head of graduate recruitment at Citigroup in London.” she says. If someone needs more time because they’re interviewing somewhere else. Schools typically demand banks give their students a few weeks to make decisions. should you tell the banks pursuing you? There are clear advantages to doing so: Realizing you’re a hot prospect. “We make it clear rapidly exploding offers are unacceptable.” One graduate recruiter at a bulge bracket bank says deadlines can be stretched to a point.” Multiple Offers 58 In such a competitive industry. you might want to delay making a decision as long as possible. The more we know. “At business schools like Harvard and Wharton.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 offer from an investment bank – and all of a sudden three come along at once. If a spouse has reservations about relocating to the likes of New York or Chicago.” Career experts say top candidates could easily have multiple offers to juggle. “We are very flexible. But career experts say top candidates could easily have multiple offers to juggle. “After that. At the same time. But mismanaging the decision-making process could take you way off the track of your career. an offer will no longer be valid. Careers in Financial Markets 2006-07 . the chance of receiving multiple offers might seem unlikely. “They’re like a badge of honor. banks prefer for you to tell them everything. delaying for too long may mean offers explode beneath your feet. When banks know what’s going on. says Peters. the more likely we can get a candidate what they want. “We need to get as intimate as possible with candidates. associate dean of MBA career services at Chicago Business School. the bank’s lure may be extended in that direction. it’s not unusual for students to have four or five different offers. “Some students take pride in collecting offers. with exceptional candidates having seven or eight offers from different banks. “We’re all targeting the same top students.” The best candidates are heavily pursued. “Otherwise. “In the interests of their classmates. typically inviting candidates to meet their potential colleagues and assigning buddies (preferably an alum from the same school) to make frequent contact. they can be very persuasive.

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” Challenger says. not your industry or your company colleagues. periodically scheduling time to talk with her father even though sometimes what he tells her “is not always what I want to hear. incorporate what you’ve done professionally to date. “You’d be amazed at the information you can get or give within your network. A better approach is to “strategically reach out to people around you. Fay puts her money where her mouth is. including creative thinking. chief executive of the Chicago-based outplacement consulting firm Challenger.” And your career? It needs attention at regular intervals. Robert Half International In the inventory. The more of it you have. and volunteering at charitable organizations that can expand your horizons. And stress that you need honest feedback.” Fay also recommends regularly touching base with people in your network.” Such trusted advisors will become part of your personal network. too. with attainable.” she says. participating in relevant Internet chat boards. itemize your skills and aptitudes. Robert Half International Nurture Your Network “Your foundation peer network is the people who do what you do. You see the dentist twice a year. reading newspapers and trade magazines consistently. experts say. It’s all part of ongoing life maintenance. both internal to your organization and external.Managing Your Career It’s About More Than Finding Your Next Job You tune up your car regularly. And having a network.” Fay points out. So network. Ask them how they achieved their goals and to tell you about the obstacles they faced en route. too vague or too long-term.” “Some companies pick up the tab and pay to let you be involved.” he says. Rather. If you think simply having a job is enough.” A Tactical Plan Then. It’s a good feeling. Al Mariano. those you want to stay in touch with. when you need a job. in a vacuum. Have them help you assess your strengths and weaknesses. “Visit customers and potential customers. is crucial to getting ahead. for instance. “break it down and start small. Share best practices and information. she says. Through these groups. “It takes time to build relationships. teamwork and oral and written communication skills. you don’t pay any attention to it. Dawn Fay. attend events within the industry and join professional associations. ‘If you’re ever thinking of transferring…’ It gives me another layer of security. belongs to local civic groups and volunteers at several non-profit organizations. 60 Al Mariano Salary Professional/Consultant. but recruit one or more co-pilots. which can be daunting. Try not to be too broad. a salary professional/consultant with Robert Half in Chicago. recommends a better strategy: making a periodic “career inventory” – an actual written timeline and action plan. A major career-management mistake. Fay says. That makes it tangible. She also suggests staying in touch with college classmates.” Fay says. From Day One.” says John Challenger. They know where the jobs are. Mariano teaches college-level courses at night. and include what you’ve liked about your jobs – and what you haven’t. In addition to his work. talking with people in different departments within your company and at other firms. set down clear goals for yourself. or a family member or friend who knows you very well. You even clean out your closet from time to time. Gray and Christmas. Careers in Financial Markets 2006-07 . Keep your resume current. “Today few people work in one company all their lives. Listen when recruiters call.” she believes.” Use those people as sounding boards for your ideas. short-term goals. You balance your checkbook monthly and take vitamins daily.” Making a spreadsheet can help. Build lots of strong relationships with people who do what you do. “Organize your contacts: the people you meet along the way. “Be very engaged with your world because that’s where things come up when they’re least expected. use the plan as a road map. and your network might be a little bit cold if you only turn to it in times of trouble. “I’m socializing and contributing to the community. New York-based regional vice president of Robert Half International. the better off you’re going to be. Give yourself check-in points. Dawn Fay Regional Vice President. “I know people who say.” she says – or. “It’s important to enlist someone you trust in the workplace. she says. “Knowledge is power. you’ve won the battle but lost the war. you have to get out there and meet people. points out that networking is about more than going out for drinks with your co-workers. List your future goals and what it will take to achieve them. “If you don’t set it down.” To establish a network. is trying to accomplish everything alone.

for example). “Being heavily engaged in your work and taking on interesting.” she says. Today’s state-of-theart skills will be obsolete in five years. Fay suggests updating your resume on a timetable that works for you. “Make sure it all fits together. finish a significant project or acquire a new position within your company. because reputable recruiters have established “a level of trust and understanding” with employers.” Working through a recruiter is often advantageous. And that means keeping it current. “Don’t wait until it’s an emergency.efinancialcareers. Remember that referrals tend to open doors. challenging assignments that give you a strong skill set provides the background to solve the kinds of issues and projects companies face. keep on top of new legislation.” Thus. don’t forget to think about where you’re headed in your personal life. so try to anticipate the knowledge you’ll need to acquire. “Think it through and see if it’s something you’ll enjoy. but they just don’t have a passion for it. and don’t burn bridges. “Make time to do the things that will save you time in the end. “Be gracious. “to keep tabs on yourself. while it’s still fresh.” It’s also a good way to see if your career inventory is on track or.” 61 Resuscitate Your Resume Of course. “Use the name of the person who referred you.” But don’t focus on your career trajectory at the expense of your personal relationships. “When you’re doing career management. son? “Companies are most interested in what you’ve done within the last three to five years. says ongoing professional education and constant teamwork are imperative and will enable you to take calculated career risks. she says. “We’re going back to the age of the guild. That could mean tinkering with it every time you acquire a new skill or certification. Then. And try working in multiple industries. Challenger says the best time to look for a job is “when you’re not that interested.” Domingue says. when you call a recruiter for the first time.” she says. Or it could mean reevaluating it at regular intervals (every six months.” Thus. Fay says. and the world of banking is a very small place.” Careers in Financial Markets 2006-07 . vice president of investment banking recruiting at JPMorgan in New York. Challenger says.” The rea- Maintain Balance When mapping your career path. You’re defined today by your profession more than by your industry. “Keep the big picture of both in your mind. So.” adding.” Challenger recommends developing skills in real-world settings.” Additionally. professional certifications can provide a leg up. “Forty-five percent of people change industries when they change jobs. Fay adds. Otherwise it can hurt. “A lot of people aspire to be a CPA.” he says. CFP (certified financial planner) or to work in banking. you should always keep your business cards handy.” he says. “Don’t be afraid to move around and try different things.” Mariano says.” Charm Recruiters It’s important to include recruiters in your network. “Talk to people you trust and admire. make sure you actually like the kind of work you’ll be doing. remain polite and professional even if you’re not job-hunting at that moment.” Ask them whether they have used recruiters.” And if a recruiter calls. Only you as an individual will understand the balance.” Fay says. Don’t leave it up to others (to decide) when you make career moves. identify recruiters who specialize in your field. she says. “Personal relationships are paramount in this industry.” Challenger recommends updating your resume “each time you finish something major. Fay says.com Accept Challenges.www. “(Otherwise) you can get in a rut and not be sure how to get out. To find recruiters. even when declining (an offer). “Having a record in those areas demonstrates your abilities. as Fay puts it. “It’s very hard to start from scratch if you’ve not kept up your resume for a long time. either to apply for a job or to hire for a vacancy. systems and technologies that apply to your work. Stay Current Danielle Domingue. But it’s just as important to be able to place your resume in the right hands at a moment’s notice. Winnow out things over 10 years old.

.PAULA SHEEHAN.

Students looking for ways to position themselves might want to consider the backgrounds of the Goldman Sachs Global Leaders.efinancialcareers.www. the question is why?” notes Sullivan.” suggests Atanassova. created and sold Soccernet. Careers in Financial Markets 2006-07 . says Dey. company executives modified commission plans because their sales staffs were earning too much. because if something attractive comes along at a good shop you want to be notified.com with his father. adds Alan Geller. “You can do a lot more besides study” while you’re in college. “People will adapt to a new job. a national organization that gives students aged 11-19 a greater voice in education. Their common thread: real accomplishments. Hadfield agrees. “It’s important to spend time with people from different cultures. of course.” he adds. The Goldman Sachs Leaders have demonstrated they’re people who are results-oriented. start small. For example. In other instances. “If you’re in a hot area like credit derivatives or prime brokerage. “It’s important to have respect for different approaches.” he says.” says Joseph Sullivan. Geller cites some of his recent cases: A salesman joined a firm on a verbal agreement and then discovered his commissions didn’t match what was promised. The notion of “the best time to get a job is when you already have one” is both a cliché and a widely ignored truism. for example.” “Think big. adding that it’s more difficult to market a person effectively in such situations.com Happy? You Should Still Keep Your Resume Ready Always be ready to move No matter how happy you are in your current job. and you are being left behind. the Goldman Sachs Foundation brought 50 of the Global Leaders to New York. “You don’t owe it to your existing company to ride out the changes. On top of that. recruiters say. All undergraduates can take a page from the Global Leaders’ playbook. you should get into a company that you like. president of International Market Recruiters. managing director at AG Barrington in New York. Often it’s their last day on the job. In July 2006.” 63 Maintaining Momentum Often.” he said.” Sullivan believes. In addition. who recommends students look for opportunities to lead in ways that will help themselves and their communities. “A lot of people are asleep at the wheel and they wait until it’s too late. you should have an up-to-date resume in the hands of a recruiter. He went on to start the online education company Schoolsnet. or because of a poor manager.” “Change is good. scale fast.” Burnishing Your Resume Wall Street likes people who get things done. changing firms is the only way to get ahead. approaching recruiters when you aren’t seeking a new job allows you and the recruiter time to work together and develop a real relationship. Harvard University’s Thomas Hadfield. but you should have an agent looking out for what you do. “Your only limit is your ambition. and then the call me. Deborah Dingell of the General Motors Foundation and Michael Gilligan of the Luce Foundation—and developing their own networks among their colleagues. sometimes you have to leave for the sake of leaving. change at the top often creates turmoil and Approaching recruiters when you aren’t seeking a new job allows you and the recruiter time to work together and develop a real relationship.” he says. “If you are in the same job for four years. They spent a week hearing from socially responsible corporate executives and philanthropists—people such as Craig Newmark of Craig’s List. businesses that are growing. Staffers often seek to leave companies that have surrendered their competitive edge by halting investment in new products and innovations. founded the English Secondary Students’ Association.” The biggest reason people want to change jobs is money. Geller says. act locally. And. a group of 100 high achieving college students from 20 countries. “think internationally. Rajeeb Dey of the University of Oxford. “Even if you have only been there a year. some made even before they’ve entered college. get better and grow their careers.com to ESPN before he had graduated high school. uncertainty – and cause employees to begin considering a move toward the door. Boryana Atanassova of the American University of Bulgariawas one of the founders of the UN Youth Association in Bulgaria. “You shouldn’t have it out everywhere. Another Global Leader.

Kaye.” When seeking and nurturing a mentorship. “Don’t put all your eggs in one basket. remember: • Take it easy when approaching a potential mentor. Ask them for coffee. cast a wide net and build a personal advisory board. And a senior person is in the information flow in ways the junior person is not. Consider more than one. while another may be a sounding board for more sensitive. Battley advocates finding multiple mentors for your various professional goals. • Remember that the mentor gets something out of helping. One person may help you with concrete ambitions like getting up to speed on technological issues. Just like a personal relationship. the more willing they are to connect you with their friends and resources.” she says. nebulous. and for goals both specific. but personalityand compatibility-driven. says “there are a number of young people I sincerely want to help and give the benefit of my wisdom and connections in the field. so consider what you can offer the mentor. the most useful relationships are usually those sought out by the protégé.” “Long-term. or show them the writing on the wall. when the mentor knows the younger person well enough to offer truly insightful advice and feedback. interpersonal topics. “Don’t put all your eggs in one basket.” Kaye says. long. “Instead. • It’s a two-way street.” she advises. “Want to be my lifelong mentor?” is weird. I get a good feeling that my legacy is living on and that I get to expand my touch. “Formal programs tend to under-deliver because so much of mentorship is not so much interest-driven. or casually inquire about their background or expertise. • Be open and authentic. a mentorship will be richer if you show your vulnerabilities and weaknesses. CEO and founder of Career Systems International.” 64 It’s a two-way street. • Keep an open mind when it comes to mentors. believes Susan Battley. They can share warning signs. a Pennsylvania-based career consultancy. “Instead. so consider what you can offer your mentor.and short-term. a New York-based executive coach and author of Coached to Lead: How to Achieve Extraordinary Results with an Executive Coach. cast a wide net and build a personal advisory board.” she advises. Careers in Financial Markets 2006-07 . Asking a stranger. as well as the confidence to share their most prized contacts and connections.Building Effective Relationships With Mentors Think outside your company for career-long nurturing While many Wall Street firms have mentorship programs.” Beverly Kaye. a mentor gets to know you in a way you don’t even know yourself. Or perhaps you can return the favor of guidance with research for a specific project. says a mentorship’s real value often isn’t apparent until many years down the road. and they can offer open feedback that you would not get from others. “The longer you know a mentor. Perhaps you have insights into new-recruit impressions or a specific type of technology the older person would find useful. who has mentored many people though her career.

associate director of the Goizueta MBA Career Management Center at Emory University’s Goizueta Business School. networking remains a critical component of the business-school graduate’s job search – and their career advancement.efinancialcareers. Atkinson notes that good networking skills can bridge the gap.” While Neville cautions “networking isn’t a substitute for research. “The process has to be a two-way street to be effective. and many of these folks are more than willing to help graduates of their alma mater. vice president of industry relations for the Graduate Management Admission Council.” she points out. friends and work associates. Atkinson suggests establishing a plan to build and develop a network of individuals and organizations valuable to your career. Outstanding students should also reach out to key professors. “You’ll find that it helps to network when you know your subject matter or area of expertise.” Take the time to research and join some of the myriad of industry organizations and MBA associations valuable for networking. though. In finance in particular. And.” she advises. especially if students are diligent in maintaining ties to their former supervisor or boss. internships held during graduate school can lead to important networking opportunities. More importantly. networking helps separate a candidate from the pack. since these associations specifically seek to help in career development. most universities maintain a database of alumni in a given field. those from your undergraduate and graduate school. joining an alumni association helps to maintain contacts. since faculty often handle consulting assignments for corporate America.com Making Friends and Influencing People Networking is a critical career tool Today.www.” says Daphne Atkinson. 65 Internships held during graduate school can lead to important networking opportunities. “Networking pays significant dividends in one’s career. Even with the help of campus career advisors and visiting corporate recruiters. “Don’t discount any source. “Networking isn’t a static thing. reminds students to first reach out to their extended network of family.” she points out. a non-profit education association and the provider of the Graduate Management Admission Test (GMAT). Kori Neville. Taking and never giving back will eventually leave you out of the loop. networking helps separate a candidate from the pack.” With competition for plum opportunities at a high. a number of unadvertised opportunities go to individuals savvy enough to connect with key people in the industry. but it can’t be something that you merely engage in for the short-term. “Possibly a family friend or someone with a similar interest can be helpful on your career search. “Remember to keep yourself in the loop even when you’re not looking for a job.” Careers in Financial Markets 2006-07 .” she says. While women and minority MBAs remain underrepresented in the financial world. the National Black MBA Association. and the National Society of Hispanic MBAs helps to increase networking ties to finance firms. “Make sure you do your homework first. She notes that reaching out to such organizations as the National Association of Women MBAs.” she suggests. because there will come a point in time when you just may be. “The most important contacts are the obvious ones. especially if students are diligent in maintaining ties to their former supervisor or boss. “Remember to always be open to contacts that may be outside of your realm of experience. In addition.” she says it’s an effective way to provide prospective employers and colleagues with insight into your skill set. with competition for plum opportunities at a high. Atkinson also suggests helping others with their networking goals.

the answer is because the employee was unhappy.. Max Messmer. In a recent Robert Half survey of executives at the largest 1. For the employee. chairman and chief executive of Robert Half International and author of Managing Your Career for Dummies.” says Deissig. “In financial services. However. particularly among those firms that recognize the morale and pro- Careers in Financial Markets 2006-07 . it’s like musical chairs. “If there isn’t a lot of push. When they take that approach. the outcome is a loyal employee who has grown into a new position.Take the Offer and Run When to make a move for greener pastures You’ve landed your first job. banks and financial services firms seek exact fits. ended up leaving their firm. Volunteer for new tasks to demonstrate enthusiasm. “People from First Boston go to Morgan Stanley and people from Morgan Stanley go to UBS. and make your boss look good. and it just rotates. If you’re looking to move—internally or externally—Messmer stresses you should know the skills required for the job you’re pursuing.” Deissig says. if they are smart and have a degree of learning agility. and acquire any additional education you may need.” ductivity benefits of promoting from within. and the best growth opportunities often are internal. The recruiters have a wider range of people to present. says that job-hopping can be an attractive way to advance in times of low unemployment. Messmer suggests employees make sure their managers understand their skills and career goals. candidates should help prepare their successor. “You want to know if the person is a quick learner. Firms shouldn’t make counteroffers either. why should they leave when their current employer just matched the salary offer?” Often. When Deissig evaluates candidates for their ability to move into a more challenging position. “That means the only pull for a person to leave their current company is more money.” says Deissig. voluntarily or not. and may spend their time looking for a replacement. pay is often the only difference between one company and another. it is not a leap of faith to move that person into a bigger job. In addition. The result is a win-win for recruiters. eager job candidates. A year later a recruiter brings you an offer of a better salary from a competing firm. he looks for indications of inquisitiveness. either with a manager or the company’s culture. says Messmer. hiring companies provide more than just additional money for the same opportunity: They offer candidates the chance to learn new areas of the business. and job seekers have an incentive greater than just money. 66 Why Leave? Rather than bring in a new hire who has to learn all of a position’s responsibilities. Running up the Ladder That replacement may well come from within the company.S. says Bob Deissig. he adds. a partner at the Ayers Group.” Deissig says. In such cases.000 companies in the U. Doing so allows you to move on with professional bridges unburned. You go into your manager’s office to resign and receive a counteroffer. when they go in to resign it becomes very commonplace to counter. citing a survey in The Wall Street Journal that showed more than 90 percent of job seekers who accepted counteroffers were unhappy a year later. Most. if they go outside the box rather than always taking things in logical succession.” he says. in fact.” Finally. “If a person has the right experience. So. “You often can see that outside of work as well. candidates and banks. 60 percent of the respondents said they were more likely to promote from within than they were three years ago. firms get to look at a group of highly skilled. he notes. a New York-based human resources consulting company. For everyone. his decision to accept a counteroffer will lead to second thoughts in the months ahead. As for his managers: They’ve just learned the employee isn’t loyal. Should you take it? No.” To position themselves for those opportunities. Learning Opportunities “We tell clients to be more flexible and provide learning opportunities. “employers value loyalty.

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Scott. Particularly. Associate.Voices of Experience Professionals offer advice on investment banking careers Steven Marotta. when you work as a junior analyst. Structured Finance Analyst. The pedigree of the school helps. Richard P. Portfolio Manager. Moody’s Investors Service • The most important thing is to come in motivated every day and be willing to learn. My career wasn’t planned. • You have to have a mindset compatible with quality control. but also counterparts in a deal and agents. so you have to be able to understand the equity. Wyper Capital Management 68 Harold Tinkler Chief Ethics and Compliance Officer. Evan Tepper. which involves reading and asking lots of questions. Chief Ethics and Compliance Officer. Cervone. as indirectly it can influence portfolio and trade flows that in turn drive currencies. as well as how the businesses operate. relax and avoid the temptation to overanalyze your career path. The work should be the primary motivation. VP and Global Currency Strategist. it’s difficult to take time off because of the pressures to perform. Kathleen D. getting a job with a marquee name early would help. You must have the information at hand to back up your recommendations. I found it. JPMorgan • Markets are highly interrelated. • A career in investment banking is very demanding. RA Capital Advisors • An internship is the best way to determine the areas you’re interested in. Principal. Imran Ali. Steven Marotta Research Analyst. but it’s important to maintain a balance in your life. to get along with the people you work with. • This is a time-intensive business. • Developing a network helps. Deloitte & Touche USA • Learn as much as you can about business on your own. And. People shouldn’t go into it if they want a lot of free time. Alta Communications • Know your finance and accounting. • Take a broad range of courses in areas such as marketing and strategy. Cervone Managing Director. There is so much to learn that even people who have been part of the group for 10 years are still learning new things. Global Head of Network Management. But you don’t want to get burned out. Rebecca Patterson. Patrick Costello. Richard P. • Get good grades…and go to class. Take a deep breath. etc. but if you aren’t in one of the top schools. Putnam Investments • Take courses in finance and anything that teaches you about the valuation of companies. You must have the ability to communicate your ideas. Careers in Financial Markets 2006-07 . Mellon Group • Career decisions are frightening. and you can’t be a shrinking violet. it’s important to communicate a high level of enthusiasm when looking for jobs at mutual funds. • You must have a natural curiosity about the world. Wyper Capital Management • Interpersonal skills are very valuable. • Keep your eyes open. Harold Tinkler. Deloitte & Touche USA • To be successful in compliance you must be able to develop a deep expertise in areas that you oversee. Portfolio Manager. Managing Director. That is something I underestimated coming to this side of the business. speak up and take in as much of the road as possible. bond and commodity markets and how they each could impact currencies. It requires the ability to relate to people and complex issues that are subject to compliance monitoring. • Don’t be afraid to have an opinion and to take a stand on any deal or investment opportunities. because they’ll teach you to evaluate management decisions and how they impact the top and bottom lines. • You have to be prepared. • Be humble and learn to work well with others – not just colleagues. Putnam Investments • Policymaking is also important. Most are. Research Analyst. and polish up those skills by working at either an investment bank or a consulting firm beforehand. and to rise to challenges when necessary.

If you don’t get a response. Your first task? Get noticed. While Starkie says such tactics won’t win you any friends. If you do make contact. including clients. “Look at the office space. and search firms can provide you with a network of potential jobs that may not otherwise be available. you may still want to proceed after ratcheting down your expectations and setting a strict policy against their sending your resume without permission. Ask about the person’s experience with the Wall Street product they’re handling.” he says.” says Allan R. At your initial meeting with a recruiter: • Be prepared to explain why you’re different from all the other candidates. As president of the New York-based retained search firm Jay Gaines & Company. But if you think that way. which you should handle professionally and properly.” • Know your product. You may find yourself opposite a less-than-professional recruiter. says “One of the best ways to get on my radar is to be referred by someone I know. “I always ask ‘What do people say about you?’” says retained search consultant Ellig. e-mail is good but a handwritten note is better. Even if you don’t fit a current opening. that’s not good. understand the movement in the marketplace. If he or she is sitting on a hot opportunity. try to get a face-to-face appointment. • Ask for referrals from colleagues or friends. which profiles practice areas. and don’t divulge confidential or proprietary information (“I don’t know if I should be telling you this.efinancialcareers. One way to do this is through information sharing. Starkie. Jay Gaines advocates building relationships with several recruiters whose careers will parallel yours. they’re dealing with. keep the long view in mind. Janice Reals Ellig.www. size and salary level handled. don’t nag – just go to the next search firm on your list. but…”). president of retained search firm Gould McCoy Chadick & Ellig. president of contingency search firm Teeman Perley Gilmartin. it’s important to maintain a relationship. • Don’t be negative about previous bosses or companies. Face to Face Use your meeting to gauge the search consultant’s professionalism. Good search consultants know the value of introducing worthy clients to one another. a partner at New York-based executive search firm Riotto Jones & Company. ask if it’s okay to e-mail every 8-12 weeks to check on new searches.” • Research respectable firms operating in your area. you’d do well to take matters into your own hands. what kind of placements they’ve made and what firms Careers in Financial Markets 2006-07 . what’s going on at different firms and what’s happening in your sector. this is an important relationship. In other words. with some of Wall Street’s uninitiated believing they’re a chromosome apart from telemarketers. For this. Search the World Wide Web or visit the library to consult the Directory of Executive Recruiters. 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. A good search consultant is your ally through thick and thin. Ask the recruiter for introductions to three people who might be helpful as you explore your options. Because they’re only paid for successful hires. “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. Follow up by phone no more than twice. And send a thank you note. If you’re going to be too shy about it. think again. To show you know what you’re doing: • It’s often easier to make human contact with contingency recruiters. • Send an introductory e-mail to the search partner who handles your area at a particular firm.com How the Right Recruiter Can Push Your Career Know what you’re doing to play the game Recruiters get a bad rap. contingency firms are more likely than retained firms to consider resumes that come in over the transom. To wrap up an interview. if your phone isn’t ringing.” says Susan Teeman. 69 Information Exchange Once you’ve made contact with a recruiter. “I want to hear in a concrete but not arrogant way what you’ve accomplished and what differentiates you.

Q: Are most people receptive? If they’re not receptive. but want to move internally. by their reputation. You have to find people who have those three elements in the same priority you do. Q: Speaking of which. And then once you have a family. Q: So how do you find this mentor? You’ve got to find that person by their behavior. internally. It shows up in your job and in interviews. Q: Many experts say mentors are important. If you’re doing a good job. You need a good recruiter like you need a good lawyer or a good accountant. They form these internet chat rooms. those priorities can change. And the number three is money. You’re not learning anything. The number one motivator in peoples’ careers is learning. that’s a problem. you’ve established a reputation. New York Q: What can you do to be more proactive in managing your career? A lot of us make assessments about our career success by benchmarking ourselves against our peers.Recruiter Q&A: John Mazzei. By that time. A job is external. The same thing is true for an accountant and an executive recruiter – not so much to get a new job but as a career advisor. But if you’re working in a smaller company. I think all that stuff adds to your professional development. But if you show me someone who has had three jobs in the 10 years. A career is something you give yourself. fun and learning. It’s all about getting into a community of fellow travelers. There’s nothing wrong with that. Careers are internal. People say everyone is motivated by money. You need someone who shares your values or world view. And then you see their receptivity. my answer is self-serving. Q: Is it better to stay in one place for a long time. My guess is. Rand Thompson. and in each job they had increased their responsibilities and had developed professionally? That’s fine with me. It’s really whether you’re in an environment where you’re learning. But you should wait until you’re on a job for at least six months before approaching someone. You just can’t beat it. How do you find a mentor at work? The first thing you should look for is common values. Managing Director. There’s something about always learning something that’s exciting. but that person had the same job and responsibilities in each position. You know what’s topical. and they talk about their careers there. 70 Q: What should people with financial services jobs be reading. how do you know when it’s time to leave your current job? Boredom. The number two is fun or fulfillment. I’d be a bad role model for you. And by the way. so you’ll put money first. to further their careers? Books in the popular press. then your contributions to the organization are apparent. You can take a night course. your mentor may change. by their successes. then you’ve picked the wrong mentor. The job is something someone else gives you. That’s how you know if you’re in the wrong job. If you’re trying to start a family. No one will want to help you if you’re not effective in your job. being a mentor is considered by most people to be an honor. newspapers. Say I’m money-hungry. So what can you do? You can join an alumni association. neither one is better or worse. but you’re not. there aren’t many peers. You don’t need someone who’s doing the same job. And that’s how you identify them. periodicals. A lot of people do it by computer. And you ask them if they will be your mentor. you may be trying to maximize income. Careers in Financial Markets 2006-07 . I get a lot of phone calls from people who aren’t interested in leaving their company. or to move around and get a diversified palette of experience? To me. If you brought a resume to me of someone who had three jobs in 10 years. Just because you haven’t been sued recently doesn’t mean you don’t want a good lawyer. Q: How should people view recruiters? As someone constantly in their lives or someone they call when they want to make a move? Unfortunately. There are three things you need to focus on in a career: money.

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Inexperienced traders chase gains. Hirschhorn encourages traders to create a daily game plan and motto – and to stick with it as closely as possible. not the outcome of the trade. “Ultimately. “I was at a point where there was a wall in front of me.” Focusing on points rather than dollars allows you to “focus on the process of the trade.efinancialcareers. Brett Steenbarger. “Most people don’t recognize that.” “Battling the mental aspect of this business is the hardest. a private trader who trades in commodities. likens this fear of trading to a mild form of post-traumatic stress disorder. “I couldn’t bring myself to jump back in. how one handles the mistake is an important thing to learn.” says Steenbarger.” Blocked And Under-Trading Jeanne Zingaro. Inexperienced traders chase gains. Overcoming the impulse requires self-discipline.” says Hirschhorn. he says. suffered from a severe lack of confidence after one of her trades resulted in a big loss. To overcome such trauma. “Discipline is a muscle. and that it is an example of implicit learning. Hirschorn’s techniques are “a good way of evaluating the day. with the help of Sperling Chief Operating Officer Doug Hirschhorn.” says Evan Lazarus. most industry insiders will tell you.” says Lazarus.” 73 “Experienced traders control risk. says at some point most traders—including himself—fall prey to over-trading. in the words of Alan Farley. managing director of Sperling Enterprises. despite the difficulties posed by his career. “In order to succeed in this business. Dr. you have to exercise it. It gives me a real sense of accomplishment. Several times. “Doug opened up my mind to concepts like the prospect theory. you have to have utmost mental strength. director of trader development at Goldenberg. each time. is a business with tremendous turnover. Or. com: “Experienced traders control risk.” Indeed.” says Steenbarger. who worked for both the Chicago Mercantile Exchange and the Chicago Board of Trade before joining Sperling Enterprises in 2005. Hers was a common trader predicament called “under-trading. mine to complete.” he says. However. “He helped me to understand myself more so than anything else.” he declares.” she recalls.” Overconfidence – And Over-Trading While the lack of confidence begets under-trading. overconfidence and the fear of missing out on trades can lead to an opposite result: over-trading.” she says. Olympic athletes or ballet dancers at the Bolshoi. he’s found himself in situations where he was sure he couldn’t handle the business’s mental pressure. “That’s when we find ourselves putting on trades when we don’t really have an edge. Lazarus says only about 10 percent of the traders he knew when he started remain in the business today. the factors that make for successful performance as a trader are the same as those that make for success among chess grandmasters. We find ourselves not really adhering to our trading plans. Still. and I could not knock it down. I believe that trading is a performance skill that is learned through intensive exposure. a clinical psychologist who specializes in trading psychology.” he says. For Zingaro. Tom Rice.” which occurs when traders identify an opportunity but can’t make themselves act. Lazarus managed to overcome his trader’s trauma. who began his career in 1998. “It’s mine: mine to create. thinking about trading in terms of points instead of money.” explains Lazarus. mine to grow. trading has become “very defining for who I am. “In that sense.” or simple boredom from a lack of trading activity. He also suggests keeping a journal to help identify what’s lead to their successes – and their Careers in Financial Markets 2006-07 .” losses. a private trader and columnist for TheStreet. Hehmeyer.com How to Face Trader’s Trauma – Then Trade Some More Using mental discipline to keep yourself on track Trading.www. Over-trading can also be triggered by frustration from a previous loss that leads to a “revenge trade. “Everyone makes mistakes.

’” Instead of coming on so strongly.” adds Janice Reals Ellig. co-head of search firm Spencer Stuart’s private equity and investment banking practice. for the first year. The ‘Other-Place’ Trap In his former job as head of international human resources at Merrill Lynch. not you—is more like it. “a top asset management firm. 74 Slower is Better At least one observer would like to see companies go a little easier on new employees.” he says.” says Ellig.” Once you start your job. “One of the classic missteps was the ‘I’ve-done-itbetter-at-the-other-place’ syndrome. Easier Transitions at High-Growth Firms Not surprisingly. don’t be surprised if you’re pretty much abandoned to your own devices once you’ve been shown your desk. learn how we do things and then act. they expect you to hit the ground running. instant gratification—for your new employer. Make sure you’re crystal clear on your boss’s operating style: Is he or she a big communicator or not? Are you expected to operate independently or check in every step of the way? Once you start your job. To prepare yourself. “Look. president of New York-based retained search firm Jay Gaines & Company. Learn our culture. and learn all you can about how they operate. Acknowledge the firm’s successes before taking a hacksaw to its failures – and don’t voice your opinions in a critical or unflattering way. At least one observer would like to see companies go a little easier on new employees. He prefers the approach of one client.” says Jay Gaines. “They’re so busy working on things that they seldom communicate. “To expect a stranger to come into a company and really have credibility and confidence and be able to hit home runs. “Companies often don’t welcome you with open arms because they don’t know how to. Find out what’s made them successful (or not). or fail to communicate.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 for you during the first months of your new job.” which tells candidates. while others are more run-withthe-ball entrepreneurial. During the interview process. “I’ve seen instances of senior executives coming in and saying. as well as your future boss and other successful figures within the company. Sean Woodroffe observed many instances of over-eager but insensitive new hires committing harikari. investigate the people who’ve held your position previously.” way you guys do things is archaic. I think is dumb. This is the way we did things at our company.” Preparation begins before you’ve even received a job offer. we really would prefer it if you wouldn’t do anything. In the resultsoriented world of finance. don’t be surprised if you’re pretty much abandoned to your own devices once you’ve been shown your desk. and it was better.” says Peter Gonye. take time to analyze and understand your new environment. “Some are bureaucratic. president of the retained search firm Gould McCoy Chadick & Ellig. “you should certainly understand what type of culture it is before going in. many new hires find it easier to transition into places devoid of settled fiefdoms. “Companies that are in a really heavy growth mode are much more fluid. “In all cases. ‘The Careers in Financial Markets 2006-07 .” says Ellig.

say. When the right opportunities come along. bank that won’t be subject to a takeover. Deutsche Bank cut 6.-based firm • Anticipate the strategic direction of the company you’re working for • Watch out for consolidation – Jay Gaines. More recently.” he observes. which went through numerous gyrations before reaching its current powerhouse status.” • If you’re based in the U. We asked a selection of search consultants and career advisors for advice.S. “The more favors you do for other people by connecting them and making things happen. and judge whether the area you’re in is peripheral to the core.” 75 . he warns career progression will probably be slower there than at a smaller firm or a fast-growing European bank. says you should recognize you’re not going to stay at one organization for your entire career. If it is.S. “If you work for a top-four bank in the U. As well as giving up-and-coming European banks a wider-than-average berth. work for a U. For Gaines.” he says. the securest career option is working for a large U. you could fall prey to business restructuring. Here’s what they said: • Move proactively • Build a large rolodex • Don’t overspecialize too soon – John Challenger. a New York-based financial services search firm. you should move proactively.S. he points to UBS. “These are crowded places.S. There’s a tradeoff between the speed of advancement and lower risk.” By way of example. the outplacement provider. chief executive of Jay Gaines & Co. consider its core strengths. “When Americans work for nonU.. While you’re working. the more favors they’ll do for you. Challenger cautions against overspecializing in a small organization too early in your career. you also should devote 10 percent of your time to building a hefty rolodex and doing favors for others. “You’ll meet a lot more people and have a broader scope. Jay Gaines & Co. Challenger Grey & Christmas John Challenger. “Non-U. banks. institutions have restructured on U. Careers in Financial Markets 2006-07 It’s also easier to go from a big organization to a little one than the other way around. the chances that your organization will be acquired (and that you’ll lose your job as a result) are very low. Wall Street bankers should think about working for U. “Look at the institution you’re working in. There’s no shortage of precedents: In 2004. “Early on.S. and between 2001 and 2003 Merrill Lynch eliminated some 24.S. but you’re also more likely to lose your job. it’s better to be a generalist working for a larger bank.000 jobs.000 staff positions... So what do you do if you want your banking career to have the longevity of. soil many times.” he says. chief executive of Challenger Grey & Christmas.” he believes.com How to Future Proof Your Career The right moves today mean you may be around tomorrow Careers in investment banks carry a distinct risk premium: You may be earning more money than people outside the industry.efinancialcareers.” he says. Challenger says.-based institutions it’s often a much bumpier ride.www. Credit Suisse said it will cut 300 jobs as it repositions its asset-management unit to focus on core strengths. Sandy Weill’s? The fabled Citigroup chairman retired in 2006 after starting out as a runner on Wall Street during the 1960s. Gaines advises keeping an eye on your employer’s strategic direction.S. says Jay Gaines. If job security is all-important. On the other hand.S.

If you want a job in Italy. it helps to have friends in high places. fund with some $30 billion under management. they specialize in buying out large established companies. Sabet says you’ll be well-placed with experience in one of four areas corporate finance. the Englishspeaking world has an advantage: U. with no guarantee of being rehired. 76 Start Young When it comes to breaking into private equity. Valaperti says the desirable combination includes a little banking. “you need to have had international exposure. head of the German team at private equity firm Candover. a Paris-based consultant at search firm Heidrick & Struggles.” The implications are clear: If you’re at the wrong school. you risk being trumped by rivals who’ve already gotten experience in the business. But on the whole. The MBA Springboard If you plan to use the MBA track into private equity. The Italian private equity market is small and recruitment is rare. Funds typically hire with two-year contracts and then send junior recruits to study for their MBA. and then selling them.” says Jens Tonn. presents to students at just three schools: Harvard. are alumni and have been known to run roundtable discussions for students. However. and UK funds increasingly do the same. hires 15-20 associates per year. funds hire junior staff on an annual basis. a little strategy consulting and a smattering of industry experience. co-founder of Kohlberg Kravis Roberts. But if you’re attracted to a career in private equity. If you’re coming from banking. The first option is best but doesn’t guarantee a job for life. In Germany. job openings are rare.” Guy Townsend. With hundreds of millions—often billions—of dollars to invest. In 2005.” says Resnick. director of career development programs at Harvard Business School. On the other hand. Lori Sabet. “You need a top-class degree from a top school. says most people haven’t much of a chance. “It is also one of the most competitive. senior vice president for human resources. a London-based firm specializing in private equity recruitment across Europe. says most come from investment banking or strategy consulting. There are two common entry points: two to three years into a first job after college graduation. If you’re a banker. but the payoff can be substantial Private equity funds are the kings of the capitalist system. People who work in private equity can make incredible amounts of money. experts give the same message to everyone: excel.The Global Private Equity Club and How to Get In Breaking in is tough.” Careers in Financial Markets 2006-07 . improving them. some funds will occasionally fill senior-level gaps with outsiders. They also benefit from the kind of job security most investment bankers only dream of. how do you maximize your chances of success? It all depends on where you’re based. says that while most funds have well-established offices in France. The Carlyle Group. leveraged finance or mergers & acquisitions.S. industries to get into. Blackstone Capital Partners. managing director of Walker Hamill. this was no mean feat. Regina Resnick. the giant PE fund with nearly $42 billion European Options Barbara Valaperti. a U. points to the school’s historic ties with the industry. or immediately after earning an MBA. Columbia Business School sent less than 5 percent of its graduates into careers in venture capital or private equity.” says Tim Butler. don’t think finding a job is easy. “It’s a very personalized process – they are not hiring in great numbers and like to get to know people first. your chances of meeting the right people will be severely limited. be sure to choose the right school. “English is essential: There are very few independent German funds run by Germans.” If you’re one of those few. if not the most competitive. and you need to be ranked at the top of your peer group. It helps that big names like Henry Kravis. Speaking many languages can also be an advantage. Columbia’s head of the career services.S. you need to work for a top-quality name. for example. under management. Lucky Few “Private equity is one of the most popular career destinations at this point in time. if you delay your initial move until after you’ve received your MBA. financial sponsors. Considering that most funds hire no more than 10 people each. “Private equity funds like to build relationships with students before they hire. Wharton and Columbia.

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In the first stage. a committee of managing directors considers names on a case-by-case basis.S. the list of candidates is presented to executives higher up the ranks.” says recruiter Facon. your chances are severely depleted. If you want this all-important title inscribed on your business card. it might bring you on as an MD.” he says. If you don’t make it twice in a row.” 78 Treat People Well MDs are good managers. The solution sounds simpler than it is: Find someone senior who likes you and respects your work. Make Lots of Money for the Bank Revenue generation is not the only criterion for making MD. members of the investment banking board review each name’s suitability.” she explains. and hold a heavy plate of managerial responsibilities to boot.” says an MD and head of department at a U. bank. Bankers who don’t make the cut are left wondering if they ever will. You need to show you are one of the few. If you’re go- . or to suddenly become sweetness and light when you have a reputation as a dragon. Throughout.” Handling Failure – Without Failing Candidates typically get two shots at promotion after graduating to the short list. Jean Facon. You have to make the fees. team leaders present nominations to a group of MDs convened especially for the purpose. At UBS. They should know how to bring out the best in people. but only a few make the difference between success and failure. Once the names have been debated and the cream of the crop is selected. ing to make it. you get to work with big producers and they are big enough to credit you with your contribution. but it’s certainly one of the most important.” says one banker. While low-level promotions can typically be swung with a good word from a direct boss. If not. “The chairman is briefed on who is who and approves their promotions or not. a former managing director in equity capital markets at Deutsche Bank. They’ve obtained the highest title an investment bank can bestow. Careers in Financial Markets 2006-07 Make Friends in High Places Given the pivotal role played by current MDs. While each bank has its particular foibles.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. In the second stage. use the following strategies to boost your chances. shoulder more responsibility and are admitted to an elite inner circle. Or. David Charters. often complete with its own dining rooms. you can try your luck elsewhere. describes the evaluation process as collegial: “Typically. console yourself with the fact that MDs are not always the most highly paid. “particularly one generous enough to credit the team for achievements. a JPMorgan managing director turned recruiter. “A late lobbying effort is unlikely to make any difference. “It’s the ‘in’ crowd versus the ‘out’ crowd. banks also want MDs to demonstrate their core values (typically found somewhere on their Web sites) both inside and outside of work. You won’t be promoted if you reduce junior colleagues to tears for making a spelling mistake. “Numbers speak louder than words. both in terms of performance and in adhering to common values. sidetracking the usual process entirely. On top of that.” complains one would-be MD. says the luckiest VPs are nominated within just two years. “Everything needs to go according to plan: deals come in.” says Charters. At this stage. “Lots of people are involved in deals. all start with a short list in a process that begins at the grassroots and ends at the highest echelons. If that happens. Do All This Consistently It won’t be sufficient to make high-level friends in the months just before promotions are considered. the group assembles a list of the most exceptional candidates. “There is merit in attaching yourself to a big producer.” adds an MD in equities at a German bank. disapprovals are unusual. the selection of MDs is a more complex process. “You need years of a consistently strong track record. “It is not only about long service. existing MDs play a pivotal role. for example. Through a process of elimination.” Rungs to the Top Becoming an MD is nothing like becoming an associate or a vice president. you need to navigate your way to using one of the bank’s stars to guide you. who knows you and who likes you are critical. They typically make more money. the former Deutsche MD. If a new bank really wants you. vice presidents who excel in their annual assessments are nominated by the managing director in charge of their team. you could put in four or five years at VP level and still not make it.

prior to my senior year at Harvard University. But nothing that we used back in the day is used now. especially his role as an alumni of Sponsors for Education Opportunity (SEO). equity finance and market-making at JPMorgan. Q: What are the hours like in sales and trading? In the beginning we were more manual.www. Having a math degree helped a great deal.efinancialcareers. The modeling used in structuring deals is very mathematical. specifically in Latin America. a non-profit organization that helps people of color achieve their professional goals. Q: Not in M&A? No. Q: What was your initial goal when you were just starting out at school? Well. we finish up closer to 6 p. They were – and still are. Q: It sounds like they were exciting times. the statistical analysis for inputs for pricing the derivatives—to determine if the contract is priced richly or cheaply—are all very dependent on math. Q: Where was the internship? The SEO helped me obtain a summer internship at Smith Barney. Mexico. and there were other considerations. Q: And you went back to Harvard after that internship? Yes. or JPMorgan’s Investment Bank Inclusive Leadership Council. Understanding the risk paramCareers in Financial Markets 2006-07 eters of a deal requires math. SEO places 300 interns a year. yes. because you can start as an analyst. given the volatility in that region at that time. New products in equity derivatives were coming online and new markets were opening up every day. until 10 p. in economics or math. Q: Intrinsic rewards aside. Q: Did you go into this with programming skills? We programmed a lot to develop risk management tools and customize applications. Prior to graduation. I applied to JPMorgan in sales and trading. An internship in the summer of ’94. 79 Joseph Ghartey .com Joseph Ghartey. I am co-chair of SIRV – Saving. when asked about his career. he’s more apt to talk about his recruitment activities: positions as co-captain of the Harvard University recruiting team.m. how’s the money? I started at $35. We probably used some visual basic and SQL languages. as I did. piqued my interest in Wall Street. from a pay perspective there is more opportunity for compensation.. Investing and Returning Value. Argentina. I was part of the Americas Equity Derivative Team. Although he was made a managing director at 31. JPMorgan Joseph Ghartey. or as co-head of the Junior Resource Development Council of JPMorgan.000 and I’m making a lot more than that now. In ‘95. Then meetings and dinner can run late. As an alumni member of SEO. Today. Q: And did you go on to graduate school? No. We press a button now to generate our P&L statement. Head of Equity Derivatives for the Americas. where I reviewed annual reports and 10-Q’s and put together pitchbooks. I graduated in ’95 with majors in math and economics. we use C++ and mainly object based models. There are more roles in this field suited to mathematics.m.D. Q: And your charity work? Very important to me. credit and other derivatives were just becoming really hot in the States. Sales and trading is a good entry point.m. unless we’re entertaining clients. So instead of 6:30 a. is responsible for North and South American sales and trading. early on I wanted a Ph. I had more interest in sales. Q: Did you get to use your training much in the real world? Oh. Q: Exciting from an economic standpoint of course. 33. Brazil. Q: Did you need to be bilingual? The math really helped more than language. It was very challenging and exciting. equity. Also.. whereas in M&A math skills are not immediately applicable at the entry level. and developing models.

There are always a lot of hours and hard work. The financing and accounting courses they offered were really helpful to draw upon later in the workplace. It’s not even necessarily the hours. even title insurance. DKB was involved in international deals and I found the domestic. Q: Any advice for others considering entering investment banking? Make sure it’s something you really want to do. I actually spent my internship at KPMG. 31. Investment Banker. Q: When did you move on to Ryan Beck? In 1999. Q: How well did your schooling prepare you for the challenge? I was very lucky to get to Wharton. performed research. His clients are middle market companies with revenues from $25 million up to several hundred million dollars. a couple of times a month. in Economics with concentrations in accounting and finance. is director with Ryan Beck & Co. but as the only analyst. and Ryan Beck offered more client interaction.Jeffrey Sherry. I started with a good foundation. Q: Including road shows? Yes. but the mental acuity required to really keep on top of things. There was a lot of client contact. I valued deals with prospective companies. It’s the capacity to do a lot in a short amount of time. Yes. president and now director. Q: Accounting? 80 president. magazines and journals to keep up. Q: How did you get the introduction to Ryan Beck? Through a friend of a friend who knew I was seeking a new opportunity. I chose a less formal route. This was all under the vice president and the associates of my group. and in that time I’ve gone from analyst to associate. to see existing clients or meet new clients. The experience guided me away from the accounting field.S. What’s your secret? Working really hard. Q: So you didn’t go into accounting after graduation? No. Also. maintaining client relationships and identifying and bringing in new business. I read a wide range of newspapers. My first job was with Dresdner Kleinwort Benson. which is a very important source of information. although the skills came in handy later. associate vice Careers in Financial Markets 2006-07 . as an analyst in the investment banking group. the exposure to different kinds of people and groups prepared me for relating to an assortment of colleagues on the job. Jeffrey Sherry. Q: Is travel part of the job? You’re on your way to the airport now… Yes. seminars and lectures on law and accounting. I’ve been here seven and a half years now. The emphasis is broader now. I learn a lot from attending presentations. there was a heavy focus on the Internet and Internet companies. Q: Could you tell us about how you got to be director at Ryan Beck? Well. so I had to take on a lot more functions. Q: Multitasking? Absolutely. DKB was more focused on mergers and acquisition business. I talk to a lot of people. We’re studying consumer retail.. Often it’s for raising capital or performing due diligence for transactions. prepared marketing materials. I entered as an analyst there as well. Ryan Beck & Co. Q: That’s pretty fast. I graduated from Wharton School at the University of Pennsylvania with a B. a full service investment banking firm with 43 offices in 14 states. reporting to the head of investment banking. He is responsible for the day-to-day management of deals. because it takes real commitment to become successful at it. I had to participate in road shows. Q: You haven’t gone the popular MBA route. Q: What kinds of changes in investment banking have you noticed? When I joined. in their tax department. middle-tier market more interesting. predominantly in the consumer and retail industry. Q: And how did that work out? Very well. And. real estate.

politics.com www.watersonline.com www.com www.investmentnews. annual reports and press releases. 10-Qs.nytimes.gloriamundi.securitizationnews.careerjournal.efinancialcareers.businessweek.onwallstreet.washingtonpost.com www.org wows.traderdaily.com www.defaultrisk.com www.com Sector News BondsOnline Compliance Week Corporate Financing Week The Deal Default Risk Finance Asia Fund Action GloriaMundi HedgeWorld Inside Market Data MARHedge On Wall Street Risk Magazine Securitization News Trader Daily Wall Street & Technology Waters www.cosdonline.cnn. which you can almost always find on their corporate Web sites.reuters. each market sector offers a variety of trade publications that focus on narrow areas of expertise.com www.marhedge.com www.wallstreetandtech.com www.fundaction.net www.com www.ml4t.ii.com www.fortune.org www.com www. breaking news driving commodities trading.insidemarketdata. Among other things.financeasia.com www. In addition to these.org www.thedeal.com www.com www. General and Business News Bloomberg BusinessWeek CNN Financial News The Financial Times Forbes Fortune The New York Times Reuters USNews and World Report The Wall Street Journal Washington Post www.bondsonline. you have to keep up.risk.com www. That’s no small task in today’s media-crazed world.com www.com dealbook.fiercefinance.com Careers in Financial Markets 2006-07 . bond or futures quotes.com www.financialnews-us.wsj. especially if you want to focus your career in specialized areas like hedge funds or risk management.com www. To succeed on Wall Street.efinancialcareers.com Resources News you should use Information moves the markets – whether it’s stock.corporatefinancingweek. economics and the world in general.nytimes.barrons.seo-usa.com www.com www.com www.org www.usnews.bloomberg.blogs. from The Wall Street Journal Career Opportunities for Students with Disabilities Management Leadership for Tomorrow National Black MBA Association National Society of Hispanic MBAs Sponsors for Educational Opportunity Women on Wall Street General Financial and Investing News Barron’s FierceFinance Institutional Investor Investor’s Business Daily InvestmentNews The New York Times’ Dealbook www.com www.com www.com www.ft.asianfinancialsociety.com www. that means staying up-to-date on developments in business.forbes.ibd.compliancenews.org www.db. a collection of information resources you can use to keep abreast of what’s going on in business and general news around the world.alpfa.com www. This list is meant as a starting point.nbmbaa.com www.nshmba.com CareerJournal.com www.www.org www.org www.com www.hedgeworld. Don’t forget to read the information presented by companies themselves in their 10-Ks.com www.com 81 Career Information and Career Development eFinancialCareers Asian Financial Society Association of Latino Professionals in Finance and Accounting www. the release of a company’s annual report or turnover among its executives or staff.com www.

Observes Elizabeth Wamai.” Careers in Financial Markets 2006-07 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. When visiting a firm. the industry is searching both broad and deep. one African-American and seven women.” says Lance LaVergne. and Hispanics are making rapid gains. Taking advantage of professional and minority networks to talk with people in the company is another way to learn whether its culture truly embraces diversity. the financial industry has put great effort into hiring and retaining minorities at all levels. suggests researching the company’s retention rate among minorities and women. Several firms offer fellowships and internships to promising candidates who want to attend business school but need help shouldering the financial burden. However. Wamai suggests asking questions and listening for consistent answers. Banks Chase The Same Talent Opportunities abound for qualified candidates In recent years. They have critical mass. and leveraging their own employee networks. 82 Finding Talent To find qualified candidates.” Today. “There are more women in the organization than any other minority group. You want to find out “not just do they have diversity hires. This is what many people refer to as “incremental growth. president and chief executive officer of Diversified Search Services of Chicago. you’d hear cries of ‘affirmative action’ and ‘they’re just hiring minorities. they’re advertising more in minority media outlets. sending more staffers to job fairs sponsored by minority organizations. “You really have to get in there to see how it’s all working in practice. Executives are quick to throw water on the notion that diversity equals entitlement or lower standards. minority candidates are presented with an exceptional opportunity: Because fewer women. “It’s important to remember that diversity and meritocracy are one and the same. she suggests. Seventy-nine of them. a director at Merrill Lynch and the firm’s diversity manager for Global Markets and Investment Banking. do your research. in fact.” he observes. And while there’s no question many firms have made real progress. Since the previous report in 2003. some observers say it may be also a sign the industry is hiring serious people. LaVergne says. she says. diversity recruiting efforts. but do they retain minorities as well?” she says. vice president of Human Capital Management at Goldman Sachs and manager of the firm’s U. Fifty-six of the traders would be men – 46 of them white. Development and Demographics. he points out blacks are developing that same kind of momentum. Interviewing with three black professionals who appear to be the only ones in the building is probably not a good sign. mainly because women are both a larger demographic and more evolved politically and organizationally than blacks and Hispanics.” However. financial companies are engaged in a fierce war for talent. the proprietors of this trading floor have hired two Asians. such as accounting and law. even if they’re not in your core area of interest. That’s assuming the staff’s diversity matches the workforce described in the .’ These numbers could mean real progress.” says Merrill’s Wamai. the focus of many diversity efforts is on gender. Companies are reaching out to students as early as junior high with internships and communications programs. Few doubt the industry’s direction will change. unqualified candidates won’t be successful. Getting Beneath the Surface How can candidates be sure that what they’re experiencing during recruitment reflects the true company culture? “First. entrenched corporate cultures and economic realities have sometimes halted that evolution. pushing recruiters to find more candidates. In addition to networking. Tanya Hinton. be aware of the people you’re meeting with and how they compare to the rest of the office. SIA’s 2005 Report on Diversity Strategy. “if it was 10 percent. six African-Americans and five Hispanics. While on first read a three-percentage-point rise in a diverse workforce—from 18 percent total in 2003 to 21 percent in 2005—may not seem like much. blacks and Hispanics are applying to business schools.S. Of the 44 women. and seeking candidates from academic areas outside of business school. but at the same time few believe complete solutions will be achieved easily or quickly. Scattered through the ranks would be nine Asians. Meanwhile.For Diversity. They’re also working with not-for-profit groups like Management Leadership for Tomorrow and Sponsors for Educational Opportunity to reach young prospects. so there’s real pressure to make sure each hire is a good hire. says one. and meeting as many people within the company as you can. 11 would be of color.

current students. We encourage you to attend an information session to learn more about the value of an MBA and the MBA application process. For dates. organizations.tenschools. You will have the opportunity to speak to admissions representatives.diversity = enriched experience Our mission is to impact and influence the diversity of MBA campuses. We also strive to increase the awareness of and participation in graduate management education by underrepresented populations. times.com Chicago Graduate School of Business | Columbia Business School | Darden School of Business at University of Virginia | Harvard Business School Kellogg School of Management | MIT Sloan School of Management | Stanford Graduate School of Business | Tuck School of Business at Dartmouth | UCLA Anderson School of Management | The Wharton School of University of Pennsylvania . and locations please visit our website at www. Ten School Diversity Alliance www.tenschools. and the global community.com. and alumni from different MBA programs around the country.

Amsterdam.S. Young employees are often required to take examinations to comply with local regulatory demands. But bear in mind: If you like seeing new places and experiencing new things. and it takes a degree of flexibility and patience to learn your way around – geographically and culturally. organizations.Going Global: International Career Options for Graduates Expanding your horizons – and your options Once upon a time. chief executive of Whitney Group. HSBC. which shares a common language with the U. “foreign” banks are perceived as having a more distinct and welcoming culture than many U. Among the firms doing the hiring on Wall Street are some ambitious international players like Deutsche Bank. It’s one of the faux-pas of the past few decades. The attraction for graduates is obvious: the chance to embrace a career that will give them the opportunity to travel and see the world even while they gain valuable work experience. Taking a position at any other kind of bank was seen as second-best.. Attitudes toward work.S. but unless you’re posted to an English-speaking country you’ll still have to bone up on the languages of your host land. not gravy.” he says. and chances were dicey you could make the jump back into a U. BNP Paribas.” Recruiters who bemoan the loss of Wall Street cultures tend to sing a similar tune: Mergers change corporate culture. Banking used to be a very clubby industry. financial firms. Imagine the glamour: You contemplate a day’s work while munching a croissant and sipping coffee in one of Paris’s boulevard cafés. and sometimes a bank’s business edge. Even the UK. Japanese or Russian. 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. For starters you eat biscuits with tea. Yardley is head of U.S. such as HSBC and UBS. can be incomprehensible at times. But there may be a price of admission to such locales. for the worse. an executive search firm for the financial industry. have jam instead of jelly. Culture Shock? For some people who’ve never encountered life beyond America’s borders. “Many of the great American banking cultures have been pretty much destroyed. but it could be a significant issue for further-flung postings that could require Mandarin. London or Shanghai while they learn the ropes. strange customs and those linguistic difficulties can perplex the new kid on the block. that’s changing. International banking may be largely conducted in English. bank. ABN Amro and Barclays Capital. colours and neighbours instead of flavors. campus recruiting and talent management at the firm. Gary Goldstein. “Most of the people who come to work for us are attracted by our ability to move them internationally. new cultures can pose a challenge.S. wear waistcoats instead of vests. says. wise American graduates focused their efforts on landing jobs in U. Not being able to communicate with the local population can lead to an isolated “ex-pat” existence.S. and global players. Then there’s the issue of language. an international career that embraces travel to new places and a working environment with colleagues from a multiplicity of cultures is an appealing challenge. or you step out for a quick dim sum from a hawker stall in China. where people identified with the firm they work for. Not any more. Today. International Options 84 “Genuinely international career opportunities” is the refrain of Keith Yardley at HSBC Securities in Manhattan.S. Rightly or wrongly. It might not be a problem at European banks for someone who’s studied French or German at school. have managed to maintain their corporate identities in spite of explosive growth. and face spellings like flavours. European banks seem to have largely escaped this stigma. and some require a great deal of study – which will undoubtedly cut down your café time. Careers in Financial Markets 2006-07 . investment banks? Pros and Cons of Globe-trotting Graduates with wanderlust can find themselves in places like Paris. which may defeat the purpose of visiting foreign countries in the first place. colors and neighbors.

Their formal. too. . In these leaner shops. imparting a good overview of the business.efinancialcareers. Are status and prestige at the top of your list? Is it all about the bonus? Do you thrive under rapid-fire challenges or do you prefer to order them more methodically. A. As a professional at a large institution.com Better to Go Bulge or Boutique at Career Start? Our financial markets expert panel tackles this classic dilemma Q. And. At a boutique. your best ideas may be discouraged and you may have to give up credit or edit your thinking just when you feel most passionate about something.and short-range considerations. I have one offer from a bulge bracket bank and a couple from boutiques. I’m in my second year of business school. Is the bank on the right trajectory or do things seem a bit shaky? Just as important. Peter Gonye Peter Gonye brings 14 years of experience in investment banking and 12 years of executive search expertise to Spencer Stuart’s Private Equity and Investment Banking specialty practice groups. this is where to find it. The big banks typically pay more. Boutiques take fewer recruits from business schools. Engage in an honest conversation with yourself about your priorities and style. Make sure you do find it. however. It’s important to be aware that there are significant differences shop to shop. or do you favor a group-think approach? The broad stereotypes of the bulge vs. 85 Rod Williams Rod Williams is the New York City job market consultant for Lee Hecht Harrison. If you would like to pose a question of your own. because it will make all the difference in taking you—and your career—to the next level. boutique choice are easy to draw. Some believe that nothing beats the rigor and discipline of big-firm associate programs. you may dig your teeth into substantive work early on. What you probably won’t find in the bulge club is the opportunity to move up quickly and take a leading role. Kenneth Taber Ken Taber is an employment law partner with Pillsbury Winthrop LLP. though. one at a time? Are you a passionate proponent of your best ideas. She is the author of The Authentic Career. systematic approach to training new MBAs typically includes rotation through different groups.com The Expert Panel Maggie Craddock Maggie Craddock is an executive coach to Wall Street professionals through Workplace Relationships. you can expect to function somewhat less like a peon. Which would be better for my career? I’m interested in both the long. what is the group energy of the institution? What is the emotional tone. The interpersonal challenges are greater – but so is the chance for advancement. There’s no use separating what’s good for your career from what’s good for you as a person.www. the nuances of personal integrity (or lack thereof) that characterize the human element of any business environment? You can find positive group energy in the right department of a large firm or at the senior management level of a small Careers in Financial Markets 2006-07 firm. please send an email to expertadmin@efinancialcareers. if you’re looking for status and prestige early in your career. a career and leadership consulting firm. They often run valuable mentoring programs and a variety of activities to help groom you as an up-and-coming professional. You may find yourself shoulder-to-shoulder with some of the best and most experienced in their field.

Employer Essentials
A snapshot of institutions operating within the financial markets
Company ABN Amro Banc of America Securities Barclays Capital Barclays Global Investors Bear Stearns Bloomberg, Inc. BNP Paribas CIBC World Markets Citigroup Credit Suisse First Boston
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Address 55 East 52nd Street, New York, NY 10022 9 West 57th Street, New York, NY 10019 200 Park Avenue, New York, NY 10166 45 Fremont, San Francisco CA 94105 383 Madison Ave. New York, NY 10179 731 Lexington Avenue, New York, NY 10022 787 7th Avenue, New York, NY 10019 425 Lexington Avenue, New York, NY 10017 383 Greenwich Street, New York, NY 10013 11 Madison Avenue, New York, NY 10010 60 Wall Street, New York, NY 10019 100 Fountain Pkwy., St. Petersburg, FL 33716 85 Broad Street, New York, NY 10004 452 5th Avenue, New York, NY 10018 270 Park Avenue, New York, NY 10017 127 Public Square, Cleveland, OH 44114 745 7th Avenue, New York, NY 10019 500 West Madison, Suite 3900, Chicago, IL 60661 125 West 55th Street, New York, NY 10019 250 Vesey Street, New York, NY 10080 1585 Broadway, New York, NY 10036 800 Nicollet Mall, Minneapolis, MN 55402 One Liberty Plaza, New York, NY 10006 1221 Avenue of the Americas, New York, NY 10020 677 Washington Blvd., Stamford, CT 06901

Telephone 212 409 1000 800 432 1000 212 412 4000 212 272 2000 212 617 2000 212-841-3000 212 856 4000 212 816 6000 212 325 2000 212 250 2500 212 902 1000 212 525 3735 800 KEY2YOU 212 526 7000 312 580 8339 212 231 1000 212 761 4000 800 333 6000 212 428 6600 203 719 0629

Graduate Website www.graduate.abnamro.com www.bofa.com/careers www.barcap.com/campusrecruitment/ www.bgigraduatecareers.com www.bearstearns.com/careers careers.bloomberg.com www.bnpparibas.com www.cibcwm.com/wm/careers/ campus-recruitment.html www.oncampus.citigroup.com www.csfb.com/standout/ careers.db.com www.franklintempletoncareers.com www.gs.com/careers www.hsbcusa.com/careers www.jpmorgan.com/careers www.key.com/jobs www.lehman.com/careers www.lincolninternational.com www.macquarie.com www.ml.com/careers www.morganstanley.com/careers/recruiting www.piperjaffray.com/careers www.rbccm.com/0,,cid-16882_,00.html https://careers.us.socgen.com www.ubs.com/graduates

Deutsche Bank Franklin Templeton Investments Goldman Sachs International HSBC JPMorgan KeyBanc Capital Markets Lehman Brothers Lincoln International Macquarie Group Merrill Lynch Morgan Stanley Piper Jaffray RBC Capital Markets Corp. Société Générale UBS

Careers in Financial Markets 2006-07

www.efinancialcareers.com

Company Address: 45 Fremont, San Francisco, CA 94105 Graduate Website: www.bgigraduatecareers.com

Company Address: 731 Lexington Avenue New York, NY 10022 Telephone: 212-617-2000 Graduate Website: careers.bloomberg.com

Company Address: 787 7th Avenue, New York, NY 10019 Telephone: 212-841-3000 Graduate Website: www.bnpparibas.com Company Snapshot: BNP Paribas is a global leader in banking and financial services, and ranks among the world’s top 15 banks by market capitalization and total assets. The North American operation is a critical component to this strategy with over 14,000 employees across the continent. BNP Paribas’ activities in the U.S. include Corporate and Investment Banking, Retail Banking and Asset Management and Services. Financial Report: Please see www.bnpparibas.com for annual report. Headcount: 14,000 in North America Graduates Hired Per Annum: This is a new program for the U.S. Our goal is to hire approximately 60 Analysts & Associates this year. Approximate Graduate Hires 2006: 50 hired into Analyst and Associate Program in the U.S. Graduates are recruited into: Various positions across the entire Bank i.e. Fixed Income, Equities & Derivatives, Corporate Finance, Leveraged Finance, Risk Management, Trading Operations, etc. Training Offered: 5 week intensive training including: 30 to 50 hours of on-line product specific precourse work, 2 weeks of intensive product training, post-course study, orientation and company overview, business/technical related coursework based on level and position, professional development courses (business writing, negotiation, selling and presentation skills), teambuilding and multicultural awareness. Internship Info: 12 week formal internship development program Skills Required: Strong analytical and quantitative skills, excellent leadership and communication skills, team oriented individuals with interest and desire in financial markets Application Deadline: For consideration, please contact your individual campus career service office for application deadlines or submit your cover letter and resume indicating area of interest to campusrecruiting@americas.bnpparibas.com.
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Company Snapshot: Barclays Global Investors is the world’s number one index fund manager and one of the world’s top ten active fund managers. From inventing the world’s first index fund in 1971 and the first quantitative active strategy in 1978, we’ve pioneered change and led investment innovation. BGI has more than $1.6 trillion assets under management and over 2,800 clients worldwide. We offer funds focusing on active, index and asset allocation strategies, as well as being the global leader in exchange traded funds (ETFs) via iShares, and one of the world’s largest securities lenders. Financial Report: Visit our website for more information. Headcount: Over 2,800 employees in 11 offices worldwide. Graduates Hired Per Annum: c60 full time (global); c50 internships (global) Approximate Graduate Hires 2006: 45 full time (global), 35 internships (global) Graduates Are Recruited Into: Research, Portfolio Management, Trading, Business/Product Development, Sales/Marketing, Strategy, Securities Lending, Operations, IT development: Locations - San Francisco, London, Hong Kong, Singapore & Tokyo. Training Offered: All employees, including interns, have access to seminars, e-learning and classes to suit requirements. Those joining the full-time program, start with a three week induction at our Head Office in San Francisco, combining technical, business and interpersonal skills development. Over the year you will develop in-depth specialist expertise relevant to your area, through formal and informal education and will be supported through professional qualifications. Internship Info: Our 10 - 12 week summer internship positions are open to penultimate year students. Skills Required: An excellent academic background, strong interpersonal and team-working skills and high quality communication skills. Additional requirements vary depending on the role applied for. Please see the website for details. Application Deadline: Full time program: October, 8th 2006. Internship program: January, 7th 2007

Company Snapshot: At Bloomberg, each of our 8,000 employees embodies the excellence and intellectual 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 advantage in their careers, with top-flight education and windows for advancement. All this means that we create an environment in which you have unparalleled 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 employees 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 development opportunities. Our internal repository, Bloomberg 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.

Careers in Financial Markets 2006-07

Company Address: 388 Greenwich Street, New York, NY 10013 Graduate/Undergraduate Website: www.citigroupcib.com/careers www.oncampus.citigroup.com Company Snapshot: Citigroup Corporate and Investment Banking achieves the extraordinary for our clients around the world. To provide our clients with best-in-class products, services and execution, our businesses are organized into three groups: Global Banking, Global Capital Markets and Global Transaction Services. This structure enables us to leverage our product breadth and geographic scope, and effectively align our resources with our clients’ needs. Working together, our businesses respond to client needs and provide the right solutions based on a complete global understanding and appreciation of our clients’ circumstances. And our clients gain the advantage of working with a truly unified corporate and investment bank. Financial Report: You will find links to our Annual Report and Investor Relations by visiting www.citigroupcib.com/media/ Headcount: There are approximately 55,000 employees in the Corporate and Investment Bank globally. Approximate Graduate/Undergrad Hires 2006: 134 Associates / 850 Analysts globally
88

Company Address: 270 Park Avenue, New York, NY 10017 Graduate Website: www.jpmorgan.com/careers

Company Address: 127 Public Square, Cleveland, OH 44114 Graduate Website: www.key.com/jobs

Company Snapshot: JPMorgan’s global client franchise, built over 200 years, is the foundation of our business and distinguishes us from our competitors. We serve over 22,000 clients in over 100 countries, making ours one of the broadest client franchises in the industry. And we have the ability to deliver the breadth of the firm’s capabilities, tailored to the needs of our diversified clients in local markets. Because we put our clients’ interests first as we provide them with the best advice and solutions for their long-term needs, we have earned an award-winning reputation in the industry as an influential banking and business innovator. Our analysts and associates play a key role in sustaining this reputation and growing the business. As a firm that relies on the quality of our talent, we are committed to investing in each employee’s professional and skill development. Headcount: Approximately 20,000 employees globally in the Investment Bank Approximate Graduate Hires 2006: 300 full-time, 300 summer Graduates Are Recruited Into: We offer full-time and summer opportunities in Corporate Finance, Sales & Trading and Research for advanced and undergraduate degree candidates. PhD candidates can apply to summer and full-time opportunities in Quantitative Research and Fixed Income Strategy.

Company Snapshot: Cleveland-based KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $92 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. Financial Report: Please visit Key’s website for up-to-date details. www.key.com Headcount: Key employs 19,300+ employees across the US with businesses in 45 different states. Graduates Hires Per Annum: Approx. 10-15 Undergraduate Hires Per Annum: Approx. 50-75. Approximate Graduate/Undergrad Hires 2006: Approx. 60-90 Graduates Recruited Into: Associate Program in Investment Banking is highly focused on building advanced skills in finance.

Graduates Recruited Into: We recruit for approx. 13 Analyst programs and 8 Associate programs globally, offering a wide range of opportunity, including: Global Banking, Global Capital Markets, Global Transaction Services, Global Corporate Services Training Offered: Most of our programs offer a comprehensive training program including orientation and classroom training. Internship Info: Summer Internships are available for most of our programs.These programs are designed to give you a 10-12 week experience preparing you for full time opportunities. To find out more please visit our website: www.oncampus.citigroup.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 quantitative skills. We encourage candidates to apply to our programs from a diverse range of academic backgrounds, it is not necessary to major in a traditional finance program. Application Deadline: Apply online at www.oncampus.citigroup.com. The general time to apply for full time positions is in 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 schools.

Training Offered: This program requires new Associates to receive uninterrupted training for 8 weeks. The program includes classroom lecture, 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 Training Offered: Closing the gap between theory gain an understanding of business segments. Outside and practice, our training programs are widely acvendors such as, Training the Street, will teach cepted as the best in the global finance sector, taught on financial modeling, and valuation techniques. by top industry professionals and our own most Additional vendors include presentation skills and experienced and inspiring people. We leverage a full business writing. range of teaching methods (lectures, case studies, Additional Topics Include: Understand industry hands-on exercises, simulations). Advanced profesand corporate compliance; Identify the components of sional certification is supported, and we encourage and develop an effective pitchbook; Analyze financial deeper skill set development through continual train- statements; Perform and analyze financial modeling ing opportunities that keep employees on the cutting and valuation techniques. Access database tools and edge of investment banking. strategic information (research and resources). Skills Required: We want to meet people who are intellectually curious, results-driven, team-oriented, innovative, client focused; with well developed analytical, communication and leadership skills; and an ability to work in a fast-paced team environment. Demonstrated academic excellence and solid work experiences are crucial. Internship Info: 5-10 internships are offered for the Associate Program per year (MBA level) Skills Required: The ideal candidate is a highly motivated and talented individual with the desire to embark on a career in Investment Banking. The candidate will be quantitatively and financially-oriented, possess the ability to succinctly express ideas, have a positive, can-do attitude and will thrive in a fast-paced and intensive team environment. Graduate degree in Finance, Economics or Accounting. Application Deadline: 11/1/2006

Careers in Financial Markets 2006-07

Assist in investigations of aberrational trading activity by upstairs traders.5 or higher with majors in Financial Engineering. Utilities. NYSE Group is a leading provider of securities listing. and Corporate & Investment Banking (CIB). finance or business background a plus.000 people worldwide in three businesses: Retail Banking & Financial Services.com/careers. Application deadline is April 1st. professionalism and team spirit. but overall. please follow the instructions of your Career Services Office. Graduates Are Recruited Into: Merrill Lynch hires analysts into every business including: Global Markets & Investment Banking. who must also possess Société Générale’s values of innovation. There are many opportunities to work closely with senior management and to network with other interns. Société Générale seeks undergraduate students with a GPA of 3. Prepare closing memoranda with recommendations for regulatory action when appropriate. Headcount: Approximately 3. Skills Required: Required skills vary by business. institutional and sector-based clients in industries where the firm has demonstrated expertise.200 associates (at the graduate level).us.com/careers Company Address: 11 Wall Street. (NYSE: NYX) operates two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the Archipelago Exchange. Internship Info: Merrill Lynch offers summer internship opportunities in all campus recruiting programs. They will participate in an on the job training program designed to provide the additional knowledge necessary to perform the responsibilities of an entry level Examiner effectively and to develop a basic understanding of the fundamentals underlying the securities industry. after they are recruited but prior to the start of the training program. problem-solving and decision-making skills. Analysts in Sales/Trading/Financial Engineering roles then transition to on-the job-training sessions on the trading floor. Headcount: Merrill Lynch has approximately 50. Merrill Lynch Investment Managers Research and our Corporate & Enterprise programs (which include Technology. Inc.700 employees—1. Aerospace. Internship Info: Each summer a limited number of college students are hired to work for the NYSE in non-trading-floor departments.ml. financial modeling. document control. computer literacy and ability to travel. Qualifications include the following: Bachelors Degree with a minimum grade point average of 3. New York. Company Snapshot: One of the largest financial services groups in the euro-zone.000 Approximate Graduate Hires 2006: 16 Graduates Recruited Into: Member Firm Regulation Examiner Trainee Program: Candidates selected will examine financial. including: personal financial planning.com Company Address: 250 Vesey Street. The firm values individuals who can interact with all organizational levels in a collegial and constructive manner. trading of foreign exchange.com Company Address: 1221 Avenue of the Americas. should we be interviewing on your campus.ml. workforce of over 2. New York. Media & Telecom. Qualifications include the following: Bachelor’s Degree in Accounting or Finance with a minimum of 9 credits in accounting and a minimum grade point average of 3. Company Snapshot: NYSE Group. valuation. summarizing documents and trading records. Mathematics. In addition. Each business lists what they are particularly interested in on the website at www. NY 10080 Graduate Website: www.nyse. Training Offered: Each business offers on the job training and some form of classroom training. integrity and creativity distinguish successful candidates.efinancialcareers. exceptional interpersonal skills. operational and floor activities of members and member firms to ensure compliance with NYSE and SEC rules and regulations. research. securities underwriting. including Financial Institutions. Application Deadline: Interested students should submit resumes to us-careers@sgcib. This focused industry approach is integrated with a diversified product mix to service some of the world’s largest corporations and high growth clients.socgen. Oil & Gas. Securities industry experience. Merrill Lynch is interested in candidates with exceptional quantitative abilities. commodities and derivatives. digesting testimony.0. strong analytical and computer skills.com Company Snapshot: Merrill Lynch is a leading global financial management and advisory company with a presence in 36 countries across six continents. Global Investment Management and Services. Global Private Client. beginning at the end of May and ending in the first week of August. insurance. and between 150 . Marketing. Finance or general engineering. Market Surveillance Analyst Trainee: Analyze computer generated surveillance alerts and complaints concerning trading in listed securities. HR and Operations) and associates in Global Markets & Investment Banking. Initiative. communication skills. and the Pacific Exchange). Graduates Hired Per Annum: Globally. The 10-week program includes business specific learning opportunities. With a U. New York.com. The work is challenging and the feedback interns receive is honest and constructive. the curriculum continues with instruction in advanced accounting. team delivers a robust range of services to targeted multinational. Training Offered: The Analyst Training Program begins in June with a two-week introduction to the firm and its capabilities.500 of which work in the CIB division—the country represents one of Société Générale’s biggest overseas operations. and firm-wide events such as a Global Senior Speaker Series. we recruit approximately 550 . 89 Careers in Financial Markets 2006-07 . Application Deadline: Interested students must apply online at ml.www. along with creativity and initiative. or ArcaEx®. NY 10020 Graduate Website: https://careers.. NY 10005 Graduate Website: www. The program runs for 10 weeks. Analysts are placed in a product or corporate finance group. investment banking and advisory services. Prepare market reconstruction of transactions and analyze market data. depending on their interests and the firm’s needs. and superior analytical.600 analysts (at the undergraduate level). Gaming & Lodging and Sports. banking and lending. trading and market data products and services. Research and Risk Management. Global Private Client. computer and communication skills are essential. Strong academic performance. trading and brokering. program traders. Approximate Graduate/Undergrad Hires 2006: 20 analysts for the New York office Graduates Recruited Into: Targeting top North American schools. floor brokers and specialists. strong written and verbal communication skills. For Analysts in Corporate Finance and Origination roles.000 employees globally.S.S.0. Accounting & Finance. including file organization. It serves the needs of both individual and institutional clients with a diverse range of financial services. Approximate Graduate Hires 2006: Same as above.com/careers as early as possible in the Fall semester. and encompass elevated negotiation. The U. teamwork skills. corporate finance and marketing. Société Générale employs more than 103.

Until then. Front Office The revenue-generating areas of the bank.Glossary Banking terminology the top banks will expect you to know Derivatives A derivative is a financial device that is based and priced on another financial product (e. companies. $200. bonds are also known as “fixed income” products. marketing and pricing of public offerings and private placements of equity and equity-related securities.. Block Trade A trade that involves a large quantity of stock (e. bond or foreign currency). Most of the work is largely IT-related or administrative.g. Fund managers are buy side firms. More recently. Morgan Stanley and Merrill Lynch traditionally possess bulge bracket status. To search the full glossary online. Privately owned companies that launch on the stock exchange “float” an IPO. Clearing and Settlements The activities that take place behind the scenes after a financial product has been traded. or an exchange rate). an interest rate. the Dow Jones index of the 30 largest U.com/campus Back Office Refers to all the behind-the-scenes processes at an investment bank. Commodities Raw materials such as precious metals or grains whose contracts are bought and sold on commodities exchanges. and will only pay out if the value of these underlying variants reaches a certain level. In the first part (clearing). the products traded are delivered in return for payment. Buy Side A generic name for organizations that buy financial products (securities) in an attempt to make money out of their changing value. Front office bankers typically earn the most money. banks add up all the trades done with one company. When you buy or sell a derivative you don’t buy or sell an actual product. but a contract linked to that product. visit our Campus Connection Jargon Buster. Exotic derivatives are typically linked to several underlying assets or rates.g. The name comes from the notion that stockholders share equally in the ownership of the company (according to how many equities they own). Careers in Financial Markets 2006-07 . Exotic Products Complex derivatives. which are a lot simpler. Exotic products are cutting edge. 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. the term has been extended to gigantic rivals such as Citigroup. the price of an exotic derivative may depend on the average price of 20 different stocks. plus changes in the interest rate. which don’t directly bring in revenues.000 shares or more) or large dollar amount of bonds (e. traders and corporate financiers. JPMorgan. they pay the bondholder a small amount of money each year. The U. Futures A kind of derivative product entitling the buyer to purchase a specific amount of a financial product for a specific price at a set time in the future. structuring and executing investment grade debt and related product businesses. banks Goldman Sachs.g.S. companies sell bonds and promise to pay the money back to whoever buys them in X years’ time. a stock.g. IPO Initial Public Offering. the owner can sell the product on for a profit. In the second part (settlements). Front office employees include salespeople. structuring. Bulge Bracket Bank 90 A nebulous term referring to the biggest and best investment banks.efinancialcareers. as a way to raise capital. Debt Capital Markets (DCM) Responsible for soliciting.. Because the amount of money paid annually is fixed at the start. as opposed to vanilla products. if that price turns out to be below the actual price of the product. as are hedge funds. Equity Capital Markets (ECM) Undertakes the origination. Deutsche Bank and UBS. including new issues of both public and private debt. For example. or on changes in a financial index or rate (e. for example. When that point in time arrives.S. and look at any problems that arise. bonds are a kind of debt. 10. Equities Another word for company stocks or shares. Bonds Unlike equities. People in the front office interact with clients to bring in business and create profits. www.000 or more). meaning the first time a company sells its shares on the open market. For example. Instead of getting a bank loan.

efinancialcareers. Vanilla Products Another word for a simple derivative. Careers in Financial Markets 2006-07 . This has created plenty of work for accountants (who oversee the report writing). no more than three members of the commission may be of the same political party. as well as the sales pitch the banking team will make to the target company. Secondary Markets The markets in which existing financial products are exchanged between investors.com Middle Office As its name suggests. It is calculated by dividing the current price of a stock with that company’s earnings per share. People who work in the middle office are not strictly revenue generators. typically risk managers and accountants. People who work here are. for example.www. therefore. Citigroup and JPMorgan Chase are examples. Sell Side Refers to organizations that sell financial products to clients. Investment banks are sell side organizations. including fund managers (buy side). and plenty of bureaucracy for banks and other companies that have to produce a paper trail proving internal controls exist. the middle office is positioned between the front and back office of a bank. Under Sarbanes-Oxley. Pitchbook The research books that junior bankers (analysts) typically compile to help senior M&A bankers win business. To ensure its independence. sell it expensively. It followed a series of corporate scandals and aimed to protect investors from companies that falsify their accounts. One of the most significant parts of the Act is Section 404. It was created in 1934 and consists of five commissioners appointed by the U. and then buy it back cheaply when prices have fallen. Price/Earnings Ratio The P/E ratio is a popular statistic used to analyze whether the price of a stock is reasonable. Securities and Exchange Commission (SEC) The federal agency that enforces securities laws and sets standards for disclosure about publicly traded securities. 91 Primary Market The financial market where investors buy brand new securities which haven’t been traded anywhere else previously. for example. nor are they strictly administrative staff. which says companies must file reports showing they have control over their internal processes. including mutual funds. Underwriting The process by which banks agree to buy any leftover shares in an IPO or other share issue. for example. or subsequent issues of new shares by companies already floating on the stock exchange. Shares released during an IPO are sold on the primary market. These include shares. “origination” is the word bankers use to describe the process of winning business in the first place. Structuring The process of assembling complex financial products. They involve a lot of hard work (and sleepless nights) and include everything from information on potential takeover targets to research on the particular market in which the target firm operates. as are newly released bonds. Origination bankers are senior bankers with strong client relationships.S. fund managers and other professional investors. Banks charge an underwriting fee to cover this risk. Short Selling The practice of selling stock that you don’t own.” (doing a deal). and derivatives. This can be advantageous when you borrow stock. Origination As opposed to “execution. The middle office is concerned with risk management and the calculation of profit and loss. The New York Stock Exchange and Nasdaq are secondary markets. President and confirmed by the Senate to staggered five-year terms. bonds. Universal Bank A bank that deals with companies. Securities All financial products that can be bought and sold. Sarbanes-Oxley The Sarbanes-Oxley Act came into force in 2002. The most common are swaps (exchanging one financial product for another) and options (which gives purchasers an “option” to buy a stock or bond sometime in the future at a pre-ordained price). corporate executives who deliberately misstate accounts face longer prison sentences. and that also deals with members of the public who have bank accounts with it (known as “retail” investors).

the research analyst conflict-of-interest settlement.. NYSE Regulation. An effective compliance system is critical to building investor confidence because it protects the firm from disciplinary actions and reputational harm. it is important to understand what the securities industry has gone through in the past few years. To understand the role of today’s compliance professional. was business-as-usual in order to anticipate and prevent future scandals. the securities industry was also changing. in time. risk management or investment banking functions. Securities and Exchange Commission and New York Stock Exchange rules. if that interests you. The industry needed to increase its commitment to ensure the protection of investors. Through compliance. Many firms reorganized their compliance efforts. The tone at the top has changed for legal and compliance officers and there’s been a dramatic expansion of responsibility. nies listed on the NYSE and NYSE Arca meet our financial and corporate-governance listing standards. NYSE Arca. don’t overlook the real opportunities that await you in the compliance side of the house. Inc. and other companies. I landed my current job as chief executive officer of NYSE Regulation. in some cases. After a brief stint at Citigroup. You can enjoy substantial access throughout a company. and able to put technological systems to work to build a strong control system that can detect potential violative activity. While easy to say. I have found great satisfaction being part of an effort to ensure the health of the capital formation process and strengthen a culture of compliance in the securities industry – both of which are critical to a strong and vibrant economy. The biggest realization was that regulatory settlements and private lawsuits could dramatically impact shareholder value. the not-for-profit subsidiary of the NYSE Group. specialists trading ahead of customers. and meting out tougher penalties to deter violative behavior and create a culture of compliance. I eventually moved on to NASD and the Nasdaq Stock Market. over the last decade it also suffered from wide-ranging regulatory lapses – the collapse of Enron. it is anything but simple. I went to work for a law firm. Careers in Financial Markets 2006-07 . top compliance officials often report directly the firm’s CEO. WorldCom. After earning my law degree. Inc. but also for investors everywhere. and then moved to the SEC. I have dedicated most of my career to being a regulator. These shortcomings caused the securities industry and regulators to step back and reexamine what. While the industry has demonstrated dynamism and creativity. to name just a few. What do I mean by compliance? Simply put. There I was able to marry the legal skills I had developed with the practical problems of that essential government agency.Compliance and the Shape of Things to Come NYSE Regulation’s CEO on Compliance and its opportunities By Rick Ketchum If you’re contemplating a career in the financial industry. NYSE Regulation also ensures that compa- 92 What does that mean for you? A career in compliance is an enormously rewarding opportunity to make a difference – not just for the organization that you work for. Business-side leaders in many firms see compliance personnel as having broad understanding of how the organization operates and an ability to formulate a control environment that can protect the business. and activity by our member firms. it is the responsibility of regulatory compliance officials to ensure that securities firms and their employees do not violate U. Rick Ketchum Chief Executive Officer. While regulators were beefing up their staff and resources. Today. Increased spending on compliance was a necessary response.S. If you’ve earned a degree in business. My organization oversees trading at the New York Stock Exchange. you can gain a deeper understanding of how a securities firm works and you can be part of the firm that has been expanding rapidly in recent years. So. accounting or law. Business leaders came to recognize that they had not committed enough resources to get the job of protecting investors done right. The experience you gain may also increase your mobility. It requires dedicated professionals who are thorough. Strong compliance with rules and the law has come to be recognized as good business. you may be able to move over to trading. or if you have experience as a trader or registered representative. familiar with the firm’s business. you have valuable knowledge and skills that can allow you to move over into the regulatory world.

Consumer Group M. I have the benefit of greater client exposure and potential for advancement.A. Industrial. B. Energy. please contact Dawn Zima at dawn_m_zima@keybank. KeyBanc Capital Markets has gained a reputation for delivering strategic ideas and innovative solutions. Technology and Mergers & Acquisitions. Healthcare. equity.The road to the top just got shorter. You will join an organization that is relationship-driven and focused. successful individuals. Achieve anything. Financial Services. KeyBanc Capital Markets offers you the career opportunity of a lifetime. Our integrated bank model and industry expertise provides creative capital-raising solutions. University of Michigan Fast track to success. To learn more about joining our team of motivated. I’ve found that the work is the same.B. “When I started at KeyBanc. Having worked at New York investment banks. advisory services. Consumer.” Dina Patel – Associate. derivative capabilities. Our markets include: Diversified Industries. As one of the most respected corporate and investment banking institutions in the United States. Here at KeyBanc.B. it was obvious I could gain as much responsibility as I desired. Kellogg School of Management.com.A. . debt sales and trading.

investment banking and asset management industries. The decisions you make before you even go on your first interview will shape your career path and determine your chances for success. as the #1 network for jobs and career management in the securities. 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. salary trends and industry news to keep you on top of the job market and ahead in your career.com serves the global financial community. from students to senior executives.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. career advice.com includes a student Campus Connection. and highlight key publications to read and organizations to join • Employer profiles which provide a snapshot of who’s hiring in what areas eFinancialCareers. 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 who’s firing • Glossary and resource guides to keep you on top of the latest lingo.95 . $19. eFinancialCareers. premier job opportunities.

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