The Financial Job Marketplace

2007-08
Careers in
Financial Markets
Your guide to finding a job in banking and finance
You thrive on achievement and you want to see just how far your talent will take you. We do too.
That’s why, at Deutsche Bank, you’ll be given the opportunity to realize your greatest ambitions.
As one of the world’s leading financial institutions, we have the platform to take your career higher.
You will be part of an innovative, modern corporate culture that celebrates achievement.
Expect the better career. Find out more at www.db.com/careers
Analyst Program Application Deadline: 1 November 2007
Analyst Internship Program Application Deadlines:
Asset Management, Global Banking, Global Markets and Private Wealth Management - 15 January 2008
Group Technology and Operations, Human Resources, Finance, Legal, Risk and Capital - 15 February 2008
A Passion to Perform.
Your vision: To reach for the top.
Our promise: Lifting you even higher.
Employers IT in Finance Accounting in the City Banking & Financial Markets
Contents
Banking and financial markets

A highly competitive industry ...................................................... 02
Rungs on the ladder .............................................................................. 06
The recruitment process ................................................................... 08
Graduate training schemes ........................................................... 12
Internships ....................................................................................................... 16
Mergers & acquisitions ....................................................................... 20
Capital markets ........................................................................................... 26
Sales, trading & research ................................................................ 32
Foreign exchange .................................................................................... 36
Corporate banking .................................................................................. 38
Fund management .................................................................................. 42
Hedge funds .................................................................................................. 46
Private equity ................................................................................................ 50
Investment consulting ......................................................................... 52
Global custody ............................................................................................ 53
Wealth management ............................................................................. 54
Operations ....................................................................................................... 58
Risk management .................................................................................... 60
Compliance ..................................................................................................... 62
Data providers & rating agencies ............................................ 64
Insurance ........................................................................................................... 68
Accounting in the City
Accounting City careers .................................................................... 70
Front office careers ................................................................................. 72
IT in finance
Information technology ...................................................................... 74
IT careers .......................................................................................................... 76
Employers
Employer profiles ..................................................................................... 78
Partner profiles ............................................................................................ 88
Like this book? You’ll love the
website. Our Student Centre is
the place to go for the inside
track on getting your first job
in finance. Check regularly for new
features and updates at
www.students.efinancialcareers.co.uk
What’s going on?
The latest news for graduates,
including last-minute vacancies.
Internships
The best way to get a job is by doing
an internship. Our Student Centre
tells you all you need to know about
applying for and making the most
of internships.
Graduate programmes
Your complete guide to applications
and choosing between employers,
plus what to expect from those
who’ve been there before you.
Learn about the industry
Financial sectors explained:
including information on even more
sectors than are contained in this
book. Career paths: profiles of
professionals in different roles and
at different stages of their careers,
from the lowly analyst up to
managing director and beyond.
Jargon buster: make sure you know
your assets from your equities.
Top tips
Individual nuggets of advice from
top banking professionals.
Off the record
What the banks won’t tell you about
getting that job – real information
from people already on the ground.
Numerical tests
Most banks will make you sit one
and they take a little getting used to,
so practise first with our online tests.
Careers in Financial Markets
is published by eFinancialCareers Ltd - www.efinancialcareers.com
Project Manager: Janice Chalmers; Editor: Sarah Butcher;
Production editor: Graham Judge; Writers: Sarah Butcher, Nic Paton;
Marketing: Alison Traboulsi; Sales: Iain Small, Alex Ross, Marc Speer,
Robert Wood, Asha Wadhwani
Art Director: Valerio Italiano Designer: Jane Roberts
Additional copies: cifm@efinancialcareers.com +44 (0)20 7309 7777
©2007 eFinancialCareers Ltd
No part of this publication may be reproduced without permission.
This guide is designed to be used together with the Student Centre on the
eFinancialCareers.com website. It will help you to navigate your way around
the competitive world of financial services, and provides an introduction to the
careers on offer and different sectors. As well as information on front-office
roles, we have sections on IT in finance and opportunities for accountants.
On the website you will find the latest news on graduate hiring and vacancies,
tips from senior industry figures, advice on internships and getting a job from
those who’ve been through the process, plus the chance to discuss what’s
going on with other hopefuls and those already in the industry.
By using this guide and the website, you will be among the best-informed
candidates around – half the battle in the highly competitive world of finance.
How to use this guide
Sarah Butcher
Editor
eFinancialCareers.com
Student
Centre
Good luck in your job search,
Sarah Butcher
Employers IT in Finance Accounting in the City Banking & Financial Markets
Want to work in an investment bank? You’ll need to
fight for it. At the start of 2007, graduate recruiters at
banks and fund managers expected vacancies to rise
nearly 18% to around 3,000, according to the Association
of Graduate Recruiters. But tales of multi-million pound
bonuses mean more people want a piece of the
investment banking action. Student research company
High Fliers puts the number of applicants per banking
job at (wait for it) 60:1.
Even if you manage to elbow 59 people aside to land
one of those coveted traineeships, there’s no guarantee
you’ll become a millionaire. Why? Investment banks only
pay mega-bonuses to the best people, typically after six
years or so, and then only when business is really good.
When business is bad, banks are equally quick to make
people redundant and bonuses are a lot lower.
A career in banking is a bit like the lifecycle of a butterfly:
you’ll have to put in time as a hardworking grub (analyst/
associate) before you can metamorphose into a beautiful
winged creature (managing director). There’s a constant
risk of being squished if unsuccessful – and throughout
your life you’re liable to be snuffed out by an adverse
economic climate.
Most of the biggest investment banks are either US-
owned (eg Goldman Sachs, Merrill Lynch and Morgan
Stanley) or continental European (eg Deutsche Bank,
Credit Suisse and UBS). They carry out many activities,
such as advising on mergers and takeovers; helping
companies raise money by issuing bonds and shares;
buying and selling bonds, shares and other securities;
and managing funds.
Pay for performance
Investment banks pride themselves on being
meritocracies. For example, Tracey Hahn, head of
leadership and talent management for Europe, the
Middle East and Africa at Merrill Lynch, says the
bank fosters “a meritocratic and fully inclusive work
environment,” and a culture that provides people
with “the opportunity to advance as high as their
commitment, ambition and talent will take them.”
In plain English, this means if you work hard and
have a talent for banking (i.e. make lots of money
for your employer) you will both be promoted and be
well paid. But don’t expect to be paid unless you perform.
“Even for managing directors, banks rarely pay base
salaries higher than £260k,” says Lee Thacker, partner
at headhunter Heidrick & Struggles. “The rest is
performance-related bonus.”
Hiring and firing
Following annual talent reviews, banks such as Goldman
Sachs regularly cull up to 10% of their worst-performing
staff and Thacker says the practice is becoming more
common. If banks get rid of 10% of staff as a matter of
course even in good years, they’re a lot more brutal when
business turns. According to the think tank
Centre for Economics and Business Research (CEBR),
some 35,000 jobs were chopped in the City of London
between mid-2000 and early 2003. The bloodbath
followed several years of vigorous hiring worldwide –
in 2001, the global headcount at Goldman Sachs was
25,000; by 2003 it was down to 19,500.
In 2007, however, banks were back on top. By the end
of the first quarter, Goldman Sachs employed nearly
27,000 people globally and by mid-2006 the CEBR said
employment in the City of London exceeded the previous
record at the height of the dotcom boom.
But after several good years and a credit crunch, are we
in danger of another downturn? Banking recruiters say it’s
just the nature of the beast. “There’s no doubt that we’re
near the peak, but the risk of losing your job when times
are bad is the natural corollary to making huge amounts
of money when times are good,” explains Logan Naidu,
a consultant at recruitment firm Cornell Partnership.
“Banking is cyclical. It’s very rare nowadays to go into
banking thinking you will never be unemployed – if you
want a risk-free job, become an accountant.”
Riding the wave
What can be done to minimise the risks of being
rudely turfed out if things turn nasty?
Philip Beddows, a partner and seasoned investment
banking career coach at mentoring firm IDDAS,
says the best thing is to go for a top-tier bank or
boutique that offers excellent training: “If you start
in division one, you can always move to division two
A highly competitive industry
Demanding workplace with outstanding rewards
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“If you want a risk-free job,
become an accountant”
Logan Naidu, Cornell Partnership
>
At a glance
Banking is a competitive industry
at the mercy of economic swings
Pay is by performance: less than
20% of senior pay is base salary
‘Hot’ sectors include mergers and
acquisitions (M&A) and risk
With your potential,
our future is in good hands.
It starts with you.
Your ideas make a difference. At UBS, we believe in creating opportunities for every one of our employees
to empower them to excel and realize their potential. We know that the best view could be through your
eyes. That is why we value diversity and want to create an environment that encourages different
perspectives. As a leading financial firm with offices in over 50 countries, UBS can offer the inspiration you
need from all corners of the globe. After all, when you’re inspired, we all succeed.
It starts with you: www.ubs.com/graduates
© UBS 2007. All rights reserved.
The Royal Bank of Scotland. Tenth largest bank in the world.
One of Europe’s leading corporate banks. 95 per cent of the
FTSE 100 and 80 per cent of the Fortune 100 are customers.
Now growing rapidly and aggressively worldwide.
“It’s my first year on the graduate programme and
I’m being trusted to handle a two billion dollar
trade. That’s the difference.”
Our numbers tell an incredible story of growth and global expansion. We’ve
become a leader in some of the most exciting areas of investment banking.
And the rapid progression of our people is vital to this success.
In RBS Global Banking & Markets you can go as far and as fast as your
abilities allow. No rigid hierarchies. No glass ceilings. Just extraordinary
opportunities to match your capabilities. Be part of it.
Find out more at www.rbs.com/gbmgraduates
Make it happen

The Royal Bank of Scotland plc. Registered Office: 36 St Andrew Square, Edinburgh EH2 2YB. Registered in Scotland No 90312
Global Banking & Markets
later – the other way round can be more challenging.”
If you don’t manage to get an offer from an investment
bank, an ACA (accounting qualification) can also
be a good safety net and allow you to move into banking
later on. Naidu tells of one candidate who couldn’t
get into banking in 2001, so spent three years training
for an ACA. In 2004 he moved into investment banking
and in 2007 got a job in private equity. “Careers in
financial services are all about riding the cycle,”
says Naidu. “If you can stay on the board throughout,
you’ll do well. And if you fall off, you’ll need to get
back on quickly.”
Hot sectors
Bearing in mind the roller-coaster nature of the
investment banking industry, it’s worth giving some
thought to where you want to work. Fixed income?
Equities? Corporate finance? Choose carefully. You
are not just selecting a job; you’re positioning yourself
in the financial services market, some areas of which
are likely to be more healthy than others. Look at the
individual sector articles for more detail, but for a quick
guide to hot sectors, read on.
Mergers and acquisitions
Mergers and
acquisitions is a
volatile sector in
which to work.
When things are
hot, they’re very hot.
But when M&A deals
stop happening,
these bankers are
often among the
first to be shown
the door. In 2007, however, M&A bankers were
sitting pretty. In the first quarter of the year, deals
announced in Europe rose 14% to $531bn, according
to information provider Thomson Financial. And
soaring M&A deals inspired banks to add staff –
an April 2007 poll of 250 M&A bankers by Financial
News found 69% of respondents in the UK were
looking for talent. “Deal flow is still strong and a lot
of banks are hiring,” says Adam Cairns, a director
at Fennemore Banks.
Derivatives sales and trading
Demand for derivatives
specialists has been
hot for years. Derivatives
are complex financial
instruments based
on underlying stocks,
bonds, currencies and
assets. Hiring has been
driven by the quest
for better returns and
by banks’ ability to
charge more for complex derivative ‘solutions’ than for
simple equities or bonds. At their simplest, derivatives
may be futures, where a buyer purchases the right
to buy a product at a future date and price; at their
more exotic, they may be single tranche collateralised
debt obligations, where investors buy debt products
catering for their risk appetite.
The August 2007 crisis in the credit markets and related
problems have temporarily halted hiring. New products
may emerge that overcome the turmoil and reinvigorate
hiring, but this remains to be seen.
Risk
Right now, risk hiring
is hot – and even if
things get a little more
‘risky’, risk analysis
looks like a good
place to be. “If the
cycle turns down,
risk hiring will hold
steady,” predicts Gail
Connolly, managing
consultant at recruiters
PSD Group. “Banking is a regulated sector, so you will
always need risk specialists for regulatory reasons,”
she adds. Research by PSD Group suggests over
40% of banks are adding risk specialists in 2007 and
another 30% are replacing staff who’ve left. The best-
placed jobs are in market risk or quantitatively-focused
roles helping to price derivative products. As hiring
expands, Connolly says some risk staff are getting
bonuses equivalent to, or even more than, salaries
– unheard of a few years ago.
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Continued from pg. 2
Employers IT in Finance Accounting in the City Banking & Financial Markets
The City of London, as this guide makes all too clear,
offers a feast of roles, opportunities and career paths.
But whether you join a small European investment bank
or a large US bank, you’ll encounter (roughly) the same
job titles, in the same order of importance.
Analyst
This is the lowest position of all; in investment banking,
‘analyst’ is another way of saying ‘graduate trainee’.
What analysts do varies from division to division. In
corporate finance, analysts are number crunchers who
put together ‘pitchbooks’ (research to help banks win
bids) and analyse a company’s financial products.
In sales, analysts telephone relatively unimportant
clients on non-crucial matters. On the trading floor,
analysts can’t trade until they’ve passed regulatory
exams – and even then, they are heavily constrained.
At most banks, you will be an analyst for two to three
years. The bank then decides whether or not to renew
your contract and you have an option whether to stay on.
How to move to the next rung?
Demonstrating the drive and motivation to succeed
and learn are key, asserts Esther Oxenbury, head of
investment banking graduate recruitment at JPMorgan,
where everyone is issued with a ‘road map’ of what they
need to do to progress. “At every level you need to show
you are able to increase productivity, anticipate market
changes and add value; to be competitive,” she says.
Associate
The next rung on the ladder, associates, are analysts
who have made the grade or business school students
who joined after studying for an MBA. Associates
typically have a team of analysts in their charge,
to whom they allocate work .
Expect to be an associate for another three years before
moving up to the next rung – vice-president (VP)
Vice-president
At this level, life starts to become exciting. The title
sounds grand, but don’t be deceived: VPs are plentiful
at any large investment bank. As a VP, you will manage
the day-to-day affairs of the associates and analysts
beneath you and are likely to have more contact with
clients. You’ll typically be a VP for three years, but
you could be here for much longer, as the job can
become a bit of a sticking point.“Once you make it
to VP, further progression is not guaranteed. It depends
on a much greater number of variables than at analyst
and associate level,” says John Harker, head of HR
at Citi. VPs who fail to progress at one bank tend to
move to another, where they can join the next rank
– director or executive director.
Executive director or director
Executive directors or directors (the titles are
interchangeable) are the right-hand men and women of
the real potentates – the managing directors. Executive
directors help managing directors cope with the daily
whims of client companies. In sales and trading, they
have bigger and more important clients to call, or even
larger trades to place.
Managing director
You’ve made it! Managing directors (MDs) are the upper
echelons of the banking hierarchy. MDs are the people
who deal directly with clients and bring in business.
Very few people make it this far. At one large US bank,
only 6% to 8% of directors are promoted to MD each
year. At Goldman Sachs, there are around 1,200 to 1,500
MDs for 25,000 employees.
Whether you’re a lowly analyst or an MD, progression
ultimately comes down to adding value. “Do not sit
back and wait to have your career managed for you.
You have to be first and foremost accountable to yourself
for your success,” says Richard Moore, EMEA head
of campus recruitment at UBS.
Exception to the rule
Although this hierarchy exists across banks, it’s less
noticeable in sales and trading divisions where you work
on your own to make money. If you’re an exceptionally
talented VP on the trading desk, there is every chance
you could earn more than an MD.
Rungs on the ladder
From analyst to MD – the ‘typical’ investment
banking career
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“At every level you need to show
you are able to increase productivity,
anticipate market changes and
add value”
Esther Oxenbury, JPMorgan
At a glance
Expect to spend at least three
years on each rung of the ladder
Many vice presidents move
banks to make it to the next rung
As few as 6% of directors go on
to become managing directors
Thinking New Perspectives.
Some think
steel and glass.
We think
meeting
of minds.
Mention global finance and people will often think of big buildings of glass
and steel, marble halls and swift lifts. But offices are only offices and we
have to work somewhere. It’s what we do inside those offices that matters.
Banking adds value, creates wealth and makes things happen in the world.
The people at Credit Suisse do important, exhilarating, rewarding work,
but they are still just people. So if you’re thinking that the high-rise world
of global finance is not for you, give us the benefit of the doubt and visit
the website. You might feel right at home.
www.credit-suisse.com/careers
Credit Suisse is an Equal Opportunity Employer and does not discriminate in its employment decisions on the basis of any protected category. To the extent permitted or required by applicable law, a candidate who is offered
employment will be subject to a criminal record check and other background checks before the appointment is confirmed. © 2007 CREDIT SUISSE GROUP and/or its affiliates. All rights reserved.
Employers IT in Finance Accounting in the City Banking & Financial Markets
Recent graduates who join investment banks are called
analysts. If you want one of these jobs you’ll need
to show your pedigree during the banks’ multi-hurdle
hiring process.
Hurdle 1: the application form
According to the graduate research company High
Fliers, a large investment bank receives 60 applications
for every graduate-level job. That’s 9,000 candidates
for the 150 or so places on the average bank’s graduate
recruitment scheme. More than 7,500 are eliminated
at the online application form stage.
Academic criteria are the main stumbling block. In
an ever more competitive environment, most of the
big banks specify that would-be candidates must be
on track for a 2.1 and typically have 320 or more
UCAS points. If you don’t meet the grade, you won’t
get any further than this. Most trainees come from
the best universities.
However, even if you’re on track for a first, the
application form could still trip you up. Esther Oxenbury,
head of investment banking graduate recruitment at
JPMorgan, says many candidates fall down because
of poor spelling or poor punctuation: “It is amazing how
many applications come through with mistakes on them,
yet our business is all about attention to detail,” she says.
A cut-and-paste approach is also perilous. Everyone
accepts people make multiple applications, but for
heaven’s sake put the right bank’s name on the form.
“I once had someone email me explaining how motivated
they were to come and work at Morgan Stanley –
it did not go down well,” says Jonathan Jones, EMEA
head of recruiting at Goldman Sachs
All application forms will have questions on your motives,
says Vivienne Dykstra of recruitment firm Graduate
Solutions. “What they are looking for is evidence that you
have done your research and that you have the hunger
and drive to thrive at their organisation,” she says.
Hurdle 2: the numeracy test
Banks increasingly use tests to check candidates’
numeracy. Some also use language tests to establish
whether candidates can think logically in English.
Numeracy tests typically eliminate another 50% to 60%
and are supposed to be academically neutral – they
are designed to test your underlying numerical ability,
not your knowledge of advanced calculus. They are
also supposed to be impossible to prepare for. However,
many university careers offices can help when it comes
to sorting out advance practice. Test provider SHL
also offers sample questions at www.shl.com/shl/uk –
click on ‘Practice Tests’ in the top right corner.
Hurdle 3: the first interview
By this stage, only around 1,000 of the original 9,000+
applicants will still be in the running.
First interviews typically take place on your university
campus. There you face junior people from the business
area to which you have applied and people from HR.
The first round is all about ensuring you’re the right kind
of person for the bank. All banks have a list of skills and
personal characteristics they try to identify. These are
fairly generic and include: team building, communication,
pro-activeness, assertiveness and leadership.
The key is to try and be yourself. “You are guaranteed
to be asked some questions about your drive and
motivation. We won’t want people who’ll just answer
in parrot fashion. We want people who will really listen
to what the interviewer is asking and digest that
information,” says JPMorgan’s Oxenbury.
It’s also important to come with some questions to ask
of the interviewer. “If you have no questions, that would
make me wonder how motivated are you,” she adds.
“You need to research the division you want to work in,
as that is going to be the main focus of your first interview,
they will spend a lot of time on that,” agrees Sally
Whitman, head of specialist resourcing at Deutsche
Bank. “You will need to be able to talk about it.
You cannot overestimate the amount of research
you can do,” she adds.
Hurdle 4: the second interview
By this stage around 320 of the original 9,000 applicants
are left. Between half and two-thirds will receive the
coveted offer of a full-time place.
The recruitment process
Applications, interviews, assessments and,
if you’re lucky, a job
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“You need to research the division
you want to work in... you cannot
overestimate the amount of
research you can do”
Sally Whitman, Deutsche Bank
>
At a glance
Competition is tough with 9,000
applicants for each vacancy
A 2.1 and 320 UCAS points are
the minimum grades preferred
Most applicants fall at the first
hurdle – the application form
Whether you are interested
in a career in investment
banking, capital markets,
investment management or
any of our corporate areas,
visit us online at
www.lehman.com/ruready.
Today you
affected tomorrow’s
financial headlines.
All in a day’s
work.
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Lehman Brothers is an equal opportunity employer. The Firm and its affiliates do not discriminate in employment because of race, religion or belief, gender, national or ethnic origin,
disability, age, citizenship, marital or domestic/civil partnership status, sexual orientation, gender identity or gender expression. ©2007 Lehman Brothers Holdings Inc. All rights reserved.
Lehman Brothers International (Europe), authorised and regulated by the Financial Services Authority, is an affiliate of Lehman Brothers Holdings Inc.
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The second interview is a series of interviews with senior
bankers, which normally take place at the bank’s head
office between September and January.
Second-round interviews place a greater emphasis on
technical aptitude. The interviewers will want to ensure
you can function under pressure and have at least a
basic understanding of how the business works.
To this end, applicants for fixed-income sales roles
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.
Hurdle 5: the assessment centre
At some banks, second interviews are replaced or
preceded by an assessment centre. Assessment centres
involve tests to show how people would perform at work.
They typically include another interview, a numeracy test,
a group discussion and a presentation. All this lasts a single
day, with around 12 candidates.
The most challenging part is the group discussion.
Six or so candidates are given a problem to solve together.
The aim is to assess team-building skills. This is followed
by a presentation, which can also sometimes be a sticking
point. Candidates are normally asked to analyse some
data and use it to present a convincing argument around
a particular point. The main failings include not identifying
the salient points, presenting a weak argument and
changing your views when challenged.
Hurdle 6: the exploding offer
Finally, you may have to deal with a final obstacle: the
exploding offer – a deadline by which you have to accept
an offer before it ‘explodes’, meaning when it is withdrawn.
“All students will be given an exploding date by which to
make a decision,” says Brian Hood, head of graduate
recruitment at Citi.
This can be a problem if you have several offers – particularly
if you have offers from your second and third choices and
are waiting to see if you get an offer from your first choice.
The best advice? Tell the top banks on your list and leave
the rest in the dark. If a bank knows you have several offers
and are in a dilemma about which to choose, it may make
allowances for you. In reality, however, very few banking
candidates will be this spoilt for choice. A foot in the door is
your first objective and a good spellchecker is the first step.
Nathalie graduated from the London School of Economics
with a degree in international relations in 2005, joining JPMorgan
in August of that year. She now works as an analyst in the
bank’s Natural Resources Advisory Group.
How did you go about applying to JPMorgan?
The first thing I did was go to LSE’s careers office where I did
some practice tests and got lots of advice on how to apply.
I also went to a campus presentation, which was very helpful.
I filled in the online application form and took a numerical test
and a couple of weeks later I was invited to a first round of three
‘competency-based’ interviews, during which I was asked about
my motivation and skills. I found the numerical tests difficult at
first, so it was useful to have practised beforehand.
A couple of weeks later I was invited to a ‘Super Saturday’
assessment centre, which started at 7:30am and lasted the
whole day. You do a series of different exercises, including a
two-hour case study, role play, a group exercise and then two
to three individual interviews.
What were the interviews like?
Both interviews were quite similar. They had numerical tests,
each one lasting for about 45 minutes. I found them very difficult
and so I was definitely glad I had done some before. They
also wanted to know about why I wanted to work in investment
banking and for JPMorgan in particular, and about my personality,
my character and my ambitions.
How did you convince the interviewers to invite you back?
You need to demonstrate that you are motivated and have
a hunger to learn. Everyone at this level has a good academic
record so you need to show them something about you
that is different.
Also, what can really differentiate you is how much research
you have done on the company. Now I interview people myself,
and you can really tell when someone has not done enough
background reading.
They don’t expect you to know everything, but if you can show
you are reading the financial press and are able to talk about
some of the deals going on it all helps.
Profile
Nathalie Casali
Analyst, Natural Resources Advisory Group
JPMorgan
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Continued from pg. 8
Nathalie’s tips
Prepare, prepare, prepare. Do some
numerical tests beforehand.
T e hours are long and you will need
stamina and endurance. So you need to
come across as extremely motivated and
ready to sacrifi ce everything for the job.
At the assessment centre, concentrate on
being yourself and doing your best. Do
not try to overwhelm or dominate. Try to
come across as a well-rounded person.
www.efinancialcareers.co.uk/students
Get ahead: start your job hunt early
Employers IT in Finance Accounting in the City Banking & Financial Markets
If you want to be a graduate trainee in an investment
bank, the chances are you have not thought too much
beyond the daunting application process. It is also
worth your while thinking about the training itself:
some banks do it very differently to others.
Superficially, a lot of the banks’ training programmes
are very similar. Whether you join the programme
for CIBC World Markets (which starts in August)
or Goldman Sachs (which kicks off in July) you will
have to work hard and learn very fast.
First, you will be put through a course that teaches
fresh graduates investment banking know-how, including
such subjects as financial modelling, bond pricing and
stock option theory. Then you will be unleashed on to
a particular division – the start of a training programme
that will typically last for two years.
So, all similar enough so far. But scratch the surface
and banks’ training programmes are not as similar
as they may at first seem. The differences tend to
be focused on four main areas:
• Location: where does the training take place?
• Duration: how long does it last?
• Delivery: who delivers the training?
• Breadth: how much opportunity is there to learn
about different areas of banking?
It’s worth noting, too, that for most banks the cut-off for
applications to their graduate programmes is the end of
January. But don’t despair if you miss the deadline, as
some (though not many) do stretch their closing dates
to the following spring.
Location
Where do you want to train? New York? London?
Amsterdam? Trinidad and Tobago? Unfortunately,
Trinidad and Tobago is not on the list of training
destinations, but everywhere else is. For example,
Goldman Sachs, Merrill Lynch, Morgan Stanley, Credit
Suisse and JPMorgan send some or all of their trainees
over to New York to learn banking theory.
This is not just the chance to have fun in the Big
Apple (although you probably will) while finding out
the difference between a ‘put’ and a ‘call’ option,
it’s also about meeting your graduate counterparts.
“It is an amazing experience, it is a real networking
opportunity. You make friends and contacts that you
will keep with you for a long time to come,” says
Esther Oxenbury, head of investment banking
graduate recruitment at JPMorgan, which offers
eight weeks of entry-level training in New York.
If Amsterdam grabs your imagination, ABN AMRO
is the place to go – the bank puts its recruits through
six weeks of intensive training at its Amsterdam-
based Academy of Finance when they join.
Most banks also have an element of initial classroom
training in London, either pre- or post-overseas training.
London is, in any case, where most European graduate
trainees come back to after their initial theoretical
training is over.
“When trainees return, they are then put through the
regulatory training that they need from the Financial
Services Authority (FSA), but also go into our 12-18
month graduate development programme,” explains
Jane Clark, EMEA head of campus recruiting at Merrill
Lynch, which runs a six- to eight-week global graduate
training programme in New York.
Duration
Including classroom and on-the-job training, most
graduate programmes last two years. However, time
in the classroom varies from just six weeks to as much
as four months – the latter mostly in the more complex
areas such as IT and private banking.
Banks whose trainees spend a long time in the
classroom say it’s an advantage, with trainees benefiting
from the intensity of the training they receive. Most
programmes will be highly tailored to the role you have
applied to do, and most big banks will also expect you
to be learning continuously through your career, explains
Jonathan Jones, Europe, Middle East and Africa
(EMEA) head of recruiting at Goldman Sachs.
“We have a Goldman Sachs university that delivers
training year-round. People are expected to pursue
multiple qualifications a year. It is an ongoing
commitment,” he says.
Graduate training schemes
Programmes vary considerably
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“You will build up a network of
contacts and relationships that will
remain with you through your career
and stand you in good stead”
Richard Moore, UBS
>
At a glance
Investment banks’ training
programmes are not identical
Check a programme’s location,
duration and breadth of content
Choose a programme from a
bank that will allow rotations
Our Focus
Your Future
Graduate careers
Standard Chartered Bank –
International Graduate Programme
Standard Chartered is focused on being the
world’s best international bank, by being the
right partner to our customers and attracting
and developing the best people to work
together across our global network.
Our International Graduate Programme offers
world class development. It celebrates open
mindedness, original thought, diversity and
ambition – qualities that we look for in future
leaders of our organisation.
If you are keen to find out more about our
exciting graduate opportunities and want
to join one of the world’s best international
banks please visit our website:
www.standardchartered.com/graduates
High Performance Banking
www.standardchartered.com
Delivery
The big banks tend to be proud of the fact that they
use their own senior bankers to deliver at least some
of their training programme to graduates. “You get
access to some of the world’s leading experts,”
enthuses Goldman Sachs’ Jones.
So, if you’re learning, say, how to value equity derivatives,
don’t be surprised to find the head of equity derivatives
standing in front of you and presenting the models. And
if it’s not senior managers then, for something that is
clearly an investment in their future, most banks are more
than happy to pay top dollar and bring in professional
training companies instead.
Breadth
You want to work in fixed-income sales? Is that selling
high-yield bonds or government debt? You probably
don’t know at this stage, which is why it might be a good
idea to join a bank that will let you work in different areas.
Trying out different parts of a bank is known as rotating.
Merrill Lynch, for example, allows interns entering its
global markets division two rotations in its debt and
equity group during the summer. Morgan Stanley, too,
permits trainees in its fixed-income division to do four
six-month rotations over a two-year period. Lehman
allows trainees in its fixed income and equities division
to undertake a few three-week rotations before settling.
Buddies and mentors
Finally, ask if the bank you’re thinking of joining has a
system of buddies and mentors – most now do. Buddies
are recent trainees who answer simple questions. Mentors
are more senior people who may become your long-term
guru. After all, the banks are investing significant sums
of money in you and it is in their interest to offer as much
support as they can to get a return on that investment.
And don’t forget the future networking and guidance
potential of the trainees on your programme, either.
“Through the graduate programme you will build up a
network of contacts and relationships that will remain
with you all the way through your career,” says Richard
Moore, EMEA head of campus recruitment at UBS.
“As your career progresses, the people around you will
hopefully progress with you and you will be able to call
on an incisive network of contacts that will stand you in
good stead,” he concludes.
Ryan works as a rates sales analyst in capital markets. He joined
Dresdner Kleinwort in August last year as a graduate trainee
after completing a degree in economics at the London School of
Economics in 2005.
What does your job entail?
I sell European government bonds to institutional investors
(asset managers, pension funds, insurers). I sit on a trading
floor and spend most of my day on the phone talking to clients
and following the markets. As well as speaking to clients daily,
I usually go out about twice a week socialising with different
clients – dinner, lunch, after work drinks and so on.
What was the Dresdner Kleinwort graduate trainee
programme like?
I applied specifically to this desk; the training programme
was essentially a 10-week classroom-based crash course
in finance, covering things such as bond maths, options,
equities and accounting.
After that I had three weeks’ regulatory training to get my
FSA exams. There were about 80 of us on the graduate
programme altogether, but we were divided into classes of
20. There was also a day’s training in communication and
presentation skills where they brought in experts from the
RADA drama school. We had to do lots of role play,
which was a lot of fun.
What did you feel you got out of it?
You can only be taught so much in a classroom setting, as a
lot of what you learn in this type of role you learn on the job
because it happens on the trading floor.
My team is very supportive, and I am encouraged to ask
questions, but going through the graduate training programme
was invaluable because it gave me a chance to learn away
from the hectic day-to-day and to ask as many questions as
I liked. It was very intensive, and I got to speak to and question
a lot of senior people, which was a real opportunity.”.
Profile
Ryan Hearity
Analyst
Dresdner Kleinwort
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Continued from pg. 12
Ryan’s tips:
Have a good idea of why you want to
do the job. You don’t have to know
everything, but you do need to understand
that sales is diff erent to trading and so on.
Ask as many questions as you can, especially
from experts and senior people. Enjoy it!
Speak to previous graduates and look at
what’s being off ered. A programme of one
or two weeks, for instance, may not have
much depth to it.
Employers IT in Finance Accounting in the City Banking & Financial Markets
Investment banking internships comes in various
guises. Some banks – such as Goldman Sachs,
JPMorgan, Morgan Stanley, Lehman Brothers,
Royal Bank of Scotland, Merrill Lynch and Credit
Suisse – offer one- to two-week long internships
to first-year undergraduate students. Many also offer
six- to twelve-month internships for IT students.
However, the most important internship occurs in the
summer holiday before the final year of your university
course. An intensive, 10- to 12-week period of work
experience, the typical investment banking summer
internship might sound like hard graft. But what
exactly is in it for you?
First of all, there’s the pay. It’s much better paid than
pulling pints in your local pub or stacking shelves in
a supermarket: summer banking internships pay
pretty good rates, normally anything from £350 to
£450 a week and sometimes as much as £650 a
week. Second, there’s the training: interns do many
of the same tasks graduate trainees do on a daily
basis. Most importantly, for those who are successful,
there’s the potential of being offered a full-time job.
“Internships are the best way not only to further
your investigation of the industry but also to realise
your ambitions,” says Richard Moore, Europe,
Middle East and Africa (EMEA) head of campus
recruitment at UBS.
The real beauty of an investment banking internship
is the ‘try before you buy’ element, agrees Jonathan
Jones, EMEA head of recruiting at Goldman Sachs:
“By going on an internship we understand you are not
saying you are definitely going to commit your life to
this industry, but we do look for a certain level of
commitment and evidence of a general interest and
an intellectual curiosity about it.”
And the conversion rate from internships to full-time
positions is pretty impressive, too. At most investment
banks, at least 50% of full-time graduate vacancies are
given to applicants who took on an internship during
the previous summer. At some banks, the figure is even
higher. Bank of America, for instance, estimates that
it plans to fill around three-quarters of its 2008 full-time
positions with interns from 2007.
Similarly, around half of Goldman Sachs’ full-time
hires will have done a summer internship the year
before, says Jones. About three-quarters of trainees
normally get offered a full-time position.
Few are called…
Competition for investment banking internships is
extremely fierce. There are normally hundreds or even
thousands of applicants for each place available.
Sally Whitman, head of specialist resourcing at
Deutsche Bank, estimates that the bank receives over
6,000 applications for the 190 places on its internship
programme. Hardly surprising, as for Deutsche, like
in most other banks, the internship programme acts
as a feeder into full-time positions.
In order to make their selection, banks will generally
use a combination of online application tests, multiple
interviews and numeracy tests. The selection bar,
again, will be set high, with normally the same criteria
– an expected 2.1 degree or above – as for permanent
entry-level positions and a requirement that you
demonstrate the same level of interest in a banking
career as full-time graduate hires.
If you’re one of the fortunate few to be selected as
an intern, rest assured you won’t spend your summer
making cups of tea. At most banks, internships begin
with a classroom-based introduction to the industry,
after which interns are unleashed on their chosen
division, where they do real (hard) work.
“When we are planning internships we go to great
lengths to structure them so that they as closely as
possible mirror what real life is like as a full-time
analyst rather than someone who’s just on a 10-
week internship,” says Goldman Sachs’ Jones.
Most good internships will be formally structured,
with interns sitting down with their managers to create
a list of skills and experiences they would like to gain.
The nature of work an intern does can range from
producing research reports through to helping to
improve the efficiency of back-office processes.
Internships
A vital part of banks’ graduate selection
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“An internship is definitely a
pipeline into full-time hiring. A high
percentage of our interns would be
expected to get full-time offers”
Jane Clark, Merrill Lynch
At a glance
Banks hire 50% or more of their
graduate intake via internships
Internships typically take place in
your second year of university
Banking internships pay very
well: up to £650 a week
Even fewer are called back
Recruiters agree that converting an internship into
a full-time job offer is all about being proactive.
“Perform well, show initiative and get involved,”
advises Brian Hood, head of graduate recruitment
at Citi. “Securing an internship will not automatically
result in a full-time offer. We’re looking for people
who make the most of the opportunities with which
they are presented,” he says.
Most banks assess interns’ performance twice during
the 12-week period: once in the middle and once at
the end. This means that if you happen to do badly
during the midway assessment, you still have an
opportunity to redeem yourself.
For those who miss the boat…
The first thing to be said here is, “try, try, try not to.”
Investment banking is a fiercely cut-throat industry
and simply not being able to get out of bed and get
your act together to get your application in on time
will generally not go down very well. As Richard
Moore, EMEA head of campus recruitment at UBS,
puts it: “Do not miss the deadline. It is just too
competitive an environment now.”
But if – for whatever reason – you haven’t managed to
secure an internship, don’t despair, as it need not be
the end for your planned career. Most banks are open
to receiving applications from students that have not
had an intern placement during the summer.
“A lot of candidates get hung up on the idea that they
have to have done an internship, but it is not always
the case. Even if you’ve only done a Saturday job you
can demonstrate the skills you have picked up, such
as numeric skills, dealing with customers and so on,”
advises Esther Oxenbury, head of investment banking
graduate recruitment at JPMorgan.
However, you will be at a disadvantage without an
internship – and not just statistically. Interns, by the
fact that they have spent time in the banking
environment and will have concrete examples of
their achievements, will stand a much better chance
of doing well at an interview. As Jane Clark, EMEA
head of campus recruiting at Merrill Lynch, puts it:
“It is definitely a pipeline into full-time hiring. A high
percentage of our interns would be expected to
get full-time offers.”
Rodney joined Merrill Lynch last year after completing
a 10-week internship at the bank in 2005. He read economics
at Royal Holloway, University of London, and is currently
working as an analyst within Merrill’s European Leveraged
Finance division.
What prompted you to do a banking internship?
I was intrigued by the idea of going into banking. It had always
been something I wanted to go into, so an internship was
a really useful way to find out what it was really like. It gives
you hands-on experience.
I saw it as a win/win situation because you are getting fantastic
experience and also getting a taste of something you might
like to do when you finish your degree.
Did you intern in the department you are working in now?
Yes. It was a rotational programme so I spent two to three
weeks in different areas, such as chemicals, corporate finance
and so on. You get to try everything out and then you home in
on the one or two areas that you like best.
How was the internship spent?
They try to mimic the reality of what it’s like being an analyst.
So I was working very closely with all the different teams.
What did you gain from the internship?
I learnt that it was a very exciting job, that it was glamorous
but there was also a gritty side to it, particularly around the
long hours. But it’s a very supportive culture, and it was
a lot of fun too.
There were a lot of social activities – we even had a cocktail
evening on the Merrill Lynch roof, which was fantastic. It was
clear that those who enjoyed themselves and demonstrated
the most keenness, even when you are working until 1am,
were the ones who were more likely to convert the internship
into a permanent offer.
Some interns used to leave at 6pm and did not take the
opportunity to spend time talking to their mentors or senior
directors, which I think was a real waste.
Profile
Rodney Appiah
Analyst
Merrill Lynch
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Rodney’s tips:
Demonstrate a passion for the job,
hopefully one that is natural!
Try to fi t in from the start, try to become
part of the furniture of the team. If it gets
to the point where you are missed when
you are not there, you’re doing well.
Enjoy it. Take full advantage of the
opportunities on off er and ask as many
questions as you can.
www.efinancialcareers.co.uk/students
Find out more about careers in finance
The word is different.
If you thought a career in banking and finance meant putting good intentions aside, look again.
At Dresdner Kleinwort, we’re focused on finding those individuals who can take a wider look
at business. We’re interested in talented people from a range of backgrounds and degree
disciplines. People who are hungry to come up with the solutions that make things work
better – for our clients, for their customers, for the world.
If you think you can bring more to banking, call us.
Spread the word.
www.dresdnerkleinwort.com/graduates
Unexpected viewpoints. Radical thinking. Inspiration.
Don't
leave
conscience
your
at the door
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Strictly speaking, it is more accurate to talk of MA&D
rather than M&A, as M&A covers mergers, acquisitions
and disposals. Mergers is where two companies join
as equals; acquisitions is where one company buys all
or part of another; and disposals is where a business
is selling or all part of its operation.
Most large investment banks only become involved
in the biggest deals – those worth at least $150m
(€111.5m). Lower-value transactions, those generally
worth $20m to $150m, are typically dealt with by the
M&A divisions of accountancy firms. Transactions
worth less than $20m will normally be the domain of
solicitors and high street banks.
Trends
In 2006, European-announced M&A volumes rose
38.3% on 2005 to £35.8 trillion. In the first six months
of 2007, European M&A activity rose 57% on the same
period of 2006.
The UK is the most important country in Europe for
M&A activity. It accounted for 32% of all announced
European deals in the first quarter of 2007 – more
than France and Italy combined. However, announced
doesn’t necessarily mean completed, and while the
first three months of 2007 saw some impressive deals
announced in the UK – such as the £10bn offer by
CVC Capital Partners for Sainsbury’s supermarkets –
not all those deals came to fruition.
How will the rest of 2007 work out? Bankers are said
to be upbeat and there are several large UK deals
on the cards. Watch for the £7.5bn bid for Reuters,
a potential £3.5bn bid for brokerage firm ICAP and
a £3bn-plus takeover of EMI Music.
Key players
The so-called US ‘bulge-bracket’ banks are generally
found towards the top of the M&A league tables
issued by Thomson Financial. Morgan Stanley, Citi,
Goldman Sachs and JPMorgan occupied the top
four rankings for total European M&A in 2006. The
situation was slightly different in the UK, with German-
based Deutsche Bank in pole position, followed by
Morgan Stanley, Citi, and, in fourth place, Rothschild,
a UK-based bank.
Roles and career paths
As a rule, the more senior you become in M&A,
the more contact you have with clients.
As a junior banker, or analyst, you will spend a lot of
time working on ‘pitchbooks’ – documents outlining
a bank’s ideas for a particular transaction. Analysts in
M&A usually conduct basic research for the pitchbook
and build the financial models used to price the
companies concerned.
One notch up from analysts are associates, who oversee
analysts’ work and check their models are correct.
Further up the scale are vice-presidents, who survey the
work of analysts and associates, and often ask for the
pitchbook to be partially or completely re-written.
Vice-presidents report to directors and managing
directors, who ‘own’ the client relationship (i.e. the
main point of client contact). It is usual for pitchbooks
to come to nothing: clients decide not to go ahead
with the suggestions or engage a rival bank. However,
when a pitchbook elicits a positive response, the M&A
team see the deal through to completion.
Live M&A deals are hard work. People involved can
work nights and weekends and are at their clients’
beck and call. Once a deal is underway, junior bankers
can expect to be very busy assembling the reams of
necessary financial information and legal documentation.
Morgan Stanley 493.1 184
Citi 489.0 198
Goldman Sachs 440.1 164
JPMorgan 435.0 217
Merrill Lynch 404.9 140
Deutsche Bank 377.5 158
UBS 318.3 179
Rothschild 299.1 296
BNP Paribas 295.8 107
Credit Suisse 287.0 156
Lehman Brothers 249.0 97
S
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European announced M&A 2006
Advisor Value ($bn) No. of deals
Mergers and acquisitions
At a glance
2006 was a good year for M&A;
2007 looks like being even better
US banks dominate the
European M&A scene
Be prepared for punishing hours Te international jet set of investment banking
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“You get to see deals at all the
different stages of their life cycle and
deal with a huge variety of clients.
It is very client and deadline driven”
Jonathan Jones, Goldman Sachs
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The Macquarie Group is a diversified
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Pay
2006 was a good year for pay. Graduate trainees working
in London M&A teams earned nearly £70k on average.
Those two years above them were on six-figure sums.
However, it’s worth bearing in mind that what goes up
can go down. Bonuses for mid-ranking and junior M&A
staff were up around 20% in London in 2006 compared
to 2005. In a bad year for M&A they could just as easily
fall 20% – or more.
Skills
The M&A sector is very popular with graduate applicants,
so banks want clear evidence graduates have thoroughly
researched the industry in advance, cautions Richard
Moore, EMEA head of campus recruitment at UBS. Within
corporate finance and M&A, UBS expects to take around
75 graduates into full-time positions this year: “Candidates
need to be resilient, robust and able to adapt to rapidly
changing circumstances,” he explains.
Jonathan Jones, EMEA head of recruiting at Goldman
Sachs, adds: “You’ll need a lot of analytical skills, as a
significant element of the role is modelling and valuing
companies. A lot of it can be spreadsheet-based
modelling, but we do not expect people to be experts
the day they walk in the door.”
M&A candidates also need to be good negotiators
and a second European language is an advantage.
If you want to execute an M&A deal and prepare a
pitchbook, you’ll need to be analytical and not averse to
number crunching, says Jonathan Baines, a headhunter
specialising in M&A at Whitehead Mann. To make it to
the top you’ll need a different skillset: “You need the
communication skills and self-confidence to strike up
a genuine relationship with the chairman and chief
executive of a FTSE 100 company,” says Baines.
Marian McWilliams has been an M&A analyst at Bank of America
for just over a year. She joined in 2006 after completing a summer
internship the previous year. Marian studied economics and
politics at Trinity College, Dublin.
What does your role involve?
My job is to analyse companies’ financials, identify M&A
opportunities for them and support them through the entire
M&A process. We spend a significant amount of time valuing
companies and attempting to identify value-enhancing
opportunities, perhaps an acquisition, disposal of a particular
business or the formation of a strategic partnership.
We then present these ideas to the company and, if they decide
to pursue them, act as their advisor throughout the process,
providing services ranging from a more detailed valuation to
due diligence and launching the formal offer.
Can you describe a typical day?
I am usually at my desk by 9am which is relatively late by City
standards. I spend the first 20 minutes checking my voicemail
and replying to any overnight emails. By 10am I usually have
a pretty clear idea of how my day will pan out – typically
internal meetings about projects, valuation work and finalising
presentations to clients.
After lunch the US wakes up, so the work level intensifies.
Normally in the late afternoon there will be a client meeting,
after which there will be various follow-up tasks.
The challenge – and excitement – of working in M&A is that the
work is rarely cleared off your desk just because it’s the end of
the day. The M&A process is sometimes full of dramatic twists
to which we have to react within tight time constraints.
What kind of person do you need to be to excel in this role?
To work in M&A you need to extremely hard working and
organised, as you are often working on multiple projects at
once. As the teams for each deal are different, analysts must
manage their time carefully.
Quantitative skills are vital but, in my opinion, you don’t need to
come from a quantitative background. What is important is that
you can learn quickly and are driven to learn independently.
Profile
Marian McWilliams
Mergers & acquisitions analyst
Bank of America
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Analyst one 36 31 67
Analyst two 44 48 92
Analyst three 49 60 109
Associate one 57 87 144
Associate two 61 107 168
Associate three 67 141 208
1st year vice-president 75 167 242
2nd year vice-president 83 221 304
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M&A salaries (£k)
Level Salary (av) Bonus (av) Total
Continued from pg. 20
Marian’s tips:
An internship gives you the best insight
into what life will be like, and allows you
access to other areas of the bank.
Understand what you will be doing –
many City jobs seem glamorous, and you
can lose sight of what the job entails.
Gather as much information as you can –
speak to people in the profession and set
clear goals of where you want to be after,
say, three years.
www.efinancialcareers.co.uk/students
Click online to begin your finance future
bankofamerica.com/careers
Certain activities and services provided by the business referred to above are provided by Banc of America Securities LLC, a subsidiary of Bank of America Corporation. Banc of America Securities, member NYSE/NASD/SIPC.
Bank of America is an equal opportunity employer. Approved by Banc of America Securities Limited, which is a wholly-owned subsidiary of Bank of America, N.A. and is authorised and regulated in the United Kingdom by the
Financial Services Authority. ©2007 Bank of America Corporation.
Gain responsibility early and often.
Work with prestigious clients. Seize an unparalleled career opportunity.
The fastest growing global corporate and investment bank in the industry
awaits you.
“Best Global Bank”
—Euromoney 2007
Opportunity
Starts Here
®
I joined Bank of America in 2005 as a summer analyst
in the bank’s London office, where I spent 10 weeks in
the Energy and Power team covering clients ranging
from Oil and Gas companies right through to Integrated
Utilities and Waste Management companies. Having
done a degree in Experimental Psychology at the
University of Bristol and with little finance experience,
the learning curve was near vertical. However, with
the excellent training both in the classroom and on
the job, the skills and knowledge became second
nature. It definitely helped to be in a small team of
top class bankers and the support of a large bank.
Following my internship, I was fortunate enough to
have been offered a full time position for the following
summer, which made my final year
at University a lot more enjoyable
without the stress of having to look for
a job in the middle of my final exams.
The decision to return to the Energy
and Power team was an easy one
– I wanted to build on my experience
from the internship and continue
in an industry where my scientific
background would be put to good use.
The five week training programme in
New York was simply brilliant. I was
taught the principles of corporate
finance very quickly by expert lecturers
in the field, as well as getting to know
the rest of the worldwide analyst
class in an awesome city. The skills learnt there
would prove to be invaluable once I joined my team.
Since the end of training, the learning curve is
as steep as ever and is always evolving, with each
day bringing new challenges demanding new
skills to overcome them. I have found that the
slogan “there is no typical day in the life of an
analyst” to be true, despite my initial scepticism.
My typical responsibilities have included:
Valuation analysis: comparable company
analysis, comparable transactions, discounted
cash flow analysis, leveraged buyout analysis
Industry research: market analysis, including
competitive and demographic trends
Company analysis: analysis of key
operating metric, financials and review
for growth and synergy opportunities
Company information: summarising and
presenting due diligence information
Buyer analysis: Identifying buyers and
creating strategic/financial sponsor profiles
News: tracking and reviewing key industry
news items to bring to the attention of my team
I’d describe my experience as
‘incredibly challenging but fantastically
rewarding’. I have been involved in a
huge variety of projects, based in the UK,
US, Continental Europe, Yemen, Kuwait,
India and even Equatorial Guinea
across the whole spectrum of Energy
and Power. The experience has been
bewildering both in terms of the volume
of new knowledge and the skill sets you
learn in such a short period of time.
What differentiates Bank of America
from other banks on the street is the
exposure and responsibility you get as a
junior analyst. As our teams in Europe tend to be smaller,
the depth of interaction and involvement in projects
and level of client interaction become a function of your
aptitude, commitment, initiative and responsibility.
It’s a challenging and exciting environment
to work in and a unique opportunity to join a
fast moving platform with incredible potential.
„
„
„
„
„
„
Our momentum is your advantage
Imagine what you could achieve as an analyst at Bank of America, an entrepreneurial organisation that is
among the top five most profitable companies in the world. From London to New York to cities across 175
countries, we are leading some of the largest, most complex deals in global corporate and investment banking
today. To learn about our competitive edge and what it means for your career, visit bofa.com/careers.
Christian Huot
Certain activities and services performed by the business referred to above are provided by Banc of America Securities LLC, a subsidiary of Bank of America Corporation. Banc
of America Securities LLC, member NYSE/NASD/SIPC. Bank of America is an equal opportunity employer. Approved by Bank of America, N.A., London branch, authorised and
regulated by the Financial Services authority (FSA). © 2007
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Capital markets are where traded financial products
are born. Working on the ‘factory floor’ of the financial
markets, these… er… blue collar bankers produce
financial products for companies and institutions that
want to raise money. The two main products are shares,
traded on the equity capital markets (ECM) and bonds,
traded on the debt capital markets (DCM).
Until the redemption date, the issuers of most bonds
pay regular interest to the bondholder. Because these
are a fixed-cash sum, bonds are known as fixed-income
products. Similarly, the bond markets can be known as
the fixed-income (FI) markets. As well as simple equities
and bonds, capital markets divisions also issue more
complex products (bonds that can be converted into
equities at a pre-arranged price) and derivatives.
Fixed-income capital markets are much larger than
equity capital markets. In 2006, for instance, Dealogic
calculated that the value of bonds issued in Europe,
the Middle East and Africa was $2.25 trillion, while
the value of equities issued in the region in the same
period was just $267.5bn.
Trends
Like most areas of investment banking, capital
markets experienced a boom in 2006. The amount
of equity issued on stock exchanges in Europe, the
Middle East and Africa rose 19% compared to 2005,
while the amount of debt issued rose 13%.
One of the biggest stories of recent years has been
the number of companies floating on the Alternative
Investment Market, or AIM. AIM is part of the London
Stock Exchange (LSE) and its regulatory standards can
be easier to satisfy than those of the LSE’s main market.
The number of companies listing on AIM doubled from
2003 to 2006. Many came from overseas, particularly
from emerging markets such as Russia and China.
However, as AIM and other European listings have gone
through the roof, US markets such as Nasdaq have lost
out. In January 2007, a report commissioned by the
mayor of New York suggested the city risked losing its
status as the world’s leading financial centre – largely
due to stringent regulations such as the Sarbanes Oxley
Act, which deterred companies from listing on American
stock exchanges. By comparison, London’s AIM, in
particular, has been accused of being too lenient.
Key players
If US banks dominate the European M&A league tables,
European banks do a little better in the capital markets
arena. In 2006, Barclays Capital was the leading advisor
on European debt issues by value, followed by Deutsche
Bank, with UBS the leading equities issuer. However,
US banks followed closed behind, particularly in the
equities market, with JPMorgan, Goldman Sachs and
Morgan Stanley in second, third and fourth places.
Roles and career paths
If you work in the capital markets division, you could
find yourself doing anything from originating (bringing
in business), to structuring (assembling complex
derivatives products) or syndicating (preparing for
the sale of finished products to investors).
Origination specialists are usually senior capital
markets bankers. It’s a job that involves a lot of travel:
originators spend their time meeting clients in an effort
to gain insight into their financing needs and persuade
them to deliver up their business. By comparison,
structurers are distinctly desk-bound. They spend their
Barclays Capital 187.7
Deutsche Bank 164.5
Citigroup 149.3
Royal Bank of Scotland 132.6
ABN AMRO 119.6
HSBC 113.0
Top DCM banks (Europe, Middle East and Africa) 2006
Bank Bond issues $bn
Capital markets
At a glance
Capital markets bankers issue
shares (ECM) or bonds (DCM)
Capital markets boomed in 2006
Top originators can
earn around £1m Get in on the ground floor
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“Clients’ appetites are more complex
now, so you need technical and
mathematical skill. But you also need
good relationship management skills”
Richard Moore, UBS
UBS 22.8
JPMorgan 21.6
Goldman Sachs 20.8
Morgan Stanley 20.4
Deutsche 20.4
Top ECM banks (Europe, Middle East and Africa) 2006
Bank Equities issues $bn
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HSBC's Corporate, Investment Banking and Markets (CIBM) is an emerging markets-Ied and
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If you are interested in a career with a truIy gIobaI organisation, pIease visit our website:
hsbcnet.com/ibcareers
Issued by HSBC Bank plc, authorised and regulated by the Financial Services Authority.
AnaIyst opportunities
OPENI NG DOORS EARLI ER
AT A GLANCE
Royal Bank of Canada
• US$500 billion in assets
• 70,000 staff
• One of the highest credit ratings of
any financial institution*
• Canada’s largest financial
institution as measured by market
capitalisation and assets
RBC Capital Markets
• One of the world’s top 17
investment banks

• Top 19 global FX banks
(Euromoney 2006)
• Top 15 global bond underwriter

• 3,700 staff through
75 offices in 15 countries
*Moody’s Aaa, Standard & Poor’s AA -
†Bloomberg
At RBC Capital Markets, we won’t leave you feeling like you’re on a
graduate scheme for long. With a distinct emphasis on progressing
talent fast through the organisation, our graduate training programme
takes you through each of our five capital market businesses, ensuring
you pick up everything you’ll need to contribute fully to our global
successes. It’s not unknown to have ‘Vice-President’ on your door while
you’re still in the early stages of your career.
Your training will be here in London, the thriving centre of our
expanding European business. After just 17 weeks, your training
programme finishes and you’ll be heading for a challenging, demanding
and rewarding role in one of the world’s leading international corporate
investment banks. You’ll help us serve clients in some 30 countries
around the world, and will join an extended family of 70,000 employees
in the wider Royal Bank of Canada.
Career prospects are excellent and the remuneration is everything you
might expect from an organisation of our standing.
To find out more or to apply, or if you’re interested in one
of our summer internships for undergraduates, please visit
www.rbccm.com/careers
time creating esoteric financial products that suit
a company’s financing needs, as communicated by
the originators. It’s up to the people on the syndication
desk to prepare the ground for the sale. They calculate
the best price range for the products concerned, assess
how many people will want to buy them and make sure
the correct documents are in place.
Pay
Top capital markets bankers aren’t paid as much
as top derivatives traders, but they still do very, very
well. In 2006, average total pay for a managing director
originating debt deals for a top investment bank was
around £875k, according to headhunter Napier Scott.
By comparison, pay for analysts in debt capital markets
can be anywhere between £45k and £88k.
Skills
Debt and equity capital markets jobs are highly sought
after and the increasing complexity of financial products
means you will need a strong academic record to
get in, advises Richard Moore, EMEA head of campus
recruitment at UBS: “The appetite and awareness of
clients for financial products is more complex now,
so you need to have a good degree of technical and
mathematical skill. But you also have to have good
relationship management skills,” he explains.
Sally Whitman, head of specialist resourcing at
Deutsche Bank, says: “You need to look carefully at
what it is you want to do. Some areas can be very
analytical and there we might look for someone with
a PhD. But, for most areas, problem solving skills as
well as strong communication are essential.”
Julian Bell, a director a headhunter Sheffield Haworth
and former director of equity capital markets at Société
Générale, agrees: “You’ll need to be deal oriented, to
know how markets work and to understand why a deal
can or can’t be priced in a certain way,” he says.
Catherine is an analyst on the equities side of the global capital
markets division at Morgan Stanley. She joined the bank full-
time last autumn after completing a summer internship in 2005.
Catherine studied economics at Cambridge.
What does your job involve?
Corporate broking is an equity product team that specialises
in providing advice to UK corporates. This would include, for
example, investor feedback and shareholder analyses, while
advice would cover transaction structuring and execution as
well as technical advice and help with investor relations.
What have you been working on today?
I’ve been dealing mostly with a presentation for one of our clients,
which has involved a lot of researching and number crunching.
It’s a shareholder targeting piece so I’m looking at possible areas
where the client could look to improve the quality and quantity
of investors interested in the stock. I also have to keep one eye
on the market in case there are any significant events which we
should be informing our clients of. I’ll try and speak to a few of
our traders later if it looks like there has been some significant
trading activity in any of our clients’ stocks – it’s always good to
get a feel for why interest in the stock is heightened.
Why did you choose to work in capital markets?
To be honest, before I did the internship I did not know that
much about it. But I found the finance-raising side really
interesting. You get to deal with a lot of varied people and have
a wide variety of clients, even at a relatively junior level.
What’s good and bad about your job?
The best bit is the variety and the fact I am surrounded by people
of all different levels. We all sit together so it is great to hear what
is going on. The worst? Having to get up early.
What skills do you need to thrive in this area?
You have to be good at time management because there is
always a lot going on at the same time. You also have to have
good attention to detail and be able to deal with all sorts of
people, including very senior people. You have to be able to
communicate with them confidently.
Profile
Catherine Gunn
Analyst in global capital markets
Morgan Stanley
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Managing director 130 745
Executive director 100 460
Director 80 235
Associate director 60 115
Associate 45 100
Pay: Debt Capital Markets – origination, top-tier banks
Title Base salary (£k) Bonus (£k)
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Continued from pg. 26
Catherine’s tips:
Try and get some hands-on experience,
otherwise you’ll never know if it is for you.
Speak to people who are already doing
it. You need to know what it entails
because the hours can be long, and you
are going to have to commit to it.
Read the newspapers, especially the FT.
You have to be aware of what is going on in
the markets. Banks will look for someone
who’s showing interest and potential.
RWE Trading – More than energy
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Since competitive energy markets emerged in Europe in the late 1990’s,
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Success in the dynamic and complex energy trading business
would not be possible without professionals from a wide variety
of disciplines. From risk management procedures to the impact of
weather conditions on energy supply and demand, RWE traders
not only deal with commodities such as power, gas, coal and oil,
we also actively trade physical and financial derivatives.
No one knows what the markets will really be like in twenty years
time. What we can say is that the European power market, a rela-
tively young market with fast growth rates, will undoubtedly have a
decisive influence on the integration of the European economies.
Your opportunity – Join RWE Trading and prepare to excel. From
day one our unique approach to your development will uncover and
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Send your CV and covering letter to trading.jobs.trading@rwe.com
“You‘re at the centre of everything at RWET”
Klaus Dribusch, Trader Short Term Position Management (STPM) – Essen
Power Trading United Kingdom
RWE Trading has been at the forefront of efforts to stimulate
liquidity, both through trading outright power and also through an
active spread trading function, trading the rela tionship between
power, coal, gas and carbon.
Coal Trading
RWE Trading is on the fast track to be coming a key player in the
international trading and marketing of coal. In recent years new
fundamentals have emerged in the coal market. The rapidly rising
demand from China and India and the renaissance of coal-fired
power generation in Europe have caused signi ficant increases in
ocean freight rates and coal export prices. RWE Trading is already
a significant player in the physical coal and freight trading markets,
the value of these activities is enhanced by our active involvement
in coal and freight financial derivatives.
Environmental Trading
RWE Trading is a strong supporter of the Euro pean Emissions
Trading Scheme. Trading CO
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allowances is a vital part of hedging
commodity risks and has already become a new fundamental of
our business.
“At RWET the world is your market place”
David Matthews, Structurer – London
Gas Trading
Enormous regulatory changes are creating an open, competitive
gas market. A new and exciting situation is evolving that challen-
ges every gas trader to make full use of the value chain
Structuring and Valuation
The S&V team bridges the gap between the worlds of academia
and trading in order to attain higher levels of energy trading busi-
ness excellence. The team delivers cutting-edge financial methods
and tools to quantitatively assess and manage all types of energy
commodity prices and energy risks. In order to stay ahead of the
con stantly changing markets, we permanently question the status
quo and develop new methods and products at a high pace.
Analysis
Energy markets are influenced by a multitude of drivers that are
often interdependent. The analysis team interprets those vast
amounts of data and turns it into useful information. The team
analyses fundamental data, performs time series analyses and
publishes market reports.
Power Trading Continental Europe
The power market is on the verge of becoming a truly European
market that reaches from Spain to Scandinavia. Power wholesale
markets have been growing rapidly across Europe; on the German
market alone, traded volumes are expected to be eight to ten times
the actual domestic electricity consumption.
“It’s a dynamic fast moving environment”
Sonia McCorquodale, Cruise Desk Head of Biofuels – Swindon
Risk management
Our risk management expertise provides a structural framework that
supports traders and helps us to make the best possible use of market
opportunities. One of RWE Trading‘s key functions is to monitor, analy-
se and balance risks. We are the energy wholesale risk pool and risk
manager for the RWE Group. We support the management of the
generation asset and retail portfolios owned by our sister companies
across the RWE Group by taking on and pooling inherent commercial
risks arising from movements in the power and fuel markets.
Oil Trading
Trading in oil is a global challenge. Relying on the expertise of its
traders and risk managers, RWE Trading deals in both physical
and derivative markets and takes full advantage of the structure
of its business model and group-wide synergies
Employers IT in Finance Accounting in the City Banking & Financial Markets
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The aim of the secondary markets is to buy and sell
‘used’ financial products to make a profit – or at least
to avoid a loss. This compares to the ‘primary market’,
where institutions issue new financial products to raise
money. Every day, millions of financial products are
traded in the secondary markets. Sales people, traders
and researchers advise on and carry out these sales.
Traders: these are the people who actually buy and sell.
They get up early to be at their desks when the markets
open at 8am and spend their day in front of computer
screens with hundreds of other traders on the ‘trading
floor’. The screens are a window onto the financial
markets and show movements in the prices of shares,
bonds, commodities and other financial products.
At the touch of a button, traders can buy and sell
the products they’re tracking.
Sales people: sales people work the phones, calling
clients – rich individuals, pension funds and institutional
investors – from the moment the markets open. They
take orders for financial products which they pass on
to flow traders, who buy the products. Midway between
the sales people and traders exists a hybrid – the ‘sales
trader’. Like sales people, they call clients to recommend
securities; like traders, they can also trade the securities.
Research: researchers, also known as analysts, report on
trends in company share prices, industry sectors or the
prices of bonds or other assets. Sales people use the
information to advise clients on investing in that sector.
Researchers spend their time scouring companies’
balance sheets and talking to company directors.
Trends
Sales, trading and research people at investment
banks are being buffeted by distinctly different trends.
In sales, the emphasis is on selling complex derivative
‘solutions’ which have been created specifically to fulfil
clients’ needs – rather than simply selling bog-standard
equities or bonds. At the same time, banks have begun
beefing up with people who can sell products into hedge
funds – hedge funds trade more frequently, so
there’s more money to be made selling to them!
Traders, meanwhile, have been on something of a roll.
At Goldman Sachs, traders account for the bulk of
revenues – 74% of first-quarter 2007 profits at the
bank were derived from trading and principal (private
equity style) investments. And banks are now trading
a broader range of products – commodities are the
latest hot favourite. Researchers have had a harder
time. Brokers selling equities must now reveal how
much of their commission covers research costs –
and buyers don’t always want to pay up. As a result,
equity researchers in banks are increasingly forced
to justify their existence. Some have opted to join
independent research houses instead.
Key players
If Goldman is the king of proprietary trading, UBS
wears the crown in equities trading and research.
In 2007, it won the Thomson Extel Award for pan-
European equity research for the seventh year running;
Citi came second and Merrill Lynch came third.
What UBS is to equities, Deutsche Bank has traditionally
been to European fixed income, but the German bank
is increasingly being challenged by newcomers such
as Barclays Capital. At the same time, Deutsche has
followed Goldman down the trading path – 41% of first
quarter 2007 revenues came from trading activities.
Roles and career paths
There are two fundamental types of trader:
proprietary traders and flow traders. Most traders are
flow traders – they buy and sell financial products on
behalf of the bank’s clients. Sales people tell flow
traders what clients want to buy and sell; flow traders
tell sales people whether a particular trade is possible
at a particular price.
A handful of elite traders – the so-called proprietary
traders – trade on behalf of the bank itself. Their aim is
to buy low and sell high, an achievement that requires
both judgement and luck. Proprietary traders can make
stupendous profits – and also stupendous losses.
Progression in sales and trading is all about performance.
“Following the graduate training programme, promotion
is very much based on ability to perform,” says Sally
Whitman, head of specialist resourcing at Deutsche Bank.
Sales, trading and research
At a glance
Trading is the best paid of the
sales, trading and research trio
Researchers are struggling
to pay their way
Top trader reportedly
earned £50m in 2006
Te multi-millionaire ‘second hand’ market traders
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“You have to have genuine interest
and curiosity in the markets, their
dynamic and what makes them tick”
Jonathan Jones, Goldman Sachs
>
global reputation
growth and success
inspiring colleagues
limitless potential
Merrill Lynch is one oI the world's leading wealth
management, capital markets and advisory companies.
Cur iconic brand and global capabilitiesoIIer you the
chance to realise your potential whilst working side·by·side
with thought leaders on pro|ects oI breathtaking scope
and complexity. Join us and you can also beneñt Irom a
perIormance·based culture oI excellence, where respect
Ior the individual, commitment to breakthrough, big·picture
thinking and enduring values create an environment Ior your
continued growth and success.
For more inIormation or to apply online, visit
dc%Zfd&ZXi\\ij&\lifg\
Merrill Lynch is an equal opportunity employer.
ml.com/careers/europe
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Pay
Successful proprietary traders are some of the best-paid
people working in investment banks. When the 2006
bonuses were paid out, rumour had it that one
foreign exchange trader made £50m.
In the sales space, derivatives sales roles are the most
lucrative – particularly those that involve selling to
hedge funds. Pay figures from headhunter Napier Scott
suggest that the very top salespeople in the hedge fund
space made £1.35m in 2006. Few researchers make
those amounts nowadays, by comparison
Skills
“You have to be analytical. You have to have genuine
interest and curiosity in the markets and how they work;
their dynamic and what makes them tick,” says Jonathan
Jones, EMEA head of recruiting at Goldman Sachs.
“You need also to have a sense of risk and reward,
in the commercial sense, and the ability to keep calm
under pressure. The hours will normally be reasonably
civilised but the deadlines tend to be moment to moment
rather than a few days.”
To work in research, candidates need excellent
interpersonal and communications skills and very strong
written and analytical skills. Strong quantitative skills
are also important and fluency in a second European
language helps, says Veronica Elder, equities graduate
recruitment manager, Europe at Credit Suisse.
All this holds true in sales trading too but, because it’s a
more client-facing role, you also need the ability to build
and maintain relationships. “The markets can move fast
so you need to be quick thinking, extremely organised,
excellent with numbers, be able to work well under
pressure and multi-task,” Elder explains.
Richard Moore, EMEA head of campus recruitment
at UBS, agrees: “Whether your clients are internal
or external, you will need to have the ability to build
relationships, listen and interpret accurately.”
Managing director 130 930
Executive director 105 730
Director 90 490
Associate director 75 180
Associate 65 85
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2006 pay (£k), credit traders, top-tier banks
Title Salary Bonus
Andreas joined Bank of America’s graduate programme in June
last year after completing an MSc in economics and finance at
the Stockholm School of Economics. After a six-week introduction
course and two weeks of studying for his regulatory exams, he
took up his current position on the rates trading desk.
What does your role involve?
Mostly quoting prices to clients, executing trades and managing
risk. I also take proprietary positions where I see opportunities
in the market. The size of the trades varies a lot depending on
the type of product, whether it is a client or proprietary trade
and market conditions. A lot of time is also spent finding and
analysing information by following the news being published,
talking to brokers and so on.
Can you describe a typical day?
I usually arrive shortly after 6:30am to read up on overnight news
and market developments. I then re-evaluate my positions and
decide if anything needs to be changed. On a busy day, the rest
of the time is spent executing and hedging trades while trying to
identify opportunities for proprietary positions. On a slow day I
spend a lot of time reading research reports and discussing trade
ideas with my colleagues. If the market has been quiet, I usually
leave around 5:30pm, but after a busy day there might be a
backlog of admin to do.
Why did you choose your division, as opposed to,
say, corporate finance?
I was attracted to the everyday excitement and challenge of the
market and the fact that no two days are the same. Decisions
must often be made in a matter of seconds but you still always
have to be mindful of how they will affect your relations with
clients and brokers in the long run.
What kind of person do you need to be to excel in this role?
You need to be able to think rationally and perform well under
pressure. You must also be able to process and analyse
information quickly and be confident enough to make fast
decisions based on this analysis. Numeric skills and an
understanding of the economy as a whole are also important.
Profile
Andreas Ohlsson
Analyst, rates trading
Bank of America
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Andreas’ tips:
Plan your trades and be disciplined. When
important data is released, it can get hectic
and, if you do not have a well thought
through plan, mistakes can easily be made.
Never allow yourself to get emotional about
a trade. Always base your decisions solely
on rational risk/reward calculations.
Learn about the markets. Make sure you
follow current developments and read
business newspapers.
www.efinancialcareers.co.uk/students
Get the latest on internships & grad programmes
Continued from pg. 32
Employers IT in Finance Accounting in the City Banking & Financial Markets
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In the world of finance, FX (or foreign exchange)
is a hugely important, highly charged area. It is
all about predicting the likelihood of one currency
falling (depreciating) or rising (appreciating) against
another. If a depreciation is deemed likely, the bank
will advise its clients to sell and will itself sell that
currency and buy one that’s appreciating. To
complicate, many products traded on the foreign
exchange markets are not actual currencies, but
bets on the future direction of foreign exchange
price movements, or so-called futures.
Trends
If you work in the world of foreign exchange, the big
news for some years has been the dollar – when,
and by how much, will it decline? But not everyone
is pessimistic – there’s a school of thought that the
US economy is so productive and innovative that
its currency may have become undervalued.
The other big news is carry trades. These occur when
investors borrow money in currencies with low interest
rates (e.g. the Japanese yen) and invest in currencies
with higher interest rates (e.g. sterling). Because yen are
sold on the open market during these trades, it’s argued
that the value of the yen has been kept artificially low.
Key players
If US banks dominate M&A activity, European banks rule
the foreign exchange trading roost. In 2006 all but one of
the five top players (Citi) originated in Europe.
Roles and career paths
Roles in foreign exchange are similar to those in sales,
trading and research, except that you will be trading
currencies and their derivatives. FX trading jobs are
usually split between ‘vanilla’ trading, where products
are simple and trades are easy to execute, and more
complex ‘exotic’ derivatives trading. As in other product
areas, sales jobs in FX are usually divided between
different client types, with some sales people specialising
in hedge funds, while others may only sell to companies.
FX researchers produce reports that are used by sales
people to keep clients informed of what’s happening in
the FX markets. FX structurers assemble complex exotic
derivative products for clients.
Pay
Top foreign exchange traders can make a packet
– particularly if they work with derivative products.
According to headhunter Napier Scott, managing
directors trading exotic foreign exchange options can
make more than £1m. But you won’t make as much
as this if you work with vanilla products, where the
maximum is a mere £700k.
Skills
“Successful foreign exchange professionals need to
thrive on action, markets and informed risk-taking,” says
Vincent DeLorenzo, EMEA head of FX at Bank of America.
“You should be comfortable with probability concepts
and be able to analyse macroeconomic data and events
accurately and quickly,” he adds.
A highly maths-focused degree, particularly pure maths,
is a must, whether at undergraduate or postgraduate
level, agrees Simon Head, executive director of Akamai
Financial Markets. “You need to be able to see numbers
and be very hot on numerical analysis. But at the same
you need to be a very confident, polished and articulate
sales person,” he says.
1 Deutsche Bank 19.3
2 UBS 14.9
3 Citi 9
4 Royal Bank of Scotland 8.9
5 Barclays Capital 8.8
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Top FX houses by % market share 2007
Ranking Market share (%)
Foreign exchange
At a glance
FX professionals make a living
out of changes in currency prices
Underlying factors suggest
the dollar is on the way down
European banks
dominate FX trading
A career for world news junkies
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“You should be comfortable with
probability concepts and be able to
analyse macroeconomic data and
events accurately and quickly”
Vincent DeLorenzo, Bank of America
Managing director 125 900
Executive director 120 650
Director 110 400
Associate director 90 180
Associate 65 65
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FX exotic options trader – London (top-tier bank)
Title Base pay (£k) Bonus (£k)
European I nvestment Bank • European I nvestment Bank • European I nvestment Bank • European I nvestment Bank • European I nvestment Bank
Financing
Europe’s future
Profiles sought:
LENDING/CREDIT SPECIALIST
To identify lending opportunities in line with set priorities (for lending operations in
and outside the E.U.) lead, assess, structure and execute transactions; analyse private
and/or public borrower’s performance, financial position, prospects and investment
decisions; draft financial reports and recommendations; and follow up key clients/
borrowers.
University post-graduate degree in Finance/Economics; 3 years’ relevant professional
experience within the banking industry (notably in credit risk analysis and documenta-
tion), preferably with international and/or developing countries exposure.
SECTOR ECONOMIST/ENGINEER
To assess the technical, environmental, economic and financial viability of capital
investment projects and programmes; prepare sector studies (i.e. Transport: rail/road/
urban/water, Energy, Environment, Industry, or Human Capital) and contribute to the
Bank’s strategy; assist in identifying and developing new investment opportunities.
Advanced academic qualifications in Engineering/Economics; minimum of 5 years’
professional experience covering the feasibility, design, development and supervision
phases of projects. Experience with the preparation of environmental impact studies
is also desirable; international exposure including developing countries.
CREDIT RISK OFFICER
To provide independent credit opinions on proposed operations and follow the
credit quality of a highly diversified corporate and public portfolio in accordance
with the Bank’s Credit Risk Policy Guidelines (CRPG). Contribute to the development
and implementation of CRPGs procedures to ensure that risks assumed by the Bank
are in line with approved policies.
University degree, preferably in Finance or Business related fields at post-graduate
level, if possible. Minimum of 5 years’ recognised professional experience in banking,
particularly in a credit function. Proficiency in analysing the credit risk of corporate
and public entities. Experience with credit risk assessment methodologies and rating
agency criteria. Knowledge of risk-pricing techniques would be an advantage.
100, Bvd Konrad Adenauer L-2950 Luxembourg
3(+352) 43 79 1 – 5(+352) 43 77 04
www.eib.org – Uinfo@eib.org
The European Investment Bank (EIB), the
European Union’s financial institution, based
in Luxembourg offers the opportunity to work
for Europe in a truly international environ-
ment. The Bank’s mission and the diversity of
cultures, languages and professional back-
grounds of its staff make it a dynamic and
exciting place to work.
The EIB is seeking to recruit talented, well-
qualified professionals, with excellent knowl-
edge of English and/or French and knowledge
of other European languages.
For further details or to apply, please go to
www.eib.org/about/jobs and click on the relevant
reference number.
The EIB offers attractive terms of employment and
remuneration with a wide range of benefits and is
an Equal Opportunity Employer.
All current vacancies can be found on our website
www.eib.org/about/jobs.
Corporate banking, as its name suggests, is the
broad term given to the different banking services that
corporate institutions need in order to function. Also
known as business or commercial banking, it spans
the relatively simple business of issuing loans, to more
complex matters such as helping to minimise tax paid
by overseas subsidiaries or managing changes in
foreign exchange rates.
Corporate bankers might also arrange an international
payment or put together ‘trade finance’ packages to
ensure a company is paid by its foreign customers.
In many cases, there’s an overlap between corporate
banking and capital markets. Bankers working in capital
markets help companies raise money by issuing equities
or debt. Corporate bankers typically help clients raise
money through loans, but they will bring in their capital
markets colleagues if necessary. Increasingly, corporate
banking requires an understanding of some of the more
complex financing methods.
Trends
2006 was a good year for corporate bankers. Low interest
rates and low default rates conspired with corporate
acquisitions and leveraged buyouts to drive companies’
demand for loans to record levels. In December 2006, the
global value of syndicated loans (loans which are made
by a group of banks rather than just one) rose to a record
£1,690bn – up 8% on the year before. Loans to finance
infrastructure projects, such as bridge and road building,
rose particularly rapidly.
The infrastructure boom continued in 2007, with Barclays
Capital, Dresdner Kleinwort, HSBC and RBC Capital
Markets clubbing together to issue a £4bn loan to back
the takeover by Macquarie of German power utility RWE.
As the volume of corporate loans has grown, questions
have been raised about the likelihood of defaults on
repayments. At the time of writing, this has yet to happen.
But there are indications that the market expects an
increase in defaults soon – the market for ‘loan credit
default swaps’, which allow investors to trade the risk
of a loan defaulting, is growing fast.
Key players
When it comes to assets, Barclays is by far the biggest
force in Europe, with over €1.5 trillion behind it. And
Barclays may be about to become bigger – in April 2007
it launched a takeover bid for ABN AMRO of Holland,
which if successful (and not gatecrashed by Royal Bank
of Scotland) will see its assets swell to nearly €2.5 trillion.
Roles and career paths
If you opt for a career in corporate banking, you may
well start as a credit analyst, or selling products to
corporate customers. Credit analysts look at companies’
balance sheets and work out whether to issue loans
to them. It’s not always seen as the most exciting role,
but it gives you the tools of the trade and is a crucial
barrier to help stop the bank losing money.
From there, you could, for instance, progress to being
a relationship manager, lending money to a handful of the
bank’s customers. This is where things get interesting:
as you progress, you’ll decide whether to lend to
customer X or customer Y. It requires an intimate
understanding of the company’s strategy and a keen
appreciation of the risks of default. Most relationship
managers are winers and diners: they spend a lot of
time meeting company FDs and CEOs in an effort to
win and keep their business.
If you don’t fancy the relationship management side of
corporate banking, you could always go into risk/credit,
product, operations or treasury management. Corporate
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Corporate banking
At a glance
Corporate banks provide banking
services to large and SME firms
Barclays is the biggest
corporate bank in Europe
Loans made to European
companies have been rising fast
Banking to the big boys
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“Candidates will need to be numerate
and analytical, be able to develop
trusted relationships and have strong
customer outlook”
Hannah Field, Barclays Group
>
Barclays 1,478
BNP Paribas 1,439
HSBC 1,409
Royal Bank of Scotland 1,293
Crédit Agricole 1,260
Deutsche Bank 1,123
ABN AMRO 984
Société Générale 956
HBOS 877
Banco Santander 800
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Top European banks by assets
Name Total assets (€bn)
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0ur graduate developuent prograuue offers opportunities across Europe, North Auerica and Asia Facihc.
Wherever you join us you'll appreciate a culture that values your work/life balance as uuch as your skills.
A place where you'll enjoy the scope to think innovatively, take early responsibility and tackle a variety of
couplex challenges.
For the answer, as well as details of our global graduate developuent prograuue, go to
WWWGRADUATEABNAMROCOM
0lobal graduate opportunities in corporate and investuent banking
At AßN AMF0 we look for
people who can think laterally
and act decisively to develop
effective solutions for our
clients. This brainteaser
will get you thinking.
Two Auerican racing drivers
were rivals to becoue CE0
of a uajor car hru owned by
a businessuan in Chicago.
The businessuan didn't like
either uan, so caue up with
a plan - a race to decide
who'd take over the hru.
ßoth uen had to drive frou
New York to Chicago, and the
one whose car arrived last in
Chicago would becoue CE0.
The racers realised this could
take a long tiue, so they went
to a wise uan and explained
the situation. The wise uan
spoke four words and the two
drivers left his ofhce prepared
to race. What did the wise
uan say7
Creative, flexible and always open to fresh thinking, BNP Paribas
is a global investment bank that likes to do things its own way. That's why
we give our graduates so much responsibility so early on. We want to hear
what our future leaders have to say sooner rather than later, so you'll be
doing a real job and making genuine commercial decisions from the outset.
You'll also be encouraged to draw inspiration from colleagues across the
business as you share your ideas and work in a team to generate new ones.
And with a training plan that's bespoke to you, you'll have a true say in
how you progress.
To learn more about a career with an investment bank that's not like all
the rest, go to www.graduates.bnpparibas.co.uk
It’s not business as usual
It’s for putting your ideas on
Not getting your feet under
The bank for a changing world
banks also have an array of operational positions,
including IT and HR. Various banks, including Barclays,
Lloyds TSB, Royal Bank of Scotland and HSBC, offer
training in corporate banking.
Pay
If you become a corporate banker you may not become
as impressively rich as an investment banker or trader,
but you’ll still do ‘quite well’ and have a life! According
to recruitment firm Morgan McKinley, senior relationship
managers earned a maximum of around £130k in 2007.
Skills
Corporate bankers need to be friendly types with a
cool and calculating streak – it’s no good befriending
clients and lending them money if they can’t pay it back.
Equally, it’s no good being an expert at analysing the
risk of clients defaulting if you can’t also build client
relationships, unless you want to remain a credit analyst,
of course. As a result, banks tend to have relatively
generic requirements of their corporate banking trainees.
“Regardless of the area, candidates will need to be
numerate and analytical, be able to develop trusted
relationships and have strong customer outlook. Only
after you have spent some time with us can you make
an informed decision about which area is most suited to
you,” says Hannah Field, head of graduate recruitment
and development at Barclays.
But you must research well, she advises: “It doesn’t
matter if you don’t have an economics degree, but
candidates need to make sure they have opinions
about the financial services and corporate banking
sector before coming to interview.”
Stephen Smith, HR director at Lloyds TSB Wholesale
and International Banking, adds: “Our senior executives
look for the golden combination of exceptional academics,
with maths, science and analytical capability being an
absolute must, coupled with the ability to build strong,
long-lasting client relationships.”
Hugh joined the Royal Bank of Scotland as a graduate trainee
in 1981 and moved into the corporate banking division. Since
then, he has covered shipping clients, healthcare clients and
professional services firms, as well as charities and local
government. Hugh originally graduated in English Literature
and Language from Liverpool University but also has an MBA
from Warwick University plus an ACIB (Associateship of the
Chartered Institute of Bankers) award.
Why corporate banking?
You get to meet the decision-makers and owners of large
companies and to discuss the strategic drivers of the business.
We deal with companies with a turnover of £20m to £1bn.
What does managing the charities team involve?
I lead a team of nine relationship managers who work with
charities and local government. Our role is not just about helping
our clients to borrow money; we also aim to make them more
efficient in terms of the way they manage their money and receive
payments. For example, we provided all the credit card payment
services for the Comic Relief Red Nose Day. There were around
a million transactions to process.
Does charity work differ from normal corporate banking?
It’s a bit different because they don’t operate in the commercial
sector – charities are governed by boards of trustees, which
adds a layer of complexity when you’re working out how much
they can afford to borrow. Local authorities have their borrowing
limits regulated under a separate act of Parliament. But charities
and local government clients still expect fast decisions and
excellent service when they want to borrow.
The best and worst aspects of corporate banking life?
The best thing is seeing people’s businesses succeed and feeling
you’ve contributed to making it happen over a period of time.
The worst is finding that clients have got into difficulties through
a change of circumstances that’s often beyond their control.
What about the legendary long lunches?
Talking to people, understanding how they operate and what’s
important to them is vital. It often helps to do that in a relaxed
atmosphere, so lunches are involved. But if you’re going into
the real detail of a company’s finances and projections of their
business, this is not best achieved over food!
Profile
Hugh Biddell
Manager
Charities and local government team, RBS
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Credit analyst 30-40 35-50 40-80
Bonus 0-40 0-60 0-70
Relationship manager n/a 40-55 55-80
Bonus n/a 0-60 0-70
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Title Junior Intermediate Senior
Continued from pg. 38
Hugh’s tips:
Enjoy what you are doing, because if
you don’t, you won’t perform well.
Be positive.
Go the extra mile – don’t just provide the
solution you’ve been asked for, but look at
what the business wants to achieve overall.
www.efinancialcareers.co.uk/students
Take our online numerical tests
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Fund managers invest money on behalf of their clients
– which include pension funds, institutional investors,
insurance companies, unit trusts and others – with a
view to making it grow. There are two basic kinds of
fund: Passive funds: also called ‘index trackers’. Fund
managers select a portfolio of assets whose value will
track that of a financial index. A fund that tracks the
FTSE 100 index, for example, will aim to follow the value
of the UK’s 100 biggest companies. The investment
decisions of passive funds are typically made using
computers, meaning fund managers working on them
have a relatively easy life.
Active funds: active fund managers buy and sell
financial products in an attempt to outperform the rest
of the market. Active fund managers are what most
people’s ideas of what fund management is: they invest
in products they hope will rise in price, to sell at a profit.
Fund managers invest in everything from shares, bonds
or real estate to commodities such as oil, wheat or
aluminium. Some funds offer fast growth and high
risks; others offer slower growth and smaller risks.
Trends
2006 was a good year for Europe’s money managers;
strong markets saw assets under management rise
for the third year running.
Headline figures alone disguise the fact that the market
is evolving, however. Scratch the surface, and the asset
management market starts to look very different to
the way it did only a few years ago.
One of the biggest issues has been a shift out of
traditional investment houses into more specialist
funds, such as hedge funds, quantitative funds and
emerging markets funds. Between 2003 and 2005,
research by the European Social Investment Forum
(SIF) found that investment in socially responsible
funds increased by 36% to £706bn. Bond funds,
however, look set to have a tough time in 2007 as
rising interest rates and inflation help depress bond
prices, creating a danger that bond investors will
lose money. However, uncertainty surrounding the US
economy means equities may also be on the way down.
Key players
Europe’s top fund managers include Swiss-based UBS,
the UK’s BGI and Allianz of Germany. Some big US fund
managers, such as Fidelity Investments or State Street
Global, are also active in Europe.
Roles and career paths
Working as a fund manager used to involve everything
from analysing and investing in products to persuading
new clients to put money into the fund. Today, however,
fund managers focus on managing money, while other
people are employed to do the rest.
If you don’t fancy being a fund manager, you could work
as a marketer, research analyst or operations expert.
Fund management marketers wine and dine potential
clients; they also manage relationships with existing
clients, meet investment consultants and play a role in
developing new products.
Analysts working in fund management help steer fund
managers in the right direction when it comes to
choosing assets to invest in. They scrutinise companies’
results and meet with management to discuss strategy.
They then write lengthy reports detailing their conclusions.
Operations staff working for fund managers do everything
from working in IT to settling and reporting trades, project
management and customer services. However, many
funds have outsourced the administrative aspects of
their operations to global custodians.
UBS AG 2,016
Barclays Global Investors 1,513
Allianz Group 1,493
State Street Global 1,441
Fidelity Investments 1,422
AXA Group 1,260
Capital Group 1,166
Credit Suisse 1,128
Deutsche Bank AG 1,027
Vanguard Group 958
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Institution Assets under management ($bn)
Fund management
At a glance
Fund managers invest money
for institutional and retail clients
Specialist funds are
becoming more popular
Pay can reach £140k plus bonus
for senior fund managers
A game of patience, profits and pension funds
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“Fund management is more
about qualitative than quantitative
research, making it good for
graduates with any sort of degree”
Richard Barry, Baillie Gifford
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Fideliry is on equol opporruniries employer ond is commirred ro o policy ol rreoring oll irs employees ond |o6 oppliconrs equolly.
Pay
Traditional fund managers don’t make quite as much
as traders working in investment banks, but they
don’t do too badly either. Hedge fund managers can
make considerably more than anyone else – but
they’re a special case.
Fund manager pay is rising. Research by recruitment
firm Morgan McKinley suggests top performers in the
sector can now earn salaries of £140k, plus a bonus
which can be several times higher, depending upon
their performance over several years.
Skills
The attributes required for a career in fund management
vary according to the role. Laura Everingham, graduate
recruitment manager at Fidelity International, says:
“Researchers will need an enquiring mind, an avid interest
in the stock market and a passion for finding out what
makes a good or bad investment.”
Richard Barry, HR manager at fund management firm
Baillie Gifford, agrees: “Fund management is very different
to investment banking; it is more about qualitative rather
than quantitative research, making it good for graduates
with any sort of degree,” he says.
“We look for lateral thinkers and people who are naturally
inquisitive. We want really bright people who are going
to come up with winning ideas that will work, although
you do still have to have some numeracy skills and have
a good academic record.”
Fund managers need to be able to assimilate large
quantities of information and then identify the key points
to make investment decisions, stresses Shane Kelly,
head of international graduate recruitment at fund
management firm BlackRock, formerly Merrill Lynch
Investment Managers: “In asset management we
generally look for potential – passion, ambition and
enthusiasm for our business – rather than specific traits.
But good quantitative, numeric and communication
skills are a must.”
Anna joined Baillie Gifford in September 2002 after a summer
internship the year before. After spending time on rotation in
emerging markets and the European team, she now works in
the UK small equities team as an investment manager based
in Edinburgh. Anna read chemistry at Cambridge.
What made you choose a career in fund management?
The internship was the thing that did it for me. In those eight weeks
I got to see so many different parts of the firm and integrated into
the life here. I also like the fact you get to make decisions. You
are not just a hamster on a wheel, you feel you are actually doing
something meaningful for the client’s funds.
Can you describe a typical day?
I get in between 8:00am and 8:30am and check the company
news – I am responsible for all the companies in several different
sectors. I will probably then have meetings either directly with
a company’s senior management to get a feel for the long-term
strategy of the business, or with sell-side analysts. While at my
desk, I’ve always got a report on the go on a company, either
to recommend buying shares for our clients, or to sell if the
investment case has changed. There may also be meetings
to discuss reports on stocks covered by others in the team. At
4:30pm we have a daily meeting where you report to the rest of the
team on any movements in your sector. I tend to leave around 6pm.
What are the best and worst elements of your job?
The best is getting exposure to so many different companies
and people. I enjoy finding out what makes companies tick.
There isn’t really a worst element, although one thing that separates
us from others in the financial world is that everything we do is fairly
long term – investors are typically looking at three to five years.
This means you don’t instantly know if a decision you have made
is the correct one or not. It has a longer burn to it.
What do you think makes a good fund manager?
You have to have the conviction of your beliefs once you have
made a decision. You have to be able to assimilate a lot of
information and reach a coherent conclusion. You must have
the ability to defend your ideas, but also be prepared to
accept if you are wrong.
Profile
Anna Sloan
Investment manager
Baillie Gifford
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Fund manager 38-45 42-85 60-140
Research analyst 30-45 38-80 60-120
Marketing exec 28-34 30-60 50-80
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Title Junior Intermediate Senior
Continued from pg. 42
Anna’s tips:
Have an inquisitive mind. You need to
have a genuine interest in the markets
and the strategies of companies.
Try to do an internship; it is invaluable
in gaining experience.
Research the job thoroughly and don’t be
afraid to ask lots of questions.
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Hedge fund managers are the maverick outsiders of
the financial services world. Most are highly successful
former traders or fund managers who have decided to
go it alone. The name ‘hedge fund’ comes from the idea
that money managers can hedge their bets to ensure
they make money – whether the market goes up or down.
What distinguishes a hedge fund from a traditional
fund is its willingness to push the boundaries of normal
investment techniques to achieve unusually high returns.
Most hedge funds follow a particular investment strategy.
The most popular strategies are:
• Short selling: a short seller borrows stocks that
they believe are overvalued and sells them on.
When the price (hopefully) falls, they buy the stocks
back at a lower price and return them to the lender;
• Global macro: global macro funds operate a
strategy similar to that used by short sellers. But
they focus on global trends rather than movements
in particular stocks;
• Event driven: event-driven funds try to profit from
one-off events, such as mergers and acquisitions
or bankruptcies. For example, if one company decides
to buy another, it will usually to pay more than the
current market price for the shares.
Trends
If you want to work in a hedge fund, London – or more
particularly, Mayfair – is increasingly the place to be.
According to the Financial Times, hedge fund assets
are growing at a rate of 63% annually in the UK, and just
13% annually in the US. At the same time, London now
plays host to 12 of the largest hedge funds in the world,
up from just three in 2002, while New York has seen its
share of the biggest funds dwindle from 28 to 18.
Wherever they are based, hedge funds are exempt
from normal financial services regulation, partly
because the minimum investment is high (typically
$1m) and regulators believe the rich do not need
the same protection as investors of average means.
Figures from Hedge Fund Research suggest investors
put a monumental $127bn (€98bn) into hedge funds
in 2006, almost three times more than in 2005.
However, even big funds can come unstuck very quickly.
Vega Asset Management, formerly one of Europe’s larger
funds, saw its assets under management plummet from
$10.1bn in 2004 to $2.7bn in 2006, for example.
As more and more hedge funds pile into the market,
it’s becoming harder for established funds to make
good returns. As a result, funds are investing in ever
more obscure areas – such as art, wine and Hollywood
films. Some funds have also begun to behave like
banks and lend money directly to clients .
Key players
Who are some of the biggest boys in the European
hedge fund universe? Look no further than the likes
of Brevan Howard, with a total of $12.1bn under
management; Cheyne Capital with $11.2bn under
management; or BlueBay Asset Management, with
$9.6bn under management. But while the big hedge
funds get all the headlines, there are also plenty of
small funds. In 2006, $100bn of London’s hedge fund
assets were managed by firms with less than $1bn under
management, according to HedgeFund Intelligence.
Roles and career paths
Jobs in hedge funds tend to fall into four categories:
• Analysis – analysing the companies, markets
and financial products a hedge fund invests in;
• Sales and marketing – liaising with investors
and helping sell the merits of the fund;
• Trading – executing the investment strategy and
buying and selling financial products according
to analysts’ recommendations;
• Risk management and back office – settling trades,
working out a hedge fund’s risk exposure and making
sure everything flows smoothly. In many small funds
this is outsourced to ‘prime brokerage’ divisions in
investment banks.
Most roles are distinct: if you join as a risk manager the
chances of graduating to become an analyst are slim.
However, it’s not unknown for analysts to become traders.
The bad news is that, as a new graduate, you will be lucky
Hedge funds
At a glance
Working for a hedge fund
could make you very rich
Few hedge funds employ
university leavers
After several years of growth
the sector may yet implode
High risks and high rewards for the lucky few
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“It’s not necessary to have done an
MSc or a PhD in a mathematical
subject, but we would generally
expect some maths at degree level”
Dermot Coleman, Sisu Capital
>
When you’re dealing
with $1.8
trillion
We base our actions on rigorous analysis of data and
the expertise of our people. There’s no ‘secret sauce’ at
Barclays Global Investors – just a scientifically informed,
consistent and rational approach to managing the largest
collection of assets in the world
*
. It’s a friendly, supportive
and balanced workplace, with world-class graduate
and internship programmes. A career in the science of
investment could be waiting for you. Find out more at
www.bgigraduatecareers.com
*Source: Global Investor, 31.12.06
Barclays Global Investors is authorised and regulated by the Financial Services Authority.
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to walk into a hedge fund. Most are small organisations
without the time or resources to train graduates
themselves. Instead, they prefer to recruit people
with a few years’ experience from investment banks.
Pay
According to a survey by US-based Alpha Magazine,
the 25 highest-earning hedge fund managers earned
an average of $570m in 2006, up 36% on 2005. More
to the point, the top three hedge fund managers each
took home more than $1bn.
Not everyone earns such sums. A salary survey by
Morgan McKinley suggests a lowly junior fund manager
can expect a salary of £38k to £45k, plus an unspecified
bonus. Hedge fund traders earn the most – after a few
years, salaries are £80k plus and bonuses are unlimited.
Skills
“For bright, numerate graduates who are strong at
financial analysis and spreadsheets, and who have
honed their skills in an investment bank, the leap can
be made,” says David Howell, managing director of
E-M Financial Services. “But you do have to have proved
yourself in the investment bank community. If you go to
one of the top-tier banks you can use it as a springboard
to any number of different options, normally in around
two years,” he says. Hedge funds like people who are
communicative, innovative and numerate and have a
good academic record from a leading university, says
John Capaldi, a managing director and head of product
development at Financial Risk Management.
“Financial markets and hedge funds are dynamic, so
adaptability and creativity are key attributes,” he adds.
Dermot Coleman, a partner at event-driven hedge fund
Sisu Capital, says quantitative skills tend to be paramount.
“To work for us, it’s not necessary to have done an MSc or
a PhD in a mathematical subject, but we would generally
expect some maths at degree level. That could come as
much from engineering as economics.”
As an equity analyst, most of David’s day is taken up generating
investment ideas for trades. This involves researching companies
about to engage in mergers and acquisitions or restructuring
activity and coming up with suggestions on stocks that might
rise ahead of a merger. It also involves having discussions with
company management, bankers and fellow analysts. David has
a BA in economics from Cambridge and an MSc in economics
from the London School of Economics.
How did you come to work for a hedge fund?
I took an unusual route into the hedge fund industry.
After taking my MSc in economics at LSE, Sisu was looking
for a junior analyst, so I applied and got lucky. Most funds
recruit analysts with several years’ experience in an investment
bank or somewhere similar.
Why the hedge fund sector?
A booming M&A environment and strong equity markets have
allowed exceptional returns for many alternative investment
strategies. As a result, the hedge fund sector is continuing to
receive large capital in-flows, and the importance and influence of
hedge funds continues to increase. There are now more jobs and
more opportunities to become involved than ever before.
You also have more independence than in an investment bank.
Here, you are involved in everything from day one. There’s more
freedom in terms of the products you can invest in and the
positions you can take. And it’s a much flatter hierarchy:
there are 25 people in this office and I sit next to two partners.
What’s the most exciting thing you’ve got coming up?
Currently, I am active in a number of large and involved
M&A situations, which are always very exciting.
And the least?
That would probably be number-crunching company
accounts to create comparable company valuations.
What’s been the hardest part for you so far?
I’d studied plenty of economics, but not much pure finance
or accounting. It was a bit of a struggle to start with: I spent
the first month working all hours of the day.
Profile
David Mills
Equity analyst
Sisu Capital
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Fund manager 38-45 42-75 65-120
Research analyst 30-45 38-70 60-120
Marketing executive 28-34 30-42 50-65
Hedge fund trader n/a 45-60 60-80
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Hedge fund ex-bonus salaries (£k)
Title Junior Intermediate Senior
Continued from pg. 46
David’s tips:
Get an understanding of what diff erent
hedge funds do, not just the generalisations
written about the industry in the press.
Study hard. It’s competitive, and a
postgraduate qualifi cation or relevant
work experience will help you stand out.
T ink about joining an investment bank
– they have well-structured graduate
programmes and act as a feeder into the
more specialist hedge fund sector.
www.efinancialcareers.co.uk/students
Get ahead: start your job hunt early
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Private equity and venture funds exist to help raise money
for companies by offering cash in return for an ownership
stake. As a result, they become co-owners or even sole
owners of the companies in which they invest.
In an ideal situation, they invest in an underperforming
company, turn it around and sell their stake at a profit
some years later. However, they also occasionally engage
in the unpopular practice of asset stripping, or breaking a
company up and selling its assets to make a profit.
The money invested by private equity funds is frequently
used for management buy-outs (MBOs) where a
company, or a division of a company, is bought
by its managers. Alternatively, it may be used for a
management buy-in (MBI), where managers from outside
take over a company.
‘Venture capital’ and ‘private equity’ are often used
interchangeably. But, strictly speaking, venture capital
refers to the provision of funds for new and fast-
developing businesses, while private equity is more
usually associated with MBOs and MBIs.
Trends
Private equity is big business. Research by the magazine
Private Equity International suggests the industry globally
has raised $551bn in capital over the past five years
– with the biggest funds such as Carlyle Group, Kohlberg
Kravis Roberts (KKR) and Goldman Sachs Principal
Investments each raising more than $30bn each.
And it’s getting even bigger. 2005 was out-gunned by
2006, as the value of all European private equity deals
rose another 40% to €178bn, according to data provider
Initiative Europe.
At the same time, deals are getting bigger and funds are
getting larger. In 2006, the value of the average European
buyout was €136m, up from €117m in 2005. And in April
2007, Goldman Sachs Principal Investments revealed it
had raised the largest buyout fund ever – $20bn.
The good times look set to continue, with private equity
participating in some headline deals in 2007, such as
US giant KKR’s $450m investment in the Boots chain.
However, success brought some unwanted attention,
with bosses heavily criticised in the UK for paying too
little tax and for taking a short-term approach to their
investments in order to enrich themselves.
The credit crunch has also created uncertainty for the
private equity industry, with many banks unable to sell on
the loans they made to clients to help finance deals.
Key players
Major US funds such as Carlyle, KKR, Goldman Sachs
Principal Investments (part of the bank) and Blackstone
increasingly dominate the private equity industry in
Europe. However, funds with European roots such
as Apax Partners and Permira also made it onto the
top ten in 2006.
Roles and career paths
People who work in private equity benefit from the kind
of job security most investment bankers can only dream
of. But don’t count on finding a job easily – the industry
hires very few juniors and none straight from university.
There are two main entry points to private equity or
venture capital. First, two to three years after university,
having spent time in strategy consulting, investment
banking (in other words M&A or leveraged finance),
or accountancy (deal-based disciplines only).
Second, within two to three years of graduating with
an MBA and having spent time in one of the industries
mentioned above.
Occasionally there is a later entry point, when a fund
needs a senior expert, for example an experienced
industrialist to help shape the portfolio companies,
or a specialist leveraged financier to help structure
the best debt packages at the investment stage.
Kohlberg Kravis Roberts 25,027
The Blackstone Group 19,159
Alpinvest 14,510
Apax Partners 11,907
Permira Advisers 11,721
Providence Equity Partners 11,117
Carlyle Group 8,697
Hellman & Friedman 7,329
Goldman Sachs Capital Partners 5,966
Thomas Lee Partners 5,950
Top 10 investors in European private equity deals, 2006
Investor Value (£m)
Private equity
At a glance
Private equity funds buy stakes
in companies to sell for a profit
Few take students straight
from university
Partners make millions,
but only when funds close
A sector to aspire to after a few years’ experience
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“Raw graduates don’t get into
private equity – almost never”
Guy Townsend, Walker Hamill
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Venture capital funds typically hire people from high-
tech industries, finance-related or consulting jobs.
Entry-level staff are typically number crunchers who
scrutinise the accounts of companies in which a fund
is thinking of investing.
On the next rung are principals, who appraise whether
a deal is worth pursuing and, if it is, do anything from
arranging legal documentation to negotiating the
right price. Originators are usually a fund’s partners
who find new companies to invest in. They oversee
the deals and make the most money if an investment
is sold at a profit.
Pay
Private equity is a long game, but very lucrative.
The most senior people make most of their money
out of carried interest – or ‘carry’. This is equivalent
to around 25% of the profits above a specified rate
and can be very lucrative – particularly on very large
funds, where a handful of partners and principals
could easily share $200m every six years or so when
funds are closed. Pay at junior levels is, predictably,
less generous, but still not to be sniffed at. A junior
(analyst) can expect to make a salary of £45k to
£55k, plus a 40% to 80% bonus.
Skills
To work in private equity, you’ll need to be an academic
and professional wunderkind; ideally in the top 10%
to 15% of your peers. And don’t think you’ll be able
to walk-in fresh from graduation.
“Raw graduates don’t get into private equity, almost
never. After university you need to spend time in
accountancy, M&A, strategy consulting or leveraged
finance, probably around two to three years. Then
you can try to interview for private equity,” says
Walker Hamill’s Guy Townsend.
Private equity firms look for people who are highly
analytical, commercial, team players, confident,
outgoing – and a foreign language never goes amiss.
Most junior hires come from investment banking
or strategy consulting and former bankers need
experience in one of three areas: corporate finance and
mergers and acquisitions; financial sponsors (dealing
with private equity firms); or leveraged finance (funding
involving a higher proportion of debt than usual).
Simon has been with Candover, a private equity fund that has
invested more than €25bn in the past two decades, for three and
a half years. After graduating from Cambridge University with a
BA and MEng in manufacturing engineering, he joined a strategy
consultancy that advised private equity funds. After four and a
half years, he decided to apply to most leading funds directly,
and registered with specialist private equity executive search
companies. He got offers from two funds. Candover was the
obvious choice.
Why private equity?
I studied manufacturing engineering at Cambridge University,
and always believed that I had some entrepreneurial skills.
It made me wonder where I’d get money from if I ever had the
‘big idea’, which led me in a roundabout way to the private
equity sector. Private equity is basically venture capital scaled
up massively to a level where we can buy and sell 100% of a
company’s share capital with a view to growing the business.
What distinguished you from other candidates?
I think it would be a good track record with branded
consultancies, financial experience and qualifications (Securities
Institute diploma), decent Excel skills, a genuine interest to learn
new things and, hopefully, above-average interpersonal skills.
What have you worked on recently?
I completed two deals during 2006: UPC Norway, a triple-
play cable company based in Oslo (subsequently rebranded
to GET) for €450m; and EurotaxGlass’s for €485m.
I have a quasi-board role in both companies, and Candover
developed business plans for both businesses, which requires
structural and operational change over three years, resulting
in a close relationship with executive management.
I’ve also spent time on new deal origination, working on a
range of investment ideas including premium spirits,
sailing clothing, funeral homes and market research.
What’s the worst aspect of your job?
Tight timescales. Doing a deal is hugely rewarding, but you
have to be prepared to discard your personal life for a few weeks.
That’s never easy if you’re letting people down at the last minute.
Profile
Simon Holden
Investment manager
Candover
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Simon’s tips:
T ere are great jobs in private equity, but
you need to know what you’re applying
for and what diff erentiates the funds.
Your application needs to show that you’ve
got the requisite skills and knowledge,
as interviews are inevitably technical.
Learn where funds are in their investment
cycle, what sector(s) they do deals in and
what their recruitment requirements
might look like in the next few years.
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Investment consultants advise pension fund
trustees on what to do with their money. They help
trustees decide which mix of assets to invest in
and with which fund management firms. They try to
predict fund managers’ future performance from
how they performed in the past.
Trends
Driven by an ageing population and the need to
make good corporate pensions funds, demand for
investment consultants’ services is rising. Consultants’
appetite for staff is rising too – Watson Wyatt alone
increased headcount 40% between 2004 and 2006.
At the same time, however, investment consultants are
coming under pressure from investment banks, which
have set up their own lucrative pensions advisory units
– and are poaching consultants’ staff.
Key players
The European investment consulting market is
dominated by two key firms – Mercer and Watson
Wyatt, which together account for around 50% of the
market. Each is part of a larger network of consulting
groups, which advise on everything from staff benefits
to computer systems. Alongside these market leaders
are numerous smaller firms – Aon Consulting, Hymans
Robertson and Hewitt Associates, for example.
Roles and career paths
Jobs usually fall into one of two main categories:
1) Asset allocation: asset allocation specialists advise
clients on whether to invest in equities, bonds, private
equity funds or alternative asset classes. It is a complex
role using mathematical models to analyse such factors
as interest rate changes, as well as the timing of the
pension fund’s liabilities and the likely risks and returns.
2) Fund selection: fund selection specialists spend a lot
of time analysing fund managers and questioning their
investment strategy. Days are spent scrutinising
pension funds and reporting on their strengths and
weaknesses; most firms rank fund managers by
their likely future success. There are also roles for
relationship specialists, who are the true consultants
and are usually more senior.
Most large investment consultants take on a few
graduates: Mercer, Watson Wyatt and Aon offer
structured graduate programmes, with Watson Wyatt
hiring some 25 this year for its UK investment practice.
Once hired, you will typically study for a professional
qualification, either as an actuary or as a chartered
financial analyst (CFA). Actuaries work more on asset
allocation, while CFA candidates work in fund selection.
Pay
As investment banks compete for staff, investment
consultants are being forced to make their roles more
lucrative. In 2006, pay in the sector rose around 8%.
Average pay for student actuaries is now £30.5k.
Skills
“Being able to cope with studying and working
simultaneously is important, as is displaying evidence of
skills associated with consulting, such as communication,
project management and team working. However,
equally key is having a genuine interest in investment
markets and conditions,” says Jo Kleanthous of Mercer’s
graduate recruiting team.
“Effective communication of often complex concepts
and subjects in a simple and well-reasoned manner is
vital to being a successful consultant. Anyone regarding
investment consultants as quiet, dispassionate backroom
professionals is quite mistaken,” says Mark Powley,
a senior investment consultant at Aon Consulting.
Chief actuary 156
Senior function head 137
Function head 108
Department manager 89
Section manager 66
Section leader 56
Senior actuary 48
Actuary 43
Student actuary 31
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Job title Pay (£k)
Investment consulting
At a glance
Investment consultants help
pension funds invest money
Mercer and Watson
Wyatt dominate
It helps to be good at maths A kind of ‘Which? Guide to fund managers’
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“Anyone regarding investment
consultants as quiet, dispassionate
backroom professionals is
quite mistaken”
Mark Powley, Aon Consulting
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Global custodians once had large filing systems for
their core work – storing certificates of share ownership
for their clients. Today, these certificates are stored
electronically, making custody much less space-
intensive. Custodians levy a fee (typically up to 0.08%)
of the assets they’re managing.
Trends
Global custody is big business and is growing fast.
In 2006 the top ten custodians held over £36 trillion
in assets – up 40% on 2005. But the industry is
consolidating – for example, 2006 saw the merger
of Bank of New York and Mellon Global.
Custodians are also pushing into new areas, notably
servicing hedge funds. To save money, some have
shifted UK operations out of London to regional cities.
Key players
JPMorgan had the most global custody assets by
value in 2006. However, the top slot is now occupied
by the merged Bank of New York and Mellon.
Roles and career paths
Much of the work is administrative and repetitive,
but the role of custodian has widened to a range
of other services. These include income collection
(for example collecting dividends from clients’
investments), performance measurement
(calculating the returns clients’ investments have
made over time), trade support (ensuring trades
are settled properly) and proxy voting on behalf
of clients at shareholder meetings. Custodians
specialise in a particular area, so what you do
will depend on where you work. Custodians also
offer more client-focused and technical jobs.
Relationship managers, for example, work with
clients to reassure them that their assets are safely
maintained. Emily Ayre, a custody specialist at
recruitment firm Morgan McKinley, says graduates
typically move into these more interesting positions
after a few years and can be fast-tracked into
these roles. Few global custodians offer graduate
training programmes, so it’s worth sending in your
CV speculatively.
Pay
Global custodians are paid fairly modestly – six figures
are rare. But according to Morgan McKinley, pay for
some junior custody jobs has risen by around 20% in
recent years. A junior sales and business development
professional can expect a salary of £30k to £35k, plus
a small bonus. The best-paid people working in
custody are relationship managers and product
development specialists.
Skills
Emily Ayre at Morgan McKinley says people going
into areas such as settlements and corporate
actions may not need a degree: “They will, however,
need to be organised, process-driven and able to
work under pressure. Once people have gained a
grounding in settlements or corporate actions, they
will be equipped with the skills to allow a move to
other areas within operations or an internal move
within custody,” she adds. Scott Dickinson, global
relationship manager, BNP Paribas Securities Services,
says people going into relationship management
need two to five years’ operations or client services
experience in the financial sector.
“Candidates should be able to demonstrate strong
communication, planning and selling skills,” he adds.
JPMorgan 7,012
Bank of New York* 6,558
State Street** 6,003
Citi Global Transaction Services 5,246
HSBC Securities Services 2,306
Mellon Group*** 2,305
BNP Paribas Securities Services 2,251
Northern Trust 1,766
Société Générale Securities Services 1,501
Caceis Investor Services 1,178
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Top banks by global custody assets 2006
Bank £bn
Global custody
At a glance
Many jobs are admin-driven
compared to other areas
Relationship managers
earn the most
It can be easier to land
a job in this sector
Keeping the paperwork for other people’s assets
“Once people have a grounding in
settlements or corporate actions, they
will be equipped with the skills to
allow an internal move within custody”
Emily Ayre, Morgan McKinley
*Pre-Mellon merger **Pre-IFS merger ***Pre-Bank of New York merger
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As their name suggests, private wealth managers
help very rich people to manage their money. They
fall into two categories:
• Private bankers, who help clients invest their money
wisely and avoid any risks that might reduce the
value of their assets. They also offer tax and pensions
advice, help clients develop a strategy for charitable
giving and advise them on bequeathing their wealth.
• Private client brokers, who assist their clients to buy and
sell financial products, particularly equities or stocks.
They also advise on the best products to invest in.
Private banks typically look for clients with at least
$1m (£503k) to invest, but many deal only with clients
whose financial assets (so not their houses or yachts)
are worth more than $30m.
Trends
Private banking is a growth business. The number
of rich people in the world just keeps on growing:
at the last count in mid-2006, there were 2.8m ‘high
net worth’ individuals (people with more than £500k
in financial assets living in Europe), and their numbers
were rising at a rate of 5% per year.
Private banks have cashed in on customer demand.
A study by Scorpio Partership, a consultancy working
in the sector, found assets under management rose
18% in 2006, to over £4.3 trillion worldwide.
As the industry grows, its profile is changing. Whereas
in the past, private banks would turn their noses up at
anyone with less than £10m in liquid assets, they are
increasingly courting the £1m club and below. Kleinwort
Benson, for example, will open its doors to people with
a mere £500k to invest.
The new focus on the merely wealthy as opposed to the
mind-bogglingly rich is creating demand for a new breed
of private banker, and for plenty of them. “If you’re looking
after someone with £10m, you’ll still need to be a very
civilised cosmopolitan type who speaks 10 languages
and has great table manners,” says one recruiter.
“But if you’re looking after someone who has £500k,
you’ll just need to be affable.”
Key players
In strict private banking terms, Swiss companies such
as UBS and Credit Suisse are the world’s leading
bankers to the very rich. However, in broader ‘wealth
management’ terms, which includes private client
broking, the big US brokerage houses such as
Citi and Merrill Lynch are heavy hitters too.
Roles and career paths
If you work as a private banker, you can expect
to perform one of three broad categories of job:
investing money for existing clients, building
relationships or managing back-office functions.
People working on the investment side of private
banking either invest their clients’ money themselves
or offer their clients detailed advice to help them
invest their own money. They are typically product
specialists, who are expert in a particular asset class,
including fixed income, equity, structured products
of any kind or investments in the private equity and
hedge fund sectors.
People working on the relationship side are sales
people. This can involve a lot of travelling and close
contact with interesting, unusual and demanding
people. When a relationship private banker has
established a client’s needs, investment specialists
are brought in to put a more detailed solution together.
Banks such as Coutts (now part of Royal Bank of
Scotland), Goldman Sachs, HSBC and UBS all run
graduate schemes for private bankers. If you don’t
find a place on a graduate training scheme, then
it is possible to move into private banking with a
background in corporate finance or, more particularly,
1 UBS 1,319
2 Citi 1,310
3 Merrill Lynch 1,100
4 Credit Suisse 559
5 Morgan Stanley 374
6 HSBC 348
7 JPMorgan 313
8 Wachovia 309
9 Bank of America 228
10 Deutsche Bank 199
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Rank Bank Assets under management ($bn)
Wealth management
At a glance
Jobs are increasing as the
number of rich people rises
The Swiss banks, UBS and
Credit Suisse, lead the field
Senior wealth managers can
expect to make around £250k
Combining diplomacy with product knowledge
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“We want all-rounders... we look for
the Freddie Flintoffs of graduates”
Andrew Butler-Cassar, Williams de Broe
>
Think about who you are, about where you really want to go,
about what you want to do with your life.
You are about to choose a career.
Don’t do it lightly.
Take a long hard look at Rothschild:
Top-tier international
investment bank
Objective relationship-based
corporate adviser
Excellence in our chosen markets
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We are recruiting summer interns and full-time analysts to start in 2008. You will
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A strong academic track record is a must. Most importantly, we want individuals with
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Please direct all enquiries to The Cornell
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The Cornell Partnership is retained by
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Cornellpartnership
fund management. There are two types of private
client broker: those working on discretionary mandates,
in which wealthy clients state their general investment
strategy and the broker buys and sells the products
they think appropriate; and those working on advisory
mandates, in which the broker advises the client what
to invest in, but needs their permission before making
a move. Junior brokers are more likely to work on
advisory mandates. However, making the first move
can be challenging, with few brokerage firms offering
graduate training courses.
Pay
Like investment bankers, private bankers are paid a
combination of a base salary and a bonus – but not
quite as big. According to Morgan McKinley, salaries
for managers in private banking roles (typically with
around eight years’ experience) start at around £80k;
total pay is around three times that.
Skills
It’s no good going into private banking if you have a taste
for gossip or celebrity intrigue. Private bankers stress
discretion and an understanding of client confidentiality
as key attributes in this sector, argues Sam Anderson, HR
business partner, UK wealth management at RBS.
“You don’t necessarily need to have a finance-related
degree but a background in law or accountancy can
sometimes help. But you do need good relationship
management skills. We don’t just want people who are
product pushers, we look for people who can provide
unsurpassed client service,” she explains.
Languages are also increasingly sought after and
attention to detail and an understanding of companies
and what will make them successful also helps. “We want
all-rounders who are good at dealing with people at all
levels, from industry leaders to lottery winners. We look for
the Freddie Flintoffs of graduates,” says Andrew Butler-
Cassar, executive director at Williams de Broe.
As head of family business and philanthropy at Coutts & Co,
Mark advises private clients on matters such as managing
succession and effective giving to charity. He also runs various
education and networking events, and helps design new
products and services. Mark studied Arabic and Hebrew
at Exeter University.
What makes a great private banker?
Someone who can develop a trusted relationship with
clients. You need to be able to listen, empathise, ask the
right questions, anticipate issues and understand the
specific needs of the client to deliver the right solutions.
Is it all about lunching with rich clients in Monte Carlo?
Lunch is sometimes involved but Coutts has first class dining
rooms, so there’s no need to go all the way to Monte Carlo!
It’s all part of getting to know clients personally.
What does a typical week involve?
One minute I am helping a client to set-up a charitable
foundation; the next, considering different charitable
projects to support in India – and the next, I am making
a presentation at a charity conference on raising funds
from high net worth individuals.
At the same time, I might also be talking to a family business
owner about setting up a family council, appointing a non-
executive director or raising liquidity from the company and
resolving a family conflict.
When I am not doing all that, and in between running various
roundtable discussions on philanthropy and family business
matters, I am managing the Coutts Prize for Family Business
– the industry’s Oscars.
What’s the most interesting thing about your job?
Bringing private clients, professional advisers, social entrepen-
eurs and charities together to make the world a better place.
And which part could you life without?
Anything to do with administration and paperwork.
Profile
Mark Evans
Family business and philanthropy
Coutts & Co
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Junior n/a
Intermediate 45-60
Senior 55-100
Manager 80+
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Private banking salaries
Title Pay (£k)
Continued from pg. 54
Mark’s tips:
Surf as many private bank
websites as you can.
Try to get a summer internship at
a private bank.
T ink about whether you prefer managing
clients, designing products or dealing with
systems. If you want to be good at your job,
it is important you enjoy it.
www.efinancialcareers.co.uk/students
Click online to begin your finance future
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Go to any campus banking presentation and very quickly
you’ll come across the words ‘back office’ and ‘front
office’. When people talk about the back office, they’re
talking about operations. Unlike the traders, sales people,
capital markets and corporate financiers of the front
office, people working in operations don’t liaise with
customers to generate revenues and profits for the bank.
Instead, the division is a support function – operations
professionals support people in the front office to make
sure everything works smoothly and the bank gets paid.
The business of operations covers everything from
IT to human resources, accounting (finance) and risk
management. Its functions are so broad that operations
specialists typically specialise in only one of these areas.
At its centre is the core function of clearing and settling
trades. Clearing trades involves looking at the records
made by other banks’ traders when they buy and
sell shares or other financial products and checking
that they match the records kept by people from
whom or to whom the shares were bought or sold
(the counterparties). People who work in settlements
‘settle’ trades – or ensure that stocks or shares bought
and sold by the bank’s traders are exchanged for the
correct amount of money. ‘Settlements’ covers everything
from preparing the documentation required for a sale,
to making sure the bank has been paid for all the shares
it has sold and bought.
Trends
The operations division may not make money for
investment banks, but as a cost centre it certainly
has the potential to erode their profitability. Banks are
acutely aware of this and are doing their best to ensure
their back offices run as efficiently as possible.
This isn’t always good news for the people who work at
the lower-skilled end of the operational continuum. Roles
such as transaction processing are being shifted to low-
cost countries such as India. Goldman Sachs is said by
the Financial Times to employ 1,200 people in
Bangalore, for example, while in April 2007 Citi
announced plans to shift 9,500 roles to cheaper
locations such as India and Poland.
At the same time, however, there’s a need for more
strategically-oriented staff who can help automate
as many processes as possible. Where once trades
were settled with reams of paper, they are now settled
electronically through facilities such as Euroclear and
Clearsteam, which hold securities electronically and
transfer them from one owner to another.
In this context, one of the biggest challenges for
operations divisions is finding a way of automating
the settlement of complex derivatives trades, many
of which are still settled manually.
Key players
It’s harder to quantify ‘key players’ in operations than
in other sectors – all banks have operations divisions
and success isn’t just down to the number of people
who work in them and the number of trades they process.
However, research company Z/Yen does its best to rank
operations departments on the basis of client satisfaction
and core processing abilities. On these measures,
ABN AMRO and Morgan Stanley were the key players
for equities and fixed income respectively in 2006.
Roles and career paths
Electronic systems have vastly increased the speed
with which simple trades are processed. One example
was the introduction of electronic trading on the London
Stock Exchange in 1986, when it replaced floor trading
as part of a series of measures known as the ‘Big
Bang’ that made the City of London more competitive.
But derivative trades are often too complex to be
settled electronically and tasks are still done manually:
trades are often confirmed by fax, for example. The
large number of documents required for derivatives
transactions creates roles for documentation specialists.
Whether you work with derivatives or not, most operations
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1. ABN AMRO 1. Morgan Stanley
2. Liquidnet 2. ABN AMRO
3. UBS 3. JPMorgan
Overall operations performance 2006
Equities products Fixed income products
Operations
At a glance:
Operations staff work to ensure
transactions run smoothly
Pay for operations staff is lower
than for client-facing staff
Banks are offshoring some
operations roles to India
Te unsung heroes of investment banking
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“You have to be able to solve
problems but also be very client-
orientated. It is all about the quality
of the experience for the client”
Richard Moore, UBS
jobs also have a strategic element – banks use
operations staff to analyse ways of making processes
more efficient and project managers implement their
suggestions; the more senior you become, the more
likely is that you will be assigned to this kind of strategic
or project management role.
Pay
If you work in operations, you won’t get the gargantuan
bonuses of the front office. On the other hand, you’ll
probably leave before 8pm most nights.
According to recruitment firm Morgan McKinley,
the best-paid operations staff help settle the complex
derivative trades mentioned above. It says the average
salary for a senior trade support professional was
£60k to £90k in 2007, plus a 40% to 80% bonus.
Skills
Operations employees need to be attentive to detail,
have good organisational and time management skills
and be creative. Hiring has been buoyant in operations
during 2007 and there is strong demand for people
with the right skills and attitude, particularly business
analysts and project managers, says Martin Killeen,
manager of Morgan McKinley’s banking operations
division: “We have seen a continued increase in
demand for individuals to work within prime brokerage
as more banks take on new business and break into
this lucrative market,” he adds.
Operations is a pivotal role, says Richard Moore,
EMEA head of campus recruitment at UBS. “The trade
is only done when operations has validated, cleared
and executed it. There is a convergence of skills –
you have to be able to solve problems but also be
very client-orientated. It is all about the quality of the
experience for the client in that execution,” he says.
Operations people need to be able to demonstrate
they have good interpersonal and communication skills,
work coherently and effectively within a team, manage
their time well and have good attention to detail.
Ronak joined Lehman Brothers’ graduate training programme
last autumn after completing a computer science management
degree at Warwick University. He now works in a team of
two within the equities mid-office region of the bank’s global
portfolio trading support.
What does your role involve?
It is all about handling the bookings and confirmations for
portfolio equity trades and sorting out any discrepancies or
difficulties. As soon as it leaves the desk and the front office,
we take it under our wing. We are the centre point after the
trade leaves the floor.
What prompted you to go into operations?
All the way through school and university, numbers have always
been the thing I have been strong on, so it was a logical step.
I was also attracted to the problem-solving aspect of it. We are
encouraged constantly to look at ways of improving how we work,
to automate things more.
What does a typical day for you involve?
I get in at 7:30am and will check my emails from New York
or Tokyo, and make sure everything has been properly booked
out from yesterday. I’ll then move on to the Asian bookings.
You have to keep on top of the bookings during the day.
You tend to get a lot of queries from London, New York and
elsewhere, so it can get very busy. It is very reactive; there are
new problems to solve every day, but if the front desk is quiet,
then we can have a quiet day too.
Solving endless problems each day – isn’t it frustrating?
No. It means every day is completely different, it is very dynamic.
But it also means we are often under a lot of pressure from
the traders and sales managers, as we are the first point of
contact for them. You need to be able to handle it and you need
to be good at dealing with people, something that is not often
associated with operations.
Profile
Ronak Patel
Analyst, global portfolio trading support
Lehman Brothers
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Trade support 28-38 10-20
Settlements 26-38 10-20
Business analyst/projects 28-40 10-20
Salary and bonus, junior operations staff, 2007
Title Salary (£k) Bonus %
Ronak’s tips:
Try and look at how the role fi ts into the
whole scheme of things, how it aff ects
things downstream and how you might
be able to improve the fl ow.
Don’t be afraid to ask questions. No one
expects you to be able to do the job straight
away, and that’s the only way you are ever
going to learn.
Try to get some work experience or get on
a graduate training scheme. Even if it’s
just temping in an offi ce, sell things like
how you’ve dealt with customer complaints
or handled yourself on the phone.
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Voice of caution or spoilsport? Risk managers act
as a restraining influence on a bank’s risky activities.
They ensure a bank is not over-exposed to plummeting
stock markets, or stop huge loans being made to
companies on the verge of bankruptcy. They also
ensure business continues as normal in the event of
operational problems, such as computer system failure
or disasters such as a hurricane or terrorist attack.
The risks faced by financial institutions come in
several forms, including:
• Market risk: the risk that a whole group of traded
financial products (for example stocks, bonds or
commodities) falls in value simultaneously because
of outside events, such as rising oil prices or terrorist
bombs. Also known as ‘systemic risk’.
• Credit risk: the risk that a particular company or
an individual will default on their obligation to
repay their debts.
• Operational risk: the risk that something might go
wrong in the day-to-day running of the bank – from
computer failures and floods to employee fraud.
• Reputational risk: the risk that something will happen
to damage a bank’s name, such as a high-profile
court case against it or damage by association with a
client who has done something wrong; it is sometimes
considered a sub-sector of operational risk.
Trends
Risk has become increasingly complicated thanks to
an explosion in the use of credit derivative products –
in the first half of 2006, the value of credit default
swaps outstanding globally rose 50% to £13 trillion.
Using derivative products such as credit default
swaps (CDS), banks are able to quantify the risk that a
client might default on a loan by selling it on – buyers
purchase the right to receive repayments on the loan,
but if the borrower defaults, the CDS holder will itself
have to pay the amount outstanding back to the lender.
Growth in the use of credit derivatives has led to
claims that global financial markets are now less
susceptible to risks such as the implosion of a major
hedge fund. But sceptics say the system remains
as precarious as ever and that many of the buyers
of credit derivative products don’t understand the
riskiness of their purchases.
Following the failure of Amaranth, a US hedge fund
which lost $6.5bn on bad bets on natural gas prices
in 2006, the system seemed to bear up. But with
several banks said to be nursing large losses, it also
showed the need to properly assess the risk of doing
business with some trading partners.
Roles and career paths
Market risk specialists use mathematical ‘value at
risk’ models to work out the maximum amount of
money the bank would lose in the case of an extreme
event, or chain of events, within a particular timeframe.
They also work closely with traders to calculate the
risk associated with specific trading transactions
and typically sit on, or close to, the trading floor.
Credit risk specialists scrutinise company balance
sheets and meet company directors in order to
determine the organisation’s financial health.
As well as looking at a company’s profit and loss
accounts, they analyse how a particular transaction
affects the company’s solvency.
Operational risk experts review the likelihood of
particularly risky events taking place and formulate
plans in case they do. If you work in operational
risk, you could find yourself doing anything from
ensuring the computer backup systems work properly
to conducting post-mortems on how well the bank
dealt with disastrous events in the past.
Reputational risk specialists endeavour to manage
a bank’s image. Few banks employ reputational risk
specialists per se: the role is typically dealt with by
the public relations department, the human resources
department and/or the legal team.
If you want to follow a career in risk management,
it’s a good idea to join a bank’s graduate training
scheme. At some banks, risk training is covered by
the IT or operations department. Deutsche Bank,
Dresdner Kleinwort and UBS are among the banks
that offer risk-specific training to graduates.
Risk management
At a glance
Risk increasingly involves
traded derivatives products
Some banks now offer risk-
specific graduate training
Risk professionals working near
the trading floor earn the most
Te professionals who stop bankers acting too rashly
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“We look for people who can identify
the problem from the confusion,
model it and then improve the
decision-making around it”
Julian Shaw, Permal Investment Management
Pay
Pay for risk professionals rises in relation to their
proximity to the trading floor and their involvement
with complex derivative products. According recruitment
firm Morgan McKinley, a junior risk professional working
on a quantitative finance (read complex derivatives)
team can command over 60% more than his or her
counterpart in basic credit risk.
Skills
You’ll need strong mathematical skills and a cool
head, according to Sally Whitman, head of specialist
resourcing at Deutsche Bank. “You’ll need to be able
to come to conclusions under pressure quickly
and accurately,” she says.
Above-average common sense and strong
communication skills are other key attributes, agrees
Julian Shaw, head of risk management and quantitative
research at Permal Investment Management.
“You need to have good applied maths skills and
an understanding of differential equations as well as
financial modelling skills. But it’s not just about solving
the problem. We look for people who can identify
the problem from the confusion which surrounds the
business decision, model it and then improve the
decision-making around it,” he adds.
Adrian Marples, risk management specialist at
recruitment firm Sheffield Howarth, says market risk
specialists often have a first-class degree in physics
or an MA in mathematics. By comparison, he says:
“Credit risk people need to be inquisitive and able to
extract information from clients about their strategy
and financial position.”
“If you are looking to start a career within a more
technical area, market risk could be the choice.
Generally, banks will be looking for strong academics
(2.1 or above) followed by a BSc and MSc in a numerate
subject,” adds Craig McNicol, a consultant on the risk
management desk at recruiter Joslin Rowe.
Credit risk 32-45 20
Market risk 35-50 40
Operational risk 32-40 20
Quantitative finance 45-60 60
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Junior risk manager pay and bonuses 2007
Title Salary (£k) Bonus %
Jo is currently on the risk management graduate trainee
programme at Dresdner Kleinwort. She has recently completed
her first six-month rotation in the credit risk control team in
London, and is now working in the local risk control team
in Sao Paulo. She graduated with a BSc in natural sciences
(mathematics and physics) from the University of Durham.
What does credit risk control involve?
Our concern lies with the ability of the counterparties we are
trading with and the issuers of the securities we are dealing in
to pay their obligations when they fall due. The main function
of the credit risk control team is to monitor and report our credit
risk exposures. Aside from our daily tasks, we work on several
smaller projects, many of which are to improve the functionality
of our current risk systems.
How does your work in local risk control differ?
In contrast to the London office, where each team will focus on
specific areas and tasks in managing and controlling the bank’s
risk, the small size of the Sao Paulo office means we work as
one team covering all areas of risk relevant to our location. I can
find myself working on credit risk, market risk, operational risk
and liquidity risk, all in the space of one day.
What skills do you view as necessary for working in risk?
When starting out, it is important to be flexible, enthusiastic
and keen to learn. The particular skill set necessary will depend
very much on the area of risk you are working in, but you will
need to be highly numerate, analytical, and have good
communication skills.
Is there much international exposure in risk?
Risk is a global function and, as such, it is not unusual for
me to be communicating with teams from around the world,
including Frankfurt, New York and Tokyo, on a daily basis.
Profile
Jo Farries
Graduate trainee
Dresdner Kleinwort
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Jo’s tips:
Use your university holidays constructively,
and try to gain some relevant work
experience. T is will allow you to gain a
better idea of what a career in banking
will be like and whether it is right for you.
Don’t worry if you don’t have a maths
or fi nance-based degree. Although you
do need strong numeric skills, all degree
subjects are accepted.
Talk to any contacts you have that are
already working in the industry to
learn more about what the various
areas involve.
Employers IT in Finance Accounting in the City Banking & Financial Markets
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If you want to work in compliance, you’ll need sound
judgement and a respect for rules and regulations.
Compliance professionals interpret the rules set by
state regulators and ensure banks operate within
them. As well as interpreting the complicated and
ever-changing external rules that these regulators
lay down, the compliance function creates a system
of internal rules to apply the regulations. It then
communicates those to employees and makes
sure they abide by them. The compliance function
is usually split into teams. These include money
laundering specialists, training specialists, monitoring
specialists and advisory and product specialists.
Trends
Compliance departments already carry a big stick and,
thanks to new regulations and a series of scandals,
the stick is getting bigger.
First, the regulations: in 2007 the word is ‘MiFID’, or
the Markets in Financial Instruments Directive. This is a
complex piece of legislation designed to create a single
European financial market, due for implementation
in November 2007. However, an April 2007 poll by
Handysoft, a business software group, suggested
only four out of 10 firms would be ready in time.
When it comes to scandals, one of the big issues of
the day is insider trading. In March 2007, the Financial
Services Authority (FSA) said there was evidence of
insider trading in nearly a quarter of company takeovers.
Anti-money laundering is also a hot topic, with banks
and asset managers hiring specialists to ensure clients
aren’t up to anything untoward.
Striking the right balance between regulation and
laissez-faire is tricky. In the US, legislation in 2002 known
as Sarbanes-Oxley tightened many compliance rules.
Many bankers believe that New York’s financial services
industry suffered as a result, while the City benefited from
the perception that its regulatory regime is less onerous.
Roles and career paths
Jobs in compliance vary, depending on the area in which
you work. If you opt for money laundering, you’ll spend
your time on the look out for suspicious transactions.
Money laundering teams check the identity of the parties
involved and ensure the money came from a known
and reasonable source. When the circumstances seem
suspicious, money laundering officers report their doubts
to the National Criminal Intelligence Service (NCIS).
The job of compliance training specialists seems tame
by comparison. Training teams preach the compliance
message to the bank’s employees. They create and
present courses explaining what the rules and regulations
are and why bankers need to respect them.
Monitoring specialists check that employees are
behaving themselves. Traditionally the realm of junior
staff, this role has seen much of its remit taken over
by computers. As the head of compliance at one
European bank points out: “Our staff send and receive
about three billion messages every day. They could
never be monitored by humans, but they are monitored
by intelligent computer programmes that can spot
unusual activities, such as dormant trading accounts
that suddenly resurrect themselves.”
If monitoring is the least exciting category of
compliance, working as a compliance advisor is the
most exciting and usually pays the most. Compliance
advisors interpret and apply the intentions of the
regulator. An increasing number are product specialists
who are situated on or near the trading floor. They tell
traders whether or not a particular trade can go ahead
and suggest alternatives that will be satisfactory to the
client. Some, but not all, are ex-traders.
Compliance-specific graduate training schemes
used to be rare, as were entry-level jobs. But banks
such as Barclays Capital, Goldman Sachs and UBS
now offer compliance training and more are likely to
follow. If you don’t get on to a bank’s compliance training
course, there are a few other options. One is to train
with the FSA, which hires around 40 graduates a
year for its two-year training programme. Another is
to work for the compliance consulting arm of a
Big Four accountancy firm. Alternatively, you could take
a further degree: for example, London Metropolitan
University offers an MSc in financial regulation and
compliance management.
Compliance
At a glance
Compliance is becoming more
important as regulations increase
Some banks offer compliance-
focused graduate training
Compliance pros who sit near
the trading floor earn the most
Banking’s equivalent of the health and safety brigade
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“We need people with the confidence
to stand up to people in the business
and remind them of their duties.
This can be difficult”
David Kemp, ABN AMRO
Pay
The best-paid compliance professionals are those
who sit near the trading floors and advise on the
issues associated with trading particular financial
products. Salaries in this area rose 25% between
2006 and 2007. Hedge funds are also notoriously
generous to their compliance staff, with compliance
pay in the hedge fund sector rising 30-40% in the past
two years alone. A compliance officer with one to two
years’ experience can now earn between £35k and
£45k in salary working in a hedge fund, plus a bonus
of somewhere around £14k.
Skills
In the past 12 months competition has increased
dramatically. This means you’ll have to work harder
to stand out from the pack. You can enhance your CV
by studying with organisations such as the Securities
and Investment Institute, where you can get a diploma
in investment compliance. Another certificate is the
Investment Management Certificate.
“The most important thing when you are at interview
is how to really show your true potential. Having
confidence without arrogance and a determination to
succeed will be vital. You will also need to demonstrate
a willingness to undertake the mundane tasks as you
gain your experience,” explains Zoë Breadman, managing
consultant, compliance, at recruiter IMS Selection.
You’ll need to be intelligent, methodical and not afraid
to speak your mind, David Kemp at ABN AMRO points
out: “We need people with the confidence to stand up to
people in the business and remind them of their duties.
This can be difficult. For example, when an investigation is
being conducted, compliance staff might sit in judgement
of people on the next desk.”
At the FSA, Jessica Adams on its recruitment team
suggests that, while graduates from any degree discipline
are welcome to apply, you will need a 2.1 or above.
Senior compliance manager 5-8 45-95
Junior compliance manager 3-6 40-70
Senior compliance assistant 2-3.5 45-95
Compliance assistant 1-2.5 26-42
Compliance administrator 0-1 20-32
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Investment banking compliance salaries 2007
Role Experience (yrs) Salary (£k)
Stephen joined Barclays Capital as global head of compliance
three years ago. He previously worked for Credit Suisse in
New York in a global compliance role and at Bankers Trust
and JPMorgan. Originally qualifiying with an LLB (Hons) from
Leicester University, Stephen moved into compliance in 1987,
when the profession was just getting established and banks
used lawyers and accountants to get compliance advice.
What makes a good compliance professional?
A strong understanding of a firm’s business, products and
strategy; a strong understanding of market regulations;
and strong communication and decision-making skills.
You also need to be able to think on your feet – the regulatory
environment is continuously changing, and what’s right one
day might not be right the next.
Compliance is for people who like following rules. Right?
Wrong. Compliance increasingly requires significant judgement.
We often operate in a grey area in which things are rarely simply
right or wrong. It’s up to the compliance professional to decide.
Surely rules are rules?
Regulations aren’t always clear. Plus, we typically have to
comply with rules in different countries and sectors at once.
There’s often potential for significant deliberation about the best
course of action. And even if we do conform with regulations,
there’s always reputational risk to consider – we can follow the
rules, but still do wrong in the eyes of clients and the public.
How have things changed since your career began?
These days compliance is more centred on reputation
management and the rights and wrongs of particular transactions.
We see an increasing number of sales people and traders moving
into compliance. Firms such as Barclays Capital have begun
training compliance professionals in-house, as there’s no ready
supply of people with the right experience.
What’s the biggest challenge for the compliance function?
Consistently striking the right balance between being
commercially oriented and risk and control focused.
Profile
Stephen Morse
Global head of compliance
Barclays Capital
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Stephen’s tips:
Develop a broad knowledge of the business
areas – compliance functions cover all
aspects of the investment banking business.
Familiarise yourself with business ethics
– compliance is increasingly a question of
reputational as opposed to regulatory risk.
Read up on the legal and regulatory
environment – there are plenty of specialist
publications such as Compliance Reporter,
Compliance Monitor and Complinet.com.
www.efinancialcareers.co.uk/students
Find out more about careers in finance
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Rating agencies assign credit ratings to organisations
and governments after calculating the likelihood of them
defaulting on their traded debt products (companies
issuing debt products pay the agencies for the privilege).
Ratings are issued in a coded form, making it easier
to make comparisons between one organisation and
another. So a company rated AAA is adjudged almost
100% likely to pay on time; If a company is rated C, the
risk of not being paid on time is high.
Different rating agencies use slightly varying codes
for their ratings. On the whole, however, bonds ranked
BAA, BBB or above are considered ‘investment grade’,
meaning investors are likely to get their money back.
Anything ranked below this is known as ‘speculative
grade’, where repayment is less certain. While rating
agencies help banks and their clients by calculating the
likelihood of a default, data providers, such as Reuters,
Thomson Financial (which are now merging to become
Thomson-Reuters) and Bloomberg provide real-time
information on the changing prices of financial products.
They also offer a wealth of other data, including news
analysis and information on company accounts.
Trends
As the number of financial products to be rated expands
to include not just company bonds, but derivative
products based on those bonds, rating agencies are
being kept increasingly busy. Moody’s, for example,
made £456m from analysing and rating the structured
finance sector in 2006 – more than 40% of its income.
But while business may be growing, rating agencies
are under fire. This is particularly the case in the US,
where they failed to predict problems in the sub-prime
mortgage market. Many of these were re-packaged and
sold in the form of structured ‘mortgage-backed bonds’,
which were given favourable ratings, only subsequently
to default or see their rating downgraded. Critics claim
that because rating agencies receive most of their money
in charges paid by bond issuers, they are not always
as impartial as they might be. For their part, the agencies
point to their codes of transparency that they claim
address these criticisms.
This hasn’t stopped rating agencies piling into another
growing area – the analysis of the operational risk of
hedge funds. More and more hedge funds have begun
issuing bonds, which offer a more stable source of
financing than money from banks and individuals.
Data providers operate in a different and very competitive
universe, providing banks’ traders with data faster, more
cheaply and on ever-fancier screens. In May 2007 the
world of financial information providers underwent a
seismic shift when Thomson Financial put in a bid of
around £9bn for Reuters. If Thomson’s bid succeeds,
the new company will be called Thomson-Reuters.
Key players
The financial information world has long been dominated
by Bloomberg, which accounts for around 33% of the
market. But if ‘Thomson-Reuters’ becomes a reality, a
new behemoth will challenge for the top position – the
combined companies are expected to have a 34% share.
Similar to the financial information market, the rating
agency sector also hosts three key players, but there
are no signs of consolidation. Standard & Poor’s and
Moody’s vie for first and second places and account for
around 80% of the total of market; Fitch comes in third.
Behind them are a number of other operators, such as
Egan-Jones Ratings, which are miniscule by comparison.
Roles and career paths
If you work for a rating agency, you’re likely to start as
a research assistant, helping an analyst. Analysts
typically specialise in particular product types.
Not all rating agencies have graduate recruitment
schemes. Moody’s offers internships to students and
recruits graduates on an ad hoc basis. Fitch takes
around eight graduates a year in the UK into a two-
year rotational programme, where trainees rotate
between corporate finance, structured finance and
financial institutions. S&P recruits on an ad hoc basis.
Roles at information providers are more varied and cover
everything from data analysis to technology, journalism
and business development. Reuters, for instance, runs a
European graduate training scheme that runs for around
Data providers
and rating agencies
At a glance
Rating agencies assess how likely
companies are to pay their debts
Data providers offer live data
to traders and salespeople
There are only a few key
players in each sector
Heroes or villains, depending on what they report
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“Another language will make you
an attractive proposition. We are
particularly looking for people with
Arabic and Russian”
Maren Josefs, Standard & Poor’s
>
Bloomberg is a proud
Equal Opportunity Employer.
©2007 Bloomberg L.P.
All rights reserved.
25567331 0807
careers.bloomberg.com
Join the company at the forefront of finance and technology.
Bloomberg provides information to business leaders around the world.
Our employees have a passion for excellence, no matter what their
experience is. We foster that passion and encourage growth and
development in every way possible.
We have opportunities in Financial Sales, Data Analysis, Software
Development, News and many more areas. Bloomberg is the ideal
place for you to develop your knowledge and enthusiasm for the
financial markets.
MOVE THE MARKETS.
Innovate from the front.
informazione pubblicitaria
At Fitch Ratings, we appreciate original thinking. Innovation and
initiative are valued and rewarded. The work is dynamic and challenging.
The culture inspires professional growth and an entrepreneurial spirit.
Fitch is an international rating agency built on local expertise. Our
ratings and products are market-leading, our teams award-winning.
We are commited to the concepts of objectivity and independence of
opinion, as well as integrity and transparency.
IF YOU ARE A RECENT GRADUATE with a strong analytical background
and solid communication skills, Fitch Ratings can provide you with
unique training opportunities and a chance to gain experience in the
world’s credit markets.
new ideas
welcomed
To learn more about careers at Fitch Ratings, visit fitchgraduatesuk.com
Application deadline is 31 January 2008.
here
two years, with the potential to try varying roles and
work in different offices globally.
Pay
Ratings agencies have traditionally paid a lot less than
investment banks, particularly when it comes to bonuses.
But as more and more of their staff leave for the structured
finance desks of banks, they have been trying to make
amends. Bruce Wheelan, a consultant at recruitment firm
Anderson’s, says bonuses in the sector were previously
capped at 35% of salary, but this has recently risen to
50%, with senior staff even getting 70%. At the same
time, he says, salaries have risen 10-15%.
According to Wheelan, a credit ratings analyst can now
expect to earn a base salary of £45k to £65k plus
a bonus of up to 40%. ITjobswatch says the average
salary for an IT specialist with Bloomberg knowledge
is currently somewhere between £52k and £56k.
Skills
Graduates with good quantitative skills will always
be in demand, says Maren Josefs, associate director
at Standard & Poor’s (see her profile on the right),
particularly as data providers and rating agencies are
fishing from the same relatively tight pool of talent.
“Another language will also make you an attractive
proposition. We are particularly looking for people with
Arabic and Russian, as they are growing markets for us.
Beyond that, you need to be a good communicator with
solid analytical skills, be opinionated and be able to
speak with authority to senior executives.”
Lynne Smith, vice-president of HR for Europe, the Middle
East and Africa at Moody’s, also stresses communication
skills: “As well as a solid academic background and
sound analytical ability, we want graduates who are strong
communicators capable of listening to others, as well
as formulating and articulating their own opinions.”
Reuters looks for different attributes across its business
areas, but also specifies communication skills as
mandatory. Anne Bowerman, global head of learning
and development at the company, says graduates
entering its business programme need to be fluent in at
least three European languages: “Applicants to Reuters’
journalism division need to be able to express complex
issues simply, work unpredictable hours and be willing
to accept international postings,” she says.
Maren joined the insurance practice division of Standard &
Poor’s three years ago from the capital markets team at risk
management consultancy Aon. She is a graduate in European
business administration from the European Business School in
London and has an MSc in finance from London Business School.
Why the switch to a career in credit ratings?
At Aon, I was structuring and pricing catastrophe bonds, which
help insurers transfer the insurance risk of natural catastrophes
such as earthquakes and hurricanes to the capital markets. It
was interesting but mostly technical, and I didn’t have as much
access to clients. At Standard & Poor’s I have regular access
to senior company management, I’m dealing at a much more
strategic level, and have access to the ‘big picture’ side of things.
What does your current job involve?
A lot of preparation goes into issuing a rating – I meet with
senior executives at client companies, and talk through the
structure of their proposed credit products. When I’ve analysed
the transaction and reached a decision about which rating
to suggest, I’ll write a paper that is reviewed by our voting
committee before the rating is allocated. I also spend a lot of
time talking to investors about ratings we’ve already issued
and the rationale behind them.
What’s the most challenging aspect of your role?
Issuing a rating isn’t just a question of knowing about the
company in question – you also need to know about the
market, so you can never do too much research. When a
client is downgraded, it can also have big implications for their
business and they can become confrontational. It’s difficult to
deal with but we’re trained to handle these situations.
What kind of person makes a good ratings analyst?
You need to be opinionated, analytical and to enjoy interacting
with people at all levels. You also need to be independent
and able to get things done autonomously.
Profile
Maren Josefs
Associate director
Standard & Poor’s
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Continued from pg. 64
Maren’s tips:
Get a good fi nancial foundation before
applying – my MSc in fi nance was an
excellent preparation for dealing with
the complex fi nancial products that
underpin ratings.
Try to build practical experience in the
area in which you’d like to work fi rst –
my previous experience at Aon enabled me
to understand the market I’d be rating.
Language skills are highly valued – an
analyst working in the London offi ce can
cover companies headquartered in Europe
and the Middle East, for example.
Employers IT in Finance Accounting in the City Banking & Financial Markets
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Think of insurance and the first thing that may spring to
mind is waiting on hold for a quote for insuring your car or
your holiday. But the insurance industry is about far more
than just car insurance or hanging on at call centres.
Insurance is big business. In 2005, according to the most
recent figures available from insurer Swiss Re, global
insurance premiums were worth more than $3.4 trillion
(£1.7 trillion), with the UK worth £166.7bn, according to
the UK Chartered Insurance Institute (CII). This is hardly
surprising, given that – alongside personal insurance for
cars, homes and holidays – insurance companies cover
commercial risks on everything from industrial buildings
to power stations and ocean liners.
The insurance industry can be split into three sectors:
• Insurers: the companies that provide the
insurance packages.
• Reinsurers: companies that insure the insurers.
• Brokers: companies that sell packages on
behalf of insurers.
Whether you work for an insurer, a reinsurer or a broker,
a career in the City will put you at the more exciting end
of the insurance spectrum. The London insurance market
centres on international projects and big commercial
clients and provides cover to a diverse range of risks
– from North Sea oil platforms to celebrities insuring
their body parts. What this means is that you could
be designing anything from a risk management and
insurance programme for a big international company
such as British Airways right down to working with
small start-ups and entrepreneurs.
Trends
Thanks to global warming and international terrorism,
we live in risky times. But while the insurance industry
has good reason to be concerned about potential
claims arising from another September 11th or Hurricane
Katrina, most of its business is a lot lower key. The
last time the Association of British Insurers (ABI) counted
(back in 2005), the UK’s general insurance industry (not
counting the huge life insurance and pensions sector)
faced a total £20.6bn in claims,
of which nearly 40% related to motor vehicles. While
events such as 2007’s severe flooding in England
may make the headlines, insurers are equally likely to
be kept awake by trends in motor vehicle vandalism.
UK insurers are also vexed by problems attracting staff.
In 2005, the CII commissioned Cass Business School
to conduct a study into students’ attitudes to insurance
careers: 90% said they wouldn’t go into the industry.
Since then, insurance has gone all-out to make itself
appear alluring to university leavers. “Insurance just
hasn’t been seen as sexy,” says Alex Thompson,
a spokeswoman for the ABI. “It’s seen as men in
grey suits doing paperwork.”
You can see insurers’ new image at
www.insurancecareers.cii.co.uk. It seems to be working
– the site had 30,000 hits in the first six months.
Key players
Think of the London insurance market and the first
name that springs to mind is likely to be Lloyd’s. But
Lloyd’s isn’t an insurance company – it’s a market made
up of member companies, specialising in property and
catastrophe insurance. By comparison, most of the UK’s
biggest insurers operate in the huge area of life insurance
and pensions – Aviva International is the top provider of
life and pensions products in Europe.
Roles and career paths
Apart from the usual operations functions such as
human resources, finance and information technology,
insurance offers a number of specialist careers.
1 Aviva International 3,858
2 Royal and Sun Alliance 3,150
3 XL Re 2,748
4 Axa Insurance 2,373
5 Zurich UK (Br) 2,349
6 Norwich Union 1,886
7 BUPA Insurance 1,725
8 Transatlantic Reinsurance 1,497
9 Direct Line 1,328
10 Allianz Cornhill 1,305
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Top UK insurance companies 2005 (£m)
Ranking Insurance company Premium income
Insurance
At a glance
The industry is divided into
insurers, reinsurers and brokers
40% of general insurance relates
to motor vehicle claims
Insurers are doing their best to
increase graduate applications
Offers stable careers and less competition for jobs
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“We are looking for people that are
passionate about insurance and
want to learn; we very much look
for future potential”
Debbie Crew, Allianz
These specialist careers include underwriting, broking,
actuarial roles and risk assessment.
Underwriting is the job most typically associated with
the insurance industry. These are the people who look at
risks and price them for insurance purposes. So, if you’re
a driver with a history of crashes it will be the job of an
underwriter to charge you more for your car insurance.
Like the broking companies they work for, it’s the job of
individual insurance brokers to sell insurance to clients.
Actuaries analyse the financial consequences of risks
the insurance company is taking and ask questions
such as whether the company has enough reserves
to cover future payouts. Risk managers work with the
insurers’ clients to help make payouts less likely.
In the past it was common to specialise in one of the
above areas, but industry insiders says it’s becoming
easier to move between roles. In particular, companies
such as Allianz and Axa run trainee programmes in
which you will be given exposure to various roles.
Allianz runs seven different graduate training schemes,
taking on around 30 graduates a year, with about
10 going into the management programme, says
graduate development manager Debbie Crew.
Axa, meanwhile, runs three graduate programmes:
an actuarial training programme that takes on between
six and eight graduates, a leadership programme with
places for about 23 graduates and an IT programme
for 20 graduates.
Skills
“We are looking for people that are passionate
about insurance and want to learn; we very much
look for future potential,” says Debbie Crew of Allianz.
Among the practical skills required are numeracy,
‘emotional agility’, drive and ambition.
“To be successful in this industry, you must have
the capability to handle lots of information, analyse
the data and make accurate decisions from it. You
most also be prepared to focus on achieving
professional qualifications, normally outside your
working hours,” Crew adds.
“We are looking for graduates with a 2.2 degree
(2.1 for actuarial programme) or above who have
excellent interpersonal skills, leadership potential
and high levels of energy and drive,” says Jasbir
Sennitt, Axa UK graduate resourcing manager.
Thomas is a key account developer at Allianz. He studied
business economics at Liverpool University before joining the
company’s corporate management scheme in September 2003.
What does an account developer do?
I help manage relationships with our affinity partners. These are
brand names such as Dixons, the Telegraph and Royal British
Legions, with whom we work to provide insurance products
under their brands. My role is about attracting new partners,
retaining existing partners and ensuring that their agreement
with us is profitable.
I’ve had four placements with the company. As a graduate trainee
I’ve spent time in commercial lines underwriting (working out the
risks and premiums attached to insuring commercial property
and fleets), time in the change department of the claims division
and in the engineering insurance division.
What attracted you to a career in insurance?
I was interested in a career in financial services, and the
insurance sector stood out. I was impressed by its scale and
variety. It also seemed to be an area that had been overlooked by
many university students.
The concept of taking risks for a living is an exciting prospect,
and that’s what insurers do every day – taking educated risks
about what to insure and at what price.
What do you think makes a successful insurance graduate?
There’s been a greater ‘specificity’ within the insurance sector,
meaning that insurers, brokers and even re-insurers in many
cases are looking for more specific skill sets. Insurers are
increasingly looking for people with financial skills and another
skill, such as e-marketing or statistics.
Therefore don’t be put off by a job title, look at the job description
and what it involves and match it against your skills (and,
importantly, against whether you’d enjoy doing it). If you’ve done
a joint honours degree, great; if not, look at the relevant modules
you’ve done and sell these to any potential employer.
Profile
Thomas Needham
Account developer
Allianz
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Thomas’ tips
T e quality of the person matters more
than the degree subject. People in this
industry have degrees in everything
from history and geography to maths
and economics.
Do your research about which company
you want to join. Many companies have
excellent graduate schemes, although the
company brand name may not be as high
as its profi le.
T ere is a variety of roles in the insurance
industry. Find a scheme that gives you the
chance to experience and consider them all.
www.efinancialcareers.co.uk/students
Click online to begin your finance future
Employers IT in Finance Banking & Financial Markets Accounting in the City
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If you want to be an accountant in an investment bank,
there are two main entry routes. You can join straight from
university or you can gain an accountancy qualification
elsewhere and then move to an investment bank.
Accounting roles in the City are not for the faint-hearted.
The work is well-paid but fast-paced. Expect to work
long hours in a highly-charged environment.
There are several varieties of financial services firm
to choose from. The most important are fund
management firms, which invest money for pension
funds, insurance companies and individual investors;
hedge funds, which invest money for private investors
using complicated trading strategies; and investment
banks, which are financial services power houses
that do everything from trading financial products to
helping companies execute M&A deals. The best-paid
accounting jobs are in investment banks, but retail banks
and insurance companies also need accounting talent.
Trends
“There’s never been a better time to consider a career
within banking or financial services while studying
towards a professional accountancy qualification”
says Sarah Williams, associate director at recruiters
FSS. “The pace at which these already buoyant markets
are developing means that demand is exceptionally
strong – and is likely to continue to be so.”
Demand is so high that many banks – while not
compromising on the calibre of person they take on
– are more prepared to be flexible when considering
candidates’ backgrounds: “Employers now realise the
importance of employing candidates from practices
other than the Big Four,” says Tanya Sharma, an
investment banking consultant with Joslin Rowe.
“They’re not as concerned if the people they take on
have no financial services audit experience.”
Accountants have evolved from number-crunchers to
business advisers, says Steve Carter, managing director
of Nigel Lynn. “What the financial institutions look
for today are finance professionals who are highly
proficient technically – but who can demonstrate a
broader range of wider commercial skills.”
Key players
If you want to work for a bank, there’s no shortage
of employers around. The world’s largest financial
institution, according to US magazine Fortune, is
US-based Citi, followed by Fortis, the Benelux-based
insurance group, France’s Crédit Agricole and
London-based HSBC.
These giant institutions all have investment banking arms.
But they also have retail banking networks, through which
they take deposits from consumers. ‘Pure’ investment
banks, such as Goldman Sachs, Morgan Stanley and
Merrill Lynch, are small by comparison.
Roles and career paths
At fund managers and hedge funds, accountancy
roles are typically for ‘fund’ accountants who provide
ongoing reports on the value of the fund’s assets and
liabilities, check that all funds received are properly
accounted for and help prepare for end-of-year
reports and submissions to the Inland Revenue. But
in investment banks, accountants are more diverse.
In the front office, accountants are hired into corporate
finance, raising money for companies involved in M&A
deals, or into equity research, advising on the future
of companies’ share prices. Accountants working in
the front office are typically ACA-qualified. For more
information on these roles, see page 72.
In the back and middle offices, accountants occupy
a number of roles:
Product controllers work with traders to monitor and
restrict the risks the bank is exposed to. Like traders,
they specialise in a particular class of financial product.
Management accountants provide information on
the state of the bank itself. This enables managers
1 (1) Citi 66.1
2 (2) Fortis 56.7
3 (7) Crédit Agricole 55.9
4 (3) HSBC Holdings 47.1
5 (4) BNP Paribas 43.2
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World’s leading banks by revenues 2006
Rank (2005 rank) Bank Revenues (£bn)
Accounting City careers
At a glance
No sign of let-up in
the pace of growth
Accountants are now expected
to show commercial acumen
Increasingly tight regulatory
framework governs their work
Talented, ambitious finance professionals will go far
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“Candidates need to be hard-working
but smart with it and have an ability to
work with people at all levels”
Andrew Garratt, Fidelity International
to formulate strategy based on knowledge of risks
and budgetary constraints.
Financial reporters produce monthly and year-end
accounts and meet the reporting needs of the
Financial Services Authority (FSA).
Technical accounting specialists help banks ensure
they meet the needs of regulators, such as the FSA,
and adhere to requirements such as International
Financial Reporting Standards (IFRS).
Pay
Money is what induces many accountants to switch
to banking. Basic salaries are up to 40% higher than
in private practice and there can be substantial bonuses
on top. The best-paid jobs are for product controllers
working with derivatives. According to Joslin Rowe,
product controllers (who are currently most in demand)
with between two and five years’ post-qualification
experience (pqe) can earn a basic of up to £68k
plus a 50% bonus.
Skills
All-round skills are called for, says Andrew Garratt
of Fidelity International: “Attention to detail, an
understanding of the big picture, calmness under
pressure are required,” he says. “They need to be
hard-working but smart with it – and have an ability
to work with people at all levels and gain respect from
the management team.” Recruits must also be able
to meet the demands of a complex environment.
Regulatory demands have changed accountancy,
says Steve Carter of Nigel Lynn: “With Sarbanes-Oxley
and Basel II impacting on how companies organise
their financial reporting, as well as how they assess
risk, individuals must have with a clear understanding
of these developments and how they impact on the
business’s infrastructure.”
A qualified ACCA, Heather Larkins works in the finance team
which accounts for the performance of the fund management
business units within M&G. She prepares budgets and cost
forecasts and carries out variance analyses to understand why
costs may be higher or lower than expected – and ultimately to
help management make key business decisions.
Describe the route to your current job
I joined M&G after graduating (in mathematics) in a fund
accounting role, preparing financial statements for the various
unit trusts, OEICs (open-ended investment companies) and
investment trusts managed by the company. I chose to study
ACCA as I felt it was a flexible qualification that would allow me
to keep my options open. After four years I moved to my current
position – I wanted a new challenge and was keen to take on
more of a management accounting role – something more
forward-looking.
What made you decide to go into financial services?
Although I was interested in finance, I knew I didn’t want to
work in an accountancy practice – the investment sector seemed
more exciting. M&G had a good reputation in fund management
and as an employer – they were willing to pay for me to gain
a professional qualification.
How did you get your job?
I applied via a recruitment agency. They told me their client
was looking for someone with a good academic background
but who also had the right personality – team fit is important,
as everyone has to be willing to pitch in when the pressure’s
on. I had to be able to demonstrate good communication skills,
as the job involves liaising with heads of departments.
What skills are needed to do well?
Numeracy is absolutely critical. You’re required not just to
produce reports but also to question and interpret them for
others – including people who are not necessarily schooled
in finance. Attention to detail is paramount, as you have to
be able to identify errors in income forecasts or spot where
invoices have been calculated incorrectly. And the ability to
work to tight deadlines is critical.
Profile
Heather Larkins
Financial analyst
M&G Investments
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Financial controller 70-100 20-100
Product control director 90-110 20-100
Product control mgr
(5 yrs+ pqe) 55-68 0-50
Project manager 70-95 0-100
Regulatory reporting
accountant (just qualified) 45-50 10-20
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Accountancy salaries in financial services 2007
Job title Basic pay (£k) Bonus (%)
Heather’s tips:
Do your research before interviews, so
you have some understanding of how the
company you’re applying to makes money.
Remember the end user – the job isn’t just
about churning out numbers: people rely
on the information you produce to help
them make important spending decisions.
Spreadsheets will fi gure in a large
proportion of your workload – if you don’t
like Excel, this job probably isn’t for you.
www.efinancialcareers.co.uk/students
Take our online numerical tests
Employers IT in Finance Banking & Financial Markets Accounting in the City
If you’re planning to gain an ACA qualification after
leaving university but can’t face a lifetime of jokes about
boring accountants, then think banking. Investment
banks employ ACA-qualified staff in plenty of non-
accountancy guises – the most popular of which
are situated in the thick of it – in the front office.
“Moving to the front office is not for the timid,” says
James Lloyd-Townshend of recruitment firm Hays
Accountancy & Finance. “You need to be fairly robust;
the working environment can be highly pressurised
and a cool head is needed at all times. People who’ve
worked closely with the front-office team in a main-
stream accounting role are more likely to have their
potential identified and be offered opportunities.”
These opportunities could involve working in roles with
greater interaction with the banks’ clients – and the
potential to earn vast sums of money.
Corporate finance/M&A
Corporate financiers and M&A bankers are two
sides of the same coin. Corporate financiers working
for investment banks advise client companies
(corporates) on how to raise money, often to finance
acquisitions. M&A bankers advise the banks’ clients
on which companies they should acquire and how
to fund their acquisitions. As such, corporate financiers
and M&A bankers are often one and the same person.
“Like most front-office positions, you need to be able
to deal with the cut and thrust of the environment
and stand on your own two feet,” says Hugh Shields
of Barclays Capital. “You need gravitas and
commercial acumen.”
Sophie Spencer, banking consultant at recruiters
Witan Jardine, says: “Ideally, accountants who move
into corporate finance should already have some kind
of exposure to work such as due diligence or company
valuations in their current firm – or even been part of
a team which has helped a client to list on the AIM.
But most importantly, they must have a genuine desire
to move into corporate finance and be able to articulate
this. They’ll be up against people who read the financial
press, know what the big deals are and can talk
knowledgably about them – demonstrating a long-term
interest, not just a fleeting desire.”
Equity research
Equity researchers scrutinise companies’ accounts and
contemplate their strategic direction before pronouncing
whether their shares are likely to rise or fall.
James Heath, managing director of Greenwich Partners,
which specialises in moving newly qualified accountants
into front-office jobs in banks, says strong analytical skills
are required: “You have to enjoy research projects, as
well as writing up the results of your work,” he says.
“But you also need to have the confidence and presence
to back up your findings and recommendations in a
client-facing capacity. Qualified accountants can make
good equity researchers if they can complement their
technical ability with the right personality.”
Other banking options
If you don’t fancy making your career in corporate finance
or equity research, you could opt for equity capital
markets, which involves helping companies to raise
money by selling their shares on the financial markets.
Or how about going into corporate broking, where
you will be helping companies manage their share price?
Or perhaps trading?
Keeley Quinlan, finance recruiter at UBS, says that
visibility in the front office can provide the perfect
opportunity for accountants to shine – and be plucked
from a mainstream accounting role into a more
glamorous position: “There’s always the chance that if
they impress the people they’re speaking to, they’ll be
given the opportunity to switch across.”
However, one City recruiter suggests it may be wise
for newly-qualified accountants with client-facing
aspirations to play their cards close to their chest: “Line
managers won’t want to take on and train up someone
who clearly wants to shoot off to the front office as soon
as possible,” he cautions. “Not only does that represent
a potential wasted investment of time and resources, it
may also imply that the candidate considers the straight
accounting role inferior – a stopgap, or a stepping stone
to something more rewarding.”
Front-office careers
At a glance
Personality and team fit
are critical for progression
Be prepared for
pressure and stress
Private equity is a
destination of choice
Dynamic types enjoy a host of possibilities
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“You need to be able to deal with the
cut and thrust of the environment and
stand on your own two feet”
Hugh Shields, Barclays Capital
Private equity
Another possibility is a job in private equity. Private
equity funds are the kings of the capitalist system.
With hundreds of millions, and often billions, of pounds
to invest, they specialise in buying out large established
companies, improving them and selling them on.
Giles Derry, director at Dunedin, says: “A lot of the
role is sales-focused. As well as meeting company
management teams to size up a potential investment,
you also have to convince that team that you’d be a
good partner for them. You have to give them a degree
of comfort that you can help them deliver their business
plan and grow their organisation significantly.”
Guy Townsend, joint managing director at Walker
Hamill, believes personality is critical to succeeding
in private equity: “Many qualified accountants tick
certain key boxes – having the technical know-how
to understand the industries in which they invest and
analyse each opportunity, as well as the transaction
skills to complete deals.
But it’s the ability to build strong networks internally
and externally and get on with different management
teams – generating immediate empathy and rapport
– that differentiates the best candidates.”
Not for everyone
But don’t imagine that the front office is for everyone.
“Front-office positions are sometimes seen as the holy
grail by accountants in banking,” says Jenny Steedman
of Poolia. “But these days, there are many support roles
that carry kudos in banking, as accountants enjoy a
high profile within the business and play key roles in
helping to enhance value for shareholders.”
While many of the traders and others in front-office
positions have come via the sales route, your
accountancy qualifications may have a positive
impact on your eligibility for admission: “There are
several accountants in the City’s relationship manager
community,” says James Pritchard of Lloyds TSB.
“Their qualifications are well-received, especially as
client contact is often with corporate treasurers,
who may be accountants themselves.”
Finally, it’s also worth asking yourself whether you’re
prepared to commit to working long hours. It may not pay
as well or be as exciting, but a life in financial control or
auditing will at least mean your weekends are your own.
An ACA who trained with Arthur Andersen’s financial markets
practice, Giles Derry initiates investment opportunities at Dunedin,
named in 2007 as the BVCA/Real Deals’ private equity firm of the
year. He specialises in the financial services and leisure sectors.
He has a degree in natural sciences from Durham University.
How did you get into private equity?
I found auditing too retrospective; my interest lies in what
drives business forward. I tried to get in directly from audit but
employers wanted relevant experience. I moved into my firm’s
corporate finance arm, and from there into private equity.
What do you like about the work?
Your relationship with management teams is ongoing, not
transitory. Corporate financiers collect their fee and their job is
done – but in private equity, that’s just the beginning. You own
the business and have to help steer its management, from
acquisition through development over three or four years – always
adding value – to profitable realisation of your investment.
What do you enjoy most?
Watching management teams mature and cope with some of the
difficult challenges and dynamics that arise is hugely rewarding.
Also, most private equity firms are relatively small, with collegiate
management styles – big decisions get made and actioned
quickly, which is fantastic.
What does the work involve?
There’s no such thing as a typical day. I could be discussing
pricing strategies, hiring a sales director, finding more money to
buy other businesses, working on legal documents or helping
with tax structuring. I get bored if I’m doing the same thing for
too long – I love the variety.
What skills are essential in order to excel?
You’re dealing with people from all walks of life and business
backgrounds, many of whom are excellent – you can’t think you
know it all. You have to be able to identify what will translate into
value creation, which means understanding and maximising
cashflow, as well as looking at long-term strategic development.
Profile
Giles Derry
Director
Dunedin
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Giles’ tips:
T e best route to private equity is via
transaction services or due diligence;
lead advisory or corporate fi nance; or
insolvency or corporate restructuring.
Personality is key – have the wrong
approach and you won’t get on. T e
right people can acquire the skills.
Don’t assume you know it all – you’ll rely
on existing teams for their experience
and market knowledge.
Employers Banking & Financial Markets Accounting in the City IT in Finance
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Banks use computers for just about everything – from
communicating with staff and storing information on
clients to running complex models to price financial
products. They are known for having some of the world’s
cutting-edge computer systems, especially for the
trading floor, where financial products and commodities
are bought and sold electronically.
Trends
Banks are big spenders when it comes to IT systems.
According to an estimate by Celent, a research company,
financial institutions’ global IT spending stood at a huge
$318bn in 2006, up 8% on 2005.
Banks have been spending big money on IT because
the effectiveness of systems used to trade everything
from simple (‘vanilla’) equities to exotic derivatives is an
increasingly important source of competitive advantage.
At the same time, computers play an ever more important
role in the trading process itself via algorithmic trading
models, which automatically place trades based on
parameters set by mathematicians.
It’s not all good news for technologists in investment
banks, however. Along with increased spending on core
systems, the other big trend of recent years has been to
shift many programming and non-core IT roles to lower-
cost locations, both out of London to other regions of
the UK and also further afield. JPMorgan has been
adding to the number of programmers it employs in
Glasgow, for example, while Citi has been transferring
programmers to Belfast. Both banks – and most other
banks – are also offshoring IT roles to India.
Roles and career paths
Jobs in the IT departments of investment banks tend to
fall into one of four categories: development, business
analysis, project management and technical support.
If you become a developer, you could be responsible for
writing the programmes that help the bank do everything
from pricing and booking trades to calculating risk. The
main programming languages used by banks are
usually C++, Java and Microsoft’s .NET.
While developers write the programmes banks use,
business analysts look at the way technology is used
in the bank and analyse opportunities for making it
work better. They help identify the potential for making
changes to a bank’s technology systems. Once big
changes have got underway, responsibility for
managing them often passes to project managers
who plan, structure and fulfil IT projects, or liaise with
third-party providers.
Technical support staff, meanwhile, require good
technical skills and the thickest of skins to handle not
only the technology problems, but the temper tantrums
of irate traders. It’s a role that carries a lot of responsibility
– a computer problem on a trading floor lasting a few
minutes could cost the bank millions of dollars. It’s up
to the technical support staff to identify and resolve any
glitches as soon as possible.
IT staff in investment banks also usually specialise in
the IT requirements of a particular business area. While
many IT staff work on the trading floor, others are based
in private banking, fund management and operations, or
deal with core infrastructure requirements.
“While there seems to be an almost endless supply of
IT ‘foot-soldiers’ in the City, there’s a definite shortage of
people who really make things happen,” says Satnam
Brar, managing director of specialist ERP recruiter
Maximus. “The major banks and their integrators are all
focusing on individuals who’re not just good technicians.
Many current systems have grown organically and now
need fundamental change. That has to be undertaken
by people who don’t just understand the system,
but also the business behind it. Finding that duality
of expertise is not easy.”
Pay
IT is not the place to be if you want to earn a multi-million
pound remuneration package. However, IT salaries
in investment banking are solid, with the possibility of
earning bonuses of up to 20%.
“Graduates start on as much as £35k, depending on
their background and technical knowledge,” says Louise
Clarke, head of IT recruitment at consultants Robert
Walters. “Bonus potential depends on the area they go
into and the length of their graduate programmes, which
Information technology
At a glance
Banks are spending large sums
upgrading trading systems
Several banks hire graduates
as technology trainees
Non-essential IT roles are
being shifted to India
Technologists help banks do big business
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“We don’t hire people whose ability
is purely technical but who have
limited interpersonal skills”
Derek Walker, Barclays Capital
can be three to 18 months. The sooner you can get
into a core business environment, the sooner your
bonus potential will increase.”
Skills
Technical skills are obviously important: “Most IT
graduate schemes in the City won’t hire without academic
experience of software,” says Robert Walters’ Louise
Clarke. “They want evidence of good computer skills
already, although they’ll also take people on with strong
science, engineering or maths degrees.”
But technical ability is not enough. ‘Soft’ skills are also
necessary: “People need to demonstrate good written
and oral communication, as well as presentation,” says
Derek Walker, head of campus recruitment at Barclays
Capital. “We don’t hire people whose ability is purely
technical but who have limited interpersonal skills. We
need them to be technically smart but also able to talk to
people throughout the business in a down-to-earth way.”
“A key asset is to be able to explain technology to the
business in terminology they will understand,” agrees
Laura Everingham, graduate recruitment manager at
investment company Fidelity International.
Project managers need to be able to multitask and
work on several things at once, according to Matt O’Hare
of recruitment consultants Hays City: “As project manager,
you’re the central coordinator – controlling the budget,
looking after all the stakeholders, smoothing the continuity
of each project and ensuring they hit key milestones.”
This often involves working alongside and overseeing
more than one set of people, according to Gurdev Sihre
of M&G: “You need to be a team player, understand
where everyone is coming from,” he says. “Project
managers initially work with a team of analysts, then the
developers and testers, then the users. Each has different
priorities, but they’re all valid.”
Program manager 80-120
C# developer 40-80
C++ developer 40-80
Application support analyst 40-60
Business analyst 70-120
Project manager 70-120
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Basic salaries IT in financial services 2007
Job title Basic salary (£k)
A computer science graduate from Birmingham University,
Gurdev joined M&G in 2006. His role involves helping the
implementation team, where his main objective is to coordinate
and successfully implement tightly correlated projects into the
business, working with project managers and acting as point
of contact for technical service and change management teams.
He also solely manages a number of smaller projects.
How did you get your current job?
I’d been personally trading in shares since college. Computer
science was my forte, so this job allowed me to combine
those interests. Although I don’t do any coding, I still need the
knowledge gained from my degree, as I have to identify and
mitigate risks; having a technical understanding helps me
pre-empt them and build them into project plans.
Why do you like financial services?
I love the pace. Things change quickly; you need to stay
up to date with what’s happening, especially regulatory issues.
I also like seeing how financial markets interact with and influence
the rest of the economy. To play a part in all that is fantastic.
What do you like about project management?
It’s all about seeing things through from start to finish. I’m
involved in the initial project brief, and I’m still there when it
materialises as a real-life working application that reduces the
effort required by people or processes, or saves us money.
That’s really rewarding.
What skills are needed to do well?
Communication is critical. You’re dealing with projects involving
significant sums of money. Everything must be watertight –
from the written reports, through the way you walk people
through the roll-out stages of a project, to setting criteria for
post-implementation, end-user sign-off testing.
Profile
Gurdev Sihre
IS implementation team
M&G
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Gurdev’s tips:
T ink about the role you want – it’s such
a vast arena and there are so many paths
– support, development, testing and
project management are just a few.
Know what each potential employer does
and how it fi ts in with the rest of the
fi nancial sector – and understand how
the FSA works, as it will impact
on much of your work.
Network with as many people as possible
– get out and about, stay enthusiastic and
take on as much as you can. But don’t
forget, you also have to have a social life.
www.efinancialcareers.co.uk/students
Get the latest on internships & grad programmes
Employers Banking & Financial Markets Accounting in the City IT in Finance
So you want to work in IT in investment banking.
Where do you start? Which route will your career take?
What are the possibilities for the future?
Starting out
The easiest and most direct way to work in
investment banking IT is to find a bank that will take
you on as a graduate trainee. Banks such as JPMorgan,
Deutsche Bank, Goldman Sachs and Barclays Capital
recruit hundreds of graduates into their technology
divisions each year.
The advantage of joining a bank directly from university
is that you will be trained in the application of technology
in financial services and gain a solid understanding
of financial products. Not everyone who aspires to
working in banking technology will achieve a position
as a graduate trainee, however. Banking is notoriously
competitive, with around 60 applications for every
position. Although IT is less competitive than other
areas, it remains heavily oversubscribed. The good
news is that if you do not immediately land a technology
position, there are several other routes into the industry
for technologists. These include blue-chip companies,
particularly multinationals in the telecoms sector,
software houses and consultants
Getting in
“A good starting point is to join one of the software
vendors whose products are used to trade instruments
within the banking sector,” says Lee Chapman, director
of IT Financial Recruitment. “These companies will be
looking for exceptional academic backgrounds and
have a preference for scientific degrees, such as
computer science.”
You’ll be able to move into banking if you have spent
two or three years training at the likes of IBM, Oracle or
Microsoft. Financial software providers such as Murex
and Beauchamp Financial Technology also take on
graduates, with Beauchamp employing around 30 a year.
Many major banks seek good IT graduates at the
‘second jobber’ stage from companies outside financial
services, according to Louise Clarke of recruiters Robert
Walters: “Sectors such as telecoms, defence and artificial
intelligence are classic breeding grounds for candidates,”
she says. “The banks actively search from there, as
people are likely to have been trained in the raw basics
but without the pre-moulding they might have if they’d
started out in another bank.”
Matt O’Hare of Hays City says that, while standards have
in no way dropped, employers are less likely to dismiss
a candidate simply because they have no previous
banking experience: “We’ve seen graduates from
pharmaceuticals companies and even the public sector
cross over successfully into banks,” he says. “If similar
technology has been rolled out in two organisations,
then people may well have the ability to support the
same volume and usage in another big company.”
Roles and career paths
Once you’ve got your foot in the door at an investment
bank, opportunities are plentiful. You could work on
technology for the trading floor or build the technology
that underpins mathematical models used to price
financial derivative products. Or simply manage a
project to update payroll systems.
There are two broad routes available to technologists
who work in investment banks: technical and managerial.
With the managerial route, you’ll start out as a
programmer or business analyst, working on a particular
system. From there, you’ll move on to managing a small
team of similar analysts or programmers, becoming a
program team leader with responsibility for a particular
area of a technology program and, ultimately, a project
manager with responsibility for an entire project.
Many organisations like to give their trainees a taste of
what’s on offer throughout the IT function, with a view to
identifying potential skills, as well as allowing recruits the
chance to find out what it is that they really enjoy.
“Graduates are a key pipeline for future technology
leaders or technology experts within our organisation,”
says Laura Everingham, graduate recruitment manager
at investment company Fidelity International. “Where
you want to specialise will depend on you and your
strengths. As we have a rotational graduate scheme,
project management skills are essential. These could
IT careers
At a glance
Banks value experience from
outside financial services
Rotational programmes give you
the chance to find your niche
No room for ‘anoraks’ –
business awareness is critical
Technology opens more doors than you’d think
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“Graduates are a key pipeline
for future technology leaders
or technology experts”
Laura Everingham, Fidelity International
have been displayed during a team project at university
or a final-year assignment – alternatively, you could have
led a team to raise money for charity or embarked on a
round-the-world trip.”
One way of staying in close contact with technology is to
become a systems architect. They make decisions about
combining the individual programs to make a coherent
whole and need an understanding of the entire system.
Another way is to work on cutting-edge technologies such
as those used to price derivative products. This path is
open only to the very best technologists, however.
Where next?
From a career in investment banking IT, you may find
it possible to move into a role in banking operations,
according to Lee Chapman of IT Financial Recruitment:
“For candidates wishing to ultimately work within the
business itself, there are roles available within operations
which will involve acting as an interface between IT,
operations and the business,” he says. “These will require
you to support the management of credit and risk,
often including major elements of IT infrastructure.
These roles will make you far more visible within the
business, which in itself opens up further opportunities
for those who excel.”
Technologists are also increasingly valued in the trading
arena, says Chapman: “Strong front-end developers
should consider a move to a role within the sales
environment – this is where you’re likely to pick up
exposure to the latest and most advanced electronic
trading systems.”
The one thing you can’t count on if you work as a
technologist is moving into the front office in a purely
client-facing role as a trader or salesperson. Indeed,
if you join the bank with this intention, you won’t get very
far. “In IT, it’s rare to cross over into a solely revenue-
generating role,” says Andrew Keene, director of banking
technology recruiter Thomson Keene. “Quantitative
analysts might become traders – and some of those
may come from an IT background – but they’ve probably
always been working in the front office. Developers of
web-enabled products, such as those that support credit
derivatives, may move into relationship manager-type
roles, working alongside their sales colleagues and
explaining the technology aspect of products to clients.
It’s pretty exceptional though.”
After graduating last year from Imperial College with a
Masters in mathematics, Simon joined Barclays Capital in
an IT development role for the front office.
Can you describe what you do at the bank?
I work in a development team supporting one of the trading
desks. We act as the middle man between the people who do
the pricing mathematics and the traders; we write the software
used to price and book trades.
How did you get your current job?
I worked here on a summer internship in 2004, after which I was
offered a place on the graduate programme. Although in-depth
technical knowledge wasn’t required, I had to explain at interview
how I’d go about analysing and solving various scenarios.
Why do you like financial services?
I knew that banking would involve maths-related work, which I
like. And as I’d always played around with computers to come
up with new ways of applying different ideas, this job combined
both interests. I could have applied to software houses but that
wouldn’t give me the close contact with end users that I enjoy
in an in-house team. Our clients are internal, so we get to see
and speak to them virtually every day.
What do you like about your role?
When you’re presented with new work or something to fix,
you’re able to investigate different ideas and try out and learn
new technologies. From there, you progress to the project plan,
move forward on that and send the software out into the system.
Traders on the desk are always encouraging, and will happily
come back with good feedback, which is rewarding.
What skills are needed to do well?
We’re extremely busy and have to be responsive to the desk.
Good communication skills are essential, as the work involves
analysing each problem and bouncing ideas off technical experts.
Profile
Simon Pascoe
Software developer
Barclays Capital
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Simon’s tips:
Find out where your job would sit –
that helps you match your own skills to
the job’s requirements and demonstrates
good preparation – a key skill when
planning a new software project.
Some knowledge of fi nancial services
is needed: what various products and
services are and how they fi t within
the context of the business.
You need to be able to cope with more
than one thing at once – there will always
be high demands on your time, and
constant prioritising will be necessary.
Banking & Financial Markets Accounting in the City IT in Finance Employers
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Banking & Financial Markets Accounting in the City IT in Finance Employers
ABN AMRO
Company snapshot
ABN AMRO is a prominent international
bank, with a history going back to 1824.
We’re ranked 8th in Europe and 13th in the
world based on total assets, and have over
4,500 branches in 53 countries, a staff of
over 107,000 full-time equivalents and total
assets of €1,054.6bn (as at 31 March 2007).
Our strong corporate culture is based
on integrity, teamwork, respect and
professionalism, which enable us to make
more possible for our clients and our people
alike. We believe it’s a unique culture in the
financial sector. It’s a culture where people
who are open to new ideas, who aren’t
afraid to voice their opinions and who
are prepared to listen to other people’s
views will thrive. For more information
see our employer profile on
www.efinancialcareers.com
Graduate programme info
Approx. no. of graduate hires in 2007-08:
150 worldwide.
Divisions offering vacancies:
Mergers and Acquisitions, Equity or Fixed
Income Capital Markets, Structured Finance,
Trading, Sales and Research, Derivatives,
Risk Management, Asset Management and
Technology.
Typical duration of graduate programme:
12 to 18 months, depending on programme,
with six weeks of intensive training at our
exclusive academy in Amsterdam.
Application deadline:
2008 London graduate development
programme: 4 November 2007.
Apply via: www.graduate.abnamro.com
Please see our website for deadlines in other
regions as these will vary by location.
Internship programme info
Approx. no. of intern hires in 2007-08:
100 worldwide.
Divisions offering vacancies:
As above.
Typical duration of internship programme:
10 to 12 weeks during the summer.
Application deadline:
2008 London summer internship
programme: 27 January 2008.
Apply via: www.graduate.abnamro.com
Please see our website for deadlines in other
regions as these will vary by location.
Baillie Gifford
Company snapshot
Baillie Gifford is one of the leading privately
owned investment management firms in
the UK, and currently has over £50bn under
management or advice. It is also one of the
fastest growing firms in the sector, helped
by an impressive investment performance
record, an exclusive focus on investment
management and an effective partnership
scheme. The culture is one where
individuals can flourish while benefiting
from the support of a strong team-based
structure. We are looking for applicants
with or expecting a 1st or 2.1 degree in any
discipline. We also welcome applications
from those seeking an early change in their
professional career and from PhD students.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
10.
Divisions offering vacancies:
Investment management departments.
Typical duration of graduate programme:
3-year training programme.
Application deadline:
30 November 2007.
Apply via: www.bailliegifford.com
Internship programme info
Approx. no. of intern hires in 2007-08:
7.
Divisions offering vacancies:
Investment management departments.
Typical duration of internship programme:
8 weeks in July and August.
Application deadline:
31 January 2008.
Apply via: www.bailliegifford.com
Bank of America
Company snapshot
Bank of America serves clients in 175
countries and has relationships with 79%
of the Global Fortune 500. The bank’s
international growth strategy is to build a
profitable universal bank with global markets
as a core competency. Bank of America
targets European clients with strong US
interests and issuer and investor clients
with whom the bank already has a strong
relationship in the US. The company’s
Global Corporate and Investment Banking
group (GCIB) provides innovative services
in M&A, equity and debt capital raising,
lending, trading, risk management, treasury
management and research.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
120.
Divisions offering vacancies:
Global Investment Banking, Global &
Capital Markets, Risk, Treasury Services,
Technology & Middle Office.
Typical duration of graduate programme:
2-3 years depending on line of business.
Application deadline:
Global Corporate & Investment Banking:
14 November 2007.
Global Technology & Operations:
2 December 2007.
Apply via: www.bankofamerica.com/careers
Internship programme info
Approx. no. of intern hires in 2007-08:
120.
Divisions offering vacancies:
Global Investment Banking, Global &
Capital Markets, Risk, Treasury Services,
Technology & Middle Office.
Typical duration of internship programme:
10 weeks.
Application deadline:
16 January 2008.
Apply via: www.bankofamerica.com/careers
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Barclays Capital
Company snapshot
Barclays Capital is the investment banking
division of Barclays Bank PLC, which has
an AA long-term credit rating and a balance
sheet of over £996bn (€1.4 trillion). With a
distinctive business model, Barclays Capital
provides large corporate, government and
institutional clients with solutions to their
financing and risk management needs.
Barclays Capital has offices in 26 countries,
employs over 13,200 people and has the
reach and distribution power to meet the
needs of issuers and investors worldwide.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
600 globally, 300 in London.
Divisions offering vacancies:
Compliance, Corporate Communications,
Corporate Real Estate Services, Finance,
Global Financial Risk Management, Global
Marketing, Human Resources, Information
Risk Management, Investment Banking and
Debt Capital Markets, Legal, Operations,
Operational Risk Management, Quantitative
Analytics, Research, Sales, Strategy and
Planning, Structuring, Technology & Trading.
Typical duration of graduate programme:
N/A.
Application deadline:
Please see website for details.
Apply via:
www.barclayscapital.com/campusrecruitment
Internship programme info
Approx. no. of intern hires in 2007-08:
600 globally, 300 in London.
Divisions offering vacancies:
Compliance, Corporate Communications,
Corporate Real Estate Services, Finance,
Global Financial Risk Management, Global
Marketing, Human Resources, Information
Risk Management, Investment Banking and
Debt Capital Markets, Legal, Operations,
Operational Risk Management, Quantitative
Analytics, Research, Sales, Strategy and
Planning, Structuring, Technology & Trading.
Typical duration of internship programme:
10-week internship.
Application deadline:
The deadline to apply for summer
internships is 31 January 2008, although it is
advisable to apply early.
Apply via:
www.barclayscapital.com/campusrecruitment
Bloomberg
Company snapshot
Bloomberg is the leading provider of real-
time financial news, data and analysis.
Leading corporations, news organisations,
financial professionals and individuals in
over 127 countries rely on Bloomberg.
Available 24 hours a day, to more than
250,000 financial professionals worldwide,
the ‘Bloomberg Professional’ service
seamlessly integrates data, news, analytics,
multimedia reports and trading capabilities
into a single sophisticated platform.
We have many areas in which you can
shine. You can work for our core business,
the Bloomberg Professional service, or
the teams of our media products. We
offer opportunities in finance, sales, IT,
programming, project management, news
and summer internships.
Visit careers.bloomberg.com
Graduate programme info
Approx. no. of graduate hires in 2007-08:
400+ in the UK.
Divisions offering vacancies:
Financial Sales, Data Analysis, Software
Development, Information Technology,
Project Management, News.
Typical duration of graduate programme:
Graduates join as permanent employees
with real responsibility from the start.
Application deadline:
Recruitment is ongoing with no
application deadlines.
Apply via: careers.bloomberg.com
Internship programme info
Approx. no. of intern hires in 2007-08:
120 in the UK.
Divisions offering vacancies:
Financial Sales, Data Analysis, Software
Development, Information Technology,
Project Management, Marketing, Accounts,
HR and News.
Typical duration of internship programme:
10 weeks.
Application deadline:
Internship applications close at the end of
February 2008.
Apply via: careers.bloomberg.com
Company snapshot
Barclays Global Investors (BGI) is one of
the world’s largest asset managers and
a leading global provider of investment
management products and services. From
inventing the world’s first index fund in 1971
and the first quantitative active strategy in
1978, we have pioneered change and led
investment innovation. Today we manage
more than $1.86 trillion (£950 billion) worth
of assets for over 2,900 clients throughout
the world. We’ve developed a unique
approach to equity and fixed income asset
management, combining quantitative
scientific analysis with human ingenuity to
become creators and inventors in our field.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
65.
Divisions offering vacancies:
Active Equities, Indexed Equities, Fixed
Income (active/indexed), Business
Development, Technology.
Typical duration of graduate programme:
18 months.
Application deadline:
14th October 2007.
Apply via: www.bgigraduatecareers.com
Internship programme info
Approx. no. of intern hires in 2007-08:
40.
Divisions offering vacancies:
Active Equities, Indexed Equities, Fixed
Income (active/indexed), Business
Development, Technology.
Typical duration of internship programme:
12 weeks.
Application deadline:
January 2008. Please see website.
Apply via: www.bgigraduatecareers.com
Barclays Global Investors
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Credit Suisse
Company snapshot
Credit Suisse provides investment banking,
private banking and asset management
services to clients across the world. Active in
50 countries and employing 45,000 people,
this bank is a true pioneer in global finance.
In 2006, Credit Suisse celebrated its 150th
anniversary and launched an integrated
banking platform delivering comprehensive
financial solutions across a diverse
global client base. There are exceptional
opportunities for further growth in new
product areas and emerging markets; there
are equally exceptional opportunities for the
people who can deliver that growth.
Credit Suisse offers intellectual challenges,
high rewards and global development
potential for individuals who share an
enthusiasm for business-critical innovation.
Graduate programme info
Approx no. of graduate hires in 2007-08:
200 graduates.
Divisions offering vacancies:
Asset Management, Investment Banking,
Fixed Income, Equities, Finance, Private
Banking, Information Technology and other
support functions.
Typical duration of graduate programme:
Dependent on programme.
Application deadline:
2008 London graduate development
programme: 4 November, 2007.
Full-time opportunities: 23 November, 2007.
For other deadlines, please see our website.
Apply via: www.credit-suisse.com/careers
Internship programme info
Approx no. of intern hires in 2007-08:
245 summer interns.
Divisions offering vacancies:
Asset management, investment banking,
fixed income, equities, finance, private
banking, shared services & information
technology.
Typical duration of internship programme:
Dependent on programme.
Application deadline:
Please see our website for specific dates
Apply via: www.credit-suisse.com/careers
Citi
Company snapshot
BNP Paribas is a global leader in banking
and financial services, ranking amongst the
world’s top 15 banks by market capitalisation
and total assets. Our corporate and
investment banking division is one of our
core businesses – with over 14,000 people
and a presence in 85 countries across
five continents.
At BNP Paribas, we like to do things our own
way. We don’t offer standard three-month
rotations for graduates. You will come in to a
real job from day one, which means a more
intense experience, earlier responsibility and
greater opportunity to develop.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
500 global vacancies.
Divisions offering vacancies:
We have global opportunities in Fixed
Income, Equity Derivatives, Coverage,
Corporate Finance, Technology, ECEP,
Structured Finance and Functions.
Typical duration of graduate programme:
Minimum 1 year.
Application deadline:
See website for details.
Apply via: www.graduates.bnpparibas.co.uk
Internship programme info
Approx. no. of intern hires in 2007-08:
Varies by programme.
Divisions offering vacancies:
As per above.
Typical duration of internship programme:
Summer: 8-12 weeks.
Long term: 4-11 months.
Application deadline:
See website for detail.
Apply via: www.graduates.bnpparibas.co.uk
Company snapshot
Citi is the most complete financial partner
to corporations, financial institutions,
institutional investors and governments in
the world. As a global leader in banking,
capital markets, and transaction services,
with a presence in many countries dating
back more than 100 years, our Markets
and Banking division enables clients to
achieve their strategic financial objectives
by providing them with cutting-edge ideas,
best-in-class products and solutions, and
unparalleled access to capital and liquidity.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
250.
Divisions offering vacancies:
Investment Banking, Corporate Banking,
Sales and Trading, Capital Markets, Global
Transaction Services, Investment Research,
Technology, Operations and HR.
Typical duration of graduate programme:
Varies by area, see www.careers.citigroup.
com for more details.
Application deadline:
Full time programme: 4 November 2007.
Apply via: https://www.citi.gtios.com
Internship programme info
Approx. no. of intern hires in 2007-08:
250.
Divisions offering vacancies:
Investment Banking, Corporate Banking,
Sales and Trading, Capital Markets, Global
Transaction Services, Investment Research,
Technology, Operations and HR.
Typical duration of internship programme:
10 weeks.
Application deadline:
Summer programme 20 January 2008.
Apply via: https://www.citi.gtios.com
BNP Paribas
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Dresdner Kleinwort
Company snapshot
Dresdner Kleinwort is the investment
banking division of Dresdner Bank AG and
a member of the Allianz Group, one of the
world’s leading financial services providers.
With headquarters in London and Frankfurt
and an international network of offices,
Dresdner Kleinwort provides a wide range
of investment bank products and services to
European and international clients through
its Global Banking and Capital Markets
business lines.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
100.
Divisions offering vacancies:
Global Banking, Capital markets – Sales,
Research, Trading and Structuring, Risk
Management and Information Technology.
Typical duration of graduate programme:
8-week training programme.
Application deadline:
Graduate deadline:
8 November 2007.
Apply via:
www.dresdnerkleinwort.com/graduates
Internship programme info
Approx. no. of intern hires in 2007-08:
100.
Divisions offering vacancies:
Global Banking, Capital Markets – Sales,
Research, Trading and Structuring, Risk
Management and Information Technology.
Typical duration of internship programme:
10 weeks: 1 week’s training followed by a
9-week internship.
Application deadline:
Summer internship deadline:
8 February 2008.
Apply via:
www.dresdnerkleinwort.com/graduates
Deutsche Bank
Company snapshot
Deutsche Bank has been a global player
for more than 135 years, from financing the
building of the Baghdad railway in the 19th
century to being the first German bank to list
on the NYSE in 2001. Today it is a financial
services provider, top executor of M&A
deals, Europe’s number one fund manager
and the global leader in securities trading.
At Deutsche Bank ‘A Passion to Perform’
is more than just a claim – it’s the way it
does business, attracting the brightest
talent to deliver an unmatched franchise.
It is committed to being the best financial
services provider in the world. Its breadth
of experience, leading-edge capabilities
and financial strength create value for all its
stakeholders: clients, investors, employees,
and society as a whole.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
Over 250 graduates in the City of London.
Divisions offering vacancies:
Asset Management, Finance, Global
Banking, Global Markets, Human
Resources, Legal, Risk & Capital,
Operations, Private Wealth Management,
and Technology.
Typical duration of graduate programme:
18 months.
Application deadline:
Analyst programme deadline:
1 November 2007.
Apply via: www.db.com/careers
Internship programme info
Approx. no. of intern hires in 2007-08:
Over 200 positions in the City of London.
Divisions offering vacancies:
Asset Management, Finance, Global
Banking, Global Markets, Human
Resources, Legal, Risk & Capital,
Operations, Private Wealth Management
and Technology.
Typical duration of internship programme:
9-10 weeks.
Application deadline:
For Global Banking, Global Markets, Asset
Management and PWM: 15 January 2008
For Finance, Group Technology &
Operations, Human Resources, Risk, Legal
and Capital: 15 February 2008.
Apply via: www.db.com/careers
Company snapshot
The European Investment Bank was created
by the Treaty of Rome in 1958 as the long-
term lending bank of the European Union.
The task of the bank is to contribute towards
the integration, balanced development
and economic and social cohesion of the
EU member states.
The EIB raises substantial volumes of
funds on the capital markets which it lends
on favourable terms to projects furthering
EU policy objectives. The EIB continuously
adapts its activity to developments in
EU policies.
The EIB, based in Luxembourg, offers the
opportunity to work for Europe in a truly
international environment.
The bank offers professional and managerial
jobs at different levels, covering a wide range
of professions. These positions require a
university degree and an adequate level
of relevant experience.
Graduate programme info
The EIB offers a limited number of
internships for university graduates with less
than one year of professional experience
who wish to acquire an understanding of the
work of the bank. The internships normally
last between one and five months, and they
cannot be extended beyond the maximum
length of five months. Most are based at the
EIB’s headquarters in Luxembourg.
Apply via: www.eib.org/about/jobs
European Investment Bank
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Fitch Ratings
Company snapshot
Fitch Ratings is a leading global rating
agency committed to providing the world’s
credit markets with accurate, timely and
prospective credit opinions. Built on a
foundation of organic growth and strategic
acquisitions, Fitch Ratings has grown rapidly
during the past decade gaining market
presence throughout the world and across
all fixed income markets. Fitch Ratings
is dual-headquartered in New York and
London, operating offices and joint ventures
in more than 50 locations and covering
entities in more than 90 countries. Fitch
Ratings is a majority owned subsidiary of
Fimalac, S.A., an international business
support services group headquartered in
Paris, France.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
25.
Divisions offering vacancies:
Structured Finance, Corporates,
Financial Institutions.
Typical duration of graduate programme:
18-24 months, depending on
the programme.
Application deadline:
To be confirmed for 2008.
Apply via: www.fitchgraduatesuk.com
Internship programme info
Approx. no. of intern hires in 2007-08:
20.
Divisions offering vacancies:
Across the business.
Typical duration of internship programme:
Typical duration is 3 months. Ranges from 2
to 6 months.
Application deadline:
Rolling applications.
Apply via: www.fitchgraduatesuk.com
Fidelity International
Company snapshot
Fidelity* is an investment management
company managing more than $280.7bn
for millions of private and institutional
investors around the world. Through
combining a global reach with a local focus,
we have become the UK’s largest mutual
fund manager and the European leader in
pan-European equities. The independence
we enjoy as a privately owned company
enables us to concentrate on developing
innovative products and providing the
highest levels of customer service.
*Fidelity means Fidelity International Limited
(FIL), established in Bermuda, and its subsidiary
companies. Assets and resources as at
30.03.07 are those of FIL. Source IMA based on
institutional and retail funds under management
as at April 2007.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
28.
Divisions offering vacancies:
Accounting & Finance, Investment,
Operations, Risk Management &
Compliance, Sales & Marketing (European
Rotation Programme) and Systems.
Typical duration of graduate programme:
Varies by business area, typically two and a
half years.
Application deadline:
1 December 2007 for investment,
31 December 2007 for all other
programmes.
Apply via: www.fidelityrecruitment.com
Internship programme info
Approx. no. of intern hires in 2007-08:
6.
Divisions offering vacancies:
Accounting & Finance, MultiManager and
Sales & Marketing (European Rotation
Programme).
Typical duration of internship programme:
Summer internships of 10 weeks.
Application deadline:
31 January 2008.
Apply via: www.fidelityrecruitment.com
HSBC
Company snapshot
HSBC provides a comprehensive range
of financial services to over 125 million
customers worldwide. HSBC’s Corporate,
Investment Banking and Markets (CIBM)
is an emerging markets-led and financing
focused business that provides tailored
financial solutions to major government,
corporate and institutional clients worldwide.
Managed as a global business, CIBM’s
dedicated offices around the globe serve
the subsidiaries and offices of our clients in
more than 60 countries and territories.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
150 globally.
Divisions offering vacancies:
Corporate Banking, Global Markets,
Global Capital Markets, Investment
Banking, Infrastructure (Global Markets
Operations, Finance, Compliance and
Credit Risk Management), Research,
HSBC Investments, HSBC Amanah,
Private Banking.
Typical duration of graduate programme:
Varies depending on business area.
Application deadline:
End of November 2007.
Apply via: hsbcnet.com/ibcareers
Internship programme info
Approx. no. of intern hires in 2007-08:
70.
Divisions offering vacancies:
Corporate Banking, Global Markets,
Global Capital Markets, Investment
Banking, Infrastructure (Global Markets
Operations, Finance, Compliance and
Credit Risk Management), Research,
HSBC Investments, HSBC Amanah,
Private Banking.
Typical duration of internship programme:
10 weeks.
Application deadline:
End of February 2008.
Apply via: hsbcnet.com/ibcareers
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Lehman Brothers
Company snapshot
Experience Lehman Brothers. Make an
impact. Engage your passion. Realise
your potential.
An innovator in global finance, Lehman
Brothers serves the financial needs of
corporations, governments and municipalities,
institutional clients, and high-net-worth
individuals worldwide. Founded in 1850,
Lehman Brothers maintains leadership
positions in capital markets (including equity
and fixed income sales, trading and research),
investment banking, and investment
management (including private investment
management, asset management and private
equity). The firm is headquartered in New
York, with regional headquarters in London
and Tokyo, and operates in a network of
offices around the world.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
300.
Divisions offering vacancies:
Investment Banking Division, Capital
Markets Division (Equities, Fixed
Income & Prime Services), Investment
Management Division, Private Equity,
Corporate Divisions (including IT, Operations
specialist programmes and a Corporate
rotational programme).
Typical duration of graduate programme:
2-3 years.
Application deadline:
Deadlines vary. Check with your careers
service or graduate recruiting contact.
Apply via: www.lehman.com/careers
Internship programme info
Approx. no. of intern hires in 2007-08:
300.
Divisions offering vacancies:
Investment Banking Division, Capital
Markets Division (Equities, Fixed Income &
Prime Services), Investment Management
Division, Private Equity, Corporate
Division (Corporate Advisory, IT, Finance,
Operations, Risk Management).
Typical duration of internship programme:
10-12 weeks for internships.
6-12 months for industrial placements.
Application deadline:
Deadlines vary. Check with your careers
service or graduate recruiting contact.
Apply via: www.lehman.com/careers
Company snapshot
Lazard is a premier financial services firm
committed to excellence, independence,
intellectual rigour, integrity and creativity
for our clients on a global scale. Lazard
is a global firm, with a team of over 2,000
individuals operating across 16 countries.
We solve complex financial challenges for
a client base that includes corporations,
partnerships, institutions, governments
and high-net-worth individuals. We are an
independent firm, free of the conflicts that
can arise at other financial institutions, and
we maintain long-standing relationships
with business leaders and decision makers
around the world.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
15.
Divisions offering vacancies:
M&A advisory, Financing (ECM & DCM
advisory) and Restructuring.
Typical duration of graduate programme:
3 months’ training.
Application deadline:
Analysts: 16 November 2007.
Apply via: www.lazard.com/apply
Internship programme info
Approx. no. of intern hires in 2007-08:
25.
Divisions offering vacancies:
M&A advisory, Financing (ECM & DCM
advisory) and Restructuring.
Typical duration of internship programme:
7 weeks.
Application deadline:
Interns & 1-year placement: 1 February 2008.
Apply via: www.lazard.com/apply
Lazard
Company snapshot
The Macquarie Group is a diversified
international provider of specialist investment,
advisory and financial services, with over
10,000 employees in 24 countries across
Europe, Asia, the Middle East, the Americas,
Africa and Australasia. Macquarie has reported
successive years of record growth and profits
for the past 15 years and has seen its presence
in the European market increase significantly.
Our success comes from supporting the
ideas of our people. We seek motivated,
independent thinkers, whose talent and
initiative will drive our future growth.
In joining Macquarie, you will have the
opportunity to be part of a successful
team working in a fast-paced and dynamic
environment where your contribution is valued
from day one.
Graduate opportunities exist within the
Investment Banking Group (Corporate Finance
Advisory and Banking Funds) the Treasury &
Commodities Group, the Financial Operations
Division, the Risk Management Group, the
Equity Markets Group and our Information
Technology Division in both Europe and
the UAE.
To apply please visit our website:
www.macquarie.com/eu
Graduate programme info
Approx. no. of graduate hires in 2007-08:
85.
Divisions offering vacancies:
Investment Banking Group, Treasury &
Commodities Group, Equity Markets Group,
Information Services Division, Financial
Operations Division and Risk
Management Group.
Typical duration of graduate programme:
Permanent.
Application deadline:
5 November 2007.
Apply via: www.macquarie.com/eu
Internship programme info
Approx. no. of intern hires in 2007-08:
50.
Divisions offering vacancies:
Investment Banking Group.
Typical duration of internship programme:
10 weeks.
Application deadline:
11 January 2008.
Apply via: www.macquarie.com/eu
Macquarie
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RBC Capital Markets
Company snapshot
Every investment bank can promise
challenge and responsibility to its
graduates. The question is, how long
might you have to wait for those doors of
opportunity to open?
With RBC Capital Markets, they’ll open
very quickly. That’s precisely because we’re
not the world’s biggest investment bank.
We’re ranked in the global top 17, which
means we’re big enough to be a serious
player in the financial markets, yet small
enough to offer our people really early
responsibility. There are no waiting rooms,
no hiding places. If you’re good enough,
we’ll trust your ability to dig deep and
deliver the goods.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
10-12
Divisions offering vacancies:
We also take a small number of graduates
into the middle office.
Typical duration of graduate programme:
Unique 17-week programme (rotating
across fixed income sales & trading,
debt capital markets, structuring, foreign
exchange, commodities & infrastructure
finance).
Skills required:
Minimum 2.1 or equivalent degree.
Genuine interest in finance with a strong
desire to progress quickly.
Additional languages an advantage but by
no means a prerequisite to applying.
Application deadline:
23 November 2007.
Apply via: www.rbccm.com/careers
Internship programme info
Approx. no. of intern hires in 2007-08:
20.
Divisions offering vacancies:
Capital Markets (Front Office, Middle Office
and Operations), Investment Banking,
Global Financial Institutions, Global
Wealth Management & IT.
Typical duration of internship programme:
8-10 weeks.
Application deadline:
8 February 2008.
Apply via: www.rbccm.com/careers
Merrill Lynch
Company snapshot
Merrill Lynch is a leading wealth
management, capital markets and advisory
company, with offices on six continents and
client assets of more than $1.6 trillion. The
company is a global trader and underwriter
of securities and derivatives across a
broad range of asset classes and serves
as a strategic advisor to clients. Through
its two core businesses – Global Markets
& Investment Banking and Global Private
Client – Merrill Lynch provides a range of
services for individuals, small and mid-size
businesses, corporations, institutions and
governments. Merrill Lynch owns just under
half of BlackRock, one of the world’s
largest publicly traded investment
management companies.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
250.
Divisions offering vacancies:
Investment Banking, Global Markets,
Research, Technology, HR and
Global Private Client.
Typical duration of graduate programme:
2 years.
Application deadline:
Full-time programme: November.
Apply via: www.ml.com/careers/europe
Internship programme info
Approx. no. of intern hires in 2007-08:
200.
Divisions offering vacancies:
Investment Banking, Global Markets,
Research, Technology, HR and
Global Private Client.
Typical duration of internship programme:
9 weeks.
Application deadline:
Summer programme: December.
Apply via: www.ml.com/careers/europe
Morgan Stanley
Company snapshot
Morgan Stanley is one of the world’s largest
diversified financial services companies,
with a reputation for excellence in advice
and execution on a global scale. The firm
serves institutional and individual investors
and investment banking clients, including
corporations, governments and other entities
around the world. We offer new ideas and
effective execution, creating opportunities
and insightful solutions to complex financial
problems. Our 45,000 employees across
31 countries provide underwriting, sales,
trading and research for almost every
financial instrument, as well as merger
and acquisition advice, privatisation and
financial restructuring, foreign exchange,
commodities, and real estate finance.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
250.
Divisions offering vacancies:
Investment Banking, Sales & Trading,
Investment Management, Credit Risk
Management, Technology and
Finance & Operations.
Typical duration of graduate programme:
2-3 years.
Application deadline:
11 November 2007.
Apply via:
www.morganstanley.com/careers/recruiting
Internship programme info
Approx. no. of intern hires in 2007-08:
150.
Divisions offering vacancies:
Investment Banking, Sales & Trading,
Investment Management, Private Wealth
Management, Technology and
Finance & Operations.
Typical duration of internship programme:
10 weeks.
Application deadline:
31 December 2007.
Apply via:
www.morganstanley.com/careers/recruiting
Banking & Financial Markets Accounting in the City IT in Finance Employers
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Rothschild
Company snapshot
Rothschild is a top-tier international
investment bank with offices in cities in
over 30 countries, including London, Paris,
Frankfurt, Milan, New York, Toronto, Hong
Kong, Singapore, Sydney and Beijing. We
have over 2,000 employees worldwide.
We provide objective relationship-based
advice and services to our clients worldwide
and work with them to achieve their strategic
and financial goals.
Rothschild’s principal activities are
Investment Banking (M&A, Debt Advisory
and Equity Capital Markets, the latter of
which is conducted through our joint venture
with ABN AMRO), Corporate Banking and
Private Banking.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
30.
Divisions offering vacancies:
Investment Banking (M&A, Debt Advisory
and Equity Capital Markets) and
Corporate Banking.
Typical duration of graduate programme:
Graduates complete a four-month training
programme, which includes formal
classroom training as well as rotations
through our principal divisions.
Application deadline:
Graduate programme: 5 November 2007.
Apply via: www.rothschild.com
Internship programme info
Approx. no. of intern hires in 2007-08:
Summer interns: approximately 30.
Long-term interns: various.
Divisions offering vacancies:
In the UK, we offer a summer internship
programme in our Investment Banking
and Corporate Banking divisions. We also
take long-term interns into our Investment
Banking division.
Typical duration of internship programme:
Our summer internship programme lasts for
10 weeks from early July to early September.
Our long-term internship posts run for
periods of between three and six months.
Application deadline:
Summer internship programme:
7 January 2008.
Long-term internship programme:
ongoing.
Apply via: www.rothschild.com
Royal Bank of Scotland
Company snapshot
The Royal Bank of Scotland is the third
largest bank in Europe and the tenth largest
in the world by market capitalisation. With
over 150,000 employees, we now serve
more than 36 million customers globally. We
continue to grow rapidly.
Global Banking & Markets is a leading
banking partner to the world’s corporations
and financial and governmental institutions,
providing an extensive range of debt
financing, risk management and investment
services. UK Corporate Banking is the UK’s
number one corporate bank. Together, we
have relationships with 95% of the FTSE 100
and 80% of the Fortune 100.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
375.
Divisions offering vacancies:
Global Banking & Markets – Debt Markets,
Treasury & Investor Products, Asset and
Portfolio Management, Sector Corporate
Finance, Corporates, Financial Institutions,
Risk, Finance, Specialised Lending
Services, Technology, Operations.
UK Corporate Banking – Corporate
Banking; Commercial Banking; Domestic
Banking Services; International Banking
Services; Lombard; RBS Invoice Finance;
Chief Administrative Office; Corporate
and Institutional Banking; Corporate and
Structured Finance.
Typical duration of graduate programme:
12 months.
Application deadline:
Please refer to our websites.
Apply via: www.rbs.com/gbmgraduates
www.rbs.com/ukcbgraduates
Internship programme info
Approx. no. of intern hires in 2007-08:
240 worldwide.
Divisions offering vacancies:
Global Banking & Markets.
UK Corporate Banking.
Typical duration of internship programme:
UK: Easter Insight Programme (2 weeks).
Worldwide:
Summer Internship Programme (10 weeks),
10-20 Internships (6-12 months).
Application deadline:
Please refer to our websites.
Apply via: www.rbs.com/gbmgraduates
www.rbs.com/ukcbgraduates
Company snapshot
We are a leading player in the European
energy markets. As an asset-backed energy
trading company RWE Trading has a keen
understanding of the forces driving the
markets. At RWE Trading we trade not only
the typical energy commodities gas, oil, coal
and power both UK and continental, but
also a range of financial derivatives. We
are also a major player in the emerging
environmental markets.
RWE Trading runs trading floors in London
and Swindon in the UK, as well as Essen
in Germany. We combine all the skills and
expertise of any major investment bank,
with the excitement of working within the
energy markets.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
We typically look to recruit six graduates per
year, though we will always have positions for
talented individuals.
Divisions offering vacancies:
We offer our talent the opportunity to
experience several different areas of our
business: Risk, Front Office, S&V
– or specialise in just one or two.
Typical duration of graduate programme:
Our Talent Pool scheme typically lasts for 18
months.
Application deadline:
We are always recruiting and are keen to
receive CVs all year round.
Apply via: Trading.jobs.trading@rwe.com
Placement programme info
Approx. no. of placement hires in 2007-08:
8-12 (UK only).
Divisions offering vacancies:
Risk, Analysis, Change Management, IS,
Short Term Position Management, et al.
Typical duration of placement programme:
12 months.
Application deadline:
Jan-Feb 2008.
Apply via: Trading.jobs.trading@rwe.com
RWE Trading
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Standard Chartered Bank
Company snapshot
At Standard Chartered we have an ambitious
vision supported by dynamic values. We’re
one of the world’s most international banks
leading the way in Asia, Africa and the
Middle East. We are at home in a variety
of cultures and offer the best of all worlds
by combining our international expertise
with local insights. We are looking to attract
highly ambitious, intelligent, creative and
achievement-orientated graduates who want
to broaden their horizons and have a desire
to build an extraordinary career in banking.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
370 globally.
Divisions offering vacancies:
Wholesale Banking, Consumer Banking,
Finance, Human Resources, Group
Technology, Operations, Legal & Compliance
and Assurance and Corporate Real
Estate Services.
Typical duration of graduate programme:
2 years.
Application deadline:
International graduate programme:
February 2008.
Apply via:
www.standardchartered.com/graduates
Internship programme info
Approx. no. of intern hires in 2007-08:
60 globally.
Divisions offering vacancies:
Wholesale Banking, Consumer Banking,
Finance, Human Resources, Group
Technology, Operations, Legal & Compliance
and Assurance and Corporate Real
Estate Services.
Typical duration of internship programme:
10 weeks.
Application deadline:
Internship deadline: March 2008.
Apply via:
www.standardchartered.com/graduates.
Tradition Financial
Services Ltd.
Company snapshot
Founded in 1985, Tradition Financial
Services (TFS) is a market leader in the
brokering of financial and non-financial
products. With offices worldwide, the
company covers currency options, equity
derivatives, freight, precious metals,
energy, property derivatives and pulp &
paper markets. TFS Energy brokers a full
spectrum of OTC energy and energy-related
physical and derivative products – including
electricity, natural gas, crude oil and refined
products, coal, environmental products
and weather derivatives – and exchange-
traded futures and options. TFS is a
subsidiary of Compagnie Financière
Tradition (CFT), one of the world’s top
three interdealer brokers in financial and
commodity-related products.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
No fixed number, but average is 4 per year
in London.
Divisions offering vacancies:
This could be in any of our London
departments: Equities, Energy or
Currencies, depending on positions
available.
Typical duration of graduate programme:
The broker training programmes are
usually 6 to 8 weeks.
Application deadline:
Please refer to our website
www.tfsbrokers.com and our adverts on
www.students.efinancialcareers.co.uk
around April / May.
Apply via: www.tfsbrokers.com
and www.efinancialcareers.com
Internship programme info
Approx. no. of intern hires in 2007-08:
Ad hoc.
Divisions offering vacancies:
Ad hoc.
Typical duration of internship programme:
Variable.
Application deadline:
N/A.
Apply via: www.tfsbrokers.com
UBS
Company snapshot
UBS is one of the world’s leading financial
firms, serving a discerning international
client base. Its business, global in scale, is
focused on growth. As an integrated firm,
UBS creates added value for clients by
drawing on the combined resources and
expertise of all its businesses.
UBS is the leading global wealth manager,
a top tier investment banking and securities
firm and one of the largest global asset
managers. In Switzerland, UBS is the market
leader in retail and commercial banking.
Graduate programme info
Approx. no. of graduate hires in 2007-08:
500+ across Europe.
Divisions offering vacancies:
All.
Typical duration of graduate programme:
18-24 months, depending on the
programme.
Application deadline:
London: 4 November. Please check our
website for details.
Zurich: year-round; no deadline.
Apply via: www.ubs.com/graduates
Internship programme info
Approx. no. of intern hires in 2007-08:
500+ across Europe.
Divisions offering vacancies:
All.
Typical duration of internship programme:
London: 10 weeks (placements
up to 12 months).
Zurich: 3-6 month placements.
Application deadline:
London: 27 January 2008.
Zurich: year-round; no deadline.
Apply via:www.ubs.com/graduates
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Employers IT in Finance Accounting in the City Banking & Financial Markets
www.structuredproductsonline.com
About this site: Structured Products online.
Key figures: 8,000 unique visitors a month.
Typical/target audience: Wholesale market
for derivatives-based products.
Product offering: Covers the market for
guaranteed equity products, structured
notes, index products, alternative
investments and funds of funds; equity, fixed
income. News, features, regulatory data,
comment and profiles. Analysis of new deals
and coverage of regulatory and tax changes.
Structured Products Extra daily news alert.
Sectors covered: Finance, alternative
investments, derivatives, capital guarantees.
Countries/languages covered: Published
in English; coverage includes UK, Europe,
North and South America and Asia.
Most known for: News, product reviews
and 11 global events
Best bit for students: News, product
reviews and searchable on-line archive.
For more information, here is a selection of our partner sites:
www.creditmag.com
About this site: Credit magazine online.
Typical/target audience: Senior execs in
pension funds, mutual funds, insurance
companies, banks, brokerages and hedge
funds specialising in credit.
Product offering: Latest thinking in
corporate bonds; market sentiment; how
developments affect your peers, your
competitors and your own institution.
Topics include: Analysis and comment on
key issues, developments and trends.
Sectors covered: Corporate bonds,
derivatives, structured credit and
leveraged finance.
Countries/languages covered: Published
in English but with global coverage
including UK, Asia, Europe, North and
South America.
Most known for: News, moves, opinion.
Best bit for students: News, product
reviews and searchable on-line archive.
www.watersonline.com
About this site: Controlled circulation
monthly magazine; updated weekly online.
Key figures: 10,263 qualified subscribers.
Typical/target audience: Chief information
officers, analysts, chief technology officers,
market data executives.
Product offering: Feature led articles on
technological issues facing the buy- and
sell-sides. Monthly & weekly news alerts,
breakfast briefings.
American Financial Technology Awards host
Annual rankings survey.
Sectors covered: Exchanges, software/
hardware/market data vendors, Buy-side:
institutional investors, pension funds,
insurance companies, hedge funds, funds
of funds, investment trusts, energy firms.
Sell-side: securities firms, broker/dealer,
investment, merchant banks.
Countries/languages covered: USA,
UK and parts of Europe and Asia.
www.risk.net
About this site: Latest issue and archive to
2002; Risk training courses & conferences.
Key figures: 11,500 copies printed monthly.
Typical/target audience: Investment and
asset management; hedge and pension
funds; banks; governments; supranationals;
consultants; insurance; accountants;
lawyers; software vendors; recruiters.
Product offering: Features, technical
papers, columnists, profiles, guest articles,
guides and handbooks, special reports.
Countries/languages covered: English,
Italian Spanish, German, French, Japanese,
Chinese and Korean.
Sectors covered: Derivatives; risk
manage-ment; Basel II, insurance; hedge
funds; structured products; commodities;
pensions; CDOs; IAS 39; corporates.
Most known for: Monthly magazine for risk
management and derivatives industry.
Best bit for students: Wide coverage.
www.hedgefundsreview.com
About this site: Monthly print publication,
daily email newsletters and online bulletins.
Key figures: Readership of 10,000.
Typical/target audience: Investors, fund
managers and service providers.
Product offering: News, opinion and
analysis; fund managers’ views; strategy
reviews; performance analysis; fund
closures, litigation and mandates; trading
tips, academic papers and special domicile
supplements; news and five-year archive.
Sectors covered: Hedge fund manage-
ment, investing in hedge funds.
Countries/languages covered:
Distribution: 60% Europe, 30% North
America, 10% Asia-Pacific/rest of the world.
Most known for: Objective analysis in a
market full of subjective publications.
Best bit for students: Views from actual
hedge fund managers – find out what it’s
really like rather than reading the theory.
www.opriskandcompliance.com
About this site: Online and monthly in print.
Key figures: Readership c. 8,000 monthly.
Typical/target audience: Heads of
operational risk and compliance, chief risk
officers, heads of IT and those responsible
for operational risk or compliance strategies.
Product offering: Information on regulation
changes and initiatives, including Basel II,
Sarbanes-Oxley, and MiFID; news on
operational risk and compliance software
and consulting services; coverage of
money laundering, financial crime, business
continuity, corporate governance, and other
hot topics; monthly surveys on various
topics; in-depth features on new regulations;
articles by prominent industry experts.
Countries/languages covered: Global
distribution, published in English.
Most known for: Providing up-to-date
information on important regulation,
implementation and technology issues.
Just going with a name. Going where you’ll
make a name for yourself.
© 2007 Citigroup Inc. Authorised and regulated by the Financial Services Authority. Citi and Arc Design and Let’s Get It Done are service marks of Citigroup Inc. Citigroup Inc. is an equal
opportunities employer.
- Investment Banking
- Corporate Banking
- Capital Markets
- Sales & Trading
- Global Transaction Services
- Technology
- Human Resources
- Operations
What do you want to accomplish? An impressive title, or
something more? Last year one of our colleagues helped
broker a deal that helped an African country reduce its debt
portfolio through payment restructuring — only six months
after graduation. Call us when you’re ready to make your mark.
The right address to find your first job in the City
The eFinancialCareers.com Student Centre is the number one graduate website for jobs and career advice in banking and the financial
markets. Visit the Student Centre for the best graduate jobs and internships. You can also practise our numerical tests and investment
challenges and get expert insider knowledge. For the best chance to succeed in the City, the Student Centre is the right address.
www.efinancialcareers.com/students

Your vision: To reach for the top. Our promise: Lifting you even higher.

You thrive on achievement and you want to see just how far your talent will take you. We do too. That’s why, at Deutsche Bank, you’ll be given the opportunity to realize your greatest ambitions. As one of the world’s leading financial institutions, we have the platform to take your career higher. You will be part of an innovative, modern corporate culture that celebrates achievement. Expect the better career. Find out more at www.db.com/careers Analyst Program Application Deadline: 1 November 2007 Analyst Internship Program Application Deadlines: Asset Management, Global Banking, Global Markets and Private Wealth Management - 15 January 2008 Group Technology and Operations, Human Resources, Finance, Legal, Risk and Capital - 15 February 2008

A Passion to Perform.

Banking & Financial Markets

Accounting in the City

IT in Finance

Employers

Contents
Banking and financial markets
A highly competitive industry ...................................................... 02 Rungs on the ladder .............................................................................. 06 The recruitment process ................................................................... 08 Graduate training schemes ........................................................... 12 Internships ....................................................................................................... 16 Mergers & acquisitions ....................................................................... 20 Capital markets ........................................................................................... 26 Sales, trading & research ................................................................ 32 Foreign exchange .................................................................................... 36 Corporate banking .................................................................................. 38 Fund management .................................................................................. 42 Hedge funds .................................................................................................. 46 Private equity ................................................................................................ 50 Investment consulting ......................................................................... 52 Global custody ............................................................................................ 53 Wealth management ............................................................................. 54 Operations ....................................................................................................... 58 Risk management .................................................................................... 60 Compliance ..................................................................................................... 62 Data providers & rating agencies ............................................ 64 Insurance ........................................................................................................... 68

How to use this guide
Sarah Butcher Editor eFinancialCareers.com

This guide is designed to be used together with the Student Centre on the eFinancialCareers.com website. It will help you to navigate your way around the competitive world of financial services, and provides an introduction to the careers on offer and different sectors. As well as information on front-office roles, we have sections on IT in finance and opportunities for accountants. On the website you will find the latest news on graduate hiring and vacancies, tips from senior industry figures, advice on internships and getting a job from those who’ve been through the process, plus the chance to discuss what’s going on with other hopefuls and those already in the industry. By using this guide and the website, you will be among the best-informed candidates around – half the battle in the highly competitive world of finance. Good luck in your job search,

Sarah Butcher

Accounting in the City
Accounting City careers .................................................................... 70 Front office careers ................................................................................. 72

Student Centre
Like this book? You’ll love the website. Our Student Centre is the place to go for the inside track on getting your first job in finance. Check regularly for new features and updates at www.students.efinancialcareers.co.uk

IT in finance
Information technology ...................................................................... 74 IT careers .......................................................................................................... 76

Employers
Employer profiles ..................................................................................... 78 Partner profiles ............................................................................................ 88

What’s going on?
The latest news for graduates, including last-minute vacancies.

Internships
The best way to get a job is by doing an internship. Our Student Centre tells you all you need to know about applying for and making the most of internships.
Careers in Financial Markets
is published by eFinancialCareers Ltd - www.efinancialcareers.com Project Manager: Janice Chalmers; Editor: Sarah Butcher; Production editor: Graham Judge; Writers: Sarah Butcher, Nic Paton; Marketing: Alison Traboulsi; Sales: Iain Small, Alex Ross, Marc Speer, Robert Wood, Asha Wadhwani Art Director: Valerio Italiano Designer: Jane Roberts Additional copies: cifm@efinancialcareers.com +44 (0)20 7309 7777 ©2007 eFinancialCareers Ltd No part of this publication may be reproduced without permission.

including information on even more sectors than are contained in this book. Career paths: profiles of professionals in different roles and at different stages of their careers, from the lowly analyst up to managing director and beyond. Jargon buster: make sure you know your assets from your equities.

Top tips
Individual nuggets of advice from top banking professionals.

Off the record
What the banks won’t tell you about getting that job – real information from people already on the ground.

Graduate programmes
Your complete guide to applications and choosing between employers, plus what to expect from those who’ve been there before you.

Numerical tests
Most banks will make you sit one and they take a little getting used to, so practise first with our online tests.

Learn about the industry
Financial sectors explained:

Merrill Lynch and Morgan Stanley) or continental European (eg Deutsche Bank. “Banking is cyclical. Even if you manage to elbow 59 people aside to land one of those coveted traineeships. Credit Suisse and UBS). At the start of 2007. In 2007. According to the think tank Centre for Economics and Business Research (CEBR). They carry out many activities. Student research company High Fliers puts the number of applicants per banking job at (wait for it) 60:1. “The rest is performance-related bonus. There’s a constant risk of being squished if unsuccessful – and throughout your life you’re liable to be snuffed out by an adverse economic climate.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance A highly competitive industry Demanding workplace with outstanding rewards Banking is a competitive industry at the mercy of economic swings Pay is by performance: less than 20% of senior pay is base salary ‘Hot’ sectors include mergers and acquisitions (M&A) and risk Want to work in an investment bank? You’ll need to fight for it. by 2003 it was down to 19. Goldman Sachs employed nearly 27.com Careers in Financial Markets 2007-08 A career in banking is a bit like the lifecycle of a butterfly: you’ll have to put in time as a hardworking grub (analyst/ associate) before you can metamorphose into a beautiful winged creature (managing director). Pay for performance Investment banks pride themselves on being meritocracies. But after several good years and a credit crunch. The bloodbath followed several years of vigorous hiring worldwide – in 2001. they’re a lot more brutal when business turns. the global headcount at Goldman Sachs was 25. When business is bad. shares and other securities. ambition and talent will take them. typically after six years or so. It’s very rare nowadays to go into banking thinking you will never be unemployed – if you want a risk-free job. become an accountant. such as advising on mergers and takeovers. a consultant at recruitment firm Cornell Partnership. says the bank fosters “a meritocratic and fully inclusive work environment. banks were back on top. and then only when business is really good.500. says the best thing is to go for a top-tier bank or boutique that offers excellent training: “If you start in division one. For example.” explains Logan Naidu. graduate recruiters at banks and fund managers expected vacancies to rise nearly 18% to around 3. the Middle East and Africa at Merrill Lynch. and managing funds.000.” and a culture that provides people with “the opportunity to advance as high as their commitment. according to the Association of Graduate Recruiters. there’s no guarantee you’ll become a millionaire. head of leadership and talent management for Europe.e. Cornell Partnership eFinancialCareers. a partner and seasoned investment banking career coach at mentoring firm IDDAS.000. “Even for managing directors. Why? Investment banks only pay mega-bonuses to the best people. But don’t expect to be paid unless you perform. you can always move to division two 2 > . partner at headhunter Heidrick & Struggles. banks rarely pay base salaries higher than £260k.000 people globally and by mid-2006 the CEBR said employment in the City of London exceeded the previous record at the height of the dotcom boom.000 jobs were chopped in the City of London between mid-2000 and early 2003. banks such as Goldman Sachs regularly cull up to 10% of their worst-performing staff and Thacker says the practice is becoming more common. But tales of multi-million pound bonuses mean more people want a piece of the investment banking action.” “If you want a risk-free job. become an accountant” Logan Naidu.” says Lee Thacker. If banks get rid of 10% of staff as a matter of course even in good years. Tracey Hahn. make lots of money for your employer) you will both be promoted and be well paid. “There’s no doubt that we’re near the peak. By the end of the first quarter. some 35. In plain English.” Riding the wave What can be done to minimise the risks of being rudely turfed out if things turn nasty? Philip Beddows. this means if you work hard and have a talent for banking (i. buying and selling bonds.” Hiring and firing Following annual talent reviews. Most of the biggest investment banks are either USowned (eg Goldman Sachs. helping companies raise money by issuing bonds and shares. however. but the risk of losing your job when times are bad is the natural corollary to making huge amounts of money when times are good. are we in danger of another downturn? Banking recruiters say it’s just the nature of the beast. banks are equally quick to make people redundant and bonuses are a lot lower.

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Edinburgh EH2 2YB. No glass ceilings. That’s the difference.rbs. Now growing rapidly and aggressively worldwide. Registered in Scotland No 90312 .com/gbmgraduates The Royal Bank of Scotland. One of Europe’s leading corporate banks. No rigid hierarchies. Find out more at www. And the rapid progression of our people is vital to this success.” Our numbers tell an incredible story of growth and global expansion.Global Banking & Markets “It’s my first year on the graduate programme and I’m being trusted to handle a two billion dollar trade. Make it happen™ The Royal Bank of Scotland plc. Be part of it. We’ve become a leader in some of the most exciting areas of investment banking. In RBS Global Banking & Markets you can go as far and as fast as your abilities allow. Tenth largest bank in the world. Just extraordinary opportunities to match your capabilities. 95 per cent of the FTSE 100 and 80 per cent of the Fortune 100 are customers. Registered Office: 36 St Andrew Square.

however. some areas of which are likely to be more healthy than others. The August 2007 crisis in the credit markets and related problems have temporarily halted hiring. Look at the individual sector articles for more detail. managing s consultant at recruiters PSD Group. “If the How cycle turns down.” predicts Gail ortu nitie Connolly. eFinancialCareers. The bestplaced jobs are in market risk or quantitatively-focused roles helping to price derivative products. an ACA (accounting qualification) can also be a good safety net and allow you to move into banking later on. so you will always need risk specialists for regulatory reasons. 2 later – the other way round can be more challenging. salaries – unheard of a few years ago. “Banking is a regulated sector. Kud ey Opp os these bankers are ortu nitie often among the s first to be shown the door. You are not just selecting a job. according to information provider Thomson Financial. risk analysis looks like a good place to be. a director at Fennemore Banks. derivatives may be futures. “If you can stay on the board throughout. In 2007. When things are hot. but this remains to be seen.com Careers in Financial Markets 2007-08 5 . And soaring M&A deals inspired banks to add staff – an April 2007 poll of 250 M&A bankers by Financial News found 69% of respondents in the UK were looking for talent. they may be single tranche collateralised debt obligations.” says Adam Cairns. Naidu tells of one candidate who couldn’t get into banking in 2001. And if you fall off. risk hiring is hot – and even if things get a little more ‘risky’.” says Naidu. How But when M&A deals Mon hot stop happening. Hot sectors Bearing in mind the roller-coaster nature of the investment banking industry. As hiring expands. you’ll need to get back on quickly. or even more than. Fixed income? Equities? Corporate finance? Choose carefully. where investors buy debt products catering for their risk appetite.” she adds. Connolly says some risk staff are getting bonuses equivalent to. At their simplest. Mergers and acquisitions Mergers and acquisitions is a volatile sector in which to work. In 2004 he moved into investment banking and in 2007 got a job in private equity. Hiring has been Kud ey Opp os driven by the quest ortu nitie for better returns and s by banks’ ability to charge more for complex derivative ‘solutions’ than for simple equities or bonds.” If you don’t manage to get an offer from an investment bank. at their more exotic. currencies and Mon hot assets. you’re positioning yourself in the financial services market. they’re very hot. “Deal flow is still strong and a lot of banks are hiring.” Derivatives sales and trading Demand for derivatives specialists has been hot for years. where a buyer purchases the right to buy a product at a future date and price. it’s worth giving some thought to where you want to work. “Careers in financial services are all about riding the cycle. How bonds. deals announced in Europe rose 14% to $531bn. read on. Derivatives are complex financial instruments based on underlying stocks. but for a quick guide to hot sectors. In the first quarter of the year. Risk Right now. you’ll do well. Research by PSD Group suggests over 40% of banks are adding risk specialists in 2007 and another 30% are replacing staff who’ve left. hot Mon Kud ey risk hiring will hold Opp os steady. so spent three years training for an ACA. M&A bankers were sitting pretty. New products may emerge that overcome the turmoil and reinvigorate hiring.Continued from pg.

“Once you make it to VP further progression is not guaranteed. associates. anticipate market changes and add value.” says Richard Moore. to whom they allocate work . where they can join the next rank – director or executive director. there are around 1. on a much greater number of variables than at analyst and associate level. Very few people make it this far. In corporate finance. opportunities and career paths. At most banks. At one large US bank. you will be an analyst for two to three years.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Rungs on the ladder From analyst to MD – the ‘typical’ investment banking career The City of London.200 to 1.com Careers in Financial Markets 2007-08 Associate The next rung on the ladder. to be competitive. or even larger trades to place. As a VP you will manage .” she says. life starts to become exciting. head of investment banking graduate recruitment at JPMorgan. they are heavily constrained. only 6% to 8% of directors are promoted to MD each year. analysts telephone relatively unimportant clients on non-crucial matters. You’ll typically be a VP for three years. where everyone is issued with a ‘road map’ of what they need to do to progress. But whether you join a small European investment bank or a large US bank. MDs are the people who deal directly with clients and bring in business. progression ultimately comes down to adding value.500 MDs for 25. Managing director You’ve made it! Managing directors (MDs) are the upper echelons of the banking hierarchy. “At every level you need to show you are able to increase productivity. How to move to the next rung? Demonstrating the drive and motivation to succeed and learn are key.000 employees. as the job can become a bit of a sticking point. The title sounds grand. they have bigger and more important clients to call. It depends . The bank then decides whether or not to renew your contract and you have an option whether to stay on. EMEA head of campus recruitment at UBS. in investment banking. On the trading floor. ‘analyst’ is another way of saying ‘graduate trainee’. Expect to be an associate for another three years before moving up to the next rung – vice-president (VP) Exception to the rule Although this hierarchy exists across banks. Expect to spend at least three years on each rung of the ladder Many vice presidents move banks to make it to the next rung As few as 6% of directors go on to become managing directors Vice-president At this level. offers a feast of roles. anticipate market changes and add value” Esther Oxenbury. asserts Esther Oxenbury. If you’re an exceptionally talented VP on the trading desk. eFinancialCareers. you’ll encounter (roughly) the same job titles. Whether you’re a lowly analyst or an MD. head of HR at Citi. as this guide makes all too clear. analysts are number crunchers who put together ‘pitchbooks’ (research to help banks win bids) and analyse a company’s financial products. but you could be here for much longer. In sales and trading. In sales. “Do not sit back and wait to have your career managed for you. are analysts who have made the grade or business school students who joined after studying for an MBA. in the same order of importance. VPs who fail to progress at one bank tend to move to another. the day-to-day affairs of the associates and analysts beneath you and are likely to have more contact with clients. Analyst This is the lowest position of all.” says John Harker. “At every level you need to show you are able to increase productivity. Associates typically have a team of analysts in their charge. You have to be first and foremost accountable to yourself for your success. 6 . it’s less noticeable in sales and trading divisions where you work on your own to make money. but don’t be deceived: VPs are plentiful at any large investment bank. JPMorgan Executive director or director Executive directors or directors (the titles are interchangeable) are the right-hand men and women of the real potentates – the managing directors. At Goldman Sachs. What analysts do varies from division to division. there is every chance you could earn more than an MD. Executive directors help managing directors cope with the daily whims of client companies. analysts can’t trade until they’ve passed regulatory exams – and even then.

Banking adds value. rewarding work. Credit Suisse is an Equal Opportunity Employer and does not discriminate in its employment decisions on the basis of any protected category. but they are still just people. The people at Credit Suisse do important. a candidate who is offered employment will be subject to a criminal record check and other background checks before the appointment is confirmed. It’s what we do inside those offices that matters. . We think meeting of minds. All rights reserved. So if you’re thinking that the high-rise world of global finance is not for you. To the extent permitted or required by applicable law. But offices are only offices and we have to work somewhere.com/careers Thinking New Perspectives. © 2007 CREDIT SUISSE GROUP and/or its affiliates. You might feel right at home. give us the benefit of the doubt and visit the website.Some think steel and glass. exhilarating. www. marble halls and swift lifts. Mention global finance and people will often think of big buildings of glass and steel. creates wealth and makes things happen in the world.credit-suisse.

000 applicants are left. Some also use language tests to establish whether candidates can think logically in English. says many candidates fall down because of poor spelling or poor punctuation: “It is amazing how many applications come through with mistakes on them. interviews. “You need to research the division you want to work in. says Vivienne Dykstra of recruitment firm Graduate Solutions. “You are guaranteed to be asked some questions about your drive and motivation. assessments and. but for heaven’s sake put the right bank’s name on the form.000 candidates for the 150 or so places on the average bank’s graduate recruitment scheme. The first round is all about ensuring you’re the right kind of person for the bank. We won’t want people who’ll just answer in parrot fashion.000+ applicants will still be in the running. assertiveness and leadership. a job Recent graduates who join investment banks are called analysts. The key is to try and be yourself. Numeracy tests typically eliminate another 50% to 60% and are supposed to be academically neutral – they are designed to test your underlying numerical ability. That’s 9. if you’re lucky. even if you’re on track for a first.” says Jonathan Jones.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance The recruitment process Applications. Between half and two-thirds will receive the coveted offer of a full-time place. head of specialist resourcing at Deutsche Bank.000 applicants for each vacancy A 2. you cannot overestimate the amount of research you can do” Sally Whitman.. If you don’t meet the grade. You cannot overestimate the amount of research you can do. > . EMEA head of recruiting at Goldman Sachs All application forms will have questions on your motives. More than 7.500 are eliminated at the online application form stage. 8 Academic criteria are the main stumbling block.com Careers in Financial Markets 2007-08 Hurdle 4: the second interview By this stage around 320 of the original 9.” says JPMorgan’s Oxenbury. There you face junior people from the business area to which you have applied and people from HR. “What they are looking for is evidence that you have done your research and that you have the hunger and drive to thrive at their organisation. Esther Oxenbury.000 of the original 9. Hurdle 1: the application form According to the graduate research company High Fliers. the application form could still trip you up. they will spend a lot of time on that. These are fairly generic and include: team building. you won’t get any further than this. communication. Everyone accepts people make multiple applications. pro-activeness. many university careers offices can help when it comes to sorting out advance practice.. Test provider SHL also offers sample questions at www. Deutsche Bank Hurdle 3: the first interview By this stage. All banks have a list of skills and personal characteristics they try to identify.” she adds. It’s also important to come with some questions to ask of the interviewer. We want people who will really listen to what the interviewer is asking and digest that information. a large investment bank receives 60 applications for every graduate-level job.shl.” she adds. However. If you want one of these jobs you’ll need to show your pedigree during the banks’ multi-hurdle hiring process. However.1 and typically have 320 or more UCAS points. Most trainees come from the best universities. yet our business is all about attention to detail. First interviews typically take place on your university campus.com/shl/uk – click on ‘Practice Tests’ in the top right corner.” she says. A cut-and-paste approach is also perilous. head of investment banking graduate recruitment at JPMorgan. “If you have no questions. most of the big banks specify that would-be candidates must be on track for a 2. only around 1. They are also supposed to be impossible to prepare for.” agrees Sally Whitman. “You need to research the division you want to work in. “You will need to be able to talk about it. Competition is tough with 9.” she says. as that is going to be the main focus of your first interview. that would make me wonder how motivated are you. “I once had someone email me explaining how motivated they were to come and work at Morgan Stanley – it did not go down well.1 and 320 UCAS points are the minimum grades preferred Most applicants fall at the first hurdle – the application form Hurdle 2: the numeracy test Banks increasingly use tests to check candidates’ numeracy. not your knowledge of advanced calculus. In an ever more competitive environment. eFinancialCareers.

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very few banking candidates will be this spoilt for choice. You do a series of different exercises. applicants for fixed-income sales roles might be asked how bond prices respond to interest rate adjustments and why. each one lasting for about 45 minutes. and you can really tell when someone has not done enough background reading. Try to come across as a well-rounded person.Get ahead: start your job hunt early www. you may have to deal with a final obstacle: the exploding offer – a deadline by which you have to accept an offer before it ‘explodes’. which was very helpful. Do some numerical tests beforehand. This is followed by a presentation. Everyone at this level has a good academic record so you need to show them something about you that is different. second interviews are replaced or preceded by an assessment centre. “All students will be given an exploding date by which to make a decision. prepare. which can also sometimes be a sticking point. To this end. presenting a weak argument and changing your views when challenged. I also went to a campus presentation. with around 12 candidates. The interviewers will want to ensure you can function under pressure and have at least a basic understanding of how the business works. I found them very difficult and so I was definitely glad I had done some before. A foot in the door is your first objective and a good spellchecker is the first step. 8 Nathalie graduated from the London School of Economics with a degree in international relations in 2005. Applicants for foreign exchange (FX) trading roles might be asked to explain how interest rates adjust to the price of FX options. They also wanted to know about why I wanted to work in investment banking and for JPMorgan in particular. How did you convince the interviewers to invite you back? You need to demonstrate that you are motivated and have a hunger to learn. what can really differentiate you is how much research you have done on the company.com Careers in Financial Markets 2007-08 11 .co. In reality. role play. Candidates are normally asked to analyse some data and use it to present a convincing argument around a particular point. Now I interview people myself. They don’t expect you to know everything. What were the interviews like? Both interviews were quite similar. So you need to come across as extremely motivated and ready to sacrifice everything for the job. Six or so candidates are given a problem to solve together. a group exercise and then two to three individual interviews. prepare. eFinancialCareers. including a two-hour case study. They had numerical tests.efinancialcareers. Nathalie’s tips Prepare. Do not try to overwhelm or dominate. which normally take place at the bank’s head office between September and January. however. a group discussion and a presentation. The hours are long and you will need stamina and endurance. a numeracy test. and about my personality. Hurdle 5: the assessment centre At some banks. I filled in the online application form and took a numerical test and a couple of weeks later I was invited to a first round of three ‘competency-based’ interviews. which started at 7:30am and lasted the whole day. my character and my ambitions. The main failings include not identifying the salient points. They typically include another interview.” says Brian Hood. At the assessment centre. The most challenging part is the group discussion. The second interview is a series of interviews with senior bankers. This can be a problem if you have several offers – particularly if you have offers from your second and third choices and are waiting to see if you get an offer from your first choice. How did you go about applying to JPMorgan? The first thing I did was go to LSE’s careers office where I did some practice tests and got lots of advice on how to apply. Also. I found the numerical tests difficult at first. Hurdle 6: the exploding offer Finally. She now works as an analyst in the bank’s Natural Resources Advisory Group. If a bank knows you have several offers and are in a dilemma about which to choose. All this lasts a single day. during which I was asked about my motivation and skills. The aim is to assess team-building skills. Natural Resources Advisory Group JPMorgan Continued from pg. Assessment centres involve tests to show how people would perform at work. meaning when it is withdrawn. it may make allowances for you. joining JPMorgan in August of that year. Second-round interviews place a greater emphasis on technical aptitude.uk/students Profile Nathalie Casali Analyst. concentrate on being yourself and doing your best. head of graduate recruitment at Citi. A couple of weeks later I was invited to a ‘Super Saturday’ assessment centre. but if you can show you are reading the financial press and are able to talk about some of the deals going on it all helps. so it was useful to have practised beforehand. The best advice? Tell the top banks on your list and leave the rest in the dark.

People are expected to pursue multiple qualifications a year.com Careers in Financial Markets 2007-08 So. But don’t despair if you miss the deadline. time in the classroom varies from just six weeks to as much as four months – the latter mostly in the more complex areas such as IT and private banking. all similar enough so far. If Amsterdam grabs your imagination. Middle East and Africa (EMEA) head of recruiting at Goldman Sachs. But scratch the surface and banks’ training programmes are not as similar as they may at first seem. explains Jonathan Jones. but also go into our 12-18 month graduate development programme. “You will build up a network of contacts and relationships that will remain with you through your career and stand you in good stead” Richard Moore. it’s also about meeting your graduate counterparts. over to New York to learn banking theory. It is also worth your while thinking about the training itself: some banks do it very differently to others. The differences tend to be focused on four main areas: • Location: where does the training take place? • Duration: how long does it last? • Delivery: who delivers the training? • Breadth: how much opportunity is there to learn about different areas of banking? It’s worth noting. duration and breadth of content Choose a programme from a bank that will allow rotations If you want to be a graduate trainee in an investment bank. in any case. a lot of the banks’ training programmes are very similar. Morgan Stanley. UBS eFinancialCareers. > Location Where do you want to train? New York? London? Amsterdam? Trinidad and Tobago? Unfortunately. including such subjects as financial modelling. they are then put through the regulatory training that they need from the Financial Services Authority (FSA).to eight-week global graduate training programme in New York. For example. ABN AMRO is the place to go – the bank puts its recruits through six weeks of intensive training at its Amsterdambased Academy of Finance when they join. either pre. Goldman Sachs. London is. but everywhere else is.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Graduate training schemes Programmes vary considerably Investment banks’ training programmes are not identical Check a programme’s location. too. that for most banks the cut-off for applications to their graduate programmes is the end of January. head of investment banking graduate recruitment at JPMorgan. Banks whose trainees spend a long time in the classroom say it’s an advantage. “When trainees return. This is not just the chance to have fun in the Big Apple (although you probably will) while finding out the difference between a ‘put’ and a ‘call’ option. which runs a six. it is a real networking opportunity. It is an ongoing commitment. where most European graduate trainees come back to after their initial theoretical training is over.” he says. However. You make friends and contacts that you will keep with you for a long time to come. Most banks also have an element of initial classroom training in London.” explains Jane Clark. Duration Including classroom and on-the-job training. which offers eight weeks of entry-level training in New York. most graduate programmes last two years.” says Esther Oxenbury. “It is an amazing experience. as some (though not many) do stretch their closing dates to the following spring. Credit Suisse and JPMorgan send some or all of their trainees 12 . Europe. with trainees benefiting from the intensity of the training they receive. Whether you join the programme for CIBC World Markets (which starts in August) or Goldman Sachs (which kicks off in July) you will have to work hard and learn very fast.or post-overseas training. bond pricing and stock option theory. the chances are you have not thought too much beyond the daunting application process. Superficially. Most programmes will be highly tailored to the role you have applied to do. First. and most big banks will also expect you to be learning continuously through your career. Then you will be unleashed on to a particular division – the start of a training programme that will typically last for two years. Merrill Lynch. EMEA head of campus recruiting at Merrill Lynch. “We have a Goldman Sachs university that delivers training year-round. you will be put through a course that teaches fresh graduates investment banking know-how. Trinidad and Tobago is not on the list of training destinations.

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don’t be surprised to find the head of equity derivatives standing in front of you and presenting the models. “You get access to some of the world’s leading experts. equities and accounting. He joined Dresdner Kleinwort in August last year as a graduate trainee after completing a degree in economics at the London School of Economics in 2005. Morgan Stanley. allows interns entering its global markets division two rotations in its debt and equity group during the summer.com Careers in Financial Markets 2007-08 Have a good idea of why you want to do the job. for instance. the training programme was essentially a 10-week classroom-based crash course in finance. which is why it might be a good idea to join a bank that will let you work in different areas. if you’re learning.”. which was a lot of fun. Lehman allows trainees in its fixed income and equities division to undertake a few three-week rotations before settling. Breadth You want to work in fixed-income sales? Is that selling high-yield bonds or government debt? You probably don’t know at this stage. either. most banks are more than happy to pay top dollar and bring in professional training companies instead. and I got to speak to and question a lot of senior people. There were about 80 of us on the graduate programme altogether. You don’t have to know everything. We had to do lots of role play. After that I had three weeks’ regulatory training to get my FSA exams. 15 . So. options. covering things such as bond maths. permits trainees in its fixed-income division to do four six-month rotations over a two-year period. ask if the bank you’re thinking of joining has a system of buddies and mentors – most now do. ly Ask as many questions as you can. After all. too. lunch.” says Richard Moore. “As your career progresses. as a lot of what you learn in this type of role you learn on the job because it happens on the trading floor. EMEA head of campus recruitment at UBS. Ryan’s tips: eFinancialCareers. Delivery The big banks tend to be proud of the fact that they use their own senior bankers to deliver at least some of their training programme to graduates. the banks are investing significant sums of money in you and it is in their interest to offer as much support as they can to get a return on that investment. And if it’s not senior managers then.Profile Ryan Hearity Analyst Dresdner Kleinwort Continued from pg. Buddies are recent trainees who answer simple questions. Mentors are more senior people who may become your long-term guru. but going through the graduate training programme was invaluable because it gave me a chance to learn away from the hectic day-to-day and to ask as many questions as I liked. especial from experts and senior people. My team is very supportive. What was the Dresdner Kleinwort graduate trainee programme like? I applied specifically to this desk. There was also a day’s training in communication and presentation skills where they brought in experts from the RADA drama school. for example. 12 Ryan works as a rates sales analyst in capital markets. pension funds. the people around you will hopefully progress with you and you will be able to call on an incisive network of contacts that will stand you in good stead. Enjoy it! Speak to previous graduates and look at what’s being offered. Buddies and mentors Finally. and I am encouraged to ask questions. I sit on a trading floor and spend most of my day on the phone talking to clients and following the markets. but we were divided into classes of 20. say. how to value equity derivatives. It was very intensive. Trying out different parts of a bank is known as rotating. As well as speaking to clients daily.” he concludes. “Through the graduate programme you will build up a network of contacts and relationships that will remain with you all the way through your career. What did you feel you got out of it? You can only be taught so much in a classroom setting. for something that is clearly an investment in their future. after work drinks and so on. may not have much depth to it. Merrill Lynch. which was a real opportunity. A programme of one or two weeks. I usually go out about twice a week socialising with different clients – dinner. What does your job entail? I sell European government bonds to institutional investors (asset managers.” enthuses Goldman Sachs’ Jones. And don’t forget the future networking and guidance potential of the trainees on your programme. insurers). but you do need to understand that sales is different to trading and so on.

to twelve-month internships for IT students. Middle East and Africa (EMEA) head of campus recruitment at UBS. Hardly surprising. Merrill Lynch and Credit Suisse – offer one. 10. Sally Whitman. at least 50% of full-time graduate vacancies are given to applicants who took on an internship during the previous summer. However. Europe.” says Richard Moore. banks will generally use a combination of online application tests. as for Deutsche. too. there’s the potential of being offered a full-time job. It’s much better paid than pulling pints in your local pub or stacking shelves in a supermarket: summer banking internships pay pretty good rates.” And the conversion rate from internships to full-time positions is pretty impressive. there’s the pay. Second. with normally the same criteria – an expected 2. The real beauty of an investment banking internship is the ‘try before you buy’ element. there’s the training: interns do many of the same tasks graduate trainees do on a daily basis. after which interns are unleashed on their chosen division. Some banks – such as Goldman Sachs. At some banks. “Internships are the best way not only to further your investigation of the industry but also to realise your ambitions. Merrill Lynch 16 First of all.1 degree or above – as for permanent entry-level positions and a requirement that you demonstrate the same level of interest in a banking career as full-time graduate hires.to two-week long internships to first-year undergraduate students. head of specialist resourcing at Deutsche Bank. but we do look for a certain level of commitment and evidence of a general interest and an intellectual curiosity about it. again. Similarly. In order to make their selection. internships begin with a classroom-based introduction to the industry. A high percentage of our interns would be expected to get full-time offers” Jane Clark.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Internships A vital part of banks’ graduate selection Banks hire 50% or more of their graduate intake via internships Internships typically take place in your second year of university Banking internships pay very well: up to £650 a week Investment banking internships comes in various guises. multiple interviews and numeracy tests.000 applications for the 190 places on its internship programme. Morgan Stanley. will be set high. the typical investment banking summer internship might sound like hard graft. An intensive. Most good internships will be formally structured. with interns sitting down with their managers to create a list of skills and experiences they would like to gain. Few are called… Competition for investment banking internships is extremely fierce. The selection bar. About three-quarters of trainees normally get offered a full-time position. for instance. “When we are planning internships we go to great lengths to structure them so that they as closely as possible mirror what real life is like as a full-time analyst rather than someone who’s just on a 10week internship. Many also offer six. like in most other banks. But what exactly is in it for you? banks. estimates that it plans to fill around three-quarters of its 2008 full-time positions with interns from 2007. Lehman Brothers. The nature of work an intern does can range from producing research reports through to helping to improve the efficiency of back-office processes. says Jones. the figure is even higher. where they do real (hard) work. around half of Goldman Sachs’ full-time hires will have done a summer internship the year before. There are normally hundreds or even thousands of applicants for each place available. agrees Jonathan Jones. At most banks. Bank of America. for those who are successful. If you’re one of the fortunate few to be selected as an intern. rest assured you won’t spend your summer making cups of tea. JPMorgan. normally anything from £350 to £450 a week and sometimes as much as £650 a week. Royal Bank of Scotland. the internship programme acts as a feeder into full-time positions. “An internship is definitely a pipeline into full-time hiring. EMEA head of recruiting at Goldman Sachs: “By going on an internship we understand you are not saying you are definitely going to commit your life to this industry. estimates that the bank receives over 6.to 12-week period of work experience. the most important internship occurs in the summer holiday before the final year of your university course.” says Goldman Sachs’ Jones.com Careers in Financial Markets 2007-08 . At most investment eFinancialCareers. Most importantly.

As Richard Moore. Most banks assess interns’ performance twice during the 12-week period: once in the middle and once at the end. So I was working very closely with all the different teams. It was clear that those who enjoyed themselves and demonstrated the most keenness. University of London. eFinancialCareers. I saw it as a win/win situation because you are getting fantastic experience and also getting a taste of something you might like to do when you finish your degree.uk/students Profile Rodney Appiah Analyst Merrill Lynch Rodney joined Merrill Lynch last year after completing a 10-week internship at the bank in 2005. try. and is currently working as an analyst within Merrill’s European Leveraged Finance division. But it’s a very supportive culture. We’re looking for people who make the most of the opportunities with which they are presented. EMEA head of campus recruitment at UBS. As Jane Clark. that it was glamorous but there was also a gritty side to it. you still have an opportunity to redeem yourself. This means that if you happen to do badly during the midway assessment. For those who miss the boat… The first thing to be said here is. “Securing an internship will not automatically result in a full-time offer. were the ones who were more likely to convert the internship into a permanent offer. EMEA head of campus recruiting at Merrill Lynch. Did you intern in the department you are working in now? Yes. show initiative and get involved. particularly around the long hours. Interns. “try. It gives you hands-on experience. you’re doing well. head of investment banking graduate recruitment at JPMorgan. and it was a lot of fun too. will stand a much better chance of doing well at an interview. There were a lot of social activities – we even had a cocktail evening on the Merrill Lynch roof. Most banks are open to receiving applications from students that have not had an intern placement during the summer. which I think was a real waste. Even if you’ve only done a Saturday job you can demonstrate the skills you have picked up. What prompted you to do a banking internship? I was intrigued by the idea of going into banking.” he says. hopefully one that is natural! Try to fit in from the start. such as numeric skills.” Investment banking is a fiercely cut-throat industry and simply not being able to get out of bed and get your act together to get your application in on time will generally not go down very well. as it need not be the end for your planned career. puts it: “It is definitely a pipeline into full-time hiring. Some interns used to leave at 6pm and did not take the opportunity to spend time talking to their mentors or senior directors.efinancialcareers. “Perform well. He read economics at Royal Holloway. You get to try everything out and then you home in on the one or two areas that you like best. However. What did you gain from the internship? I learnt that it was a very exciting job. Take full advantage of the opportunities on offer and ask as many questions as you can. A high percentage of our interns would be expected to get full-time offers. “A lot of candidates get hung up on the idea that they have to have done an internship. but it is not always the case. such as chemicals. don’t despair. puts it: “Do not miss the deadline. corporate finance and so on. Enjoy it. by the fact that they have spent time in the banking environment and will have concrete examples of their achievements. It is just too competitive an environment now. even when you are working until 1am. you will be at a disadvantage without an internship – and not just statistically. so an internship was a really useful way to find out what it was really like. Even fewer are called back Recruiters agree that converting an internship into a full-time job offer is all about being proactive. dealing with customers and so on.” advises Brian Hood.co. try to become part of the furniture of the team. It was a rotational programme so I spent two to three weeks in different areas.” advises Esther Oxenbury. If it gets to the point where you are missed when you are not there.Find out more about careers in finance www.com Careers in Financial Markets 2007-08 17 .” But if – for whatever reason – you haven’t managed to secure an internship. which was fantastic. It had always been something I wanted to go into.” Rodney’s tips: Demonstrate a passion for the job. How was the internship spent? They try to mimic the reality of what it’s like being an analyst. head of graduate recruitment at Citi. try not to.

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Inspiration. Spread the word. People who are hungry to come up with the solutions that make things work better – for our clients. call us. We’re interested in talented people from a range of backgrounds and degree disciplines. we’re focused on finding those individuals who can take a wider look at business.Don't leave your conscience at the door The word is different. look again. If you thought a career in banking and finance meant putting good intentions aside. www. Radical thinking. If you think you can bring more to banking.dresdnerkleinwort. At Dresdner Kleinwort. . for the world. for their customers.com/graduates Unexpected viewpoints.

who survey the work of analysts and associates. and often ask for the pitchbook to be partially or completely re-written.e. who ‘own’ the client relationship (i. European-announced M&A volumes rose 38. It is usual for pitchbooks to come to nothing: clients decide not to go ahead with the suggestions or engage a rival bank. who oversee analysts’ work and check their models are correct. European M&A activity rose 57% on the same period of 2006. followed by Morgan Stanley. Vice-presidents report to directors and managing directors. a potential £3. the more contact you have with clients. the more senior you become in M&A.com Careers in Financial Markets 2007-08 Key players The so-called US ‘bulge-bracket’ banks are generally found towards the top of the M&A league tables issued by Thomson Financial. are typically dealt with by the M&A divisions of accountancy firms. As a junior banker. as M&A covers mergers.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Mergers and acquisitions The international jet set of investment banking 2006 was a good year for M&A. It is very client and deadline driven” Jonathan Jones. with Germanbased Deutsche Bank in pole position. However. How will the rest of 2007 work out? Bankers are said to be upbeat and there are several large UK deals on the cards. In the first six months of 2007.0 249. of deals 184 198 164 217 140 158 179 296 107 156 97 Source: Thomson Financial “You get to see deals at all the different stages of their life cycle and deal with a huge variety of clients. in fourth place. junior bankers can expect to be very busy assembling the reams of necessary financial information and legal documentation. a UK-based bank.5m). Citi.1 489. the main point of client contact). The situation was slightly different in the UK. when a pitchbook elicits a positive response. and while the first three months of 2007 saw some impressive deals announced in the UK – such as the £10bn offer by CVC Capital Partners for Sainsbury’s supermarkets – not all those deals came to fruition.0 440. The UK is the most important country in Europe for M&A activity. Trends In 2006.5bn bid for Reuters. you will spend a lot of time working on ‘pitchbooks’ – documents outlining a bank’s ideas for a particular transaction. 2007 looks like being even better US banks dominate the European M&A scene Be prepared for punishing hours How Mon hot ey Ku Opp dos ortu nitie s Strictly speaking. Citi. Further up the scale are vice-presidents. and disposals is where a business is selling or all part of its operation. those generally worth $20m to $150m. and.5 318. Morgan Stanley. eFinancialCareers. One notch up from analysts are associates. or analyst. acquisitions is where one company buys all or part of another. Rothschild. announced doesn’t necessarily mean completed. It accounted for 32% of all announced European deals in the first quarter of 2007 – more than France and Italy combined. Live M&A deals are hard work. 20 > .8 trillion. it is more accurate to talk of MA&D rather than M&A.3% on 2005 to £35. Analysts in M&A usually conduct basic research for the pitchbook and build the financial models used to price the companies concerned. People involved can work nights and weekends and are at their clients’ beck and call.0 404. Goldman Sachs Roles and career paths As a rule.1 435.5bn bid for brokerage firm ICAP and a £3bn-plus takeover of EMI Music. Mergers is where two companies join as equals.9 377. Goldman Sachs and JPMorgan occupied the top four rankings for total European M&A in 2006. However.0 No. European announced M&A 2006 Advisor Morgan Stanley Citi Goldman Sachs JPMorgan Merrill Lynch Deutsche Bank UBS Rothschild BNP Paribas Credit Suisse Lehman Brothers Value ($bn) 493. Lower-value transactions. Most large investment banks only become involved in the biggest deals – those worth at least $150m (€111.3 299. acquisitions and disposals.8 287. the M&A team see the deal through to completion. Transactions worth less than $20m will normally be the domain of solicitors and high street banks. Once a deal is underway. Watch for the £7.1 295.

independent thinkers. including the significant expansion of our European activities. whose talent and initiative will drive our future growth. with over 10. the Middle East. Africa and Australasia. advisory and financial services. Our success comes from supporting the ideas of our people. you will have the opportunity to be part of a successful team working in a dynamic environment where your contribution is valued from day one.000 employees in 24 countries across Europe. Macquarie has reported 15 successive years of record profits and growth. A breadth of graduate opportunities exist in Macquarie’s growing businesses in both Europe and the UAE. .The Macquarie Group is a diversified international provider of specialist investment. Asia. the Americas. In joining Macquarie. We seek motivated.

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EMEA head of campus recruitment at UBS. eFinancialCareers.co. To make it to the top you’ll need a different skillset: “You need the communication skills and self-confidence to strike up a genuine relationship with the chairman and chief executive of a FTSE 100 company. it’s worth bearing in mind that what goes up can go down. As the teams for each deal are different. Marian’s tips: Understand what you will be doing – many City jobs seem glamorous. Gather as much information as you can – speak to people in the profession and set clear goals of where you want to be after. Jonathan Jones. What is important is that you can learn quickly and are driven to learn independently. and allows you access to other areas of the bank.uk/students Profile Marian McWilliams Mergers & acquisitions analyst Bank of America Continued from pg. identify M&A opportunities for them and support them through the entire M&A process. act as their advisor throughout the process. In a bad year for M&A they could just as easily fall 20% – or more. as a significant element of the role is modelling and valuing companies. However. We then present these ideas to the company and. robust and able to adapt to rapidly changing circumstances. and you can lose sight of what the job entails. so banks want clear evidence graduates have thoroughly researched the industry in advance.” he explains.” says Baines. Within corporate finance and M&A. as you are often working on multiple projects at once. Can you describe a typical day? I am usually at my desk by 9am which is relatively late by City standards. After lunch the US wakes up. Bonuses for mid-ranking and junior M&A staff were up around 20% in London in 2006 compared to 2005. so the work level intensifies. Quantitative skills are vital but. We spend a significant amount of time valuing companies and attempting to identify value-enhancing opportunities. UBS expects to take around 75 graduates into full-time positions this year: “Candidates need to be resilient. 20 Marian McWilliams has been an M&A analyst at Bank of America for just over a year. after which there will be various follow-up tasks. Normally in the late afternoon there will be a client meeting. you don’t need to come from a quantitative background. in my opinion.” M&A candidates also need to be good negotiators and a second European language is an advantage. providing services ranging from a more detailed valuation to due diligence and launching the formal offer. 23 . but we do not expect people to be experts the day they walk in the door. Those two years above them were on six-figure sums. Pay 2006 was a good year for pay. analysts must manage their time carefully. The challenge – and excitement – of working in M&A is that the work is rarely cleared off your desk just because it’s the end of the day. If you want to execute an M&A deal and prepare a pitchbook. Marian studied economics and politics at Trinity College. if they decide to pursue them. EMEA head of recruiting at Goldman Sachs. M&A salaries (£k) Level Analyst one Analyst two Analyst three Associate one Associate two Associate three 1st year vice-president 2nd year vice-president Salary (av) Bonus (av) 36 44 49 57 61 67 75 83 31 48 60 87 107 141 167 221 Total 67 92 109 144 168 208 242 304 Source: Fennemore Banks Skills The M&A sector is very popular with graduate applicants. A lot of it can be spreadsheet-based modelling. a headhunter specialising in M&A at Whitehead Mann. She joined in 2006 after completing a summer internship the previous year. adds: “You’ll need a lot of analytical skills.efinancialcareers. The M&A process is sometimes full of dramatic twists to which we have to react within tight time constraints. three years. says Jonathan Baines. perhaps an acquisition. Dublin. Graduate trainees working in London M&A teams earned nearly £70k on average. valuation work and finalising presentations to clients.Click online to begin your finance future www. cautions Richard Moore.com Careers in Financial Markets 2007-08 An internship gives you the best insight into what life will be like. you’ll need to be analytical and not averse to number crunching. What does your role involve? My job is to analyse companies’ financials. say. disposal of a particular business or the formation of a strategic partnership. By 10am I usually have a pretty clear idea of how my day will pan out – typically internal meetings about projects. I spend the first 20 minutes checking my voicemail and replying to any overnight emails. What kind of person do you need to be to excel in this role? To work in M&A you need to extremely hard working and organised.

Seize an unparalleled career opportunity.com/careers Certain activities and services provided by the business referred to above are provided by Banc of America Securities LLC. Work with prestigious clients. .A. ©2007 Bank of America Corporation. The fastest growing global corporate and investment bank in the industry awaits you. Approved by Banc of America Securities Limited. a subsidiary of Bank of America Corporation. member NYSE/NASD/SIPC. which is a wholly-owned subsidiary of Bank of America. “Best Global Bank” —Euromoney 2007 bankofamerica. and is authorised and regulated in the United Kingdom by the Financial Services Authority. N. Banc of America Securities. Bank of America is an equal opportunity employer.Opportunity Starts Here ® Gain responsibility early and often.

India and even Equatorial Guinea across the whole spectrum of Energy and Power. Kuwait.Our momentum is your advantage Imagine what you could achieve as an analyst at Bank of America. visit bofa. N. initiative and responsibility. comparable transactions. a subsidiary of Bank of America Corporation. based in the UK. where I spent 10 weeks in the Energy and Power team covering clients ranging from Oil and Gas companies right through to Integrated Utilities and Waste Management companies. the learning curve is as steep as ever and is always evolving. However. which made my final year at University a lot more enjoyable without the stress of having to look for a job in the middle of my final exams. discounted cash flow analysis. Certain activities and services performed by the business referred to above are provided by Banc of America Securities LLC. authorised and regulated by the Financial Services authority (FSA). I was Christian Huot taught the principles of corporate What differentiates Bank of America finance very quickly by expert lecturers from other banks on the street is the in the field. including competitive and demographic trends Company analysis: analysis of key operating metric. I have found that the fast moving platform with incredible potential. Following my internship. I was fortunate enough to have been offered a full time position for the following summer. As our teams in Europe tend to be smaller. Yemen. The experience has been bewildering both in terms of the volume of new knowledge and the skill sets you learn in such a short period of time. The decision to return to the Energy and Power team was an easy one – I wanted to build on my experience from the internship and continue in an industry where my scientific background would be put to good use. Approved by Bank of America. member NYSE/NASD/SIPC.com/careers. despite my initial scepticism. The skills learnt there the depth of interaction and involvement in projects would prove to be invaluable once I joined my team. Bank of America is an equal opportunity employer. My typical responsibilities have included: Valuation analysis: comparable company analysis. financials and review for growth and synergy opportunities Company information: summarising and presenting due diligence information Buyer analysis: Identifying buyers and creating strategic/financial sponsor profiles News: tracking and reviewing key industry news items to bring to the attention of my team I’d describe my experience as ‘incredibly challenging but fantastically rewarding’. with each It’s a challenging and exciting environment day bringing new challenges demanding new to work in and a unique opportunity to join a skills to overcome them. we are leading some of the largest. the skills and knowledge became second nature.. most complex deals in global corporate and investment banking today. © 2007 . Continental Europe. Since the end of training. From London to New York to cities across 175 countries. with the excellent training both in the classroom and on the job. The five week training programme in New York was simply brilliant.A. as well as getting to know exposure and responsibility you get as a the rest of the worldwide analyst junior analyst. commitment. It definitely helped to be in a small team of top class bankers and the support of a large bank. London branch. and level of client interaction become a function of your aptitude. I have been involved in a huge variety of projects. the learning curve was near vertical. leveraged buyout analysis Industry research: market analysis. US. Banc of America Securities LLC. slogan “there is no typical day in the life of an analyst” to be true. Having done a degree in Experimental Psychology at the University of Bristol and with little finance experience. I joined Bank of America in 2005 as a summer analyst in the bank’s London office. an entrepreneurial organisation that is among the top five most profitable companies in the world. class in an awesome city. To learn about our competitive edge and what it means for your career.

In 2006. while the value of equities issued in the region in the same period was just $267. The two main products are shares. But you also need good relationship management skills” Richard Moore. has been accused of being too lenient. US banks followed closed behind. traded on the debt capital markets (DCM). Origination specialists are usually senior capital markets bankers.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Capital markets Get in on the ground floor Capital markets bankers issue shares (ECM) or bonds (DCM) Capital markets boomed in 2006 Top originators can earn around £1m How Mon hot ey Ku Opp dos ortu nitie s Capital markets are where traded financial products are born. with UBS the leading equities issuer. particularly in the equities market. Top DCM banks (Europe. One of the biggest stories of recent years has been the number of companies floating on the Alternative Investment Market. Similarly. US markets such as Nasdaq have lost Goldman Sachs Morgan Stanley Deutsche eFinancialCareers. By comparison.6 119. Many came from overseas. Until the redemption date. European banks do a little better in the capital markets arena. capital markets experienced a boom in 2006. the issuers of most bonds pay regular interest to the bondholder. which deterred companies from listing on American stock exchanges.5 149. In 2006.5bn. UBS Top ECM banks (Europe. with JPMorgan. AIM is part of the London Stock Exchange (LSE) and its regulatory standards can be easier to satisfy than those of the LSE’s main market. the Middle East and Africa was $2.com Careers in Financial Markets 2007-08 Roles and career paths If you work in the capital markets division.8 21. to structuring (assembling complex derivatives products) or syndicating (preparing for the sale of finished products to investors). followed by Deutsche Bank. for instance. so you need technical and mathematical skill. capital markets divisions also issue more complex products (bonds that can be converted into equities at a pre-arranged price) and derivatives. or AIM. By comparison. It’s a job that involves a lot of travel: originators spend their time meeting clients in an effort to gain insight into their financing needs and persuade them to deliver up their business. out.4 Trends Like most areas of investment banking.6 20. Fixed-income capital markets are much larger than equity capital markets. The number of companies listing on AIM doubled from 2003 to 2006. as AIM and other European listings have gone through the roof. the bond markets can be known as the fixed-income (FI) markets. bonds are known as fixed-income products. They spend their 26 > . Middle East and Africa) 2006 Bank Barclays Capital Deutsche Bank Citigroup Royal Bank of Scotland ABN AMRO HSBC Bond issues $bn 187. particularly from emerging markets such as Russia and China. these… er… blue collar bankers produce financial products for companies and institutions that want to raise money. you could find yourself doing anything from originating (bringing in business). London’s AIM.0 Source: Dealogic Source: Dealogic “Clients’ appetites are more complex now.3 132.7 164. However. Working on the ‘factory floor’ of the financial markets. Because these are a fixed-cash sum. The amount of equity issued on stock exchanges in Europe. traded on the equity capital markets (ECM) and bonds.25 trillion. in particular. Barclays Capital was the leading advisor on European debt issues by value. Dealogic calculated that the value of bonds issued in Europe.4 20. while the amount of debt issued rose 13%. As well as simple equities and bonds. a report commissioned by the mayor of New York suggested the city risked losing its status as the world’s leading financial centre – largely due to stringent regulations such as the Sarbanes Oxley Act. Middle East and Africa) 2006 Bank UBS JPMorgan Equities issues $bn 22.6 113. However. Key players If US banks dominate the European M&A league tables. In January 2007. third and fourth places.8 20. the Middle East and Africa rose 19% compared to 2005. structurers are distinctly desk-bound. Goldman Sachs and Morgan Stanley in second.

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Your training will be here in London. To find out more or to apply. demanding and rewarding role in one of the world’s leading international corporate investment banks. With a distinct emphasis on progressing talent fast through the organisation. or if you’re interested in one of our summer internships for undergraduates. please visit www. our graduate training programme takes you through each of our five capital market businesses.700 staff through 75 offices in 15 countries *Moody’s Aaa. the thriving centre of our expanding European business. You’ll help us serve clients in some 30 countries around the world. your training programme finishes and you’ll be heading for a challenging.000 staff • One of the highest credit ratings of any financial institution* • Canada’s largest financial institution as measured by market capitalisation and assets . It’s not unknown to have ‘Vice-President’ on your door while you’re still in the early stages of your career.com/careers RBC Capital Markets • One of the world’s top 17 investment banks† • Top 19 global FX banks (Euromoney 2006) • Top 15 global bond underwriter† • 3. ensuring you pick up everything you’ll need to contribute fully to our global successes.OPENING DOORS EARLIER At RBC Capital Markets. we won’t leave you feeling like you’re on a graduate scheme for long. After just 17 weeks. Career prospects are excellent and the remuneration is everything you might expect from an organisation of our standing.rbccm.000 employees in the wider Royal Bank of Canada. and will join an extended family of 70. Standard & Poor’s AA †Bloomberg AT A G L A N C E Royal Bank of Canada • US$500 billion in assets • 70.

29 . assess how many people will want to buy them and make sure the correct documents are in place. as communicated by the originators. Sally Whitman. What skills do you need to thrive in this area? You have to be good at time management because there is always a lot going on at the same time. investor feedback and shareholder analyses. otherwise you’ll never know if it is for you. head of specialist resourcing at Deutsche Bank. time creating esoteric financial products that suit a company’s financing needs. problem solving skills as well as strong communication are essential.” he says. but they still do very. This would include. especially the FT. to know how markets work and to understand why a deal can or can’t be priced in a certain way. You have to be able to communicate with them confidently. so you need to have a good degree of technical and mathematical skill. for most areas. You need to know what it entails because the hours can be long. agrees: “You’ll need to be deal oriented. EMEA head of campus recruitment at UBS: “The appetite and awareness of clients for financial products is more complex now. Why did you choose to work in capital markets? To be honest. Pay Top capital markets bankers aren’t paid as much as top derivatives traders.” he explains. It’s up to the people on the syndication desk to prepare the ground for the sale. Read the newspapers. In 2006. 26 Catherine is an analyst on the equities side of the global capital markets division at Morgan Stanley. for example. even at a relatively junior level. The worst? Having to get up early. Banks will look for someone who’s showing interest and potential. very well. which has involved a lot of researching and number crunching. I’ll try and speak to a few of our traders later if it looks like there has been some significant trading activity in any of our clients’ stocks – it’s always good to get a feel for why interest in the stock is heightened. I also have to keep one eye on the market in case there are any significant events which we should be informing our clients of. average total pay for a managing director originating debt deals for a top investment bank was around £875k. a director a headhunter Sheffield Haworth and former director of equity capital markets at Société Générale. Catherine’s tips: Try and get some hands-on experience. What have you been working on today? I’ve been dealing mostly with a presentation for one of our clients. Pay: Debt Capital Markets – origination. before I did the internship I did not know that much about it. They calculate the best price range for the products concerned. advises Richard Moore. says: “You need to look carefully at what it is you want to do. pay for analysts in debt capital markets can be anywhere between £45k and £88k. What does your job involve? Corporate broking is an equity product team that specialises in providing advice to UK corporates. But you also have to have good relationship management skills.com Careers in Financial Markets 2007-08 Speak to people who are already doing it. It’s a shareholder targeting piece so I’m looking at possible areas where the client could look to improve the quality and quantity of investors interested in the stock.Profile Catherine Gunn Analyst in global capital markets Morgan Stanley Continued from pg. But. top-tier banks Title Managing director Executive director Director Associate director Associate Base salary (£k) 130 100 80 60 45 Bonus (£k) 745 460 235 115 100 Source: Napier Scott Skills Debt and equity capital markets jobs are highly sought after and the increasing complexity of financial products means you will need a strong academic record to get in. Some areas can be very analytical and there we might look for someone with a PhD. By comparison. But I found the finance-raising side really interesting. eFinancialCareers. including very senior people. and you are going to have to commit to it. in You have to be aware of what is going on the markets. according to headhunter Napier Scott. What’s good and bad about your job? The best bit is the variety and the fact I am surrounded by people of all different levels. She joined the bank fulltime last autumn after completing a summer internship in 2005. We all sit together so it is great to hear what is going on. while advice would cover transaction structuring and execution as well as technical advice and help with investor relations. Catherine studied economics at Cambridge. You also have to have good attention to detail and be able to deal with all sorts of people. You get to deal with a lot of varied people and have a wide variety of clients.” Julian Bell.

RWE Trading – More than energy What links speculative trading with capital investments. Energy Trading . and the temperature in Germany with the time of day in the UK? Simple. the political climate in the Middle East with emerging economies in Asia.

we permanently question the status quo and develop new methods and products at a high pace. Environmental Trading RWE Trading is a strong supporter of the European Emissions Trading Scheme. In order to stay ahead of the constantly changing markets. From day one our unique approach to your development will uncover and nurture your true potential. Power wholesale markets have been growing rapidly across Europe. The team delivers cutting-edge financial methods and tools to quantitatively assess and manage all types of energy commodity prices and energy risks. Cruise Desk Head of Biofuels – Swindon Risk management Our risk management expertise provides a structural framework that supports traders and helps us to make the best possible use of market opportunities.jobs. We are seeking talented people within every area of our business. Your opportunity – Join RWE Trading and prepare to excel. gas and carbon.” Success in the dynamic and complex energy trading business would not be possible without professionals from a wide variety of disciplines. coal and oil. “At RWET the world is your market place” David Matthews. gas. What we can say is that the European power market. The team analyses fundamental data. “The professional calm that pervades results from three underlying factors: our people. Relying on the expertise of its traders and risk managers.trading@rwe. We support the management of the generation asset and retail portfolios owned by our sister companies across the RWE Group by taking on and pooling inherent commercial risks arising from movements in the power and fuel markets. on the German market alone. RWE Trading has become a driving force behind energy trading. trading the relationship between power. RWE traders not only deal with commodities such as power. No one knows what the markets will really be like in twenty years time. Coal Trading RWE Trading is on the fast track to becoming a key player in the international trading and marketing of coal. A new and exciting situation is evolving that challenges every gas trader to make full use of the value chain Structuring and Valuation The S&V team bridges the gap between the worlds of academia and trading in order to attain higher levels of energy trading business excellence. In recent years new fundamentals have emerged in the coal market.rwe. The rapidly rising demand from China and India and the renaissance of coal-fired power generation in Europe have caused significant increases in ocean freight rates and coal export prices. Trader Short Term Position Management (STPM) – Essen Power Trading United Kingdom RWE Trading has been at the forefront of efforts to stimulate liquidity. If you want to make a difference in the markets of the future.com “You‘re at the centre of everything at RWET” Klaus Dribusch. will undoubtedly have a decisive influence on the integration of the European economies. RWE Trading deals in both physical and derivative markets and takes full advantage of the structure of its business model and group-wide synergies www. RWE Trading is already a significant player in the physical coal and freight trading markets. Send your CV and covering letter to trading. Power Trading Continental Europe The power market is on the verge of becoming a truly European market that reaches from Spain to Scandinavia. Analysis Energy markets are influenced by a multitude of drivers that are often interdependent.com . analyse and balance risks. The analysis team interprets those vast amounts of data and turns it into useful information.Since competitive energy markets emerged in Europe in the late 1990’s. Oil Trading Trading in oil is a global challenge. “It’s a dynamic fast moving environment” Sonia McCorquodale. coal. a relatively young market with fast growth rates. the value of these activities is enhanced by our active involvement in coal and freight financial derivatives. both through trading outright power and also through an active spread trading function. Trading CO2 allowances is a vital part of hedging commodity risks and has already become a new fundamental of our business. From risk management procedures to the impact of weather conditions on energy supply and demand. Structurer – London Gas Trading Enormous regulatory changes are creating an open. One of RWE Trading‘s key functions is to monitor. competitive gas market. traded volumes are expected to be eight to ten times the actual domestic electricity consumption. our successful business model and our market positioning. RWE Trading wants to hear from you. performs time series analyses and publishes market reports. We are the energy wholesale risk pool and risk manager for the RWE Group. we also actively trade physical and financial derivatives.

traders account for the bulk of revenues – 74% of first-quarter 2007 profits at the bank were derived from trading and principal (private equity style) investments. Sales people. This compares to the ‘primary market’. Research: researchers. Most traders are flow traders – they buy and sell financial products on behalf of the bank’s clients. Trends Sales. Roles and career paths There are two fundamental types of trader: proprietary traders and flow traders. Sales people use the information to advise clients on investing in that sector. Traders: these are the people who actually buy and sell. “You have to have genuine interest and curiosity in the markets. promotion is very much based on ability to perform. UBS wears the crown in equities trading and research. millions of financial products are traded in the secondary markets. banks have begun beefing up with people who can sell products into hedge 32 > . And banks are now trading a broader range of products – commodities are the latest hot favourite. Progression in sales and trading is all about performance. Goldman Sachs Key players If Goldman is the king of proprietary trading. Deutsche has followed Goldman down the trading path – 41% of first quarter 2007 revenues came from trading activities. Their aim is to buy low and sell high. Researchers spend their time scouring companies’ balance sheets and talking to company directors.com Careers in Financial Markets 2007-08 Sales people: sales people work the phones. who buy the products. At the same time. Brokers selling equities must now reveal how much of their commission covers research costs – and buyers don’t always want to pay up. industry sectors or the prices of bonds or other assets. the emphasis is on selling complex derivative ‘solutions’ which have been created specifically to fulfil clients’ needs – rather than simply selling bog-standard equities or bonds. As a result. At the touch of a button. They take orders for financial products which they pass on to flow traders. an achievement that requires both judgement and luck. commodities and other financial products. trading and research trio Researchers are struggling to pay their way Top trader reportedly earned £50m in 2006 How Mon hot ey Ku Opp dos ortu nitie s The aim of the secondary markets is to buy and sell ‘used’ financial products to make a profit – or at least to avoid a loss.” says Sally Whitman. “Following the graduate training programme. bonds. they can also trade the securities. Midway between the sales people and traders exists a hybrid – the ‘sales trader’. meanwhile. they call clients to recommend securities. Deutsche Bank has traditionally been to European fixed income. pension funds and institutional investors – from the moment the markets open. equity researchers in banks are increasingly forced to justify their existence. where institutions issue new financial products to raise money.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Sales. funds – hedge funds trade more frequently. report on trends in company share prices. Researchers have had a harder time. eFinancialCareers. like traders. Some have opted to join independent research houses instead. have been on something of a roll. They get up early to be at their desks when the markets open at 8am and spend their day in front of computer screens with hundreds of other traders on the ‘trading floor’. Like sales people. trading and research people at investment banks are being buffeted by distinctly different trends. At Goldman Sachs. At the same time. flow traders tell sales people whether a particular trade is possible at a particular price. their dynamic and what makes them tick” Jonathan Jones. calling clients – rich individuals. also known as analysts. The screens are a window onto the financial markets and show movements in the prices of shares. Every day. but the German bank is increasingly being challenged by newcomers such as Barclays Capital. In 2007. traders and researchers advise on and carry out these sales. so there’s more money to be made selling to them! Traders. What UBS is to equities. Proprietary traders can make stupendous profits – and also stupendous losses. traders can buy and sell the products they’re tracking. In sales. it won the Thomson Extel Award for panEuropean equity research for the seventh year running. Citi came second and Merrill Lynch came third. trading and research The multi-millionaire ‘second hand’ market traders Trading is the best paid of the sales. head of specialist resourcing at Deutsche Bank. A handful of elite traders – the so-called proprietary traders – trade on behalf of the bank itself. Sales people tell flow traders what clients want to buy and sell.

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Numeric skills and an understanding of the economy as a whole are also important. “You need also to have a sense of risk and reward. When important data is released. excellent with numbers. After a six-week introduction course and two weeks of studying for his regulatory exams. extremely organised. Never allow yourself to get emotional about a trade. in the commercial sense. and the ability to keep calm under pressure. The hours will normally be reasonably civilised but the deadlines tend to be moment to moment rather than a few days. executing trades and managing risk. as opposed to. Strong quantitative skills are also important and fluency in a second European language helps. On a slow day I spend a lot of time reading research reports and discussing trade ideas with my colleagues. Pay figures from headhunter Napier Scott suggest that the very top salespeople in the hedge fund space made £1. you will need to have the ability to build relationships.efinancialcareers. candidates need excellent interpersonal and communications skills and very strong written and analytical skills. I then re-evaluate my positions and decide if anything needs to be changed. I usually leave around 5:30pm. You must also be able to process and analyse information quickly and be confident enough to make fast decisions based on this analysis. “The markets can move fast so you need to be quick thinking. if you do not have a well thought through plan. it can get hectic and. 35 . Can you describe a typical day? I usually arrive shortly after 6:30am to read up on overnight news and market developments. Decisions must often be made in a matter of seconds but you still always have to be mindful of how they will affect your relations with clients and brokers in the long run. by comparison 2006 pay (£k). talking to brokers and so on.co. listen and interpret accurately. corporate finance? I was attracted to the everyday excitement and challenge of the market and the fact that no two days are the same. rumour had it that one foreign exchange trader made £50m. What kind of person do you need to be to excel in this role? You need to be able to think rationally and perform well under pressure. Always base your decisions solely on rational risk/reward calculations. top-tier banks Title Managing director Executive director Director Associate director Associate Salary 130 105 90 75 65 Bonus 930 730 490 180 85 Source: Napier Scott Skills “You have to be analytical. You have to have genuine interest and curiosity in the markets and how they work. Make sure you follow current developments and read business newspapers. Learn about the markets. whether it is a client or proprietary trade and market conditions.Get the latest on internships & grad programmes www. derivatives sales roles are the most lucrative – particularly those that involve selling to hedge funds. What does your role involve? Mostly quoting prices to clients. credit traders.” says Jonathan Jones.” Andreas’ tips: eFinancialCareers.” To work in research. rates trading Bank of America Continued from pg. he took up his current position on the rates trading desk.com Careers in Financial Markets 2007-08 Plan your trades and be disciplined. A lot of time is also spent finding and analysing information by following the news being published.” Elder explains. Few researchers make those amounts nowadays. equities graduate recruitment manager. Why did you choose your division. EMEA head of campus recruitment at UBS. Europe at Credit Suisse. When the 2006 bonuses were paid out. says Veronica Elder. you also need the ability to build and maintain relationships. In the sales space. say. Pay Successful proprietary traders are some of the best-paid people working in investment banks. If the market has been quiet.uk/students Profile Andreas Ohlsson Analyst. All this holds true in sales trading too but. I also take proprietary positions where I see opportunities in the market. their dynamic and what makes them tick. but after a busy day there might be a backlog of admin to do. Richard Moore. 32 Andreas joined Bank of America’s graduate programme in June last year after completing an MSc in economics and finance at the Stockholm School of Economics. EMEA head of recruiting at Goldman Sachs. be able to work well under pressure and multi-task. On a busy day. agrees: “Whether your clients are internal or external.35m in 2006. because it’s a more client-facing role. The size of the trades varies a lot depending on the type of product. the rest of the time is spent executing and hedging trades while trying to identify opportunities for proprietary positions. mistakes can easily be made.

European banks rule the foreign exchange trading roost. managing directors trading exotic foreign exchange options can make more than £1m. the Japanese yen) and invest in currencies with higher interest rates (e. and more complex ‘exotic’ derivatives trading.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Foreign exchange A career for world news junkies FX professionals make a living out of changes in currency prices Underlying factors suggest the dollar is on the way down European banks dominate FX trading How Mon hot ey Ku Opp dos ortu nitie s In the world of finance. According to headhunter Napier Scott. sterling). FX structurers assemble complex exotic derivative products for clients. trading and research. Top FX houses by % market share 2007 Ranking 1 Deutsche Bank 2 UBS 3 Citi 4 Royal Bank of Scotland 5 Barclays Capital Market share (%) 19. polished and articulate sales person. and by how much. EMEA head of FX at Bank of America. Roles and career paths Roles in foreign exchange are similar to those in sales. the big news for some years has been the dollar – when. while others may only sell to companies. the bank will advise its clients to sell and will itself sell that currency and buy one that’s appreciating. sales jobs in FX are usually divided between different client types. In 2006 all but one of the five top players (Citi) originated in Europe. executive director of Akamai Financial Markets. Key players If US banks dominate M&A activity. with some sales people specialising in hedge funds. is a must. highly charged area. It is all about predicting the likelihood of one currency falling (depreciating) or rising (appreciating) against another. Pay Top foreign exchange traders can make a packet – particularly if they work with derivative products. FX trading jobs are usually split between ‘vanilla’ trading. Bank of America The other big news is carry trades. but bets on the future direction of foreign exchange price movements. eFinancialCareers.8 Source: Euromoney 14. it’s argued that the value of the yen has been kept artificially low. or so-called futures. where the maximum is a mere £700k. many products traded on the foreign exchange markets are not actual currencies.g. whether at undergraduate or postgraduate level. “You should be comfortable with probability concepts and be able to analyse macroeconomic data and events accurately and quickly. “You need to be able to see numbers and be very hot on numerical analysis.” he adds. will it decline? But not everyone is pessimistic – there’s a school of thought that the US economy is so productive and innovative that its currency may have become undervalued. Trends If you work in the world of foreign exchange. As in other product areas. To complicate. particularly pure maths. markets and informed risk-taking. If a depreciation is deemed likely. But you won’t make as much as this if you work with vanilla products.” he says. Because yen are sold on the open market during these trades.com Careers in Financial Markets 2007-08 Skills “Successful foreign exchange professionals need to thrive on action. FX researchers produce reports that are used by sales people to keep clients informed of what’s happening in the FX markets. where products are simple and trades are easy to execute. agrees Simon Head. except that you will be trading currencies and their derivatives. But at the same you need to be a very confident.9 36 .” says Vincent DeLorenzo.3 9 8. These occur when investors borrow money in currencies with low interest rates (e.g. FX exotic options trader – London (top-tier bank) Title Managing director Executive director Director Associate director Associate Base pay (£k) 125 120 110 90 65 Bonus (£k) 900 650 400 180 65 Source: Napier Scott “You should be comfortable with probability concepts and be able to analyse macroeconomic data and events accurately and quickly” Vincent DeLorenzo. A highly maths-focused degree.9 8. FX (or foreign exchange) is a hugely important.

eib. minimum of 5 years’ professional experience covering the feasibility. if possible. preferably in Finance or Business related fields at post-graduate level. financial position. Energy. Bvd Konrad Adenauer L-2950 Luxembourg 3 (+352) 43 79 1 – 5 (+352) 43 77 04 www. international exposure including developing countries. The EIB is seeking to recruit talented. CREDIT RISK OFFICER To provide independent credit opinions on proposed operations and follow the credit quality of a highly diversified corporate and public portfolio in accordance with the Bank’s Credit Risk Policy Guidelines (CRPG). prospects and investment decisions. draft financial reports and recommendations.U. prepare sector studies (i. University degree. wellqualified professionals. environmental. assess. Profiles sought: LENDING/CREDIT SPECIALIST To identify lending opportunities in line with set priorities (for lending operations in and outside the E. and follow up key clients/ borrowers. Industry. 100.e.org/about/jobs. The EIB offers attractive terms of employment and remuneration with a wide range of benefits and is an Equal Opportunity Employer.eib. Experience with credit risk assessment methodologies and rating agency criteria.org/about/jobs and click on the relevant reference number.eib.org – U info@eib. assist in identifying and developing new investment opportunities. particularly in a credit function. with excellent knowledge of English and/or French and knowledge of other European languages.org . languages and professional backgrounds of its staff make it a dynamic and exciting place to work.Financing Europe’s future European I nvestment Bank • European Investment Bank • European Investment Bank • European Investment Bank • European Investment Bank The European Investment Bank (EIB). economic and financial viability of capital investment projects and programmes. please go to www. analyse private and/or public borrower’s performance. Advanced academic qualifications in Engineering/Economics. SECTOR ECONOMIST/ENGINEER For further details or to apply.) lead. development and supervision phases of projects. Contribute to the development and implementation of CRPGs procedures to ensure that risks assumed by the Bank are in line with approved policies. Minimum of 5 years’ recognised professional experience in banking. University post-graduate degree in Finance/Economics. or Human Capital) and contribute to the Bank’s strategy. Knowledge of risk-pricing techniques would be an advantage. Proficiency in analysing the credit risk of corporate and public entities. design. structure and execute transactions. All current vacancies can be found on our website www. Experience with the preparation of environmental impact studies is also desirable. Environment. Transport: rail/road/ urban/water. based in Luxembourg offers the opportunity to work for Europe in a truly international environment. To assess the technical. 3 years’ relevant professional experience within the banking industry (notably in credit risk analysis and documentation). The Bank’s mission and the diversity of cultures. the European Union’s financial institution. preferably with international and/or developing countries exposure.

Corporate bankers typically help clients raise money through loans. This is where things get interesting: as you progress. operations or treasury management. for instance. If you don’t fancy the relationship management side of corporate banking. or selling products to corporate customers. Increasingly. you may well start as a credit analyst. Dresdner Kleinwort. with over €1. The infrastructure boom continued in 2007. Corporate bankers might also arrange an international payment or put together ‘trade finance’ packages to ensure a company is paid by its foreign customers. be able to develop trusted relationships and have strong customer outlook” Hannah Field. But there are indications that the market expects an eFinancialCareers. HSBC and RBC Capital Markets clubbing together to issue a £4bn loan to back the takeover by Macquarie of German power utility RWE.478 1. this has yet to happen. Credit analysts look at companies’ balance sheets and work out whether to issue loans to them. Barclays Group Roles and career paths If you opt for a career in corporate banking. there’s an overlap between corporate banking and capital markets. From there.123 984 956 877 800 “Candidates will need to be numerate and analytical. you’ll decide whether to lend to customer X or customer Y. In December 2006. such as bridge and road building. Bankers working in capital markets help companies raise money by issuing equities or debt. as its name suggests. lending money to a handful of the bank’s customers. corporate banking requires an understanding of some of the more complex financing methods. In many cases.293 1. Top European banks by assets Name Barclays BNP Paribas HSBC Royal Bank of Scotland Crédit Agricole Total assets (€bn) 1. is growing fast. which if successful (and not gatecrashed by Royal Bank of Scotland) will see its assets swell to nearly €2.com Careers in Financial Markets 2007-08 38 Source: Thomson Financial Corporate banking. with Barclays Capital. rose particularly rapidly. Barclays is by far the biggest force in Europe.260 . the global value of syndicated loans (loans which are made by a group of banks rather than just one) rose to a record £1. which allow investors to trade the risk of a loan defaulting.5 trillion.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Corporate banking Banking to the big boys Corporate banks provide banking services to large and SME firms Barclays is the biggest corporate bank in Europe Loans made to European companies have been rising fast How Mon hot ey Ku Opp dos ortu nitie s Deutsche Bank ABN AMRO Société Générale HBOS Banco Santander 1. it spans the relatively simple business of issuing loans. It’s not always seen as the most exciting role. Low interest rates and low default rates conspired with corporate acquisitions and leveraged buyouts to drive companies’ demand for loans to record levels. you could always go into risk/credit. progress to being a relationship manager. to more complex matters such as helping to minimise tax paid by overseas subsidiaries or managing changes in foreign exchange rates. but it gives you the tools of the trade and is a crucial barrier to help stop the bank losing money. Most relationship managers are winers and diners: they spend a lot of time meeting company FDs and CEOs in an effort to win and keep their business. Loans to finance infrastructure projects. At the time of writing. Corporate > Trends 2006 was a good year for corporate bankers.439 1. As the volume of corporate loans has grown.690bn – up 8% on the year before. And Barclays may be about to become bigger – in April 2007 it launched a takeover bid for ABN AMRO of Holland.5 trillion behind it.409 1. you could. Key players When it comes to assets. is the broad term given to the different banking services that corporate institutions need in order to function. increase in defaults soon – the market for ‘loan credit default swaps’. product. questions have been raised about the likelihood of defaults on repayments. Also known as business or commercial banking. It requires an intimate understanding of the company’s strategy and a keen appreciation of the risks of default. but they will bring in their capital markets colleagues if necessary.

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And with a training plan that's bespoke to you. flexible and always open to fresh thinking. go to www. To learn more about a career with an investment bank that's not like all the rest.Creative.graduates. You'll also be encouraged to draw inspiration from colleagues across the business as you share your ideas and work in a team to generate new ones. We want to hear what our future leaders have to say sooner rather than later.bnpparibas.co. so you'll be doing a real job and making genuine commercial decisions from the outset. BNP Paribas is a global investment bank that likes to do things its own way.uk It’s not business as usual It’s for putting your ideas on Not getting your feet under The bank for a changing world . you'll have a true say in how you progress. That's why we give our graduates so much responsibility so early on.

which adds a layer of complexity when you’re working out how much they can afford to borrow. What does managing the charities team involve? I lead a team of nine relationship managers who work with charities and local government. understanding how they operate and what’s important to them is vital. Source: Morgan McKinley Pay If you become a corporate banker you may not become as impressively rich as an investment banker or trader.” says Hannah Field. Equally. science and analytical capability being an absolute must. including Barclays. 41 . because if you don’t. Royal Bank of Scotland and HSBC. Only after you have spent some time with us can you make an informed decision about which area is most suited to you. banks tend to have relatively generic requirements of their corporate banking trainees. including IT and HR. coupled with the ability to build strong. “Regardless of the area. but candidates need to make sure they have opinions about the financial services and corporate banking sector before coming to interview. she advises: “It doesn’t matter if you don’t have an economics degree. he has covered shipping clients. unless you want to remain a credit analyst. But charities and local government clients still expect fast decisions and excellent service when they want to borrow. As a result. we also aim to make them more efficient in terms of the way they manage their money and receive payments. We deal with companies with a turnover of £20m to £1bn. Lloyds TSB. but look at what the business wants to achieve overall. candidates will need to be numerate and analytical. with maths. Corporate banking salaries (£k) and bonuses (%) 2007 Title Credit analyst Bonus Relationship manager Bonus Junior 30-40 0-40 n/a n/a Intermediate 35-50 0-60 40-55 0-60 Senior 40-80 0-70 55-80 0-70 Skills Corporate bankers need to be friendly types with a cool and calculating streak – it’s no good befriending clients and lending them money if they can’t pay it back. What about the legendary long lunches? Talking to people. Go the extra mile – don’t just provide the solution you’ve been asked for. as well as charities and local government. But you must research well.co. offer training in corporate banking. 38 banks also have an array of operational positions. eFinancialCareers. But if you’re going into the real detail of a company’s finances and projections of their business.” Does charity work differ from normal corporate banking? It’s a bit different because they don’t operate in the commercial sector – charities are governed by boards of trustees. so lunches are involved. it’s no good being an expert at analysing the risk of clients defaulting if you can’t also build client relationships. Various banks. For example.uk/students Profile Hugh Biddell Manager Charities and local government team. of course.Take our online numerical tests www. It often helps to do that in a relaxed atmosphere. we provided all the credit card payment services for the Comic Relief Red Nose Day. The best and worst aspects of corporate banking life? The best thing is seeing people’s businesses succeed and feeling you’ve contributed to making it happen over a period of time. There were around a million transactions to process. Hugh joined the Royal Bank of Scotland as a graduate trainee in 1981 and moved into the corporate banking division.com Careers in Financial Markets 2007-08 Enjoy what you are doing. Hugh originally graduated in English Literature and Language from Liverpool University but also has an MBA from Warwick University plus an ACIB (Associateship of the Chartered Institute of Bankers) award. HR director at Lloyds TSB Wholesale and International Banking. this is not best achieved over food! Hugh’s tips: Be positive.” Stephen Smith. Since then. but you’ll still do ‘quite well’ and have a life! According to recruitment firm Morgan McKinley. be able to develop trusted relationships and have strong customer outlook. Local authorities have their borrowing limits regulated under a separate act of Parliament.efinancialcareers. long-lasting client relationships. head of graduate recruitment and development at Barclays. The worst is finding that clients have got into difficulties through a change of circumstances that’s often beyond their control. you won’t perform well. adds: “Our senior executives look for the golden combination of exceptional academics. healthcare clients and professional services firms. senior relationship managers earned a maximum of around £130k in 2007. Why corporate banking? You get to meet the decision-makers and owners of large companies and to discuss the strategic drivers of the business. RBS Continued from pg. Our role is not just about helping our clients to borrow money.

many funds have outsourced the administrative aspects of their operations to global custodians.513 1. and the asset management market starts to look very different to the way it did only a few years ago. A fund that tracks the FTSE 100 index. The investment decisions of passive funds are typically made using computers. for example.027 958 “Fund management is more about qualitative than quantitative research. research analyst or operations expert. Between 2003 and 2005. Active funds: active fund managers buy and sell financial products in an attempt to outperform the rest of the market. however. Fund managers invest in everything from shares. Fund managers select a portfolio of assets whose value will track that of a financial index. while other people are employed to do the rest.166 1. Operations staff working for fund managers do everything from working in IT to settling and reporting trades. such as Fidelity Investments or State Street Global. meaning fund managers working on them have a relatively easy life. will aim to follow the value of the UK’s 100 biggest companies.016 1.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Fund management A game of patience. Today. Some big US fund managers.493 1. There are two basic kinds of fund: Passive funds: also called ‘index trackers’. making it good for graduates with any sort of degree” Richard Barry. profits and pension funds Fund managers invest money for institutional and retail clients Specialist funds are becoming more popular Pay can reach £140k plus bonus for senior fund managers How Mon hot ey Ku Opp dos ortu nitie s Fidelity Investments AXA Group Capital Group Credit Suisse Deutsche Bank AG Vanguard Group 1. however.com Careers in Financial Markets 2007-08 42 Source: Pensions and Investments Fund managers invest money on behalf of their clients – which include pension funds. strong markets saw assets under management rise for the third year running. Fund management marketers wine and dine potential clients. insurance companies. uncertainty surrounding the US economy means equities may also be on the way down. Active fund managers are what most people’s ideas of what fund management is: they invest in products they hope will rise in price. Bond funds. Headline figures alone disguise the fact that the market is evolving. wheat or aluminium.422 1. they also manage relationships with existing clients. Some funds offer fast growth and high risks. They scrutinise companies’ results and meet with management to discuss strategy. the UK’s BGI and Allianz of Germany.128 1. meet investment consultants and play a role in developing new products.260 1. However. fund managers focus on managing money. Baillie Gifford Roles and career paths Working as a fund manager used to involve everything from analysing and investing in products to persuading new clients to put money into the fund. others offer slower growth and smaller risks. unit trusts and others – with a view to making it grow. you could work as a marketer. rising interest rates and inflation help depress bond prices. 2006 Institution UBS AG Barclays Global Investors Allianz Group State Street Global Assets under management ($bn) 2. institutional investors. Top European fund managers. to sell at a profit. Scratch the surface. bonds or real estate to commodities such as oil. One of the biggest issues has been a shift out of traditional investment houses into more specialist funds. creating a danger that bond investors will lose money. are also active in Europe. If you don’t fancy being a fund manager. project management and customer services. such as hedge funds. They then write lengthy reports detailing their conclusions. research by the European Social Investment Forum (SIF) found that investment in socially responsible funds increased by 36% to £706bn. look set to have a tough time in 2007 as eFinancialCareers. however.441 . Key players Europe’s top fund managers include Swiss-based UBS. However. Analysts working in fund management help steer fund managers in the right direction when it comes to choosing assets to invest in. > Trends 2006 was a good year for Europe’s money managers. quantitative funds and emerging markets funds.

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Profile
Anna Sloan Investment manager Baillie Gifford

Continued from pg. 42

Anna joined Baillie Gifford in September 2002 after a summer internship the year before. After spending time on rotation in emerging markets and the European team, she now works in the UK small equities team as an investment manager based in Edinburgh. Anna read chemistry at Cambridge. What made you choose a career in fund management? The internship was the thing that did it for me. In those eight weeks I got to see so many different parts of the firm and integrated into the life here. I also like the fact you get to make decisions. You are not just a hamster on a wheel, you feel you are actually doing something meaningful for the client’s funds. Can you describe a typical day? I get in between 8:00am and 8:30am and check the company news – I am responsible for all the companies in several different sectors. I will probably then have meetings either directly with a company’s senior management to get a feel for the long-term strategy of the business, or with sell-side analysts. While at my desk, I’ve always got a report on the go on a company, either to recommend buying shares for our clients, or to sell if the investment case has changed. There may also be meetings to discuss reports on stocks covered by others in the team. At 4:30pm we have a daily meeting where you report to the rest of the team on any movements in your sector. I tend to leave around 6pm. What are the best and worst elements of your job? The best is getting exposure to so many different companies and people. I enjoy finding out what makes companies tick. There isn’t really a worst element, although one thing that separates us from others in the financial world is that everything we do is fairly long term – investors are typically looking at three to five years. This means you don’t instantly know if a decision you have made is the correct one or not. It has a longer burn to it. What do you think makes a good fund manager? You have to have the conviction of your beliefs once you have made a decision. You have to be able to assimilate a lot of information and reach a coherent conclusion. You must have the ability to defend your ideas, but also be prepared to accept if you are wrong.

Pay
Traditional fund managers don’t make quite as much as traders working in investment banks, but they don’t do too badly either. Hedge fund managers can make considerably more than anyone else – but they’re a special case. Fund manager pay is rising. Research by recruitment firm Morgan McKinley suggests top performers in the sector can now earn salaries of £140k, plus a bonus which can be several times higher, depending upon their performance over several years.
Fund management salaries (£k) 2007 Title Fund manager Research analyst Marketing exec Junior 38-45 30-45 28-34 Intermediate 42-85 38-80 30-60 Senior 60-140 60-120 50-80
Source: Morgan McKinley

Skills
The attributes required for a career in fund management vary according to the role. Laura Everingham, graduate recruitment manager at Fidelity International, says: “Researchers will need an enquiring mind, an avid interest in the stock market and a passion for finding out what makes a good or bad investment.” Richard Barry, HR manager at fund management firm Baillie Gifford, agrees: “Fund management is very different to investment banking; it is more about qualitative rather than quantitative research, making it good for graduates with any sort of degree,” he says. “We look for lateral thinkers and people who are naturally inquisitive. We want really bright people who are going to come up with winning ideas that will work, although you do still have to have some numeracy skills and have a good academic record.” Fund managers need to be able to assimilate large quantities of information and then identify the key points to make investment decisions, stresses Shane Kelly, head of international graduate recruitment at fund management firm BlackRock, formerly Merrill Lynch Investment Managers: “In asset management we generally look for potential – passion, ambition and enthusiasm for our business – rather than specific traits. But good quantitative, numeric and communication skills are a must.”

Anna’s tips:
Try to do an internship; it is invaluable in gaining experience. Research the job thoroughly and don’t be afraid to ask lots of questions.
eFinancialCareers.com Careers in Financial Markets 2007-08

Have an inquisitive mind. You need to have a genuine interest in the markets and the strategies of companies.

45

Banking & Financial Markets

Accounting in the City

IT in Finance

Employers

At a glance

Hedge funds
High risks and high rewards for the lucky few

Working for a hedge fund could make you very rich Few hedge funds employ university leavers After several years of growth the sector may yet implode

How Mon hot ey Ku Opp dos

ortu nitie s

Hedge fund managers are the maverick outsiders of the financial services world. Most are highly successful former traders or fund managers who have decided to go it alone. The name ‘hedge fund’ comes from the idea that money managers can hedge their bets to ensure they make money – whether the market goes up or down. What distinguishes a hedge fund from a traditional fund is its willingness to push the boundaries of normal investment techniques to achieve unusually high returns. Most hedge funds follow a particular investment strategy. The most popular strategies are: • Short selling: a short seller borrows stocks that they believe are overvalued and sells them on. When the price (hopefully) falls, they buy the stocks back at a lower price and return them to the lender; • Global macro: global macro funds operate a strategy similar to that used by short sellers. But they focus on global trends rather than movements in particular stocks;

$1m) and regulators believe the rich do not need the same protection as investors of average means. Figures from Hedge Fund Research suggest investors put a monumental $127bn (€98bn) into hedge funds in 2006, almost three times more than in 2005. However, even big funds can come unstuck very quickly. Vega Asset Management, formerly one of Europe’s larger funds, saw its assets under management plummet from $10.1bn in 2004 to $2.7bn in 2006, for example. As more and more hedge funds pile into the market, it’s becoming harder for established funds to make good returns. As a result, funds are investing in ever more obscure areas – such as art, wine and Hollywood films. Some funds have also begun to behave like banks and lend money directly to clients .

Key players
Who are some of the biggest boys in the European hedge fund universe? Look no further than the likes of Brevan Howard, with a total of $12.1bn under management; Cheyne Capital with $11.2bn under management; or BlueBay Asset Management, with $9.6bn under management. But while the big hedge funds get all the headlines, there are also plenty of small funds. In 2006, $100bn of London’s hedge fund assets were managed by firms with less than $1bn under management, according to HedgeFund Intelligence.

“It’s not necessary to have done an MSc or a PhD in a mathematical subject, but we would generally expect some maths at degree level”
Dermot Coleman, Sisu Capital

• Event driven: event-driven funds try to profit from one-off events, such as mergers and acquisitions or bankruptcies. For example, if one company decides to buy another, it will usually to pay more than the current market price for the shares.

Roles and career paths
Jobs in hedge funds tend to fall into four categories: • Analysis – analysing the companies, markets and financial products a hedge fund invests in; • Sales and marketing – liaising with investors and helping sell the merits of the fund; • Trading – executing the investment strategy and buying and selling financial products according to analysts’ recommendations; • Risk management and back office – settling trades, working out a hedge fund’s risk exposure and making sure everything flows smoothly. In many small funds this is outsourced to ‘prime brokerage’ divisions in investment banks. Most roles are distinct: if you join as a risk manager the chances of graduating to become an analyst are slim. However, it’s not unknown for analysts to become traders. The bad news is that, as a new graduate, you will be lucky

eFinancialCareers.com Careers in Financial Markets 2007-08

Trends
If you want to work in a hedge fund, London – or more particularly, Mayfair – is increasingly the place to be. According to the Financial Times, hedge fund assets are growing at a rate of 63% annually in the UK, and just 13% annually in the US. At the same time, London now plays host to 12 of the largest hedge funds in the world, up from just three in 2002, while New York has seen its share of the biggest funds dwindle from 28 to 18. Wherever they are based, hedge funds are exempt from normal financial services regulation, partly because the minimum investment is high (typically

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31.8 in assets. Find out more at When you’re dealing with $1. It’s a friendly. There’s no ‘secret sauce’ at Barclays Global Investors – just a scientifically informed.trillion We base our actions on rigorous analysis of data and the expertise of our people. with world-class graduate and internship programmes.com *Source: Global Investor.bgigraduatecareers. supportive and balanced workplace. consistent and rational approach to managing the largest collection of assets in the world*. www.06 Barclays Global Investors is authorised and regulated by the Financial Services Authority.12. . A career in the science of investment could be waiting for you. instinct isn’t enough.

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they prefer to recruit people with a few years’ experience from investment banks. 46 to walk into a hedge fund. What’s been the hardest part for you so far? I’d studied plenty of economics. 49 .” he says. most of David’s day is taken up generating investment ideas for trades. bankers and fellow analysts. and a postgraduate qualification or relevant work experience will help you stand out. That could come as much from engineering as economics. “To work for us. I am active in a number of large and involved M&A situations. says quantitative skills tend to be paramount. As an equity analyst. It also involves having discussions with company management. How did you come to work for a hedge fund? I took an unusual route into the hedge fund industry. it’s not necessary to have done an MSc or a PhD in a mathematical subject. “Financial markets and hedge funds are dynamic. Why the hedge fund sector? A booming M&A environment and strong equity markets have allowed exceptional returns for many alternative investment strategies. There are now more jobs and more opportunities to become involved than ever before.Get ahead: start your job hunt early www.” he adds. the hedge fund sector is continuing to receive large capital in-flows. And it’s a much flatter hierarchy: there are 25 people in this office and I sit next to two partners. There’s more freedom in terms of the products you can invest in and the positions you can take. This involves researching companies about to engage in mergers and acquisitions or restructuring activity and coming up with suggestions on stocks that might rise ahead of a merger. Here. Hedge fund traders earn the most – after a few years. the leap can be made. “But you do have to have proved yourself in the investment bank community. which are always very exciting. It’s competitive. It was a bit of a struggle to start with: I spent the first month working all hours of the day. so adaptability and creativity are key attributes. You also have more independence than in an investment bank. Most are small organisations without the time or resources to train graduates themselves. a managing director and head of product development at Financial Risk Management. Skills “For bright. not just the generalisations written about the industry in the press. the top three hedge fund managers each took home more than $1bn. After taking my MSc in economics at LSE. Not everyone earns such sums. innovative and numerate and have a good academic record from a leading university. plus an unspecified bonus.efinancialcareers. normally in around two years. Hedge fund ex-bonus salaries (£k) Title Fund manager Research analyst Marketing executive Hedge fund trader Junior 38-45 30-45 28-34 n/a Intermediate 42-75 38-70 30-42 45-60 Senior 65-120 60-120 50-65 60-80 What’s the most exciting thing you’ve got coming up? Currently. you are involved in everything from day one. the 25 highest-earning hedge fund managers earned an average of $570m in 2006. Source: Morgan McKinley Pay According to a survey by US-based Alpha Magazine. More to the point. Sisu was looking for a junior analyst. a partner at event-driven hedge fund Sisu Capital. As a result.” says David Howell. but we would generally expect some maths at degree level. Hedge funds like people who are communicative. managing director of E-M Financial Services. and who have honed their skills in an investment bank. numerate graduates who are strong at financial analysis and spreadsheets.” David’s tips: Study hard. Dermot Coleman. Think about joining an investment bank – they have well-structured graduate programmes and act as a feeder into the more specialist hedge fund sector. and the importance and influence of hedge funds continues to increase. up 36% on 2005.uk/students Profile David Mills Equity analyst Sisu Capital Continued from pg.com Careers in Financial Markets 2007-08 Get an understanding of what different hedge funds do. And the least? That would probably be number-crunching company accounts to create comparable company valuations. David has a BA in economics from Cambridge and an MSc in economics from the London School of Economics. so I applied and got lucky. If you go to one of the top-tier banks you can use it as a springboard to any number of different options. Most funds recruit analysts with several years’ experience in an investment bank or somewhere similar. eFinancialCareers.co. A salary survey by Morgan McKinley suggests a lowly junior fund manager can expect a salary of £38k to £45k. but not much pure finance or accounting. salaries are £80k plus and bonuses are unlimited. Instead. says John Capaldi.

KKR. when a fund needs a senior expert. But don’t count on finding a job easily – the industry hires very few juniors and none straight from university. as the value of all European private equity deals rose another 40% to €178bn.907 11. However. The good times look set to continue. And it’s getting even bigger. having spent time in strategy consulting. within two to three years of graduating with an MBA and having spent time in one of the industries mentioned above. it may be used for a management buy-in (MBI). two to three years after university. they also occasionally engage in the unpopular practice of asset stripping. funds with European roots such as Apax Partners and Permira also made it onto the top ten in 2006. The money invested by private equity funds is frequently used for management buy-outs (MBOs) where a company. while private equity is more usually associated with MBOs and MBIs. deals are getting bigger and funds are getting larger.950 Source: Initiative Europe “Raw graduates don’t get into private equity – almost never” Guy Townsend. eFinancialCareers.117 Trends Private equity is big business. Roles and career paths People who work in private equity benefit from the kind of job security most investment bankers can only dream of. such as US giant KKR’s $450m investment in the Boots chain. or breaking a company up and selling its assets to make a profit. However. Kohlberg Kravis Roberts (KKR) and Goldman Sachs Principal Investments each raising more than $30bn each.159 14. for example an experienced industrialist to help shape the portfolio companies. Key players Major US funds such as Carlyle. Occasionally there is a later entry point. or a division of a company. strictly speaking. Walker Hamill ‘Venture capital’ and ‘private equity’ are often used interchangeably. At the same time. or accountancy (deal-based disciplines only). up from €117m in 2005. There are two main entry points to private equity or venture capital. And in April 2007. they become co-owners or even sole owners of the companies in which they invest. But. with many banks unable to sell on the loans they made to clients to help finance deals. investment banking (in other words M&A or leveraged finance). 2005 was out-gunned by 2006. with private equity participating in some headline deals in 2007. turn it around and sell their stake at a profit some years later.721 8. but only when funds close How Mon hot ey Ku Opp dos ortu nitie s Private equity and venture funds exist to help raise money for companies by offering cash in return for an ownership stake. where managers from outside take over a company.027 19. they invest in an underperforming company. with bosses heavily criticised in the UK for paying too little tax and for taking a short-term approach to their investments in order to enrich themselves. First. Second. the value of the average European buyout was €136m. In 2006. is bought by its managers. As a result.329 5. Top 10 investors in European private equity deals. according to data provider Initiative Europe.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Private equity A sector to aspire to after a few years’ experience Private equity funds buy stakes in companies to sell for a profit Few take students straight from university Partners make millions.com Careers in Financial Markets 2007-08 50 . Alternatively. venture capital refers to the provision of funds for new and fastdeveloping businesses. Goldman Sachs Principal Investments (part of the bank) and Blackstone increasingly dominate the private equity industry in Europe.966 5. In an ideal situation. Permira Advisers Providence Equity Partners Carlyle Group Hellman & Friedman Goldman Sachs Capital Partners Thomas Lee Partners 11. Research by the magazine Private Equity International suggests the industry globally has raised $551bn in capital over the past five years – with the biggest funds such as Carlyle Group.510 11. or a specialist leveraged financier to help structure the best debt packages at the investment stage. The credit crunch has also created uncertainty for the private equity industry. However. success brought some unwanted attention. Goldman Sachs Principal Investments revealed it had raised the largest buyout fund ever – $20bn. 2006 Investor Kohlberg Kravis Roberts The Blackstone Group Alpinvest Apax Partners Value (£m) 25.697 7.

Originators are usually a fund’s partners who find new companies to invest in. hopefully. On the next rung are principals. but very lucrative. and Candover developed business plans for both businesses. It made me wonder where I’d get money from if I ever had the ‘big idea’. commercial. A junior (analyst) can expect to make a salary of £45k to £55k. That’s never easy if you’re letting people down at the last minute. which requires structural and operational change over three years. almost never. team players.com Careers in Financial Markets 2007-08 There are great jobs in private equity. probably around two to three years. This is equivalent to around 25% of the profits above a specified rate and can be very lucrative – particularly on very large funds. and registered with specialist private equity executive search companies. finance-related or consulting jobs. for three and a half years. and EurotaxGlass’s for €485m. I have a quasi-board role in both companies. sailing clothing. Pay at junior levels is. Entry-level staff are typically number crunchers who scrutinise the accounts of companies in which a fund is thinking of investing. They oversee the deals and make the most money if an investment is sold at a profit. Candover was the obvious choice. eFinancialCareers. Why private equity? I studied manufacturing engineering at Cambridge University. The most senior people make most of their money out of carried interest – or ‘carry’. What’s the worst aspect of your job? Tight timescales. 51 . He got offers from two funds. Private equity firms look for people who are highly analytical. plus a 40% to 80% bonus. What distinguished you from other candidates? I think it would be a good track record with branded consultancies. What have you worked on recently? I completed two deals during 2006: UPC Norway. a genuine interest to learn new things and. you’ll need to be an academic and professional wunderkind. what sector(s) they do deals in and what their recruitment requirements might look like in the next few years. but you have to be prepared to discard your personal life for a few weeks. but you need to know what you’re applying for and what differentiates the funds. decent Excel skills. Skills To work in private equity. “Raw graduates don’t get into private equity. and always believed that I had some entrepreneurial skills. but still not to be sniffed at. which led me in a roundabout way to the private equity sector. Simon has been with Candover. he joined a strategy consultancy that advised private equity funds. resulting in a close relationship with executive management. strategy consulting or leveraged finance.Profile Simon Holden Investment manager Candover Venture capital funds typically hire people from hightech industries. working on a range of investment ideas including premium spirits. do anything from arranging legal documentation to negotiating the right price. Learn where funds are in their investment cycle. Private equity is basically venture capital scaled up massively to a level where we can buy and sell 100% of a company’s share capital with a view to growing the business. Doing a deal is hugely rewarding. confident. funeral homes and market research. above-average interpersonal skills. who appraise whether a deal is worth pursuing and. I’ve also spent time on new deal origination.” says Walker Hamill’s Guy Townsend. And don’t think you’ll be able to walk-in fresh from graduation. financial sponsors (dealing with private equity firms). or leveraged finance (funding involving a higher proportion of debt than usual). predictably. less generous. Most junior hires come from investment banking or strategy consulting and former bankers need experience in one of three areas: corporate finance and mergers and acquisitions. as interviews are inevitably technical. financial experience and qualifications (Securities Institute diploma). M&A. where a handful of partners and principals could easily share $200m every six years or so when funds are closed. he decided to apply to most leading funds directly. if it is. After graduating from Cambridge University with a BA and MEng in manufacturing engineering. ideally in the top 10% to 15% of your peers. a tripleplay cable company based in Oslo (subsequently rebranded to GET) for €450m. a private equity fund that has invested more than €25bn in the past two decades. Pay Private equity is a long game. outgoing – and a foreign language never goes amiss. Simon’s tips: Your application needs to show that you’ve got the requisite skills and knowledge. Then you can try to interview for private equity. After four and a half years. After university you need to spend time in accountancy.

which have set up their own lucrative pensions advisory units – and are poaching consultants’ staff. you will typically study for a professional qualification. most firms rank fund managers by their likely future success. Each is part of a larger network of consulting groups.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Investment consulting A kind of ‘Which? Guide to fund managers’ Investment consultants help pension funds invest money Mercer and Watson Wyatt dominate It helps to be good at maths How Mon hot ey Ku Opp dos Investment consultants advise pension fund trustees on what to do with their money. Actuaries work more on asset allocation. Average pay for student actuaries is now £30. At the same time. with Watson Wyatt hiring some 25 this year for its UK investment practice. Hymans Robertson and Hewitt Associates. In 2006. dispassionate backroom professionals is quite mistaken. for example. Once hired. project management and team working. equally key is having a genuine interest in investment markets and conditions. They try to predict fund managers’ future performance from how they performed in the past. Alongside these market leaders are numerous smaller firms – Aon Consulting. Pay As investment banks compete for staff. They help trustees decide which mix of assets to invest in and with which fund management firms. There are also roles for relationship specialists. which advise on everything from staff benefits to computer systems. private equity funds or alternative asset classes. Days are spent scrutinising pension funds and reporting on their strengths and weaknesses. either as an actuary or as a chartered financial analyst (CFA). Most large investment consultants take on a few graduates: Mercer. Watson Wyatt and Aon offer structured graduate programmes. as is displaying evidence of skills associated with consulting.5k. investment consultants are coming under pressure from investment banks. Consultants’ appetite for staff is rising too – Watson Wyatt alone increased headcount 40% between 2004 and 2006.com Careers in Financial Markets 2007-08 Roles and career paths Jobs usually fall into one of two main categories: 1) Asset allocation: asset allocation specialists advise clients on whether to invest in equities. however. such as communication. “Effective communication of often complex concepts and subjects in a simple and well-reasoned manner is vital to being a successful consultant. demand for investment consultants’ services is rising. Median actuarial salaries 2007 Job title Chief actuary Senior function head Function head Department manager Section manager Section leader Senior actuary Actuary Student actuary Pay (£k) 156 137 89 66 56 48 43 31 Source: Remuneration Economics “Anyone regarding investment consultants as quiet. 2) Fund selection: fund selection specialists spend a lot of time analysing fund managers and questioning their 52 . a senior investment consultant at Aon Consulting. who are the true consultants and are usually more senior. dispassionate backroom professionals is quite mistaken” Mark Powley. eFinancialCareers. ortu nitie s Trends Driven by an ageing population and the need to make good corporate pensions funds. as well as the timing of the pension fund’s liabilities and the likely risks and returns.” says Jo Kleanthous of Mercer’s graduate recruiting team.” says Mark Powley. Skills “Being able to cope with studying and working simultaneously is important. investment consultants are being forced to make their roles more lucrative. which together account for around 50% of the market. Anyone regarding investment consultants as quiet. Aon Consulting 108 Key players The European investment consulting market is dominated by two key firms – Mercer and Watson Wyatt. bonds. However. It is a complex role using mathematical models to analyse such factors as interest rate changes. pay in the sector rose around 8%. investment strategy. while CFA candidates work in fund selection.

251 1. eFinancialCareers. Once people have gained a grounding in settlements or corporate actions. for example.003 5. BNP Paribas Securities Services. The best-paid people working in custody are relationship managers and product development specialists. some have shifted UK operations out of London to regional cities. Emily Ayre. Scott Dickinson. plus a small bonus.178 Source: FT Mandate Research “Once people have a grounding in settlements or corporate actions. But according to Morgan McKinley.08%) of the assets they’re managing.501 1. In 2006 the top ten custodians held over £36 trillion in assets – up 40% on 2005. These include income collection (for example collecting dividends from clients’ investments). notably servicing hedge funds. Custodians specialise in a particular area. Top banks by global custody assets 2006 Bank JPMorgan Bank of New York* State Street** Citi Global Transaction Services HSBC Securities Services Mellon Group*** BNP Paribas Securities Services £bn 7. these certificates are stored electronically. 2006 saw the merger of Bank of New York and Mellon Global. they will be equipped with the skills to allow a move to other areas within operations or an internal move within custody.305 2.012 6. Custodians levy a fee (typically up to 0. recruitment firm Morgan McKinley. so what you do will depend on where you work. however. But the industry is consolidating – for example.At a glance Global custody Keeping the paperwork for other people’s assets Many jobs are admin-driven compared to other areas Relationship managers earn the most It can be easier to land a job in this sector How Mon hot ey Ku Opp dos Global custodians once had large filing systems for their core work – storing certificates of share ownership for their clients. A junior sales and business development professional can expect a salary of £30k to £35k.558 6. but the role of custodian has widened to a range of other services. Few global custodians offer graduate training programmes. says people going into relationship management need two to five years’ operations or client services experience in the financial sector.” he adds. Northern Trust Société Générale Securities Services Caceis Investor Services *Pre-Mellon merger **Pre-IFS merger ***Pre-Bank of New York merger Roles and career paths Much of the work is administrative and repetitive. Today. Pay Global custodians are paid fairly modestly – six figures are rare. process-driven and able to work under pressure. Custodians are also pushing into new areas. Custodians also offer more client-focused and technical jobs. “Candidates should be able to demonstrate strong communication. so it’s worth sending in your CV speculatively. ortu nitie s Trends Global custody is big business and is growing fast. the top slot is now occupied by the merged Bank of New York and Mellon. However. Relationship managers. they will be equipped with the skills to allow an internal move within custody” Emily Ayre. need to be organised. pay for some junior custody jobs has risen by around 20% in recent years. Morgan McKinley 2.” she adds.306 Key players JPMorgan had the most global custody assets by value in 2006. planning and selling skills. making custody much less spaceintensive.com Careers in Financial Markets 2007-08 53 . trade support (ensuring trades are settled properly) and proxy voting on behalf of clients at shareholder meetings.766 1.246 2. work with clients to reassure them that their assets are safely maintained. performance measurement (calculating the returns clients’ investments have made over time). To save money. a custody specialist at Skills Emily Ayre at Morgan McKinley says people going into areas such as settlements and corporate actions may not need a degree: “They will. global relationship manager. says graduates typically move into these more interesting positions after a few years and can be fast-tracked into these roles.

8m ‘high net worth’ individuals (people with more than £500k in financial assets living in Europe). you’ll still need to be a very civilised cosmopolitan type who speaks 10 languages and has great table manners. but many deal only with clients whose financial assets (so not their houses or yachts) are worth more than $30m. Swiss companies such as UBS and Credit Suisse are the world’s leading bankers to the very rich.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Wealth management Combining diplomacy with product knowledge Key players Jobs are increasing as the number of rich people rises The Swiss banks. • Private client brokers. more particularly. People working on the investment side of private banking either invest their clients’ money themselves or offer their clients detailed advice to help them invest their own money. Leading global wealth managers 2006 Rank 1 2 3 4 5 Bank UBS Citi Merrill Lynch Credit Suisse Morgan Stanley Assets under management ($bn) 1. They also offer tax and pensions advice. The new focus on the merely wealthy as opposed to the mind-bogglingly rich is creating demand for a new breed of private banker. The number of rich people in the world just keeps on growing: at the last count in mid-2006. found assets under management rose 18% in 2006.” Roles and career paths If you work as a private banker. This can involve a lot of travelling and close contact with interesting. its profile is changing. Private banks typically look for clients with at least $1m (£503k) to invest.310 1. there were 2.3 trillion worldwide. investment specialists are brought in to put a more detailed solution together. particularly equities or stocks. When a relationship private banker has established a client’s needs. Private banks have cashed in on customer demand. private wealth managers help very rich people to manage their money. you’ll just need to be affable. they are increasingly courting the £1m club and below. we look for the Freddie Flintoffs of graduates” Andrew Butler-Cassar. equity. They also advise on the best products to invest in. In strict private banking terms. > eFinancialCareers.. and for plenty of them. Williams de Broe Trends Private banking is a growth business. They fall into two categories: • Private bankers. UBS and Credit Suisse. However. and their numbers were rising at a rate of 5% per year.com Careers in Financial Markets 2007-08 54 Source: Scorpio Partnership As their name suggests. “If you’re looking after someone with £10m. unusual and demanding people.” says one recruiter. As the industry grows. Goldman Sachs. which includes private client broking. private banks would turn their noses up at anyone with less than £10m in liquid assets. building relationships or managing back-office functions. to over £4. A study by Scorpio Partership. structured products of any kind or investments in the private equity and hedge fund sectors.100 559 374 . in broader ‘wealth management’ terms. the big US brokerage houses such as Citi and Merrill Lynch are heavy hitters too. including fixed income.319 1. People working on the relationship side are sales people. lead the field Senior wealth managers can expect to make around £250k How Mon hot ey Ku Opp dos ortu nitie s 6 7 8 9 10 HSBC JPMorgan Wachovia Bank of America Deutsche Bank 348 313 309 228 199 “We want all-rounders. HSBC and UBS all run graduate schemes for private bankers. you can expect to perform one of three broad categories of job: investing money for existing clients. If you don’t find a place on a graduate training scheme. Kleinwort Benson. They are typically product specialists. who help clients invest their money wisely and avoid any risks that might reduce the value of their assets. will open its doors to people with a mere £500k to invest. for example. Whereas in the past.. who are expert in a particular asset class. then it is possible to move into private banking with a background in corporate finance or. who assist their clients to buy and sell financial products. “But if you’re looking after someone who has £500k. Banks such as Coutts (now part of Royal Bank of Scotland). a consultancy working in the sector. help clients develop a strategy for charitable giving and advise them on bequeathing their wealth.

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anticipate issues and understand the specific needs of the client to deliver the right solutions. argues Sam Anderson. we look for people who can provide unsurpassed client service. “You don’t necessarily need to have a finance-related degree but a background in law or accountancy can sometimes help. in which wealthy clients state their general investment strategy and the broker buys and sells the products they think appropriate.com Careers in Financial Markets 2007-08 57 . Mark studied Arabic and Hebrew at Exeter University. We look for the Freddie Flintoffs of graduates. in which the broker advises the client what to invest in. with few brokerage firms offering graduate training courses. UK wealth management at RBS.uk/students Profile Mark Evans Family business and philanthropy Coutts & Co Continued from pg. g Think about whether you prefer managin dealing with clients. “We want all-rounders who are good at dealing with people at all levels. What does a typical week involve? One minute I am helping a client to set-up a charitable foundation. it is important you enjoy it. 54 fund management.” says Andrew ButlerCassar. However. As head of family business and philanthropy at Coutts & Co. Junior brokers are more likely to work on advisory mandates. the next. Try to get a summer internship at a private bank. When I am not doing all that. Source: Morgan McKinley Pay Like investment bankers. And which part could you life without? Anything to do with administration and paperwork. professional advisers. and helps design new products and services.” she explains.efinancialcareers. Private banking salaries Title Junior Intermediate Senior Manager Pay (£k) n/a 45-60 55-100 80+ What’s the most interesting thing about your job? Bringing private clients. Private bankers stress discretion and an understanding of client confidentiality as key attributes in this sector. If you want to be good at your job. HR business partner. from industry leaders to lottery winners. Languages are also increasingly sought after and attention to detail and an understanding of companies and what will make them successful also helps. Is it all about lunching with rich clients in Monte Carlo? Lunch is sometimes involved but Coutts has first class dining rooms. Skills It’s no good going into private banking if you have a taste for gossip or celebrity intrigue.Click online to begin your finance future www. What makes a great private banker? Someone who can develop a trusted relationship with clients. But you do need good relationship management skills. We don’t just want people who are product pushers. and those working on advisory mandates. At the same time. executive director at Williams de Broe. so there’s no need to go all the way to Monte Carlo! It’s all part of getting to know clients personally. Mark advises private clients on matters such as managing succession and effective giving to charity. There are two types of private client broker: those working on discretionary mandates. designing products or systems. Mark’s tips: Surf as many private bank websites as you can. private bankers are paid a combination of a base salary and a bonus – but not quite as big. I am managing the Coutts Prize for Family Business – the industry’s Oscars. empathise. I am making a presentation at a charity conference on raising funds from high net worth individuals. making the first move can be challenging. I might also be talking to a family business owner about setting up a family council. eFinancialCareers. You need to be able to listen. social entrepeneurs and charities together to make the world a better place. ask the right questions. and in between running various roundtable discussions on philanthropy and family business matters. He also runs various education and networking events.co. appointing a nonexecutive director or raising liquidity from the company and resolving a family conflict. According to Morgan McKinley. salaries for managers in private banking roles (typically with around eight years’ experience) start at around £80k. total pay is around three times that. considering different charitable projects to support in India – and the next. but needs their permission before making a move.

however. Where once trades were settled with reams of paper. which hold securities electronically and transfer them from one owner to another. research company Z/Yen does its best to rank operations departments on the basis of client satisfaction and core processing abilities. for example. many of which are still settled manually. “You have to be able to solve problems but also be very clientorientated. However. one of the biggest challenges for operations divisions is finding a way of automating the settlement of complex derivatives trades. they are now settled electronically through facilities such as Euroclear and Clearsteam. One example was the introduction of electronic trading on the London Stock Exchange in 1986. ‘Settlements’ covers everything from preparing the documentation required for a sale.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance: Operations The unsung heroes of investment banking Operations staff work to ensure transactions run smoothly Pay for operations staff is lower than for client-facing staff Banks are offshoring some operations roles to India How Mon hot ey Ku Opp dos ortu nitie s Go to any campus banking presentation and very quickly you’ll come across the words ‘back office’ and ‘front office’. Morgan Stanley 2. Clearing trades involves looking at the records made by other banks’ traders when they buy and sell shares or other financial products and checking that they match the records kept by people from whom or to whom the shares were bought or sold (the counterparties). they’re talking about operations. ABN AMRO 2. When people talk about the back office. sales people. Roles and career paths Electronic systems have vastly increased the speed with which simple trades are processed. for example. the division is a support function – operations professionals support people in the front office to make sure everything works smoothly and the bank gets paid. Liquidnet 3. accounting (finance) and risk management. Roles such as transaction processing are being shifted to lowcost countries such as India. In this context.200 people in Bangalore.500 roles to cheaper locations such as India and Poland. capital markets and corporate financiers of the front office. but as a cost centre it certainly has the potential to erode their profitability. Banks are acutely aware of this and are doing their best to ensure their back offices run as efficiently as possible. UBS Key players It’s harder to quantify ‘key players’ in operations than in other sectors – all banks have operations divisions and success isn’t just down to the number of people who work in them and the number of trades they process. The business of operations covers everything from IT to human resources. the Financial Times to employ 1. Instead. Goldman Sachs is said by 58 . Whether you work with derivatives or not. It is all about the quality of the experience for the client” Richard Moore. At the same time. people working in operations don’t liaise with customers to generate revenues and profits for the bank. Unlike the traders. to making sure the bank has been paid for all the shares it has sold and bought. People who work in settlements ‘settle’ trades – or ensure that stocks or shares bought and sold by the bank’s traders are exchanged for the correct amount of money. The large number of documents required for derivatives transactions creates roles for documentation specialists. But derivative trades are often too complex to be settled electronically and tasks are still done manually: trades are often confirmed by fax. On these measures. when it replaced floor trading as part of a series of measures known as the ‘Big Bang’ that made the City of London more competitive.com Careers in Financial Markets 2007-08 At its centre is the core function of clearing and settling trades. most operations Trends The operations division may not make money for investment banks. Overall operations performance 2006 Equities products 1. eFinancialCareers. UBS Fixed income products 1. there’s a need for more strategically-oriented staff who can help automate as many processes as possible. Its functions are so broad that operations specialists typically specialise in only one of these areas. ABN AMRO 3. while in April 2007 Citi announced plans to shift 9. ABN AMRO and Morgan Stanley were the key players for equities and fixed income respectively in 2006. This isn’t always good news for the people who work at the lower-skilled end of the operational continuum. JPMorgan Source: Z/Yen Ltd.

Even if it’s just temping in an office. But it also means we are often under a lot of pressure from the traders and sales managers. I was also attracted to the problem-solving aspect of it. so it can get very busy. It is very reactive. junior operations staff. it is very dynamic. something that is not often associated with operations. Source: Morgan McKinley Salary and bonus. the more senior you become. Pay If you work in operations. and that’s the only way you are ever going to learn. how it affects things downstream and how you might be able to improve the flow. jobs also have a strategic element – banks use operations staff to analyse ways of making processes more efficient and project managers implement their suggestions.Profile Ronak Patel Analyst. We are the centre point after the trade leaves the floor. the best-paid operations staff help settle the complex derivative trades mentioned above. global portfolio trading support Lehman Brothers Ronak joined Lehman Brothers’ graduate training programme last autumn after completing a computer science management degree at Warwick University. 2007 Title Trade support Settlements Business analyst/projects Salary (£k) 28-38 26-38 28-40 Bonus % 10-20 10-20 10-20 Skills Operations employees need to be attentive to detail. No one expects you to be able to do the job straight away. as we are the first point of contact for them. He now works in a team of two within the equities mid-office region of the bank’s global portfolio trading support.com Careers in Financial Markets 2007-08 Don’t be afraid to ask questions. 59 . then we can have a quiet day too. Ronak’s tips: Try and look at how the role fits into the whole scheme of things. Operations is a pivotal role. cleared and executed it. we take it under our wing. manager of Morgan McKinley’s banking operations division: “We have seen a continued increase in demand for individuals to work within prime brokerage as more banks take on new business and break into this lucrative market. Hiring has been buoyant in operations during 2007 and there is strong demand for people with the right skills and attitude. What prompted you to go into operations? All the way through school and university. sell things like how you’ve dealt with customer complaints or handled yourself on the phone. There is a convergence of skills – you have to be able to solve problems but also be very client-orientated. It means every day is completely different. have good organisational and time management skills and be creative. Solving endless problems each day – isn’t it frustrating? No. you’ll probably leave before 8pm most nights. manage their time well and have good attention to detail. but if the front desk is quiet. there are new problems to solve every day. work coherently and effectively within a team. It says the average salary for a senior trade support professional was £60k to £90k in 2007. What does a typical day for you involve? I get in at 7:30am and will check my emails from New York or Tokyo. so it was a logical step. plus a 40% to 80% bonus. You have to keep on top of the bookings during the day. You need to be able to handle it and you need to be good at dealing with people. says Richard Moore. I’ll then move on to the Asian bookings. particularly business analysts and project managers. As soon as it leaves the desk and the front office. Operations people need to be able to demonstrate they have good interpersonal and communication skills. to automate things more. New York and elsewhere. It is all about the quality of the experience for the client in that execution. numbers have always been the thing I have been strong on. Try to get some work experience or get on a graduate training scheme. eFinancialCareers.” he adds. What does your role involve? It is all about handling the bookings and confirmations for portfolio equity trades and sorting out any discrepancies or difficulties. and make sure everything has been properly booked out from yesterday. EMEA head of campus recruitment at UBS. According to recruitment firm Morgan McKinley. “The trade is only done when operations has validated. We are encouraged constantly to look at ways of improving how we work. You tend to get a lot of queries from London. says Martin Killeen. you won’t get the gargantuan bonuses of the front office. On the other hand. the more likely is that you will be assigned to this kind of strategic or project management role.” he says.

bonds or commodities) falls in value simultaneously because of outside events. • Operational risk: the risk that something might go wrong in the day-to-day running of the bank – from computer failures and floods to employee fraud. the human resources department and/or the legal team.5bn on bad bets on natural gas prices in 2006. the system seemed to bear up. Dresdner Kleinwort and UBS are among the banks that offer risk-specific training to graduates. Roles and career paths Market risk specialists use mathematical ‘value at risk’ models to work out the maximum amount of money the bank would lose in the case of an extreme event. They also work closely with traders to calculate the risk associated with specific trading transactions and typically sit on. such as computer system failure or disasters such as a hurricane or terrorist attack. Also known as ‘systemic risk’. They also ensure business continues as normal in the event of operational problems. risk training is covered by the IT or operations department. it also showed the need to properly assess the risk of doing business with some trading partners. Credit risk specialists scrutinise company balance sheets and meet company directors in order to determine the organisation’s financial health. or stop huge loans being made to companies on the verge of bankruptcy. If you work in operational risk.com Careers in Financial Markets 2007-08 Trends Risk has become increasingly complicated thanks to an explosion in the use of credit derivative products – in the first half of 2006. But sceptics say the system remains as precarious as ever and that many of the buyers of credit derivative products don’t understand the riskiness of their purchases. such as a high-profile court case against it or damage by association with a client who has done something wrong.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Risk management The professionals who stop bankers acting too rashly Risk increasingly involves traded derivatives products Some banks now offer riskspecific graduate training Risk professionals working near the trading floor earn the most How Mon hot ey Ku Opp dos ortu nitie s Voice of caution or spoilsport? Risk managers act as a restraining influence on a bank’s risky activities. eFinancialCareers. it’s a good idea to join a bank’s graduate training scheme. but if the borrower defaults. or close to. As well as looking at a company’s profit and loss accounts. such as rising oil prices or terrorist bombs. But with several banks said to be nursing large losses. • Reputational risk: the risk that something will happen to damage a bank’s name. the value of credit default swaps outstanding globally rose 50% to £13 trillion. it is sometimes considered a sub-sector of operational risk. a US hedge fund which lost $6. Few banks employ reputational risk specialists per se: the role is typically dealt with by the public relations department. The risks faced by financial institutions come in several forms. the CDS holder will itself have to pay the amount outstanding back to the lender. within a particular timeframe. If you want to follow a career in risk management. Permal Investment Management • Credit risk: the risk that a particular company or an individual will default on their obligation to repay their debts. Growth in the use of credit derivatives has led to claims that global financial markets are now less susceptible to risks such as the implosion of a major hedge fund. banks are able to quantify the risk that a client might default on a loan by selling it on – buyers purchase the right to receive repayments on the loan. or chain of events. They ensure a bank is not over-exposed to plummeting stock markets. model it and then improve the decision-making around it” Julian Shaw. you could find yourself doing anything from ensuring the computer backup systems work properly to conducting post-mortems on how well the bank dealt with disastrous events in the past. 60 . Following the failure of Amaranth. Using derivative products such as credit default swaps (CDS). including: • Market risk: the risk that a whole group of traded financial products (for example stocks. At some banks. they analyse how a particular transaction affects the company’s solvency. Deutsche Bank. Operational risk experts review the likelihood of particularly risky events taking place and formulate plans in case they do. “We look for people who can identify the problem from the confusion. the trading floor. Reputational risk specialists endeavour to manage a bank’s image.

the small size of the Sao Paulo office means we work as one team covering all areas of risk relevant to our location. Generally. market risk. it is not unusual for me to be communicating with teams from around the world. She has recently completed her first six-month rotation in the credit risk control team in London. banks will be looking for strong academics (2. What does credit risk control involve? Our concern lies with the ability of the counterparties we are trading with and the issuers of the securities we are dealing in to pay their obligations when they fall due. But it’s not just about solving the problem. Jo’s tips: Use your university holidays constructively. agrees Julian Shaw. enthusiastic and keen to learn. analytical. eFinancialCareers. all in the space of one day. Talk to any contacts you have that are already working in the industry to learn more about what the various areas involve. on a daily basis. will be like and whether it is right for you Don’t worry if you don’t have a maths or finance-based degree.com Careers in Financial Markets 2007-08 61 . Adrian Marples. This will allow you to gain a better idea of what a career in banking . many of which are to improve the functionality of our current risk systems. What skills do you view as necessary for working in risk? When starting out. but you will need to be highly numerate. Junior risk manager pay and bonuses 2007 Source: Morgan McKinley Jo is currently on the risk management graduate trainee programme at Dresdner Kleinwort. where each team will focus on specific areas and tasks in managing and controlling the bank’s risk.” he adds. according to Sally Whitman. and is now working in the local risk control team in Sao Paulo. Title Credit risk Market risk Operational risk Quantitative finance Salary (£k) 32-45 35-50 32-40 45-60 Bonus % 20 40 20 60 Skills You’ll need strong mathematical skills and a cool head. market risk could be the choice. According recruitment firm Morgan McKinley. and have good communication skills. “You’ll need to be able to come to conclusions under pressure quickly and accurately. I can find myself working on credit risk. it is important to be flexible. How does your work in local risk control differ? In contrast to the London office. as such. head of risk management and quantitative research at Permal Investment Management.” she says. “You need to have good applied maths skills and an understanding of differential equations as well as financial modelling skills. we work on several smaller projects.Profile Jo Farries Graduate trainee Dresdner Kleinwort Pay Pay for risk professionals rises in relation to their proximity to the trading floor and their involvement with complex derivative products. model it and then improve the decision-making around it. The particular skill set necessary will depend very much on the area of risk you are working in. By comparison. The main function of the credit risk control team is to monitor and report our credit risk exposures. risk management specialist at recruitment firm Sheffield Howarth. Although you do need strong numeric skills. head of specialist resourcing at Deutsche Bank. Is there much international exposure in risk? Risk is a global function and. including Frankfurt. She graduated with a BSc in natural sciences (mathematics and physics) from the University of Durham. We look for people who can identify the problem from the confusion which surrounds the business decision. a junior risk professional working on a quantitative finance (read complex derivatives) team can command over 60% more than his or her counterpart in basic credit risk. New York and Tokyo.1 or above) followed by a BSc and MSc in a numerate subject. a consultant on the risk management desk at recruiter Joslin Rowe. says market risk specialists often have a first-class degree in physics or an MA in mathematics.” adds Craig McNicol. Aside from our daily tasks. and try to gain some relevant work experience. all degree subjects are accepted. Above-average common sense and strong communication skills are other key attributes. he says: “Credit risk people need to be inquisitive and able to extract information from clients about their strategy and financial position.” “If you are looking to start a career within a more technical area. operational risk and liquidity risk.

Money laundering teams check the identity of the parties involved and ensure the money came from a known and reasonable source. such as dormant trading accounts that suddenly resurrect themselves. you could take a further degree: for example. Alternatively. eFinancialCareers. In March 2007. Monitoring specialists check that employees are behaving themselves. This can be difficult” David Kemp. the stick is getting bigger. you’ll need sound judgement and a respect for rules and regulations. but not all. As the head of compliance at one European bank points out: “Our staff send and receive about three billion messages every day. while the City benefited from the perception that its regulatory regime is less onerous. you’ll spend your time on the look out for suspicious transactions. legislation in 2002 known as Sarbanes-Oxley tightened many compliance rules. But banks such as Barclays Capital. Traditionally the realm of junior staff. Compliance-specific graduate training schemes used to be rare. working as a compliance advisor is the most exciting and usually pays the most. When the circumstances seem suspicious. Many bankers believe that New York’s financial services industry suffered as a result. as were entry-level jobs. In the US. Anti-money laundering is also a hot topic. They tell traders whether or not a particular trade can go ahead and suggest alternatives that will be satisfactory to the client. Training teams preach the compliance message to the bank’s employees. Compliance professionals interpret the rules set by state regulators and ensure banks operate within them. Trends Compliance departments already carry a big stick and.com Careers in Financial Markets 2007-08 . These include money laundering specialists. The compliance function is usually split into teams. The job of compliance training specialists seems tame by comparison. An increasing number are product specialists who are situated on or near the trading floor. monitoring specialists and advisory and product specialists. This is a complex piece of legislation designed to create a single European financial market. Roles and career paths Jobs in compliance vary. are ex-traders. Some. If you don’t get on to a bank’s compliance training course. the regulations: in 2007 the word is ‘MiFID’. However. One is to train with the FSA.” If monitoring is the least exciting category of compliance. the Financial Services Authority (FSA) said there was evidence of insider trading in nearly a quarter of company takeovers. They create and present courses explaining what the rules and regulations are and why bankers need to respect them. When it comes to scandals. “We need people with the confidence to stand up to people in the business and remind them of their duties. As well as interpreting the complicated and ever-changing external rules that these regulators lay down. but they are monitored by intelligent computer programmes that can spot unusual activities. It then communicates those to employees and makes sure they abide by them.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Compliance Banking’s equivalent of the health and safety brigade Compliance is becoming more important as regulations increase Some banks offer compliancefocused graduate training Compliance pros who sit near the trading floor earn the most How Mon hot ey Ku Opp dos ortu nitie s If you want to work in compliance. one of the big issues of the day is insider trading. there are a few other options. If you opt for money laundering. Compliance advisors interpret and apply the intentions of the regulator. due for implementation in November 2007. Another is to work for the compliance consulting arm of a Big Four accountancy firm. ABN AMRO 62 First. a business software group. training specialists. depending on the area in which you work. London Metropolitan University offers an MSc in financial regulation and compliance management. which hires around 40 graduates a year for its two-year training programme. Striking the right balance between regulation and laissez-faire is tricky. the compliance function creates a system of internal rules to apply the regulations. suggested only four out of 10 firms would be ready in time. thanks to new regulations and a series of scandals. Goldman Sachs and UBS now offer compliance training and more are likely to follow. or the Markets in Financial Instruments Directive. with banks and asset managers hiring specialists to ensure clients aren’t up to anything untoward. money laundering officers report their doubts to the National Criminal Intelligence Service (NCIS). an April 2007 poll by Handysoft. They could never be monitored by humans. this role has seen much of its remit taken over by computers.

uk/students Profile Stephen Morse Global head of compliance Barclays Capital Pay The best-paid compliance professionals are those who sit near the trading floors and advise on the issues associated with trading particular financial products. you will need a 2.1 or above. Firms such as Barclays Capital have begun training compliance professionals in-house. “The most important thing when you are at interview is how to really show your true potential.5 0-1 Salary (£k) 40-70 45-95 26-42 20-32 Source: Robert Walters Stephen joined Barclays Capital as global head of compliance three years ago. He previously worked for Credit Suisse in New York in a global compliance role and at Bankers Trust and JPMorgan. Plus. You can enhance your CV by studying with organisations such as the Securities and Investment Institute. Stephen’s tips: Familiarise yourself with business ethics – compliance is increasingly a question of reputational as opposed to regulatory risk.5 1-2. Read up on the legal and regulatory t environment – there are plenty of specialis publications such as Compliance Reporter. We often operate in a grey area in which things are rarely simply right or wrong. plus a bonus of somewhere around £14k. at recruiter IMS Selection.com. Surely rules are rules? Regulations aren’t always clear. aspects of the investment banking business 63 .” At the FSA. eFinancialCareers. Compliance increasingly requires significant judgement. and what’s right one day might not be right the next. Compliance is for people who like following rules. A compliance officer with one to two years’ experience can now earn between £35k and £45k in salary working in a hedge fund. products and strategy. There’s often potential for significant deliberation about the best course of action. and strong communication and decision-making skills. Jessica Adams on its recruitment team suggests that. You also need to be able to think on your feet – the regulatory environment is continuously changing. You’ll need to be intelligent. Salaries in this area rose 25% between 2006 and 2007. a strong understanding of market regulations. Compliance Monitor and Complinet. It’s up to the compliance professional to decide. when an investigation is being conducted. And even if we do conform with regulations. Originally qualifiying with an LLB (Hons) from Leicester University. 45-95 Skills In the past 12 months competition has increased dramatically. we typically have to comply with rules in different countries and sectors at once. compliance.co. We see an increasing number of sales people and traders moving into compliance. when the profession was just getting established and banks used lawyers and accountants to get compliance advice. Another certificate is the Investment Management Certificate. What makes a good compliance professional? A strong understanding of a firm’s business. compliance staff might sit in judgement of people on the next desk. For example. What’s the biggest challenge for the compliance function? Consistently striking the right balance between being commercially oriented and risk and control focused. where you can get a diploma in investment compliance.efinancialcareers. Hedge funds are also notoriously generous to their compliance staff. Investment banking compliance salaries 2007 Role Senior compliance manager Junior compliance manager Senior compliance assistant Compliance assistant Compliance administrator Experience (yrs) 5-8 3-6 2-3. as there’s no ready supply of people with the right experience. while graduates from any degree discipline are welcome to apply. Stephen moved into compliance in 1987. managing consultant. methodical and not afraid to speak your mind.com Careers in Financial Markets 2007-08 Develop a broad knowledge of the business areas – compliance functions cover all .Find out more about careers in finance www. How have things changed since your career began? These days compliance is more centred on reputation management and the rights and wrongs of particular transactions. You will also need to demonstrate a willingness to undertake the mundane tasks as you gain your experience. Having confidence without arrogance and a determination to succeed will be vital. there’s always reputational risk to consider – we can follow the rules.” explains Zoë Breadman. David Kemp at ABN AMRO points out: “We need people with the confidence to stand up to people in the business and remind them of their duties. This means you’ll have to work harder to stand out from the pack. This can be difficult. Right? Wrong. but still do wrong in the eyes of clients and the public. with compliance pay in the hedge fund sector rising 30-40% in the past two years alone.

bonds ranked BAA. rating agencies are being kept increasingly busy. Thomson Financial (which are now merging to become Thomson-Reuters) and Bloomberg provide real-time information on the changing prices of financial products. where they failed to predict problems in the sub-prime mortgage market. such as Reuters. Many of these were re-packaged and sold in the form of structured ‘mortgage-backed bonds’. for example. meaning investors are likely to get their money back. Fitch takes around eight graduates a year in the UK into a twoyear rotational programme. Anything ranked below this is known as ‘speculative grade’. But while business may be growing. making it easier to make comparisons between one organisation and another. If a company is rated C. the new company will be called Thomson-Reuters.com Careers in Financial Markets 2007-08 Roles and career paths If you work for a rating agency. where trainees rotate between corporate finance. Standard & Poor’s and Moody’s vie for first and second places and account for around 80% of the total of market. including news analysis and information on company accounts. So a company rated AAA is adjudged almost 100% likely to pay on time. helping an analyst. S&P recruits on an ad hoc basis.Banking & Financial Markets Accounting in the City IT in Finance Employers Data providers and rating agencies Heroes or villains. This is particularly the case in the US. for instance. but there are no signs of consolidation. Ratings are issued in a coded form. Critics claim that because rating agencies receive most of their money eFinancialCareers. made £456m from analysing and rating the structured finance sector in 2006 – more than 40% of its income. providing banks’ traders with data faster. We are particularly looking for people with Arabic and Russian” Maren Josefs. such as Egan-Jones Ratings. Data providers operate in a different and very competitive universe. you’re likely to start as a research assistant. a new behemoth will challenge for the top position – the combined companies are expected to have a 34% share. In May 2007 the world of financial information providers underwent a seismic shift when Thomson Financial put in a bid of around £9bn for Reuters. structured finance and financial institutions. Moody’s offers internships to students and recruits graduates on an ad hoc basis. Different rating agencies use slightly varying codes for their ratings. “Another language will make you an attractive proposition. Fitch comes in third. If Thomson’s bid succeeds. Roles at information providers are more varied and cover everything from data analysis to technology. but derivative products based on those bonds. which accounts for around 33% of the market. They also offer a wealth of other data. the rating agency sector also hosts three key players. rating agencies are under fire. Behind them are a number of other operators. For their part. Trends As the number of financial products to be rated expands to include not just company bonds. Reuters. But if ‘Thomson-Reuters’ becomes a reality. which were given favourable ratings. however. Similar to the financial information market. depending on what they report At a glance Rating agencies assess how likely companies are to pay their debts Data providers offer live data to traders and salespeople There are only a few key players in each sector How Mon hot ey Ku Opp dos ortu nitie s Rating agencies assign credit ratings to organisations and governments after calculating the likelihood of them defaulting on their traded debt products (companies issuing debt products pay the agencies for the privilege). which offer a more stable source of financing than money from banks and individuals. runs a European graduate training scheme that runs for around 64 > . More and more hedge funds have begun issuing bonds. Not all rating agencies have graduate recruitment schemes. This hasn’t stopped rating agencies piling into another growing area – the analysis of the operational risk of hedge funds. BBB or above are considered ‘investment grade’. the risk of not being paid on time is high. more cheaply and on ever-fancier screens. only subsequently to default or see their rating downgraded. On the whole. where repayment is less certain. Analysts typically specialise in particular product types. they are not always as impartial as they might be. the agencies point to their codes of transparency that they claim address these criticisms. data providers. Standard & Poor’s in charges paid by bond issuers. journalism and business development. which are miniscule by comparison. While rating agencies help banks and their clients by calculating the likelihood of a default. Key players The financial information world has long been dominated by Bloomberg. Moody’s.

careers. Our employees have a passion for excellence. Software Development. Innovate from the front. We have opportunities in Financial Sales. We foster that passion and encourage growth and development in every way possible.MOVE THE MARKETS. Bloomberg is the ideal place for you to develop your knowledge and enthusiasm for the financial markets. Data Analysis. Bloomberg provides information to business leaders around the world. 25567331 0807 .P. Join the company at the forefront of finance and technology. no matter what their experience is. ©2007 Bloomberg L. All rights reserved.bloomberg. News and many more areas.com Bloomberg is a proud Equal Opportunity Employer.

. IF YOU ARE A RECENT GRADUATE with a strong analytical background and solid communication skills. To learn more about careers at Fitch Ratings. our teams award-winning. as well as integrity and transparency. Our ratings and products are market-leading. The work is dynamic and challenging. Innovation and initiative are valued and rewarded. We are commited to the concepts of objectivity and independence of opinion. we appreciate original thinking. visit fitchgraduatesuk.com Application deadline is 31 January 2008. Fitch is an international rating agency built on local expertise. The culture inspires professional growth and an entrepreneurial spirit. Fitch Ratings can provide you with unique training opportunities and a chance to gain experience in the world’s credit markets.new ideas welcomed here informazione pubblicitaria At Fitch Ratings.

Skills Graduates with good quantitative skills will always be in demand. When I’ve analysed the transaction and reached a decision about which rating to suggest. Pay Ratings agencies have traditionally paid a lot less than investment banks. a consultant at recruitment firm Anderson’s. you need to be a good communicator with solid analytical skills. It’s difficult to deal with but we’re trained to handle these situations. analytical and to enjoy interacting with people at all levels. two years.” she says. says bonuses in the sector were previously capped at 35% of salary. salaries have risen 10-15%.” Lynne Smith. also stresses communication skills: “As well as a solid academic background and sound analytical ability. as they are growing markets for us. with the potential to try varying roles and work in different offices globally. ITjobswatch says the average salary for an IT specialist with Bloomberg knowledge is currently somewhere between £52k and £56k. so you can never do too much research.com Careers in Financial Markets 2007-08 67 . At the same time. says Maren Josefs. be opinionated and be able to speak with authority to senior executives. he says. it can also have big implications for their business and they can become confrontational. According to Wheelan. which help insurers transfer the insurance risk of natural catastrophes such as earthquakes and hurricanes to the capital markets. they have been trying to make amends. and talk through the structure of their proposed credit products. She is a graduate in European business administration from the European Business School in London and has an MSc in finance from London Business School. particularly as data providers and rating agencies are fishing from the same relatively tight pool of talent. global head of learning and development at the company. associate director at Standard & Poor’s (see her profile on the right). You also need to be independent and able to get things done autonomously. It was interesting but mostly technical. When a client is downgraded. but also specifies communication skills as mandatory. we want graduates who are strong communicators capable of listening to others. and I didn’t have as much access to clients. At Standard & Poor’s I have regular access to senior company management. Bruce Wheelan. particularly when it comes to bonuses. work unpredictable hours and be willing to accept international postings. vice-president of HR for Europe. with senior staff even getting 70%. Beyond that. I’m dealing at a much more strategic level. eFinancialCareers. What’s the most challenging aspect of your role? Issuing a rating isn’t just a question of knowing about the company in question – you also need to know about the market. Anne Bowerman. as well as formulating and articulating their own opinions.” Reuters looks for different attributes across its business areas. Try to build practical experience in the area in which you’d like to work first – my previous experience at Aon enabled me to understand the market I’d be rating. the Middle East and Africa at Moody’s. What does your current job involve? A lot of preparation goes into issuing a rating – I meet with senior executives at client companies.Profile Maren Josefs Associate director Standard & Poor’s Continued from pg. Why the switch to a career in credit ratings? At Aon. Maren’s tips: Get a good financial foundation before applying – my MSc in finance was an excellent preparation for dealing with the complex financial products that underpin ratings. We are particularly looking for people with Arabic and Russian. for example. “Another language will also make you an attractive proposition. and have access to the ‘big picture’ side of things. What kind of person makes a good ratings analyst? You need to be opinionated. but this has recently risen to 50%. But as more and more of their staff leave for the structured finance desks of banks. I’ll write a paper that is reviewed by our voting committee before the rating is allocated. Language skills are highly valued – an analyst working in the London office can cover companies headquartered in Europe and the Middle East. says graduates entering its business programme need to be fluent in at least three European languages: “Applicants to Reuters’ journalism division need to be able to express complex issues simply. I also spend a lot of time talking to investors about ratings we’ve already issued and the rationale behind them. a credit ratings analyst can now expect to earn a base salary of £45k to £65k plus a bonus of up to 40%. I was structuring and pricing catastrophe bonds. 64 Maren joined the insurance practice division of Standard & Poor’s three years ago from the capital markets team at risk management consultancy Aon.

Think of the London insurance market and the first name that springs to mind is likely to be Lloyd’s.000 hits in the first six months.insurancecareers.886 1. homes and holidays – insurance companies cover commercial risks on everything from industrial buildings to power stations and ocean liners. we live in risky times. In 2005. a spokeswoman for the ABI. global insurance premiums were worth more than $3. (back in 2005).725 1. Insurance is big business.349 1. 68 .497 1.7 trillion). a reinsurer or a broker.cii. But Lloyd’s isn’t an insurance company – it’s a market made up of member companies. But the insurance industry is about far more than just car insurance or hanging on at call centres. Allianz Key players The insurance industry can be split into three sectors: • Insurers: the companies that provide the insurance packages. “Insurance just hasn’t been seen as sexy. “We are looking for people that are passionate about insurance and want to learn. a career in the City will put you at the more exciting end of the insurance spectrum. according to the most recent figures available from insurer Swiss Re.150 2. It seems to be working – the site had 30. of which nearly 40% related to motor vehicles. The last time the Association of British Insurers (ABI) counted Roles and career paths Apart from the usual operations functions such as human resources. What this means is that you could be designing anything from a risk management and insurance programme for a big international company such as British Airways right down to working with small start-ups and entrepreneurs.748 2. Since then.7bn. specialising in property and catastrophe insurance. with the UK worth £166. the CII commissioned Cass Business School to conduct a study into students’ attitudes to insurance careers: 90% said they wouldn’t go into the industry. But while the insurance industry has good reason to be concerned about potential claims arising from another September 11th or Hurricane Katrina.4 trillion (£1.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Insurance Offers stable careers and less competition for jobs The industry is divided into insurers.uk. Whether you work for an insurer. insurance offers a number of specialist careers. While events such as 2007’s severe flooding in England may make the headlines. finance and information technology. insurers are equally likely to be kept awake by trends in motor vehicle vandalism. The London insurance market centres on international projects and big commercial clients and provides cover to a diverse range of risks – from North Sea oil platforms to celebrities insuring their body parts.com Careers in Financial Markets 2007-08 Trends Thanks to global warming and international terrorism. the UK’s general insurance industry (not counting the huge life insurance and pensions sector) faced a total £20. we very much look for future potential” Debbie Crew.305 Source: Insurance Pocket Book 2007 eFinancialCareers. “It’s seen as men in grey suits doing paperwork.328 1. UK insurers are also vexed by problems attracting staff. reinsurers and brokers 40% of general insurance relates to motor vehicle claims Insurers are doing their best to increase graduate applications How Mon hot ey Ku Opp dos ortu nitie s Think of insurance and the first thing that may spring to mind is waiting on hold for a quote for insuring your car or your holiday. given that – alongside personal insurance for cars. most of the UK’s biggest insurers operate in the huge area of life insurance and pensions – Aviva International is the top provider of life and pensions products in Europe. This is hardly surprising. In 2005. according to the UK Chartered Insurance Institute (CII).” You can see insurers’ new image at www. most of its business is a lot lower key.6bn in claims. Top UK insurance companies 2005 (£m) Ranking 1 2 3 4 5 6 7 8 9 10 Insurance company Aviva International Royal and Sun Alliance XL Re Axa Insurance Zurich UK (Br) Norwich Union BUPA Insurance Transatlantic Reinsurance Direct Line Allianz Cornhill Premium income 3.373 2.co.858 3. By comparison. • Brokers: companies that sell packages on behalf of insurers. • Reinsurers: companies that insure the insurers.” says Alex Thompson. insurance has gone all-out to make itself appear alluring to university leavers.

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Profile
Thomas Needham Account developer Allianz

Thomas is a key account developer at Allianz. He studied business economics at Liverpool University before joining the company’s corporate management scheme in September 2003. What does an account developer do? I help manage relationships with our affinity partners. These are brand names such as Dixons, the Telegraph and Royal British Legions, with whom we work to provide insurance products under their brands. My role is about attracting new partners, retaining existing partners and ensuring that their agreement with us is profitable. I’ve had four placements with the company. As a graduate trainee I’ve spent time in commercial lines underwriting (working out the risks and premiums attached to insuring commercial property and fleets), time in the change department of the claims division and in the engineering insurance division. What attracted you to a career in insurance? I was interested in a career in financial services, and the insurance sector stood out. I was impressed by its scale and variety. It also seemed to be an area that had been overlooked by many university students. The concept of taking risks for a living is an exciting prospect, and that’s what insurers do every day – taking educated risks about what to insure and at what price. What do you think makes a successful insurance graduate? There’s been a greater ‘specificity’ within the insurance sector, meaning that insurers, brokers and even re-insurers in many cases are looking for more specific skill sets. Insurers are increasingly looking for people with financial skills and another skill, such as e-marketing or statistics. Therefore don’t be put off by a job title, look at the job description and what it involves and match it against your skills (and, importantly, against whether you’d enjoy doing it). If you’ve done a joint honours degree, great; if not, look at the relevant modules you’ve done and sell these to any potential employer.

These specialist careers include underwriting, broking, actuarial roles and risk assessment. Underwriting is the job most typically associated with the insurance industry. These are the people who look at risks and price them for insurance purposes. So, if you’re a driver with a history of crashes it will be the job of an underwriter to charge you more for your car insurance. Like the broking companies they work for, it’s the job of individual insurance brokers to sell insurance to clients. Actuaries analyse the financial consequences of risks the insurance company is taking and ask questions such as whether the company has enough reserves to cover future payouts. Risk managers work with the insurers’ clients to help make payouts less likely. In the past it was common to specialise in one of the above areas, but industry insiders says it’s becoming easier to move between roles. In particular, companies such as Allianz and Axa run trainee programmes in which you will be given exposure to various roles. Allianz runs seven different graduate training schemes, taking on around 30 graduates a year, with about 10 going into the management programme, says graduate development manager Debbie Crew. Axa, meanwhile, runs three graduate programmes: an actuarial training programme that takes on between six and eight graduates, a leadership programme with places for about 23 graduates and an IT programme for 20 graduates.

Thomas’ tips
The quality of the person matters more than the degree subject. People in this industry have degrees in everything from history and geography to maths and economics. Do your research about which company you want to join. Many companies have excellent graduate schemes, although the company brand name may not be as high as its profile. There is a variety of roles in the insurance industry. Find a scheme that gives you the chance to experience and consider them all.
eFinancialCareers.com Careers in Financial Markets 2007-08

Skills
“We are looking for people that are passionate about insurance and want to learn; we very much look for future potential,” says Debbie Crew of Allianz. Among the practical skills required are numeracy, ‘emotional agility’, drive and ambition. “To be successful in this industry, you must have the capability to handle lots of information, analyse the data and make accurate decisions from it. You most also be prepared to focus on achieving professional qualifications, normally outside your working hours,” Crew adds. “We are looking for graduates with a 2.2 degree (2.1 for actuarial programme) or above who have excellent interpersonal skills, leadership potential and high levels of energy and drive,” says Jasbir Sennitt, Axa UK graduate resourcing manager.

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Banking & Financial Markets

Accounting in the City

IT in Finance

Employers

At a glance

Accounting City careers
Talented, ambitious finance professionals will go far

No sign of let-up in the pace of growth Accountants are now expected to show commercial acumen Increasingly tight regulatory framework governs their work

How Mon hot ey Ku Opp dos

ortu nitie s

If you want to be an accountant in an investment bank, there are two main entry routes. You can join straight from university or you can gain an accountancy qualification elsewhere and then move to an investment bank. Accounting roles in the City are not for the faint-hearted. The work is well-paid but fast-paced. Expect to work long hours in a highly-charged environment. There are several varieties of financial services firm to choose from. The most important are fund management firms, which invest money for pension funds, insurance companies and individual investors; hedge funds, which invest money for private investors using complicated trading strategies; and investment banks, which are financial services power houses

for today are finance professionals who are highly proficient technically – but who can demonstrate a broader range of wider commercial skills.”

Key players
If you want to work for a bank, there’s no shortage of employers around. The world’s largest financial institution, according to US magazine Fortune, is US-based Citi, followed by Fortis, the Benelux-based insurance group, France’s Crédit Agricole and London-based HSBC. These giant institutions all have investment banking arms. But they also have retail banking networks, through which they take deposits from consumers. ‘Pure’ investment banks, such as Goldman Sachs, Morgan Stanley and Merrill Lynch, are small by comparison.
World’s leading banks by revenues 2006 Rank 1 2 3 4 5 (2005 rank) (1) (2) (7) (3) (4) Bank Citi Fortis Crédit Agricole HSBC Holdings BNP Paribas Revenues (£bn) 66.1 56.7 55.9 47.1 43.2
Source: Fortune, Global 500

“Candidates need to be hard-working but smart with it and have an ability to work with people at all levels”
Andrew Garratt, Fidelity International

that do everything from trading financial products to helping companies execute M&A deals. The best-paid accounting jobs are in investment banks, but retail banks and insurance companies also need accounting talent.

Trends
“There’s never been a better time to consider a career within banking or financial services while studying towards a professional accountancy qualification” says Sarah Williams, associate director at recruiters FSS. “The pace at which these already buoyant markets are developing means that demand is exceptionally strong – and is likely to continue to be so.” Demand is so high that many banks – while not compromising on the calibre of person they take on – are more prepared to be flexible when considering candidates’ backgrounds: “Employers now realise the importance of employing candidates from practices other than the Big Four,” says Tanya Sharma, an investment banking consultant with Joslin Rowe. “They’re not as concerned if the people they take on have no financial services audit experience.” Accountants have evolved from number-crunchers to business advisers, says Steve Carter, managing director of Nigel Lynn. “What the financial institutions look

Roles and career paths
At fund managers and hedge funds, accountancy roles are typically for ‘fund’ accountants who provide ongoing reports on the value of the fund’s assets and liabilities, check that all funds received are properly accounted for and help prepare for end-of-year reports and submissions to the Inland Revenue. But in investment banks, accountants are more diverse. In the front office, accountants are hired into corporate finance, raising money for companies involved in M&A deals, or into equity research, advising on the future of companies’ share prices. Accountants working in the front office are typically ACA-qualified. For more information on these roles, see page 72. In the back and middle offices, accountants occupy a number of roles: Product controllers work with traders to monitor and restrict the risks the bank is exposed to. Like traders, they specialise in a particular class of financial product. Management accountants provide information on the state of the bank itself. This enables managers

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Profile
Heather Larkins Financial analyst M&G Investments

to formulate strategy based on knowledge of risks and budgetary constraints. Financial reporters produce monthly and year-end accounts and meet the reporting needs of the Financial Services Authority (FSA). Technical accounting specialists help banks ensure they meet the needs of regulators, such as the FSA, and adhere to requirements such as International Financial Reporting Standards (IFRS).

A qualified ACCA, Heather Larkins works in the finance team which accounts for the performance of the fund management business units within M&G. She prepares budgets and cost forecasts and carries out variance analyses to understand why costs may be higher or lower than expected – and ultimately to help management make key business decisions. Describe the route to your current job I joined M&G after graduating (in mathematics) in a fund accounting role, preparing financial statements for the various unit trusts, OEICs (open-ended investment companies) and investment trusts managed by the company. I chose to study ACCA as I felt it was a flexible qualification that would allow me to keep my options open. After four years I moved to my current position – I wanted a new challenge and was keen to take on more of a management accounting role – something more forward-looking. What made you decide to go into financial services? Although I was interested in finance, I knew I didn’t want to work in an accountancy practice – the investment sector seemed more exciting. M&G had a good reputation in fund management and as an employer – they were willing to pay for me to gain a professional qualification. How did you get your job? I applied via a recruitment agency. They told me their client was looking for someone with a good academic background but who also had the right personality – team fit is important, as everyone has to be willing to pitch in when the pressure’s on. I had to be able to demonstrate good communication skills, as the job involves liaising with heads of departments. What skills are needed to do well? Numeracy is absolutely critical. You’re required not just to produce reports but also to question and interpret them for others – including people who are not necessarily schooled in finance. Attention to detail is paramount, as you have to be able to identify errors in income forecasts or spot where invoices have been calculated incorrectly. And the ability to work to tight deadlines is critical.

Pay
Money is what induces many accountants to switch to banking. Basic salaries are up to 40% higher than in private practice and there can be substantial bonuses on top. The best-paid jobs are for product controllers working with derivatives. According to Joslin Rowe, product controllers (who are currently most in demand) with between two and five years’ post-qualification experience (pqe) can earn a basic of up to £68k plus a 50% bonus.
Accountancy salaries in financial services 2007 Job title Financial controller Product control director Product control mgr (5 yrs+ pqe) Project manager Regulatory reporting accountant (just qualified) Basic pay (£k) 70-100 90-110 55-68 70-95 45-50 Bonus (%) 20-100 20-100 0-50 0-100 10-20
Source: Joslin Rowe

Skills
All-round skills are called for, says Andrew Garratt of Fidelity International: “Attention to detail, an understanding of the big picture, calmness under pressure are required,” he says. “They need to be hard-working but smart with it – and have an ability to work with people at all levels and gain respect from the management team.” Recruits must also be able to meet the demands of a complex environment. Regulatory demands have changed accountancy, says Steve Carter of Nigel Lynn: “With Sarbanes-Oxley and Basel II impacting on how companies organise their financial reporting, as well as how they assess risk, individuals must have with a clear understanding of these developments and how they impact on the business’s infrastructure.”

Heather’s tips:
Remember the end user – the job isn’t just about churning out numbers: people rely on the information you produce to help them make important spending decisions. Spreadsheets will figure in a large proportion of your workload – if you don’t like Excel, this job probably isn’t for you.
eFinancialCareers.com Careers in Financial Markets 2007-08

Do your research before interviews, so you have some understanding of how the company you’re applying to makes money.

71

you need to be able to deal with the cut and thrust of the environment and stand on your own two feet. says that visibility in the front office can provide the perfect opportunity for accountants to shine – and be plucked from a mainstream accounting role into a more glamorous position: “There’s always the chance that if they impress the people they’re speaking to. says strong analytical skills are required: “You have to enjoy research projects. it may also imply that the candidate considers the straight accounting role inferior – a stopgap.” Corporate finance/M&A Corporate financiers and M&A bankers are two sides of the same coin. as well as writing up the results of your work. where you will be helping companies manage their share price? Or perhaps trading? Keeley Quinlan. As such. “You need to be fairly robust. they’ll be given the opportunity to switch across. managing director of Greenwich Partners. to move into corporate finance and be able to articulate this.” These opportunities could involve working in roles with greater interaction with the banks’ clients – and the potential to earn vast sums of money. which involves helping companies to raise money by selling their shares on the financial markets.” he says. often to finance acquisitions.” However. Corporate financiers working for investment banks advise client companies (corporates) on how to raise money. Investment banks employ ACA-qualified staff in plenty of nonaccountancy guises – the most popular of which are situated in the thick of it – in the front office. Other banking options If you don’t fancy making your career in corporate finance or equity research. not just a fleeting desire. finance recruiter at UBS. which specialises in moving newly qualified accountants into front-office jobs in banks. Qualified accountants can make good equity researchers if they can complement their technical ability with the right personality.” Sophie Spencer. People who’ve worked closely with the front-office team in a mainstream accounting role are more likely to have their potential identified and be offered opportunities.com Careers in Financial Markets 2007-08 72 . the working environment can be highly pressurised and a cool head is needed at all times.” says James Lloyd-Townshend of recruitment firm Hays Accountancy & Finance. M&A bankers advise the banks’ clients on which companies they should acquire and how to fund their acquisitions. “But you also need to have the confidence and presence to back up your findings and recommendations in a client-facing capacity.” “You need to be able to deal with the cut and thrust of the environment and stand on your own two feet” Hugh Shields. “Not only does that represent a potential wasted investment of time and resources.” says Hugh Shields of Barclays Capital.” he cautions. know what the big deals are and can talk knowledgably about them – demonstrating a long-term interest.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Front-office careers Dynamic types enjoy a host of possibilities Personality and team fit are critical for progression Be prepared for pressure and stress Private equity is a destination of choice If you’re planning to gain an ACA qualification after leaving university but can’t face a lifetime of jokes about boring accountants. James Heath. then think banking. banking consultant at recruiters Witan Jardine. Or how about going into corporate broking. “You need gravitas and commercial acumen. one City recruiter suggests it may be wise for newly-qualified accountants with client-facing aspirations to play their cards close to their chest: “Line managers won’t want to take on and train up someone who clearly wants to shoot off to the front office as soon as possible. corporate financiers and M&A bankers are often one and the same person. “Like most front-office positions. you could opt for equity capital markets. says: “Ideally. They’ll be up against people who read the financial press. But most importantly. or a stepping stone to something more rewarding.” “Moving to the front office is not for the timid. they must have a genuine desire eFinancialCareers. accountants who move into corporate finance should already have some kind of exposure to work such as due diligence or company valuations in their current firm – or even been part of a team which has helped a client to list on the AIM. Barclays Capital Equity research Equity researchers scrutinise companies’ accounts and contemplate their strategic direction before pronouncing whether their shares are likely to rise or fall.

But it’s the ability to build strong networks internally and externally and get on with different management teams – generating immediate empathy and rapport – that differentiates the best candidates. “Front-office positions are sometimes seen as the holy grail by accountants in banking. Giles’ tips: eFinancialCareers. it’s also worth asking yourself whether you’re prepared to commit to working long hours. believes personality is critical to succeeding in private equity: “Many qualified accountants tick certain key boxes – having the technical know-how to understand the industries in which they invest and analyse each opportunity. You own the business and have to help steer its management. as well as looking at long-term strategic development. as well as the transaction skills to complete deals. “But these days. What do you like about the work? Your relationship with management teams is ongoing. You have to give them a degree of comfort that you can help them deliver their business plan and grow their organisation significantly. not transitory. with collegiate management styles – big decisions get made and actioned quickly. or insolvency or corporate restructuring. As well as meeting company management teams to size up a potential investment. especially as client contact is often with corporate treasurers. named in 2007 as the BVCA/Real Deals’ private equity firm of the year. there are many support roles that carry kudos in banking. You have to be able to identify what will translate into value creation. With hundreds of millions. Don’t assume you know it all – you’ll rely on existing teams for their experience and market knowledge. I tried to get in directly from audit but employers wanted relevant experience. Private equity funds are the kings of the capitalist system. many of whom are excellent – you can’t think you know it all. improving them and selling them on.” While many of the traders and others in front-office positions have come via the sales route.com Careers in Financial Markets 2007-08 The best route to private equity is via transaction services or due diligence. What do you enjoy most? Watching management teams mature and cope with some of the difficult challenges and dynamics that arise is hugely rewarding. I could be discussing pricing strategies.” Finally. working on legal documents or helping with tax structuring. The right people can acquire the skills. director at Dunedin. who may be accountants themselves. 73 .” Guy Townsend. He specialises in the financial services and leisure sectors. from acquisition through development over three or four years – always adding value – to profitable realisation of your investment.” says Jenny Steedman of Poolia. you also have to convince that team that you’d be a good partner for them. that’s just the beginning. most private equity firms are relatively small. my interest lies in what drives business forward. Private equity Another possibility is a job in private equity. which is fantastic. finding more money to buy other businesses. Giles Derry initiates investment opportunities at Dunedin. Also. It may not pay as well or be as exciting. of pounds to invest. your accountancy qualifications may have a positive impact on your eligibility for admission: “There are several accountants in the City’s relationship manager community. and often billions. they specialise in buying out large established companies. What does the work involve? There’s no such thing as a typical day. Giles Derry. Not for everyone But don’t imagine that the front office is for everyone. says: “A lot of the role is sales-focused. but a life in financial control or auditing will at least mean your weekends are your own.” says James Pritchard of Lloyds TSB. as accountants enjoy a high profile within the business and play key roles in helping to enhance value for shareholders. I moved into my firm’s corporate finance arm. He has a degree in natural sciences from Durham University. and from there into private equity.Profile Giles Derry Director Dunedin An ACA who trained with Arthur Andersen’s financial markets practice. What skills are essential in order to excel? You’re dealing with people from all walks of life and business backgrounds. hiring a sales director. joint managing director at Walker Hamill.” How did you get into private equity? I found auditing too retrospective. Personality is key – have the wrong approach and you won’t get on. “Their qualifications are well-received. I get bored if I’m doing the same thing for too long – I love the variety. Corporate financiers collect their fee and their job is done – but in private equity. lead advisory or corporate finance. which means understanding and maximising cashflow.

structure and fulfil IT projects. IT salaries in investment banking are solid. fund management and operations. depending on their background and technical knowledge. or deal with core infrastructure requirements. which Roles and career paths Jobs in the IT departments of investment banks tend to fall into one of four categories: development. business analysts look at the way technology is used in the bank and analyse opportunities for making it work better. Many current systems have grown organically and now need fundamental change. While developers write the programmes banks use.” says Satnam Brar. Technical support staff.” says Louise Clarke. Java and Microsoft’s . It’s a role that carries a lot of responsibility – a computer problem on a trading floor lasting a few minutes could cost the bank millions of dollars. Once big changes have got underway. computers play an ever more important role in the trading process itself via algorithmic trading models. The 74 . If you become a developer. financial institutions’ global IT spending stood at a huge $318bn in 2006. head of IT recruitment at consultants Robert Walters. At the same time. Finding that duality of expertise is not easy. others are based in private banking. with the possibility of earning bonuses of up to 20%. you could be responsible for writing the programmes that help the bank do everything from pricing and booking trades to calculating risk. “While there seems to be an almost endless supply of IT ‘foot-soldiers’ in the City. however. there’s a definite shortage of people who really make things happen. It’s not all good news for technologists in investment banks. “Graduates start on as much as £35k. While many IT staff work on the trading floor. That has to be undertaken by people who don’t just understand the system. They help identify the potential for making changes to a bank’s technology systems. especially for the trading floor. Along with increased spending on core systems.” Trends Banks are big spenders when it comes to IT systems. JPMorgan has been adding to the number of programmers it employs in Glasgow. while Citi has been transferring programmers to Belfast. IT staff in investment banks also usually specialise in the IT requirements of a particular business area. up 8% on 2005. “Bonus potential depends on the area they go into and the length of their graduate programmes. a research company. Barclays Capital eFinancialCareers. meanwhile. managing director of specialist ERP recruiter Maximus. However. which automatically place trades based on parameters set by mathematicians. main programming languages used by banks are usually C++. but the temper tantrums of irate traders. They are known for having some of the world’s cutting-edge computer systems. Both banks – and most other banks – are also offshoring IT roles to India. the other big trend of recent years has been to shift many programming and non-core IT roles to lowercost locations. project management and technical support. require good technical skills and the thickest of skins to handle not only the technology problems. “The major banks and their integrators are all focusing on individuals who’re not just good technicians. It’s up to the technical support staff to identify and resolve any glitches as soon as possible. but also the business behind it. for example. According to an estimate by Celent. both out of London to other regions of the UK and also further afield. where financial products and commodities are bought and sold electronically. business analysis.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance Information technology Technologists help banks do big business Banks are spending large sums upgrading trading systems Several banks hire graduates as technology trainees Non-essential IT roles are being shifted to India How Mon hot ey Ku Opp dos ortu nitie s Banks use computers for just about everything – from communicating with staff and storing information on clients to running complex models to price financial products.NET.com Careers in Financial Markets 2007-08 Banks have been spending big money on IT because the effectiveness of systems used to trade everything from simple (‘vanilla’) equities to exotic derivatives is an increasingly important source of competitive advantage. Pay IT is not the place to be if you want to earn a multi-million pound remuneration package. responsibility for managing them often passes to project managers who plan. “We don’t hire people whose ability is purely technical but who have limited interpersonal skills” Derek Walker. or liaise with third-party providers.

” But technical ability is not enough. I’m involved in the initial project brief.Get the latest on internships & grad programmes www. you need to stay up to date with what’s happening. according to Matt O’Hare of recruitment consultants Hays City: “As project manager. testing and project management are just a few. smoothing the continuity of each project and ensuring they hit key milestones. as it will impact on much of your work. Network with as many people as possible – get out and about. His role involves helping the implementation team. you also have to have a social life. Everything must be watertight – from the written reports. Computer science was my forte. or saves us money. We need them to be technically smart but also able to talk to people throughout the business in a down-to-earth way. through the way you walk people through the roll-out stages of a project. where his main objective is to coordinate and successfully implement tightly correlated projects into the business. stay enthusiastic and take on as much as you can.” he says. You’re dealing with projects involving significant sums of money. although they’ll also take people on with strong science. “We don’t hire people whose ability is purely technical but who have limited interpersonal skills. you’re the central coordinator – controlling the budget. end-user sign-off testing. 75 .efinancialcareers. But don’t forget. Why do you like financial services? I love the pace.” says Derek Walker. then the users. then the developers and testers. “They want evidence of good computer skills already.com Careers in Financial Markets 2007-08 Know what each potential employer does and how it fits in with the rest of the financial sector – and understand how the FSA works. That’s really rewarding. working with project managers and acting as point of contact for technical service and change management teams. I also like seeing how financial markets interact with and influence the rest of the economy. engineering or maths degrees. He also solely manages a number of smaller projects. Skills Technical skills are obviously important: “Most IT graduate schemes in the City won’t hire without academic experience of software. especially regulatory issues. The sooner you can get into a core business environment. Although I don’t do any coding. so this job allowed me to combine those interests.uk/students Profile Gurdev Sihre IS implementation team M&G can be three to 18 months. Things change quickly. graduate recruitment manager at investment company Fidelity International. the sooner your bonus potential will increase. understand where everyone is coming from.” agrees Laura Everingham. according to Gurdev Sihre of M&G: “You need to be a team player. development. How did you get your current job? I’d been personally trading in shares since college.” This often involves working alongside and overseeing more than one set of people. to setting criteria for post-implementation.co. ‘Soft’ skills are also necessary: “People need to demonstrate good written and oral communication.” “A key asset is to be able to explain technology to the business in terminology they will understand. What do you like about project management? It’s all about seeing things through from start to finish. head of campus recruitment at Barclays Capital. Project managers need to be able to multitask and work on several things at once. Gurdev joined M&G in 2006. Each has different priorities. eFinancialCareers. What skills are needed to do well? Communication is critical. I still need the knowledge gained from my degree. looking after all the stakeholders. as I have to identify and mitigate risks. and I’m still there when it materialises as a real-life working application that reduces the effort required by people or processes. “Project managers initially work with a team of analysts. but they’re all valid.” Basic salaries IT in financial services 2007 Job title Program manager C# developer C++ developer Application support analyst Business analyst Project manager Basic salary (£k) 80-120 40-80 40-80 40-60 70-120 70-120 Source: Hays City A computer science graduate from Birmingham University.” says Robert Walters’ Louise Clarke. as well as presentation. having a technical understanding helps me pre-empt them and build them into project plans.” Gurdev’s tips: Think about the role you want – it’s such a vast arena and there are so many paths – support. To play a part in all that is fantastic.

you’ll move on to managing a small team of similar analysts or programmers. becoming a program team leader with responsibility for a particular area of a technology program and. according to Louise Clarke of recruiters Robert Walters: “Sectors such as telecoms. it remains heavily oversubscribed. software houses and consultants Roles and career paths Once you’ve got your foot in the door at an investment bank. With the managerial route. while standards have in no way dropped. you’ll start out as a programmer or business analyst. with around 60 applications for every position. Oracle or Microsoft. eFinancialCareers.com Careers in Financial Markets 2007-08 76 . particularly multinationals in the telecoms sector.” he says. “Graduates are a key pipeline for future technology leaders or technology experts” Laura Everingham. graduate recruitment manager at investment company Fidelity International. These could Getting in “A good starting point is to join one of the software vendors whose products are used to trade instruments within the banking sector. employers are less likely to dismiss a candidate simply because they have no previous banking experience: “We’ve seen graduates from pharmaceuticals companies and even the public sector cross over successfully into banks. You could work on technology for the trading floor or build the technology that underpins mathematical models used to price financial derivative products. Although IT is less competitive than other areas. defence and artificial intelligence are classic breeding grounds for candidates. opportunities are plentiful. director of IT Financial Recruitment. The good news is that if you do not immediately land a technology position. Where do you start? Which route will your career take? What are the possibilities for the future? Starting out The easiest and most direct way to work in investment banking IT is to find a bank that will take you on as a graduate trainee. As we have a rotational graduate scheme.” she says. These include blue-chip companies. as well as allowing recruits the chance to find out what it is that they really enjoy. Fidelity International Many major banks seek good IT graduates at the ‘second jobber’ stage from companies outside financial services. ultimately. Or simply manage a project to update payroll systems. “If similar technology has been rolled out in two organisations. a project manager with responsibility for an entire project.” says Laura Everingham. Many organisations like to give their trainees a taste of what’s on offer throughout the IT function. Not everyone who aspires to working in banking technology will achieve a position as a graduate trainee. “Where you want to specialise will depend on you and your strengths.” The advantage of joining a bank directly from university is that you will be trained in the application of technology in financial services and gain a solid understanding of financial products.” You’ll be able to move into banking if you have spent two or three years training at the likes of IBM. however. as people are likely to have been trained in the raw basics but without the pre-moulding they might have if they’d started out in another bank. project management skills are essential.” Matt O’Hare of Hays City says that. working on a particular system. Banks such as JPMorgan. Deutsche Bank.” says Lee Chapman. From there. “The banks actively search from there. then people may well have the ability to support the same volume and usage in another big company. Banking is notoriously competitive. “Graduates are a key pipeline for future technology leaders or technology experts within our organisation. such as computer science. There are two broad routes available to technologists who work in investment banks: technical and managerial. with a view to identifying potential skills. Financial software providers such as Murex and Beauchamp Financial Technology also take on graduates. there are several other routes into the industry for technologists.Banking & Financial Markets Accounting in the City IT in Finance Employers At a glance IT careers Technology opens more doors than you’d think Banks value experience from outside financial services Rotational programmes give you the chance to find your niche No room for ‘anoraks’ – business awareness is critical So you want to work in IT in investment banking. with Beauchamp employing around 30 a year. Goldman Sachs and Barclays Capital recruit hundreds of graduates into their technology divisions each year. “These companies will be looking for exceptional academic backgrounds and have a preference for scientific degrees.

This path is open only to the very best technologists. director of banking technology recruiter Thomson Keene. there are roles available within operations which will involve acting as an interface between IT. We act as the middle man between the people who do the pricing mathematics and the traders.” Simon’s tips: Find out where your job would sit – that helps you match your own skills to the job’s requirements and demonstrates good preparation – a key skill when planning a new software project. have been displayed during a team project at university or a final-year assignment – alternatively. often including major elements of IT infrastructure.” says Andrew Keene. “Quantitative analysts might become traders – and some of those may come from an IT background – but they’ve probably always been working in the front office. and constant prioritising will be necessary.com Careers in Financial Markets 2007-08 77 .” The one thing you can’t count on if you work as a technologist is moving into the front office in a purely client-facing role as a trader or salesperson. move forward on that and send the software out into the system. Good communication skills are essential. and will happily come back with good feedback.Profile Simon Pascoe Software developer Barclays Capital After graduating last year from Imperial College with a Masters in mathematics. “In IT. however. which is rewarding. Where next? From a career in investment banking IT.” he says. You need to be able to cope with more than one thing at once – there will always be high demands on your time. They make decisions about combining the individual programs to make a coherent whole and need an understanding of the entire system. says Chapman: “Strong front-end developers should consider a move to a role within the sales environment – this is where you’re likely to pick up exposure to the latest and most advanced electronic trading systems. it’s rare to cross over into a solely revenuegenerating role. operations and the business.” Technologists are also increasingly valued in the trading arena. we write the software used to price and book trades. Some knowledge of financial services is needed: what various products and services are and how they fit within the context of the business. which in itself opens up further opportunities for those who excel.” One way of staying in close contact with technology is to become a systems architect. It’s pretty exceptional though. working alongside their sales colleagues and explaining the technology aspect of products to clients. you’re able to investigate different ideas and try out and learn new technologies. may move into relationship manager-type roles. From there. I had to explain at interview how I’d go about analysing and solving various scenarios. Simon joined Barclays Capital in an IT development role for the front office. Another way is to work on cutting-edge technologies such as those used to price derivative products. if you join the bank with this intention. Can you describe what you do at the bank? I work in a development team supporting one of the trading desks. Developers of web-enabled products. you could have led a team to raise money for charity or embarked on a round-the-world trip. according to Lee Chapman of IT Financial Recruitment: “For candidates wishing to ultimately work within the business itself. which I like. you won’t get very far. I could have applied to software houses but that wouldn’t give me the close contact with end users that I enjoy in an in-house team. What skills are needed to do well? We’re extremely busy and have to be responsive to the desk. Although in-depth technical knowledge wasn’t required. And as I’d always played around with computers to come up with new ways of applying different ideas. Indeed. after which I was offered a place on the graduate programme. How did you get your current job? I worked here on a summer internship in 2004. What do you like about your role? When you’re presented with new work or something to fix. such as those that support credit derivatives. so we get to see and speak to them virtually every day. you may find it possible to move into a role in banking operations. as the work involves analysing each problem and bouncing ideas off technical experts. “These will require you to support the management of credit and risk. Our clients are internal. eFinancialCareers. These roles will make you far more visible within the business. Why do you like financial services? I knew that banking would involve maths-related work. Traders on the desk are always encouraging. you progress to the project plan. this job combined both interests.

Treasury Services. Trading. Typical duration of graduate programme: 3-year training programme. with six weeks of intensive training at our exclusive academy in Amsterdam.graduate.bankofamerica. Risk. no. of graduate hires in 2007-08: 10. Internship programme info Approx. Derivatives. Equity or Fixed Income Capital Markets. Divisions offering vacancies: As above.Banking & Financial Markets Accounting in the City IT in Finance Employers ABN AMRO Company snapshot ABN AMRO is a prominent international bank. Application deadline: 2008 London graduate development programme: 4 November 2007. Technology & Middle Office. Asset Management and Technology.com Graduate programme info Approx. Bank of America targets European clients with strong US interests and issuer and investor clients with whom the bank already has a strong relationship in the US. no. Apply via: www. We believe it’s a unique culture in the financial sector. The culture is one where individuals can flourish while benefiting from the support of a strong team-based structure. of intern hires in 2007-08: 100 worldwide. Apply via: www. Typical duration of graduate programme: 12 to 18 months. of graduate hires in 2007-08: 150 worldwide.com Careers in Financial Markets 2007-08 Internship programme info Approx. Risk.bailliegifford. It is also one of the fastest growing firms in the sector. We also welcome applications from those seeking an early change in their professional career and from PhD students.bankofamerica. of intern hires in 2007-08: 120.com Bank of America Company snapshot Bank of America serves clients in 175 countries and has relationships with 79% of the Global Fortune 500. trading.com eFinancialCareers. with a history going back to 1824. Apply via: www. We’re ranked 8th in Europe and 13th in the world based on total assets. of graduate hires in 2007-08: 120.com/careers Internship programme info Approx.abnamro.abnamro.graduate. Risk Management. no. Graduate programme info Approx. Application deadline: 30 November 2007.bailliegifford. of intern hires in 2007-08: 7. We are looking for applicants with or expecting a 1st or 2.000 full-time equivalents and total assets of €1. Application deadline: Global Corporate & Investment Banking: 14 November 2007. risk management. The company’s Global Corporate and Investment Banking group (GCIB) provides innovative services in M&A. Technology & Middle Office. Treasury Services.6bn (as at 31 March 2007). Global & Capital Markets. teamwork. Apply via: www. and currently has over £50bn under management or advice. Our strong corporate culture is based on integrity. helped by an impressive investment performance record. Baillie Gifford Company snapshot Baillie Gifford is one of the leading privately owned investment management firms in the UK. who aren’t afraid to voice their opinions and who are prepared to listen to other people’s views will thrive. Structured Finance. no. The bank’s international growth strategy is to build a profitable universal bank with global markets as a core competency. which enable us to make more possible for our clients and our people alike. Divisions offering vacancies: Investment management departments. no.1 degree in any discipline. Application deadline: 2008 London summer internship programme: 27 January 2008. Divisions offering vacancies: Global Investment Banking. It’s a culture where people who are open to new ideas. Global Technology & Operations: 2 December 2007. Graduate programme info Approx. no.com Please see our website for deadlines in other regions as these will vary by location. Apply via: www. treasury management and research. Apply via: www. respect and professionalism. Typical duration of internship programme: 8 weeks in July and August. For more information see our employer profile on www. lending. equity and debt capital raising.054. Divisions offering vacancies: Global Investment Banking. depending on programme. Divisions offering vacancies: Mergers and Acquisitions.com Please see our website for deadlines in other regions as these will vary by location. and have over 4. an exclusive focus on investment management and an effective partnership scheme. Sales and Research. Application deadline: 16 January 2008. a staff of over 107. Application deadline: 31 January 2008. Typical duration of graduate programme: 2-3 years depending on line of business. Divisions offering vacancies: Investment management departments. Typical duration of internship programme: 10 weeks.com/careers 78 . Typical duration of internship programme: 10 to 12 weeks during the summer.500 branches in 53 countries. Global & Capital Markets.efinancialcareers.

com/students The Financial Job Marketplace .uk/students and start practising now! www.Practice makes perfect Numerical Tests are the latest tool brought to you by eFinancialCareers to help you prepare for the demands of the application process. Visit our Student Centre on www.co.efinancialcareers.efinancialcareers.

Divisions offering vacancies: Compliance. Operations.bgigraduatecareers. Technology. Barclays Capital provides large corporate. Information Risk Management. Divisions offering vacancies: Active Equities. we have pioneered change and led investment innovation. Barclays Capital has offices in 26 countries.000 financial professionals worldwide. Application deadline: Recruitment is ongoing with no application deadlines. Data Analysis. project management. Fixed Income (active/indexed). Technology & Trading. Strategy and Planning. Legal.com/campusrecruitment Barclays Global Investors Company snapshot Barclays Global Investors (BGI) is one of the world’s largest asset managers and a leading global provider of investment management products and services. Finance. With a distinctive business model. Business Development. programming. of graduate hires in 2007-08: 600 globally. of intern hires in 2007-08: 120 in the UK. Typical duration of graduate programme: Graduates join as permanent employees with real responsibility from the start. Typical duration of graduate programme: N/A. Indexed Equities. Global Marketing. Application deadline: 14th October 2007. Investment Banking and Debt Capital Markets. Accounts. Corporate Communications. Typical duration of graduate programme: 18 months. Operational Risk Management. Typical duration of internship programme: 12 weeks. Quantitative Analytics. Divisions offering vacancies: Active Equities. Software Development. Typical duration of internship programme: 10-week internship.bgigraduatecareers. of intern hires in 2007-08: 600 globally. Graduate programme info Approx. Apply via: www. or the teams of our media products.barclayscapital.200 people and has the reach and distribution power to meet the needs of issuers and investors worldwide.com/campusrecruitment Internship programme info Approx. Available 24 hours a day. Apply via: careers. News. Apply via: www. of graduate hires in 2007-08: 400+ in the UK. Human Resources. Application deadline: January 2008. Structuring. Operations. Fixed Income (active/indexed).com Graduate programme info Approx.com Internship programme info Approx. Apply via: www. no. of intern hires in 2007-08: 40. Data Analysis. Divisions offering vacancies: Financial Sales.com 80 . Quantitative Analytics. Application deadline: Please see website for details. Structuring. Please see website. Divisions offering vacancies: Financial Sales. Business Development. Indexed Equities.bloomberg. Global Financial Risk Management. Divisions offering vacancies: Compliance. multimedia reports and trading capabilities into a single sophisticated platform. Typical duration of internship programme: 10 weeks. Information Technology. IT. Apply via: www. combining quantitative scientific analysis with human ingenuity to become creators and inventors in our field. no. Apply via: careers. Research. no. Graduate programme info Approx. financial professionals and individuals in over 127 countries rely on Bloomberg. government and institutional clients with solutions to their financing and risk management needs. which has an AA long-term credit rating and a balance sheet of over £996bn (€1.com Bloomberg Company snapshot Bloomberg is the leading provider of realtime financial news. no. We’ve developed a unique approach to equity and fixed income asset management. Strategy and Planning. Information Technology. Legal. no. Project Management. analytics. the Bloomberg Professional service. news organisations. We offer opportunities in finance. Corporate Communications. HR and News. sales. Technology & Trading. news and summer internships. Global Marketing. Information Risk Management. Sales. Corporate Real Estate Services.barclayscapital. news. employs over 13. Human Resources. Corporate Real Estate Services. Research. Marketing. Investment Banking and Debt Capital Markets. Software Development. data and analysis. Sales. Application deadline: Internship applications close at the end of February 2008. no.com Careers in Financial Markets 2007-08 Internship programme info Approx. We have many areas in which you can shine.Banking & Financial Markets Accounting in the City IT in Finance Employers Barclays Capital Company snapshot Barclays Capital is the investment banking division of Barclays Bank PLC. Technology. You can work for our core business.bloomberg. Global Financial Risk Management.900 clients throughout the world. From inventing the world’s first index fund in 1971 and the first quantitative active strategy in 1978.com eFinancialCareers.bloomberg.86 trillion (£950 billion) worth of assets for over 2. Today we manage more than $1. to more than 250. Operational Risk Management. Project Management.4 trillion). Visit careers. although it is advisable to apply early. Application deadline: The deadline to apply for summer internships is 31 January 2008. 300 in London. the ‘Bloomberg Professional’ service seamlessly integrates data. Leading corporations. Finance. 300 in London. of graduate hires in 2007-08: 65.

Apply via: www. Credit Suisse celebrated its 150th anniversary and launched an integrated banking platform delivering comprehensive financial solutions across a diverse global client base. no. Corporate Finance. Typical duration of graduate programme: Varies by area. At BNP Paribas. and unparalleled access to capital and liquidity. institutional investors and governments in the world. Investment Research. ECEP . our Markets and Banking division enables clients to achieve their strategic financial objectives by providing them with cutting-edge ideas. of intern hires in 2007-08: 245 summer interns. Active in 50 countries and employing 45. Application deadline: See website for detail. Capital Markets. Credit Suisse offers intellectual challenges. Typical duration of graduate programme: Dependent on programme. there are equally exceptional opportunities for the people who can deliver that growth. Finance. Operations and HR.citi.graduates. Typical duration of internship programme: Dependent on programme. Divisions offering vacancies: Investment Banking. Application deadline: Full time programme: 4 November 2007. As a global leader in banking. earlier responsibility and greater opportunity to develop. There are exceptional opportunities for further growth in new product areas and emerging markets. private banking. Private Banking. capital markets. Capital Markets. Typical duration of internship programme: 10 weeks. Operations and HR. Divisions offering vacancies: As per above.com Careers in Financial Markets 2007-08 Internship programme info Approx no. this bank is a true pioneer in global finance. of graduate hires in 2007-08: 250. Sales and Trading. high rewards and global development potential for individuals who share an enthusiasm for business-critical innovation. equities.gtios. of graduate hires in 2007-08: 500 global vacancies. Equities. Divisions offering vacancies: Asset management. Equity Derivatives. no. Graduate programme info Approx. investment banking. Full-time opportunities: 23 November.BNP Paribas Company snapshot BNP Paribas is a global leader in banking and financial services. Technology.com Apply via: www. You will come in to a real job from day one.credit-suisse. with a presence in many countries dating back more than 100 years.bnpparibas. private banking and asset management services to clients across the world. see www. Global Transaction Services. please see our website.co.citi. and transaction services.com/careers eFinancialCareers. Typical duration of internship programme: Summer: 8-12 weeks. Technology. Fixed Income. of graduate hires in 2007-08: 200 graduates. best-in-class products and solutions. Sales and Trading. we like to do things our own way. Graduate programme info Approx. Coverage. For other deadlines. which means a more intense experience. Application deadline: See website for details. Corporate Banking. of intern hires in 2007-08: 250.000 people and a presence in 85 countries across five continents.credit-suisse. Investment Research.citigroup. of intern hires in 2007-08: Varies by programme.gtios. ranking amongst the world’s top 15 banks by market capitalisation and total assets.graduates. Application deadline: Please see our website for specific dates 81 . Apply via: https://www.000 people. 2007. Typical duration of graduate programme: Minimum 1 year.co. Divisions offering vacancies: We have global opportunities in Fixed Income. Apply via: www. In 2006. Graduate programme info Approx no. no.uk Internship programme info Approx. 2007. Investment Banking. Long term: 4-11 months. shared services & information technology. Information Technology and other support functions. We don’t offer standard three-month rotations for graduates. Structured Finance and Functions. Corporate Banking.com/careers Internship programme info Approx. finance.uk Citi Company snapshot Citi is the most complete financial partner to corporations. fixed income. Global Transaction Services. Apply via: www. Technology. Application deadline: 2008 London graduate development programme: 4 November.com Credit Suisse Company snapshot Credit Suisse provides investment banking. com for more details. financial institutions. Application deadline: Summer programme 20 January 2008. Divisions offering vacancies: Investment Banking. no.bnpparibas. Our corporate and investment banking division is one of our core businesses – with over 14. Apply via: https://www.careers. Divisions offering vacancies: Asset Management.

The task of the bank is to contribute towards the integration. Group Technology & Operations. Private Wealth Management. leading-edge capabilities and financial strength create value for all its stakeholders: clients. Operations. Private Wealth Management and Technology. of graduate hires in 2007-08: 100. Asset Management and PWM: 15 January 2008 For Finance. Typical duration of internship programme: 10 weeks: 1 week’s training followed by a 9-week internship. Typical duration of internship programme: 9-10 weeks. employees. of intern hires in 2007-08: Over 200 positions in the City of London. and they cannot be extended beyond the maximum length of five months. Global Markets.dresdnerkleinwort. Risk Management and Information Technology. offers the opportunity to work for Europe in a truly international environment. Europe’s number one fund manager and the global leader in securities trading. covering a wide range of professions. The EIB continuously adapts its activity to developments in EU policies. no. Apply via: www. Legal. investors. Human Resources.dresdnerkleinwort. Capital markets – Sales. Finance.eib. Apply via: www. With headquarters in London and Frankfurt and an international network of offices. Divisions offering vacancies: Global Banking. one of the world’s leading financial services providers. no.db. Its breadth of experience. Divisions offering vacancies: Asset Management. of intern hires in 2007-08: 100. of graduate hires in 2007-08: Over 250 graduates in the City of London. Global Markets. The EIB raises substantial volumes of funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives. Human Resources. The EIB. Apply via: www. Finance.org/about/jobs eFinancialCareers. and society as a whole. attracting the brightest talent to deliver an unmatched franchise. Research.com/careers Internship programme info Approx. Dresdner Kleinwort provides a wide range of investment bank products and services to European and international clients through its Global Banking and Capital Markets business lines. no. Application deadline: Summer internship deadline: 8 February 2008. Risk Management and Information Technology. Apply via: www. Global Markets. Trading and Structuring. Typical duration of graduate programme: 18 months. Divisions offering vacancies: Global Banking. Legal and Capital: 15 February 2008. Capital Markets – Sales. Risk & Capital. Risk. Application deadline: Graduate deadline: 8 November 2007. Application deadline: For Global Banking. Graduate programme info Approx. Trading and Structuring. Legal. Typical duration of graduate programme: 8-week training programme.com/graduates European Investment Bank Company snapshot The European Investment Bank was created by the Treaty of Rome in 1958 as the longterm lending bank of the European Union. balanced development and economic and social cohesion of the EU member states. It is committed to being the best financial services provider in the world. Human Resources. Global Banking. and Technology. These positions require a university degree and an adequate level of relevant experience. Graduate programme info Approx.db. Today it is a financial services provider. Global Banking. The internships normally last between one and five months. Most are based at the EIB’s headquarters in Luxembourg.Banking & Financial Markets Accounting in the City IT in Finance Employers Deutsche Bank Company snapshot Deutsche Bank has been a global player for more than 135 years. Application deadline: Analyst programme deadline: 1 November 2007. At Deutsche Bank ‘A Passion to Perform’ is more than just a claim – it’s the way it does business.com/graduates 82 . Divisions offering vacancies: Asset Management. The bank offers professional and managerial jobs at different levels. Operations. top executor of M&A deals. Research. Graduate programme info The EIB offers a limited number of internships for university graduates with less than one year of professional experience who wish to acquire an understanding of the work of the bank. from financing the building of the Baghdad railway in the 19th century to being the first German bank to list on the NYSE in 2001. Risk & Capital.com Careers in Financial Markets 2007-08 Internship programme info Approx. based in Luxembourg. Apply via: www. no.com/careers Dresdner Kleinwort Company snapshot Dresdner Kleinwort is the investment banking division of Dresdner Bank AG and a member of the Allianz Group.

fitchgraduatesuk. no. Application deadline: End of February 2008. Apply via: www. Divisions offering vacancies: Structured Finance. Investment. Apply via: www. no. HSBC Amanah. no. Apply via: hsbcnet. MultiManager and Sales & Marketing (European Rotation Programme). Ranges from 2 to 6 months. Private Banking. Apply via: www. we have become the UK’s largest mutual fund manager and the European leader in pan-European equities.7bn for millions of private and institutional investors around the world. The independence we enjoy as a privately owned company enables us to concentrate on developing innovative products and providing the highest levels of customer service. Risk Management & Compliance. Divisions offering vacancies: Corporate Banking. Global Capital Markets. Fitch Ratings has grown rapidly during the past decade gaining market presence throughout the world and across all fixed income markets.com eFinancialCareers. Global Capital Markets.com HSBC Company snapshot HSBC provides a comprehensive range of financial services to over 125 million customers worldwide. Application deadline: 31 January 2008. Divisions offering vacancies: Accounting & Finance. Divisions offering vacancies: Accounting & Finance. no. established in Bermuda. of graduate hires in 2007-08: 25. Investment Banking. Application deadline: To be confirmed for 2008. Assets and resources as at 30.com Apply via: hsbcnet. Research. HSBC Amanah. Investment Banking. Application deadline: Rolling applications. France. Corporates. Financial Institutions. Sales & Marketing (European Rotation Programme) and Systems. HSBC’s Corporate. *Fidelity means Fidelity International Limited (FIL). Typical duration of internship programme: Typical duration is 3 months. Investment Banking and Markets (CIBM) is an emerging markets-led and financing focused business that provides tailored financial solutions to major government.fidelityrecruitment. Managed as a global business.fidelityrecruitment.. timely and prospective credit opinions. Finance.Fidelity International Company snapshot Fidelity* is an investment management company managing more than $280. Typical duration of graduate programme: Varies depending on business area. Through combining a global reach with a local focus. Infrastructure (Global Markets Operations. Fitch Ratings is dual-headquartered in New York and London. Internship programme info Approx. and its subsidiary companies. Divisions offering vacancies: Across the business.03. Typical duration of graduate programme: 18-24 months. operating offices and joint ventures in more than 50 locations and covering entities in more than 90 countries. Global Markets. of graduate hires in 2007-08: 150 globally.fitchgraduatesuk. depending on the programme. CIBM’s dedicated offices around the globe serve the subsidiaries and offices of our clients in more than 60 countries and territories. of graduate hires in 2007-08: 28. Typical duration of internship programme: Summer internships of 10 weeks. Divisions offering vacancies: Corporate Banking. Global Markets. Built on a foundation of organic growth and strategic acquisitions. Application deadline: 1 December 2007 for investment. Compliance and Credit Risk Management). Finance. Fitch Ratings is a majority owned subsidiary of Fimalac.com Careers in Financial Markets 2007-08 Internship programme info Approx. Typical duration of graduate programme: Varies by business area. an international business support services group headquartered in Paris. of intern hires in 2007-08: 70. Operations. corporate and institutional clients worldwide. Graduate programme info Approx. of intern hires in 2007-08: 6. Application deadline: End of November 2007.com Internship programme info Approx.com/ibcareers Graduate programme info Approx. typically two and a half years. Compliance and Credit Risk Management). HSBC Investments. Typical duration of internship programme: 10 weeks. Graduate programme info Approx. Fitch Ratings Company snapshot Fitch Ratings is a leading global rating agency committed to providing the world’s credit markets with accurate.07 are those of FIL. no. Source IMA based on institutional and retail funds under management as at April 2007. 83 . Infrastructure (Global Markets Operations. HSBC Investments. Private Banking.A. no. of intern hires in 2007-08: 20. 31 December 2007 for all other programmes.com/ibcareers Apply via: www. S. Research.

Typical duration of internship programme: 7 weeks.com/apply eFinancialCareers. with over 10. investment banking. governments and municipalities. Operations specialist programmes and a Corporate rotational programme). Finance. no. of intern hires in 2007-08: 50. no. governments and high-net-worth individuals. Typical duration of graduate programme: 3 months’ training. independent thinkers.lazard. Apply via: www. of graduate hires in 2007-08: 15. Apply via: www. Lehman Brothers maintains leadership positions in capital markets (including equity and fixed income sales. of graduate hires in 2007-08: 300. Typical duration of graduate programme: 2-3 years. Divisions offering vacancies: Investment Banking Group. asset management and private equity). Check with your careers service or graduate recruiting contact. advisory and financial services. of intern hires in 2007-08: 25. Application deadline: Deadlines vary. An innovator in global finance. whose talent and initiative will drive our future growth. Equity Markets Group. no.com/eu 84 . Typical duration of internship programme: 10 weeks. Graduate programme info Approx.com Careers in Financial Markets 2007-08 Internship programme info Approx. Apply via: www.com/careers Macquarie Company snapshot The Macquarie Group is a diversified international provider of specialist investment. and we maintain long-standing relationships with business leaders and decision makers around the world. IT. We seek motivated. Application deadline: Analysts: 16 November 2007. no. Financing (ECM & DCM advisory) and Restructuring. Financial Operations Division and Risk Management Group.macquarie. Apply via: www. Graduate programme info Approx. independence. The firm is headquartered in New York. Capital Markets Division (Equities. the Middle East. Application deadline: Interns & 1-year placement: 1 February 2008. Risk Management). We solve complex financial challenges for a client base that includes corporations.lehman.lazard.000 individuals operating across 16 countries. no. Divisions offering vacancies: M&A advisory. Capital Markets Division (Equities.000 employees in 24 countries across Europe. Application deadline: 11 January 2008.lehman.com/careers Graduate programme info Approx. Macquarie has reported successive years of record growth and profits for the past 15 years and has seen its presence in the European market increase significantly. Divisions offering vacancies: Investment Banking Group. the Risk Management Group. Investment Management Division. Check with your careers service or graduate recruiting contact. free of the conflicts that can arise at other financial institutions.com/apply Lehman Brothers Company snapshot Experience Lehman Brothers. Divisions offering vacancies: M&A advisory. trading and research). of graduate hires in 2007-08: 85. the Equity Markets Group and our Information Technology Division in both Europe and the UAE.com/eu Internship programme info Approx. and operates in a network of offices around the world. Application deadline: 5 November 2007. the Financial Operations Division. Corporate Division (Corporate Advisory. 6-12 months for industrial placements. Private Equity.com/eu Internship programme info Approx. Africa and Australasia.macquarie. Engage your passion. the Americas. Founded in 1850. institutional clients.Banking & Financial Markets Accounting in the City IT in Finance Employers Lazard Company snapshot Lazard is a premier financial services firm committed to excellence. Apply via: www. Make an impact. In joining Macquarie. Lazard is a global firm. institutions. of intern hires in 2007-08: 300. integrity and creativity for our clients on a global scale. Asia. Realise your potential. no. and high-net-worth individuals worldwide. Apply via: www. and investment management (including private investment management. To apply please visit our website: www. with regional headquarters in London and Tokyo. you will have the opportunity to be part of a successful team working in a fast-paced and dynamic environment where your contribution is valued from day one. intellectual rigour. Private Equity. Operations. Corporate Divisions (including IT. Lehman Brothers serves the financial needs of corporations. Information Services Division. Graduate opportunities exist within the Investment Banking Group (Corporate Finance Advisory and Banking Funds) the Treasury & Commodities Group. Financing (ECM & DCM advisory) and Restructuring. Typical duration of graduate programme: Permanent. Divisions offering vacancies: Investment Banking Division. Fixed Income & Prime Services). Typical duration of internship programme: 10-12 weeks for internships. partnerships. Application deadline: Deadlines vary. We are an independent firm.macquarie. with a team of over 2. Treasury & Commodities Group. Divisions offering vacancies: Investment Banking Division. Fixed Income & Prime Services). Our success comes from supporting the ideas of our people. Investment Management Division.

Apply via: www. they’ll open very quickly. Typical duration of graduate programme: Unique 17-week programme (rotating across fixed income sales & trading. no. We’re ranked in the global top 17. Apply via: www. Credit Risk Management. no. HR and Global Private Client. we’ll trust your ability to dig deep and deliver the goods. of graduate hires in 2007-08: 250. Global Markets.morganstanley.ml. Global Markets. creating opportunities and insightful solutions to complex financial problems. of intern hires in 2007-08: 150.1 or equivalent degree. corporations. We offer new ideas and effective execution. of graduate hires in 2007-08: 250. commodities & infrastructure finance). Additional languages an advantage but by no means a prerequisite to applying. Application deadline: Full-time programme: November.Merrill Lynch Company snapshot Merrill Lynch is a leading wealth management. one of the world’s largest publicly traded investment management companies.rbccm. as well as merger and acquisition advice. Sales & Trading. no. Typical duration of graduate programme: 2-3 years. sales. 85 . governments and other entities around the world. Sales & Trading. foreign exchange. Graduate programme info Approx. That’s precisely because we’re not the world’s biggest investment bank. small and mid-size businesses. capital markets and advisory company.com/careers/recruiting RBC Capital Markets Company snapshot Every investment bank can promise challenge and responsibility to its graduates.000 employees across 31 countries provide underwriting. Investment Banking. Application deadline: 31 December 2007. with a reputation for excellence in advice and execution on a global scale. Divisions offering vacancies: Investment Banking.rbccm.com/careers Internship programme info Approx. Typical duration of internship programme: 8-10 weeks. Application deadline: 8 February 2008. with offices on six continents and client assets of more than $1. which means we’re big enough to be a serious player in the financial markets. structuring.com/careers/europe Apply via: www. Divisions offering vacancies: Capital Markets (Front Office. Application deadline: Summer programme: December. Typical duration of graduate programme: 2 years. Through its two core businesses – Global Markets & Investment Banking and Global Private Client – Merrill Lynch provides a range of services for individuals. Typical duration of internship programme: 10 weeks. and real estate finance. how long might you have to wait for those doors of opportunity to open? With RBC Capital Markets. Apply via: www. Genuine interest in finance with a strong desire to progress quickly.ml. Internship programme info Approx. yet small enough to offer our people really early responsibility.6 trillion.com/careers/recruiting Apply via: www. Graduate programme info Approx. Application deadline: 11 November 2007. Merrill Lynch owns just under half of BlackRock. HR and Global Private Client.morganstanley. The question is. Technology and Finance & Operations. privatisation and financial restructuring. Skills required: Minimum 2. Apply via: www. Global Financial Institutions. Graduate programme info Approx. Private Wealth Management. of intern hires in 2007-08: 200. If you’re good enough. Research. Technology. Typical duration of internship programme: 9 weeks. Divisions offering vacancies: Investment Banking. Global Wealth Management & IT. Divisions offering vacancies: Investment Banking. Middle Office and Operations). Investment Management. Technology. The company is a global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to clients. The firm serves institutional and individual investors and investment banking clients. commodities. including corporations. trading and research for almost every financial instrument. no. Investment Management.com/careers eFinancialCareers. of intern hires in 2007-08: 20. institutions and governments. There are no waiting rooms. Application deadline: 23 November 2007.com Careers in Financial Markets 2007-08 Internship programme info Approx. debt capital markets.com/careers/europe Morgan Stanley Company snapshot Morgan Stanley is one of the world’s largest diversified financial services companies. Technology and Finance & Operations. Research. of graduate hires in 2007-08: 10-12 Divisions offering vacancies: We also take a small number of graduates into the middle office. Divisions offering vacancies: Investment Banking. foreign exchange. Our 45. no. no. no hiding places.

Typical duration of graduate programme: 12 months. risk management and investment services. Risk. We are also a major player in the emerging environmental markets.rbs. we have relationships with 95% of the FTSE 100 and 80% of the Fortune 100. Apply via: www. Typical duration of internship programme: UK: Easter Insight Programme (2 weeks).com/ukcbgraduates Internship programme info Approx. Sydney and Beijing. Typical duration of graduate programme: Our Talent Pool scheme typically lasts for 18 months. Apply via: www. Front Office. Application deadline: We are always recruiting and are keen to receive CVs all year round. Corporate and Institutional Banking.rbs. Commercial Banking. as well as Essen in Germany. Short Term Position Management. Debt Advisory and Equity Capital Markets. Paris. Divisions offering vacancies: We offer our talent the opportunity to experience several different areas of our business: Risk. RBS Invoice Finance. Technology. Application deadline: Graduate programme: 5 November 2007.com/ukcbgraduates Rothschild Company snapshot Rothschild is a top-tier international investment bank with offices in cities in over 30 countries. Graduate programme info Approx. Hong Kong. Divisions offering vacancies: Global Banking & Markets. Together.com eFinancialCareers. International Banking Services. New York. We also take long-term interns into our Investment Banking division. with the excitement of working within the energy markets.jobs. Global Banking & Markets is a leading banking partner to the world’s corporations and financial and governmental institutions. Asset and Portfolio Management. Typical duration of placement programme: 12 months.000 employees worldwide. et al. Application deadline: Summer internship programme: 7 January 2008. We continue to grow rapidly.rbs. Typical duration of graduate programme: Graduates complete a four-month training programme. As an asset-backed energy trading company RWE Trading has a keen understanding of the forces driving the markets. we offer a summer internship programme in our Investment Banking and Corporate Banking divisions. we now serve more than 36 million customers globally.com/gbmgraduates www.Banking & Financial Markets Accounting in the City IT in Finance Employers Royal Bank of Scotland Company snapshot The Royal Bank of Scotland is the third largest bank in Europe and the tenth largest in the world by market capitalisation. Change Management. We combine all the skills and expertise of any major investment bank. including London. providing an extensive range of debt financing. Singapore. though we will always have positions for talented individuals.000 employees. Corporates. Worldwide: Summer Internship Programme (10 weeks). Apply via: www. UK Corporate Banking is the UK’s number one corporate bank. Milan. Divisions offering vacancies: Global Banking & Markets – Debt Markets. We have over 2. coal and power both UK and continental. Long-term internship programme: ongoing. no. the latter of which is conducted through our joint venture with ABN AMRO).com 86 . Graduate programme info Approx. of graduate hires in 2007-08: 30. Lombard. Graduate programme info Approx. Chief Administrative Office.com Careers in Financial Markets 2007-08 Internship programme info Approx. Our long-term internship posts run for periods of between three and six months.com Placement programme info Approx. of graduate hires in 2007-08: 375. which includes formal classroom training as well as rotations through our principal divisions. Analysis.trading@rwe.rothschild. Financial Institutions. Application deadline: Jan-Feb 2008. At RWE Trading we trade not only the typical energy commodities gas. Specialised Lending Services. Divisions offering vacancies: Risk. but also a range of financial derivatives. UK Corporate Banking – Corporate Banking. Apply via: www. Domestic Banking Services. Toronto. of placement hires in 2007-08: 8-12 (UK only). Application deadline: Please refer to our websites. Long-term interns: various. no.trading@rwe. Application deadline: Please refer to our websites. Operations. Rothschild’s principal activities are Investment Banking (M&A. no. Corporate and Structured Finance. no.com RWE Trading Company snapshot We are a leading player in the European energy markets. We provide objective relationship-based advice and services to our clients worldwide and work with them to achieve their strategic and financial goals. of intern hires in 2007-08: 240 worldwide. Finance. no. Frankfurt. S&V – or specialise in just one or two. no. oil. Treasury & Investor Products. Corporate Banking and Private Banking. Sector Corporate Finance. With over 150. RWE Trading runs trading floors in London and Swindon in the UK. Typical duration of internship programme: Our summer internship programme lasts for 10 weeks from early July to early September. IS. of intern hires in 2007-08: Summer interns: approximately 30.jobs. 10-20 Internships (6-12 months). Apply via: Trading.com/gbmgraduates www. Apply via: Trading. Divisions offering vacancies: Investment Banking (M&A. Divisions offering vacancies: In the UK.rbs. UK Corporate Banking.rothschild. of graduate hires in 2007-08: We typically look to recruit six graduates per year. Debt Advisory and Equity Capital Markets) and Corporate Banking.

serving a discerning international client base. UBS creates added value for clients by drawing on the combined resources and expertise of all its businesses. Graduate programme info Approx.com eFinancialCareers. Human Resources. coal. Divisions offering vacancies: All. natural gas. Typical duration of graduate programme: 2 years.com Careers in Financial Markets 2007-08 Internship programme info Approx. Operations.com and www. Typical duration of internship programme: London: 10 weeks (placements up to 12 months). Please check our website for details. property derivatives and pulp & paper markets. is focused on growth. depending on the programme. Apply via: www.com/graduates. no. of graduate hires in 2007-08: No fixed number.efinancialcareers. no. Tradition Financial Services (TFS) is a market leader in the brokering of financial and non-financial products. environmental products and weather derivatives – and exchangetraded futures and options. 87 . Application deadline: International graduate programme: February 2008.com UBS Company snapshot UBS is one of the world’s leading financial firms.efinancialcareers. Finance. Finance. Typical duration of graduate programme: The broker training programmes are usually 6 to 8 weeks. We are at home in a variety of cultures and offer the best of all worlds by combining our international expertise with local insights. Divisions offering vacancies: All. With offices worldwide.tfsbrokers. UBS is the market leader in retail and commercial banking. In Switzerland. Application deadline: N/A. Application deadline: London: 4 November. Divisions offering vacancies: This could be in any of our London departments: Equities. no deadline. no deadline.tfsbrokers.com and our adverts on www. one of the world’s top three interdealer brokers in financial and commodity-related products. of graduate hires in 2007-08: 500+ across Europe. Company snapshot Founded in 1985. of graduate hires in 2007-08: 370 globally. precious metals.com/graduates Tradition Financial Services Ltd. equity derivatives.standardchartered. a top tier investment banking and securities firm and one of the largest global asset managers.Standard Chartered Bank Company snapshot At Standard Chartered we have an ambitious vision supported by dynamic values. Group Technology. crude oil and refined products. Zurich: 3-6 month placements. but average is 4 per year in London. freight.ubs. As an integrated firm. Typical duration of graduate programme: 18-24 months. Apply via:www.standardchartered. Application deadline: Internship deadline: March 2008.ubs.uk around April / May. Consumer Banking. TFS is a subsidiary of Compagnie Financière Tradition (CFT). Divisions offering vacancies: Wholesale Banking. Consumer Banking. no. creative and achievement-orientated graduates who want to broaden their horizons and have a desire to build an extraordinary career in banking. UBS is the leading global wealth manager. We are looking to attract highly ambitious. Graduate programme info Approx. global in scale. depending on positions available.com/graduates Apply via: www. Legal & Compliance and Assurance and Corporate Real Estate Services. intelligent. Typical duration of internship programme: 10 weeks. Zurich: year-round. Operations. Energy or Currencies. Apply via: www. We’re one of the world’s most international banks leading the way in Asia. Its business. Group Technology. of intern hires in 2007-08: Ad hoc. Apply via: www.students. Africa and the Middle East. no. the company covers currency options. Internship programme info Approx.com/graduates Internship programme info Approx. energy. Divisions offering vacancies: Wholesale Banking. Legal & Compliance and Assurance and Corporate Real Estate Services. Application deadline: Please refer to our website www. of intern hires in 2007-08: 60 globally. Apply via: www. Zurich: year-round. TFS Energy brokers a full spectrum of OTC energy and energy-related physical and derivative products – including electricity. of intern hires in 2007-08: 500+ across Europe. Divisions offering vacancies: Ad hoc. no. Application deadline: London: 27 January 2008. no.tfsbrokers.co. Graduate programme info Approx. Typical duration of internship programme: Variable. Human Resources.

Sell-side: securities firms. product reviews and searchable on-line archive. corporates. pension funds. structured notes. and other hot topics. derivatives. North and South America.Banking & Financial Markets Accounting in the City IT in Finance Employers For more information. Key figures: 8. coverage of money laundering. special reports. investing in hedge funds. consultants. profiles. www. Best bit for students: Wide coverage. mutual funds. Most known for: Objective analysis in a market full of subjective publications. fixed income. alternative investments. governments. 8. updated weekly online.000 unique visitors a month. pensions. Sectors covered: Hedge fund management. funds of funds. breakfast briefings. Typical/target audience: Investors. www. hedge funds.000. capital guarantees. supranationals. alternative investments and funds of funds. German. derivatives. Analysis of new deals and coverage of regulatory and tax changes. Sectors covered: Corporate bonds. structured products. broker/dealer. brokerages and hedge funds specialising in credit. opinion and analysis. published in English. insurance companies. hedge and pension funds. insurance. insurance. Typical/target audience: Investment and asset management. market sentiment. 10% Asia-Pacific/rest of the world. Sarbanes-Oxley.structuredproductsonline. 30% North America. banks. Europe.creditmag. news and five-year archive. how developments affect your peers. litigation and mandates. Basel II.hedgefundsreview. UK and parts of Europe and Asia. fund managers and service providers. Topics include: Analysis and comment on key issues.com About this site: Credit magazine online. implementation and technology issues.263 qualified subscribers. Product offering: Features. product reviews and searchable on-line archive. Best bit for students: News. banks.com About this site: Structured Products online. Japanese. and MiFID. news on operational risk and compliance software and consulting services. Structured Products Extra daily news alert. developments and trends. accountants. daily email newsletters and online bulletins. Sectors covered: Exchanges. www. French.com About this site: Monthly print publication. Sectors covered: Derivatives. coverage includes UK.watersonline. Product offering: Latest thinking in corporate bonds. Italian Spanish. lawyers. technical papers. Key figures: Readership c. regulatory data. insurance companies. guides and handbooks. Key figures: Readership of 10. heads of IT and those responsible for operational risk or compliance strategies. commodities. Key figures: 11.com Careers in Financial Markets 2007-08 88 . Typical/target audience: Heads of operational risk and compliance. www. software/ hardware/market data vendors.net About this site: Latest issue and archive to 2002. monthly surveys on various topics.com About this site: Controlled circulation monthly magazine. Chinese and Korean. Product offering: News.risk. Best bit for students: Views from actual hedge fund managers – find out what it’s really like rather than reading the theory. index products. Buy-side: institutional investors. strategy reviews. Product offering: Feature led articles on technological issues facing the buy. columnists.opriskandcompliance. comment and profiles. business continuity.000 monthly. Countries/languages covered: Global distribution.500 copies printed monthly. Countries/languages covered: Distribution: 60% Europe. trading tips. Typical/target audience: Wholesale market for derivatives-based products. corporate governance. investment. Risk training courses & conferences. performance analysis. chief technology officers. chief risk officers. Countries/languages covered: Published in English. hedge funds. Product offering: Covers the market for guaranteed equity products. Countries/languages covered: USA. equity. including Basel II. analysts. market data executives. Key figures: 10. in-depth features on new regulations. Most known for: News. eFinancialCareers. your competitors and your own institution. Most known for: News. articles by prominent industry experts. merchant banks. American Financial Technology Awards host Annual rankings survey. guest articles. CDOs. Most known for: Providing up-to-date information on important regulation. Asia. academic papers and special domicile supplements. Monthly & weekly news alerts. Product offering: Information on regulation changes and initiatives. fund managers’ views. product reviews and 11 global events Best bit for students: News.com About this site: Online and monthly in print. Most known for: Monthly magazine for risk management and derivatives industry. moves. features. structured credit and leveraged finance. Countries/languages covered: English. investment trusts. Typical/target audience: Senior execs in pension funds. recruiters. Countries/languages covered: Published in English but with global coverage including UK. here is a selection of our partner sites: www. financial crime. energy firms. Europe. software vendors. fund closures. IAS 39. News. opinion. risk manage-ment. Typical/target audience: Chief information officers.and sell-sides. Sectors covered: Finance. www. North and South America and Asia.

Operations © 2007 Citigroup Inc. Authorised and regulated by the Financial Services Authority. Call us when you’re ready to make your mark. .Investment Banking .Just going with a name. Citi and Arc Design and Let’s Get It Done are service marks of Citigroup Inc.Sales & Trading .Technology .Capital Markets . .Human Resources .Global Transaction Services . Going where you’ll make a name for yourself. or something more? Last year one of our colleagues helped broker a deal that helped an African country reduce its debt portfolio through payment restructuring — only six months after graduation. What do you want to accomplish? An impressive title.Corporate Banking . Citigroup Inc. is an equal opportunities employer.

You can also practise our numerical tests and investment challenges and get expert insider knowledge.com/students . Visit the Student Centre for the best graduate jobs and internships.efinancialcareers. the Student Centre is the right address. www.com Student Centre is the number one graduate website for jobs and career advice in banking and the financial markets. For the best chance to succeed in the City.The right address to find your first job in the City The eFinancialCareers.

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