calling all atot investment bankers

[Nerva]

Originally posted by: LegendKiller

Originally posted by: 3cho

Originally posted by: LegendKiller

Originally posted by: 3cho

Originally posted by: LegendKiller

Originally posted by: 3cho

Originally posted by: LegendKiller
I agree with Echo3 that the IB is a wheel greaser. There are frictions involved in placing debt or equity, or arranging for the purchaser of a company. Those frictions are reduced by an IB, which utilizes manpower to solve information defficiencies, explain structures, and help close deals.

While you don't "make" a something you can touch, it's an invaluable service, as without that grease much more time and money would be wasted by those looking to raise cash, lend cash, buy equity/debt, sell equity/debt, and buy/sell different companies and such.

I am a VP at a mid-level (domestically and large internationally) bank. I work to analyze company's financials and help them raise money, which is funded by my bank essentially issuing debt through different funding sources. The companies could be other banks, leasing companies, auto-loan companies, mortgage companies (prime only)...etc.

while i like the job, sometimes i see it as a necessary evil. particularly at the way that processes are run at my firm. can companies raise capital or sell themselves without the investment banks? hell yes. but why would they spend the time and effort to do something that is not their core competency (pardon the contrite banking fluff).

I would agree that they could do it themselves, but I don't think they could do it nearly as well. The amount of info a bank has built up, from writing pitches, understanding collateral (in my case), negotiating with rating agencies, talking to portfolio managers, pricing bonds, selling bonds, and secondary market trading. Every company would need to have those areas and be very good at them.

As you said, it wouldn't be a core competency, so they'd suffer. Personally, I see it nothing more than having a car mechanic. Not all people can be a mechanic, time and money negate the possibility, thus you need somebody to do that for you.

Not to understate car mechanics, but knowing how to structure, negotiate, execute, and sell a half billion in asset backed bonds requires a significant amount of knowledge, which is why you get paid. It's not just book knowledge either, the network, institutional, nd practical knowledge/experience needed is massive.

dude, i just realized why you only work 10 hours a day. you are a vp!!! we have one vp in our group, he gets in at 9:30 and goes home at 6!

While I am a "VP", I am the junior guy in the group, so I probably do the work of a 3rd year associate. The other 3 guys in my group are an Assoc-Dir, Dir, and Group Head. I couldn't imagine that we'd make an Assoc work 12+ hrs, especially since everybody gets in at 8:30 and leaves at 5:30.

I pull 12-14hr days sometimes, just to get up the curve on some of this stuff.

so you have no analysts below you?

Nope, I am more or less the "analyst" here, as I am the best at running models and cutting data. But I also work on documentation, negotiation, and contacting leads. I am trying to get business with one of my old bosses on the issuer side now.

Smaller banks are a lot more fun. YOu aren't pigeonholed, you aren't treated like crap, and you see a lot more stuff.

really?... they treat me like sh1t. no training, nothing. i had to use a 1999 ML training manual to teach myself... recently, for training purposes, the senior bankers asked the analyst to run a lbo using the firm's pre-built model.. what f---ing good is that? you dont learn anything unless you build one on your own. so i decided to start building one from scratch, and i was told that "that's the wrong path to go down on".

 

[thegimp03]

Would you guys say it's better to get into I-banking before MBA (i.e. analyst position), or after MBA (i.e. associate position). Reason I ask is because I currently work for one of the big 4 accounting firms and recently have been considering a complete change of scenery after being here for almost 2 full years. While I can stay another year and transfer into transaction services (advisory-like, M&A stuff, and would give me the intro to I-banking), they don't make the kind of money guys in I-banking do while working on similar deals...though a CPA firm's role is different.

It's funny because people working for the big 4 a lot of times work the same hours that an I-banker does but don't get compensated nearly as well. Not enough money in accounting.

 

[Nerva]

Originally posted by: thegimp03
Would you guys say it's better to get into I-banking before MBA (i.e. analyst position), or after MBA (i.e. associate position). Reason I ask is because I currently work for one of the big 4 accounting firms and recently have been considering a complete change of scenery after being here for almost 2 full years. While I can stay another year and transfer into transaction services (advisory-like, M&A stuff, and would give me the intro to I-banking), they don't make the kind of money guys in I-banking do while working on similar deals...though a CPA firm's role is different.

It's funny because people working for the big 4 a lot of times work the same hours that an I-banker does but don't get compensated nearly as well. Not enough money in accounting.

if you are at a big four now, i would go to b school and then make sure after graduation get into a bulge bracket bank. remember, the smaller banks will probably come to recruit you, but don't fall for them. you will get a much better experience at a bulge bracket in terms of training and networking.

however, that is just my suggestion based on my experience with a small firm. get advice from legendkiller and whitecloak as well.

 

[BNO]

Not IB but I was a prop derivatives trader for GS. Hours were much better, except when I worked in London and not nearly as much boot-licking to do. I've been out for a couple of years but I'm gonna be a hedge fund trader soon, even less hours

 

[Nerva]

Originally posted by: BNO
Not IB but I was a prop derivatives trader for GS. Hours were much better, except when I worked in London and not nearly as much boot-licking to do. I've been out for a couple of years but I'm gonna be a hedge fund trader soon, even less hours

which fund?

 

[Nerva]

there are only 3 people in banking on this entire forum?

 

[panipoori]

Do investment bankers call up rich folks and ask them to buy stock? I thought they just sat around on computers buying and trading shares with their companys money, excuse my ignorance

 

[Nerva]

Originally posted by: panipoori
Do investment bankers call up rich folks and ask them to buy stock? I thought they just sat around on computers buying and trading shares with their companys money, excuse my ignorance

those are brokers and they are a whole new species. though the works are somewhat interrelated.

 

[SoLiDus88]

theres another forum dedicated to ibanking. www.ibankingoasis.com

Warning though, if you think atot is bad with everyone being a rockstar, its even worst there.

 

[Nerva]

Originally posted by: SoLiDus88
theres another forum dedicated to ibanking. www.ibankingoasis.com

Warning though, if you think atot is bad with everyone being a rockstar, its even worst there.

i dont doubt it. a lot of cocky people out there. and i have to admit i used to be one of them.

 

[Special K]

Originally posted by: 3cho

Originally posted by: SoLiDus88
theres another forum dedicated to ibanking. www.ibankingoasis.com

Warning though, if you think atot is bad with everyone being a rockstar, its even worst there.

i dont doubt it. a lot of cocky people out there. and i have to admit i used to be one of them.

So what changed your perspective?

 

[Nerva]

Originally posted by: Special K

Originally posted by: 3cho

Originally posted by: SoLiDus88
theres another forum dedicated to ibanking. www.ibankingoasis.com

Warning though, if you think atot is bad with everyone being a rockstar, its even worst there.

i dont doubt it. a lot of cocky people out there. and i have to admit i used to be one of them.

So what changed your perspective?

for several reasons actually.

1. it's just a job, like any job it has its ups and downs. the money that is earned is a direct reflection of how many hours are put in.
2. my bank is not really that prestigious and our deals are small. even if i were at a goldman or somewhere else, i doubt i would be cocky because of point 1.
3. logically speaking, there are people making wayyyy more money than investment bankers.
4. doesnt take much to do investment banking. anyone can do it (however, not everyone can be rainmakers).

 

[Dessert Tears]

Originally posted by: 3cho

Originally posted by: LegendKiller

Originally posted by: 3cho
except for me i work about 90 a week, getting less than 30k in bonus while everyone else is getting 90-100...

How long have you been working in the field?

9 months. completed 2 transactions (both very small though with reputable firms, essar and princeton review). how about you?

Is "everyone else" 1st-year analysts at other firms? I don't remember the report exactly, but I seem to remember that 90-100 was over all analysts or something, i.e. higher than 1st-years.

Are you considering jumping already, or just venting? The recommendation I've heard is 24 months minimum for one's first position.

 

[andylawcc]

Originally posted by: 3cho
there are only 3 people in banking on this entire forum?

you actually counted? your ROI is weak.

 

[Nerva]

Originally posted by: Flatscan

Originally posted by: 3cho

Originally posted by: LegendKiller

Originally posted by: 3cho
except for me i work about 90 a week, getting less than 30k in bonus while everyone else is getting 90-100...

How long have you been working in the field?

9 months. completed 2 transactions (both very small though with reputable firms, essar and princeton review). how about you?

Is "everyone else" 1st-year analysts at other firms? I don't remember the report exactly, but I seem to remember that 90-100 was over all analysts or something, i.e. higher than 1st-years.

Are you considering jumping already, or just venting? The recommendation I've heard is 24 months minimum for one's first position.

i am trying to get to a bulge bracket. it's very common for people to shift around. i think credit suisse lost 2 analysts a month after training ended.

my firm has historically had a poor retention rate for analysts. i was talking to the word processing guy the other day, he said in the 15 years he's been there, analysts rarely stay for more than a year.

 

[cw42]

Originally posted by: panipoori
Do investment bankers call up rich folks and ask them to buy stock? I thought they just sat around on computers buying and trading shares with their companys money, excuse my ignorance

Watch Boiler Room much?

Legend: is ur co SG?

 

[LegendKiller]

Originally posted by: cw42

Originally posted by: panipoori
Do investment bankers call up rich folks and ask them to buy stock? I thought they just sat around on computers buying and trading shares with their companys money, excuse my ignorance

Watch Boiler Room much?

Legend: is ur co SG?

No, but close.

 

[cw42]

AXA. i win. :]

 

[Nerva]

Originally posted by: cw42
AXA. i win. :]

? AXA? how is that an investment bank?