Documente Academic
Documente Profesional
Documente Cultură
SUBSCRIBE
INVESTME...
INVESTME...
INVESTME...
Comments (97)
While corporate banking may not inspire you to become the next Blake from
Mitch and Murray, it also gets you better hours, less stress, and solid exit
opportunities.
Heres what youll get in this crash course:
How our interviewee got into the cash ow game of corporate banking
What youll do and why you want to do it
How the products you sell in corporate banking actually work
Transferable skills compared to the traditional investment banking skill set
Exit plans once youre done giving away other peoples money
Lets get started on converting this interview into a full-time oer at your
next corporate banking interview:
From College to Cash Flow
Q: How did you get started with corporate banking?
A: I had interned before at a credit fund and wanted to get into something more
structured where I could do real work (i.e. be busy with modeling rather than
be busy with twiddling my thumbs). Its more interesting to be in a group with
deal ow than to be in a group without deal ow.
So when it came time to look at banks, I looked closely at Corporate Banking
and Leveraged Finance departments. Of course, I would have been very happy
to work on leveraged buyouts, but in a market with few LBOs and many credit
amendments [NB: changing the terms of a loan], Id much rather sharpen my
credit analysis skills.
Many analysts and associates complain about tough markets, but Ive made the
most of my experience by staying positive and counting the things that are
working out.
There are no tombstones, lucites, or closing dinners when you complete a credit
amendment, but at least youre doing something at work besides following the
markets.
Q: Wow not even steak dinners? Lets continue anyway so you came from
a credit fund, what about everyone else in your group?
A: My group has a couple of more senior sta members who came in from the
various credit rating agencies.
Every now and then, someone with an M&A background comes in to interview
with my group. But really, my group is after someone who is well-versed in
credit analysis.
Once youve done it enough, people will respect you for it. Yes the skill set
from M&A is sort of/kind of/maybe transferable, but someone from a
competing corporate banking department will get the preference any day of the
week.
There is denitely less turnover compared to other departments most people
stay for a while or they leave for a couple of years and come back.
My department prefers people with abackground in Leveraged Finance since
many of our deals originate from there. MBAs are also favored in the recruiting
process, as they seem teachable, approachable, and most importantly of all
personable.
In my department, hardly anyone came from M&A, though some had prior
experience working in various divisions within xed income.
Q: And now the $745 million dollar question weve all been waiting for with
5 years of maturity and L+230 bps interest What is corporate banking?
A: Corporate banking provides nancing to corporations and institutional
clients through debt issuances, structured products, or other banking and
investment products. These products include:
Secured Term Loans
Syndicated Loans with Multiple Arrangers
Structured Finance-type Loans
Some banks operate corporate banking separately from investment banking,
while others have the two functions under the same name.
Q: So it sounds quite similar to Debt Capital Markets or Leveraged Finance if I
understand this correctly in other words, a nancing oriented or capital
markets-type role.
What does a corporate banker actually do?
A: Actually, thats not quite true. Heres how these roles are dierent:
Equity Capital Markets: Youre focused onorigination, in other words selling
new stock issuances to investors.
Debt Capital Markets: Youre also focused onorigination, in this case selling
investment-grade bond issues to investors.
Leveraged Finance: Same thing, but now youre more focused on high-yield
bond issues and building LBO models.
Corporate Banking: Youre focused squarely on theterms of the loans
themselves and your role diers depending on whether or not your bank is
an arranger, a participant, an administrative agent, a lender, and so on.
Before we continue, lets make sure were on the same page with respect to
Shares
roles:
Lead Arranger: Similar to a book runner in equity and debt oerings, this
role entails handling a larger portion of a capital raise.
Agent: Similar to a co-manager in equity and debt oerings, this role entails
handling a much smaller portion of a capital raise.
Administrator: Monitors interest payments and debt principal balance.
Any bank staed on a corporate banking mandate will aim for a lead arranger
role, or will aim to have the most responsibility on the assignment (doesnt this
sound familiar to how employee stang works?).
Typically, the more responsibility a bank receives from the client, the greater
the fees the bank will receive. Beyond that, who gets what percentage of the
transaction, or the economics of the deal, is contingent upon the relationship
itself.
Often, the corporate banking team works with the coverage team who will, in
turn, speak with the clients, and a capital markets team who will syndicate the
loans in the market.
In that case, the corporate banker negotiates commitment papers and
structures the terms of the loan.
Q: So how would a deal work and what would corporate bankers do?
A: In a loan origination assignment, the corporate banker maintains
relationships with their corporate clients. As bankers seek to win repeat
business within their coverage areas, great measures are taken to grow and
enhance existing relationships.
Shares
new subsidiaries that clients may acquire, and on a personal level, this means
acquisition targets.
From there, corporate bankers negotiate the terms of the loan, draft the term
sheet and credit memo, and see the process through to funding.
Here are the most common deal types in the corporate banking department:
Term Loans: You lend a xed amount of money that requires annual
principal repayments.
Bridge Loans: Quick nancing until a more permanent funding source can be
originated. In some cases, a nancial sponsor might use this resource after a
Shares
expenses or mandatory debt repayments are higher than usual. Sort of like a
credit card for a company.
Sector: Some sectors are simply more speculative than others use your
imagination.
Funded or Unfunded: This refers to how much of the loan the client will
actually use. For example, Revolvers are often issued with the expectation
that the client will only draw on a certain amount (often less than 10%), and
the fees may be based on that. The bank itself will pay investors a portion of
Shares
the syndicate loan or the Revolver to make sure the interest expense is
covered. So, bottom-line: many types of credit lines are not fully funded.
This treatment does not apply to Term Loans, however, since theyre always
fully funded.
Q: Sector groups consider key drivers, such as government policy for clean
technology, or consumer preferences for consumer retail.
What moves the market for corporate banking products?
A: The London Interbank Rate (LIBOR) sets the baseline for interest expenses in
my area. As you probably guessed, basis points (1bps = .0001 = 0.01%) are added
for the risk of the company, sector, and geography.
And yes, even after the scandal(s), lenders and borrowers still use LIBOR almost
universally mostly due to tradition and the lack of a stronger standard.
The situation is quite analogous to the credit rating agencies mistakes on
collateralized debt obligations (CDOs). Unless they really messed things up,
their operations will continue to be open for business.
If mid-cap industrial rms dont have loans to pay for capital equipment
purchases, production falls, layos occur, and the ability to generate cash ow
So its sort of a giant loop in this industry, where investors appetite for debt
If you are running Excel for this situation, please make sure to turn on manual
calculation and iterations!
Q: Who are your clients? Or more broadly speaking, what types of companies
want corporate banking products?
A: It depends greatly on the year, what the market is doing, and how various
sectors are performing.
But generally, capital-intensive sectors tend to see more deals (because they
need to borrow to fund operations, and since they also have more collateral to
pledge).
In terms of completed number of deals, expect to see consumer, industrials and
communications as areas of demand when it comes to stang assignments.
Analytically Speaking
You will have a hand in developing these materials, and sometimes its a big
hand if you are the lead left arranger investment bank; other times youll just
accept a bag of money and call yourself a right book runner (laughs).
As a corporate banking professional, however, youll have much more
responsibility in developing the Condential Information Memorandum (CIM)
or bank book.
Any CIM describes the transaction, the company (history, situation overview
with key clients, nancials), and the sector itself. Here are some examples for
you (notice the absence of projections and the presence of a pro-forma
capitalization structure in each one of these):
Healthcare:
Sunrise Medical: by Deutsche Bank
Financials:
Pivdennyi Bank: by LBB, LandesBank Berlin, Standard Bank, and VTB
Walter Investment Mgmt: by Credit Suisse, RBS, Bank of America Merrill
Lynch, and Morgan Stanley
Consumer:
Shares
Media:
Natural Resources:
Size
Maturity
Coupon
Debt Rating
Q: Ok, that was a pretty thorough walk-through of the key skills you would
gain as a corporate banking professional, but how do you determine which
companies receive loans in the rst place?
A: We have proprietary software for a Portfolio Risk Management system that
aggregates and averages expected yields on dierent types of notes.
We will usually run the loan product through to look at the market spread for a
Shares
We have certain minimum thresholds for return on capital and the net revenue
we receive on deals. So, like any other deal in nance, it comes down to:
Where can we get the best return with the least amount of risk?
The most lucrative deals, as you would expect, are the loans we underwrite
ourselves.
Underwriting fees for Term Loans are signicantly higher than upfront and
annual fees for Revolvers, and also have the advantage of being xed amounts.
Beyond the origination, loans are constantly being amended and extended or
renanced with new facilities, which factors into the revenue structure as well.
Getting In and Getting Out
Q: How can readers get prepared to become corporate banking analysts?
A: The focus is very much on the debt side of the balance sheet. Leveraged
Commentary & Data is used quite a bit in leveraged nance to keep track of
leveraged loans and the like.
BMO Capital Markets provides a free weekly newsletter, and if you have a
Bloomberg Terminal, you can use the screen LSRC <GO> to search for corporate
loans. When it comes to industry overviews, LeveragedLoan.com and Standard
& Poors have assembled useful primers.
Most of your learning will take place on the job.
In my department, the training materials were rudimentary at best, and the
Shares
knowledge will come from exposure to dierent loan facilities that you will
Q: What are the typical hours for a corporate banker? You said half the work
Shares
reasons that shall soon emerge, that investment bankers didnt like to talk
about money.
NOTE: Based on the comments below, the interviewee here was referring to
In most cases, the all-in compensation will be signicantly below what entry-
level bankers earn because bonuses are lower. Its still good money for an
entry-level job, but you will not make the same six-gure+ all-in
compensation right out of school.
Q: Thats a thin explanation, but I well run with it for now. What banks
dominate this market?
A: The benet of working at large banks is that size helps to execute larger
deals. JPMorgan, Citi, and Bank of America Merrill Lynch (all commercial banks
with large Balance Sheets) dominate the syndicated market and most deals will
involve multiple major players.
Other rms can be quite well-known in this area as well, such as CIT Group,
which focuses on sponsor-backed companies.GE Antares Capitals
Underwriting Department also competes heavily in the loan space.
Shares
Commercial banks are also interested in the credit analysis skill set, as are
Leave a Comment
Share
FIRST NAME
EMAIL ADDRESS
SUBMIT
Comments
Read below or Add a comment
Tang
August 10, 2016
Hi there,
I am a corporate banking summer intern in NYC. I am mostly working on the credit memos and Enterprise
value model. I think the most relevent task relevant to IB is the EV model because I have to do DCF and
comps.
However, this EV model is considered to be unncessary for corporate banking because it is required by
the regulators. And the model is not as complicated and accurate as the real models in IB.
My question is: should I put down my EV experiecence in my resume to break into IB? IB people may think
my EV models arent as good as theirs
REPLY
John
March 6, 2016
In addition to what people have been asking above, it seems that your replies in the comments
contradict what the interviewee is saying above. She says corporate bankers can target the same exit
opportunities as those in IB. Yet you guys say that it is not common for corporate bankers to move to
PE?? Which is it??
Also, how difcult would it be to transition from corporate banking to IB full time? Thanks in advance!
REPLY
Shares
1. M&I - Brian
March 12, 2016
I think the interviewee meant that corporate bankers target *some* of the same exit
opportunities as those in IB. For example, mezzanine funds and credit/distressed funds might be open
to both. Traditional PE would be tougher, as would certain type of hedge funds. I denitely dont think
its common for corporate bankers to move directly into PE most who do that go into IB rst. Its not
that difcult a transition to make if you target LevFin or other highly relevant groups.
REPLY
1. John
March 15, 2016
thanks brian! would you happen to know whether its common for people, who transfer into
IB/LevFin after a couple years in another job/division (such as corp. banking) to still have
opportunities to go to PE as an associate? or would PE rms generally think that it would be too late
since they normally want to poach rst year IB analysts?
REPLY
3.
Ejiro Edeki
February 7, 2016
Many thanks for the post. As an aspiring product sales manager in a bank, I enjoyed and learned
so much from the post and the rich variety of comments.
REPLY
1. M&I - Nicole
February 7, 2016
Youre welcome!
REPLY
Allen
October 29, 2015
Hi,
I have a second round interview in corporate banking in a couple days, and I am told it will be a case
whereby Ill be assessing the creditworthiness of a company. Any recommendations on how to prep for
this. Also, do you know of any websites that have cases out there I could use for practice?
REPLY
1. M&I - Brian
Shares
November 1, 2015
We dont have any case studies on that specic topic, but some of our LBO modeling tutorials
in our courses and YouTube channel might be relevant. Generally, you have to look at the companys
credit stats and ratios under different scenarios, see how they change from best case to worst case,
and then factor in the qualitative points to come up with a recommendation.
REPLY
1. Allen
November 1, 2015
Richie
August 18, 2015
Hi M&I, I would like to know what are the prospects of a Corporate Banking VP moving onto a
Investment Banking role (DCM/M&A). Thank you in advance.
REPLY
1. M&I - Nicole
August 20, 2015
I think this can be challenging unless you have corporate clients who want to do IPOs/deals
you can bring to your IB role, especially at your level.
REPLY
Coverage
June 15, 2015
Thanks
REPLY
7.
Red Viper
March 9, 2015
banking?
REPLY
Jesse
January 2, 2015
In the end-goal of trying to break into Investment Banking, how would you rank the following
1. M&I - Nicole
January 2, 2015
Id say: b, a, c. It really depends on the role and your responsibility at the rm though so it can
be hard to say.
REPLY
9.
Rob
December 25, 2014
I started in commercial banking with a BB, and had another offer from a difft BB. Both offers
were 60k, with a bonus +/- of 5k. I was there a year and a half, and switched to corporate banking at a
super regional as a Sr. Analyst. Base is 75k with a +/- of 12.5k for bonus.
At the two BBs, I have rst hand knowledge ofone, had corporate banking inclusive with the investment
bank and base salaries were equal at the 70-80-90 progression. Bonuses were much better than
commercial, at like 75% of what IB was. The other BB I had an offer for, had their corporate banking
seperate from IB and their base was 65. with a progression of 65-70-75. Their bonuses were also not
much larger than commercial with a +/- of 7.5.
REPLY
1. M&I - Nicole
December 26, 2014
Andres
November 17, 2014
Shares
Hi rst year bachelors student looking at applying internships in various industries, interested in
PE or possibly HF in the long run, just to clarify are possible/frequent exit opps for corporate bankers
PE/HF(credit/distressed funds?)?
REPLY
Jason
Hey Brian,
Great article as usual. Corp Banking seems an interesting career so for someone applying usually they
get asked why CB over IB or S&T or even consulting since I got asked. Pretty sure there are obviously
many answers but I like Brian your thoughts about this considering the way you structure it. Anything you
can share on how to tackle this kind of question in an interview.
Thanks again
REPLY
DP
June 14, 2014
Does anyone know which banks have corporate banking housed under the same umbrella as IB
vs. those who keep it separate. I have a feeling it denitely plays a role in overall compensation, from
what I have seen in speaking with recruiters some CB roles are paying 60/70/80 vs 65/75/85 and nally
the traditional base which mirrors IB (70/80/90) for the analyst years. I am wondering if this depends on
the org chart and how the CB division rolls up or more of a case of some banks underpaying.
REPLY
1. M&I - Nicole
June 15, 2014
Justin
May 9, 2014
Another great article thanks for this. Quick question do you know of any resources where I
could nd the models for a Term Loan or a Revolver? I am not even sure what to search for in terms of
terminology to get a correct search result in google. Any help would be appreciated as I am moving into a
hybrid corporate banking/syndicated nance position shortly.
Thanks again!
REPLY
Shares
James
March 2, 2014
I recently accepted an offer for a Summer Analyst Role at a BB for Corporate Banking, I really
want to try IB. How can I leverage my current potions to land me a spot w/ the IB analyst class next
1. M&I - Nicole
March 5, 2014
Id network a lot within the BB, especially with people in IB. Make sure you do a stellar job so
people remember you and your chances of securing an IB offer at the bank is higher
REPLY
15.
Enrique Flores
February 15, 2014
1. M&I - Nicole
February 15, 2014
CB
February 7, 2014
Is there any chance that after a Summer in CB I land a FT offer in IB at the same bank ? Many
thanks
REPLY
1. M&I - Nicole
February 7, 2014
Yes there is. Network internally and perform well in your role.
REPLY
Shares
1. CB
Thank you for your reply. I was wondering : when to ask and to who ? (CB HR, IB HR, IB
Senior)
REPLY
1. M&I - Nicole
February 11, 2014
Id go for seniors at the IB rst. You can do so via cold email and LinkedIn.
REPLY
Paul
January 26, 2014
Hi Brian,
I was just wondering: in order to secure a summer internship in IB at a BB, is it better to have a rst
experience in IB at a 2nd-tier bank such as HSBC or in Corporate Banking at a BB. Both being in the UK.
Thanks a lot
REPLY
1. M&I - Brian
January 26, 2014
Not much of a difference, but direct IB experience even at a lesser-ranked bank is probably
best.
REPLY
18.
Cbankers
December 8, 2013
What type of questions can one expect for an analyst position? I dont have any experience in ibanking or
corp banking.
Thanks,
REPLY
1. M&I - Nicole
December 8, 2013
http://www.mergersandinquisitions.com/investment-banking-interview-questions/
REPLY
Shares
19.
Dubya
September 20, 2013
I am currently working as an analyst for a risk and portfolio management group for a large
European bank in NYC Wanted to know if there is a possibility for me to break into private equity after
working here for a year or so.
Thanks.
REPLY
1. M&I - Nicole
September 21, 2013
20.
E
September 12, 2013
Hello,
This was great and appealing; I appreciate the hard work displayed by this blog!
I am about to graduate from my university, and am currently working at a large bank on the retail side. I
have applied to a Corporate Banking position at this same bank.
After reading this post I believe I answered my own question; however Am I right in assuming that
CorpBanking is much more of a sales and relationship based position? If so that would denitely help in
telling my story!
REPLY
1. E
September 19, 2013
Any update?
REPLY
1. M&I - Nicole
September 20, 2013
I wouldnt say so because youd be doing credit and debt analyses which can be relatively
technical. Your hours are better so you may work less, which means you may do model a bit less
given your hours.
REPLY
Shares
2. Dub
Hi Nicole. I respectfully disagree. At the lower level of corporate banking it is more about
knowing and being able to understand and risk company nancials and how it sits with a particular
deal. But as you go higher, it becomes more about sales and you have people below crunching the
numbers. A good corporate banker (relationship manager) will need to be a numbers person, but
that can be taught, you cant teach someone to be a good deal acquirier (ie, sales person) and be
able to talk to C-level executives with ease. If you can source new deals then you are very valuable
as a corporate banker
REPLY
1. M&I - Nicole
May 14, 2014
HB
August 25, 2013
Hi,
Corporate Banking for the last few months has seemed really appealing to me and I think it is where I like
to head into. I have an assessment centre lined up for LDN with a BB in Europe for a summer analyst
position in the next month or so, but I dont want to risk having only one shot at it.
Could you possibly advise on some of the major players in CB that I should look to apply to?
As far as I can tell, JPM dont have the area open to undergrads in EMEA..
REPLY
1. M&I - Brian
August 29, 2013
I believe it is mostly the large commercial banks that have solid CB teams because you need a strong
balance sheet to do it (see the pitch books and other links above). Readers may be able to better
advise you on the specic rms.
REPLY
CB
July 29, 2013
REPLY
1. Vp
August 5, 2013
Fundamental skills are pretty much the same, most obvious difference is of size, (say 50MM
in commercial vs. $500MM in corporate), and arguably corporate banking is more closely tied with
The_Sideline_Story
July 26, 2013
Thanks, Nicole.
REPLY
The_Sideline_Story
July 9, 2013
What keywords should I use when looking for this role on a job search board? Especially at an
entry level? Corporate Banking seems to bring up all things in the corporate bank from an AVP of wealth
management to a data scientist.
REPLY
M&I - Nicole
July 9, 2013
Perhaps you can type in leveraged nance and corporate banking instead something like
http://jobs.enancialcareers.hk/job-4000000001211210.htm should pop up
REPLY
25.
HarlemShake
May 28, 2013
Hello,
SharesI
just wanted to gain some more clarity around exit opps. Luis has mentioned CB analysts typical go for
the same opportunities as those from M&A, or LevFin. Ceteris paribus, are CB candidates at a
disadvantage when it comes to equity research, Long/Short, Activist HF?
Also, Id imagine its a tough sales pitch to lateral to a more traditional IB analyst position, are there any
particular skills IB (M&A or coverage group) value from CB candidates?
1. M&I - Nicole
Yes, credit analysis, any transactional models, possibly some valuation skills you learn, and
just the entire process of marketing a deal to investors.
REPLY
26.
Darryl
May 15, 2013
Amazing post. Sometimes its so hard to describe the structure and nature of my work to
someone who is not in the eld. This sums it up even for someone who might not know anything about
banking.
REPLY
1. M&I - Nicole
May 16, 2013
27.
Lloyd
March 11, 2013
1) Do most of the corporate bankers move to Leveraged Finance after a few years? Since Leveraged
Finance is more modeling-intensive than CB, how can they prepare for it?
2) What are the comps like for senior corporate bankers? (VP/Executive Directors) Is that based on base
salary + bonus just like IB?
Thanks
REPLY
1. M&I - Nicole
March 11, 2013
Shares
1. Im not quite sure if most corporate bankers move to leveraged nance, though I believe a
few do. Please refer to http://www.mergersandinquisitions.com/leveraged-nance/
2. I believe IBs salaries are more than that in corporate banking, though I dont have the numbers on
hand.
REPLY
1. Anl
April 20, 2013
1. M&I - Nicole
April 20, 2013
Thanks for clarifying, though I still think IB bonus/perks may be slightly different (I may
be wrong).
REPLY
1. Darryl
May 16, 2013
In my experience (especially someone who does NOT have an MBA but seems to
always take jobs marketed for Sr. Execs or fresh MBA grads).pay varies from rm to rm,
big and small, etc. Its all how you market yourself. There is no industry norm, high producers
and goal achievers will make money while those who are still learning or are comfortable in
their positions without growth vision will get paid less. Its like any other sector but with a lot
more money involved. Pay for performance; but in a lot of cases experience combined with
young age goes a long way if you can show your about business. Someone who works at a
large rm can make a ton of money but at the same time a small rm with 20 years less
experience can make the same salary as long as they have experience and prove themselves.
Its much easier to get the big titles in a smaller rm than a large rm especially for folks who
come from big banks. Just get title and go back into the large bank arena. Its a game we all
must master if we want to become successful. Corporate and IB divisions can be on the same
compensation level. It depends on individual. And a lot of times at the end of the day
banking is banking, especially in the syndicated loan market. If you cant make it past a certain
Shares
point, no matter what type of bank you work forconsider a career change or accept the fact
people MUCH younger and less experienced than you will be your boss and have a larger bank
account :)
2. M&I - Nicole
2. AJ
Any hints as to what BB youre at? I will be starting at Citi CB FT and want to get a feel for
bonus.
REPLY
28.
Romini
December 9, 2012
Brian, Since i also belong to Investment Banking (M & A) with a year of experience like the
interviewee, can you suggest me some good points to mention when a question arises in Corporate
Banking interview as to why would i want to switch from IB to CB?
1)what transferable skills should i mention?
2) Why now?
Also are the technical questions in the Interview guide relevant for preparing for CB interviews? what
areas should be concentrated on keeping CB in mind?
REPLY
1. M&I - Brian
March 9, 2014
The LBO and debt-related questions will be most relevant for CB interviews.
REPLY
Vp
November 18, 2012
https://www.lcdcomps.com/d/pdf/LoanMarketguide.pdf
REPLY
1. M&I - Brian
Thanks! Sorry about the comment issue, we automatically block any comments with links due
30.
Z
November 17, 2012
Excellent post and Im delighted that corporate banking is given recognition here in M&I.
Ill like to share my experience on corporate banking; more specically, coming from someone working for
a multinational bank in Singapore. Corporate bankers (a.k.a relationship managers or coverage bankers),
are the rst point of contact for our corporate clients. Clients that we deal with are normally broken down
into three categories:
i) Top-tier local corporations These refer to government-linked entities or local conglomerates.
ii) Multinationals Fortune 500 companies with subsidiaries operating outside of their home countries.
iii) Financial institutions Banks, insurance companies and mutual/hedge funds.
Corporate bankers deal with all things credit, as our interviewee has shared in the article. But more than
that, they are also always involved in cross-selling the other products/services of the bank. Their
performance is determined by how much their portfolio of clients has grown by, normally in terms of
absolute revenue and risk-adjusted relationship return (Basel concept), on a year-on-year basis.
Hence, a corporate banker works very closely with almost every single department in the bank, from
operations to trade nance, cash management, IBD teams, etc. Its imperative that a corporate banker has
excellent credit analysis skills and working knowledge on every product/service offered by the bank.
What Ive shared on corporate banking is commonly found in large, multinational banks. Smaller banks
might have a different set-up. I do believe such a set-up is found in other Southeast Asian countries and in
Hong Kong, but do correct me if Im wrong.
REPLY
1. M&I - Brian
November 17, 2012
Thanks for adding that, very interesting to read about what CB is like in other regions.
REPLY
1. Vp
November 18, 2012
The above is very true for North America as well, Having worked in three banks (in
Shares
Corporate Banking or lending to corporates (large companies) in itself is not a very protable
business (infact in this low interest environment), its no secret that banks are making losses on
these accounts. but when the same client gives you their M&A mandate, debt/equity issuance,
dreivatives business, then the overall corporate account begins to look a lot better from a P&L
perspective. There is an excellent S&P primer on how the loan markets in US has evolved
https://www.lcdcomps.com/d/pdf/LoanMarketguide.pdf
Look at my comments under Vp made at following link:
http://www.mergersandinquisitions.com/why-investment-banking-deals-fail/
Cheers!
REPLY
1. M&I - Brian
November 18, 2012
31.
Nick
November 15, 2012
Excellent post. I am glad to nally see an article about CB as I have decided to pursue that role
out of undergrad instead of IB as you are still developing modeling/nancial statement analysis skills but
without having to work IBD hours and spending half your time doing pitch book revisions.
I was wondering what are the best ways to break in out of undergrad? I attend a top20 school with a top5
undergraduate business program but have not seen any CB postings from JPM, Citi, WF. There were some
posting for BAML but it was for commercial banking and not corporate.
REPLY
1. M&I - Brian
November 15, 2012
Thanks! Out of undergrad, your best option is to get an internship in a DCM or LevFin or related group
at a bank and/or at a credit rating agency so you get the skill set theyre looking for or just get an
internship directly in corporate banking. I think many of the large banks will focus on lateral hiring here,
so you might need full-time experience in a related eld rst, which is why they dont openly advertise
positions.
REPLY
2. LTCM
November 16, 2012
Shares
As Brian said, credit internships help, but I found any general nance internship gets your foot in the
door.
REPLY
3. Jim
Hi. This is probably outdated, but I recently read these comments. Wanted to advise that
BAMLs commercial banking division is pretty much what most banks would consider corporate
banking ($50MM-5B, mostly in the mid-hundred $MMs). The corporate banking divisions credit is run
out of risk management, where analysts/associates are far less involved in calls, prospecting, etc than
the commercial bank.
REPLY
1. M&I - Nicole
March 24, 2014
32.
KL
November 14, 2012
So what are the typical entrance requirements(school, GPA, major), as well as other potential
stepping stone careers (ie. public accounting) to enter corporate banking?
REPLY
1. DonDiego
November 15, 2012
I work in CB in a non-nancial hub. My analyst class was split about 50/50 of those fresh out
of school and those with real experience. Many analysts were currently in the process of obtaining
graduate degrees (almost all MBAs) and a few with post-grad accounting degrees. GPAs from what I
have seen/heard need to be about 3.2 from a reputable (but not ivy school)though some were with
most being nance/econ/accounting. I actually attended a small, not so great state school, but made
up for it with some ok experience (2.5 years), seasoned interview techniques, and I am in the process
of completing a MBA at a mid-tier school. However, being in school (part-time) was not looked well
upon by some MDs as our training was approx 60-70 hours a week for a few months. But I showed
them by scoring at or close to the top of our analyst class.
As for comp, the salaries noted about are about right. Adjusted for cost of living and working in
NYC,we would be in about the middle of what Russ stated for CB. Bonus structure has yet to be seen
reasons could be discussed later if M&I is interested.
As for work hours, I personally, work longer than most other analysts here. Im usually in around 630-7
Shares
1. M&I - Brian
November 15, 2012
Thanks for adding that, very helpful to get another perspective on corporate banking.
REPLY
2. M&I - Nicole
November 16, 2012
3. Dub
May 13, 2014
I concur with above. I have worked in corporate banking (often called Relationship
Management) in Asia, Asia Pacic and Australia. You are the touch point for the clients and are like
a spoke in a wheel where you get other areas of the bank (ie, markets, treasury, trade, transactional,
DCM) to assist with deal execution. The corporate banker is usually the one that goes out and nds
the deals (along with the syndication team). At the corporate/commerical/business level (as per
below) the Relationship Manager is almost solely responsible for getting business through the door
(ie, lunches, business groups, referrals, networking)
Relationship managers operate in several levels of deal and client size. It can broken into several
divisions:as below (Australia/Asia)
i) Institutional (+US$500m turnover)
ii) Corporate (+$100m turnover)
iii) Commercial (turnover up to $100m, lending maxed at $20m)
iii) Business (Lending below $1m)
Bonuses where I worked were maxed at 80% of base if performance was 200% of target (KPIs
usually: revenue earned, net promotor score (NPS), +anything specic the bank wants to focus on
ie: assets (debt) or liabilities (deposits).
The bonus are not nearly as good as per IB, Leverage Finance, Project Finance or Markets (FX, IRS,
Commodities) where I found bonuses were relatively uncapped.
REPLY
33.
Russ
November 14, 2012
This is the salary scale Ive seen from my experience, friends and declined job offers.
iBanking: 60-80
SharesCorp
Banking: 50-70
iBanking: 30-60
Corp Banking: 5-20
1. M&I - Brian
November 14, 2012
Thanks for adding that. I am assuming that the interviewee was referring to base salaries as
opposed to all-in compensation above.
REPLY
2. D
November 14, 2012
I can more or less vouch for these numbers they seem very similar to what Ive seen from
experience/friends/offers. Ive never seen a CB base of $50k though always thought it was 60-80.
REPLY
3. JP
November 16, 2012
I worked in corporate banking at one of the big Canadian banks in Toronto, compensation was
90K-100K base with bonus 25-60% of base for 1st year associates (experienced hires or MBAs)
REPLY
1. Vp
November 18, 2012
Concur!
REPLY
4. JobSeeker
November 3, 2015
1. M&I - Brian
November 8, 2015
My guess is that the numbers are slightly higher now because the comment above was
posted a few years ago (2013). I believe there are back/middle-ofce roles associated with
corporate banking, yes.
REPLY
34.
Stoplying
November 14, 2012
comp is not similar to ibankers. i know this because i worked at citi with we all sat together (corp
banking and ibanking). can you be more specic with comp?
REPLY
1. M&I - Brian
November 14, 2012
35.
Couchy
November 14, 2012
1. M&I - Brian
November 14, 2012
36.
Dre
November 13, 2012
article stated that several people have transitioned from working at credit rating agencies to
corporate banking.My group has a couple of more senior staff members who came in from the various
credit rating agencies.
Ive been taking credit training classes at a top credit rating agency (i.e. Moodys), however Ive been
unable to get any corporate banking interviews or offers.
What is your suggestion on using this experience to get into Corporate Banking?
REPLY
1. M&I - Brian
November 14, 2012
1. Dre
November 14, 2012
However, I see a lot of job descriptions that ask for training (i.e. Formal Credit training).
Im going to complete a training class, titled: Credit risk modeling which covers credit scoring, credit
bureaus, credit ratings, rating agencies, Basel, etc. Will this course be sufcient enough for getting
into Risk Management or Portfolio Management?.Depending on the bank, a risk management
or portfolio management group can be responsible for reviewing credit ratings and analyzing the
creditworthiness of companies. In such a setup, a team will be tasked with assembling credit
memos and managing the modeling aspect.
REPLY
1. M&I - Brian
November 15, 2012
Yes, they might ask for that training but ultimately they still want to see solid work
experience. I cant speak to risk management or portfolio management, but maybe ask on
2. Vp
November 18, 2012
Your background sounds like bang on with what corporate bankers do..and credit rating
agency background is highly favorable.
Try to get some experience..assuming if its all training, add a spin to this training classes on ur
resume..Finally, this will get you an just interview. What will get you the job is very similiar to what
Brian tells you for IB interviews-
Shares
ANT
Sounds like a syndicate loan banker to me; corporate bankers dont only sell loans or capital
structure but also liquidity management, supply chain nancing and risk management.
REPLY
1. M&I - Brian
November 13, 2012
Ok. Feel free to contribute an interview if youve worked in corporate banking and would like to
share your experiences. This one was from Luis, so Im not sure of the specics of the interviewees
background.
REPLY
38.
D
November 13, 2012
1. M&I - Brian
November 13, 2012
Thanks for the value-added comment there (sarcasm aside, thanks for pointing that out and
just corrected it)
REPLY
1/1
Leave a Reply
Your email address will not be published. Required elds are marked *
Comment
Shares
Name *
Email *
Website
POST COMMENT
GET STARTED
ARTICLES
VIDEOS
COACHING
CASE STUDIES
FAQ
BEST OF
Privacy Policy
Disclaimer
DMCA Policy
Shares
Shares
Shares
Shares
Shares