Financial Careers

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.
Thats why, at Deutsche Bank, youll be given the opportunity to realize your greatest ambitions.
As one of the worlds leading nancial 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 nancial 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 ofce careers ................................................................................. 72
IT in nance
Information technology ...................................................................... 74
IT careers .......................................................................................................... 76
Employers
Employer proles ..................................................................................... 78
Partner proles ............................................................................................ 88
Like this book? Youll love the
website. Our Student Centre is
the place to go for the inside
track on getting your rst job
in nance. Check regularly for new
features and updates at
www.students.enancialcareers.co.uk
Whats 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
whove 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: proles 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 wont 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 rst with our online tests.
Careers in Financial Markets
is published by eFinancialCareers Ltd - www.enancialcareers.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@enancialcareers.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 nancial services, and provides an introduction to the
careers on offer and different sectors. As well as information on front-ofce
roles, we have sections on IT in nance and opportunities for accountants.
On the website you will nd the latest news on graduate hiring and vacancies,
tips from senior industry gures, advice on internships and getting a job from
those whove been through the process, plus the chance to discuss whats
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 nance.
How to use this guide
Sarah Butcher
Editor
eFinancialCareers.com
Student
Centre
Good luck in your job search,
Sarah Butcher
Want to work in an investment bank? Youll need to
ght 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, theres no guarantee
youll 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 buttery:
youll have to put in time as a hardworking grub (analyst/
associate) before you can metamorphose into a beautiful
winged creature (managing director). Theres a constant
risk of being squished if unsuccessful and throughout
your life youre 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 dont 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 ring
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, theyre 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 rst 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 its
just the nature of the beast. Theres no doubt that were
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 rm Cornell Partnership.
Banking is cyclical. Its 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 rm 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 youre 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 Europes 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.
Its my first year on the graduate programme and
Im being trusted to handle a two billion dollar
trade. Thats the difference.
Our numbers tell an incredible story of growth and global expansion. Weve
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 dont manage to get an offer from an investment
bank, an ACA (accounting qualication) can also
be a good safety net and allow you to move into banking
later on. Naidu tells of one candidate who couldnt
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
nancial services are all about riding the cycle,
says Naidu. If you can stay on the board throughout,
youll do well. And if you fall off, youll need to get
back on quickly.
Hot sectors
Bearing in mind the roller-coaster nature of the
investment banking industry, its worth giving some
thought to where you want to work. Fixed income?
Equities? Corporate nance? Choose carefully. You
are not just selecting a job; youre positioning yourself
in the nancial 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, theyre very hot.
But when M&A deals
stop happening,
these bankers are
often among the
rst to be shown
the door. In 2007, however, M&A bankers were
sitting pretty. In the rst 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 ow 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 nancial
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 whove 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
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, youll 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 nance, analysts are number crunchers who
put together pitchbooks (research to help banks win
bids) and analyse a companys nancial products.
In sales, analysts telephone relatively unimportant
clients on non-crucial matters. On the trading oor,
analysts cant trade until theyve 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 dont 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. Youll 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
Youve 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 youre 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 rst 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, its less
noticeable in sales and trading divisions where you work
on your own to make money. If youre 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. Its 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 youre 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.
Recent graduates who join investment banks are called
analysts. If you want one of these jobs youll 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. Thats 9,000 candidates
for the 150 or so places on the average banks 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 dont meet the grade, you wont
get any further than this. Most trainees come from
the best universities.
However, even if youre on track for a rst, 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
heavens sake put the right banks 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 rm 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 ofces 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 rst 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 rst round is all about ensuring youre 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 wont want people wholl just answer
in parrot fashion. We want people who will really listen
to what the interviewer is asking and digest that
information, says JPMorgans Oxenbury.
Its 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 rst 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 youre 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 tomorrows
financial headlines.
All in a days
work.
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Lehman Brothers is an equal opportunity employer. The Firm and its afliates 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 afliate of Lehman Brothers Holdings Inc.
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ITS NOT $Y
BUT IT IS WORTHIT.
The second interview is a series of interviews with senior
bankers, which normally take place at the banks head
ofce 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 xed-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 nal 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 rst 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 rst objective and a good spellchecker is the rst 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
banks Natural Resources Advisory Group.
How did you go about applying to JPMorgan?
The rst thing I did was go to LSEs careers ofce 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 lled in the online application form and took a numerical test
and a couple of weeks later I was invited to a rst round of three
competency-based interviews, during which I was asked about
my motivation and skills. I found the numerical tests difcult at
rst, 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 difcult
and so I was denitely 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 dont expect you to know everything, but if you can show
you are reading the nancial press and are able to talk about
some of the deals going on it all helps.
Prole
Nathalie Casali
Analyst, Natural Resources Advisory Group
JPMorgan
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Nathalies 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 sacri 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
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.
Supercially, 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 nancial 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 rst 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?
Its worth noting, too, that for most banks the cut-off for
applications to their graduate programmes is the end of
January. But dont 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 nding out
the difference between a put and a call option,
its 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 its an advantage, with trainees beneting
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 qualications 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 programmes 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
worlds 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 worlds 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 worlds leading experts,
enthuses Goldman Sachs Jones.
So, if youre learning, say, how to value equity derivatives,
dont be surprised to nd the head of equity derivatives
standing in front of you and presenting the models. And
if its 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 xed-income sales? Is that selling
high-yield bonds or government debt? You probably
dont 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 xed-income division to do four
six-month rotations over a two-year period. Lehman
allows trainees in its xed income and equities division
to undertake a few three-week rotations before settling.
Buddies and mentors
Finally, ask if the bank youre 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 signicant 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 dont 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
oor 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 specically to this desk; the training programme
was essentially a 10-week classroom-based crash course
in nance, 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 days 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 oor.
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..
Prole
Ryan Hearity
Analyst
Dresdner Kleinwort
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Ryans tips:
Have a good idea of why you want to
do the job. You dont have to know
everything, but you do need to understand
that sales is di 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
whats being o ered. A programme of one
or two weeks, for instance, may not have
much depth to it.
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 rst-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 nal 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, theres the pay. Its 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, theres the training: interns do many
of the same tasks graduate trainees do on a daily
basis. Most importantly, for those who are successful,
theres 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 denitely 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 gure is even
higher. Bank of America, for instance, estimates that
it plans to ll 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 erce. 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 youre one of the fortunate few to be selected as
an intern, rest assured you wont 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 whos 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 efciency of back-ofce processes.
Internships
A vital part of banks graduate selection
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An internship is denitely 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. Were 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 rst thing to be said here is, try, try, try not to.
Investment banking is a ercely 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 havent managed to
secure an internship, dont 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 youve 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 denitely 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 Merrills 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 nd 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 nish 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 nance
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 its 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 its 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.
Prole
Rodney Appiah
Analyst
Merrill Lynch
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Rodneys tips:
Demonstrate a passion for the job,
hopefully one that is natural!
Try to 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, youre doing well.
Enjoy it. Take full advantage of the
opportunities on o er and ask as many
questions as you can.
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, were focused on finding those individuals who can take a wider look
at business. Were 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
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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 rms. 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 rst 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 rst quarter of 2007 more
than France and Italy combined. However, announced
doesnt necessarily mean completed, and while the
rst three months of 2007 saw some impressive deals
announced in the UK such as the 10bn offer by
CVC Capital Partners for Sainsburys 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 rm 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 banks ideas for a particular transaction. Analysts in
M&A usually conduct basic research for the pitchbook
and build the nancial 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 nancial 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
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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
>
An opporrunlry
ro shlne
The Macquarie Group is a diversied
international provider of specialist investment,
advisory and nancial services, with over
10,000 employees in 24 countries across
Europe, Asia, the Middle East, the Americas,
Africa and Australasia. Macquarie has reported
15 successive years of record prots and
growth, including the signicant expansion of
our European activities.
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 dynamic
environment where your contribution is valued
from day one.
A breadth of graduate opportunities exist
in Macquaries growing businesses in both
Europe and the UAE.
lor more lnformarlon, and ro apply, please vlslr our webslre:
www.macquarle.comJeu
Mcrgan Stanley is an equal cppcrtunity/affrmative acticn emplcyer ccmmitted tc wcrkfcrce diversity. (M/F/D/\) 2007 Mcrgan Stanley
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Connect with opportunities worldwide
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-gure sums.
However, its 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 nance 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: Youll need a lot of analytical skills, as a
signicant 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, youll 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 youll need a different skillset: You need the
communication skills and self-condence 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 nancials, identify M&A
opportunities for them and support them through the entire
M&A process. We spend a signicant 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 rst 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 nalising
presentations to clients.
After lunch the US wakes up, so the work level intensies.
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 its 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 dont need to
come from a quantitative background. What is important is that
you can learn quickly and are driven to learn independently.
Prole
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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Marians 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.
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 banks 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
Id 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.
Its 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
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Capital markets are where traded nancial products
are born. Working on the factory oor of the nancial
markets, these er blue collar bankers produce
nancial 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 xed-cash sum, bonds are known as xed-income
products. Similarly, the bond markets can be known as
the xed-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 oating 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 LSEs 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 worlds leading nancial centre largely
due to stringent regulations such as the Sarbanes Oxley
Act, which deterred companies from listing on American
stock exchanges. By comparison, Londons 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.
If you work in the capital markets division, you could
nd yourself doing anything from originating (bringing
in business), to structuring (assembling complex
derivatives products) or syndicating (preparing for
the sale of nished products to investors).
Origination specialists are usually senior capital
markets bankers. Its a job that involves a lot of travel:
originators spend their time meeting clients in an effort
to gain insight into their nancing 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 oor
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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
nancing focused business that provides taiIored nanciaI soIutions to major government,
corporate and institutionaI cIients in more than 60 countries and territories worIdwide.
We recruit graduates into Corporate Banking, Investment Banking, GIobaI Markets,
Pesearch, Infrastructure (Operations, Finance, CompIiance and Credit Pisk Management).
We aIso recruit into HSBC Amanah (IsIamic Finance), Private Banking
and HSBC Investments.
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*
Canadas largest financial
institution as measured by market
capitalisation and assets
RBC Capital Markets
One of the worlds 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
*Moodys Aaa, Standard & Poors AA -
Bloomberg
At RBC Capital Markets, we wont leave you feeling like youre 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 youll need to contribute fully to our global
successes. Its not unknown to have Vice-President on your door while
youre 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 youll be heading for a challenging, demanding
and rewarding role in one of the worlds leading international corporate
investment banks. Youll 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 youre interested in one
of our summer internships for undergraduates, please visit
www.rbccm.com/careers
time creating esoteric nancial products that suit
a companys nancing needs, as communicated by
the originators. Its 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 arent 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 nancial 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 nancial 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 Shefeld Haworth
and former director of equity capital markets at Socit
Gnrale, agrees: Youll need to be deal oriented, to
know how markets work and to understand why a deal
can or cant 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?
Ive been dealing mostly with a presentation for one of our clients,
which has involved a lot of researching and number crunching.
Its a shareholder targeting piece so Im 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 signicant events which we
should be informing our clients of. Ill try and speak to a few of
our traders later if it looks like there has been some signicant
trading activity in any of our clients stocks its 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 nance-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.
Whats 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 condently.
Prole
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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Catherines tips:
Try and get some hands-on experience,
otherwise youll 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
whos showing interest and potential.
RWE Trading More than energy
What links speculative trading with capital investments, the political climate
in the Middle East with emerging economies in Asia, and the temperature in
Germany with the time of day in the UK? Simple. Energy Trading
www.rwe.com
Since competitive energy markets emerged in Europe in the late 1990s,
RWE Trading has become a driving force behind energy trading.
The professional calm that pervades results from three underlying
factors: our people, our successful business model and our market
positioning.
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 nancial 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 inuence 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
nurture your true potential. We are seeking talented people within
every area of our business. If you want to make a difference in the
markets of the future, RWE Trading wants to hear from you.
Send your CV and covering letter to trading.jobs.trading@rwe.com
Youre 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-red
power generation in Europe have caused signi cant increases in
ocean freight rates and coal export prices. RWE Trading is already
a signicant player in the physical coal and freight trading markets,
the value of these activities is enhanced by our active involvement
in coal and freight nancial derivatives.
Environmental Trading
RWE Trading is a strong supporter of the Euro pean Emissions
Trading Scheme. Trading CO
2
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 nancial 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 inuenced 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.
Its 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 Tradings 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
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The aim of the secondary markets is to buy and sell
used nancial products to make a prot or at least
to avoid a loss. This compares to the primary market,
where institutions issue new nancial products to raise
money. Every day, millions of nancial 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
oor. The screens are a window onto the nancial
markets and show movements in the prices of shares,
bonds, commodities and other nancial products.
At the touch of a button, traders can buy and sell
the products theyre 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 nancial products which they pass on
to ow 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 specically to full
clients needs rather than simply selling bog-standard
equities or bonds. At the same time, banks have begun
beeng up with people who can sell products into hedge
funds hedge funds trade more frequently, so
theres 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 rst-quarter 2007 prots 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 dont 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 xed 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 rst
quarter 2007 revenues came from trading activities.
There are two fundamental types of trader:
proprietary traders and ow traders. Most traders are
ow traders they buy and sell nancial products on
behalf of the banks clients. Sales people tell ow
traders what clients want to buy and sell; ow 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 prots 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 sidebyside
with thought leaders on pro|ects oI breathtaking scope
and complexity. Join us and you can also benet Irom a
perIormancebased culture oI excellence, where respect
Ior the individual, commitment to breakthrough, bigpicture
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 gures 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 uency 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 its 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.
Director 90 490
Associate 65 85
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Title Salary Bonus
Andreas joined Bank of Americas graduate programme in June
last year after completing an MSc in economics and nance 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.
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 nding and
analysing information by following the news being published,
talking to brokers and so on.
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 nance?
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 condent enough to make fast
decisions based on this analysis. Numeric skills and an
understanding of the economy as a whole are also important.
Prole
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.
Get the latest on internships & grad programmes
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In the world of nance, 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 thats 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 theres 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, its argued
that the value of the yen has been kept articially 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 ve top players (Citi) originated in Europe.
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 whats 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 wont 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 condent, 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
Director 110 400
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
Europes 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 borrowers 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
Banks 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 Banks 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 Unions financial institution, based
in Luxembourg offers the opportunity to work
for Europe in a truly international environ-
ment. The Banks 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 nance packages to
ensure a company is paid by its foreign customers.
In many cases, theres 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 nancing 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 nance
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.
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. Its 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
banks customers. This is where things get interesting:
as you progress, youll decide whether to lend to
customer X or customer Y. It requires an intimate
understanding of the companys 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 dont fancy the relationship management side of
corporate banking, you could always go into risk/credit,
product, operations or treasury management. Corporate
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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
Crdit Agricole 1,260
Deutsche Bank 1,123
ABN AMRO 984
Socit Gnrale 956
HBOS 877
Banco Santander 800
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Top European banks by assets
Name Total assets (bn)
).$)6)$5!,)./524().+).'
',/"!,)./52/54,//+
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 AN 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.
oth 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
Its not business as usual
Its 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 youll still do quite well and have a life! According
to recruitment rm 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 its no good befriending
clients and lending them money if they cant pay it back.
Equally, its no good being an expert at analysing the
risk of clients defaulting if you cant 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 doesnt
matter if you dont have an economics degree, but
candidates need to make sure they have opinions
about the nancial 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 rms, 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
efcient 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?
Its a bit different because they dont operate in the commercial
sector charities are governed by boards of trustees, which
adds a layer of complexity when youre 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 peoples businesses succeed and feeling
youve contributed to making it happen over a period of time.
The worst is nding that clients have got into difculties through
a change of circumstances thats often beyond their control.
What about the legendary long lunches?
Talking to people, understanding how they operate and whats
important to them is vital. It often helps to do that in a relaxed
atmosphere, so lunches are involved. But if youre going into
the real detail of a companys nances and projections of their
business, this is not best achieved over food!
Prole
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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Corporate banking salaries (k) and bonuses (%) 2007
Title Junior Intermediate Senior
Hughs tips:
Enjoy what you are doing, because if
you dont, you wont perform well.
Be positive.
Go the extra mile dont just provide the
solution youve been asked for, but look at
what the business wants to achieve overall.
Take our online numerical tests
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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 nancial index. A fund that tracks the
FTSE 100 index, for example, will aim to follow the value
of the UKs 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
nancial products in an attempt to outperform the rest
of the market. Active fund managers are what most
peoples ideas of what fund management is: they invest
in products they hope will rise in price, to sell at a prot.
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 Europes money managers;
strong markets saw assets under management rise
for the third year running.
Headline gures 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 ination 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
Europes top fund managers include Swiss-based UBS,
the UKs BGI and Allianz of Germany. Some big US fund
managers, such as Fidelity Investments or State Street
Global, are also active in Europe.
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 dont 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, prots 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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Pay
Traditional fund managers dont make quite as much
as traders working in investment banks, but they
dont do too badly either. Hedge fund managers can
make considerably more than anyone else but
theyre a special case.
Fund manager pay is rising. Research by recruitment
rm 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 nding out what
makes a good or bad investment.
Richard Barry, HR manager at fund management rm
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 rm BlackRock, formerly Merrill Lynch
Investment Managers: In asset management we
generally look for potential passion, ambition and
enthusiasm for our business rather than specic 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 rm 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 clients funds.
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 companys senior management to get a feel for the long-term
strategy of the business, or with sell-side analysts. While at my
desk, Ive 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 nding out what makes companies tick.
There isnt really a worst element, although one thing that separates
us from others in the nancial world is that everything we do is fairly
long term investors are typically looking at three to ve years.
This means you dont 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.
Prole
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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Fund management salaries (k) 2007
Annas 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 dont be
afraid to ask lots of questions.
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Hedge fund managers are the maverick outsiders of
the nancial 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 prot 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 nancial 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 Europes 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,
its 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
lms. 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 Londons hedge fund
assets were managed by rms with less than $1bn under
management, according to HedgeFund Intelligence.
Jobs in hedge funds tend to fall into four categories:
Analysis analysing the companies, markets
and nancial 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 nancial products according
to analysts recommendations;
Risk management and back ofce settling trades,
working out a hedge funds risk exposure and making
sure everything ows 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, its 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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Its 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 youre dealing
with $1.8
trillion
We base our actions on rigorous analysis of data and
the expertise of our people. Theres 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
*
. Its 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 unspecied
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
nancial 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, its 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 Davids 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-ows, and the importance and inuence 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. Theres more
freedom in terms of the products you can invest in and the
positions you can take. And its a much atter hierarchy:
there are 25 people in this ofce and I sit next to two partners.
Whats the most exciting thing youve 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.
Whats been the hardest part for you so far?
Id studied plenty of economics, but not much pure nance
or accounting. It was a bit of a struggle to start with: I spent
the rst month working all hours of the day.
Prole
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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Davids tips:
Get an understanding of what di erent
hedge funds do, not just the generalisations
written about the industry in the press.
Study hard. Its competitive, and a
postgraduate quali 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.
Get ahead: start your job hunt early
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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 prot
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 prot.
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 ve 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 its 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 KKRs $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 nance 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.
People who work in private equity benet from the kind
of job security most investment bankers can only dream
of. But dont count on nding 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 nance),
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 nancier 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 dont get into
private equity almost never
Guy Townsend, Walker Hamill
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Venture capital funds typically hire people from high-
tech industries, nance-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 funds partners
who nd new companies to invest in. They oversee
the deals and make the most money if an investment
is sold at a prot.
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 prots above a specied 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, youll need to be an academic
and professional wunderkind; ideally in the top 10%
to 15% of your peers. And dont think youll be able
to walk-in fresh from graduation.
Raw graduates dont get into private equity, almost
never. After university you need to spend time in
accountancy, M&A, strategy consulting or leveraged
nance, probably around two to three years. Then
you can try to interview for private equity, says
Walker Hamills Guy Townsend.
Private equity rms look for people who are highly
analytical, commercial, team players, condent,
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 nance and
mergers and acquisitions; nancial sponsors (dealing
with private equity rms); or leveraged nance (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 Id 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
companys 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, nancial experience and qualications (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 EurotaxGlasss 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.
Ive also spent time on new deal origination, working on a
range of investment ideas including premium spirits,
sailing clothing, funeral homes and market research.
Whats 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.
Thats never easy if youre letting people down at the last minute.
Prole
Simon Holden
Investment manager
Candover
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Simons tips:
T ere are great jobs in private equity, but
you need to know what youre applying
for and what di erentiates the funds.
Your application needs to show that youve
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 rms. 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 rms 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 benets
to computer systems. Alongside these market leaders
are numerous smaller rms Aon Consulting, Hymans
Robertson and Hewitt Associates, for example.
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 funds 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 rms 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
qualication, either as an actuary or as a chartered
nancial 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 Mercers
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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Median actuarial salaries 2007
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 ling systems for
their core work storing certicates of share ownership
for their clients. Today, these certicates are stored
electronically, making custody much less space-
intensive. Custodians levy a fee (typically up to 0.08%)
of the assets theyre 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.
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 rm 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 its worth sending in your
CV speculatively.
Pay
Global custodians are paid fairly modestly six gures
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 ve years operations or client services
experience in the nancial 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
Socit Gnrale 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 peoples 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 nancial 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 nancial 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 nancial 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 prole 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 youre looking
after someone with 10m, youll still need to be a very
civilised cosmopolitan type who speaks 10 languages
and has great table manners, says one recruiter.
But if youre looking after someone who has 500k,
youll just need to be affable.
Key players
In strict private banking terms, Swiss companies such
as UBS and Credit Suisse are the worlds 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.
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-ofce 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 xed 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 clients 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 dont
nd a place on a graduate training scheme, then
it is possible to move into private banking with a
background in corporate nance 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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Leading global wealth managers 2006
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.
Dont do it lightly.
Take a long hard look at Rothschild:
Top-tier international
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Objective relationship-based
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Excellence in our chosen markets
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Lazard is a premier financial services firm committed to excellence,

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Lazard is a global firm, with a team of over 2,000 individuals operating across 16
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Our intellectual capital is our strongest asset. The superior intellect, enterprise, and
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Please direct all enquiries to The Cornell
Partnership on 0207 959 3124 or at
lazard@cornellpartnership.com
The Cornell Partnership is retained by
Lazard as its entry-level recruitment
advisor for 2007/2008
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 rst move
can be challenging, with few brokerage rms 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
Its 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 condentiality
as key attributes in this sector, argues Sam Anderson, HR
business partner, UK wealth management at RBS.
You dont necessarily need to have a nance-related
degree but a background in law or accountancy can
sometimes help. But you do need good relationship
management skills. We dont 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
specic 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 rst class dining
rooms, so theres no need to go all the way to Monte Carlo!
Its 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 conict.
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 industrys Oscars.
Whats 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.
Prole
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)
Marks 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.
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Go to any campus banking presentation and very quickly
youll come across the words back ofce and front
ofce. When people talk about the back ofce, theyre
talking about operations. Unlike the traders, sales people,
capital markets and corporate nanciers of the front
ofce, people working in operations dont liaise with
customers to generate revenues and prots for the bank.
Instead, the division is a support function operations
professionals support people in the front ofce to make
sure everything works smoothly and the bank gets paid.
The business of operations covers everything from
IT to human resources, accounting (nance) 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 nancial 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 banks 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 protability. Banks are
acutely aware of this and are doing their best to ensure
their back ofces run as efciently as possible.
This isnt 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, theres 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 nding a way of automating
the settlement of complex derivatives trades, many
of which are still settled manually.
Key players
Its harder to quantify key players in operations than
in other sectors all banks have operations divisions
and success isnt 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 xed income respectively in 2006.
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 oor 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 conrmed 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 efcient 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 wont get the gargantuan
bonuses of the front ofce. On the other hand, youll
probably leave before 8pm most nights.
According to recruitment rm 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 McKinleys 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-ofce region of the banks global
portfolio trading support.
It is all about handling the bookings and conrmations for
portfolio equity trades and sorting out any discrepancies or
difculties. As soon as it leaves the desk and the front ofce,
we take it under our wing. We are the centre point after the
trade leaves the oor.
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. Ill 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 isnt 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 rst 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.
Prole
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 %
Ronaks tips:
Try and look at how the role ts into the
whole scheme of things, how it a ects
things downstream and how you might
be able to improve the ow.
Dont be afraid to ask questions. No one
expects you to be able to do the job straight
away, and thats the only way you are ever
going to learn.
Try to get some work experience or get on
a graduate training scheme. Even if its
just temping in an o ce, sell things like
how youve dealt with customer complaints
or handled yourself on the phone.
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Voice of caution or spoilsport? Risk managers act
as a restraining inuence on a banks 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 nancial institutions come in
several forms, including:
Market risk: the risk that a whole group of traded
nancial 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 oods to employee fraud.
Reputational risk: the risk that something will happen
to damage a banks name, such as a high-prole
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 rst 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 nancial 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 dont 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.
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 specic trading transactions
and typically sit on, or close to, the trading oor.
Credit risk specialists scrutinise company balance
sheets and meet company directors in order to
determine the organisations nancial health.
As well as looking at a companys prot and loss
accounts, they analyse how a particular transaction
affects the companys 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 nd 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 banks 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,
its a good idea to join a banks 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-specic 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 oor and their involvement
with complex derivative products. According recruitment
rm Morgan McKinley, a junior risk professional working
on a quantitative nance (read complex derivatives)
team can command over 60% more than his or her
counterpart in basic credit risk.
Skills
Youll need strong mathematical skills and a cool
head, according to Sally Whitman, head of specialist
resourcing at Deutsche Bank. Youll 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
nancial modelling skills. But its 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 rm Shefeld Howarth, says market risk
specialists often have a rst-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 nancial 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 nance 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 rst 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 ofce, where each team will focus on
specic areas and tasks in managing and controlling the banks
risk, the small size of the Sao Paulo ofce means we work as
one team covering all areas of risk relevant to our location. I can
nd 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 exible, 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.
Prole
Jo Farries
Graduate trainee
Dresdner Kleinwort
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Jos 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.
Dont worry if you dont have a maths
or 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.
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If you want to work in compliance, youll 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 nancial market, due for implementation
in November 2007. However, an April 2007 poll by
Handysoft, a business software group, suggested
only four out of 10 rms 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
arent 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 Yorks nancial services
industry suffered as a result, while the City beneted from
the perception that its regulatory regime is less onerous.
Jobs in compliance vary, depending on the area in which
you work. If you opt for money laundering, youll 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 ofcers 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 banks 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 oor. 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-specic 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 dont get on to a banks 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 rm. Alternatively, you could take
a further degree: for example, London Metropolitan
University offers an MSc in nancial 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
Bankings equivalent of the health and safety brigade
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We need people with the condence
to stand up to people in the business
and remind them of their duties.
This can be difcult
David Kemp, ABN AMRO
Pay
The best-paid compliance professionals are those
who sit near the trading oors and advise on the
issues associated with trading particular nancial
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 ofcer 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 youll 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 certicate is the
Investment Management Certicate.
The most important thing when you are at interview
is how to really show your true potential. Having
condence 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 Zo Breadman, managing
consultant, compliance, at recruiter IMS Selection.
Youll need to be intelligent, methodical and not afraid
to speak your mind, David Kemp at ABN AMRO points
out: We need people with the condence to stand up to
people in the business and remind them of their duties.
This can be difcult. 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 qualiying 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 rms 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 whats right one
day might not be right the next.
Compliance is for people who like following rules. Right?
Wrong. Compliance increasingly requires signicant judgement.
We often operate in a grey area in which things are rarely simply
right or wrong. Its up to the compliance professional to decide.
Surely rules are rules?
Regulations arent always clear. Plus, we typically have to
comply with rules in different countries and sectors at once.
Theres often potential for signicant deliberation about the best
course of action. And even if we do conform with regulations,
theres 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 theres no ready
supply of people with the right experience.
Whats the biggest challenge for the compliance function?
Consistently striking the right balance between being
commercially oriented and risk and control focused.
Prole
Stephen Morse
Global head of compliance
Barclays Capital
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Stephens 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.
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 nancial products.
They also offer a wealth of other data, including news
analysis and information on company accounts.
Trends
As the number of nancial 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. Moodys, for example,
made 456m from analysing and rating the structured
nance sector in 2006 more than 40% of its income.
But while business may be growing, rating agencies
are under re. 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 hasnt 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
nancing 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 nancial information providers underwent a
seismic shift when Thomson Financial put in a bid of
around 9bn for Reuters. If Thomsons bid succeeds,
the new company will be called Thomson-Reuters.
Key players
The nancial 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 nancial information market, the rating
agency sector also hosts three key players, but there
are no signs of consolidation. Standard & Poors and
Moodys vie for rst 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.
If you work for a rating agency, youre 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. Moodys 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 nance, structured nance and
nancial 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 & Poors
>
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 nance 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
nancial 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
worlds 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 ofces 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
nance desks of banks, they have been trying to make
amends. Bruce Wheelan, a consultant at recruitment rm
Andersons, 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 & Poors (see her prole on the right),
particularly as data providers and rating agencies are
shing 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 Moodys, 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 species communication skills as
mandatory. Anne Bowerman, global head of learning
and development at the company, says graduates
entering its business programme need to be uent 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 &
Poors 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 nance 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 didnt have as much
access to clients. At Standard & Poors I have regular access
to senior company management, Im 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 Ive analysed
the transaction and reached a decision about which rating
to suggest, Ill 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 weve already issued
and the rationale behind them.
Whats the most challenging aspect of your role?
Issuing a rating isnt 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. Its difcult to
deal with but were 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.
Prole
Maren Josefs
Associate director
Standard & Poors
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Marens tips:
Get a good nancial foundation before
applying my MSc in nance was an
excellent preparation for dealing with
the complex nancial products that
underpin ratings.
Try to build practical experience in the
area in which youd like to work rst
my previous experience at Aon enabled me
to understand the market Id be rating.
Language skills are highly valued an
analyst working in the London o ce can
cover companies headquartered in Europe
and the Middle East, for example.
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Think of insurance and the rst 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 gures 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 UKs 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 2007s severe ooding 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 wouldnt go into the industry.
Since then, insurance has gone all-out to make itself
appear alluring to university leavers. Insurance just
hasnt been seen as sexy, says Alex Thompson,
a spokeswoman for the ABI. Its 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 rst six months.
Key players
Think of the London insurance market and the rst
name that springs to mind is likely to be Lloyds. But
Lloyds isnt an insurance company its a market made
up of member companies, specialising in property and
catastrophe insurance. By comparison, most of the UKs
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.
Apart from the usual operations functions such as
human resources, nance 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
Oers 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 youre
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, its the job of
individual insurance brokers to sell insurance to clients.
Actuaries analyse the nancial 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 its 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 qualications, 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
companys corporate management scheme in September 2003.
What does an account developer do?
I help manage relationships with our afnity 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 protable.
Ive had four placements with the company. As a graduate trainee
Ive spent time in commercial lines underwriting (working out the
risks and premiums attached to insuring commercial property
and eets), 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 nancial 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 thats 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?
Theres been a greater specicity within the insurance sector,
meaning that insurers, brokers and even re-insurers in many
cases are looking for more specic skill sets. Insurers are
increasingly looking for people with nancial skills and another
skill, such as e-marketing or statistics.
Therefore dont 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 youd enjoy doing it). If youve done
a joint honours degree, great; if not, look at the relevant modules
youve done and sell these to any potential employer.
Prole
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 pro 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.
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 qualication
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 nancial services rm
to choose from. The most important are fund
management rms, 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 nancial services power houses
that do everything from trading nancial 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
Theres never been a better time to consider a career
within banking or nancial services while studying
towards a professional accountancy qualication
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 exible 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.
Theyre not as concerned if the people they take on
have no nancial services audit experience.
Accountants have evolved from number-crunchers to
business advisers, says Steve Carter, managing director
of Nigel Lynn. What the nancial institutions look
for today are nance professionals who are highly
procient technically but who can demonstrate a
broader range of wider commercial skills.
Key players
If you want to work for a bank, theres no shortage
of employers around. The worlds largest nancial
institution, according to US magazine Fortune, is
US-based Citi, followed by Fortis, the Benelux-based
insurance group, Frances Crdit 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.
At fund managers and hedge funds, accountancy
roles are typically for fund accountants who provide
ongoing reports on the value of the funds 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 ofce, accountants are hired into corporate
nance, 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 ofce are typically ACA-qualied. For more
information on these roles, see page 72.
In the back and middle ofces, 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 nancial 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) Crdit Agricole 55.9
4 (3) HSBC Holdings 47.1
5 (4) BNP Paribas 43.2
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Worlds 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 nance 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 ve years post-qualication
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 nancial reporting, as well as how they assess
risk, individuals must have with a clear understanding
of these developments and how they impact on the
businesss infrastructure.
A qualied ACCA, Heather Larkins works in the nance 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 nancial 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 exible qualication 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 nancial services?
Although I was interested in nance, I knew I didnt 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 qualication.
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 t is important,
as everyone has to be willing to pitch in when the pressures
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. Youre required not just to
produce reports but also to question and interpret them for
others including people who are not necessarily schooled
in nance. 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.
Prole
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 qualied) 45-50 10-20
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Accountancy salaries in nancial services 2007
Job title Basic pay (k) Bonus (%)
Heathers tips:
Do your research before interviews, so
you have some understanding of how the
company youre applying to makes money.
Remember the end user the job isnt just
about churning out numbers: people rely
on the information you produce to help
them make important spending decisions.
Spreadsheets will gure in a large
proportion of your workload if you dont
like Excel, this job probably isnt for you.
Take our online numerical tests
Employers IT in Finance Banking & Financial Markets Accounting in the City
If youre planning to gain an ACA qualication after
leaving university but cant face a lifetime of jokes about
boring accountants, then think banking. Investment
banks employ ACA-qualied staff in plenty of non-
accountancy guises the most popular of which
are situated in the thick of it in the front ofce.
Moving to the front ofce is not for the timid, says
James Lloyd-Townshend of recruitment rm 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 whove
worked closely with the front-ofce team in a main-
stream accounting role are more likely to have their
potential identied 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 nance/M&A
Corporate nanciers and M&A bankers are two
sides of the same coin. Corporate nanciers working
for investment banks advise client companies
(corporates) on how to raise money, often to nance
acquisitions. M&A bankers advise the banks clients
on which companies they should acquire and how
to fund their acquisitions. As such, corporate nanciers
and M&A bankers are often one and the same person.
Like most front-ofce 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 nance should already have some kind
of exposure to work such as due diligence or company
valuations in their current rm 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 nance and be able to articulate
this. Theyll be up against people who read the nancial
press, know what the big deals are and can talk
knowledgably about them demonstrating a long-term
interest, not just a eeting 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 qualied accountants
into front-ofce 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 condence and presence
to back up your ndings and recommendations in a
client-facing capacity. Qualied accountants can make
good equity researchers if they can complement their
technical ability with the right personality.
Other banking options
If you dont fancy making your career in corporate nance
or equity research, you could opt for equity capital
markets, which involves helping companies to raise
money by selling their shares on the nancial markets.
Or how about going into corporate broking, where
you will be helping companies manage their share price?
Or perhaps trading?
Keeley Quinlan, nance recruiter at UBS, says that
visibility in the front ofce can provide the perfect
opportunity for accountants to shine and be plucked
from a mainstream accounting role into a more
glamorous position: Theres always the chance that if
they impress the people theyre speaking to, theyll be
given the opportunity to switch across.
However, one City recruiter suggests it may be wise
for newly-qualied accountants with client-facing
aspirations to play their cards close to their chest: Line
managers wont want to take on and train up someone
who clearly wants to shoot off to the front ofce 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-ofce 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 youd 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 signicantly.
Guy Townsend, joint managing director at Walker
Hamill, believes personality is critical to succeeding
in private equity: Many qualied 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 its 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 dont imagine that the front ofce is for everyone.
Front-ofce 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 prole within the business and play key roles in
helping to enhance value for shareholders.
While many of the traders and others in front-ofce
positions have come via the sales route, your
accountancy qualications may have a positive
impact on your eligibility for admission: There are
several accountants in the Citys relationship manager
community, says James Pritchard of Lloyds TSB.
Their qualications are well-received, especially as
client contact is often with corporate treasurers,
who may be accountants themselves.
Finally, its also worth asking yourself whether youre
prepared to commit to working long hours. It may not pay
as well or be as exciting, but a life in nancial control or
auditing will at least mean your weekends are your own.
An ACA who trained with Arthur Andersens nancial markets
practice, Giles Derry initiates investment opportunities at Dunedin,
named in 2007 as the BVCA/Real Deals private equity rm of the
year. He specialises in the nancial 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 rms
corporate nance arm, and from there into private equity.
What do you like about the work?
Your relationship with management teams is ongoing, not
transitory. Corporate nanciers collect their fee and their job is
done but in private equity, thats 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 protable realisation of your investment.
What do you enjoy most?
Watching management teams mature and cope with some of the
difcult challenges and dynamics that arise is hugely rewarding.
Also, most private equity rms are relatively small, with collegiate
management styles big decisions get made and actioned
quickly, which is fantastic.
What does the work involve?
Theres no such thing as a typical day. I could be discussing
pricing strategies, hiring a sales director, nding more money to
buy other businesses, working on legal documents or helping
with tax structuring. I get bored if Im doing the same thing for
too long I love the variety.
What skills are essential in order to excel?
Youre dealing with people from all walks of life and business
backgrounds, many of whom are excellent you cant think you
know it all. You have to be able to identify what will translate into
value creation, which means understanding and maximising
cashow, as well as looking at long-term strategic development.
Prole
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 nance; or
insolvency or corporate restructuring.
Personality is key have the wrong
approach and you wont get on. T e
right people can acquire the skills.
Dont assume you know it all youll 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 nancial
products. They are known for having some of the worlds
cutting-edge computer systems, especially for the
trading oor, where nancial 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,
nancial 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.
Its 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 aeld. 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.
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 Microsofts .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 banks technology systems. Once big
changes have got underway, responsibility for
managing them often passes to project managers
who plan, structure and full 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. Its a role that carries a lot of responsibility
a computer problem on a trading oor lasting a few
minutes could cost the bank millions of dollars. Its 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 oor, 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, theres a denite 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 whore not just good technicians.
Many current systems have grown organically and now
need fundamental change. That has to be undertaken
by people who dont 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 dont 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 wont hire without academic
experience of software, says Robert Walters Louise
Clarke. They want evidence of good computer skills
already, although theyll 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 dont 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 OHare
of recruitment consultants Hays City: As project manager,
youre 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 theyre 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 nancial 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?
Id been personally trading in shares since college. Computer
science was my forte, so this job allowed me to combine
those interests. Although I dont 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 nancial services?
I love the pace. Things change quickly; you need to stay
up to date with whats happening, especially regulatory issues.
I also like seeing how nancial markets interact with and inuence
the rest of the economy. To play a part in all that is fantastic.
What do you like about project management?
Its all about seeing things through from start to nish. Im
involved in the initial project brief, and Im still there when it
materialises as a real-life working application that reduces the
effort required by people or processes, or saves us money.
Thats really rewarding.
Communication is critical. Youre dealing with projects involving
signicant 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.
Prole
Gurdev Sihre
IS implementation team
M&G
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Gurdevs tips:
T ink about the role you want its 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 ts in with the rest of the
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 dont
forget, you also have to have a social life.
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 nd 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 nancial services and gain a solid understanding
of nancial 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 scientic degrees, such as
computer science.
Youll 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 nancial
services, according to Louise Clarke of recruiters Robert
Walters: Sectors such as telecoms, defence and articial
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 theyd
started out in another bank.
Matt OHare 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: Weve 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.
Once youve got your foot in the door at an investment
bank, opportunities are plentiful. You could work on
technology for the trading oor or build the technology
that underpins mathematical models used to price
nancial 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, youll start out as a
programmer or business analyst, working on a particular
system. From there, youll 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
whats on offer throughout the IT function, with a view to
identifying potential skills, as well as allowing recruits the
chance to nd 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 youd 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 nal-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 nd
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 youre likely to pick up
exposure to the latest and most advanced electronic
trading systems.
The one thing you cant count on if you work as a
technologist is moving into the front ofce in a purely
client-facing role as a trader or salesperson. Indeed,
if you join the bank with this intention, you wont get very
far. In IT, its 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 theyve probably
always been working in the front ofce. 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.
Its 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 ofce.
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 wasnt required, I had to explain at interview
how Id go about analysing and solving various scenarios.
Why do you like nancial services?
I knew that banking would involve maths-related work, which I
like. And as Id 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
wouldnt 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 youre presented with new work or something to x,
youre 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.
Were 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.
Prole
Simon Pascoe
Software developer
Barclays Capital
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Simons tips:
Find out where your job would sit
that helps you match your own skills to
the jobs requirements and demonstrates
good preparation a key skill when
planning a new software project.
Some knowledge of nancial services
is needed: what various products and
services are and how they 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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ABN AMRO
Company snapshot
ABN AMRO is a prominent international
bank, with a history going back to 1824.
Were 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 its a unique culture in the
nancial sector. Its a culture where people
who are open to new ideas, who arent
afraid to voice their opinions and who
are prepared to listen to other peoples
views will thrive. For more information
see our employer prole on
www.enancialcareers.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.
As above.
Typical duration of internship programme:
10 to 12 weeks during the summer.
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 rms in
the UK, and currently has over 50bn under
management or advice. It is also one of the
fastest growing rms 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 ourish while beneting
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.
10.
Investment management departments.
3-year training programme.
30 November 2007.
Apply via: www.bailliegifford.com
7.
Investment management departments.
8 weeks in July and August.
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 banks
international growth strategy is to build a
protable 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 companys
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.
120.
Global Investment Banking, Global &
Capital Markets, Risk, Treasury Services,
Technology & Middle Ofce.
2-3 years depending on line of business.
Global Corporate & Investment Banking:
14 November 2007.
Global Technology & Operations:
2 December 2007.
Apply via: www.bankofamerica.com/careers
120.
Global Investment Banking, Global &
Capital Markets, Risk, Treasury Services,
Technology & Middle Ofce.
10 weeks.
16 January 2008.
Apply via: www.bankofamerica.com/careers
The Financial Job Marketplace
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.enancialcareers.co.uk/students
and start practising now!
www.enancialcareers.com/students
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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
nancing and risk management needs.
Barclays Capital has ofces in 26 countries,
employs over 13,200 people and has the
reach and distribution power to meet the
needs of issuers and investors worldwide.
600 globally, 300 in London.
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.
N/A.
Please see website for details.
Apply via:
www.barclayscapital.com/campusrecruitment
600 globally, 300 in London.
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.
10-week internship.
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 nancial news, data and analysis.
Leading corporations, news organisations,
nancial professionals and individuals in
over 127 countries rely on Bloomberg.
Available 24 hours a day, to more than
250,000 nancial 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 nance, sales, IT,
programming, project management, news
and summer internships.
Visit careers.bloomberg.com
400+ in the UK.
Financial Sales, Data Analysis, Software
Development, Information Technology,
Project Management, News.
Graduates join as permanent employees
with real responsibility from the start.
Recruitment is ongoing with no
application deadlines.
Apply via: careers.bloomberg.com
120 in the UK.
Financial Sales, Data Analysis, Software
Development, Information Technology,
Project Management, Marketing, Accounts,
HR and News.
10 weeks.
Internship applications close at the end of
February 2008.
Apply via: careers.bloomberg.com
Company snapshot
Barclays Global Investors (BGI) is one of
the worlds largest asset managers and
a leading global provider of investment
management products and services. From
inventing the worlds rst index fund in 1971
and the rst 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. Weve developed a unique
approach to equity and xed income asset
management, combining quantitative
scientic analysis with human ingenuity to
become creators and inventors in our eld.
65.
Active Equities, Indexed Equities, Fixed
Income (active/indexed), Business
Development, Technology.
18 months.
14th October 2007.
Apply via: www.bgigraduatecareers.com
40.
Active Equities, Indexed Equities, Fixed
Income (active/indexed), Business
Development, Technology.
12 weeks.
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 nance.
In 2006, Credit Suisse celebrated its 150th
anniversary and launched an integrated
banking platform delivering comprehensive
nancial 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.
Approx no. of graduate hires in 2007-08:
200 graduates.
Asset Management, Investment Banking,
Fixed Income, Equities, Finance, Private
Banking, Information Technology and other
support functions.
Dependent on programme.
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
Approx no. of intern hires in 2007-08:
245 summer interns.
Asset management, investment banking,
xed income, equities, nance, private
banking, shared services & information
technology.
Dependent on programme.
Please see our website for specic dates
Apply via: www.credit-suisse.com/careers
Citi
Company snapshot
BNP Paribas is a global leader in banking
and nancial services, ranking amongst the
worlds 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
ve continents.
At BNP Paribas, we like to do things our own
way. We dont 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.
500 global vacancies.
We have global opportunities in Fixed
Income, Equity Derivatives, Coverage,
Corporate Finance, Technology, ECEP,
Structured Finance and Functions.
Minimum 1 year.
See website for details.
Apply via: www.graduates.bnpparibas.co.uk
Varies by programme.
As per above.
Summer: 8-12 weeks.
Long term: 4-11 months.
See website for detail.
Apply via: www.graduates.bnpparibas.co.uk
Company snapshot
Citi is the most complete nancial partner
to corporations, nancial 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 nancial objectives
by providing them with cutting-edge ideas,
best-in-class products and solutions, and
unparalleled access to capital and liquidity.
250.
Investment Banking, Corporate Banking,
Sales and Trading, Capital Markets, Global
Transaction Services, Investment Research,
Technology, Operations and HR.
Varies by area, see www.careers.citigroup.
com for more details.
Full time programme: 4 November 2007.
Apply via: https://www.citi.gtios.com
250.
Investment Banking, Corporate Banking,
Sales and Trading, Capital Markets, Global
Transaction Services, Investment Research,
Technology, Operations and HR.
10 weeks.
Summer programme 20 January 2008.
Apply via: https://www.citi.gtios.com
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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
worlds leading nancial services providers.
With headquarters in London and Frankfurt
and an international network of ofces,
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.
100.
Global Banking, Capital markets Sales,
Research, Trading and Structuring, Risk
Management and Information Technology.
8-week training programme.
Graduate deadline:
8 November 2007.
Apply via:
100.
Global Banking, Capital Markets Sales,
Research, Trading and Structuring, Risk
Management and Information Technology.
10 weeks: 1 weeks training followed by a
9-week internship.
Summer internship deadline:
8 February 2008.
Apply via:
Deutsche Bank
Company snapshot
Deutsche Bank has been a global player
for more than 135 years, from nancing the
building of the Baghdad railway in the 19th
century to being the rst German bank to list
on the NYSE in 2001. Today it is a nancial
services provider, top executor of M&A
deals, Europes number one fund manager
and the global leader in securities trading.
At Deutsche Bank A Passion to Perform
is more than just a claim its the way it
does business, attracting the brightest
talent to deliver an unmatched franchise.
It is committed to being the best nancial
services provider in the world. Its breadth
of experience, leading-edge capabilities
and nancial strength create value for all its
stakeholders: clients, investors, employees,
and society as a whole.
Over 250 graduates in the City of London.
Asset Management, Finance, Global
Banking, Global Markets, Human
Resources, Legal, Risk & Capital,
Operations, Private Wealth Management,
and Technology.
18 months.
Analyst programme deadline:
1 November 2007.
Apply via: www.db.com/careers
Over 200 positions in the City of London.
Asset Management, Finance, Global
Banking, Global Markets, Human
Resources, Legal, Risk & Capital,
Operations, Private Wealth Management
and Technology.
9-10 weeks.
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.
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 ve months, and they
cannot be extended beyond the maximum
length of ve months. Most are based at the
EIBs 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 worlds
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 xed income markets. Fitch Ratings
is dual-headquartered in New York and
London, operating ofces 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.
25.
Structured Finance, Corporates,
Financial Institutions.
18-24 months, depending on
the programme.
To be conrmed for 2008.
Apply via: www.tchgraduatesuk.com
20.
Across the business.
Typical duration is 3 months. Ranges from 2
to 6 months.
Rolling applications.
Apply via: www.tchgraduatesuk.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 UKs 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.
28.
Accounting & Finance, Investment,
Operations, Risk Management &
Compliance, Sales & Marketing (European
Rotation Programme) and Systems.
Varies by business area, typically two and a
half years.
1 December 2007 for investment,
31 December 2007 for all other
programmes.
Apply via: www.delityrecruitment.com
6.
Accounting & Finance, MultiManager and
Sales & Marketing (European Rotation
Programme).
Summer internships of 10 weeks.
31 January 2008.
Apply via: www.delityrecruitment.com
HSBC
Company snapshot
HSBC provides a comprehensive range
of nancial services to over 125 million
customers worldwide. HSBCs Corporate,
Investment Banking and Markets (CIBM)
is an emerging markets-led and nancing
focused business that provides tailored
nancial solutions to major government,
corporate and institutional clients worldwide.
Managed as a global business, CIBMs
dedicated ofces around the globe serve
the subsidiaries and ofces of our clients in
more than 60 countries and territories.
150 globally.
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.
Varies depending on business area.
End of November 2007.
Apply via: hsbcnet.com/ibcareers
70.
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.
10 weeks.
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 nance, Lehman
Brothers serves the nancial 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 xed income sales, trading and research),
investment banking, and investment
management (including private investment
management, asset management and private
equity). The rm is headquartered in New
York, with regional headquarters in London
and Tokyo, and operates in a network of
ofces around the world.
300.
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).
2-3 years.
Deadlines vary. Check with your careers
service or graduate recruiting contact.
Apply via: www.lehman.com/careers
300.
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).
10-12 weeks for internships.
6-12 months for industrial placements.
Deadlines vary. Check with your careers
service or graduate recruiting contact.
Apply via: www.lehman.com/careers
Company snapshot
Lazard is a premier nancial services rm
committed to excellence, independence,
intellectual rigour, integrity and creativity
for our clients on a global scale. Lazard
is a global rm, with a team of over 2,000
individuals operating across 16 countries.
We solve complex nancial challenges for
a client base that includes corporations,
partnerships, institutions, governments
and high-net-worth individuals. We are an
independent rm, free of the conicts that
can arise at other nancial institutions, and
we maintain long-standing relationships
with business leaders and decision makers
around the world.
15.
M&A advisory, Financing (ECM & DCM
advisory) and Restructuring.
3 months training.
Analysts: 16 November 2007.
Apply via: www.lazard.com/apply
25.
M&A advisory, Financing (ECM & DCM
advisory) and Restructuring.
7 weeks.
Interns & 1-year placement: 1 February 2008.
Apply via: www.lazard.com/apply
Lazard
Company snapshot
The Macquarie Group is a diversied
international provider of specialist investment,
advisory and nancial 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 prots
for the past 15 years and has seen its presence
in the European market increase signicantly.
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
85.
Investment Banking Group, Treasury &
Commodities Group, Equity Markets Group,
Information Services Division, Financial
Operations Division and Risk
Management Group.
Permanent.
5 November 2007.
Apply via: www.macquarie.com/eu
50.
Investment Banking Group.
10 weeks.
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, theyll open
very quickly. Thats precisely because were
not the worlds biggest investment bank.
Were ranked in the global top 17, which
means were big enough to be a serious
player in the nancial markets, yet small
enough to offer our people really early
responsibility. There are no waiting rooms,
no hiding places. If youre good enough,
well trust your ability to dig deep and
deliver the goods.
10-12
We also take a small number of graduates
into the middle ofce.
Unique 17-week programme (rotating
across xed income sales & trading,
debt capital markets, structuring, foreign
exchange, commodities & infrastructure
nance).
Skills required:
Minimum 2.1 or equivalent degree.
Genuine interest in nance with a strong
desire to progress quickly.
Additional languages an advantage but by
no means a prerequisite to applying.
23 November 2007.
Apply via: www.rbccm.com/careers
20.
Capital Markets (Front Ofce, Middle Ofce
and Operations), Investment Banking,
Global Financial Institutions, Global
Wealth Management & IT.
8-10 weeks.
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 ofces 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 worlds
largest publicly traded investment
management companies.
250.
Investment Banking, Global Markets,
Research, Technology, HR and
Global Private Client.
2 years.
Full-time programme: November.
Apply via: www.ml.com/careers/europe
200.
Investment Banking, Global Markets,
Research, Technology, HR and
Global Private Client.
9 weeks.
Summer programme: December.
Apply via: www.ml.com/careers/europe
Morgan Stanley
Company snapshot
Morgan Stanley is one of the worlds largest
diversied nancial services companies,
with a reputation for excellence in advice
and execution on a global scale. The rm
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 nancial
problems. Our 45,000 employees across
31 countries provide underwriting, sales,
trading and research for almost every
nancial instrument, as well as merger
and acquisition advice, privatisation and
nancial restructuring, foreign exchange,
commodities, and real estate nance.
250.
Investment Banking, Sales & Trading,
Investment Management, Credit Risk
Management, Technology and
Finance & Operations.
2-3 years.
11 November 2007.
Apply via:
www.morganstanley.com/careers/recruiting
150.
Investment Banking, Sales & Trading,
Investment Management, Private Wealth
Management, Technology and
Finance & Operations.
10 weeks.
31 December 2007.
Apply via:
www.morganstanley.com/careers/recruiting
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Rothschild
Company snapshot
Rothschild is a top-tier international
investment bank with ofces 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 nancial goals.
Rothschilds 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.
30.
Investment Banking (M&A, Debt Advisory
and Equity Capital Markets) and
Corporate Banking.
Graduates complete a four-month training
programme, which includes formal
classroom training as well as rotations
through our principal divisions.
Graduate programme: 5 November 2007.
Apply via: www.rothschild.com
Summer interns: approximately 30.
Long-term interns: various.
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.
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.
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 worlds corporations
and nancial and governmental institutions,
providing an extensive range of debt
nancing, risk management and investment
services. UK Corporate Banking is the UKs
number one corporate bank. Together, we
have relationships with 95% of the FTSE 100
and 80% of the Fortune 100.
375.
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 Ofce; Corporate
and Institutional Banking; Corporate and
Structured Finance.
12 months.
Please refer to our websites.
Apply via: www.rbs.com/gbmgraduates
www.rbs.com/ukcbgraduates
240 worldwide.
Global Banking & Markets.
UK Corporate Banking.
UK: Easter Insight Programme (2 weeks).
Worldwide:
Summer Internship Programme (10 weeks),
10-20 Internships (6-12 months).
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 nancial derivatives. We
are also a major player in the emerging
environmental markets.
RWE Trading runs trading oors 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.
We typically look to recruit six graduates per
year, though we will always have positions for
talented individuals.
We offer our talent the opportunity to
experience several different areas of our
business: Risk, Front Ofce, S&V
or specialise in just one or two.
Our Talent Pool scheme typically lasts for 18
months.
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).
Risk, Analysis, Change Management, IS,
Short Term Position Management, et al.
Typical duration of placement programme:
12 months.
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. Were
one of the worlds 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.
370 globally.
Wholesale Banking, Consumer Banking,
Finance, Human Resources, Group
Technology, Operations, Legal & Compliance
and Assurance and Corporate Real
Estate Services.
2 years.
International graduate programme:
February 2008.
Apply via:
www.standardchartered.com/graduates
60 globally.
Wholesale Banking, Consumer Banking,
Finance, Human Resources, Group
Technology, Operations, Legal & Compliance
and Assurance and Corporate Real
Estate Services.
10 weeks.
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 nancial and non-nancial
products. With ofces 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 rened
products, coal, environmental products
and weather derivatives and exchange-
traded futures and options. TFS is a
subsidiary of Compagnie Financire
Tradition (CFT), one of the worlds top
three interdealer brokers in nancial and
commodity-related products.
No xed number, but average is 4 per year
in London.
This could be in any of our London
departments: Equities, Energy or
Currencies, depending on positions
available.
The broker training programmes are
usually 6 to 8 weeks.
Please refer to our website
www.tfsbrokers.com and our adverts on
www.students.enancialcareers.co.uk
around April / May.
Apply via: www.tfsbrokers.com
and www.enancialcareers.com
Ad hoc.
Ad hoc.
Variable.
N/A.
Apply via: www.tfsbrokers.com
UBS
Company snapshot
UBS is one of the worlds leading nancial
rms, serving a discerning international
client base. Its business, global in scale, is
focused on growth. As an integrated rm,
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
rm and one of the largest global asset
managers. In Switzerland, UBS is the market
leader in retail and commercial banking.
500+ across Europe.
All.
18-24 months, depending on the
programme.
London: 4 November. Please check our
website for details.
Zurich: year-round; no deadline.
Apply via: www.ubs.com/graduates
500+ across Europe.
All.
London: 10 weeks (placements
up to 12 months).
Zurich: 3-6 month placements.
London: 27 January 2008.
Zurich: year-round; no deadline.
Apply via:www.ubs.com/graduates
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www.structuredproductsonline.com
About this site: Structured Products online.
Key gures: 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, xed
income. News, features, regulatory data,
comment and proles. 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 nance.
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 gures: 10,263 qualied subscribers.
Typical/target audience: Chief information
ofcers, analysts, chief technology ofcers,
market data executives.
Product offering: Feature led articles on
technological issues facing the buy- and
sell-sides. Monthly & weekly news alerts,
breakfast briengs.
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 rms.
Sell-side: securities rms, 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 gures: 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, proles, 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 gures: 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 ve-year archive.
Sectors covered: Hedge fund manage-
ment, investing in hedge funds.
Countries/languages covered:
Distribution: 60% Europe, 30% North
America, 10% Asia-Pacic/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 nd out what its
really like rather than reading the theory.
www.opriskandcompliance.com
About this site: Online and monthly in print.
Key gures: Readership c. 8,000 monthly.
Typical/target audience: Heads of
operational risk and compliance, chief risk
ofcers, 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, nancial 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 youll
make a name for yourself.
2007 Citigroup Inc. Authorised and regulated by the Financial Services Authority. Citi and Arc Design and Lets 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 youre ready to make your mark.
The right address to nd your rst job in the City
The eFinancialCareers.com Student Centre is the number one graduate website for jobs and career advice in banking and the nancial
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.enancialcareers.com/students

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