In countries and regions such as Europe and the United States, many college graduates are only analysts who entered investment banks from the beginning. To do this job successfully, you must have special skills, such as spreadsheets and the ability to think clearly and analyze problems, before you can potentially become a senior manager. This requires the same skills, but is more demanding. In mid-career, your success depends on your ability to communicate with clients and make deals go smoothly. At the same time, you must also understand market conditions, political and macroeconomic situations and the operation of mechanisms. Some jobs require strong math skills
Investment banking. If you are good at math, science, and engineering subjects consider taking a higher degree (such as calculus and stochastic school differential equations), then continuing to take elective courses in a few more in-depth subjects such as financial analysis and stock valuation, and finally applying on Wall Street A research department. It is very important for most analysts to correctly analyze financial numbers. If you want to become a securities analyst, you must seek to obtain the CFA (Chartered Financial Analyst) designation. If one day you aspire to engage in financing business and become a financial analyst for a company, you'd better think twice about getting a CMA (Certified Management Accountant).
Adopt a high-value legal background in technology and investment banking: scientists can do any type of work, from financial derivatives to bioengineering calculations; lawyers can assist with the design of new securities, leasing operations, and working with Excellent analytical skills in communicating with their clients.
"Learning to sell yourself" is an essential skill for becoming an investment banker. Investment banking is one-click access to a network - maybe you've already been attracted to this network, but if you're not, you should quickly build your own network. Attend some industry conferences and discover some friends in the business school student directory. Of course, the network may not work right away. If you are young and haven't gotten an MBA, you should try to get into the best business schools.
After entering an investment bank, under normal circumstances, you should be responsible for every project you receive in a timely manner, whether it is writing reports, drawing spreadsheets, doing business, doing research or work plans. Then, once users visit and participate to create profits for the company, if you can negotiate business, the rewards will be quite generous. If you have become an executive (usually directors, managing directors and higher), you have to take more risks. Someone who is not well qualified to work in this position will be the one who is forced out.
Job Descriptions for Different Businesses
Corporate Finance (Corporate Finance). Some projects may raise funds whether the company's finance department should help the company for new projects and beyond. You should be able to identify the client and the amount of funds required through assets, liabilities, convertible securities, preferred securities or derivative securities. As a new analyst, you should talk to customers more often. If you hear someone called IBD or IBK, they are engaged in corporate finance.
Mergers and Acquisitions (M&A). Income from transactions involving purchases of another company is an important source of income for many investment banks. If you work in this area, you should be an advisor to your clients, valuing deals, structuring deals, and creatively identifying and negotiating favorable terms for yourself. Goldman Sachs and Morgan Stanley are globally recognized leaders in M&A. Investment banks often bear the investment risk themselves and are constantly directly involved in leveraged buyouts (LBOs), corporate spin-offs, benefit and loan transition arrangements. Your task is to analyze appropriate forms of participation.
As competition intensifies, small investment banks become smaller and smaller, so joint investment between lines has become an inevitable way to survive, and some investment banking giants have begun to show their prowess. These giants often provide a wide range of investment banking services to their major clients, helping companies broaden their horizons. To get to know their customers more thoroughly, they talk to customer company executives, visit customer companies, and test their products. Similar to securities underwriting, there are also “brands” in the M&A field.
In the market for a technology company, people tend to think of new stock offerings as still being taken up by big companies like Goldman Sachs Surgeons, and while the IPO process is the same, the results are very different. Most companies believe that if their IPO is likely to be taken over by top investment banks, then their success in the capital market is already a fait accompli. The same goes for mergers and acquisitions. Morgan Stanley's Corey, Deutsche Bank's Thornton, Goldman Sachs' L'Heureux and technology's M&A experts at Lehman Brothers affirm that if there's a person involved in technology in any of the above M&A deals, that's definitely a good sign.
Project financing. The scope of project finance is rapidly expanding to include infrastructure projects and petroleum assets financed primarily off-balance sheet by companies or governments. Credit Suisse First Boston and Deutsche Bank are very active in this area. Project finance transactions have become one of the main channels for the introduction of foreign borrowers, and when other borrowers, in general, project finance remains exhausted.
Transaction. Some of the most coveted jobs in investment banks are often trading. Liability is an asset trading in stocks, commercial banks, investment banks and large institutional investors in foreign exchange (referred to as foreign exchange or foreign exchange), and in buying and selling options or futures. Trading is a complex job and therefore requires you to have a comprehensive understanding of the market, financial instruments and psychological intuition. Working capital trading to other traders often involves "telling a story" about why they are buying your stock. Derivatives traders require strong analytical skills (ideally an engineering degree). Foreign exchange trading mainly requires traders to have an intuitive understanding of market political and macroeconomic issues.
Structured finance. Include innovative financial instruments to redirect flows to investors (such as asset-backed securities). Common asset-backed securities would be credit card, car loan or mortgage securitized receivables. Other areas that are changing are asset-backed commercial paper securities, collateralized debt obligations (CBOs) and asset repackaging vehicles. Accounting and legal skills are very beneficial if you can draw both spreadsheets.
Derivatives. The value of a derivative instrument derived from the original security. Options, swaps and futures are all derivatives. The derivatives market is huge and increasingly regulated. Derivatives business is a highly profitable business and its workers are very demanding to do this job. If you are interested in working in this area, you can start studying mathematics. Besides sales skills being very important, one word you will hear is "structured notes." Structured notes can appear as foreign currency loans, forwards or futures contracts depending on the client's choice.
Consulting services. Investment Banking M&A and Public or private, many investment banking financial advisory services include risk management advisory services. Equity and Fixed Income Research
. Generally speaking, securities analysts will be assigned to analyze a company or region. Your assignment may be to recommend stocks and bonds to investors and will require constant contact with corporate and institutional investors. Investment banks often hire those who have experience working as a business analyst (as opposed to just an MBA or bachelor's degree). For example, you are a manager of a restaurant and may be a restaurant industry analyst. Understanding the business and being able to communicate with customers and have good predictability is the focus of this job. Basic research staff will provide some suggestions based on the company's development and situation to the CEO. Instead, computer analyst computer programs confirmed the depreciation of the stock market and the nation. There are not many such jobs, but because individual jobs require high professional skills, they also pay well.
International trade and emerging markets. While Asian and Latin American countries are affected by the economic and financial crisis, investor demand for securities issuance remains busy. Investment banks will send many professional traders and experts to meet this requirement. Another reason is that there is high demand in emerging market areas, such as the Thai or Mexican markets. Financial institutions need to hire employees who are proficient in foreign languages, willing to travel frequently, and understand emerging markets.
Municipal bonds. The municipal bond market is huge and requires analysts, consultants and municipal traders to study it.
It's hard to get higher returns on municipal projects, but yes. Anyone who has worked in the executive branch of government will have a strong attraction to investment banking. The main business is the growth of municipal project finance.
Securities trading broker. Its job is to serve individuals in buying and selling stocks, bonds and other investments. Only for high-income customers, and some brokers do not differentiate among all customers. Although the industry is difficult to start with (especially when you are much younger than your clients), as long as you have a reasonable level of trading skills, your returns are high. You can enter the best companies like Merrill Lynch and receive good training.
Institutional salesbr. Institutional sales are primarily responsible for bringing information about particular securities to institutional investors. You probably have frequent contact with your company's analysts and salespeople. Sales skills and product knowledge are essential as it relates to your ability to convince institutional investors (insurance companies, mutual funds and pension funds, etc.).
Income from Investment Banking
Under normal circumstances, when a college student joins the U.S., his salary is $25,000-50,000, including bonuses (such as assistant general manager or general analyst). With an MBA degree, annual salary ranges from $60,000-135,000. Different companies and different regions have different salary standards. When it generally starts, the bonus accounts for 10% to 50% of the salary, and then slowly increases to 1-3 times. The current trend in investment banks is that salaries, including stock options, are not mobile for at least 3 years, which is beneficial to companies because it slows down the mobility of talent. If you are an analyst, you may not encounter this situation.
In recent years, the world economy has continued to be affected by the economic recession. Goldman Sachs and Morgan Stanley, as representatives of multinational investment banks, have waved their "swords" towards known payment bank hormones in order to reduce costs. Some employees had to face the harsh reality of "zero bonus", and the overall income of investment banks returned to the level of the mid-1990s.
Compared with the highest level of director, the general manager of the investment banking department (managing director, referred to as MD), for example, in 2002, received a "red envelope" amount between US$250,000 and 350,000. As the stock market dropped significantly by more than 80% from its peak of $1.5 million to $1.75 million in 2000, their basic annual salary remained at $200,000. "Red" fell from the 2000 level of standing in the mid-million dollar position of Vice President (Vice President, referred to as VP) to 150,000 yuan, with the average annual salary between 120,000 yuan and 150,000 yuan. As a senior manager, you can be lucky enough to get $40,000, which is usually a "red envelope" for a recent MBA business school graduate, reaching a basic annual salary of 55,000-85,000.
The Ministry of Commerce has so many people all over the world, why are you looking for an investment bank alone?
For young people in mainland China, competition is fierce because investment banking graduates have begun recruitment on a larger scale in the past 3 years, but there are people who want to attend more talks about the industry. In addition to investment banking job fairs that will be held on university campuses, we will also work with business school programs to select talent. But it’s not easy to stand out among the thousands of mainland Chinese graduate business school students every year. Morgan Stanley Vice President
Wenhan Wei, who is responsible for the deployment of human resources in Asia, said that the most basic requirement for investment banks is that job applicants have a good academic record, because it represents the result of a person’s ability. Come learn and potential. With Chinese business graduates abounding, an MBA degree has become vital. However, he said that Chinese students have a different problem that they only focus on academic performance, but as a result, having an out-of-state does not mean that a person can become an excellent banker. A balanced resume is Banks don't want to see it coming. "Investment banking is a highly competitive industry. Ability, dedication and goals are important, but creativity and patience are essential." He said. In addition to good academic performance, investment bankers can also be successful in some other areas, such as music, art or sports.
"A talented person who is a representative of the people is passionate, and this enthusiasm can often help them in their careers."
However, people who want to join investment banks should be prepared for this It will be a hugely competitive and stressful job. Li Zhiying, who has worked in investment banking for more than seven years and is currently an analyst at ING Barings Hong Kong Real Estate Company, said that she works at least 12 hours a day in addition to her own industry and is responsible for a very in-depth understanding of the company. We have to grasp the entire society. Economic development, because every seemingly simple event, every ordinary data may have a significant impact on real estate, and guests will rely on their own judgment to do business. She said: "This is an industry full of challenges, but it is also a very punishing and industry rewarding industry."
As an industry veteran, General Manager Guo Junhao, Director of Credit Suisse First Boston (Hong Kong), believes that investment Banking is the industry where workers make the most money. The annual salary of tens of millions of dollars reminds senior bankers to pay attention to three elements of young people entering the industry. Guo Chunhao said that if graduates want to join the investment banking industry, it is a prerequisite that they do not have sufficient qualifications, otherwise they will not have the opportunity to be interviewed. Therefore, education is the first hurdle. "To make yourself more attractive (make yourself interesting), I go to pick up another factor to be considered by the candidate. The candidate needs to express how he positions himself, which is different from others." Secondly, to "do bad", You should not be afraid of losing, especially in the first few years. "If you don't do well," he said emphatically, "the more people who do it, there will be more things to do, but it will certainly not be proportional to the salary paid." ; The wage earner must be able to withstand and never let the boss feel that you are just going to suffer from doing so. If one day, you take advantage of the boss and find it difficult to have a good result. "The third element is the opportunity for the new boss to meet with Customer competition. Even in Hong Kong, there are a large number of listed companies, but if they are willing to patronize top investment banks, Guo Chunhao estimates that there will be no more than 100. Therefore, in the fierce industry competition, investment banks and the professional knowledge of customers will teach you how to do it. This, points to your incarnation. "Heroes may also be used to ordinary people, but for young people, if they anticipate future business development and have the opportunity to call the most powerful people in the mall, this line is undoubtedly the best industry. Of course, new Entrants have to pay more attention to themselves and learn more. Chief "Guo Chunhao" suggested that the best young recruits in the past 30 years are mainly because this line of work is indeed very hard and the work is often "all night long".
The difference between the large securities analysts active in the Hong Kong capital market, in terms of quantity, is that for large securities firms and investment banks with a market share of more than 13% there are generally about 20 for medium-sized companies and about 40 for small institutions There are a lot of them, and many of them are family-run businesses. Basically, all these brokerages and investment banks can be roughly divided into "four sections." One plate is for securities companies and investment banks in Europe and the United States, the first two parts for Japan, and the other three parts are for securities firms and investment banks from Southeast Asia; the fourth plate is for local securities firms and investment banking institutions in Hong Kong.
In European companies
the annual income of professional researchers, such as senior analysts, can reach 2 million to 3 million US dollars. In addition, depending on the company's operations and the year-end Level 20 to 40 months bonus you can get. The second segment, which is the company's revenue from Japan, specializes in 40% less than the US and European companies, which is about 1.5 million US dollars a year down 30%. In Southeast Asia and Hong Kong, it’s hard to say how much income the local companies have. I don’t know if this is due to the nature of their family businesses.
It is worth mentioning that investment banks are not very concerned about the new culture and how to recruit their talents. There are two main types. A novice should fight for opportunities by himself, learn by doing, and like to learn to swim. , swim out novices will come out, swim out without drowning; another method is very simple, it is dug. Because the competition is fierce but the economy is not ideal, the salary for newbies is only HK$30,000 per month, and the standards are very high, at least for agencies born in the United States.
The low-income institutional brokerage business in Hong Kong can be provided to novices for about HKD 15,000 per month. The standards are also lowered accordingly, and some only need to graduate.
Basically, professionals in securities operating institutions engaged in research can be divided into three categories: strategists, analysts and assistants. The main strategy is to provide ideas and a framework for project analysts. For example, Tao Dong, an analyst at Credit Suisse First Boston, said that his main job is to provide a perspective that rarely writes multiple pages. Contrasting the situation in mainland China, many people think that the (viewpoint) is biased. This is the most important job of a strategic analyst. A great view, because the view is often the starting point is the wrong point to establish the principle. Once the final investment plan is viewed, it may be more Outrageous error. Therefore, the job of a policy analyst is basic research.
The analyst's main job in order to complete a specific project is to provide investment recommendations for a specific market. Since they are not out of bounds and view strategic points of macro analysts, so basically, their job is more specifically, the meso level. At this level, there are also some positions of corporate economists. The role of this position is to provide economic analysis and judgment of the situation, so that we can better grasp the macroeconomic situation.
The assistant's situation is not fixed and depends on each company and the situation the analyst assistant follows. Typically, at least one is very familiar with various software assistants, charting tools, and data. The assistant's daily job is not easy, as he is always happy to help analysts complete their responsible tasks.
In the international capital market, almost everyone is a workaholic. Tao Dong's working hours at Credit Suisse First Boston last from 6 a.m. to about 10 p.m. After that, he often has to arrange to do some things of his own. In other words, analysts like Tao Dong work up to 18 hours a day, up to 14 hours a day. Financial institution, JP Morgan analyst Deng Tishun revealed that his work starts at 6 a.m. because at that time, some international markets have opened, and he must keep track of the situation, and by around 22:00, he Will end the work.
On the eve of Thanksgiving, Morgan Stanley economist Xie Guozhong, obviously very tired and wide-eyed, was also interviewed by the media for major holidays in China and the West. He also works from 6 a.m. to late at night every day. Xie calmly said that this is not surprising. Anyone who is addicted to the capital market cannot adapt to the intensity of work and does not do this. In fact, there are many such people. It is common for people in the world to work hard around the clock, it is their life and their efforts are the raw power to flow global wealth. Many people may not be able to imagine such intensity of work. People want to gain wealth, but they also envy the honor and halo of analysts, but how many people are willing to work like this for a year? To engage in scientific research, you need perseverance. If you are 30 years old and have not yet entered the threshold of a real analyst and are still hanging around as an assistant, then the best advice is to change jobs and start over. Because even from the age of 30, it will take you 7-10 years to achieve more ideal results and achieve a real market position in the industry.
How to stand out among analysts in the fierce competition? With a profound professional background in science and engineering, Wang Xiujun, chief analyst at ABN AMRO Global Semiconductor, shared his experience: The first impression is very important. He holds a PhD in Engineering Economics from Stanford University (Engineering Economic Systems) and is very specialized in understanding issues in systems production processes. Wangxiu Jun pointed out that hundreds of millions of dollars come to the hands of a foreign fund manager who has rich experience, sharp questions, and aggressive attitude that leaves no room for breathing. There are still thoughts on the work of analysts, who Wangxiu June proposed. The ability to give people the first impression and presentation (make a professional presentation) must be strengthened, because it determines whether the fund manager will listen to you for the first minute. Have the patience to continue listening. Wangxiu June usually asks them directly to know and answers immediately according to their needs. In other words, in addition to careful preparation, sensitivity (sensitivity) is also very important. “This trip is an analyst’s personal business (getting to know people, getting along with people like this industry), and being honest about who is dishonest is very important.
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Once studied at Merrill Lynch Taiwan Shogo Vice President is a virtue and strives to understand the industry development trends to earn credibility in the same industry. Shogo Electric and MBA who have dual master’s degrees, he worked at Huabao Securities In order to analyze the downstream industries of other personal computers and mobile phone motherboards, he works more than 12 hours a day, not only visiting listed companies and writing research reports, but also answering questions from foreign customers until midnight. Surveys of listed companies show that he has a clear conscience. The views are fair and impartial, and the opinions on the future level of economic impact will not be affected a little. In addition, he likes to ask questions and analyze this issue more deeply.
Although he immigrated to the United States from Colombia as a child. Lin Qunjie, a university (Master) graduate from the University of California, Berkeley (BA) and other schools, is not complacent in research at Citigroup Smith Barney, but is still serious and hardworking, so the companies surveyed are willing to proactively provide him with more news. Analysis allows for better insights into industry trends and the future direction of stock prices. Previously, Lin Qunjie worked in the Boston offices of Peregrine and Credit Suisse, often working 70 hours a week. He believes that securities analysts are like detective work. Think independently, look for things in all aspects, and then convince others.
Career prospects for women
The school has Chinese background studies and outstanding career development for women in international finance and investment banking. Opportunities: Financial markets are more open in Taiwan. For example, after Goldman Sachs was appointed to succeed David Chang as President of Taiwan in July 2004, there are four women in the world's top investment banks: In addition to Yu, there are three other female executives, including Morgan Stanley Taiwan CEO Shuixian Lin, co-head of UBS Taiwan Chen Fen, Vanessa and head of corporate finance Huang Huizhu Taiwan Merrill Lynch holds a master's degree from Peipei Yu University of British Columbia, Canada, and had more than 10 years in the investment banking department before joining Goldman Sachs. With five years of service experience in foreign investment in Taiwan, she worked at UBS and Citigroup. 3 years ago, a person in the legal profession said that Gu Peipei got married to her husband and was busy with her wedding and secretary duties. , she only appeared at the appointed time in charge, after he completed a plane wedding business and returned to Taiwan 2 days before the wedding
Investment banks emphasize "teamwork", but "teamwork" usually revolves around it. Over the past 20 years, there have been ups and downs in the performance of the Chinese business of multinational investment banks in China. The changes in the organizational structure of the team are extremely closely related.
As Dihao’s China Business Director UBS General Manager pointed out that the long-term development of investment banks requires the support of three factors: brand (won by professional services). clients), the level of the team (to attract talent and make a difference), and the level of commitment to the market (whether strategically aligned) – these are key elements of the foundation of “talent” as international investment banking continues to grow in China. The importance of the team, and increasingly reflected in recruitment. In the organizational structure of the local team, the terms and arrangements of Citigroup Global Markets, JPMorgan Chase, Deutsche Bank and Merrill Lynch are more significant: the multiple position settings of China’s (CEO) president and managing director both reflect the mainland market The attention and commitment from investment banking headquarters also helps improve operational efficiency. At the same time, the above arrangement also creates space for upgrading the company's internal employees, which is conducive to the stability of the team, and also facilitates the external recruitment of senior professional talents.
Since Chinese authorities still have many restrictions on cross-border equity and investment banking practices in China, employment opportunities for global financial institutions in the mainland are very limited. Since 1999, Merrill Lynch, Goldman Sachs, Morgan Stanley, Citigroup Global Markets, JPMorgan Chase, Deutsche Bank and UBS Investment Bank have gradually established themselves in Tsinghua University, Peking University Guanghua School of Management, Peking University International MBA (Peking University International MBA), Fudan University, Jiaotong University and China Europe International Business School (CEIBS) recruit undergraduate and MBA graduates, but offer more analyst (analyst) positions with the most junior qualifications.
As China joins the WTO, competition among foreign investment banks has become increasingly fierce. A few major banks such as Merrill Lynch and Deutsche Bank have tried to recruit local MBAs as assistants: Ye Lin, an international MBA student at Fudan University, graduated in 2003 and interned at Deutsche Bank two months later. The bank received an annual salary of NT$800,000 as promised in the employment contract.
I believe that in measures to encourage competition, Wall Street's "noble and conservative" big trades will be humble and ultimately calm in their stance on the Chinese market and the implementation of their country's recruitment, training, and promotion systems. , competing for dominance in the journey of "climbing the Great Wall".
Example:
Analysts at the Industrial and Commercial East Asia Investment Bank are currently recruiting interns for two full-time internships of three months or more. If they perform well, they will be converted. Requirements for formal employees:
Master's degree is preferred, particularly outstanding undergraduates may also be considered
Personal ability requirements: .
-Have a good Chinese and English proficiency, including oral and written communication skills;-Excellent translation skills (must be familiar with financial and economic English vocabulary)
-Through the National English test (6 essential, professional honors by eight, TOEFL, GMAT, international exam GRE, IELTS, etc. especially preferred)
-Real estate has a high level of production
- Has higher editability in Word - Gets proficient in Excel datasheets (with model preparation base)
- Must be proficient in using other data analysis software is a plus
- Personal information required for good access