career in fiance. combined

8/4/2019 Career in Fiance. Combined

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The following are the fields to explore for a finance person:

1. Commercial Banking: OverviewCommercial banks are in the business of providing banking services toindividuals, small businesses and large organizations. While the banking sectorhas been consolidating, it is worth noting that far more people have jobs in thecommercial banking sector than any other part of the financial servicesindustry. Jobs in banking can be exciting and offer excellent opportunities tolearn about business interact with people and build up a clientele.

Today's commercial banks are more diverse than ever. You'll find atremendous range of opportunities in commercial banking, starting at thebranch level where you might start out as a teller to a wide variety of otherservices such as leasing, credit card banking, international finance and tradecredit.

If you are well-prepared and enthusiastic about entering the field, you arelikely to find a wide variety of commercial banking jobs open to you. Carefullyread through the material below as you decide whether you've got what ittakes to pursue a career in commercial banking.

Commercial Banking: Skills & Talents

Broad Business Understanding and People Skills Needed To be good in banking you need a broad understanding of businessbecause your job will most likely involve interacting with businesses.People skills are essential because you will be helping people get theloans and investments that they want.

Accounting and Writing Skills are Crucial The most common jobs in commercial banking are as a credit analystand as a lending officer. These jobs require a strong understanding of accounting. Because banking often requires that you document loansand justify credit analyses you've written communication skills are

extremely important.


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High Grades Less Important than Work Ethic Banking attracts a diverse group of people. You don't have to be asuperstar student with a phenomenal GPA to make it. You do have to bedetail oriented, unafraid to sell and conscientious.

International Talent in High Demand at Money-Center Banks According to Hoyle Jones, Head of recruiting at Citicorp: The firm is"aggressively in the hiring market.We're looking for U.S. -educatedAsians and Latin Americans to go back home and grow businesses."

Marketing Types Wanted A new business model which is spreading into banking is that of the

marketing-oriented consumer products company. Banks are trying tobuild valuable brand images with consumer-oriented advertising anddistinct product lines. According to Richard Kovacevich, CEO of Norwest:"I believe we all must be salespeople; and we should be proud of it... Wecan no longer be order takers, which is still the characteristic of the oldbanking industry. In fact, we must be great as salespeople. We must becustomer-oriented, we must be needs-based and we must beaggressive." In light of this demand, if you have good marketing skillsand have taken a number of marketing courses, you will be well-suitedto this new environment.

Wall Street Types Will Find a Home Because commercial banks remain profitable and are more involvedthan ever in the financial markets, they are competing with Wall Streetfor "high-tech finance jocks" involved in foreign exchange derivativesand financial engineering.

Corporate Investment Products in High Demand There is also high demand for finance professionals who can developproducts for the corporate market. According to Windle Priem of Korn/Ferry International, a top recruiter in banking: "Half of the[recruiting activity in banking] has been in the capital markets andcorporate finance arena of these banks. The other part of thecommercial banking practice that's booming is investment products andmutual funds. That's been very, very strong. ...Most of those peoplehave been hired from other investment firms, other mutual fund


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companies. The traditional corporate lending people continue to bedownsized and terminated.

MBA Optional

It is generally not necessary to get an MBA in commercial bankingalthough it wouldn't hurt you. Many of the execs at the very top do haveMBAs from prestigious schools

Days of Easy Hours Long Gone Banking is reputed to be a low hours/workload position. This is possible,especially in smaller markets, but increasingly bankers are workinglonger hours as their jobs become more oriented towards generalmarketing of financial services. Consumers are increasingly banking fromhome using online services and the Internet. If you are Internet savvyand familiar with computers you will have an edge in banking. "Banksare at the point now where they have to seriously start moving into anon line environment, or risk losing some of their best customers,potentially forever. It's a very crucial and very perilous time for banks,"said David Taylor, executive vice president at the Bank Administration

Institute.A typical job in banking in the lending or branch management area wouldrequire the following skills:

Key Skill Area Requirement People skills: High Sales skills: High Communication skills: High Analytical skills: Medium Ability to synthesize: Medium Creative ability: Medium Initiative: Medium Work hours: 40-60/week


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Commercial Banking:Job Options

Credit Analyst This is a common entry level job which requires that you evaluatebusiness and consumer loan applications made to your bank. Your dutiesinclude projecting a company's future cash flow, evaluating its currentfinancial soundness, visiting and interacting with financial people atbusinesses and dealing with lenders. You will learn a lot about businessin this job. Your success in this job will depend on how detail-orientedyou are, your knowledge of accounting and your ability to communicate.

Loan Officer This is a highly desirable job in banking which involves making loans tobusinesses and consumers. Being a loan officer requires that you havegood selling skills, an ability to understand a business and a solidunderstanding of how banking works. Most people in uppermanagement at banks were once loan officers.

Branch Manager

You would be responsible for overseeing all activities at your branchincluding opening new accounts, loan origination, solving customerproblems, foreign exchange and safe deposit boxes. Most importantly,you are responsible for establishing relations with customers. This jobcan be very satisfying, is never boring and requires you to be hands-on.Many bank managers start as tellers or customer servicerepresentatives. Key things go have for this position are customerservice skills, empathy, quantitative ability, strong work ethic,organization and and a solid understanding of banking. Can move up to

be a market manager and oversee branches in a market.

Trust Officer In this job you would deliver trust services, financial products and adviceto bank customers (often more upscale ones). This work will give youknowledge of business, investing, estate planning, taxes, probate lawand will involve a lot of counselling.


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$500,000 with a hefty bonus added in. Chief technology officers only makeslighly less.

Commercial Banking:Facts and Trends

Banking is Satisfying

Banking is in a Period of Consolidation The Bad Economy of 2009 is Impacting Banking Don't Forget Government Job Opportunities in Banking Banking is Shrinking Specialized Banks are Doing Best Middle-Managers Are In Demand

2. Careers in Corporate FinanceA career in corporate finance means you would work for a company to help itfind money to run the business, grow the business, make acquisitions, plan forits financial future and manage any cash on hand. You might work for a largemultinational company or a smaller player with high growth prospects.Responsibility can come fast and your problem-solving skills will get put towork quickly in corporate finance jobs.

The job of the financial officer is to create value for a company. For example,the finance group at ADITYA BIRLA GROUPhas four main areas of


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concentration: liquidity, flexibility, compliance with laws and regulatorysupport. AEP's Finance Department carries out four main activities to meet itsobjectives: 1) designing, implementing and monitoring financial policies, 2)planning and executing the financing program, 3) managing cash resources,

and 4) interfacing with the financial community and investors.

Jobs in corporate finance are also relatively stable. Performance in these jobscounts, but your job is not going to depend on whether you're selling enoughthis week or getting good deals finished this quarter. Rather the key toperforming well in corporate finance is to work with a long view of what goingto make your company successful. Many would argue that corporate finance jobs are the most desirable in the entire field of finance.

Some of the benefits of working in corporate finance are:

1. You generally work in teams which help you work with people2. It's alot of fun to tackle business problems that really matter3. You'll have many opportunities to travel and meet people and4. The pay in corporate finance is generally quite good.

Corporate Finance:Skills and Talents

Different jobs and companies call on different skills from the corporate financeprofessional. A typical job in corporate finance would call for the followingskills:

Puzzle-lovers Wanted Most corporate finance jobs involve solving problems using acombination of intuition and analytics. If you are good at problem-solving, this may well be the job area for you.

Are You a Forrest Gump Type? Many of us imagine working in a corporation as a boring, routineexperience designed for dim-witted, persnickety pencil-pushers in short-

sleeved pastel plaid shirts. Not so pal. Rather, you need to be


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comfortable with ambiguity and a rapidly shifting environment wheretasks change from day to day, maybe hour to hour.

Geek of the Week? Not Really, But...

Lets not avoid the obvious. In corporate finance you have to becomputer literate with spreadsheets, word processors, presentationpackages and large-scale data management tools. This is especially truefor entry level positions where you will need to crunch numbers as youget involved in the details of corporate financial planning, accountingand capital-raising

Are You An Impatient, Entrepreneurial Type?

One of the most common complaints among new entrants in corporatefinance jobs is that they are surprised by the low level of the work. "Ididn't go to school to do this..." is a common refrain. Keep in mind thatcorporate environments reward longevity and loyalty. Be patient, learnfrom mentors and invest in yourself along the way. If you complain earlyon you may never get the break you want that comes from doing aminor task particularly well.

Why Do Nice People Get the Good Jobs?

The movies portray "killer" operators in corporate environments, gettingahead by manipulation and chicanery. This isn't exactly how it works.People who like people, can communicate their ideas, build deepnetworks and are passionate about their work get ahead.

Leader or Follower? The number one attribute most corporate employers are looking for isinitiative. If you can give examples in interviews of situations where youdid something plain useful even though no one asked you to, you will bea hot commodity. Have you ever started a business? Or put together asocial event that brought people together? Or started a neworganization?

Speak a Foreign Language? Large corporations in the U.S., Europe and Asia are more globalized thanever and jobs will often take you across borders. You will obviously bemore desirable to a company if you have a command of at least one

foreign language and knowledge of international corporate finance.


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Would you be comfortable managing a bank relationship for yourcompany in Argentina? Or costing new plants in China?

Risky Business

The last decade has seen a dramatic increase in the sophistication of corporate risk management strategies. How are we going to hedgeagainst fluctuations in the cost of our inputs? And what should we do toprotect against foreign currency fluctuations? If you are familiar withmodels, techniques and derivatives which can be used to manage risk,you will be in high demand.

Did You Ever Build Something? Manufacturing firms often hire corporate finance types with abackground in engineering. Ford, for example, wants people in thefactory who can understand complex manufacturing processes,communicate well with engineers and enjoy complex costing work.Jerome York, the former Chrysler CFO, did a stint running Dodge, andonce worked designing engine parts for GM.

How Are You With People? The best financial professionals are good with people. According

to Fortune , (11/18/95): "Their biggest weakness is a lack of peopleskills," says John Dasburg, CEO of Northwest Airlines. "Finance types areoften curt and colorless. By contrast, the best CFOs are masterpersuaders with a streak of the sales person. They read people as surelyas balance sheets."

Corporate Finance:Job Options

Treasurer Duties involve supervision of Treasury department which is involved infinancial planning, raising funds, cash management and acquiring anddisposing of assets. This is an upper management job which requiresboth analytical skill and the ability to manage and motivate people.

Financial Analyst Duties involve determining financing needs, analyzing capital budgeting

projects, long-range financial planning, analyzing possible acquisitionsand asset sales, visiting credit agencies to explain firm's position,


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working on budgets, analyzing competitors, implementing financialplans, monitoring the the market price of your firm's securities analyzingof leasing agreements and determining needs and methods of dealingwith derivatives. Often you will be assigned to a specific area such as

revenue, planning, capital budgeting or project finance. This challenging job requires good analytical skills, computer skills and a broadunderstanding of finance.

Credit Manager Duties include establishing policies for granting credit to suppliers,setting guidelines for collecting on credit and considering whether tosecuritize receivables. This job requires knowledge of the customer andability to analyze accounting statements.

Cash Manager Duties involve establishing relationships with banks, managing short-term credit needs, ensuring that sufficient cash is on hand to meet dailyneeds, putting excess cash into a concentration account bearing interestand handling international transfers of funds. This job is detail-orientedand requires good ability to negotiate.

Benefits Officer Duties involve managing pension fund assets, setting up employee401(k) plans, determining health care benefits policies and working withhuman resources to set up cost-effective employee benefits. This jobrequires a combination of finance knowledge, knowledge of humanresources management and understanding of organizational behaviour.

Real Estate Officer This job involves finding real estate locations for a company, negotiation

of lease agreements, acquisition of real estate and valuation of properties. This job requires a thorough understanding of finance andreal estate.

Investor Relations Officer Duties involve dealing with the investing public by disseminatingfinancial information, responding to queries from institutional investors,issuing press releases to explain corporate events and organizingteleconferences with investors. This challenging job involves contactswith top-level executives and requires understanding of finance and


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public relations. Many who hold this job have backgrounds in PR oradvertising.

Controller

Duties involve financial planning, accounting, financial reporting and costanalysis. Will get involved in property, revenue, benefits, derivatives,lease and joint interest accounting. May need to develop forecastingmodels to project revenues and costs. May be called on to implement orwork with a complex costing system, efforts at financial reengineering,transfer pricing issues or interface with auditors. This job requiresextensive accounting experience. Often holders of this position enter acompany from a Big Six accounting firm.

Corporate Finance: Salaries

Job Title Salary Financial Analyst - Smaller Firm $35-50KFinancial Analyst - Large Firm $40-50KSeasoned Financial Analyst - Smaller Firm $50-65KSeasoned Financial Analyst - Large Firm $63-81KTax Manager $92-130KAssistant Treasurer $88-113K

Chief Financial Officer$260-390K at big firms95-125K at smallest firms.

Corporate Finance:Facts and Trends

The job outlook in corporate finance is bright.

Strategic and Global Thinkers Wanted

Team Players Thrive

Make a Difference

Door Wide Open to Women


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Value-Based Management is a Huge Trend .

Integrated Risk Management Growing in Importance

Quantitative Skills Trade at a Premium

Pay is Rising

Carry the Torch for Shareholder Value

Be Sure to Develop Negotiation Skills

Get Ready for Challenge

Leadership Skills are Highly Valued

Some Companies are Centralizing Corporate Finance Function


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3. Careers in Financial Planningand Wealth Management

Financial planners and wealth managers help individuals plan their financialfutures. How are you going to cover your retirement needs? What do you have

to do today to put your children through college? This work can be personallyand financially rewarding and requires excellent interpersonal skills. A goodfinancial planner understands investments, taxes, estate planning issues andknows how to listen. This work can be done within a company such as IDSFinancial Services or by yourself, as a sole proprietorship. Most planners gosolo or work within smaller practices. It's essential then that you have a certainamount of entrepreneurship given that you will be running your own business.The work pays well and is rewarding if you like to help people. Increasingly, itpays to obtain the Certified Financial Planner (CFP) designation. An alternativedesignation popular outside of the United States is the Chartered WealthManager. The job outlook for this profession is considered to be good and it isexpected that career opportunities and salaries will grow substantially in thenext decade.

Financial Planning:Skills and Talents

The financial planning sector is booming and offers a variety of career options.This field deals with the largest markets of any kind in the world and call on the

following skills:
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Financial Planning: Salaries

The median salary for financial planners job rankings issue was $70,000 in2008. People that work for companies earn somewhat less and franchisees dothe worst. The salary distribution in this business is highly skewed. The 90thpercentile salary in financial planning is in excess of $200,000.

There are some analogies between salaries earned in this profession and thoseof realtors. Top producers do quite well but there are many, many personswho earn a modest living as a realtor. Similarly, there are many CFPs who earna modest but happy living. Bear in mind, of course, that it takes a number of years to build a strong clientele so that in the early days money will not flowquickly into a practice.

Financial Planning:Facts and Trends

A Helpful and Important Profession Financial Planning is Hot Pay Attention to the Details High Growth Expected in Financial Planning Quite a Few Financial Planners Already CFP Can Help as a Financial Planner

Get Involved High Net worth Individuals are a Key Target


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4. Careers in InsuranceDid you know that some of the hottest jobs infinance aren't on Wall Street at all? These are jobs in insurance. Insurance is a trillion dollarbusiness that employs more than 3 millionpeople in the United States alone. As thepopulation ages and wealth grows, thedemand for insurance professionals willincrease dramatically. This is great news foryou if you're thinking of going in to insurance.Jobs in insurance involve helping individuals

and business manage risk to protectthemselves from catastrophic losses and to anticipate potential problems.Work in this area is not only personally rewarding, but can be financiallyrewarding as well.

Insurance is a stable yet dynamic industry that provides a wealth of advancement and career opportunities. From administrative support tomanagement programs, from sales to information technology, from accountingto customer service ... anything you want to do in business, you can do in the

insurance industry! You will help clients understand their insurance needs,explain their options to them and hopefully help them purchase appropriateinsurance policies. You could work in a variety of areas in insurance includingas an underwriter, a sales representative, an asset manager, a customerservice rep or an actuary. A theme that is constantly emphasized by insuranceprofessionals is that the industry is ultimately about helping people when theyneed it the most. The stereotype of a slick, sleazy, fast-talking insurancesalesman is largely a thing of the past.

Major areas of opportunity include auto insurance, life insurance, P&C(property & casualty) insurance, and health insurance. It's worth noting thatprivate health insurance companies remain central after the 2010 passage of health care legislation in the US and subsequent political developments. If anything, the health insurance industry is likely to grow in size due to efforts toachieve universal coverage.


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Insurance: Skills & Talents

Key Skill Area Requirement People skills: HighSales skills: Medium

Communication skills: HighAnalytical skills: MediumAbility to synthesize: LowCreative ability: MediumInitiative: MediumWork hours: 35-55/week

The Business is about Risk Transfer Insurance companies are in the business of assuming risk by writingpolicies which transfer risks from customers to themselves. This work ischallenging, complex and likely to continue to prosper.

There are a Variety of Key Business Areas Insurance companies are in the business either of providing propertyand casualty insurance (protect owners of cars, business and homesagainst loss and injury); life insurance or health insurance.

Insurance is one of Finance's Best Kept Secrets Insurance may be one of the best kept secrets in the field of finance.Most students do not realize the high growth and enormous potentialfor personal development and advancement that this field offers.

People-oriented Types Who Can Listen Do Well The field of insurance and risk management is well-suited for those whoare good listeners, who enjoy people and are comfortable withquantitative analysis of risks.

Most People in Insurance Don't Sell Many people avoid insurance careers because they perceive that thebusiness is about selling and slickness. Certainly, part of the business

involves selling but keeps in mind that insurance policies help people,


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especially in times of need. Moreover, most jobs in the field do notinvolve direct selling.

Insurance: Job Options Actuary

Actuaries use their analytical skills to predict the risk of writing insurancepolicies on property, businesses and people's lives and health. Why doesautomobile cost so much more if you under the age of 25? Because anactuary somewhere found that the risk of insuring automobiles is highlyage-dependent. Actuaries are a crucial part of the insurance processbecause they use statistical and mathematical analysis to determine therisk of providing coverage. To perform effectively, actuaries must be

informed about general societal trends and legislative developmentswhich may affect risk. Actuaries can work either within insurancecompanies or for government, pension planning organizations or third-party advisors.

Agent and Broker Agents and brokers advise people and organizations on how to protectthings they value by selling customers insurance contracts. You will bethe first person contacted after an accident, fire or injury. Anunderstanding of insurance contracts is essential to this type of occupation. A career as an agent or broker can be financially rewarding.This work is highly time-flexible, requires some background in businessand is best if you enjoy interacting with people.

Claims Adjuster Adjusters negotiate insurance claims with people have experienced aloss. The adjuster is responsible for reaching a claim settlement that isfair to all parties. Doing well in this job requires a person who isresourceful, tactful and good with people. Some adjusters work in thefield, while others work out of an office.

Service Representatives Service representatives are the link in the field between agents who sellpolicies and insurance companies who write the policies. Field

representatives must be good listeners and communicators. Thisposition requires knowledge of your companys products and ability to


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establish good rapport with those working for your companies. Abackground in liberal arts can be a great preparation for this type of position.

Loss Control Specialist As a loss control specialist your job is to help keep accident and losses toa minimum. You will visit factories, shop floors and businesses to identifypotential hazards and help to eliminate them. In the health insurancearea you might work with an organization to promote preventive healthcare in the workplace or to limit exposure to certain types of ailments.This work requires an understanding of safety management orengineering. A combination of a technical major and a business majorwould be outstanding preparation for this job.

Risk Manager A risk manager is employed by an organization to help identify the risksthat it faces and to make recommendations for dealing with these risks.The recommendations may include the purchase of insurance, adoptionof precautionary measures and presentations to upper management.Risk managers are involved in the management of employee benefitplans. Valuable skills include knowledge of the insurance industry and of

business practice as well as skill in making presentations to uppermanagement.

Underwriter Underwriters decide whether to provide insurance to applicants seekingcoverage. An underwriter evaluates an applicant's exposure to risk anddecides whether an applicant meets an insurer's standards. Anunderwriter may also become involved in setting prices for insuranceapplicants.


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Insurance: Salaries

Salary ranges in the insurance industry are currently as follows:

Career Typical Salary Actuary Entry Level $50,000-80,000

Actuary - Senior $160,000-400,000

Agent/Broker $40,000-70,000Claims Adjuster $40,000-50,000Underwriter $45,000-80,000

Insurance: Facts & Trends

Build a Framework Huge Part of the Economy A Big Employer Hiring is Strong Demand for Insurance Products Rising Malpractice Insurance a Growth Area Not All Companies Will Survive IT Types in High Demand Health Insurance Area Hot Banks Playing Important Role


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5. Careers-in-Investment-BankingInvestment Banks help companies and governmentsissue securities, help investors purchase securities,manage financial assets, trade securities and providefinancial advice. The top investment banksincluding Goldman Sachs, JP Morgan and MorganStanley are said to be in the bulge bracket .

Other investment banks are regionally oriented or situated in the middlemarket (e.g. Piper Jaffray) . Others are small, specialized firmscalled boutiques which might be oriented toward an industry vertical, bond-

trading, M&A advisory, technical analysis or program trading. Firms have lotsof different areas and groups within them. In most firms, there is sales andtrading which works with owners of securities, investment banking whichworks with issuers of securities (firms and governments) and capital marketswhich goes in between the other two.

Investment Banking:Skill and Talent Requirements Investment banks want

employees with a combination of strong analytical and interpersonal skills.Some jobs lean more towards one skill set than another (e.g. brokers need to

be mainly sales people). A typical job of an equities analyst requires bothanalytic and interpersonal skills. The skills involved include:

Key Skill Area Requirement People skills: High

Sales skills: MediumCommunication skills: HighAnalytical skills: High

Ability to synthesize: HighCreative ability: HighInitiative: Medium

Work hours: 50-120/week

Hard Work Expected and Respected Investment banking is a high work, high risk, high reward profession.When you start your hours will typically be long but the work can be

exciting. Be prepared for moments of frustration where you arestretched too thin and moments of exhiliration where everything clicks.
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Tough to Break In

It's relatively hard to break into investment banking. You need to beprepared to pursue firms on your own after you have thoroughly

prepared yourself.

Analyst Jobs Are the Best Entry Point Many college graduates start in investment banking inan analyst position. To succeed in these positions you need to beextremely dedicated, have good spreadsheet skills and be analyticallyfluent. Your next step will be to become an associate. Same skills justraise the volume.

Communication and Completion Abilities Key In mid-career, your success usually will depend on your ability tocommunicate with clients and get deals done. At this level it is alsoimportant to have a good understanding of market trends, the politicaland macroeconomic environment and deal mechanics.

Math Skills Can Help Some jobs in investment banking call for very strong mathematicalability. If you are good at math think about getting an advanced degreein a technical field (studying areas such as stochastic calculus anddifferential equations), then take some advanced finance courses inoptions pricing or bond valuation and apply to a research department onWall Street.

Accounting Skills Valuable

The ability to analyze accounting numbers critically is important in mostanalyst positions. Ultimately, you should aim for the CFAdesignation if you would like to be a securities analyst. The CFA helps you becomemuch more mobile over time. If you have ambitions too "bail out" someday and become a corporate financial analyst you might also want toconsider the CMA (Certified Management Accountant) designation.

Traders are Multi-Talented It's hard to define what makes a good trader. A good understanding of the market, quick reactions, analytical skills and the ability to bluff help.
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Teamwork Crucial

A crucial success factor in investment banking is teamwork. Being able topull together persons with large egos to get a presentation together for

a client is a challenge and is likely to be rewarded highly.

Scientists and Lawyers Wanted There's definitely an interest in people with backgrounds in science andlaw. Scientist types can work on everything from derivatives algorithmsto biotech banking. Lawyers can help design new securities, sell leasingbusiness and use their analytical prowess to talk to clients. This said, youhave to sell yourself. It often doesn't hurt to go back and get an MBAfrom a top school, and then try to repurpose your career intoinvestment banking.

Contacts are Everything The key to breaking into investment banking is a good network of contacts. You may already be blessed with such a network, but if youdon't have one, you can start to develop one by going on informationalinterviews, attending industry conferences, finding alumni from yourschool in the business etc. Our contact lists may be helpful in this

process. Keep in mind that your network might not really "pay off" forsome time. If you are young and haven't gone for an MBA degree, try toget into the best possible school and then go for quantitative andanalytical coursework.

Getting Things Done is Important Starting off in an investment bank, you are usually responsible forgetting projects done well and on-time, whether it be writing reports,running spreadsheets, trading, doing research or coding programs. Later,once you get involved with clients and ideas for generating revenue, you

will be rewarded greatly if you can bring in business. At higher levels(usually Director, Managing Director and up) you are exposed to muchgreater risk. At this level, people are often fired for non-performance,whereas at lower levels you may not be scrutinized as closely.
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Investment Banking:Job Options

By far the most common route into investment banking for someone just

finishing an undergraduate degree is to be hired into a bank's analyst program.MBAs are generally hired as associates. Analysts and associates work withinspecialized groups but they may not always have control over the group towhich they get assigned (analysts especially). Some of the most commongroups found within investment banks are described below, along with thework they do. If you're a new graduate interested in one of these areasspecifically, learn as much as you can about the area that intrigues you so thatyou're best positioned to be assigned to that group, but understand that you'llmost likely be looking for a job as an analyst or associate.

Industry Coverage Most large investment banks have an area called investment banking,IBD, IBK, CIBD, "banking" or something that denotes industry-focusedinvestmentbanking. These organizationsare organized into productgroups (e.g., privateplacements) and industrycoverage groups (e.g.,aerospace).

Usually when you startin "banking" that means thatyou will likely end up in acoverage group. Obviously, itpays to get into a group thatis in area that interests youand that is doing good deals.

Corporate Finance In a corporate finance position you would work to help companies raisecapital needed for new projects and ongoing operations. You wouldwork to determine the amount and structure of fund needs of a clientthrough equity, debt, convertibles, preferred, asset-backs, or derivativesecurities. As a starting analyst in corporate finance you would usuallywork on a client team and would have responsibilities to prepare

World Financial Center, NYHome to Several Investment Banks
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registration statements, attend road shows where investors are sold onsecurities etc. Barclays,Citigroup and JP Morgan are acknowledgedpowers in corporate finance. Sometimes jobs in corporate finance arereferred to as investment banking positions.

Capital Markets This position can be either in Debt Capital Markets or Equity CapitalMarkets (ECM). Debt Capital Markets (DCM) is often broken down intohigh yield bonds and investment grade bonds. Sometimes, there areseparate desks for origination of sovereign, supranational or municipalbonds. Capital markets officers help companies originate new issues of debt or equity.

Mergers and Acquisitions Setting up deals where one company buys another isan important source of fee income for manyinvestment banks. When this area is hot on WallStreet, it can be hugely profitable. But even whencapital markets conditions make it difficult forcompanies to finance acquisitions, as they did in the 2008/09 recession,strategic mergers continue to happen and banks that specialize in M&A

continue to do deals, albeit at a lower volume. If you go to work in thisarea you would help out with a team which acts as an advisor to a client,values transactions, creatively structures deals and negotiates favorableterms. Worldwide, Goldman Sachs ,Lazard and Morgan Stanley are therecognized leaders in M&A advisory.

Project Finance Project finance involves funding infrastructure and oil capital projects off of a company or government's main balance sheet. Project financed

deals have been some of the first significant conduits of foreign capitalinto countries such as China, Yemen and Indonesia. When other sourcesof borrowing dry up, project finance is generally still there.

Trading Some of the most desirable jobs in investmentbanking are in sales and trading. Yourresponsibilities would involve undertaking
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transactions in equities, bonds, currencies (referred to as Forex or FX),options or futures with traders at commercial banks, investment banksand large institutional investors. Trading can be tumultuous and requiresa thorough knowledge of markets, financial instruments and an intuition

for human psychology. Equities trading positions often involve "telling astory" to other traders about why they should purchase your stock.

Structured Finance Positions in structured finance involve the creation of financing vehiclesto redirect cash flows to investors (known as asset-backed securities).Typical asset-backs securitize credit card receivables, auto loanreceivables or mortgages. This market fell into some disrepute in 2008as one type of asset-backed security--collateralized mortgage obligations(CMOs)--spread the pain of the burst real estate bubble far and wide,but the use of structured vehicles generally is likely to survive andeventually thrive again.

Derivatives Derivatives derive their value from another primitive security. Options,swaps and futures are examples of derivatives. The market forderivatives is gigantic and subject to increasing scrutiny. The derivatives

business is highly profitable and the demand on Wall Street for skilledderivatives practitioners has been very high. This market is likely to seefurther innovation in the forms which swaps take and in the area of exotic options.

Advisory Advisory services are often provided by investment banks to public andprivate clients involved in M&A and financings. The areas of capitalstructure advisory, valuation advisory and risk management advisory

have been popular at many investment banks. Often work will be doneto determine a client's value, options for creating value or on a client'sindustry conditions.

Equity and Fixed Income Research Security analysts are usually assigned to an industry or region. You couldbe responsible for making buy or sell recommendations to investorsabout a stock or bond. Your duties would involve visiting companies andheavy telephone contact with institutional investors. Investment banks


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often like to hire people with industry experience into analyst positions(as opposed to fresh MBAs or undergrads).

International Sales/Emerging Markets

An area of continued growth is in international sales. Despite many pastdisasters like the Asia crisis in 1997, investor demand for securitiesissued in emerging markets typically comes back strong. Firms aremeeting this demand by providing sales personnel and analystsspecialized in these markets

Public Finance The market for municipal bonds is very large and calls for analysts,municipal advisors and traders. Positions in public finance are usuallydifficult to obtain but offer high rewards. Persons with previousexperience in public administration would be attractive to investmentbanks in this capacity. A major growth area in municipals is in the projectfinance area.

Retail Brokerage / Private Client Coverage / Stockbroker Private Client Bankers / brokers are in the business of selling stocks,bonds, insurance and other investments to individuals. Some brokers

specialize in high net worth individuals while others span a variety of clients. This is a tough business to get started in (especially if you aremuch younger than your clients), but the rewards to a good peopleperson with great sales skills are high. Many brokers earn upwards of $500,000

Ratings Analyst One way to break into investment banking is to start as a ratings agencyanalyst. The pay is relatively low and advancement opportunities aren't

great, but the investment banks know it and use the agencies as huntinggrounds for new analysts.


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Investment Banking:Facts and Advice

A good time to send your resume to an investment bank is in November andDecember. Don't forget to check back. Investment banking is bounding back after the financial crisis. Investment banking is one of the most global businesses on earth. Investment banking is seeing massive consolidation. The investment banking business is notoriously competitive. Investment banks are facing declining margins on bread and butter business. Pick the first firm you work for carefully. Investment banking is generally transaction driven.

Investment Banking: Salaries . Forecast salary ranges in the 2010 to 2012 period are as follows:

Salaries in Investment Banking (with bonus)

Job Level Salary Range Typical All-inComp

Prerequisite(degree/yrsexperience)

First Year Analyst $90K - 150K $125K Bachelor'sThird Year Analyst $120K - 350K $165K Bachelor'sFirst Year Associate $150K - 250K $180K MBAThird Year Associate $300 - 500K $350K MBAVice President $350K - 1MM $700K 3-6 yearsDirector / Principal $400K - 1.5MM $900K 5-10 years

Managing Director /Partner

$500K - 20 MM $1.5 MM 7-10 years

Department head $800K - 70MM $3.5MM 10+ years

Note: This table is based upon conversations with banking insiders about yearly bonuses expected to be paidbetween December 2010 and February 2011. MM denotes millions. K denotes thousands of US dollars.
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6. Careers in Money ManagementDo you like to look behind the numbers? Do youlike to analyze market trends? Do you get anadrenaline rush when a stock takes off? If so,then money management may be the career foryou. Money managers hold stocks and bonds forinstitutional clients and are on the buy side of Wall Street. Some money managers use the latestsophisticated quantitative techniques whileothers do very well using simple intuition.

Each investment manager has their own uniquestyle. The key to being successful is to havediscipline, be broad-minded and be willing to admit defeat if an investmentgoes against you. Many money managers buy and hold fixed income securitiesincluding mortgaged-backs, corporate bonds, agency securities and asset-backed securities. Others focus on equities, including small stocks, large capsand emerging market stocks.

Unfortunately, it is hard to get started in investment management. It is

particularly hard to start working for the best money managers or a top mutualfund. Good places to start are in bank trust departments, state and localpension funds and in insurance companies. Many people cross over intomoney management after getting years of experience on the sell side of thebusiness in investment banks. Perhaps one of the best ways to break in is onthe marketing side.

If you have the social skills and intelligence required to market moneymanagement services, there will be many companies interested in hiring you.

To get started today, be sure to study portfolio theory, learn fixed incomeinvestments, take the CFA exam and, above all, learn the industry. And then,with a little luck, you will enjoy one of the most personally rewarding careers inthe world of business: Money Management.


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Money Management:Skills & Talents

The money management industry is booming and offers a variety of careeroptions. This field deals with the largest markets of any kind in the world andcall on the following skills:

Key Skill Area Requirement People skills: MediumSales skills: Medium

Communication skills: MediumAnalytical skills: HighAbility to synthesize: High

Creative ability: MediumInitiative: MediumWork hours: 55-75/week

On the Buy Side The field of money management involves working on the opposite sideof the fence from the investment banks. That is why this field is knownas the "buy side."

Must be Able to Take Risk Money managers get to face the challenges of investing. If you like theexcitement of selecting investments and can deal with the uncertainty of waiting for the payoff this field is for you.

It's Important to Have a Broad Understanding of Business One of the exciting things about investing is that you get rewarded forknowing how business works. People who understand and enjoybusiness are among the most likely to succeed in this arena.

You Gotta Hang In There

You need to be a tenacious person to succeed in money management.It's tough to break into the business but once you have experience, the


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rewards can be high. Be prepared to hang in there through some toughtimes.

Approaches are Diverse

There are many styles and approaches to investing. You can approachthe field in a very technical way with heavy reliance on computers or,instead, resort to a common sense, low-tech approach. One of theleading investors of our time, Warren Buffett, employs a small staff andspends little time with quantitative models when making investmentdecisions.

Think About How You Are Going to Get Started Because it is so hard to break into money management it is advisable tothink carefully about your entry strategy. You have to bring something tothe table in an interview that others can't. This will either be superiorknowledge and understanding or experience. A good place to start is toget experience in investing by working for a public pension fund, a banktrust department or for a mutual fund.

Money Management:

Job Options Portfolio Manager Portfolio managers will usually work for a money management firm orpension fund to select and manage investments which meet the goals of a group of investors. Many managers now work in specializedcommodity funds or hedge funds. Portfolio managers have differentstyles ranging from a bargain-hunting approach (value investing) to agrowth stock selection approach. This work requires patience, disciplineand a strong understanding of financial markets and companies.

Portfolio Management Marketing If you are outgoing and knowledgeable, then you might consider a salesposition in portfolio management. This means that you will spend a lotof time putting together presentations for clients (working with theportfolio manager). Each presentation needs to be put together verywell and calls for hours of work and strong knowledge of the firm. Firmsoften are looking for seasoned professionals in this position. People whocommand respect and trust when making recommendations about waysto invest large sums of money. Expect heavy travel and good pay.


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Investment Advisory

There is a large industry of firms which provide investment advice,performance evaluation and quantitative analysis to the money

management sector.

Mutual Fund Analyst Many mutual funds and large pension funds require analysts to do theanalytical work required before an investment is made. Is a particularmunicipal bond safe? What is its interest rate risk as measured byduration and convexity? What other features of the security areimportant to understand before purchase? This work is analytical andrequires a working knowledge of computers, perhaps in theprogramming dimension. Most mutual fund analysts truly enjoy their jobs because of the sleuthing involved and the fact that the work isdifferent every day.

Hedge Fund Principal/Trader Hedge funds are opportunistic, private funds which invest in stocks,bonds, currencies and derivatives often using significant amounts of leverage. These funds hire analysts and traders and have exhibited rapid

growth in recent years.

Money Management: Salaries

Salaries in money management are likely to be mainly a result of performance.Starting analyst positions for undergraduates at leading mutual funds, pensionfunds and bank trust departments have salaries in the neighbourhood of $60,000 to $80,000.

In the world of equity portfolio managers, there is high dispersion of pay. A jobat a state pension fund or a bank trust department will pay in the $90,000 to$180,000 range. Once you are out into a private fund or a money managementoutfit, salaries can rise quickly if you have a record of strong performance.These days, we hear numbers on the order of $500,000 rather routinely andnumbers north of a million on occasion for equity managers. Certain hedgefunds have managers who make over $50 million a year.


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Money Management:Facts & Trends

Educate Yourself. Succeeding as a Money Manager is Challenging. Breaking in Tough. Indexing is Gaining Momentum. Hedge Funds Getting Tougher. Mutual Funds are Enormous. Professional Managers are Big. Pay for Performance Expanding. Money Management is going Global. The Mutual Fund Business is facing Ferocious Competition. On the Whole, Money Managers Don't Beat the Market.

7.Real Estate Careers Overview

As you read this, more than seven million people in the United States have jobs in real estate fields such as title insurance, construction, mortgagebanking, property management, real estate appraisals, brokerage and leasing,and real estate development. In addition, many are engaged in corporate realestate and in real estate lending in commercial banks, savings and loans, andinsurance companies where their jobs are included in counts of jobs in the realestate sector. Over a third of the world's wealth is tied up in real estate. Realestate is collateral for mortgages and a large amount of financial assets. Of course, at present, the markets are weak in housing and real estate but thisfield is not going away. It is also worth recognizing how interesting jobs in realestate are. Real estate professionals are tied to the development of our societyin a very direct way and participate in decisions that will shape the way we livefor centuries. Work in real estate is personally rewarding, ever-changing andchallenging. Take some time and consider your potential in the field of realestate.


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Real Estate:Skills and Talents

Real estate employers are looking for people with a combination of strongdeal-making and interpersonal skills. The skills involved include:

Key Skill Area Requirement

People skills: High

Sales skills: Very HighCommunication skills: High

Analytical skills: MediumAbility to synthesize: LowCreative ability: MediumInitiative: HighWork hours: 20-70/week

Excellent Job Opportunities The field of real estate involves the sale, management and analysis of land and properties. This is one of the largest parts of the economy andoffers excellent job opportunities.

The Field is Highly Entrepreneurial Real estate jobs tend to be more entrepreneurial and createopportunities to become wealthy if you have the right mix of analyticalskills and entrepreneurial drive.

There are Many Ways to Play the Field One of the exciting things about real estate is that it can be approachedfrom so many different ways. You can be a white-collar workerprojecting and analyzing cash flows from new developments withspreadsheets; an agent in the field with heavy contact with customerson a day to day basis; or an entrepreneurial property owner/managerlooking for undervalued real estate buys and strategies for creatingvalue.


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Multiple Entry Points Available There are a variety of ways to break into real estate. If you areinterested in the sales side you need to get licensed and should go towork for a commercial or residential broker. If you would like to get

involved in property acquisition and analysis you should get a higherdegree with a specialization in real estate and go to work for a majorproperty management company. There are also many other ways toenter including through corporate site selection departments,governmental entities and banks.

Real Estate:Job Options

Residential Real Estate Agent/Broker Real estate agents and brokers are usually independent salesprofessionals who contract their services to real estate brokers inexchanges for a commission-sharing agreement (normally six percent).

There are over 400,000 real estate brokers and agents in the UnitedStates. To become a broker you must be at least 18 years old, a highschool graduate and have passed a written test on property laws andreal estate transactions. Most states also require 30-90 hours of classroom training.

Commercial Real Estate Sales Commercial property brokerage offices use sales associates who marketoffice buildings, hotels and many other types of commercial real estate

for brokers. Commercial real estate sales people usually specialize in aparticular property type such as apartments, retail, office, hospitality,shopping centers and industrial plants. Most of the large commercialbrokerage companies in the United States provide a great deal of localmarket data and research in order to be able to service a cadre of sophisticated clients who are making multi-million dollar investmentdecisions.


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Real Estate Appraisal Real estate appraisers provide unbiased estimates of a property's valueand quality. Appraisers usually work for banks or for appraiser firms andwill normally value properties by finding comparable sales in an area or

by estimating the discounted value of cash flows expected from aproperty. This profession is less cyclical than real estate brokeragebecause appraisers are required when homes are refinanced-a timehistorically when the real estate market has been slow.

Property Management Leading real estate owners require professional property managers.Managers are responsible for negotiating leases, ensuring that tenantsare satisfied, that rent is paid and that rents reflect market conditions.The career of property manager requires good interpersonal andanalytical skills and a fair amount of negotiating prowess. This job ispersonally rewarding and allows you to really learn the real estatemarkets should you wish to embark in business on your own

Real Estate Advisory Institutional investors are purchasing real estate more and more. Butreal estate is not like a stock or bond that you can buy and put in a vault.

Real estate advisors help investors care for property and, moreimportantly, select property in the first place by suggesting areas andproperty types that are likely to experience price appreciation in thefuture. This job is fun and one that you can get into after gettingexperience in investing or property management. People who are goodwith statistics and excel at client contact do well in this job.

Investment Banking Many investment banks have groups dedicated to real estate,particularly the repackaging of mortgages into residential mortgage-backed securities (MBS), collateralized mortgage obligations (CMOs) andcommercial mortgage-backed securities (CMBS). Other popular areasinclude the REIT stock, bond and preferred stock origination business,lodging investment banking, principal investing in real estate andsynthetic lease origination. If you have an interest in both real estateand investment banking, why not go for both areas at once?


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Development and Construction Are you willing to work hard and take risks to develop new properties?Then a career in real estate development may be for you. You can enterthis business working for another developer, moving up to construction

manager, or you can strike out on your own, starting with some smallertransactions. Good developers are results-oriented and know how to getwork on time which involves managing labor, establishing timeestimates, getting appropriate equipment operators and constructioncrews.

Real Estate Entrepreneur Real estate is one of the last bastions of the free-enterprisingentrepreneur who buys properties in hope that they will rise in valuebecause of improvement in market conditions or renovations.To make itin this career you need to be savvy, hard-working, willing to take risksand fortunate. Remember, their are others who would also like tobecome wealthy in real estate who will be bidding on the same dealsand properties that you will. It is important, then, to think carefully of how you can succeed in this market through better wits, a superiormanagement approach or a unique niche strategy.

Real Estate:Facts and Trends

Experience in real estate is key. REITs are hot. Negotiation Skills are Crucial. Technology is becoming much more important in real estate .


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