Getting Started in

Investment Banking

Scott FoleyThe Careers Service

What we’ll cover

• Introduction to investment banks

• Where to find jobs

• Getting experience

• Understanding finance

• Getting in

• The selection process

• Careers support

What do these terms mean?

• IPO

• FTSE

• M&A

• Bond

• Equity

• FX

• Bull Market

• Bear Market

What do these terms mean?

• IPO – Initial Public Offering

• FTSE – Financial Times Stock Exchange

• M&A – Mergers & Acquisitions

• Bond – A form of loan taken by an organisation

• Equity – A share (or stock) of a company

• FX – Forex, the market in which currencies are traded

• Bull Market – A rising market

• Bear Market – A falling market

What are investment banks?

• A type of bank that works with large

organisations

• Help them to raise capital

investment

• Provide advisory services

• Provide access to the financial

markets

Who are the investment banks?

What do Investment Banks do?

1. Proprietary trading- Trading their own money on the stock market

2. Market making- Being willing to buy and sell so markets flow smoothly

3. M&A (advisory) - Advising clients on mergers and acquisitions

4. Corporate events/new issues (e.g. IPO)- Helping clients raise capital (e.g. issuing new shares)

- Underwriting it

5. Structuring products (advisory)- Creating products based on multiple investments

- Clients include other banks, pension/life insurance companies

Areas & roles: Front Office

Primary Markets (IBD)• Corporate finance• Debt capital markets• Equity capital markets• Private Equity• Mergers and Acquisitions

Secondary Markets• Bond markets• Equity markets• Derivative markets• Foreign Exchange markets• Private banking• Wealth management• Corporate banking• Fund management

Areas & roles: Middle Office

Primary Markets (IBD)• Corporate finance• Debt capital markets• Equity capital markets• Private Equity• Mergers and Acquisitions

Secondary Markets• Bond markets• Equity markets• Derivative markets• Foreign Exchange markets• Private banking• Wealth management• Corporate banking• Fund management

• Compliance• Money laundering team• Risk Management• Treasury• Capital Flow

Areas & roles: Back Office

Primary Markets (IBD)• Corporate finance• Debt capital markets• Equity capital markets• Private Equity• Mergers and Acquisitions

Secondary Markets• Bond markets• Equity markets• Derivative markets• Foreign Exchange markets• Private banking• Wealth management• Corporate banking• Fund management

• Compliance• Money laundering team• Risk Management• Treasury• Capital Flow

• Operations• Settlements• IT

Jobs & Information

Information on Investment Banking careers

careers.manchester.ac.uk/whichcareer/finance/banking

Careers Service website & ‘Graduate Job Search’

manchester.ac.uk/careers/findjobs/

Finding jobsmanchester.ac.uk/careerslink

Access CareersLink

(My Account) from any page on the Careers

website

CareersLink

Use

‘Advanced

search’ for

more options

Get email

alerts for new

jobs

Getting work experience

• Spring Internships (First year)

• Summer Internships (Second year)

• Placements (Second year) – not very common

• A few days/couple of weeks (any year) – need to negotiate

• ‘Off-cycle’ Internships (Graduate/year out) – rare

Other things for your CV

Societies

• MUTIS

• Campus Capital

• Manchester Investment Fund

Virtual trading games• virtualtrader.co.uk

• investopedia.com/simulator

• jpmorgan.com/fantasyfutures

• Apps: Stock Wars, Trading Game (Shares & Forex), ReTrader

Find a mentor who works in banking: Manchester Network

manchester.ac.uk/careers/findjobs/mentoring

Understanding finance - resources

Finance terminologyinvestopedia.com/university/

askivy.net (articles are free)

efinancialcareers.co.uk

unofficialguidetobanking.com/

Understanding finance - resources

• Financial Times

• The Economist

• The Times / The Telegraph

• Finimize news

• Moneyweek channel

youtube.com/user/MoneyWeekVideos

• Morning Star www.morningstar.co.uk

Getting in – What Are Banks Looking For?

• Academic excellence: 2.1 degree

• Genuine interest in finance & the markets

• Understanding of what area you are applying for

• Commercial awareness

• Numeracy and problem solving

• Relevant experience/internships

• Good communicators

• Leadership potential

• Flexible and responsive to change

Getting in – Selection Process

• CV and covering letter (some banks like 1 page CV)

– JP Morgan, Morgan Stanley, BOA Merrill Lynch, other US banks

• Online application forms

• Psychometric tests (verbal, numerical, situational, games)

• Interviews (Video and in-person)

• Assessment centres

Most candidates (80%+) fail at the first hurdle

Resources to help you:

manchester.ac.uk/careers/applicationsinterviews

Commercial and technical questions

• What is the FTSE average as of today’s opening bell?

• Would you invest in UK real estate now?

• Tell me about some stocks you follow. Why should I buy

them?

• Why would you or would you not invest in Apple?

• What are the different methods of valuation and what are their

pros and cons?

• What is working capital?

• Why should a company prefer debt capital to equity capital?

Tips on answering these and more at: bit.ly/LBinterviewquestions

Brain teasers - example

A snail climbs a 10 foot pole. It climbs three feet every day

and sleeps at night. While sleeping, it slides down by one

foot. In precisely how many days does it reach the top?

You might think the snail climbs a net of two feet a day and so reaches

the top of the 10 foot pole at the end of five days. This is incorrect.

On the morning of day five, the snail starts out at the eight foot mark

after sliding down from the nine foot mark overnight. It reaches the top

of the pole two thirds of the way through the fifth day and then stops,

because there’s nowhere else to go. So the answer would be 4.66

days, or 4 and 2/3.

Events coming up

• Meet the Professionals: Banking & Finance 3rd Oct

• Invesco 3rd Oct

• Schroders ‘Women in…’ Insight 4th Oct (London)

• Clearwater Introduction to Corporate Finance 8th Oct

• Bank of America Wholesale Credit case study 9th Oct

• The Big Careers Fair (Day 2) 10th Oct

• HSBC Personal Branding workshop 22nd Oct

• RBS presentation 22nd Oct

• Investing in Talent (banking) 25th Oct (London)

• Mitsubishi UFG Financial Group Female Insight 7th Nov (London)

Find these events and others in CareersLink

manchester.ac.uk/careerslink

Careers help and support

• Help whether you have a clear idea of what

you want, or don’t know where to start

• Advice on finding jobs and further study

• Sector/occupation information

• Applications advice

• Advice on LinkedIn / social media

• Simulation interviews

• Practice psychometric tests

• Mock assessment centres

• Download the slides from this talk at:

bit.ly/careertalks

Follow me on Facebook for updates, and if you have a quick query please get in touch!

www.facebook.com/scottfoleycareers

Where to find us

www.manchester.ac.uk/careersTel: 0161 275 2829

Email: careers@manchester.ac.uk

“The Atrium”

1st floor

University Place

AMBS East