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How has the current economy affected Investment Banking?
In my opinion, it has actually gotten easier to get a job in investment banking these days. Couple of reasons. First, a lot of people left the industry, so it has created a vaccum of talent. Second, the industry has become less attractive in the minds of people - but in fact, I disagree. This is a cyclical industry, with ups and down - people tend to forget about this.
On salaries, the salaries have gone up substantially in some firms, but bonuses have come down. This is to avoid another media backlash, but bonuses are not going to disappear.
From what I have seen, recruiting is shooting up. Talent is more scarce, banks have fired too many people, and M&A activity is picking up as credit becomes more available and valuation expectations become more realistic. On top of that, a lot of people are trying to take advantage of low stock market valuations to get assets cheaply, and additionally the companies that did not do well in the crisis are starting to sell assets.
So combine the higher activity with less talent available - that means that recruiting has and will continue to pick up in the short to medium term!
Interesting post, what I have noticed and some of my colleagues at university is the fact that during the downturn a lot of redundancies created opportunities for interns (12 month placements). This is just some ways employed by organisations to drive down costs.
What is your opinion on the graduate market in 2011? How long will it take to be able to switch locations (not divisions) after entering as an Analyst for example?
Bandits at 8 O'clock move in behind us, Ten ME-109's out of the sun. Ascending and turning our spitfires to face them, Heading straight for them I press down my guns.
It is my opinoin that te graduate market in 2011 will be one of the best since 2007. I wish I was a 2011 graduate!!
That 12 month placement thing is increasingly common in Europe. That is how the French banks can stay cost competitive actually, they have an army of well educated interns willing ot work hard in every location globally! I'm quite amazed by that...it is a good experience for interns tough, so it works both ways.
The basic rule if you want ot switch location is that you have to wait either 2 or 3 year at one location (depends on the bank), and then you can ask for a transfer or a rotation. The London-New York-Hong Kong "switch" is quite common nowadays.
Well I guess that the decision to do an 12 month internship (year out of uni) is the right one, I want to be able to compete for jobs in various organisations.
Hong Kong is the ideal place where I would love to stay and work for a couple of years. Do you need to wait 2-3 years prior to making the London - Hong Kong switch?
Bandits at 8 O'clock move in behind us, Ten ME-109's out of the sun. Ascending and turning our spitfires to face them, Heading straight for them I press down my guns.
you dont abosolutely need to - you can go to HK directly when applying for jobs, but its a bit tough if you dont speak mandarin or any Asian language.
Another thing is that if you are transfered, you carry more "prestige"...People will perceive you as coming from a big financial center and bringing expertise. Whereas if you go directly people may perceive you as "FILTH" ("Failed In London, Try Hongkong"), that is a common term used.
If you want to work in Asia for a couple of years, you also have to plan your return! So its easier to go there on a transfer, and its better to wait 2 years before that so you can fully enjoy the experience.
You may want to try an internship there if you get the opportunity, or spend a bit of time in China/HK after graduation (between graduation and starting work) to get an idea of how it is! (may want to take a few chinese classes for example, looks good on CV)
Thank you for the advice never thought of "FILTH" but completely agree with you re: bringing expertise and being regarded in a different way.
I have passion for Asia especially HK, have spent numerous times travelling in HK as well as across different provinces in China. have been learning Mandarin for 6 months as part of the Uni Name International opportunities. I would love to do an internship at HK prior to commencing my graduate job back in London.
From you experience in the markets, how the outlook for Russia? in terms of the volume of transactions etc. Do you think that it could be the next big thing?
Bandits at 8 O'clock move in behind us, Ten ME-109's out of the sun. Ascending and turning our spitfires to face them, Heading straight for them I press down my guns.