Why are you guys still interested in markets?

I don't really go on campuses anymore representing my banks at banking fairs, so for the last 2 years I have had little contact with undergrads etc...

I interviewed about 4 potential juniors recently, then decided against hiring someone without a client base. The only thing I really saw was that the guys 1) either just got laid off, or 2) could not find a single job; it was more a: "there is a job in banking, will try and get it even though i don't know about it". Brilliant people, with eye watering CVs; just an absolute shocker that they were still unemployed.

Given the massive hiring freeze, the over-bloated effectives in equities and fixed income, and the general beating banks have been taking. What makes you keep on going? The massive base salaries banks seem to pay? Or are you still hoping to get a nice bonus at some point? What's the carrot?

I'd be curious to know about people that are interested in markets strictly speaking, no bankers. Bankers are messed up in their own ways.


Bonus Bananas January 11, 2013

1) Secret Goldman Team Sidesteps Volcker After Blankfein Vow (Bloomberg) - Sneaky, sneaky Goldman. But either I'm more in the know than I thought or these guys aren't really that secret, because I've been hearing about MSI for awhile now.

2) Deutsche Bank To Cut Investment Banker Bonuses by Average 15%-20% (Fox Business) - Well, sucks to be in IBD at DB this year. It's not too often IBD is specifically targeted for bonus cuts.

3) Death Of The Hedge Fund Short Seller (Forbes) - If you're trading for size on the short side these days, you don't even have to be wrong to lose money. The fees involved with holding a short position have gotten ridiculous.


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Dr. Evil's Trillion Dollar Coin

It is first-order, stupid humor to make fun of this trillion dollar coin idea with a Dr. Evil joke. But I can't resist. I also can't resist calling it the Diet Coke of evil.

So I'm sure by now everyone has heard of this ridiculous trillion dollar coin idea, and while I don't think anyone understand the mechanics of it (certainly not anyone in Congress, whose members don't even know how a bond works), what the dummies do understand is that it is an end-around on the deficit, and that's all they care about. So let me walk through this step by step and try to deconstruct what would happen if we actually did this.

So the Treasury has the authority to mint whatever they want to mint. For background, let it be known that the silver bullion coins that Treasury mints are a $1 denomination (interestingly, they are $5 in Canada) and the gold coins are a $50 denomination. Currently, platinum coins are a $100 denomination (paradoxically, because platinum is cheaper than gold nowadays), but have not been minted in the U.S. since 2008.

Now, Treasury can make bullion coins whatever denomination they want (leaving aside the whole discussion about how dimes and quarters are essentially made of junk and the whole seigniorage phenomenon). So, yeah, if they want to mint a trillion dollar coin, they can mint a trillion dollar coin.


2012 League Tables Are Up!

Let me know if you guys find something different. These are pulled from Thomson One.

Legend: Rank, Name, Deal val total, mkt share, # of deals

TABLE 1: WORLDWIDE ANNOUNCED (2012)

1 Goldman Sachs & Co 717,829.52, 27.6, 433
2 Morgan Stanley 548,356.79, 21.1, 391
3 Barclays 471,371.17, 18.1, 276
4 JP Morgan 444,214.27, 17.1, 285
5 Citi 428,598.35, 16.5, 255
6 Credit Suisse 401,067.22, 15.4, 272
7 Deutsche Bank 379,160.93, 14.6, 246
8 Bank of America Merrill Lynch 351,588.93, 13.5, 224
9 Nomura 220,094.15, 8.5, 211
10 UBS 214,677.89, 8.3, 186
11 Rothschild 213,902.22, 8.2, 305
12 Lazard 202,384.86, 7.8, 260
13 Evercore Partners 141,532.41, 5.4, 123
14 RBC Capital Markets 114,080.06, 4.4, 191
15 BNP Paribas SA 107,659.65, 4.1, 108


If you had rich parents, would that change your career plans?

Consider two situations:
a) Your parents have 8 figure net worth
b) Same as A, but they build their wealth from being serial entrepreneurs

Assume that parents are willing to invest/support you if you offer sensible business/investment opportunities. Also, they would be willing to mentor you and would let you work in family business. They also have extensive network in the local region.

Would this impact the career decisions you make?


Canadian Grades to GPA?

I'm currently averaging an 83.3 at Queen's Commerce. If I apply to a bschool for my MBA in the US, what would my grades convert to on a GPA scale for any of the top schools like Harvard, Wharton, Columbia ect? All my grades are above 80 except for one and next to my transcript all of them say "A" and my one 77 grade says "B."

I have heard that Canadian grades are curved up to American grades during the admissions process, is that true?

Mod Note (Andy) this is an old old post, but still ranks very high on search for related terms so i'm bumping it back up to get some fresh responses

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PE cracked - Networked my way in via Facebook!

After a tense period of 2 months and 9 grueling rounds of interviews, including an 8 hour modeling test, I finally did it! Got my offer letter today!

Background: Fresher Chartered Accountant, no prior modeling experience. Doesn't sound like the ideal resume, right? I agree. So I thought I'll share how I managed to break in here on WSO. Considering how WSO has helped me over the past few weeks, I thought I ought to share my story here and hopefully help others.

Networking - I contacted a guy on Facebook who runs a "Business Updates" group with nearly a thousand members. I figured he would be having an incredible network, so I requested his help with networking. He is also a CA and he readily agreed to help. He said he has just one contact in PE, but agreed to send my resume. BAM! Two days later, I got a call.


Energy Hedging 101: The Frac Spread

Afternoon Monkeys,

Sometimes you have to stop worrying, wondering, and doubting. Have faith that things will work out, maybe not how you planned, but just how it's meant to be. Other times, you have to try and understand the Natural Gas Liquids markets and their respective price relationships to oil so that you can impress people, because, let's face it: Frac Spreads drive the ladies wild.

A couple weeks back I did a little piece on the crack spread, or, the margin extracted from refining crude oil into distillates and why it's important to more than just oil refineries. This time, I'm shifting gears a bit, and touching on a ratio that is less commonly known to the layman but is increasingly important to natural gas refiners (midstream firms), or speculative ngas traders: the frac spread, short for fractionation spread, or NGL spread. Dictator of the NGL world.


Foursquare - Twelve Months to Live?

Business Insider is out with an interesting story on geo-location startup Foursquare. Apparently, an Analyst from PrivCo, a research firm that covers private companies, believes that Foursquare will fail in 2013.

Wow. Frankly, I've always found Foursquare to be sort of silly. Perfect for the "look at me, look how great I am" crowd, but not of any serious use. But, given the nature of social media companies and the possibilities for monetization when one has a massive network built up, I always sort of assumed that Foursquare would end up going public or getting gobbled up by a company like Apple, Google, or another titan with interest in breaking into the social scene.

I certainly didn't think they were at any real risk of failing. Let's take a look at some of the risk factors the company has that could lead to its downfall in the next twelve months.


McAfee: The Gift that Keeps on Giving

Huge hat tip to TheKing for finding this jewel and sending it to me.

Once John McAfee fled Belize and got booted out of Guatemala back to the States, I assumed his sordid tale had reached its (somewhat anti-climactic) conclusion. Silly me. No longer are eccentric millionaires content to go into seclusion, pissing in mason jars and growing out their fingernails 18 inches Howard Hughes-style. Today's well-monied nut jobs want to leave their mark.

To that end, John McAfee either deserves a medal for valor or a straitjacket. I'll let you decide. Because if what I'm about to share is even remotely true, prepare to have your mind blown.

John McAfee is a master spy who provided members of the Belizean establishment with compromised computers, planted covert sexual operatives in the lives of government officials, and even uncovered a Hezbollah training camp - where he still has covert operatives embedded.


WSO Winter Internships, Apply Now

Wall Street Oasis is looking to add several interns in the during the winter term. The SEO/link-building project is what we need the most help with, but we are also accepting applications for writing interns, and a community manager intern

Open positions:


Philosophy

Is Philosphy look highly upon by recruiters in equity research and hedge funds?
Philosophy is no doubt the quintessential humanities major and it can really train one to think extremely critically. Thus it seems like an easily transferable skill to ER or HF. However what may seems to be true may not be.(IB not really doing investment)

Thanks!

Also, if i do a double major in economics, would it put me in a better position?