Breaking into IBD: do you think CFA® is useful?

Taking it next week. Banks look at it in a good way, nobody is going to turn you down because you have it. Overall curriculum is more tailored towards AM

I would also add that it's an equalizer if you come from a non target, CFA doesn't show preference to your academic background when grading

No point, don't think I've seen more than a handful of CFA bankers out of the 1000+ I've seen on LinkedIn

Definitely not required for IB.

Why are you going through the FT process? Thought those gave offers to 100% of the interns.

Nope

You're trolling right..?

CFA won't help you with IB. It's great for AM and ER.

Contrary to the posters above. I found it helpful to break in. Not necessarily through the knowledge you gain, but because it was a line on the CV.

In my case, it was because an analyst currently at the firm recently failed (no idea why he was doing it). It was a good segue to 'proving' my knowledge. You'll find that level 1 is simply rehashing what you learnt in undergrad.

It can't hurt so do it.

Depends on the group... in any capital markets/securities role CFA will make a huge difference. Even if you end up in a traditional. Coverage/industry group, a strong understanding if basic financial concepts like that you would obtain in the course of studying for a CFA eould put you ahead.

Contrary to the garbage that the vast majority of ignorant dumbasses on this site like to spew, the line between "banking" and "S&T" at a B/D is generally pretty fucking blurred. As someone who has moved around a lot because I keep getting accused of sexual harassment, when you're in a capital markets role, some banks call you a banker and some call you a trader.

Anyways - I digress. It's not a negative because it will teach you about securities, and at the end of the day all that investment bankers do really is structure securities and loans.

But then, look at the iBanking world. How many bankers have CFAs? Very very few. Pretty much none. Why is that? Comparative advantage. Sure, if you get a CFA you'll be familiar with various markets. But most of us only focus on one market. And those that don't rely on people who do. Sure you'll learn a lot from a CFA, but there are only so many hours in a day, and you'll learn a lot more about what matters in your little corner of the market from just doing your job. So I guess like... There's nothing wrong with a CFA, it will help, but it will be a waste of time that you could have spent on something valuable.

NYCbandar hit it on the head. Do the L1 - it's not too difficult for a finance major and does add a line to your resume. Consider doing L2 and L3 once you know where your career is headed.

More Importantly, I don't think you are allowed to take it until you are a senior in college.

Best/cutest name ever. Damn.

Scandal:

Best/cutest name ever. Damn.

Fuck that - puppy backed securities would be completely fucking worthless. Puppies don't throw off any cash flow so they're not really a securitizable asset. Plus the liquidation value is minimal, and there's all kinds of reputational risk... You think the banks look bad kicking granny out of her house? How are they gonna look butchering "Spot?"

Anyways, you can't finance the puppies, but you can finance the stud rights I guess. We did it with horses.

http://m.theglobeandmail.com/report-on-business/international-business/…

I wasn't aware fall internships really existed? Anyways, 2015 full time recruiting ends around late October at most schools so you won't have even taken the exam yet (let alone received a score). Network EVERYWHERE, it's a much better use of your time.

It will definitely show your interest and commitment level if you pass Level 1 because of the fact you have a non fiance or econ major. And from what I understand (I have not sat for the CFA personally, yet) the study material and practice tests will suffice for exam prep, an Econ undergrad is not 100% essential

Networking will absolutely be a better use of your time right now

As a CFA charterholder, I think it would likely be a waste of your time and I do not think you have enough time to adequately prepare without impacting your GPA and social life. Focus on networking and enjoying your senior year. You should be able to land a few ib interviews coming from a top school with a solid GPA even without a finance/accounting/econ background if you are pro-active in your approach (i.e. on-campus recruiting, alumni, direct website contact, etc.).

Some technicalities: 1. You should be within 1 semester (half-year) of graduation when sitting for CFA 1, so I am assuming you are a senior. 2. If you are a senior, then receiving results in February is way past most major recruiting deadlines. The only thing it would be useful for are ad-hoc hiring, which will likely not be in IB, or for a very small shop.

I took CFA last year in college, but I was an econ major. If you don't know econ, stats, finance at all, you're in for a real treat. Even if you know the basics of those topics, you will still have a pretty rough time. You're better off using the time spent studying on actually networking with your school's alumni, brushing up on basic valuations and modeling, and ensuring your academics remain stellar.

CFA 1 isn't difficult, but it is a daunting task to juggle along with recruiting, classes, and social life. The curriculum is structured similarly to an econ minor + accounting + ethics + alternative Asset Management, so it's like 7-9 abridged econ classes...

Passing CFA 1 will not help you at all due to deadlines. It could result in a fall in your GPA which could be detrimental as well. I suggest you begin networking given that you are at a target and keep up your GPA.

In short, you should not do a CFA for investment banking. If you would like a designation that will help you to get an analyst or associate level position at an investment bank, I would suggest pursuing the CI designation. The CI (Chartered Investor) designation is granted by the CI Institute, and tests you on your financial modeling and valuation skills in an investment banking and private equity context. There are three levels for the CI Program, just like the CFA:

LEVEL I :

Comp Company Modeling

Comp Transaction Modeling

DCF Modeling

Financial Statement Modeling

LEVEL II :

LBO Modeling

Merger Modeling

LEVEL III :

Advanced LBO Modeling

Advanced Merger Modeling

CFA is worthless for investment banking. Its for equity research and asset management.

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Yeah do the CFA. I see it has doing two things at one. You will get great practice in modeling and add something to your resume.

I will be good for you alone. It will not contribute to your chances of getting a job in IBD. ER, AM...maybe.

Maybe one of the Canadian monkeys can chip in, but I hear the CFA is pretty well regarded in general up north, as opposed to just for ER/AM

i think your time will be better spent networking some more than studying for the CFA. it's ultimately gonna come down to somebody liking you enough to give you a shot - I don't see how the CFA does that.

Cheers.

CFA>>>>>>>>>>>>Not doing anything

Networking is going to be the best use of your time regardless of what you think the CFA will be able to do for you. If you want to take the CFA you really need to think long-term. It's an enormous dedication of time and sacrifice of your social life. I have always been asked about my CFA candidacy in interviews and I am sure it has helped me land those interviews. Level I will not help your resume all that much, but once you pass LII people will start to take you much more seriously.

I'm a LIII candidate and I have already invested 700+ hours in the program thus far. I certainly haven't wasted my time, but had I spent that time networking I would probably be working at GS TMT right now. Maybe not, but you get my point. I will say that I have run across quite a number of bankers with the CFA charter. They're out there.

CFA will not hurt you, you will learn a lot about finance and it will add value to your resume. You never know which way your career will take you, and there may be a time in the future where you will utilize the CFA for a buyside role.

I think the CFA is worthwhile to pursue if you need to bolster up your resume. Obviously, networking is better, but why not do both? I'm studying for L2 now and trying to network my way into a FT IBD position. If I can't find banking, CFA lends itself well to ER which you could possibly lateral over to banking after a year or two there.

Yes, CFA is well regarded in Canada. Some banks will even accept it as a substitute for an MBA in the analyst to associate promotion (assuming you've been doing well). On a related note, MBA isn't as well regarded in Canada as it is in the US.

Do the CFA. Beats doing nothing and think of it as a longer term investment. In Canada, the CFA network is pretty extensive considering we have a disproportionately large number of candidates/charterholders relative to the size of the industry.

CFA will get you in the door as it shows that you can grind through a lot of complex information. After that, a CFA doesn't really matter.

I've seen couple people with CTP or CAIA designations but they're very niche. Not really.

Not at all. I worked in banking for 7 years total. When I recruited for analysts and associates, I never looked at anyone and said....wow, this guy has a CFA. In our recruiting meetings, nobody gave anyone a bonus point for having a CFA. So if your goal is banking and you are thinking about pursuing a CFA to make yourself standout, I would tell you to not waste your time.

I got the same scholarship and am in the same boat. I am taking a full courseload just to not look like a slacker for b-school....and am worried the CFA studying will drastically hamper partying in my last semester.

i was in your position once. i got a similar scholarship for the CFA 1 and i didnt have that many classes senior year. i was unsure of what to do.

looking back and knowing what i know now, considering i already had an offer it was in some ways unnecessary. but i was pretty serious about my career back then and looking for every edge coming from a non target public school, so i did take it. i spent a bit more time "studying" that last semester, but it didnt stop me from partying like a fkg rock star. b/c the real sacrifice came when i graduated in may - i studied nonstop for rest of that month like it was a 9-5, took the test in june and passed it. now that WAS NOT fun, but i preferred to do that than miss hanging out with my friends. it prolly wasnt the ideal setup for success!

like you guessed, you will not have that free time when youre an analyst. i tried to go for level 2 that next year, but i just couldnt make the sacrifice considering the hard and long hours the job took out of me. but maybe you can, i know people who did. i just didnt have the discipline anymore, plus everything i needed to know i figured out on the job and no one was asking or pushing me about a CFA distinction.

so theres my story. i have no regrets. considering you already have a job, i think youre fine either way. of course it also doesnt hurt to have the tag. do what you will. but if you do make the effort to pass. itll just suck even more if you sacrifice to study and dont. otherwise fk it. have fun.

do you advise not taking a full courseload (i.e. 15 credits)? Would it look bad for b-school or have you found that it's not that big of a deal? Im completely done with all things major and minor and am torn between just taking the minimum 12 credits. I feel like that could ease the pressure and help me study legit AND party, then study may/june after grad.

..u guys are thinking way too far ahead

just get started on the cfa. the difference between taking a 6 credit course load to a 12 credit course load to a 20 credit course isn't going to affect you for bschool. its one semester bro.

whats going to matter is that you graduated. your gpa, work experience and oh yeah ur gmat scores.

We're about to enter a Great Depression. Don't you want a president who's already dressed for it?

i appreciate the advice man. let me know what you end up doing verticalmarket