Need Advice on possible career change
Hi All,
To give you all a little bit of a background.
I completed my MBA in (May) 2007 with a concentration in Finance and currently working as a Financial Analyst for a financial software (which values derivatives + does the FAS 133 piece) company... Most of our clients are the corporate treasuries of big corporations.. All day I am working with derivatives -- either validating valuations, explaining the movements in the derivatives caused by the changes in the economic variables / environment and its effect on the valuations + hedge effectiveness, proof of concepts for hedging strategies spanning Interest Rate / FX / Commodities (Metals + Energy + Agriculture) etc.
The issue that I need advice with -- I have a strong desire to break in to IB.. Basically do corporate finance.. I had always wanted to break in to IB but graduating in a tough economic environment and from a non core school, wasn't able to do it then... But Given what I am currently involved with as explained above, is it doable?? If it is, what would be the best course to pursue???
Apologies for the long message but I thought the more information I put out, the easier it will be for all of you to express your suggestions.
I would really appreciate the advice / suggestions anybody would like to offer.
Thanks in advance,
Abhi...
It seems like you're very quant-focused. IMO, it would be easier for you to get into IB structured products, or an algo HF.
Quant to IBD is not as intuitive as say Quant to S&T. I think you would be best suited to transition into an S&T focused position. Given, it will be VERY tough in this market. I know Goldman CRM is a good area to work if you're quant oriented and want some exposure to corp fin. You would essentially be in a hybrid role as a corp fin credit analyst and managing counter-party risk, possibly on derivative products.
PM me if you want some more info.
What's wrong with what you are doing now? Been there a little over a year, right? Why do you want to leave where you are now?
Is it money? Is it recognition? Is it the "tasks" of your job?
Is it the people you work with? Why? Be specific.
Leverage the derivative valuation experience you have! That's good experience and it sounds like you don't realize it. Try to resist that "Gotta do IB or I'll die!" type of mentality.
Duff and HLHZ have valuation advisory groups that are scaling up their expertise in derivative valuation, so your experience would be intriguing to them. Similarly, Big 4 valuation groups are also building up derivative valuation practice groups (strongest in derivative valuation are E&Y and PwC). Even hedge funds like people with derivative valuation experience. So why are you stuck with IB? You have this niche experience. Stay where you are. I'm positive you could learn a lot more by staying where you are. If your clients are corporate treasury groups, you should focus some energy on networking with your C-level clients so that you can position yourself for a "Director" level opportunity with them later. Did you ever think about that?
The grass isn't always greener... stay where you are. You haven't even been there long! Stick it out.
Hi aadpepsi,
Money is one of the reasons but not the biggest one... I have always had quant skills but now I am working in the same field as somebody with a Masters in Financial Engineering and I feel sometimes that I do not have the math (or financial engineering) educational background.. I have tried really hard and spent countless number of hours trying to pick up as much as I can.. And I have... But I guess I can only pick up so much.... I believe corporate finance would be a much better match where I can leverage both the quantitative skills as well as the comfort level with financial statements.
The economic environment is not ideal right now and I am trying to get different views so that I can plan the next year or so and be ready when the economy begins to improve...
Does this make sense??
Thanks,
Abhi..
SIDEBAR: These "financial engineering" masters always intrigue me. Sounds more sophisticated than it really is.
Anyways, now I understand you a bit better. Listen, you're still new to the position and the first six to twelve months in any new position, especially a Quant focused position, are going to be very challenging and "uncomfortable". You are smart to start thinking of an "exit strategy" for the future. I always say "have one foot in, one foot out". However, really give yourself more time in this position and learn as much as you can. A few months from now, you'd be surprised how much you have absorbed. Also, no one is going to consider you an "expert" until you have at least 2-3 solid work experience in this niche segment of the market.
Thanks again ... Much appreciate your advice...
Also, try jumping to your client, and then from your client to their advisor. May take 3-5 years, but if you have what it takes, you will meet the right people, and will have the opportunity to network your way in.
While Marcus' GS CRM suggestion may be a good one, you still wont be doing IB and in this market, I'd be very surprised if they're hiring.
I think you would have a better shot at landing a spot at a distressed/restructuring/turnaround shop. ALOT of the distressed companies out there right now are financial institutions, and the reason for distress is the rapid diminution in value of structured products and derivatives on their balance sheet. Many of these shops specialize in corp fin/distress and not so much derivative valuation, so they are struggling with how to value these assets. While they may be outsourcing this aspect of their engagements to firms specializing in derivative/MBS valuation, I think most of these shops are looking for people to hire in-house who have significant exposure/experience in dealing with these products.
You may want to try firms such as FTI, Huron, Alvarez and their competitors. You would get IBD/Corp Fin experience while being able to leverage your derivative experience as a strong candidate for the job.
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