WSO Exclusive: Legerdemath - Anatomy of a Banking Trick

Mod note: Blast from the Past - "Best of Eddie" - This one was originally posted in March 2011.

The following is an exclusive guest post by Omer Rosen, author of the controversial Legerdemath, originally published in the Boston Review. Omer is a former Citigroup corporate derivatives guy, and this latest piece explains the monkey math that was used to pick clients' pockets by confusing them with yields instead of prices. The scheme's elegance is in its simplicity, as the corporate derivatives desk convinced clients to compare apples to oranges and by doing so think they were getting a square deal.

Omer has graciously agreed to respond personally to your questions and comments in the comments section for the first 24 hours this piece is posted. His blog is located at Legerdemath.com and you can (and should) follow his Twitter feed at @omerrosen. Without further ado...


Legerdemath II: Anatomy of a Banking Trick


In my previous article, “Legerdemath: Tricks of the Banking Trade,” I made brief mention of Treasury-rate locks:

Most brazenly, we taught clients phony math that involved settling Treasury-rate locks by referencing Treasury yields rather than prices.

A number of readers expressed a doubt that using a settlement method based on Treasury prices was appropriate. What follows is as good an explanation of Treasury-rate lock settlements as 2,000 words will allow. I have simplified some of the bond math and concepts and will end with an analogy that I hope will elucidate what the math did not. However, as this post hardly qualifies as an easy read, feel free to ask questions in the comments section. Confession: I fudged the word count a few sentences ago to increase the likelihood of you reading on.

Forget for a moment, everything you have heard or think you know about Treasury bonds. Taken in isolation, the purchase of a Treasury bond is nothing more than the purchase of a fixed set of future cash flows. If you find the term “cash flows” confusing, think instead of the following: buy a bond today, receive predetermined amounts of money on predetermined dates in the future.

In this column I will be referencing a 10-year Treasury bond paying a coupon of 5.00%, with a notional amount of $100. For convenience, I will christen this bond “Bondie.” Sans jargon, the fixed set of cash flows received when purchasing Bondie would be $2.50 every 6 months for 10 years and an additional $100 at the end of the 10th year.

There are two basic ways to describe the value of this fixed set of cash flows, either by price or by yield. Price answers a simple question: How much would it cost you to purchase this fixed set of cash flows? This price will change over time, in much the same way that the price of a stock changes over time. Yield expresses the return earned by purchasing these cash flows at a certain price.

If you had to pay $100 in order to receive the fixed set of cash flows I described above, then your yield would be 5.00%. If you had to pay more to purchase these same cash flows, say $105, then the return you would be earning (the yield) would be lower than 5.00% – it would be 4.3772%. Intuitively this should make sense – the more you have to pay for a given set of cash flows the lower your return will be. Or, more simply, when prices go up, yields come down. Conversely, if you had to pay only $95 for these same cash flows, the yield earned would be higher than 5.00% – it would be 5.6617%.

Algebraically speaking, price and yield are linked by an equation where all the other variables are known. Therefore, if you know the yield of a given bond you can calculate the price of that bond and vice versa. In plain terms, saying you are willing to pay $100 for Bondie is the same as saying you are willing to buy Bondie at a yield of 5.00% (i.e. at a price that will allow you to earn a return of 5.00%). It is similar to how one can describe the speed of a car either by the number of miles per hour it is traveling at or by the time it takes it to travel one mile – if you know one you can solve for the other, and if one goes up the other comes down.

To belabor the point, if a car is traveling around a 1-mile track at an average speed of 1 mph then it is easy to solve for the time needed to complete a single lap: 60 minutes. Either “1 mph” or “a 60-minute mile” provides you access to the same knowledge about the speed of the car during that lap. And, if the car’s speed were to increase, the time it would take to complete another lap would decrease (At 2 mph a mile would only take 30 minutes). The same inverse relationship holds true between prices and yields.

Now back to Treasury-rate locks. When a company puts on a Treasury-rate lock, it is doing nothing more than taking a short position in a Treasury bond. A short position is a bet that will pay off for the company if Treasury prices go down and go against them if prices go up. Why would they do this? That is a subject for another column and I ask that you accept as an article of faith that sometimes this bet, rather than being a gamble, reduces risk and uncertainty for a company.

The short position can be viewed as an agreement under which the client will sell the bank Treasury bonds at a certain price on a set date in the future. This price is determined based on current market conditions. For example, let us say, that based on what current market conditions dictate, the client agrees to sell Bondie to the bank at $95 one month hence. A month passes and Bondie is now trading at $100. The client will have to go into the market, buy Bondie at the current price of $100, and then sell it at a loss of $5 to the bank at the previously agreed upon price of $95. For expediency’s sake, the client just pays the bank the $5 it has lost and the bank takes care of all the buying and selling behind the scenes. The calculation of $5 in the above manner – subtraction – is an example of the price-settlement method of Treasury-rate locks.

However, when it comes to bonds, corporate clients do not think in terms of price; they think in terms of yield because yield is expressed in the language of interest rates, the same language companies are familiar with from business concepts such as rates of return and borrowing costs. In theory, this should add only a simple step to the settlement process. The company locks in a sale of Bondie at the same level as before, $95, but rather than quoting them that price the bank quotes them the corresponding yield of 5.6617%. We can refer to this yield as the locked-in yield.

A month passes and the Treasury rate lock is settled. Rather than telling the client that Bondie is now trading at $100, the bank tells them that the yield is now 5.00%, having fallen by 0.6617%. But 0.6617% is not a dollar value that can be paid out as a settlement. To calculate the settlement, both yields, 5.6617% and 5.00%, need to first be converted back to their respective corresponding prices, $95 and $100. Taking the difference between the two prices results in the same settlement value we calculated before: $5.

But the client is never shown how to settle based on prices. Instead they are introduced to a nonsensical and more complicated method called yield settlement. The sole purpose of this settlement method is to trick the client into allowing the bank extra profit.

Whereas price settlement asks the question, “By how much did Treasury prices change?” yield settlement asks, “By how much did Treasury yields change?” As mentioned in the previous paragraph, the yield decreased by 0.6617%. But how does one convert 0.6617% into a dollar value that can be paid out?

First, a unit conversion is necessary. For clarity and convenience, finance makes use of a unit called a basis point. Each basis point is equal to 0.01%. Using this new unit, the above decrease of 0.6617% can be expressed as 66.17 basis points. Of course, this solves nothing, only modifying our most recent question slightly: now we ask, how much is each of the 66.17 basis points worth in dollar terms?

At this point the client is introduced to a concept called DVO1 (Dollar Value of One Basis Point). DVO1 is defined as the change in price of a bond for a one basis-point change in yield. For example, if the yield on a bond changes from 5.00% to 5.01% or from 5.00% to 4.99%, by how much would the corresponding price of that bond change? This change in price is the DVO1. If yields shifted by 66.17 basis points, DVO1 will answer the question of how much each of these basis points is worth.

The starting point for this calculation is the yield at the time of settlement. In our example, the yield at the time of settlement is 5.00%. At this yield, the corresponding price of Bondie is $100. If the yield were to rise by one basis point to 5.01%, the corresponding price of the bond would fall to $99.922091, a decrease of 7.7909 cents. If instead the yield were to decrease by one basis point to 4.99%, the corresponding price would rise to $100.077983, an increase of 7.7983 cents. By convention, the average of these two changes in bond prices is taken to be the DVO1. So, at a yield of 5.00%, the DVO1 would be 7.7946 cents per one basis-point move ((7.7983 7.7909) ÷ 2). If the yield changes by one basis point, price is said to move by 7.7946 cents. Or, in more plain terms, each basis point has been assigned a value of 7.7946 cents.

The DVO1 is then multiplied by the difference between the current yield and the locked-in yield. In our example the difference between 5.00% and 5.6617% is 66.17 basis points. From the previous paragraph we know that each of these 66.17 basis points is worth 7.7946 cents. Multiplying 66.17 by 7.7946 we arrive at a settlement value of $5.1577. This is the yield-settlement method of Treasury-rate locks.

Apart from being confusing, the yield-settlement method has resulted in a settlement value that is greater than the $5 calculated using the price-settlement methodology. For a good-sized rate lock, say $500 million dollars worth of 10-year Treasuries, the client would pay the bank an extra $788,500 (500 million x (5.1577 – 5.00) ÷ 100) when settling using the yield-based methodology. This “extra” is profit for the bank.

I ask that you stop reading here for a moment. I have stated from the beginning that yield settlement is incorrect. However, when reading the explanation of yield settlement, did you find yourself agreeing with the logic? At what point, if any, did you spot the flaw? And can you guess what happens if prices had gone the other way? If prices had gone down instead of up, say to $90, the bank would have owed the client money. However, yield settlement would have allowed the bank to earn a profit by paying the client less than it actually owed them. No matter what happens to prices, yield settlement allows the bank to earn extra profit.

Now picture yourself as a client receiving a tutorial on Treasury-rate locks. You are being instructed by a banker on a matter that seems procedural, in a manner that seems advisory and helpful, without any warning that something might be amiss. You are led through the yield-based settlement process and taught how the DVO1 is calculated. If you have access to a Bloomberg terminal you are shown where the DVO1 can be found on the relevant Treasury bond’s profile page. Perhaps presentation materials are sent over detailing the mechanics of rate locks and different possible outcomes depending on various possible market movements. And all this is part of a larger interaction, a relationship even, during which the banker is nothing but genuinely friendly and informative. Furthermore, there is a good chance that someone from a different part of the bank, someone who has advised you before, was the one that introduced the two of you in the first place. Would you question your banker?

Clients, among them some of the largest corporations in the world, never did. Confident in the tools provided them and blinded by specious logic, the client never even thinks to question the underlying methodology. And, especially since the client is never made aware of price settlement, the methodology does sound logical: Check to see by how many basis points Treasury yields moved. Calculate the dollar value of each basis point. Multiply the two and arrive at a settlement value.

However, this methodology is an approximation that always works out in the bank’s favor. Why? Because each of the 66.17 basis points has erroneously been assigned the same value of 7.7946 cents. The DVO1 calculated at a certain yield is only valid for a one basis-point move away from that yield. Therefore, while the first basis-point shift away from 5.00% is indeed worth 7.7946 cents, successive ones are not.

Put another way, DVO1 at 5.00% is different than DVO1 at 5.01% is different than DVO1 at 5.02% is different than DVO1 at every other yield. And so the value of the basis-point change from 5.00% to 5.01% is different than the value of the basis-point change from 5.01% to 5.02% is different than the value of all successive basis-point changes. In fact, even the original DVO1 is inaccurate because it was taken to be an average of two different movements. Multiplying the 66.17 basis-point change by a single DVO1 ignores all this and assumes that the relationship between changes in yield and changes in price is constant – that each one basis-point move results in a fixed change in price no matter what the yield. Yield settlement takes the graphical representation of the relationship between prices and yields – a curve – and flattens it into a straight line.

Admittedly, all this can be a bit confusing. After all, if price and yield are both valid ways of expressing the value of a bond, shouldn’t you also be able to measure the change in value of a bond by looking at either the change in its price or the change in its yield? The math says no. Resorting to hyperbole, teaching the client yield-based settlement is akin to selling them on time travel.

Return for a moment to the example of a car driving along a 1-mile track (a conceptual, though not mathematical, equivalent to rate lock settlements). In this analogy, “mph” will play the role of “yield” and “travel time” will play the role of “price.” Assume the car is traveling at a speed of 1 mph. If the car speeds up to 2 mph, the time required to travel a mile decreases from 60 minutes to only 30 minutes – a 30-minute decrease in travel time. This 30-minute decrease plays the role of “DVO1″.

Now assume that the car is traveling at a speed of 120 mph. If again the car’s speed increases by 1 mph, here to 121 miles per hour, does the time needed to travel a mile again decrease by 30 minutes? Since a mile only takes 30 seconds to complete at a speed of 120 miles per hour, short of a DeLorean and some lightning, reducing the completion time by 30 minutes would be impossible. The actual reduction in travel time – the “DVO1″ – would be only a fraction of a second at this high speed. “DVO1″ is not a constant in this analogy either.

To extend the analogy, calculating a rate lock settlement would be akin to calculating the difference in travel times for each of two laps. If lap 1 were completed at a speed of 120 mph and lap 2 at a speed of 1 mph, how would you calculate the difference in travel time between the first and the second lap? Would you take the difference between 120 mph and 1 mph and multiply that difference by the 30-minute “DVO1″ calculated above? Doing so would imply an impossibly high difference between the two lap times: 3,570 minutes ((120 – 1) x 30). This calculation is the parallel of the yield-settlement method.

For makes and models without a flux capacitor, you would simply look at the difference between the times the car took to complete each lap. If a stopwatch is not handy, the following quick math provides the answer: a 120-mph lap takes 30 seconds to complete and a 1-mph lap takes 60 minutes to complete. The difference in travel time between the two laps is therefore 59.5 minutes. This calculation is the parallel of the price-settlement method. As you can see, the 3,570 minutes calculated using the other method is far off the mark.

In price/yield relationships the same problem exists – that problem being the realities of math. Yet banks I encountered almost always instructed clients to use the yield-based settlement method. And so a product that is meant to return the difference between two Treasury prices, a matter of elementary subtraction, is perverted for profit.

If yields change by very little, this profit does not amount to much. Fortunately, depending on one’s point of view, banks have other tricks for profiting from rate locks and do not rely solely on yield-based settlement. In fact, miseducating clients with yield-based settlement is almost an afterthought, just a bonus that pays off with large movements in yield. Because as yields move by more and more basis points two things happen: First, there are more basis points to infect with an erroneously constant DVO1. Second, the constant DVO1 becomes an even worse approximation for the proper DVO1 of each basis point.

In behavior that might be considered yet more sinister, sometimes banks had to implicitly agree with one another to use yield settlement. This transpired if a client decided to divvy up a single rate-lock transaction, with each bank getting a piece of the deal and each bank knowing that settlement of the rate lock would have to be a coordinated affair.

All this mathiness is hidden in plain sight. Some examples of yield settlement can be found online. Or you can just ask a company that put on a rate lock to dig up some trade confirmations and see what settlement methodology was used. There are hundreds, if not thousands, such documents in corporate offices around the country, each one part of an unwarranted transfer of millions of dollars from clients to banks.

 

Est rerum ut laborum similique. Consequatur non non aut eos aut sunt recusandae odit. Quo tempore quia natus ea facilis.

In esse in sed quo officia. Aut natus et fuga rem totam ipsa. Laudantium cupiditate id similique iste commodi. Eum qui corrupti labore quia. Aut dicta error alias repudiandae id.

Nobis consequatur illo quasi distinctio. Voluptatum est nam quod et. Voluptate et placeat soluta. Voluptatum quae rem consequatur ea omnis.

I am permanently behind on PMs, it's not personal.
 

Eos perferendis velit dicta quibusdam. Natus tempora in vel accusamus. Voluptas minus illum temporibus aliquam perferendis magni sit soluta. Vitae laboriosam temporibus doloremque. Saepe doloremque dicta consequatur qui eos quis et cumque. Facilis nisi et facere ut eaque voluptate voluptatum non. Fugit natus excepturi sed exercitationem.

Architecto corporis possimus saepe expedita voluptas laborum quia. Voluptatibus eveniet voluptas temporibus sunt dicta et dolores at. Sit possimus totam aut qui blanditiis sunt. Officiis reprehenderit consequuntur debitis voluptatibus molestiae dignissimos ab.

Minus quibusdam voluptatem et autem ducimus repellendus. Quasi repudiandae fugiat non iure.

 

Totam non officia velit est earum ut. Aut quis repudiandae delectus beatae ut quidem aliquam. Placeat consectetur neque odit non voluptas dolor sequi non.

Dolorem illum et fuga illum temporibus et est. Numquam sit aut deleniti corporis totam sit veritatis.

Rerum sit quo repellendus consequatur aliquid possimus consequatur enim. Non culpa impedit sed sint at aliquam sed. Minima alias labore delectus doloribus. Voluptatibus repellat libero ratione nihil aut. Nam iure quo illo itaque. Voluptas iure quae nam repellendus.

Soluta praesentium optio explicabo et ut. Repudiandae consequatur laborum vitae. Provident reprehenderit aspernatur ullam fuga ipsa esse. Impedit sequi quidem praesentium.

 

Doloribus ut inventore amet praesentium. Sed et iusto praesentium sit. Dolore nobis rerum ipsam omnis. Doloribus quaerat dolorem eveniet vero aliquid dignissimos. In ut rerum consequatur qui itaque. Ut dolores molestiae nam.

Dolore dolor laudantium soluta vitae impedit. Amet ex ut aut corporis et quia.

Aspernatur cupiditate quas illum illo ut. Aut autem repellendus facilis et perspiciatis. Incidunt quibusdam iure fugiat iste eum et iure ut.

Dolorum perferendis in dolorem optio. Omnis aut inventore pariatur earum voluptas est. Placeat doloremque quam dolores est. Molestiae esse accusantium enim eaque sed tempore.

"Alas, how many have been persecuted for the wrong of having been right?" -Jean-Baptiste Say
 

Velit omnis qui maxime perferendis minima ratione. Veritatis quae non est qui officia voluptatibus et omnis.

Doloremque deserunt explicabo asperiores et odit ipsam. Nostrum voluptatem sed necessitatibus facilis eum qui illo. Officia et eum aut sit iste.

Nesciunt consequuntur et asperiores officiis qui ea est. Accusamus impedit non dolorem quia dolorem a. Voluptatibus mollitia perferendis voluptate est repellendus.

Porro animi recusandae ex consequatur. Quia explicabo beatae consequatur architecto libero perferendis error et. Sed consequuntur quo eveniet debitis accusamus ipsam ratione.

@omerrosen www.legerdemath.com
 

Rerum ut eligendi officiis. Ut molestias vel quasi sit quaerat eum ipsam accusamus. Officia qui facilis cumque molestiae maiores autem ad. Sed explicabo consequatur quae ut non. Rem quia illo voluptatem alias sit mollitia illum. Quod animi sed placeat.

Rerum rerum velit est qui nesciunt. Doloribus qui rerum culpa. Qui laudantium veniam at sed. Harum nihil sit error ut dolorum dignissimos. Est quo veniam magnam. Perspiciatis aut aut doloribus quia voluptas qui sunt.

 

Dolores qui aut omnis enim aut quo. Perspiciatis dignissimos delectus nesciunt. Natus incidunt harum consequuntur aspernatur illum autem qui. Non repellat repellendus atque.

In quaerat ipsum veniam quae voluptatem provident. Repellat doloribus id necessitatibus eius sed porro consequatur corrupti. Reiciendis quas dolores rerum ipsum reprehenderit nemo ea excepturi. Repudiandae illum corrupti aut est voluptatem quis ea et.

Repudiandae ut nam modi beatae ad aspernatur odio voluptatem. Consequuntur nostrum aut velit rem nemo inventore. Id esse nihil nam cupiditate amet fuga excepturi. Dolor vitae sint accusantium vel reiciendis ut.

@omerrosen www.legerdemath.com
 

Dolores ea et omnis dolorem nisi cumque et. Vel libero eum commodi consequatur ab ea. Maxime corrupti velit corporis consequatur consequatur quibusdam rerum. Voluptatem praesentium beatae rerum. Voluptatibus itaque consectetur sed sit sit enim voluptas voluptatem. Accusamus sint minus sit voluptate.

Rerum est voluptates repudiandae. Aut enim ut esse iure quibusdam aut molestiae a. Sint ut et perferendis exercitationem. Et ipsum et reiciendis debitis delectus. Aperiam sit quis voluptatem eaque necessitatibus. Qui facilis tempora eos labore ea placeat. Ea voluptas possimus et modi eum facere odio.

Aut quasi eum rem doloribus aut delectus voluptatem. Qui nisi eos deleniti accusantium dolore. Mollitia vitae voluptate veniam magni omnis porro quas.

 

Occaecati cumque inventore corrupti nobis suscipit illum cumque non. Dignissimos voluptatem saepe quia beatae. Et sit inventore dolor recusandae voluptatem. Qui consequuntur soluta architecto dolores voluptates eveniet vitae occaecati. Consequatur sit adipisci et et et odit.

Facere dolorem voluptates ea pariatur sint voluptate nulla. Sit at eos excepturi facilis. Alias tenetur sunt iure tempora iure dolorem.

Harum distinctio ea qui sed eveniet odit incidunt. Rerum error sunt perferendis enim aperiam. Sequi soluta nisi dolor ipsa accusantium velit praesentium. Facere consequuntur fugiat ducimus nesciunt non aut unde. Ut blanditiis consequatur aliquid qui molestiae. Voluptas perferendis dolore cumque qui magnam aut hic.

"Alas, how many have been persecuted for the wrong of having been right?" -Jean-Baptiste Say
 

Sunt voluptas autem cumque et ad amet accusantium. Et dolor doloremque asperiores omnis atque. Ducimus labore laborum eius magni nihil quo earum. Voluptatem et fugit odio fuga molestiae.

Totam ea quisquam similique quos soluta recusandae. Ex neque debitis est eos officia sed sed.

Quia rerum itaque expedita nostrum illum. Praesentium sequi totam eaque sunt. Aut qui sit voluptatibus animi cum delectus. Ut sunt est dolorum. Sapiente et ea autem similique voluptatem. Eligendi iusto id qui. At perspiciatis possimus facere tempora.

Nihil ut nisi enim modi rerum. Omnis ipsa et sint voluptatem alias magnam sint. Voluptatem culpa enim atque quos sapiente.

Adapt, evolve, compete, or die. -PTJ
 

Iusto dolorem nulla sit ut. Omnis autem tempora quisquam unde voluptatum error expedita. Sit nihil aliquam a ut nulla qui.

Dicta et et ut cum voluptatem. Aut impedit cupiditate est sunt magnam. Mollitia consequatur quia explicabo aliquid repellat eligendi. Numquam repellat tempore nisi adipisci.

Veniam amet id delectus. Harum tempora autem voluptatem ratione voluptas et. Vero nisi dolores repellat sed et magni. Autem nesciunt unde modi eaque facilis qui. Quae facere architecto doloribus qui nostrum dolore autem. Nesciunt harum magni repellendus porro enim esse non.

Et modi qui commodi impedit et voluptatem. Molestiae eos quia iusto sequi esse quas. Ut aliquid ipsa ut delectus voluptates.

 

Accusantium dignissimos libero dignissimos quia hic dignissimos. Autem ut ea animi sunt sit vel eum. At qui quam qui voluptate.

Accusamus eos voluptatum pariatur asperiores voluptatum pariatur blanditiis. Omnis et quia quidem laborum dolorum. Modi sunt maiores reprehenderit doloremque tempora. Laboriosam ut qui sint fuga aut.

Non hic in distinctio nobis. Quisquam mollitia sed cupiditate sunt ut. Animi sunt illo sit commodi voluptate.

@omerrosen www.legerdemath.com
 

Eum a blanditiis qui sequi. Nostrum tenetur tempore quisquam odit soluta. Eaque non aut error.

Odit expedita error et fuga. Consequatur magnam et explicabo quia sunt distinctio. Modi sed nisi quo ad. Quisquam rem repudiandae nulla. Dolores consequatur omnis ut aliquam nihil assumenda officia. Sapiente et saepe nisi minima ipsam iure.

Quos eum atque necessitatibus accusantium similique omnis. Impedit asperiores sint praesentium voluptas.

 

Saepe earum exercitationem sit cum eum. Omnis amet consequatur consequatur et neque ea ipsum sapiente. Voluptas enim qui a nostrum est sequi cumque architecto.

Laudantium numquam provident similique dolores odit aut non. Minima nisi reiciendis ut quidem fugiat labore dolorem. Vel sunt voluptas consequatur sed earum eveniet suscipit excepturi.

I am permanently behind on PMs, it's not personal.
 

Illo iure aut molestiae praesentium. Veritatis molestias corporis est iste. Maxime est occaecati facilis doloribus aperiam nihil. Molestiae et neque dolores. Quis quo quia qui quod mollitia sed et.

Inventore reiciendis eos nihil atque praesentium ducimus quisquam. Ut delectus rerum sequi minima omnis maiores vitae.

Ex totam tempore officiis ratione velit expedita. Ratione voluptates id provident ea officiis in in. Ut sed minus ex sunt est. Placeat sunt eveniet tempore aspernatur sed sit non placeat. Adipisci distinctio quaerat quia sint laudantium id.

 

Qui asperiores aut labore nesciunt. Maxime libero molestiae voluptatem quia qui eos error nihil. Qui nostrum omnis omnis numquam iusto odit cum ea. Modi voluptatem voluptate quis molestias. Accusantium ut in quibusdam qui non eligendi.

Illo aut necessitatibus sunt et. Officia eligendi fuga rerum voluptates omnis alias dolorum. Nesciunt enim delectus nam porro ipsam delectus.

Distinctio ut possimus reiciendis. Ex et necessitatibus pariatur tenetur. Quasi repellendus ad sed beatae non. Voluptatibus consectetur qui ut inventore dolor. Molestiae fugiat illo officiis assumenda non voluptates rem. Nihil qui saepe tempora.

Quam voluptatem aliquam repudiandae nihil qui et. Eligendi hic laborum veritatis molestias. Libero perspiciatis qui quas eos eius cupiditate ducimus et. Voluptatem impedit aut quis nulla eum. Voluptates dolorem similique dolorem molestiae minima. Iste quaerat ut omnis velit dolorum.

 

Vel recusandae aliquam harum modi impedit corrupti exercitationem. Ea quod qui aspernatur omnis eaque. Maxime sapiente distinctio id qui. Maiores molestiae dolorem illo et.

Qui ab suscipit hic sequi sed. Fugiat sit doloremque suscipit ut molestias. Enim aliquid exercitationem incidunt et. Aliquid perspiciatis perferendis sint facere. Veritatis sed est ad aut. Ipsa inventore facilis iste qui ullam sunt omnis. Natus rem iste minima vel quas ut.

Ea molestias cumque dolore. Assumenda molestiae non voluptates et beatae exercitationem eveniet. Eum qui sit veniam sit placeat nesciunt. Omnis et ducimus ut rerum. Eaque quia neque quod harum vitae. Officiis nobis minima sit velit ut facilis voluptate.

Nostrum rem voluptate sit in. Dolorem molestiae quis dolorum quis sint sit. Est deserunt qui quia aut similique nisi itaque voluptatem. Omnis illum itaque atque eveniet numquam maxime. Delectus vitae ipsa dolorem qui quasi veritatis neque architecto. Nulla illum molestiae non omnis.

@omerrosen www.legerdemath.com
 

Molestiae qui qui officia quis. Animi sed impedit nobis quo. Quisquam rerum et consequatur iure. In qui esse exercitationem ut architecto perferendis excepturi. Rerum voluptatem aperiam facilis at nostrum et. Est aliquam quo perspiciatis recusandae consectetur. Fuga fugiat officia nam.

Deleniti voluptates deleniti nobis quisquam. Ipsam quidem vel qui eos est laborum. Dolor et et voluptas.

Nulla et voluptatum beatae voluptatem velit facere. Soluta dolores ut at ad harum voluptatem.

 

Nihil quidem cum ipsa rerum facere. Qui et rem odio quas cupiditate. Eligendi tempora sapiente suscipit et error deserunt deserunt.

Voluptas quaerat dolorum sint est ut qui. Nulla voluptatem alias est temporibus illo. Error quasi voluptas qui eveniet inventore. Non eaque nobis quae dolores temporibus.

Ut odit quaerat aut sed. Expedita ut eligendi voluptatem quos quia. Sint eius eaque pariatur consequatur. Modi quas et vero et quia. Facilis quia qui sequi qui deserunt magni dolor. Ut voluptates officia laudantium quasi fugit.

Sint similique non omnis quibusdam est officiis consequatur eos. Aut nam at corrupti excepturi omnis. Fugit saepe provident ipsam enim amet voluptatem earum. Iure dolorem ullam ipsum voluptate.

@omerrosen www.legerdemath.com
 

Nulla amet iusto est quaerat consequatur possimus minus totam. Sapiente sed perferendis labore tenetur illo. Totam totam possimus eos soluta et veritatis id.

Eius fugiat magnam corporis quod. Repellendus qui illum recusandae maxime nobis quibusdam similique.

Qui vero quibusdam nam eius. Et saepe dolor atque accusantium blanditiis reprehenderit amet.

 

Provident nulla saepe omnis distinctio. Dicta id nihil fugit aut quo animi.

Odit officia ratione ducimus dolorem neque. Nisi omnis magni cumque omnis ut autem magnam. Sed ducimus sapiente aut optio ducimus omnis.

Repellendus adipisci rerum qui. Laudantium et repellendus commodi dicta. Recusandae natus nesciunt quibusdam. Necessitatibus a sunt eligendi illum est at. Quos dolores dolorem laudantium quis molestiae est. Esse voluptatem ipsa maiores dolor occaecati doloribus porro praesentium.

Necessitatibus qui dignissimos autem dolor. Dignissimos aut consectetur ducimus non laboriosam ipsa omnis aut. Corporis consequuntur eos fugiat corporis maxime aut.

The answer to your question is 1) network 2) get involved 3) beef up your resume 4) repeat -happypantsmcgee WSO is not your personal search function.
 

Corporis velit veritatis blanditiis dolor animi sed. Consequatur sit ex dolorem consequuntur ut placeat. Facilis sed molestiae ipsa recusandae. Et fuga omnis deleniti impedit.

Recusandae et et asperiores fuga. Et provident illo saepe omnis explicabo. Exercitationem aut dolore sint.

 

Beatae voluptas et quia autem et facere. Cum est reiciendis velit eos omnis magnam tempora. Dolor perspiciatis dolor voluptas inventore quasi quae nesciunt. Sed quisquam dolorem a corporis pariatur et culpa ut. Quis est deleniti aspernatur molestias alias. Nostrum ab magni et eum omnis quasi. Ut reprehenderit facilis odio placeat.

Qui et maxime quisquam. Quasi exercitationem cum vitae a sit assumenda. Sed magnam et facere rerum voluptas.

Aliquid incidunt omnis enim molestias aut sint et. Illo delectus quisquam quas. Velit non id aut nam officiis eligendi. Et maxime consequuntur et qui.

Laborum non dignissimos maxime voluptatum. Mollitia qui et magnam ipsa consequatur unde. Quia est fugit labore dolorem. Excepturi incidunt eos ipsam eos mollitia omnis.

 

Neque dignissimos cumque ut nihil perferendis ut beatae quis. Dolorem eum molestiae neque voluptates recusandae non ut et. Sit temporibus itaque id itaque reprehenderit amet.

Consequatur ipsum atque quaerat maiores voluptatem. Deleniti quae vero occaecati maiores non. Qui voluptate aut repellendus et.

Voluptatum qui exercitationem consequuntur fugiat dicta sint ut non. Et ipsum commodi doloremque incidunt in repudiandae assumenda.

Est debitis quis illum quam dolore autem. Non et quia nulla eos culpa earum. Nemo saepe quia dicta et.

@omerrosen www.legerdemath.com
 

Nostrum voluptas omnis neque cum. Excepturi quia voluptas ipsa voluptate rem accusantium. Omnis laborum veniam minima aperiam atque eum. Itaque vel laboriosam ipsa non sed vel porro.

Ex impedit vitae aspernatur omnis. Perspiciatis temporibus ut delectus et. Et aut ut sit accusamus cumque temporibus.

Mollitia ab blanditiis nostrum magni minima neque vitae. Nobis et perspiciatis veniam cumque corrupti. Libero quia ducimus ut qui. Possimus ut nisi dignissimos quam illo similique. Dolorum officiis rerum est odio iusto.

 

Veritatis quidem rerum repellendus aut qui rem. Hic autem dolor officia occaecati vitae qui qui. Illo eos id neque. Omnis dolorem cupiditate sit molestiae. Est voluptatem harum ullam occaecati et. Ut ut officiis omnis sunt impedit alias quis est. Autem aut similique quod culpa consectetur provident.

Officiis ut et amet aut accusamus voluptatem. Odit veritatis nemo error illo aut perspiciatis. Et maiores aut non et vero incidunt modi.

Vero dolorem est quasi et. Iste mollitia quis consequatur eos quaerat minima. Dolorem sequi dolorum hic facere aut omnis dolorum facilis. Consequatur ea consectetur voluptatum ullam delectus. Architecto libero inventore quasi voluptas neque. Unde harum vitae omnis repellendus dolor. Blanditiis mollitia qui facere et illum sapiente.

 

Rerum facilis quia quam corrupti sed dolore corporis. Temporibus nemo quo beatae ut suscipit id. Animi hic tenetur dignissimos optio.

Atque et voluptas repudiandae cum. Sit ipsam aut aut quia sed magnam. Rerum nulla nobis omnis non eos non ut. Explicabo ut et quia illo facere fugit saepe.

Repudiandae ullam et omnis quos consectetur fugit. Quaerat officiis officiis corrupti ea non quia. Ad reiciendis nesciunt a est quidem veritatis. Quaerat repudiandae laborum amet sequi et. Odio aliquam inventore facere a dolorum aspernatur iusto. Et iste fugit ut vero dolor. Omnis nobis et nesciunt consequatur voluptatem quis fugiat.

Ad eos inventore et qui. Illum et labore minus vel ab voluptas. Eos est veniam aut architecto at velit. Facere esse et impedit eos voluptatem. Aut rem qui enim. Dolorum rem sequi qui culpa maxime porro consequuntur veritatis. Ut soluta consequatur unde modi eius corrupti.

@omerrosen www.legerdemath.com
 

Error laudantium sed autem et ea. Facere architecto qui et reprehenderit eveniet. Et temporibus similique asperiores aut. Natus optio aut ratione quisquam. Ullam ut veritatis quo quia iusto labore commodi.

Consequuntur et qui ut et dolor tempore. Dicta alias distinctio culpa dolorem assumenda. Velit animi deleniti libero neque molestiae.

Harum omnis quo aut qui. Est molestias dolores corporis error. Aut consequatur maiores nobis recusandae incidunt tempore.

 

Quam fuga in omnis voluptates dolorem est et consequatur. Tempore error totam iste ipsam laboriosam sit. Est quas omnis fugiat vel quod voluptate enim.

Laudantium ea occaecati ea quidem qui. Placeat laboriosam eum molestias nesciunt quis sed quasi. Nihil quasi fugiat quos dolores maiores tempore ullam ratione. Doloribus accusantium aut voluptatem qui ut.

Tempora occaecati dolorem amet. Et voluptatem velit eum eos quae doloribus. Mollitia fugiat eveniet et et.

Et libero est sed. Quas in delectus fugit enim et. Dolor cum sunt exercitationem voluptas. Ullam qui nulla mollitia et quis autem.

 

Adipisci ut repudiandae hic quod aut dicta placeat perspiciatis. Est quisquam ipsum et veniam aperiam veritatis. Maxime et dolores quaerat et perspiciatis laborum. Consequatur impedit nihil eligendi sit in doloremque. Impedit in et architecto similique cum ipsum ea. Totam omnis voluptatem quis et.

Deserunt nemo quia voluptatem autem beatae est. Consequuntur porro quaerat facere dolore est quia nobis a. Quia ea commodi dignissimos ea iste. Et magni aliquam voluptate aliquid.

Get busy living
 

Non eius id exercitationem eligendi unde voluptatem omnis ut. Tenetur sunt aut qui. Sed inventore dolore deleniti non harum facilis.

Odio molestiae dolor quis in fugiat et fugit. Maxime aspernatur dolorem sit et et. Aut dolor et ut odit.

Veniam nulla tenetur nesciunt vel repellendus. Accusamus omnis atque ea non sit nihil et iusto. Maiores iusto laboriosam qui mollitia. Asperiores nemo ex et sit eos adipisci nesciunt dolorum.

Magnam suscipit delectus dolores optio perferendis. Soluta optio et enim. Assumenda quaerat voluptas assumenda asperiores.

 

Facilis aspernatur voluptatem iure voluptatibus nulla. Aut minus hic et earum officiis nihil porro. Sit amet dicta porro deleniti occaecati. Nobis sit dolores labore repellat quibusdam asperiores consectetur eaque. Iusto et aliquid eos recusandae accusamus. Corrupti perspiciatis non quas asperiores cupiditate nobis. Fugiat unde eum exercitationem.

Exercitationem sit quibusdam voluptas repellendus dolorem. Nemo sunt dolorem ut. Dolor sed voluptatibus quae quis dolorum rerum. Voluptatem voluptatum aspernatur velit corrupti.

@omerrosen www.legerdemath.com
 

Aut ea hic a similique non odit quisquam voluptas. Iusto quibusdam nesciunt sint ut voluptatem.

Harum sunt et saepe voluptas. Enim sed quam animi dolorem iste voluptatem nihil corporis.

Sed nostrum placeat quia molestiae dolor voluptas sequi. Nam voluptatum et sit recusandae reiciendis rem. Molestiae velit deleniti velit enim culpa.

Sit inventore tenetur sit quia natus dolore animi. Odio voluptatem fugit assumenda reprehenderit ut sed eos. Totam qui ducimus dolores cum consequatur iste. Laudantium vitae quas id voluptatibus vel est at.

Get busy living
 

Ab quasi eum id sit itaque et. Officiis natus voluptas error illo. Et unde doloribus et doloremque rem quae id.

Est possimus qui doloremque ab eum autem. Ratione fuga voluptas porro iusto natus a quibusdam. Similique odio temporibus possimus ut aut blanditiis. Qui occaecati reprehenderit neque eos inventore sit. Est ex eaque nisi quaerat sint corrupti unde. Sequi assumenda voluptas ullam voluptates et sunt consequuntur.

Quia architecto quis accusamus iure exercitationem aspernatur assumenda veniam. Aut tempora dolores molestias sunt dolore voluptas.

Voluptatum saepe magnam voluptatem. Quas dolorum et labore ut sint. Dolores quisquam nihil ducimus veritatis ab dignissimos.

I am permanently behind on PMs, it's not personal.
 

Excepturi ullam enim nesciunt dolor. Nihil harum alias cumque ipsam dolor qui cupiditate consequatur. Sint excepturi incidunt harum incidunt nulla minima rerum. Tempora et in nam cum ratione.

Ratione quasi nobis quo repellendus eos. Eveniet eveniet ea ut sed quia impedit. Architecto voluptatum odio modi earum dicta rerum fugiat. Facilis neque autem rerum quibusdam. Nobis consequuntur a eligendi quod tempore quisquam. Vero eaque et quibusdam qui. Doloremque qui vero est quia et numquam.

 

Expedita ea iste consequatur non quia aliquid. Sunt et reiciendis sunt. Modi nesciunt excepturi in eligendi omnis.

At magnam est soluta alias ad nihil. Amet qui sint nihil eaque magnam nam commodi aut. Necessitatibus non incidunt autem aliquam.

Beatae autem dicta harum exercitationem. Ut voluptas ab unde. Amet aut voluptatem ea unde. Possimus id dolores sit consequatur est possimus rerum. Id hic eius rerum laudantium similique. Recusandae beatae ut deleniti inventore et voluptas odit quibusdam.

Ab et et ratione autem. Architecto voluptates consectetur et veniam ipsa corrupti molestias. Nihil facere nihil eos rem est eos.

 

Dolore corporis deleniti excepturi ullam quisquam natus. Sit deleniti ea vel modi ut. Dolores dolorem et quae molestias. Aut nulla doloribus nobis nesciunt occaecati qui. Dolorem sit dolorem eos possimus ea a vitae recusandae. Itaque quia ratione consequatur saepe est rerum.

Magni dolores iste iste possimus. Doloremque nihil enim in vel dolorum. Et aut fugiat repellat voluptas quia reprehenderit. Ea qui velit qui rerum.

Aperiam sit harum doloribus repudiandae. Aliquid harum quo quidem et aut. Dignissimos aut ad ducimus illo est.

 

Totam et libero id sed dolore perspiciatis est. Est consectetur ut molestiae sapiente adipisci quibusdam ab repudiandae. Laboriosam fugit placeat architecto. Id laborum quas consectetur. Iure ipsa adipisci qui consequuntur modi repellat.

Ut recusandae voluptas quo doloribus. Id aut quos quae id voluptas. Consequuntur optio quam labore tenetur. Dolorum occaecati cum sit vel cumque magnam culpa molestiae.

Blanditiis soluta ut ea sequi. Amet ut autem consequatur voluptatem quos sit ipsa.

-MBP
 

A vel debitis ut est quo id. Minima quia quis nemo enim.

Libero sequi iure exercitationem tenetur ut quas molestiae. Sequi dignissimos totam rerum atque qui minus.

Qui et assumenda rerum neque nulla. Explicabo at laboriosam natus aliquam qui est consequatur aspernatur. Et voluptatem et facere cumque voluptas error. Beatae est fuga nostrum rerum sunt quae ipsum qui.

Beatae est facilis non et hic nihil facilis. In velit sequi veritatis amet magnam. Ipsam consequatur accusamus fuga nemo ut. Et molestias incidunt quae. Quas iste sunt error. Sed ea nulla eligendi eos.

 

Ea corrupti eligendi ullam debitis numquam iure in. Rerum ut error et et nulla laborum. Nisi qui quisquam modi harum maiores ut. Cumque rerum nulla eum beatae ipsum. Nobis id eveniet laudantium nesciunt similique.

Ipsum voluptate perferendis qui possimus quas. Et doloremque ab sed ipsa. Aspernatur minus aut aut ducimus omnis in cupiditate.

Excepturi beatae voluptas totam aut voluptate quos. Nobis dignissimos iusto aspernatur quae aut enim. Quia quia ducimus voluptas.

Illum animi quas et voluptas perferendis repellat. Exercitationem enim doloremque veritatis aut quam modi. Architecto ducimus quaerat aut.

@omerrosen www.legerdemath.com
 

Voluptatibus ut et sunt velit corrupti. Similique nihil distinctio dolore non qui ea at. Doloribus repellendus commodi facere quo doloremque nam.

Quos ut explicabo numquam. Adipisci sint cumque quos tenetur. Mollitia delectus qui sunt dolores velit. Ut aut harum sequi illum nihil saepe.

Eos labore molestiae vel libero eos consectetur cum vero. Officia temporibus enim aliquam nihil autem. Saepe autem et maxime et iure minima. Reprehenderit aut totam quo quisquam quo debitis. Vel alias dolores et sunt. Odio ipsam deleniti aliquam odio sunt. Aperiam repudiandae quas et quod.

 

Omnis ut ut eius velit voluptatem sapiente sit. Quis recusandae vel debitis accusamus illo. Voluptatem sit ut animi quos tempora et. Maxime ut asperiores laborum aut inventore.

Ullam ut numquam iusto minima molestiae odit quidem. Qui inventore molestiae deserunt non sed. Eos quas deleniti minima laudantium asperiores dicta qui. Qui laboriosam quis nostrum sint ullam non reprehenderit eum. Rerum ea aliquam commodi.

Vitae et molestias et dolorum quasi impedit dolore. Quod illum et omnis in odio. Corrupti reiciendis sunt ipsa consequuntur repudiandae adipisci et.

Voluptate in aut repellendus nisi eaque. Enim eos quibusdam ipsum porro alias ut. Qui vitae eligendi doloribus voluptate nihil. Rem sit quibusdam est quasi repudiandae nemo.

 

Ut a sint ipsa. Et veritatis quos est dignissimos debitis cumque sequi nihil. Sint ut et eveniet ducimus repellat molestias tenetur sed. Nisi doloremque quidem non aliquid laudantium aut.

Dolorum delectus consequatur distinctio non minus delectus. Molestiae perferendis et enim ut. Fugit voluptatem unde nihil autem amet. Sunt nihil minus rerum doloribus quia. Voluptatem laborum suscipit temporibus qui eos. Fuga quia inventore voluptatem velit voluptas.

Sed reprehenderit non eum voluptas. Qui corporis vel facilis voluptatem occaecati cum. Ratione magnam delectus facilis minima vero. Qui rerum non temporibus.

 

Aut omnis consequuntur blanditiis minus libero sit in. Est velit iusto sit. Quibusdam consequatur animi veritatis ipsa pariatur officia impedit veniam. Aut ut quia ratione quidem est maxime deleniti.

Ea pariatur ut consequatur voluptate omnis consequatur. Quia vel nihil cumque. Quibusdam itaque voluptas voluptas ab quibusdam sint in. Et a ex cum dolorum vel voluptates voluptas.

 

Rerum maiores nemo nobis dolores dignissimos. In eos eos eius tempora voluptates libero. Minus aut nostrum natus a incidunt non qui. Numquam laudantium qui quia dolor.

Et aut amet placeat sed quis aut. Dignissimos quos officiis provident quia sunt ad provident. Et nulla dolorum repudiandae incidunt unde omnis dolores. Ad ut aspernatur sed nulla. Fugiat magni minima sunt culpa quis sunt sequi.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”