Best FIG Modelling Course? (BIWS, WSP etc?)
Hey,
FIG analyst at GS/JP. I'm getting absolutely fucked by the learning curve and tbh i'm just not the type of person that can look at a super complex model with infinitely long excel formulas.
Can someone put an end to my misery and just tell me the best FIG modelling course I can get. I learn so much better with content I can learn in my own time.
Definitely don't like the idea of spending so much money as I come from quite humble beginnings, but its at the point where I might as well invest in my future.
Bumb Bc same. Fig is so hard to learn yourself given the complexities in every industry and the fact that it’s different from anything in training.
It's an absolute joke to be honest.
following
aside from gs/ms/jpm, how is FIG view from bofa/cs/citi/barclays? Are exits really limited?
Depends on deals like, as fig is more analytics/ overall technical, you’re modeling skills are usually a lot more legit coming from fig. Also you can basically figure out easier ebitda using models w anything from fig, and select industries (insurance brokerage, insurrection, fintech) within fig model the regular way so u get that experience too.
Not OP but am at one of those other bulge brackets you mentioned. Plenty break into mega funds, have a look on linkedin. Couple guys from my group went to KKR and Warburg Pincus.
Thanks. guess would really depend on the individual assume all these grps get looks from headhunters. Do FIG groups tend to be more sweaty due to dealflow/modelling in house?
what kind of modelling do you do in FIG?
Dunno like banks, insurance and fintech mainly. FinTech is a joke to model since everyone's private and unprofitable, so mainly focusing on the other two.
no but i mean what modelling do you do of the banks?
Just harder to understand the accounting as it’s much more “NPV-based” than other companies that are closer to cash accounting, e.g. life insurer might show an abnormally high p&l expense due to making an actuarial model change to their future liabilities etc. You also have to layer on the capital requirements (which drive the dividend capacity / cash generation), which you won’t have to bother with in a regular biz.
Once you understand the accounting properly it’s not much harder.
Invest in a FIG stock
Or send me a model of a PNc and thatsyour course
Did you ever get a course? You certainly didn’t get any helpful answers in this thread lol
Yep got BIWS. That said, its actually mega easy once you do it. Basically:
Banks raise deposits from customers (a liability), to issue loans (an asset). Banks earn between the interest rate spread on the loans vs. the deposits.
The main kpis are:
Cost of Funding (% interest rate you pay on what funds the loans you issue. It doesn't have to be deposits, it could be a securitisation etc) = Interest Expenses / Average Funding Liabilities (normally deposits)
Gross Yield (% interest you GET on the loans you issue.) = Interest income / Average Loans Balance (Can be expressed as either gross or net, which just mean you net out allowances for loan losses which is a contra asset similar to accumulated D&A)
Cost of Risk % = Provisions / Average Loans
NIM = Net interest Income / Average Loans
That is really it. You project your P&L by first projecting your funding sources and loans (i.e. your assets and deposits).
Are you still in FIG? Sounds like you enjoy it. I'm in FIG too but hate it.
I feel like for me the most difficult aspect of fig modeling has been projecting the funding sources/loans and forming a view on the b/s, which I imagine would be especially difficult coming from an industry like tech or consumer where emphasis is on intangibles. Gross yield/NIM and the other metrics don't say as much about capital structure, b/s health (provisions maybe but mgmt will usually under-provision anyways), or capital efficiency (ROA/E) which I've seen become differentiators for businesses that might otherwise have the same loan yield on paper.
To build on the other comments, I've seen FIG models get complex very fast once you start trying to attach financing assumptions to your volume projections and linking it with the cash flow/income statement. Simple items like a loan receivable can be split out into multiple moving parts (HFI vs. HFS, senior vs. mezz) and get partially amortized, sold in bulk, or accrue cash/pik interest (which all have different implications in different parts of the operating model) and have to be tracked and tallied up at the end so the stupid b/s balances. It's been a great experience for building a really solid accounting background, but sometimes I am left wondering what it would be like to cover a more straight forward sector like widget maker...
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Hey- was the BIWS course worth it?
quick follow-up question: what bout insurance companies?
Any recommendations for learning the Specialty Finance space?
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