BNPP Coverage - Global Banking questions

Based on the most helpful WSO content, BNPP's "Coverage - Global Banking" division appears to be a hybrid role that blends elements of both corporate banking (CB) and investment banking (IB). Here's a breakdown to help you understand the nuances:

1. Corporate Banking vs. Investment Banking:

   • Corporate banking typically focuses on relationship management, underwriting credit exposure, and providing traditional banking products like loans, deposits, and treasury management. It is more relationship-driven and involves ongoing client management.
   • Investment banking, on the other hand, is transaction-focused, dealing with episodic events like M&A, IPOs, and capital raising. It involves financial modeling, valuation, and advisory services.

2. BNPP's Coverage Role:

   • The mention of "relationship management" aligns with corporate banking, where maintaining long-term client relationships is key.
   • However, the inclusion of "financial modeling, pitches, and sector teams" suggests that the role also involves IB-like activities, such as preparing client presentations, analyzing financials, and potentially supporting capital markets transactions.

3. Coverage and Sectors:

   • BNPP's "Coverage and Sectors" could indicate a structure where teams are aligned by industry (e.g., TMT, healthcare, etc.), which is common in IB coverage groups. These teams often act as a bridge between clients and product specialists (e.g., DCM, ECM, M&A).
   • In some firms, coverage teams in corporate banking also work closely with IB teams, especially in firms with integrated Corporate and Investment Banking (CIB) divisions, like BNPP.

4. Your Goal to Work in IB:

   • If your ultimate goal is IB, this role could still be a stepping stone, especially if it involves exposure to financial modeling and sector-specific work. Networking within the firm and demonstrating your interest in IB could help you transition internally.
   • However, if the role leans heavily toward traditional corporate banking, it might not provide the depth of IB experience you’re seeking.

Recommendation:

• During your interview, ask specific questions about the day-to-day responsibilities, the balance between relationship management and transaction work, and the types of projects interns typically handle.
• Clarify whether the role involves working on IB transactions (e.g., M&A, ECM, DCM) or if it is more focused on credit underwriting and client relationship management.

This will help you determine whether the role aligns with your career aspirations in IB. Good luck with your interview!

Sources: An Overview of Corporate Banking, An Overview of Corporate Banking, Q&A - VP in healthcare corporate banking, Why corporate banking instead of investment banking?