Goldman Sachs BDPG vs HSBC IB
Hi I am new in the forum, I am looking for some advice.
I did a summer internship at HSBC IB Coverage and I got the offer to start as an analyst next summer. Bear in mind that there is Coverage Advisory and Coverage Relationship Management. I will start on CRM and then I maybe can switch and the real IBD is Coverage Advisory. But there are real chances of ending up in Coverage Advisory if I wish to do so. Basically in the graduate program you rotate in both divisions.
Next week I have an interview with Goldman Sachs Bank Debt Portfolio Group. I do not know much about this group, if anyone can help that would be great!
Both positions are for London. In case I get the offer for both which one would you choose?
I am definetely interested in IB but HSBC is not very focused on IB and Goldman Sachs has the name, but also I don't know what are the exit opportunities of the Bank Debt Portfolio Group division, neither the hours or compensation.
Can anyone help me?
Thank you very much!
Sorry to hijack -- but could you just speak a little bit on the difference between Coverage and Coverage - Advisory for HSBC?
Coverage Advisory is what we know as M&A and advisory for other banks just that you cover a sector. Then Coverage or CRM (coverage relationship management) has more to do with the relationship with the client. You basically do less modelling and rarelly do valuations, but you stay in touch with clients and do pitchings but also you work with DCM, S&T a bit because basically you are trying to generate transactions for the bank. There is coverage for a sector, for a country etc. And then once there is a deal or the possibility of a deal Coverage Advisory steps in and they do the modelling and the transaction of the deal, usually M&A.
So basically for example you are in Coverage Oil&Gas you have a portfolio of companies which you stay in touch with and try to bring in flow for the bank in any area, and then the specialized area will complete the deal. Directors in Coverage get good deals of bonus for the flows they bring in. As an analyst everyone wants Coverage Advisory because you do the modelling and the skills you need for the exit opportunities. The hours are better at Coverage than C.Advisory.
Bear in mind that HSBC is a global bank not so focused on M&A so the bank tries to offer a potential M&A client a bunch of services like debt, transactional, cash management etc. that is why there is the distinction of Coverage vs Coverage Advisory.
Once you complete the internship you will be rotating on both areas as an analyst first 2 years, then you settle. That is why I was saying that it is not so sure that I end up where I want to be which is M&A (Coverage Advisory).
Thanks so much for the response. Kind of a dumb question (I'll stop bugging you, I promise) -- is Coverage still considering investment banking, in terms of the title/position?
Don't worry you can keep asking.
It is considered investment banking and front office although HSBC calls everything "golbal banking and markets". Salary for an analyst 1st year is 50k in pounds+ 6k signing bonus plus final bonus which is 83k in dollars plus final bonus so it is an investment banking salary as well. Which is hell of a good deal because the hours are very good.
Also I would add that it is a great way to make it into m&a, since the application for m&a aka coverage advisory is more crowded and then you do a mandatory 6 month in m&a as part of the graduate and if you do well then you finish the graduate programme and if it is your wish you can be assigned to advisory. That is my plan.
bump
bump please help
Seeing the recent news about hiring and pay freeze, I'm just wondering if HSBC is still hiring...Or even they already gave you the contract, they can also call back if they want. Am i too pessimist?
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