Hi Guys,
Which division below is least impacted by the recent finanical downturn?
S&T, IBD, AM, Research, Risk.......
I reckon S&T is heavily impacted and IBD is a bit better. What about Research and AM?Are they still hiring juniors? Any input is welcomed.
THx....
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I would imagine everyone is pretty impacted, firms are looking to shed as much headcount as possible.
No one is safe.
Technology and HFT
AM is least impacted, as their always need to be X employees for Y assets. Everything else is pretty much tied to economic activity. Research is also something which only grows, from my knowledge, as firms start covering more companies and this usually happens in a growing economy.
Historically IBD is less sensitive than S&T in downturns. That's been my experience talking to friends; that was the experience a number of firms had in the 1980-83 recession if you read "Greed and Glory on Wall Street".
^^Irrelevant. Thats based on the business climate 30 years ago.
Research doesn't provide direct revenue so it is one of the first to places where headcount is slashed.
^^As well as three years ago in 2008. That said, in a merger, IBD can get hit just as hard, maybe even harder.
mergers destroy IBD, overlap among coverage groups is near perfect and unless the new firm can whip up double the deal volume the execution guys will be hurting soon after. Maybe ECM/DCM benefits from the platform, but that's assuming they aren't also showing sales and sales traders the door. Middle and back office see deep cuts. S&T depends on the rationale and environment, but in the current world they will get hurt as well.
You best bet is prop groups and AM. Where incremental people (should, if they haven't already been fired) bring in incremental revenue. I guess prime brokerage and some other stuff would have a similar model.
Jobs in risk aren't going anywhere... Ops Risk, Market Risk, Credit Risk, Regulatory Risk, AML/Compliance Risk are all number one priority for top banks. Look at all the issues that have hit banks hard in five years. With tight credit, volatile markets, and new regulations prevalent, banks need people for the jobs listed above. They are certainly not the most glamorous, but if you want a safe route that is an option.
If you were only asking about "Market Risk" when you mentioned risk, my bad.
Bump Bump!
Methinks, PWM/AM.
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