Is working as an analyst in a derivatives solutions group (not trading) a good place to start a career? How much of the job is actual advisory work and what kind of skills would you develop? What does a career progression look like and are there any exit opps?
| +355 | Evercore Intern Seizure | 54 | 7h |
| +67 | JPM M&A is Gone??? Purely Coverage Banking??? | 31 | 6h |
| +58 | Is DCM actually underrated ? | 24 | 17h |
| +50 | How do I understand vs. just memorizing? | 5 | 16h |
| +48 | Losing my personality in Banking | 9 | 17h |
| +47 | Are all Tech / TMT groups sweaty? | 38 | 13h |
| +42 | Associate & Above IB exits | 16 | 3d |
| +32 | Incoming IB Analyst: Best Ways to Prepare? | 10 | 9h |
| +27 | Which groups are ideal for laterals? | 12 | 11h |
| +24 | The good and bad with Wells Fargo | 1 | 17h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
which shop is this? some are more so like ib and some arent
I'm thinking about applying for SA for 2019 and was trying to put together a list of opportunities outside just M&A. It seems like they're all over the place in terms of IB. For example, Citi places it under Equity Markets. GS says it's in their IBD Financing Group but is it really? . Any insight?
Could be working closely with cross boundary countries and help them to hedge their fx risk. Could also be coming up with derivatives trading ideas. You’re essentially selling a service or idea so it’s IB or Trading. But if it’s for a buyside firm, it could be operations.
It's a derivatives sales role for corporate clients - it's not traditional IB but at some banks this team is not allowed to be on the trading floor, given the deals are usually on the back of some bond issuance/loan
Would it be an interesting place to work? If it were legally part of the investment banking team, how would hours and compensation stack up against traditional IB?
Hours would likely be less than IB. It's a fairly technical / math driven desk (lots of CFAs). Depends on the bank, but you would most likely identify ways to hedge out interest rate risk in bonds / loans or lower interest rate payments through swaps without having to re-issue debt. It is much closer to the markets than traditional IB, but still on the private side (IE not on the trading floor). It will most likely not have the traditional exit ops of other IB coverage groups, as what you do is very specialized. That being said, people enjoy the work, its a profitable desk, and you'll be paid the same as your IB counterparts at least as a junior.
How do they bring in revenue? Is it through some fee structure or the spread on any of the derivatives they end up selling?
Also you mention compensation is the same at least as a junior. How does the compensation progression look like, especially if they're aren't the traditional exit opps as another option. Even if only a small percentage of people actually make it to VP or MD, it'd be interesting to know what that looks like
Not really sure about compensation as you progress, sorry. They make fees through the spread as you mentioned. Typically less sophisticated clients will get charged higher fees than a company that's more sophisticated. For example, some companies have their own in-house derivative experts on their treasury desk and they only need the bank to execute the trades for them.
That's one thing I forgot - Your clients would all be on the treasury desk at Fortune 500 corporations, so that could be an exit op down the road
Non rerum et nesciunt et ipsam. Similique rerum consequatur adipisci accusantium. Et quod dolorum fugiat deleniti. Nam culpa aut adipisci velit consectetur ab. Quibusdam voluptas repellendus est voluptas incidunt distinctio aspernatur.
Quis qui saepe et laudantium ut. Odit autem consequatur architecto aut.
Fuga omnis sequi reiciendis illo aut sed et. Fugit dolor vel vel aut quo tenetur ipsum dolorum. Quidem voluptatibus officia iusto. Id illo ut necessitatibus voluptatum labore.
Odit similique a qui et sit. Et est aut culpa explicabo a dolore voluptate. Vero suscipit quibusdam porro est aut. Suscipit sit impedit aliquid non.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...