Less BB IB Full-time offers given out this summer?

Several banks have cut FT analysts, so I imagine that less FT offers will be given out after this summer. As you said, though, just focus on working hard this summer and getting a return offer.

Offer rates will be lower specifically in groups and at banks that are seeing restructuring, or in groups which have large-scale senior exodus (a la DB Healthcare). Don't think things are bad enough for you to not get a return offer if you do a good job though.

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Many banks over-hired in the past season (i.e. too many FT now) and will not be more selective with interns. I have a friend in a EB that's targeting 50-60% intern offer ratio - think similar pattern to different degrees throughout the street.

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Feels like Armageddon is not going to come. Inflation is on it's way because of rising wages. Even this is likely to cause no more than a small cyclical event that is just about normal anyway. Besides the risk of less deals because of regulation or whatever, there should be less concern for bankers whom are growing into their careers in terms of demand. My 2 cents.

Gosh, the responses are scaring me. Assuming things get worse economically next year, I am worried about return offer rates next summer and the number of analysts banks will take this coming recruiting cycle.

Well compared to senior bankers, junior bankers payment is much less so if they are really needing to restructure, they likely focus on trimming the top and perhaps lower junior's compensation, benefits, etc. You should know for your group as you work through the internship, but don't spread any of the rumors or express your insecurity if you ever get really concerned at work. This might make your team worry about you.

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Hiring is a lagging indicator. We like to pretend banks are smart but it isn't always the case. Market has been on a tear for a couple years now and Analyst classes have swelled both from larger OCR classes and laterals. Look at EVR and Moelis. Historically very lean but taking on HUGE classes by their definitions. Same for the BB M&A and lev fin groups. There will be analyst bloat for the next 2-3 years. Since 2015 analysts are in big classes and have another year left... and 2016 analysts are as big or bigger and have 2 years. Not to mention the 3rd yr 2014 analysts.

One of the questions we ask during our questionnaires in the WSO Company Database entries is what that intern to full time conversion rate is... So anyone reading this that may be deciding between two banks, if there is a significant difference (10%-15+), then I definitely think it should play into your decision of where to go.

Either way, best of luck to all of you this summer! Patrick

I heard ms dropped some associates too.

JPM is also 'firing' a number of analysts from the 2014 class. Air quotes because it's effective as of June 30 which is the two-year mark so the majority of the class already locked down their next position, but still firing in that JPM moved to the three-year analyst contract so that class was supposed to have a guaranteed third year that wasn't even up for discussion.

For the OP, it's already been said. Analyst hiring runs on a 2-3 year lag. This (class of 2017) summer will probably be the first that there's a lower hiring rate. I don't think it will be material, because analyst comp is such a small piece of the expense ratio that no bank really trims the class size dramatically.

It's easy enough to manipulate comp expense with less headache than drafting a small analyst class and having to scramble for lateral hires if dealflow picks up. One of two things happens. Either a few underperforming MDs get fired (thus freeing up several million bucks) or analyst bonuses suck (35-50% of base instead of 70-85%).

Since you've presumably already signed for the summer, I wouldn't put the wrong idea in people's heads by starting to ask what the targeted offer ratio is. Focus simply on performing your absolute best in the internship, and as a safeguard, immediately start rewarming your relationships from recruiting season at other firms.

Make sure all your contacts know that you're excited to start your first internship in finance and where it is, and thank them for all their help during the process. That's an email that goes out now. Send another around the 3rd week of the internship / 2nd on the desk and tell them how you enjoy what you're learning. Send another around the 6th week / 4th on the desk to tell everyone that your midpoint feedback went well and happy to find that this industry is somewhere you're excited to start your career. Send another at the 9th week asking if they have time for a 15-minute call or coffee.

They'll know what that last one is about. You need to show up and speak very positively of your summer experience (how much you learned, how you enjoyed the exposure to live transactions instead of just studying theoreticals over and over for interviews, how you handled developmental feedback and grew as a person and professional). Do mention, however, that you know you'll have a tight deadline once offers are extended, and as you think about where you want to begin your career, you are really putting thought into the culture of the people you're surrounded by. You remember how helpful he was and how impressed you were with X and Y about the culture there, and you'd love to know if their incremental hiring process is kicking off and how you can participate.

Follow that formula and you should be able to get a full-time interview at every single firm you spoke with during the summer recruiting process.

Keep in mind that those interviews are much different. It goes straight from "tell me about yourself" to "what did you do this summer". You need to be able to speak succinctly but articulately about everything you touched. Present yourself well and you may come away with multiple full-time offers.

Best of luck. Half of me misses the game, the other half is so glad I'm out of the banking rat race.