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While this has been discussed numerous times, here is a short answer.
Middle-tier analysts get good jobs, not as good as a top tier analyst, but good jobs. They goto MM-PE shops, hedge funds, heck if they are good at networking they can get top jobs as well.
Can you put the bracket you belong to on the resume?
Its a point that you usually talk to, and is really only relevant if you are top tier. Banks don't necessarily say, you are tier 2 out of 5. They give you a number and you only know if you have top, bottom, or somewhere in between.
Powermonkey - how are PE shops going to know if you're top or not? Is the buyside hiring process going to be different from the traditional banking process?
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