Public Finance Q&A

VP total comp estimating about $350k, Directors and MD are harder to say as it depends highly on results, but rough estimates I would say D in the +$500k range and MD +$750k range

Hours are better, analysts I would say depending on the firm, range about 60-70 hr on average but of course it has its good and bad weeks. In terms of the work, I think more quantitative skills are required because unlike corporate debt, municipal debt can be structured (often is) up and down the entire curve solving against revenue constraints and an issuer’s desired debt service. Also, if you like public policy, you will learn a lot about now state and local governments work. Finally, depending on the types of deals and issuers you cover, it could be exciting and mentally challenging (from an exercise your brain perspective) even after many years - particularly in the current environment when governments are trying to figure out how best to navigate the financial impact of COVID-19.

In terms of life style, let’s just say I think it is a good balance of making a very decent living and having time to enjoy it.

It depends on where you are in your career when you exit, I know analysts and associates who left for tech, hedge funds, etc. as they are still early enough in their careers but have been told that the experience they gained in PF with dealing with clients and critical thinking has helped him make the transition easier (whether that is true or not I am not sure but make sense to me). Those later in their careers usually go into government or in another role within the industry (credit, insurance, etc), but I think those who have been there long enough have a decent nest egg saved up so not necessarily motivated primary by money if they leave.

I think all of the skills needed to be successful in most finance jobs are needed. We spend a lot of time responding to RFP (because it’s government and many have procurement rules) so MS Office skills (Word, Excel, and PPT) are a must (if you don’t know it, you will learn it fast). Then also it helps a lot to be quantitatively incline, as there is a lot of modeling involved. But I think some of the most important qualities are the ability to look at the big picture, and work as a team player. Junior resources are strained at many BB firms so a non-team player will be exposed fairly easily.

For the first part, see above. On your second question, with BB firms there are a lot of opportunities to move laterally within the firm. PF encompasses not only investment banking, but also S&T, credit analysis, derivatives and other cap market structures, P3, direct lending, etc.

I think the perception that you are "pigeon holed" in munis is because there are many who entered PF without having much interest in public policy. Also, any job that pays less than what you make in IB is viewed as not a move up, but in reality if you are indeed interest in the public sector and later decide to leave the bank and want to be the Finance Director at XYZ county or school district, you can certainly do that. So people do move around. But like any other job, if you get too far into your career, say want to go from marketing to becoming a programmer, of course it will be much harder (but doesn't mean it had anything to do with your first job being a "pigeon hole").