Rethinking IB
I am a current Corp Banking Analyst. Originally my goal was to lateral to my firms IB advisory desk but these recent layoffs has really made me rethink even moving to IB. Unlike IB, CB Coverage is fairly recession proof because regardless of the current economic cycle, corporations still have day-to-day banking needs. Am I wrong to think like this? Can I move up in Corp Banking to RM/MD level and be compensated handsomely? Thanks
corporate banking coverage?
Yes
honestly I'm not familiar with the breakdown of corporate banking. Guessing this is Citi. How are teams broken up? What I can tell you that IB analysts have a larger bonus and that only multiplies as you move up. It starts similar but I believe the gap widens significantly come VP level. In a down market, yes that is different. I also wouldn't say anything is recession proof. IB will hit its upswing again. You really just need to be solid at what you do and get along with people.
If CB is getting the same base and 20-30% of base as bonus. You're 100% correct that this is the better decision.
30-40% of base is what most middle bucket IB analysts/associates get most of the time (sometimes they get zero). My best friend is at Citi and he made it to VP and his girlfriend in CB has made more than him.
Do you value prestige over having time to gym, travel, get dinner with family/friends etc.
Personally - i dont have a life outside of work, so this line of work suits me very much
It is my understanding that base is the same for IB and CB, but bonuses are vastly different. I don’t really care that much about prestige. I wouldn’t say I have a super exciting life outside of work but do enjoy having freedom and time off
I’m not sure if it’s a 100% the same lock step on base.
CB is cyclical to some extent — right now, it’s mostly only “need to go” transactions and all the big SIFI are under capital constraints.
Re layoffs — be careful where you go, I don’t get the sense GS ever gave a shit about people. Additionally, a lot (not all, but a lot) of the cuts at the junior level are team members who were dead weight. I’ve had some incredible juniors here and there recently, the the difference between the good and the bad is huge the past two years.
I was thinking of jumping ship to Citi because their CB base is same as IB
Can you lateral from IB say DCM over to Corporate Banking? Is it a safe/wise thing to do in terms of career stability/safety, or is it about the same
I think anything’s possible. I can definitely see DCM to CB mostly because a lot of what CB does is lending. Ultimately it’s your decision and based off what you want to do. I think another important factor is how your firm positions CB. At my bank CB handles most of the coverage for large institutional clients so I get IB coverage experience as well as your classic Corp banking experience.
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