Should I take CFA L1 to increase chances at lateraling?
All,
I'm 6 months into my first year as an analyst at a small MM investment bank. It's in a small city where my alma mater is, which is a non-target. This year I (the team) expects to close a $50mm+ sell-side deal, $3mm equity raise, $10mm mezz raise, and another $10mm+ sell-side we've just begun. Mixed in are other engagements such as some hourly valuation work and buy-side services. I've passed Series 79 & 63. I've taken WSP's financial modeling course. The group typically has 5 deal-oriented employees and 2 executive assistants. Our VP left and I've since worked directly with the MD on a few deals which I feel expedited my learning experience.
I really like our group but I want to apply to some larger, more well known, MM investment banks in cities outside of my hometown.
Who here thinks taking, and making sure I pass, the CFA L1 will significantly improve my chances at lateraling? Who here thinks I should instead use that time to network (the former doesn't imply I wouldn't)? Who here has any other opinions?
Thanks
Based on my reading of WSO and talking to people in the industry, my opinion is to spend the time networking. CFA isn't really relevant for banking and will be a huge, unnecessary time-sink. I've even spoken to people in ER who say CFA (in their opinion) is a waste of time and networking is better when trying to lateral into another ER job. If that's true at all, it's even truer for banking.
Don't do it. Spend your time networking.
Sources: life, time spent studying for CFA.
You don't think it in any way validates your intelligence or work ethic?
Not enough to land you a better job in IB or compensate for the time spent on it. MC>MB.
I second everything Kassad has said
Update: My firm will pay for the test and study materials
It's a no, dude. It's a no.
Even if it's free, shit even if someone pays you to take it, it won't be worth the time you sink into it if your goal is to move to a better IB job. There are much better ways of doing that. Shit, if you can't get another IB job from where you are but would consider an MBA, if you spend the 300 hours or whatever is required for the CFA Level 1 doing some sort of charity work/some community service that you care about, that will help get you get in and doing the MBA would increase your chances of getting to a better IB job solidly.
The CFA is just not worth the effort if you're only doing it to move to another IB job. If you're genuinely interested, or want to move to ER/AM etc, then go for it, it may help- but know you're wasting your time if it's to move to another IB job.
Thanks all - I appreciate it!
Don't take CFA if you're trying to lateral into banking. I don't think you realize just how much you're taking on. Maybe for some on here it'll be a review, but for me it's awful. It is some pretty dull stuff (e.g. currently reviewing inventory pricing methods, next up is taxes, YAY!)
CFA = WASTE OF TIME
If you're looking to stay in banking your time is much better spent networking and/or studying for the GMAT if business school ends up being your best chance to lateral.
Making progress on the CFA can be useful in breaking in to investment management, but is not necessary even then.
Ok, CFA may not be the best option, but if it's your only option, then definitely take it. It is at least an indicator that you have some depth of theoretical financial knowledge.
It won't help. As some mentioned above, it's a waste of a time. Beef up your resume, study during your free time, and network. It's the same process as when you were applying out of UG, except you need to know more. Some would argue it's almost the same exact process since you'll be starting over as a first year. Good luck.
And to clarify, I'm speaking in regards to IB, not AM or ER etc.
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