With all the news regarding inflation etc, are return rates at banks likely to be low this year for SA’s? Would low be 50%? Or do some years see 20-30% return rates in particularly bad years? Specifically asking for London ofc all speculation.
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yes lower, probably 25-40%.
very similar thing happened to trading after its most profitable year ever in 09, ten years of limited opportunity and decreasing headcount. will be same for banking now
Del
Too tough to speculate, don't think banks have decided. Need to see how deals & pipeline pan out over the summer + how is retention of current analysts. Almost certainly higher than 25-40% though at most US banks that don't hire significantly more interns than FT positions... maybe down to 50-70% at worst?
Basically, only diversity candidates and women will get return offers, and there's really nothing you can do about it.
Does that apply to the US?
So if someone is a bad performer but diverse they’ll take them over a strong performing non diverse?
No - when you hit the desk no one could give a crap whether you are a diversity candidate or not, the person who gets along with people the most and perform the best will convert.
In the end of the day, if you are a good candidate you will convert. Yes, deal volume in ECM and LevFin etc is down but at least expected to pick up soon and in one year times things should be better.
If you are a good candidate, they will make space for you - some banks allow you to convert in other teams / divisions if there is no head count.
This is what no one gets, as if conversion is a randomised process.
Conversion rates (in the range we're talking about within banking) really would only matter if the conversion process was random (it isn't) or if you somehow could try to convert more than once (obviously not true).
Conversion rates vary in normal years too because sometimes classes are just shit. All that's gonna happen is they're going to take less on-the-fence mediocre candidates. So just don't be this person...
ready to recruit for RX FT
how about US conversion rates?
what groups r predicted to have higher/lower conversion rates?
Humm let’s see… oh yeah I can’t predict the future -.-
well no duh i was asking for predictions
Would expect lower conversion rates (in no particular order) from ecm, levfin, c&r, sponsors and maybe fig depending on how diversified the team is across subsectors. Curious to hear what others think.
As an incoming sponsors intern, I'm curious to hear your thoughts on why u think Sponsors would have lower conversion rates this yr.
RX prolly higher lol
Energy groups will see a higher conversion rate than others groups if not at the normal level (that is, every competent intern gets an offer).
Do you think this applies to infrastructure as a whole? Like by energy do you mean o&g Houston type stuff or more downstream energy infra too? Renewables seems to be doing well too I think
how do you guys think M&A offer rates will be affected?
Curious to hear this as well.
According to our HR substantially lower. We had 80% last year and this year it’s expected to be around 60%. Echo the point above about minorities, turn up in drag and you’ll be ok!
:(
Just be grateful you’re not a VP… too late to exit to PE and to junior to add value at a bank. Also most of your job can be done by a much cheaper senior associate. If I was in a team with several other VPs I would be looking at exiting to a corporate or SWF
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