The future?
Whats your thought of the future of investment banking? Lets say 5-10 years.
Will the salaries be the same? Will it be harder to break in?
Whats your thought of the future of investment banking? Lets say 5-10 years.
Will the salaries be the same? Will it be harder to break in?
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Well, the answer to #1 will answer #2, but I don't think anybody can say what the future of IB will look like. Think about what people thought 5-10 ago. Do you think they were right?
Hmm.. very interesting question. I have heard numerous interviews with HF legends saying that engineering will be the "finance" (in regards to salary and exit ops) of the future.
i'd actually say Engineering in a lot of ways is the finance of today and the future. The reason I'm trying to break into finance is because I'm not smart enough to be an engineer -- so something is better than nothing.
Ultimately though, entrepreneurialism is always the top of the food chain
We are entering an age of great deleveraging, a cycle that builds on itself, I can't imagine the outlook for investment banking being anything but negative.
Engineering is not going to be the future of finance if you mean that everything will be run by uber quant-driven black box algos. That's not going to happen. No question that quant funds have a permanent place in the market (unless Congress does the right thing and eliminates high frequency trading, but let's be real), but fundamentally driven investment strategies will never die out.
Investment banking salaries and the future of the industry are going to be a function of the deal cycle. There will always be demand for smart young monkeys who are willing to work 100 hours a week for X. X will be a function of how many deals there are and what the size of the fees for those deals are. Deal volume will come back in strength once we get through the current deleveraging period, and as long as fees don't become regulated, they will probably as high, if not higher in the future (due to inflation). I think investment banking will come back, it's a question of when.
Investment banking existed in its prior form as the intersection between supply and demand, both in the labor markets and in the deal markets (i.e., what companies are willing to pay for banking services). To think it will not come back, you have to have a convincing argument that either of those two equilibria are permanently altered-- not just "permanently altered" because people have short attention spans and everyone is in a bad mood right now, but changed for structural reasons.
Engineering will probably be the future. But you don't have to be an engineer to work in investment banking and I don't see why that would change in a 5-10 year time.
Investment banking has always been a high paying job, why would the salary go down now?
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