Contingency Plans if FT Jobs Get Rescinded?

Intern in IB-M&A

What are people planning to do if their jobs get rescinded / firms decide to down-size on their analyst class? Are any Master's programs still accepting applications? Not tryna sit at home doing nothing for a year.

Comments (20)

Mar 26, 2020

contingency plan is travelling until further notice lol

Array

Mar 26, 2020

The ironic part is you can't really travel anywhere right now... road trip?

  • Incoming Analyst in S&T - FI
Mar 26, 2020

Applying to Masters now. Very late in the game though so I am not incredibly hopeful. Really, really just hoping this blows over by early summer.

  • Intern in IB-M&A
Mar 26, 2020

Which Master's programs?

Mar 26, 2020

Find a way to make money on your own. Shows entrepreneurship, grit and drive.

  • Incoming Analyst in IB - Gen
Mar 26, 2020

if your bank rescinds your offer, youre obviously going into a shit bank and should probably focus on a different career path... markets just rebounded and will have the best week since the 1930's- economy opens up in a week or two and this whole thing was overblown- extremely disappointed with the WSO community on this whole pandemic. I honestly thought there were intelligent people in this field but this insane overreaction/panic/pandemonium demonstrates a lack of critical thinking skills.

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  • Prospect in Other
Mar 26, 2020

Disagree -- # of cases will continue to increase for the next few weeks. Logistic growth curve.

  • Incoming Analyst in IB - Gen
Mar 26, 2020

Ok man... Im talking big picture here, credit markets are functioning fairly well, even HY markets are beginning to open up- much earlier than anyone thought. Will there be more deaths? Yes. Will NYC be closed for the next few weeks? Yes. Will markets function and be somewhat back to normal in mid July and August when FT analysts hit the desk? Absolutely

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Most Helpful
Mar 26, 2020
Incoming Analyst in IB - Gen:

if your bank rescinds your offer, youre obviously going into a shit bank and should probably focus on a different career path... markets just rebounded and will have the best week since the 1930's- economy opens up in a week or two and this whole thing was overblown- extremely disappointed with the WSO community on this whole pandemic. I honestly thought there were intelligent people in this field but this insane overreaction/panic/pandemonium demonstrates a lack of critical thinking skills.

I'm not sure you understand how this works. The markets have rebounded slightly after getting whacked 35% (I have lot of clients that are down far more than that), no public company is going to do a deal right now with their stock trading at a 5 year (or more) lows. The uncertainty and recovery is going to tie up public M&A markets for a long time short of a dramatic V-shaped recovery. Right now any merger or deal involving issuing stock is at risk of cancellation - have a couple clients ready to pay the break fee or are scrambling to come up with a creative solution in the debt/preferred markets that doesn't crush their ownership %.

Also talking to credit funds who are basically pencils down on issuing any new credit until at least Q4. They want to see how companies performed during Q1/Q2 during a complete shutdown (all of those recession analyses that bankers have been running for years will actually get to play out) and then they will want to see things back more to normal in Q3 before they think about investing. You're talking about tying up dealmaking for the next 6 months potentially (not to say nothing will get done but high yield markets will take a massive hit) which will crush a lot of banks.

The economy is not opening up in a "week or two", cmon and even if it did there would be a wild amount of uncertainty which would continue to cripple anyone's confidence in doing M&A or capital markets work.

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  • Incoming Analyst in IB - Gen
Mar 26, 2020

I disagree on the basis that this is not a financial issue. There is no question about banks soundness/the soundness of businesses. This is a health crisis, and once there are cures (not a vaccine which will take a year) this madness will cease. Furthermore, its not a prolonged economic issue (like normal cycles which take years to recover from). In any case, your comment is actually irrelevant because we are discussing rescinding FT offers, a major decision and NO BANK or company wants to ever do because it looks horrible. Moreover, you cant have layoffs when all of the current analysts will leave to PE- what do you think will happen at these banks when activity seriously picks up in the next few months. You are yet another fear-monger.

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Mar 26, 2020

I recently learned a new word and would love to share - Covidiot.

Mar 26, 2020

I love the cheery attitude, but you do know we're still way to early to determine anything, right? And using the market performance as a proxy for hiring when Unemployment Claims were 3.3MM last week isn't a great measure to determine confidence. Neither is assuming the credit markets serve as a good proxy for function. The Fed is propping the markets up by creating liquidity. Back in December, they injected almost $100Bln in liquidity through Term Repos. This was expanded to $300+Bln between Janurary and the end of February, which means the short term funding market was already having structural issues. Add in the $1.5 Trillion in Repos from earlier this month and you tell me if the credit markets are operating normally. Oh, and if you are a company taking any bailout funds, you're barred from M&A until 1 year after you pay back the bailout. Lending dried up in 2008, and will dry up again. When companies are drawing down on a cumulative $124Bln against their revolver, that should indicate that companies are afraid of another credit freeze. This is going to get worse before it gets better. So if a bank rescind's the OP's offer because things don't get better in a month or two and it gets worse, or your offer seeing as you're "Incoming" as well,, it's because they see a drastic decline in business coming their way over this. If we get out of the viral portion by the end of Q3, how long do you think it will take everything to recover? It's not going to be a V-Shapred curve, I'll tell you that much.

Mar 27, 2020

I would actually be more worried about offers being rescinded if the health crisis ends before start dates. Most banks have already announced they are not cutting staff right now (even layoffs that were previously announced). However, if you move from health crisis to economic crisis, the negative connotations of laying off bankers disappear (in case there are ever negative connotations for laying off bankers :) ).

The problem with rescinding offers is that it only takes one bank to start, and they others will likely follow course if the economy is bad. I don't remember if this happened in '08. I actually starting working in '08, and almost nobody was hiring for FT position if you hadn't already done an internship.

Loads of juniors got fired in 08-09, not just senior bankers. This thinking of "if they don't hire all their analysts will go to PE" assumes PE will be hiring in a crisis as they were hiring in a boom. Not the case, especially if they're holding off raising any funds (which I think they will for a while if things don't get much better in the economy soon).

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Mar 27, 2020

I'm not sure where you get this idea that the health crisis ending before start dates would put FT analysts at a higher risk.. The longer the health crisis goes on, the worse the economy is going to be hit. You make it sound like it is either health crisis or economic crisis when there can absolutely be both at the same time. add on to that the difficulty of onboarding and WFH

Mar 27, 2020

Actually, I didn't say it's either. I said if the health crisis (which also tanks the economy) gets resolved, but the economic crisis stays, it's actually more likely banks will cut a lot of people. They don't fire people now because it looks really bad to do so in a heath crisis and the Fed and US Gov is backing every major company.

If we're still in lockdown by start dates, I expect they'll be postponed. Not sure if FT analysts will get any pay during the delay.

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Mar 27, 2020

Were the majority of juniors fired in 08-09 in groups more susceptible to recessions (e.g. LevFin, Sponsors, C&R, etc.) or across all groups, even including the more "defensive" sectors (P&U, HC, Defense, etc.)?

Mar 27, 2020
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