Am hearing a number of analysts and associates at my firm discussing this, one apparently having gotten confirmation from someone he knows at JPM.
Can anyone else confirm or deny anything in regards to the specific teams/groups/sectors that did or didn't make offers as well can anyone speak to the actual size of JPM's summer class this year?
same in apac
Does anyone know if this means they are just ramping up FT recruiting because their interns were bad, or if the firm just doesn't want as many entry level people? I can't imagine the quality of interns was that much worse than usual, so must be something bigger going on.
I think this article only pertains to Summer Associates, though I could have missed something
From the article:
"Analysts also had a lower than usual hit rate, around 50-60% offers. "
Reportedly its because they are anticipating a downturn in markets and don't need as many bodies. It is not a result of90-100% of the interns being "bad."
Jeez
Hey, this is not because of untalented interns. Actually this intern class is very talented. There are location strategy changes happening at JPM as well as budget cuts due to the impending “recession”. I currently work at JPM
this means very little to no FT recruiting then right?
Can confirm from classmates at associate level
Why is this not getting more attention? This feels radical for a so-called Tier 1 bank.
At a BB in London this summer and I can tell you that banks are trying to have hire the minimum to be able to cope until a downturn comes. Definitely more careful than in 2007 for recruiting imo, especially for very cyclical industries/market related positions.
Agree with this.
I can confirm that this is happening across various platforms, including boutiques and middle-market firms. As others have mentioned, this move is meant to preempt an economic correction in the near-term. With that said, most firms will not show talented junior bankers the door.
Simply put, focus on the quality of your work and connection with your teams.
No
Know 8 JPM summer associates. None of them got offers and are giving similar numbers. From 3 different schools.
So can you add value and share what the real numbers look like?
No
In banking and heard the same from our summer associates interning from their friends at Jpm. Heard it was more like ~50% and that none of the associates in p&u got offers.
I am wrapping up my summer internship and a few of the full-time analysts have told some of us interns that they may only keep 25% for full-time. A lot of the interns in my group are pretty pissed
Is this JPM?
Mind if I ask what group you're in/if this is localized to certain groups or if it seems widespread? Also, assuming this is NYC IBD?
Yes, this is NYC IBD and I do not know if it widespread across the street.
Also, not JPM makerbayfield
The stock prices of M&A firms have taken a big move down...look at Moelis stock (MC).
Advisory firm stock prices tend to lead recessions as less business activity means fewer deals, lower revenues, etc...so it would make sense the the BBs don't need to get heavy on staffing when the expect future deal flow to be lower than recent history.
This will be transitory of course...recessions dont last forever, but as a manager, it makes sense to pull back on hiring until things pick up after the coming recession...because you never know how long the recession will last...and they can always ramp up hiring when they need to.
At the very least this isn't universally true. My group was 100% offers for summer analysts and 50% for summer associates.
70% SA return for BB IB here (we don’t have any summer associates - thank god)
For jpm?
No
Sounds like Goldman Chicago
Nop, BB NYC
Any thoughts on if this will impact 2020 SA recruiting? If they're predicting a recession and want to keep it lean on junior bankers, it would make sense to not bring in as many SA in the first place.
to the bank, SA are a cheap option (its really just a summer interview)...where as hiring FT is less so.
Hiring one FT is the equivalent of hiring ~12 SAs for one year
Can you explain to me why this is?
Can confirm. Rates were 50% for my group this summer with no anticipation of filling with FT recruiting
Is this for NYC ibd? Summer analyst or associate?
Summer analyst for NYC BB IBD. We had one summer associate who didn't get an offer
.
I somewhat expected offer rates to decrease this year especially given how early recruitment started for SA 2019 (may be harder to get legitimately qualified candidates when they've only had a freshman summer internship at most), but seems like this is compounding with the economic situation. Not good news...
Hopefully this doesn't set a precedent for banks across the street for the next cycle when deciding about 2020 SA returns
At JPM, heard from a FT analyst watching some of the HireViews that he was told from HR to be conservative with who to let through and that head count seemed very much on their minds.
14/16 analysts got returns and 4/6 summer associates got returns in my group
people actually watch the hirevues? shocker
What group is this for?
No way it is less than 20%. I was a summer associate there and can confirm it's close to 50 - 75%.
Some groups even have 100% offer rate, even though it is true that one group has 0%.
Which groups respectively offer 100%/0% return rate?
Can anyone share how this might impact Summer 2020 Associate recruiting? As an international, it is very hard to decide what to recruit for between Consulting and Banking. Which are the Banks most likely to recruit?
Would not be surprised if return offer rates turn out to be lower across the board. One of my friends just finished her internship at PWP. She didn't get a return offer and said that PWP was not making many FT return offers. This is just one anecdote, so take it with a grain of salt. However, I highly doubt that JPM is the only investment bank that is not making many offers to SA's. I wonder how all of this will affect FT recruiting.
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