Market Risk to Investment Banking?

FINmentality's picture
Rank: Monkey | banana points 45

I am sophomore at a non-target and received an offer from a mid-tier investment bank (BNP/SG/CS) in the Market Risk team for this summer. While I am excited about the offer, I am pretty set on doing Investment Banking in the long run. Most of my prior experiences are in AM/Tech Startups (finance role).

Does such a role help in junior summer IB recruiting or do I continue to reach out to boutique IBs (which haven't been very fruitful)?

Comments (15)

Dec 31, 1969

i've gone from credit risk to ib so i dont see why not

Dec 31, 1969

Did it take you like a year or two?

Is that at a BB or MM bank?

Dec 31, 1969
is-t:

How is risk management considered in terms of exit opportunities? Prestige? Would you advise going to MBA and then trying for an IBD role?

When the markets are down there are lot of opportunities for risk management. It is generally difficult to transition from Middle Office to IB because you get branded as Middle Office. However with lots of networking and luck you can do that. Even I have found candidates have difficulty to transition to IBD after MBA when they have risk management exp

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Dec 31, 1969

You're better off doing an MBA at an elite school. You can then str8 break into IBD/ any other field. MSF is more geared to trading imo

Still I Rise

Dec 31, 1969

Interested.

Dec 31, 1969

Why not try to transition to a Risk role at a BB first? Just a thought.

Dec 31, 1969
JamesHetfield:

Why not try to transition to a Risk role at a BB first? Just a thought.

Because that will pigeon-hole you as a risk person much more and likely make the move to a front-office position more difficult within the BB as compared to a hopefully less rigid organization.

No idea what this risk role is and how it sits within the bank in question but the path from credit analyst to LevFin/dcm/debt-focused fund has been discussed on this site - hopefully you can take a similar approach from your position. Try to be as close as possible to the transaction level instead of being stuck working on portfolio or worse yet some sort of policy/procedures work.

Dec 31, 1969

Timing is not right now. New analysts are coming in soon so no need for most bank to hire unless they want to trade up. But if they are looking to trade up, they are most likely not looking for someone with your crediential.

Market has been fairly weak in the 1st half of the year so banks could start layoff again soon. After that, should there be a strong rebound in business, there will be hiring need. This is what happened in 2nd half of 2009 thru 1st half of 2010.

In the mean time, spend your time networking with ppl in the banking team now, whether in your own bank or other banks. Best chance is to move within your own bank though. Moving to corporate banking is probably a bit easier although not all banks have this role available.

So be prepared that you may need to stay in your current position for at least another 6 months or so before you can have any legitimate shot. Also, do not be surprised if they want to demote you by one year. This may not necessarily happen, but just be prepared.

Dec 31, 1969

Definitely go with MS market risk and then try to internally transfer for FT. You can always recruit FT at a boutique if that fails. Don't be so haste in being banking or bust.

Dec 31, 1969
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