So, is IB dead?

Prospect in IB-M&A

Considering the current economic status, is it safe to say IB is not a good career to get into for now? Would it be better to go for something like corp. dev. or even tech? Any input is appreciated!

Comments (20)

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  • Incoming Analyst in IB - Gen
Mar 24, 2020

Yes Investment Banking is completely over, didnt you hear that every single IBer is being laid off right now, tens of thousands are being laid off as I write this, looks like we are all doomed and there will be no more capital raising for the next 5 years due to the chinese flu...

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  • Intern in 
Mar 24, 2020

I'm assuming this is a troll but you do realize this isn't 2008? This has nothing to banks themselves. Unless you believe this situation with the virus will continue for another 2 years (which you wouldn't necessarily be alone in believing), then your question is nonsense.

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Mar 25, 2020

Eh 2008 didn't have much to do with IB either.

  • Intern in IB-M&A
Mar 24, 2020

Do you know that the finance industry is cyclical? I really don't know how you can assume that IB is dead without understanding that low IB activity has not been caused by the banks but solely caused by a virus that is fucking every industry in the ass with no deadline for a cure.

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Most Helpful
Mar 24, 2020

I always find it amazing when people ask "Should I do tech or finance ?!?" There are very few people that can truly do both. Trying going on CF or LC and try some problems. You'll realize very quickly that breaking into tech is a lot harder than just binge learning a language over the weekend. It goes the other way too. Most people in tech do not have the social aptitude to survive in finance (unless they break in as a quant). Spending all nighters in isolation in the library doing coding projects and grinding out problem sets does not lend itself well to developing social skills. And this doesn't even include things such as the culture differences between the two different industries (politics, religion, etc.)
tldr It's very rarely tech or finance. You are cut out for one or the other, not both.

Array

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Mar 24, 2020

You can do business at a tech firm, just saying. He might not be talking about coding.

Mar 24, 2020

Maybe in this case but usually on this site coding is compared to IB/S&T since both roles pay ~ 6 figures out of college.(all-in)

Array

  • Intern in IB - Gen
Mar 24, 2020

What a stupid question

  • Prospect in IB-M&A
Mar 24, 2020

People on this site get triggered easily. Forgive me for criticizing the almighty Investment Banking.

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Mar 24, 2020

yes, IB is 100% dead. Please do not pursue a career in it. If you want to make money, go into anything else but IB. There is no money in IB. There aren't even any benefits to being in IB so you shouldn't even apply to any of the job openings. Please take my advice as being 100% genuine.

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Mar 25, 2020

Even though this entire thread is frustratingly funny, and the above is a troll, I think this actually has SOME merit. IB is not the career it used to be, and while still financially rewarding, not quite as much. Shrinking industry with poor work-life dynamics. However, I think it's still a great career for entrepreneurial people to get into

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  • Analyst 3+ in PE - Other
Mar 25, 2020

Sorry to provoke guys above. But yes, IB is a dying career with or without this virus.

It is not cyclical. In fact, it is quite secular, seeing downward secular trends in both headcounts and fees.

The work has little value add and the services just don't justify the amount of fees paid. For M&A, it is paid for the rubber stamp of a bulge bracket, I am pretty sure the quality of work for someone who is 2 years out of college cannot be substantially better (if any) than some managers in big 4 TAS or inhouse M&A team which were mostly former bankers anyway. And I doubt your MD has more contact than a veteran CEO/CFO in the industry.

For capital raising, it is another story. You need the bank's network to reach out to investors.

To op: You may just be trolling but anyway, IB is a declining career and will continue to shrink until it reaches optimal scale but you won't be able to get an objective answer from a bunch of banker wannabe or junior data miners who believe they are doing "god's work".

https://www.crisil.com/content/dam/crisil/our-busi...

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  • Intern in IB-M&A
Mar 25, 2020

Genuine question, if you were in my shoes how would you go about it ? I just want to make sure that I don't end up being average in life with regrets

  • Analyst 3+ in PE - Other
Mar 26, 2020

Do you have any career interest? What is your end goal? Or do you just want a career with fast money?

You have to compare different options. Banking gives you very good short term reward but long term it may not be better than other careers.

Consider the mainstream options that can give you a decent lifestyle (banking/corporate and fp&a/accounting/tech/consulting/law/medicine). Do you have any particular interest?

If you don't have any specific interest, ask yourself what is your discount rate. Do you value near term cashflow much greater than future cashflows? Banking is much more volatile. You may move to HF/PE or become an MD. Or you may also get fired/get sick of this job.

If you leave the high finance industry, it is not easy to get an option with comparable cashflow. If you are lucky, you move to a successful startup and become a billionaire. But if you are just an average performer from an MM, you will have a hard time finding another career. Yes, you can move to corp dev. But if you quit because you hate IB, then you won't enjoy it either. Corp dev is just doing same thing with bankers doing the bitch work for you and you work shorter hours with significantly less pay. It is hard to move out IB and do something totally different (but not impossible). Its just you will bump into more hurdles compared to someone started from a corporate role/mbb

  • Analyst 3+ in PE - Other
Mar 26, 2020

Lol feel free to throw monkey shit to me you insecure banker wannabes

I worked at BB and now at MF

You guys? Throwing MS And not even dare to fight back. Lol just lol...

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Mar 25, 2020

Ppl very sensitive on here. Feel like OP's question struck a nerve. The lady doth protest too much.

It's not just the virus folks. There's been an inflationary asset bubble for a decade that just got popped. Will be some painful deleveraging that will take some time to work out. It's hard to get deals done in that environment. Yes buyers will be licking their chops but sellers won't be willing to sell at today's prices (already several pills adopted in last 2 weeks). Credit markets have seized up a bit and the CLO dismantling is coming. Fed will help make sure that it gets better, but expect at least a hiccup.

Do I think bankers should be worried about their jobs, no not more than anyone else in a cyclical industry. But it is a cyclical industry so bonuses will be shit and job cuts a bit worse than usual. Wouldn't want to be a VP up for promotion this year.

Nobody making a career decision should consider any of this.

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Mar 25, 2020

So Doc, what's your prescription if a college kid is deciding bw M&A and capital markets for a career? It's strange, you usually here that IB/M&A will give a person more "exit opps," but now with the economic slowdown, it seems like there'll be more job stability in capital markets, especially DCM.

  • Analyst 1 in IB-M&A
Mar 25, 2020
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