Hello,
I wanted to get some advice. In all my ib interviews thusfar, I've been told that I am too "trading focused" and that I would not be a good fit for IB. For context, I've been trading for several years and worked at a hedgefund this past summer, rather than getting an internship at an IB.
My question is, how can I spin my trading experience positively and tie it to IB so I don't appear too trading focused?
Thank you in advance.
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anyone?
exact same problem here. I would like to see any advice.
How are you answering the "why IB" question?
Saying that I'm interested in IB because IB is pretty much the only profession that allows you to wholeheartedly analyze companies and their growth opportunities, work with management, and advise them to ultimately improve their businesses and profitability. Additionally, I want to work on deals improve my modeling skills, the training program, and the upward mobility that IB allows
Thoughts on this?
I think most consultants would agree that this is 100% accurate.
Some thoughts: - Because you won't analyze companies as a trader, or a researcher? - You won't be working with management for a long time. - lol @ IB being an advisory-heavy job.... - Seriously, you're touting the training program as a key selling point fro IB?
Like reformed said, you sound like you want a consulting job, not a banking job.
Clearly he is interested, but maybe help him better answer this question? What answer would you be looking for?
I just want to make sure OP is clear on what actually happens in IB, especially in the first couple of years (after which you'll probably be too burnt out to actually do any "working with management"). Way too often (myself included) we get hyped up about IB because we think it's going to be XYZ cool things when it's really not.
That said, I think the biggest problem is explaining why you're going from trading to IB. Surely someone has asked you that in an interview, and the answer to that question is not the same as "why does IB interest you". You've obviously signalled your interest in S&T by doing internships and trading as a hobby. Now your job is to signal that you're interested in IB. Review BIWS/WSP and understand fundamental analysis really well. Speak about a "trigger" that got you interested in whatever area you want to pursue (for example, an M&A deal that got you curious, or a debt financing announcement, or something).
If I were interviewing, I wouldn't want the kid who spews out sunshine and hopes about "advising upper management" and "modeling" - I want the kid who has done his research, understands that the first few years are shit, but can point clearly to ways that he can contribute, even as an inexperienced analyst. Whether that means he has a specialized understanding of a specific industry, previous experience in quantitative analysis, knows interesting ways of doing industry research, or closely follows Dealbook and can speak intelligently on recent happenings.
Don't tell me what my company can do for you ("access to management", "upper mobility"). I already know that my company is the shit! Tell me what YOU can do for ME. Tell me how your skills in trading transfer to IB well (or better than the classmates who started out wanting IB). Tell me that my company's awesome tombstones got you interested. Tell me you can walk the walk as well as talk the talk. Point to some things you did on your own to signal interest.
That being said, what IS your answer to, "Why did you start out in trading and then decide to switch to IB?"
Thanks for the advice. I've read the guides and they pretty much say to rep what I talked about in my first comment (BIWS). I know my technicals and fundamental analysis really well, and I know how IB and trading are different.
But the reason why I want to switch into IB is because I'm sick of following the markets 24/7 and want to try something different. I really enjoyed the material I learned, cases I've analyzed, and projects I did in my CorpFin class and LevFin class in college and even though I'll be working really hard, the subject matter overall interests me more than trading at this point. Also, I could always come back to trading but can't just jump into IB when I'm 30. I'm about to graduate undergrad and feel like if theres ever a time to pursue IB, it would be now.
In terms of the specific area within IB that I want to work in, LevFin is most interesting to me and I am pretty good at analyzing companies' from a lending and credit standpoint and at creating lbo models. I have a deep understanding of growth drivers and because of my interest and background with technology, I'm able to identify the value drivers of the "hard to value" tech startups which will be useful in issuing venture loans. LevFin combines financial market understanding which I am also good at and familiar with BC of trading, so I firmly believe I would be able to add value to the team and contribute as an analyst.
Trading skills are transferrable because of the need to be meticulous and thorough when making trading models, the analysis and due diligence required in fundamental analysis, and the understanding of what drives value in companies which can be related to LevFin because you need to know how to analyze a company's credit worthiness in determining the kind of debt to issue and what, if any, covenants, warrants, or liens to issue.
How would you rate what I just wrote in relation to "why IB, why LevFin, why switching from trading to IB, how is trading transferrable?"
Correction to above before I get shat on again: I'm not necessarily sick of following the markets. I meant to say I'm sick of following stock price data all day, watching the movements of stocks intraday, analyzing the markets on a very short term scale, and staring at charts.
I am interested in long term trends and more lengthy market analysis out to weeks and months for overall trends
So why aren't you looking fundamental research type hedge fund with a longer investment horizon? That would surely be an easier sell and more in line with your interests
because equity research doesnt analyze cap structure, different forms of debt for issuance, and credit worthiness in terms of applying that to working with companies or pe firms' deals to complete an LBO or recap
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