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Investment Banking Discussion Thread - Page 26

post #376 of 622
Quote:
Originally Posted by Khayembii Communique View Post

CFA is for investment management, for the most part. If you want a job related to managing investments, this is what you want to get. It won't be very useful, if at all, in IB or even on buy side in certain roles/fields.
How'd it go? I'm studying to take it in June, the material seems easy but I'm guessing the volume is what makes it difficult. What'd you use to study aside from the CFA Institute books?

You dont say...?

Ha yea sorry, you tossed that one out there.

I took it last year and didnt study for it...bat 5, so it is something you need to study for to pass. I would have done much better with this if I took it right after I graduated in May 2011.

The material isnt difficult but there is soooo much of it and it is easy to miss a lot of small topics. Those small topics add up and you wind up with huge holes of material you missed.

That being said I am sitting for it again this june...only difference is I will actually study.

Dont just get the online notes...I really believe this was the biggest reason I never attempted to study.
post #377 of 622
Quote:
Originally Posted by concealed View Post

There were a bunch of droolers sitting for the exam that had no shot of passing, made me feel good.

I've never heard of this word. Did you mean losers?
post #378 of 622
Quote:
Dont just get the online notes...I really believe this was the biggest reason I never attempted to study.

This.

I ordered just the e-book then a week later the hard copies after I realized how much the e-books suck.
post #379 of 622
Quote:
Originally Posted by Quadcammer View Post

won't do much if anything for you in IB
Quote:
Originally Posted by Khayembii Communique View Post

It won't be very useful, if at all, in IB

Wrong
Wrong

It can get you hired, that's what it can do for you in IB. When your resume says "I know nothing of finance or accounting", adding CFA (at least level 2) mitigates the problem dramatically - I would say pretty much entirely.

So yes, it would do something for you - people may actually look at your resume
post #380 of 622
Quote:
Originally Posted by gdl203 View Post

Wrong
Wrong
It can get you hired, that's what it can do for you in IB. When your resume says "I know nothing of finance or accounting", adding CFA (at least level 2) mitigates the problem dramatically - I would say pretty much entirely.
So yes, it would do something for you - people may actually look at your resume

i think that is true for getting in (although could be debatable if a CFA alone is sufficient to show financial proficiency in this market), but the CFA is completely useless once you are in and will bring you zero benefit. My old bank actually actively discouraged analysts from pursuing the CFA. i did level 1 just after i finished my undergrad and never took level 2 as it appear pretty clear once i started working that there was absolutely no way i could add all these hours of studying (the materials of the CFA isn't hard, the difficulty is remembering it all cause there is a LOT) to my existing workload. and in the words of my old boss (who was a CFA chartholder): "people do the CFA to get the job you already have, so why bother".
post #381 of 622
pretty much that^

my bosses suggested that the CFA would not be beneficial to me unless I wanted to do IM
post #382 of 622
Quote:
Originally Posted by gdl203 View Post


Wrong
Wrong
It can get you hired, that's what it can do for you in IB. When your resume says "I know nothing of finance or accounting", adding CFA (at least level 2) mitigates the problem dramatically - I would say pretty much entirely.
So yes, it would do something for you - people may actually look at your resume

 

That's actually not correct at all. CFA does next to nothing for your application. Unless you literally have nothing finance or accounting related, which in that case a CFA isn't going to get you the job anyway.

 

http://www.mergersandinquisitions.com/cfa-investment-banking/

post #383 of 622
^ Does your job entail recruiting people for investment banking positions? Do you review resume drops and conduct dozens of interviews a year? Are you recruiting captain at your firm for your alma mater?

I'm telling you with absolute certainty that a CFA on a resume for a career switcher with no finance or accounting background is a dramatic improvement, and will likely get your resume considered for an interview invite that you otherwise would not receive.

If one doesn't have the academic background to support a career change into banking, then an academic mitigator is necessary. CFA does the job, just like a part-time master may also work.
post #384 of 622
Quote:
Originally Posted by db78 View Post

 

That's actually not correct at all. CFA does next to nothing for your application. Unless you literally have nothing finance or accounting related, which in that case a CFA isn't going to get you the job anyway.

 

http://www.mergersandinquisitions.com/cfa-investment-banking/


I disagree. That article is particularly relevant for breaking into bulge bracket, however, coming from a non-target school or without a business background the CFA is still considered a sign of commitment. A lot of major investment banks are also increasing the size of their wealth management divisions (which yields lots of fees) and decreasing their M&A.

 

There is no harm in getting it other then the time. It will also provide you with an incredibly in depth understanding of finance that will aid you in understanding what many of the people you work with do. Not to mention a small salary boost when you inevitably leave banking for a financial services company (such as Thomson Reuters or Bloomberg that are 9-5) and have a family.

post #385 of 622
Quote:
Originally Posted by MSchapiro View Post

...Not to mention a small salary boost when you inevitably leave banking a ratings agency for a financial services company (such as Thomson Reuters or Bloomberg that are 9-5) and have a family.

Fixed that for you. Really hope bankers aren't going to Reuters or Bberg.
post #386 of 622

Ratings agency (to my knowledge) a very similar to TR and Bloomberg in terms of required work. I know more then a few bankers who move to TR afterwards. And why not? Often times these were the same people using their terminals on the ibanking side. They serve as valuable assets in helping with product function and design as well as internal consultants with the many mergers Bloomberg and TR preform.

 

But in general I think you are right, it isn't a particularly normal track.

post #387 of 622
Quote:
Originally Posted by MSchapiro View Post

Ratings agency (to my knowledge) a very similar to TR and Bloomberg in terms of required work. I know more then a few bankers who move to TR afterwards. And why not? Often times these were the same people using their terminals on the ibanking side. They serve as valuable assets in helping with product function and design as well as internal consultants with the many mergers Bloomberg and TR preform.

 

But in general I think you are right, it isn't a particularly normal track.

 

what the fuck are you talking about?  

post #388 of 622
Quote:
Originally Posted by concealed View Post

 

what the fuck are you talking about?  


That a CFA gives you a salary boost at many financial service companies...

post #389 of 622
Quote:
Originally Posted by gdl203 View Post

^ Does your job entail recruiting people for investment banking positions? Do you review resume drops and conduct dozens of interviews a year? Are you recruiting captain at your firm for your alma mater?
I'm telling you with absolute certainty that a CFA on a resume for a career switcher with no finance or accounting background is a dramatic improvement, and will likely get your resume considered for an interview invite that you otherwise would not receive.
If one doesn't have the academic background to support a career change into banking, then an academic mitigator is necessary. CFA does the job, just like a part-time master may also work.

 

If you're asking do I work in HR in an investment bank, no I don't. I work in the front office and yes I do recruit / interview people for IB positions. I agree if you have literally nothing else related to finance or accounting, CFA says "hey I'm actually interested in finance." But realistically how long does it take for you to study and pass CFA level 1? Let alone level 2? The amount of time you spent studying for the CFA, you could be learning valuations, lbos, accretion/dilution, all that other crap you'll get asked in a 1st year analyst position or even SA. You could be reading Rosenbaum's book, going through technical guides from WSO/BWIS, or learning how to model. Not to mention, you could be networking with actual bankers that would increase the likelihood of you getting an interview far more than a CFA designation on your resume. Maybe it works differently at your bank, but in my firm (as well as others I've spoken with), any resume that gets submitted through OCR or the company's website is filtered by HR first, along with hundreds of other resumes. Networking is the most effective way to get an interview and/or get an offer. It's not that the CFA literally has no benefits, it's the fact that there are better ways for you to try to break into IB.

 

I've screened plenty of resumes and have been the interviewer for IB positions. Inevitably, someone with a CFA and no related background always ends up getting passed up for someone that has relevant experience, even if the latter came from a non-target with mediocre GPA.

 

Quote:
Originally Posted by MSchapiro View Post


I disagree. That article is particularly relevant for breaking into bulge bracket, however, coming from a non-target school or without a business background the CFA is still considered a sign of commitment. A lot of major investment banks are also increasing the size of their wealth management divisions (which yields lots of fees) and decreasing their M&A.

 

There is no harm in getting it other then the time. It will also provide you with an incredibly in depth understanding of finance that will aid you in understanding what many of the people you work with do. Not to mention a small salary boost when you inevitably leave banking for a financial services company (such as Thomson Reuters or Bloomberg that are 9-5) and have a family.

 

Huh? PWM may be housed under the same "corporate umbrella" as IB in some banks, but they're vastly different in the type of work you do and quite frankly the qualifications to get in - not to say PWM can't be a lucrative and rewarding career. A freshmen with no business related background could get an internship for PWM, but no way in hell would you even get your resume past HR for IB. Also, TR, Bloomberg, FactSet, CapIQ, etc are not sought after exit opps for IB analysts, unless you're talking about within their Corporate Development or Corporate Strategy groups. Plus, salary boost with a CFA once you leave banking has nothing to do with breaking into banking...


Edited by db78 - 12/19/12 at 11:57am
post #390 of 622

 

Huh? PWM may be housed under the same "corporate umbrella" as IB in some banks, but they're vastly different in the type of work you do and quite frankly the qualifications to get in - not to say PWM can't be a lucrative and rewarding career. A freshmen with no business related background could get an internship for PWM, but no way in hell would you even get your resume past HR for IB. Also, TR, Bloomberg, FactSet, CapIQ, etc are not sought after exit opps for IB analysts, unless you're talking about within their Corporate Development or Corporate Strategy groups. Plus, salary boost with a CFA once you leave banking has nothing to do with breaking into banking...

 

You are quite right. I was more addressing your point of the value of a CFA. It also has value on the exiting side. Coming from a school that is a target for no bulge bracket banks I've seen more then a few transition through PWM to IB or use PWM as a backup when they couldn't get IB. They then used this time to network their way on to the IB side.

 

As for breaking into banking I think one also has to take some steps in case it doesn't work out as a career. Plans can quickly change when someone has a family or realizes the lifestyle isn't for them.. That is where the CFA can really shine. And yes I was referring to corporate strategy/ development. 

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