Haha when it was so funny when Eric said "I didn't realize we recruited from SUNY" because I had an interview for an investment bank where a VP jumped into my call (made me crazy nervous lol) and when I told him what university I go to (prestigious but non-target) he said those exact words haha
Really cool video, from someone whos about to graduate with b.s in economics & finance this series is really interesting (although unfortunately ill never get to a prestigious rank like this) hope to see more of this series.
Interesting point about the fonts and idents. Back in the 1980s I wrote a weekly management report for a worldwide company with hundreds of profit centres. The layout was dictate by the owner who every Thursday morning quick read each single sheet per profit centre (cough - newspaper title) with a commentary. His eyes were so used to spotting anomalies in figures - hence the reason for the exact layout requirements
Very interesting to hear that working in Investment Banking is actually as awful as it's reputation suggests! Why anyone would subject themselves to this lifestyle is beyond me. There are FAR easier ways to make money in life. I would question how 'smart' investment banking hires really are if they are unable to figure this out. Of course perhaps the smart ones don't stick around for very long!
@@davidpaterson7142 Are you confused about something? Because there is perhaps no non-quant career that provides the same kind of career growth and development. It's tough, but it only lasts for 2 years and after that you can do pretty much whatever you want (examples include: corporate development, PE, VC, C-suite tracks, or pretty much anything else). It would be beyond myopic to think that 2 years of grind isn't worth it.
I’m planning to major in finance and I found this to be a really insightful video! Based on your expertise, which do you think is more “stressful”? M&A advisory or IBD? What are the difference in skill sets for them? Thank you so much
Hi Muna, M&A advisory is part of IBD - so generally (and it can change within each firm) in the Investment Banking Department or Division (IBD) there are a number of teams, usually split by industry, who offer financial advice to corporates and governments. Typical ones include healthcare, industrials, Financial Institutions (known as FIG), Technology Media and Telecoms (known as TMT - note some firms have a specific Technology team), utilities, Energy (Oil and gas), leverage finance (funding Leveraged Buy Outs) and others. These teams will work on M&A, valuation and funding advice. In addition, some firms will have an M&A execution team which take the deal on when it's confirmed. Larger firms will also have capital markets teams who structure new securities and these teams, still part of IBD, are called debt capital markets for bond issues, and equity capital markets for equity issues. Some firms will also have credit teams who work on loans to large corporates. It really depends on the institution - I would go to the relevant careers website for more detail. Generally the industry teams and M&A execution will be long hours and detailed modeling. The capital markets teams are a little more buzzy and shorter hours as they interface with the trading floor. - Alastair
in the convo btwn harper & harry when she says the thing about minimum wage it sounds like alastair then calculates the hourly rate based on 12-hour days, but the point of the scene is that harry's working more than that, like almost double. and there's no way he's taking any vacation yet. so i bet she's not far off honestly
Regarding your last comment before signing off for those working in IBD: is there eventually a payoff for “doing your time” in IBD as an analyst? How long are they usually working 12 hour days 6 days a week before their hourly rate goes up?
This is great content! I've got a one of those bloody hirevue algorithms coming up for a sales and trading internship at J.P Morgan. Have you got any advice?
We recommend watching our interview with a past intern from one of the top 4 investment banks who explains her experience with HireVue: ruclips.net/video/xEvdVnUwSvw/видео.html
The answer is not straight forward, as initially the starting salaries are not that different - the base salary for an analyst joining either IB or sales and trading should be in the range of $70k to $80k plus a bonus which could move it up to $150 at the high end. However, most people's bonus will be in the $30k to $50k range. As you move through the organization you will increase your salary and compensation, including bonus which will be in excess of $1m as a managing director. However, at senior levels it massively depends on performance and very high performers can take home multiple millions each year - but they will be the exception rather than the rule and it's not an even distribution. At the top end, IB probably has an edge over sales and trading, however, successful traders will typically move to hedge funds. As performance is the key differentiator, I would focus on doing a job which matches your skillset and therefore the one you are going to be most successful at. Going for a highly paid job you aren't good at is a recipe for disaster, so go for the one you will be best at. - Alastair
@@financialedgetrainingyour last piece of advice is like a life hack. You’re right, most people see the medians and assume they can’t be the ones to hit the high ends. But if you’re good at what you do, you can get there quicker and with less effort.
Hi Leon, While most firms will train you in financial modeling, it gives you a big leg up when you start if you already have some knowledge. In IBD a thorough grounding in Excel really helps, plus the ability to build a three statement model and get it to balance is also important. Models like DCF, LBO, M&A etc. are less important initially as they require a lot of understanding of the assumptions to do an effective job and that comes with experience. - Alastair
Nice video, but if the tail are fatty then the distribution isn't normal. Speaking more generally, financial asset returns aren't normally distributed (a better approximation would be Cauchy distribution). For some assets pricing models we can use normal approximations because the central limit theorem holds. But other things don't work like that. The "volatility smile" you get from black scholes is an artefact of using a Gaussian model with non normal data. Old school value at risk models had all sorts of problems because they were built on an assumption of normality for the estimation of higher order moments than mean and s.d. (central limit theorem doesn't work when estimating skewness, kurtosis etc)
Great comment, you are right about non-normal distribution of financial asset returns (which is why Long Term Capital Management blew up), but traditionally value at risk has used that methodology as you pointed out. - Alastair
Let us know if you're enjoying Industry as much as we are in the comments below! Don't forget to like the video if you found it interesting and subscribe for more expert reviews. Thanks for watching!
Hey interesting video! I would disagree with you to an extent when you claim the connections don't matter these days around the 3:50 mark - connections still play a part at most firms on Wall Street. The extent of which you may be exposed to it will depend upon the department you're working in and even more so at hedge funds versus larger institutions such as JPM where you were but it's an important distinction to make and highlight, especially for students and recent grads reading through the comments - my experience as a consultant on both the trade side and from a quant perspective.
Glad you found the content interesting! We obviously have different experiences. Perhaps connections will get you in the door, but investment banking and finance generally is extremely competitive and if you aren't up to the job it doesn't matter who you know, you won't last. We used to hear in training programs that people were 'client hires' or the CEO's child, but we really don't see much of that now - in fact most large firms have separated their client training with their normal recruitment training. Networking is important, but it won't get you the job unless you are good. There is also, and rightly so, a big push to increase the diversity of recruitment. - Alastair
true, spoiler below but.... literally one of the employees dies from overworking in the first few episodes. They make all this money but they hardly seemed happy...
Hey - it always seems to look that way. However, longer term the IBD skills are much more transferable to private equity or entrepreneurship than sales and trading.
Haha when it was so funny when Eric said "I didn't realize we recruited from SUNY" because I had an interview for an investment bank where a VP jumped into my call (made me crazy nervous lol) and when I told him what university I go to (prestigious but non-target) he said those exact words haha
This is the 3rd review I’m watching of this show
I think I’m obsessed... lol
If you see this, my podcast is about to start reviewing season 3! @wewaswatching RUclips.com/@wewaswatching
This is sick. Do more !!! I really love this.
Glad you enjoyed, subscribe to stay tuned for more reviews!
Really cool video, from someone whos about to graduate with b.s in economics & finance this series is really interesting (although unfortunately ill never get to a prestigious rank like this) hope to see more of this series.
Interesting point about the fonts and idents. Back in the 1980s I wrote a weekly management report for a worldwide company with hundreds of profit centres. The layout was dictate by the owner who every Thursday morning quick read each single sheet per profit centre (cough - newspaper title) with a commentary. His eyes were so used to spotting anomalies in figures - hence the reason for the exact layout requirements
Y’all should do season 2
Very interesting to hear that working in Investment Banking is actually as awful as it's reputation suggests! Why anyone would subject themselves to this lifestyle is beyond me. There are FAR easier ways to make money in life. I would question how 'smart' investment banking hires really are if they are unable to figure this out. Of course perhaps the smart ones don't stick around for very long!
Wow just finished watching the final few minutes and the mention of £50k salaries..lol!! I would be embarrassed to say I work as an investment banker!
@@davidpaterson7142 Are you confused about something? Because there is perhaps no non-quant career that provides the same kind of career growth and development. It's tough, but it only lasts for 2 years and after that you can do pretty much whatever you want (examples include: corporate development, PE, VC, C-suite tracks, or pretty much anything else). It would be beyond myopic to think that 2 years of grind isn't worth it.
I’m planning to major in finance and I found this to be a really insightful video! Based on your expertise, which do you think is more “stressful”? M&A advisory or IBD? What are the difference in skill sets for them? Thank you so much
Hi Muna,
M&A advisory is part of IBD - so generally (and it can change within each firm) in the Investment Banking Department or Division (IBD) there are a number of teams, usually split by industry, who offer financial advice to corporates and governments. Typical ones include healthcare, industrials, Financial Institutions (known as FIG), Technology Media and Telecoms (known as TMT - note some firms have a specific Technology team), utilities, Energy (Oil and gas), leverage finance (funding Leveraged Buy Outs) and others. These teams will work on M&A, valuation and funding advice. In addition, some firms will have an M&A execution team which take the deal on when it's confirmed. Larger firms will also have capital markets teams who structure new securities and these teams, still part of IBD, are called debt capital markets for bond issues, and equity capital markets for equity issues. Some firms will also have credit teams who work on loans to large corporates. It really depends on the institution - I would go to the relevant careers website for more detail.
Generally the industry teams and M&A execution will be long hours and detailed modeling. The capital markets teams are a little more buzzy and shorter hours as they interface with the trading floor.
- Alastair
Isn't it true that the smartest people in the Bank are the quants and the quantitative engineers??
Yes
No. There are different types of intelligence and the quants may be very low when you consider political, strategic, and social/motivational IQ
@@andyjay5903 that doesn't exist. there is only one type of IQ....
It doesn't make sense that Hari who was doing comps and working corporate finance hours was sitting on trading floor.
He’s not on the trading floor
I’m impressed at the quick mental maths
I’ve worked in both sell-side and buy-side firms, Middle Office tech. Really good insights into the workings of the Front Office. Many thanks!
Thank you!
Amazing video. First review I watch from this channel and can’t wait to see more of this 💯
Awesome, thank you!
in the convo btwn harper & harry when she says the thing about minimum wage it sounds like alastair then calculates the hourly rate based on 12-hour days, but the point of the scene is that harry's working more than that, like almost double. and there's no way he's taking any vacation yet. so i bet she's not far off honestly
You are so awesome for this. I’m loving the show but didn’t understand the jargon.
This was a very fascinating video. Thank you!
Regarding your last comment before signing off for those working in IBD: is there eventually a payoff for “doing your time” in IBD as an analyst?
How long are they usually working 12 hour days 6 days a week before their hourly rate goes up?
This is great content! I've got a one of those bloody hirevue algorithms coming up for a sales and trading internship at J.P Morgan. Have you got any advice?
We recommend watching our interview with a past intern from one of the top 4 investment banks who explains her experience with HireVue: ruclips.net/video/xEvdVnUwSvw/видео.html
Which side will typically make the most? Sales & Trading or Corporate Finance(IBD)?
The answer is not straight forward, as initially the starting salaries are not that different - the base salary for an analyst joining either IB or sales and trading should be in the range of $70k to $80k plus a bonus which could move it up to $150 at the high end. However, most people's bonus will be in the $30k to $50k range. As you move through the organization you will increase your salary and compensation, including bonus which will be in excess of $1m as a managing director. However, at senior levels it massively depends on performance and very high performers can take home multiple millions each year - but they will be the exception rather than the rule and it's not an even distribution. At the top end, IB probably has an edge over sales and trading, however, successful traders will typically move to hedge funds. As performance is the key differentiator, I would focus on doing a job which matches your skillset and therefore the one you are going to be most successful at. Going for a highly paid job you aren't good at is a recipe for disaster, so go for the one you will be best at. - Alastair
@@financialedgetrainingyour last piece of advice is like a life hack. You’re right, most people see the medians and assume they can’t be the ones to hit the high ends. But if you’re good at what you do, you can get there quicker and with less effort.
Just curious, what kind of modeling skill does IBD usually anticipate when hiring an analyst?
Hi Leon,
While most firms will train you in financial modeling, it gives you a big leg up when you start if you already have some knowledge. In IBD a thorough grounding in Excel really helps, plus the ability to build a three statement model and get it to balance is also important. Models like DCF, LBO, M&A etc. are less important initially as they require a lot of understanding of the assumptions to do an effective job and that comes with experience.
- Alastair
Here we go again!
Very informative, thank you Sir
Ha ha. We definitely did think that way in IBD but the flipside was the abuse I got on the trading floor: "what crap are you hawking today?"
Enjoyed this, hope you will be covering the rest of the episodes??¿
Yes we will! Alastair has been busy recording these. Make sure you don't miss them by subscribing! Thank you
Nice video, but if the tail are fatty then the distribution isn't normal. Speaking more generally, financial asset returns aren't normally distributed (a better approximation would be Cauchy distribution). For some assets pricing models we can use normal approximations because the central limit theorem holds. But other things don't work like that. The "volatility smile" you get from black scholes is an artefact of using a Gaussian model with non normal data. Old school value at risk models had all sorts of problems because they were built on an assumption of normality for the estimation of higher order moments than mean and s.d. (central limit theorem doesn't work when estimating skewness, kurtosis etc)
Great comment, you are right about non-normal distribution of financial asset returns (which is why Long Term Capital Management blew up), but traditionally value at risk has used that methodology as you pointed out.
- Alastair
Let us know if you're enjoying Industry as much as we are in the comments below! Don't forget to like the video if you found it interesting and subscribe for more expert reviews. Thanks for watching!
When they sell do they get commission?
13:55 could be rev
23:53 this trade would work out thanks to liz truss I suppose
I would love to hear his opinion about it being relastic that someone like Harper from a non target gets 9 interviews
Did you pre calculate your math?
wondered if a fresh grad could really do what they did in the first months.
He does not have 29 years of experience, he has 4 years in JP and 2 years with 3i.
7am starts, fuck that.
Thanks for the review. Very interesting.
Thank you! Glad you enjoyed, stay tuned for more :)
@@financialedgetraining qlqpp)10😂pqap
Does a person like Harper become a millionaire at some point like quickly or that is just in movies
Hey interesting video! I would disagree with you to an extent when you claim the connections don't matter these days around the 3:50 mark - connections still play a part at most firms on Wall Street. The extent of which you may be exposed to it will depend upon the department you're working in and even more so at hedge funds versus larger institutions such as JPM where you were but it's an important distinction to make and highlight, especially for students and recent grads reading through the comments - my experience as a consultant on both the trade side and from a quant perspective.
Glad you found the content interesting!
We obviously have different experiences. Perhaps connections will get you in the door, but investment banking and finance generally is extremely competitive and if you aren't up to the job it doesn't matter who you know, you won't last. We used to hear in training programs that people were 'client hires' or the CEO's child, but we really don't see much of that now - in fact most large firms have separated their client training with their normal recruitment training. Networking is important, but it won't get you the job unless you are good. There is also, and rightly so, a big push to increase the diversity of recruitment.
- Alastair
Hi
awesome
Who does rishi talk to he swears a lot 😂😂😂
Think he is talking about revenue multiple lol. Seems like it is a ubereats / doordash type company.
This show is so depressive in so many ways, I'd hate to have these jobs or work at such places :D
If you really love it, it's hard to leave your desk. You actively get excited over projects
true, spoiler below but....
literally one of the employees dies from overworking in the first few episodes. They make all this money but they hardly seemed happy...
✌️🇲🇦
Also this is not a BBC show? 😂
It was.
id rather be on the trading floor any day than ibd
Hey - it always seems to look that way. However, longer term the IBD skills are much more transferable to private equity or entrepreneurship than sales and trading.
@@alastairmatchett6320 Yes, but if you make tonne of money does not matter
Stating the obvious
Investment banking is dying.
US lost it's monopoly.
Gg
wow...what a waste of life. Imagine spending so much time and effort for a company and $$$$$?
I guess you do it 20-40...then get out
Let's face it..Annalysts are wrong as much as they are correct. It' a game and B*S*
Hmmm...
Bet they have gone WOKE and D.E.I. as well.
Emotional I.Q. Drive and common sense..
The rest is B*S*.
if its from the bbc it will be full of negative white male characters
😂
Terrible show with terrible writing and some of the worst backing music I've heard in recent years. No idea how this made it to a third season.
subbed bro
Perfect.