Wall Street Crash Session

8/14/2019 Wall Street Crash Session

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Sudeep Paul

Jyoti Joshi

October 24,

2007


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AgendaWorking on Wall Street

Areas of an Investment Bank

The Buy Side

The Wall Street Hiring Process

Skills/Tips


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Our BackgroundSudeep PaulDouble Degree in Business (Finance) and

Economics

Senior Advisor of UFA

Email: [email protected]

Cell: 516-582-7759

Jyoti JoshiMajor in Business (Finance)

President of UFA

Email:[email protected]

Cell: 908-868-4504
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Why do people want to work on WallStreet?

Intelligence is Highly Valued


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Positives of working on Wall

StreetMoneyPrestigePowerChallenging work environmentWork with smart peopleChance to meet the top people at interesting

companies

Large amount of learningYou are paid based on your personal performanceRapid advancement opportunitiesGreat business credential to have for future jobs

and graduate educational opportunities


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Negatives of working on Wall

StreetLong Hours = Falling Asleep all the Time


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Negatives of working on Wall

StreetLong hoursSometimes tedious work lower levels

Up or out environmentHigh PressureWork/Life Balance limited social/family

life

Belittlement at the lower levelsOpportunities tied to overall economy

(strong swings in hiring based on macro-environment)

Can be cut-throat depending on thesituation


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Words You May Have Heard

BeforeSell SideInvestment Banking

Commercial BankingCapital MarketsSales & TradingTraders

AnalystsMD (Managing

Director)

Buy SideAsset Management

Mutual/Hedge/PensionFundsStock BrokerEquity

Debt/Fixed IncomeInstitutionalRetail


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Who are the Big

Players?The Old Guard

Merrill LynchGoldman Sachs

Morgan Stanley

Lehman Brothers

JP Morgan

Citi

UBS

The New

PlayersBarclays Capital

Bear Stearns

Deutsche Bank

CSFB (CreditSuisse)

Wachovia

HSBC


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The Structure of an I-Bank

Capital MarketsSales/Trading/Research

Structure & Origination

Investment BankingMergers & Acquisitions

Corporate Finance

Investment Bank- 3 main functionsCM: Help customers raise money in marketsIB: Advise companies on mergers and acquisitionsAM: Management of securities and assets (buy side)

An investment bank vs. investment banking

Asset ManagementInstitutional Investors

Private Investors (Retail)


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Capital

MarketsCapital Markets

Equities (Stocks)

Sales Trading

Research Credit Mortgages

RatesBonds

Foreign Exchange (FX)

Real Estate

Derivatives

Fixed Income (Bonds)


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Capital MarketsSales and TradingBoth equity and debt- interact with both

marketsTrade and sell securities, derivative productsEquity Division deals only with stock marketsFixed Income Division deals only with the debt,

currency, and commodity markets

ResearchEquity ResearchFixed Income Research


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Capital MarketsStructuring & Origination

Supports Sales & Trading in Capital Markets

(for both debt and equity)Create new products to fit needs of corporate

or individual clients

Create products to customize risk exposure

Can create products that have both equity anddebt components (called hybrid products)

Structure IPOs and secondary offers (forbanking)


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Trading Floor


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Investment

BankingInvestment Banking

M&A Corporate Finance

Initial Public Offering (IPO)

Secondary offering

Raise Money

Increase Return

Mergers

Acquisitions

Corporate Decisions


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Investment BankingUnlike a commercial bank, has no pile of cashA companycomes to an I-bank for advice, for capital

(cash), and other special financing needs

Mergers and AcquisitionsHelp companies merge/acquire others

Corporate FinanceGoal: enhance corporate return while decreasing the

firms riskDivided into short-term and long-term decisions

IPOs/Secondary offeringsGoal: to help companies raise moneyIPO: Initial Public OfferingSecondary offering in the after market debt or

e uit


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Asset ManagementA part of the buy side, but many firms have

both sell and buy side components

Institutional InvestorsMutual, Hedge, or Pension FundsInsurance companiesCorporations

Private clientsIndividuals who have a lot of money (high net

worth)Often just want to manage investments vs. grow


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Difference between banks and

brokerageCommercial BankingTypical bank - go to the

bank, make a depositPlayersJP Morgan Chase

Bank of America

Citi

Make money byborrowing and lending

Retail Brokerageaka: a form of individual

asset management Invest money for

individuals

Players

Merrill LynchMorgan Stanley

Goldman Sachs

Make money on tradingcommissions


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The Buy

SideThey buysecurities offered by the sell-sideAll over the US (buy side) vs. just in NYC (sell side)Many firms have both buy and sell side components- the

buy side of an investment bank is the Asset Managementpart

Buy Side ComponentsPension fundsMutual FundsHedge FundsInstitutional clientsInsurance companiesIndividual clients

Buy Side FirmsFidelity InvestmentsFederatedMellon FinancialVanguardAIG Global

Investment

Washington Mutual


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What is Life Like?Common Things

Long Hours

Lots of StressHigh pay

Investment BankingReally long hours (80-

90)

Slower paced

Lots and lots ofmone

Capital Markets

Shorter hours (60-70)

Very fast pacedHigh pressure/stress

Buy SideShort hours (40-50)

Slower paced

Low stress


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Where Do You Fit in an

I-BankAnalyst (no MBA): 1-3 Years Out of

College

$80k-120k in salary + bonus

Associates : 4-7 Years Out or PostMBA

$120k-300k in salary + bonus

Vice President: 7 10 Years Out$300k-1M in salary + bonus

Managing Director: 10 + Years Out500k-10M in salar + bonus

Analyst

Associate

VP

MD


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The Hiring ProcessFull-Time positionsSeniors

Transferring from adifferent job

Graduates

Internships

Freshman

Sophomores

Juniors


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The Hiring ProcessPlaces to applyInvestment Banks

Hedge FundsPrivate Equity Firms

Fortune 1000 companies (Finance department)

Local companies where you will get good

experience

Interview

First round- usually behavioral

Second round- more technical


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How to Get InQualitative SkillsBe intelligent/intelligent looking

Make yourself marketable

Know how to interviewGood interpersonal skills

Strong work ethic

What you should haveStrong quantitative competency

Good grades

Strong leadership inextracurriculars

Image is everythingThe way you carry yourself

The things you say

The people you associatewith

Appear


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How to Get InWhat you should doMake yourself marketable

Know how to interview

Network, network, network

Be aggressive

Use AlumniUse any contacts you may have

Use job search sites to locate opportunities

In the end, you dont need a degree in finance, just an

interest


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Skills/helpful tipsLearn ExcelRead the Vault guideInvestopedia.com, wikipedia.comRead the Wall Street JournalAsk people for help;

upperclassmen, career center,people in the industry

Have a solid resumeDo LOTS of practice interviewsBooks: Liars Poker, Monkey

Business

Movies: Wall Street


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Future EventsInterview Training - JanuaryWall Street interview are very differentTips on how to do well in interviewsShow you what to do/what not to do

Well go through some mock questions/shortinterviews (best way to learn)

Fidelity PresentationsTechnical Analysis- Oct. 30, 4:30pm, Simon Investing Basics- Nov. 5, 4:30pm, Simon

Finance Jobs- Wednesday Night Insight- Nov.7th

In conjunction with Tepper/Career CenterFocus on non-Wall Street finance jobs


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Words You Now UnderstandSell SideInvestment Banking

Commercial BankingCapital MarketsSales & TradingTraders

AnalystsMD (Managing

Director)

Buy SideAsset Management

Mutual/Hedge/PensionFundsStock BrokerEquity

Debt/Fixed IncomeInstitutionalRetail

Documents

Wall Street Crash Session