本文发表在 rolia.net 枫下论坛A couple of disclaimers first. I am only a junior banker in IBD, my knowledge in this topic is limited and incomplete. Just write what I know to serve as FYI only. Second, 投行仅指狭义的 Investment Banking Division. not including other divisions in a typical investment bank, like sales and trading, capital markets, etc.
投行招人主要是应届毕业生．本科或者ＭＢＡ。本科一般都是两年的合同as analyst，如果你喜欢投行，干的也很好，会被邀请作第三年，三年之后升associate. 或者两年毕业，合同到期，没有被 invited, 转去 buy-side like PE or hedge/mutual funds, consulting, other divisions within I bank, or MBA. MBA graduates start as associates. The hire ratio of analyst vs. associate is in a range of 3-5 :1. The competition to associate position as MBA is more intense, because your peer candidates are generally more competent in terms of working experience and/or educational background. Also the associate opening is further scarce. Think of the huge demand and supply imbalance.
The other channel is experienced hire, say, people in other divisions, like Research, Capital Markets, or Sales switch to IBD. But this case is really rare, though it's not uncommon to see IBD people switch to capital markets where the work load and hours are better compared with IBD. Bonus would be less of course.
To get an interview, a resume needs to show two things: 1. Great marks. GPA over 3.7 or 3.8 depending on schools. AND 2. relevant industry (summer) experience with reputable names in financial institutions.
Interviews are mostly technical questions, For instance, a sequence questions on Beta in CAPM model. 1. what is beta, how do you calculate it. (beta is a statistical covariance of regression of stock returns on market returns).
2. How many years you would collect data to run regression? Do you use yearly returns, quarterly returns or weekly returns? Why?
3. What if a company is not public listed and you still want to use CAPM, how do you get the beta ( I would look at the comparable companies which are publicly listed so that data are available to run regression)
4. Given the comparables' betas, do you use the average of betas directly? Are you familiar with the concept of levered and unlevered beta? ( No, I would not use the average beta directly. Rather I would unlever the beta to get asset betas and then calculate the average. Then lever the average beta to equity beta using the target company's optimal capital structure. )
5. Then how do you find the optimal debt/equity ratio? ......
6. Which approach is better? To run regression for historical beta or the comparable approach, unlever and lever betas?
behavioral questions are 1 or 2 at most. say, what are your hobbies and what do you do after school/work? Not critical at all.更多精彩文章及讨论，请光临枫下论坛 rolia.net
投行招人主要是应届毕业生．本科或者ＭＢＡ。本科一般都是两年的合同as analyst，如果你喜欢投行，干的也很好，会被邀请作第三年，三年之后升associate. 或者两年毕业，合同到期，没有被 invited, 转去 buy-side like PE or hedge/mutual funds, consulting, other divisions within I bank, or MBA. MBA graduates start as associates. The hire ratio of analyst vs. associate is in a range of 3-5 :1. The competition to associate position as MBA is more intense, because your peer candidates are generally more competent in terms of working experience and/or educational background. Also the associate opening is further scarce. Think of the huge demand and supply imbalance.
The other channel is experienced hire, say, people in other divisions, like Research, Capital Markets, or Sales switch to IBD. But this case is really rare, though it's not uncommon to see IBD people switch to capital markets where the work load and hours are better compared with IBD. Bonus would be less of course.
To get an interview, a resume needs to show two things: 1. Great marks. GPA over 3.7 or 3.8 depending on schools. AND 2. relevant industry (summer) experience with reputable names in financial institutions.
Interviews are mostly technical questions, For instance, a sequence questions on Beta in CAPM model. 1. what is beta, how do you calculate it. (beta is a statistical covariance of regression of stock returns on market returns).
2. How many years you would collect data to run regression? Do you use yearly returns, quarterly returns or weekly returns? Why?
3. What if a company is not public listed and you still want to use CAPM, how do you get the beta ( I would look at the comparable companies which are publicly listed so that data are available to run regression)
4. Given the comparables' betas, do you use the average of betas directly? Are you familiar with the concept of levered and unlevered beta? ( No, I would not use the average beta directly. Rather I would unlever the beta to get asset betas and then calculate the average. Then lever the average beta to equity beta using the target company's optimal capital structure. )
5. Then how do you find the optimal debt/equity ratio? ......
6. Which approach is better? To run regression for historical beta or the comparable approach, unlever and lever betas?
behavioral questions are 1 or 2 at most. say, what are your hobbies and what do you do after school/work? Not critical at all.更多精彩文章及讨论，请光临枫下论坛 rolia.net