I mean, I know its sell side business and the general overview but my question is three fold: 1) Why ISN’T the CFA Program useful in IB? 2) What kind of mathematical competencies does IB entail and how do IBers apply them? 3) What does buy side investment banking entail (if such a thing even exists)?
tj2001 Wrote: ------------------------------------------------------- > I mean, I know its sell side business and the > general overview but my question is three fold: > > 1) Why ISN’T the CFA Program useful in IB? because it doesn’t tell you how to make deals > 2) What kind of mathematical competencies does IB > entail and how do IBers apply them? … > 3) What does buy side investment banking entail > (if such a thing even exists)? see ‘unicorns’
mar350 Wrote: ------------------------------------------------------- > tj2001 Wrote: > -------------------------------------------------- > ----- > > I mean, I know its sell side business and the > > general overview but my question is three fold: > > > > 1) Why ISN’T the CFA Program useful in IB? > > because it doesn’t tell you how to make deals > > > 2) What kind of mathematical competencies does > IB > > entail and how do IBers apply them? > > … > > > 3) What does buy side investment banking entail > > (if such a thing even exists)? > > > see ‘unicorns’ … Could you please clarify point 2 (and 3)?
tj2001 Wrote: ------------------------------------------------------- > mar350 Wrote: > -------------------------------------------------- > ----- > > tj2001 Wrote: > > > -------------------------------------------------- > > > ----- > > > I mean, I know its sell side business and the > > > general overview but my question is three > fold: > > > > > > 1) Why ISN’T the CFA Program useful in IB? > > > > because it doesn’t tell you how to make deals > > > > > 2) What kind of mathematical competencies > does > > IB > > > entail and how do IBers apply them? > > > > … > > > > > 3) What does buy side investment banking > entail > > > (if such a thing even exists)? > > > > > > see ‘unicorns’ > > > … Could you please clarify point 2 (and 3)? sure 2. addition, subtraction, multiplication, division 3. let me know when you find a buy side ib and i’ll elaborate on it
…to elaborate a bit on mar350’s point, not sure subtraction is actually used, just a lot of addition and multiplication, ha. To be fair there are some groups who have a strong technical competency, but they’d be specifically identified as such. I think the term ‘investment banking’ generally implies a coverage or RM role, rather than a product or group with a specific skill set. It’s such a misused term imo.
mar350 Wrote: ------------------------------------------------------- > tj2001 Wrote: > -------------------------------------------------- > ----- > > mar350 Wrote: > > > -------------------------------------------------- > > > ----- > > > tj2001 Wrote: > > > > > > -------------------------------------------------- > > > > > > ----- > > > > I mean, I know its sell side business and > the > > > > general overview but my question is three > > fold: > > > > > > > > 1) Why ISN’T the CFA Program useful in IB? > > > > > > because it doesn’t tell you how to make deals > > > > > > > 2) What kind of mathematical competencies > > does > > > IB > > > > entail and how do IBers apply them? > > > > > > … > > > > > > > 3) What does buy side investment banking > > entail > > > > (if such a thing even exists)? > > > > > > > > > see ‘unicorns’ > > > > > > … Could you please clarify point 2 (and 3)? > > > sure > > 2. addition, subtraction, multiplication, > division > > 3. let me know when you find a buy side ib and > i’ll elaborate on it 2) Thank you that’s what I wanted to know. I had someone tell me that you had to know your quant for first round interviews in IB and that seemed kind of sketchy so I thought I’d ask here. (I’m not interested in going into IB, I was just curious). 3) Thank you again, that’s what I wanted to know (whether BS IB even existed or not).
While there’s no official such thing as buy side and sell side IB, along those general lines, I would consider PE / VC (private equity / Venture Capital) to be “buy side” IB as you’re conducting diligence and performing deals on your own behalf. Whereas, within an actual investment bank you’ll be working solely for clients, often with no capital of your own on the line. CFA isn’t considered useful in IB because they typically are salesman. They slap together pitch books for potential deals 18 hours a day by performing the minimum amount of required research and sticking pretty closely to a template. Any significant analysis and they contact their equity research team. It basically becomes about how well you can sell a transaction followed by how well you can hammer it out without wasting time thinking about it. Although, they are typically hyper efficient when it comes to performing a multiple analysis, 3 statement DCF model and building a presentation. I disagree with L’Poulin. Subtraction is often used, I heard it’s the division that they frown upon.
I think the biggest technical competency in IB is to remember all the the excel and powerpoint keyboard shortcuts :-)!
LPoulin133 Wrote: ------------------------------------------------------- > …to elaborate a bit on mar350’s point, not sure > subtraction is actually used, just a lot of > addition and multiplication, ha. > No, subtraction is a very important skill. It’s where the fees come from.
bchadwick Wrote: ------------------------------------------------------- > LPoulin133 Wrote: > -------------------------------------------------- > ----- > > …to elaborate a bit on mar350’s point, not > sure > > subtraction is actually used, just a lot of > > addition and multiplication, ha. > > > > > No, subtraction is a very important skill. It’s > where the fees come from. HAHAHAHAHA NICE
ummm… when i did an internship at a pretty big bank i worked for a group that looked at acquiring other banks and had to make decks. would this be buyside ?
That sounds more like corporate finance or strategy.
tj2001 Wrote: ------------------------------------------------------- > mar350 Wrote: > -------------------------------------------------- > ----- > > tj2001 Wrote: > > > -------------------------------------------------- > > > ----- > > > mar350 Wrote: > > > > > > -------------------------------------------------- > > > > > > ----- > > > > tj2001 Wrote: > > > > > > > > > > -------------------------------------------------- > > > > > > > > > > ----- > > > > > I mean, I know its sell side business and > > the > > > > > general overview but my question is three > > > fold: > > > > > > > > > > 1) Why ISN’T the CFA Program useful in > IB? > > > > > > > > because it doesn’t tell you how to make > deals > > > > > > > > > 2) What kind of mathematical competencies > > > does > > > > IB > > > > > entail and how do IBers apply them? > > > > > > > > … > > > > > > > > > 3) What does buy side investment banking > > > entail > > > > > (if such a thing even exists)? > > > > > > > > > > > > see ‘unicorns’ > > > > > > > > > … Could you please clarify point 2 (and 3)? > > > > > > sure > > > > 2. addition, subtraction, multiplication, > > division > > > > 3. let me know when you find a buy side ib and > > i’ll elaborate on it > > > 2) Thank you that’s what I wanted to know. I had > someone tell me that you had to know your quant > for first round interviews in IB and that seemed > kind of sketchy so I thought I’d ask here. (I’m > not interested in going into IB, I was just > curious). > > 3) Thank you again, that’s what I wanted to know > (whether BS IB even existed or not). Any confirmation on #2 would be appreciated, thanks. Why would they not need (or do need) potential IB candidates to have a strong quantitative background?
I’ve never heard of an IB recruitment program that wanted more than basic math skills. I mean, they recruit philosophy majors for this sort of job.
tj2001 Wrote: ------------------------------------------------------- > Any confirmation on #2 would be appreciated, thanks. Why would they not need (or do need) potential IB candidates to have a strong quantitative background? http://www.wallstreetoasis.com/ There are jobs in investment banks that require high level mathematics - investment banking is not one of them.
PE would be as close to buy-side IB. Unless you are in HS or in your first 2 years of college you have no chance in IB if you’re asking questions like this.
Thank you everyone! Flux, I don’t want to go into IB, I was just curious.