GUEST COMMENT: Demand for analysts and associates in investment banking has gone through the roof
2010 is shaping up to be the year of the analyst and associate. From our perspective, we started to notice demand for junior investment bankers coming back in October and November last year; it's been non-stop ever since.
As M&A activity picks up, banks are almost universally looking for the same thing: top ranked analysts and associates at all levels (first years included) who weren't cut during the downturn.
At this stage, few organisations are prepared to pay above market rates in order to attract the people they want. Nor are they willing to compromise on hiring people from lower-ranked institutions. As a result, it's a candidate-driven market, and there's a lack of good people willing to move.
If this continues, banks may yet relax their hiring criteria. It's possible, for example, that if you were among the many analysts and associates who were let go from top firms, but you have an impeccable academic pedigree and a good track record, you will soon be able to get back into the market again.
Equally, it seems inevitable that at some stage banks will spread their wings and start hiring recently qualified ACAs into corporate finance positions again. Investment banking is a cyclical market, and - for the moment at least - things are definitely looking up.
