Why Investment Bankers Want to Work at a Big U.S. Firm
The safest, most lucrative jobs in investment banking and private equity are in the U.S., that much is obvious. The domestic banking system has recovered and the likelihood of mass layoffs is over. But not all firms and roles within them offer the same level of job security and potential for lofty paychecks.
Compared to Asia and Europe, the U.S. investment banking market is booming, according to new statistics from Dealogic, neatly compiled by my colleague Sarah Butcher. Once-optimistic markets like Australasia and China saw their IBD revenues plummet by 22% and 14%, respectively, during the first half of the year. The situation is not near as dire in EMEA, but the region still can’t sustain growth, nor likely will it anytime soon.
The U.S., meanwhile, is flexing its muscle, generating the lion’s share of global revenues. Within the U.S. market, leveraged loans – and particularly syndicated lending teams – are having a big 2013, with revenues increasing 24% year-over-year. M&A bankers aren’t having near as much fun. M&A accounted for the lowest share of U.S. IBD revenues on record during the last six months, according to Dealogic.
If you had the choice, you’d probably want to find work at one of the bigger U.S. investment banks, particularly J.P. Morgan. The top 10 banks accounted for 57% of IBD revenues in the first half, up from 49% during the same period of 2012. J.P. Morgan itself accounted for 8.9% of overall IBD revenues globally, up from 7.6% in the first half of 2012, giving it the top spot in the league tables.
It’s the same story in private equity. Twice as much money was spent on buyouts in the U.S. in the first half of 2013 compared with a year ago. Five of the 10 largest global deals involved a U.S. target.
It’s tough not to argue that financial firms are at the forefront of LGBT equality. Still, much work needs to be done at the lower rungs of Wall Street to truly level the playing field.
The FT’s top five experienced Masters in Finance courses include two U.S. programs. The University of Illinois and Florida International University each offer a prestigious one-year Masters in Finance program. Who knew?
Former hedge-fund manager Raj Rajaratnam has been denied a get-out-of-jail-early card. The Galleon Group founder’s 11-year prison sentence for insider trading was upheld on Monday.
With overseas investment banking jobs drying up, expat bankers like Peter Fort, a 10-year Morgan Stanley vet, are leaving better-known global firms behind for growing opportunities at U.A.E. banks.
Morgan Stanley Chairman and CEO James Gorman is not surprised with the market’s negative reaction to the Fed’s stimulus tapering talk, but still believes investors are overreacting. "I suspect that over the next few days we see a little more stability in equities," he said.
U.S.-based Knight Capital continues to grow in Europe following its announced merger with Getco. The firm made three hires to its European equities team in the last few weeks.
Average compensation for chief executives at top banks dropped 10% last year to $11.5 million. Hopefully they’ll live.
Buzz Around the Office
A group of reporters looking to break a big story boarded a flight from Russia to Cuba in hopes of finding NSA whistleblower Edward Snowden, who had reportedly booked a seat on the same plane. Well, he didn’t, but all the journalists on the flight did. Good luck explaining that expense.
List of the Day: Snap Judgments
If you just started a job, beware of making these early mistakes that will likely make your boss question their hiring decision.
- You’re already making excuses.
- You lack confidence.
- You talk too much, but never get to the point.