Morning Coffee: This encapsulates the problem for aspiring young bankers today. Unlikely bank hiring 60 people on Wall Street
So you think you might possibly want to get a job in an investment bank. Good luck with that: many try; few are chosen. Rather than going all out and blowing your money on a top Masters in Finance course, you may therefore want to hedge your bets: do a little bit of finance and a little bit of other courses that might get you a job outside of investment banking should you happen to be one of the 97% who are rejected at the very first stage.
This kind of melange is what today's pragmatic students are opting for. David Yermack, chairman of the finance department at NYU Stern's School of Business, tells Bloomberg they want courses that blend finance, technology and entrepreneurship, “They want data analytics first and foremost, and they’re much less interested in the pricing of derivatives...Corporate finance as we have taught it is less and less relevant," Yermack adds.
Herein lies the problem for the securities professionals of tomorrow: the old courses are becoming less relevant. As the securities industry fragments across banks, fintech firms and digital trading platforms, tomorrow's skills are likely to be different to today's. But while big banks' needs have been reasonably uniform and easily encompassed by generic finance courses, each smaller player is likely to want something different. At FX market maker XTX markets, the average age is 27, but it only employs 67 people in total. So, how do you maximize your chances of getting hired somewhere in finance without studying subjects so diverse that you end up a generalist? It's as much a problem for universities as for those who study there. "In a way, we’re at the same risk of disruption as the banks,” Yermack admits.
Separately, guess who's hiring on Wall Street? Mizuho. The Japanese bank reportedly wants to hire 50-60 people for its U.S. securities unit this year. They will include hires for fixed income and DCM. Mizuho has been "emboldened" after hiring some DCM bankers from RBS in 2015, says Bloomberg. I was in New York on a business trip last month, and people now don’t use the term ex-RBS [any more],” says Yuzo Kanamori, Mizuho's global head of investment banking.
Let Guernsey be a warning on the pursuit of equivalence as means of accessing EU markets from outside the EU: it harmonized its rules around three years ago and is still waiting for sign-off following an evaluation with no fixed deadline. (Financial Times)
Amsterdam wants to lure back-office banking roles, clearing activities, insurance, fintech and other professional services that need to access the EU away from London. It's suited to these lower paying roles as Holland caps bonuses at 20% of salaries. (IFRE)
Deutsche Bank is inviting autistic students to intern in technology, treasury, risk and operations. (Financial News)
Deutsche Bank's capital ratio is just about fine now, but it won't be by 2019. (Bloomberg)
Julius Baer hired 200 wealth managers already this year. (Financial Times)
Global equity trading volumes fell by 47% in APAC in the first half and by 13% in Europe. They grew by 2% in the Americas. (Financial News)
M&A apocalypse. (Bloomberg)
If you do a PhD, make sure it's in economics. (The Week)
In times of uncertainty, firms hoard skilled workers. (Stumbling and Mumbling)
Reasons you were not promoted that are totally unrelated to gender. (McSweeney's)
Living near to a Waitrose supermarket can help to boost the value of your home by nearly £40,000, according to research. (Telegraph)