Morning Coffee: Meet the three most fortunate juniors in IBD. Credit Suisse revamp’s results
If you're a junior in investment banking, you want to work on deals: big deals. Which better deal to work on, therefore, than Comcast's £22bn ($30.7bn) bid for Britain's Sky. Some of the biggest names in investment banking are advising on the deal, according to Business Insider, and some very fortunate "junior" bankers are working alongside them.
The big name bankers working on Comcast include Blair Effron (who founded the boutique, Centerview), Jennifer Nason (the global chairman of TMT investment banking at J.P. Morgan), John Waldron (the co-head of investment banking at Goldman Sachs), Simon Robey (the former Lazard and Morgan Stanley banker who founded the boutique Robey Warshaw) and Roger Altman (founder of Evercore). Comcast is basically a line-up of the superstars. If you're a junior banker, it's the kind of deal that could make your career.
None of the juniors on the deal are that junior: there are no analysts and associates kicking around the Comcast deal. Even so, you might want to look archly at: Anthony Zammit, an executive director at Morgan Stanley in London (on Sky's team); Jonathan Hall, an ex-Goldman VP who's now at PJT Parnters; and Mathew Mathew, a VP at Deutsche Bank, who was formerly with J.P. Morgan. If Comcast comes off, they may all be MDs by 2020. If it doesn't they will at least have networked with the sorts of people who can seal their careers.
Separately, yesterday Credit Suisse delivered its best quarterly results since CEO Tidjane Thiam launched his restructuring plan for Switzerland’s second-biggest bank in 2016, according to Reuters. Whether that good news will impact employees positively depends on what part of the bank they work in.
As the Swiss lender trying to rebuild its stock-trading business, it is benefiting from large, complex derivatives deals.
Derivatives trading revenue offset stagnation in the equities trading businesses, where total revenue from stock dealing climbed 1.5% from a year earlier compared to the 33% average gain reported by the five biggest U.S. banks, according to Bloomberg.
CEO Tidjane Thiam created a unit last year that brings together Credit Suisse’s private bankers, focused on wealthy individual investors, with its traders, who usually deal with hedge funds and asset managers.
Credit Suisse has been investing in talent “specifically within our equities business, where we saw an opportunity to refresh our franchise in equity derivatives, but also across our franchises, to retain, motivate and grow our teams,” Thiam told Bloomberg.
Credit Suisse admitted it may struggle to reach a goal of at least $6bn of revenue this year at the global markets unit, which includes trading operations for the Americas and Europe, as the division brought in $1.64bn in adjusted revenue during the first three months.
A surge on Wall Street stock-trading desks is being driven by manic investor moves in derivatives, as fund managers scramble to protect their gains from future volatility. (WSJ)
A senior U.S. financial regulator, Comptroller of the Currency Joseph Otting, bought bank stocks while his nomination for the job was still under review. (WSJ)
Some of Wall Street’s top women offered up career advice. (WSJ)
These are the M&A bankers advising parties in the pending $64bn deal for Shire, the maker of ADHD medications like Adderall. (Business Insider)
Bank of America’s new policy denying loans and other services to certain gunmakers came after dozens of employees lost family members or suffered other trauma related to mass shootings in the past few years. (Bloomberg)
Walt Bettinger, the CEO of Charles Schwab, has some advice for Amazon’s Jeff Bezos: Think twice before getting into the investment business. (Bloomberg)
Active money management is alive and well, at least at T. Rowe Price, which attracted $11.3bn in client cash in the first quarter, the biggest inflow in six years and the second-biggest quarterly haul in the company’s history. (Bloomberg)
A prominent hedge fund billionaire has Trump in his sights. (Bloomberg)
Twin Capital COO Kevin Gahwyler is joining cannabis-focused long/short equity manager Navy Capital as president/CFO. (HFM Week)
Curious where KKR’s Henry Kravis, Blackstone’s Jon Gray, Pershing Square Capital Management’s Bill Ackman, Duquesne Capital’s Stanley Druckenmiller and Two Sigma’s Joh Overdeck funnel their money? (Bloomberg)
U.S. regulators accused LendingClub, once the Wall Street darling of online lenders, of misleading consumers. (Bloomberg)
Municipal bond traders and broker-dealers are panicking. (Bloomberg)
Child star Cary Guffey, who played the young boy abducted by aliens in Steven Spielberg's 1977 classic Close Encounters of the Third Kind, now oversees $170m in assets as a financial adviser. (CNBC)
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