Little Investment Bankers Of Rutgers September 14, 2011.

Little Investment Bankers Of RutgersSeptember 14, 2011

LIBOR’s MissionWe host a wide range of educational and

networking activities throughout the academic year, giving students an optimal chance at

obtaining and succeeding at interviews.

Areas of Involvement•Bender Trust Equity Research Project•Rutgers Student Managed Fund•LIBOR Financial Newsletter

Agenda• Dress Code• Expectations of Guest Speaker Interactions• Attendance Policy• Resume Books• New Membership System• Freshman/Sophomore Mentorship Program

Dress Code• For all guest speakers meetings, Business Casual attire

is mandatory.• Dress neatly pressed, crisp, appropriate attire• Basics:

– Dark or Khaki slacks (No Jeans) with crease – Pressed buttoned shirt or blouse– Leather belt and shoes– Ties and Jackets are not necessary– Conservative colored shirts are best– Socks should be the same color as pants, NOT SHOES!– We will notify you in advance if a speaker will be coming -

also will be posted on the Events Calendar on our website

Guest Speaker Expectations• Cellphones MUST be on silent/off during meetings• When asking a question

– “Hello, my name is X, and I am a “Year” and my question is…”

– Do not ask inappropriate questions (ie: salary, etc)• Stay attentive during the meetings

– No texting– Keep strong eye contact– No side conversations

• Come prepared with notepad and pen– Try to invest in a leather padfolio

Guest Speaker Expectations

• Post-Interaction– Be professional and courteous– Introduce yourself and shake hands– Have a reason to speak with them, rather than

just going to say “hi”– If you ask for contact information, make sure to

email them a thank you note within the next 2 days after meeting them

Attendance Policy

• Normal meetings will be held on Wednesday evenings, with occasional Monday meetings as well

• Attendance will be taken at every meeting• Punctuality is a must. Lateness is NOT

acceptable (Especially when we have guest speakers)

• Do not leave early during guest speaker presentations

Resume Books• We will be collecting resume books for specific

opportunities as alumni reach out to us• We will also be posting “General” resume books on

the website for recruiters– One book for regular members– Another book specifically for members of RSMF

• 3 unexcused absences will result in the removal of your resume from the book– Failure to participate in the Bender Trust Equity

Research Project or RSMF will also warrant removal

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New Membership System• General Members: All individuals who are interested in

attending meetings are eligible• LIBOR Analysts: Individuals who have been active

members of LIBOR for at least 1 year (presented Bender Trust)

• LIBOR Associates: Those individuals who have been active members of LIBOR for at least 2 years (presented Bender Trust) – Requirement: Must be willing to mentor at least 1

General Member or Analyst throughout academic year• Receiving Analyst and Associate designation is NOT

automatic

• Who is eligible? Freshman and Sophomore members• How to apply? Please fill out the online application

on our website (www.rulibor.com). Go to Overview -> Join LIBOR -> Mentor Program Applications.

• Process: Candidates will be selected and receive a 5-10 minute interview with an Associate or Executive Board member.– Each Mentor will take on 1-2 mentees

• Application Deadline: Thursday, September 22 at 11:30 PM

Freshman/Sophomore Mentorship Program

Questions?

Investment Banking

Buy-Side Vs. Sell-Side

Sell-Side • Those who SELL services or products to other institutions

• Trading services• Research• Securities origination

• Includes Investment Banks

Buy-Side• Those who BUY services & products for proprietary use• Hedge Funds• Private Equity (PE) Shops• Asset Managers – Pension / Mutual funds

What is Investment Banking?

2 main functions that serve corporations and governments

• Raising capital• Equity (Issue Stocks)• Debt (Issue Bonds)• Bank Financing (Term, Bridge, Revolver, etc.)

• Strategic advisory • M&A• Financing Alternatives

• Industry and Product Coverage Groups

Bulge Bracket Citigroup Goldman Sachs JPMorgan Bank of America Merrill Lynch Morgan Stanley Credit Suisse UBS Barclays Deutsche Bank

Middle Market / Boutiques

Lazard, Moelis & Co. Piper Jaffray Oppenheimer & Co. Jefferies & Co. Thomas Wiesel Morgan Keegan Houlihan Lokey Perella Weinberg Partners Evercore Partners

Major Players

What Can You Expect?

Personality

• You get things done. And done on time.• People can spend 16 hours a day with you• Quantitative and analytical skills are a must• As you advance communication and sales skills will

become incredibly important• Able to deal with stress, frustration without complaining• Perfectionist

Well Why Would I Want This Job?

• You will learn more in your more in your 2 years as an analyst than most will learn in 3-4 years at any other entry level job

• You will work on relevant things, things you do will end up on the front page of the WSJ

• You will build models and pitchbooks for multi-billion dollar deals

• First year analyst salary: $70K + 10K signing bonus + 50K performance bonus

• Associates $150-350K, VP’s $400-750K, MD’s $1.5MM and up

Life After an Analyst

Two Year Program

Third Year Opportunity

Promotion to Associate Business School

Private Equity

Venture Capital

Hedge Fund

Corporate DevelopmentOther

Sales & Trading

Interest Rate ProductsShort-Term Interest RatesMunicipal BondsHigh YieldInvestment GradeMacro/Micro Cross-AssetsG-10 FXG-10 FX OptionsEM FXFX Corporate SalesMortgages

CommoditiesDistressed Debt InvestingBank LoansEquitiesQuant VolIndexIndex OptionsPrime BrokerageElectronic Trading

Desks

Sales• Serve as a hub of information• Provide color to clients and co-workers• Pitch ideas to clientsTrading• Make Markets (Agency Trading)

– Provide liquidity – Take the other side of trades

• Take principal positions to favor clients when needed• Take prop positions using firm’s capital

What do we do?

Sales• Have a broad knowledge of everything happening on the markets• Outspoken & likable • Be able to explain your ideas with clarityTrading• Know all about your market• Quantitative (For some desks)• Be creative • Ability to take risksBoth• Be passionate about the markets• Be able to work under pressure• Have strong opinion on everything• Be able to talk intelligently about it

Skill Sets

• Read WSJ, The Economist, Barron’s, Financial Times• Understand what you are reading and have an opinion• Follow ALL Economic events (Bloomberg.com – Economic

Calendar)• Come up with Trade Ideas based on what you read and see in

the markets• It’s good to know the technicals, but that’s not enough• Bender Trust, Trading Competition (Take it seriously!!)

What you can do NOW

Investment/Asset Management

What is Investment Management?

• “professional management of various securities (shares, bonds and other securities) and assets (e.g., real estate) in order to meet specified investment goals for the benefit of the investors”

• Includes both the sale and purchase of securities throughout all asset classes

What are some characteristics of the Investment Management industry?

• Investors include both institutions (pension funds, large corporations) and individuals (Michael Jordan, Bill Gates, etc.)

• Client-oriented business model• Longer-term focused investing (1-2 years)• Various strategies:

• Value• Small Capitalization• Indexed• High Yield• Global Macro• …the list goes on

What are the goals of active Investment Management?

Questions?

Seniors• If you want comments on your resume, email it to the E-board now• Pull WSO guides off LIBOR website, print them out, and take them with you

wherever you go• Dry clean your suit• Keep up on news

• Bloomberg, Dealbook, WSJ, FT, CNBC• Late September

• Resume done and reviewed, applying for interviews, checking careerknight daily, attending all information sessions

• Get to E-board with questions, happy to set up mock interviews• Mid October

• Application for all bulge brackets done, continue applying for anything you qualify for on careerknight

• Ready for interviews• Late October

• Applications done, keep checking careerknight• Interviews will be starting

Juniors• Goal is to land a front-office internship at a bulge-bracket firm (Citi, DB, CS, GS, JPM, UBS,

MS, BOA/ML, BARC)• Late September

• Pull your resume together and get career services to look it over• Then send it to the E-board to review it, so we can get it in the resume book• Get yourself set on careerknight

• Early October• Begin studying for interviews• Make a list of all firms you want to apply to with deadlines

• Mid November• Sign up for all interviews you qualify for on careerknight• Apply to all companies on your list• Reach out to Rutgers alumni

• Late November• Be ready for interviews• Will likely interview in January and February

• Look to sign up for Business Valuation and Venture Capital Analysis with Dr. Ben!

Sophomores

• Goal is to get an internship with a recognizable company• Most bulge bracket firms have specific programs for Sophomores

(rising Juniors) and diverse candidates• Sophomore Rotational Programs

• Paid 10 – 12 week rotational programs during the summer between Sophomore and Junior year

• Typical intern class holds 10-30 students• Interns rotate within different areas of an Investment Bank • Direct feeder to the Junior (rising Senior) summer analyst program• Firms currently holding sophomore programs include: Citi, UBS, JP

Morgan, Goldman Sachs, Credit Suisse• Get involved in organizations at Rutgers• Participate in case competitions (PWC, J&J)

Freshmen• Goal is to get an internship• Late September/Early October

• Begin to pull a resume together, visit career services for assistance• Look for opportunities to get college activities on your resume• You want to get high school things off as soon as possible• Join any and all organizations that interest you

• Start now, so that by sophomore/junior year you will be in significant leadership positions

• Read Vault guides, determine what industry interests you most• November

• Be sure you are registered for and are checking careerknight daily• Opportunities may take a while to appear

• Reaching out to alumni now will pay dividends in the future, no one expects to hear from freshmen

• Buy a subscription to the Wall Street Journal