Finding Investment Banking Jobs in 2010

The investment banking industry has just gone through one of the toughest period in its history. Thanks to overleveraging of balance sheets and a bubble in both the housing industry and the associated mortgage securitization sector, we have seen dramatic losses in the sector. Bear Stearns and Lehman are no longer with us. But like after any forest fire, new sprouts of growth are everywhere. And the trees that survived the fire are stronger than ever. We have seen countless new boutiques emerge and strengthen rapidly. Recent takeover battles have involved names like Centerview, Evercore, and Lazard just as much as Goldman Sachs and Morgan Stanley. Very different than in days past. Good things are happening to the industry. Balance sheets are less leveraged. Scrutiny on marginal behaviors has helped the industry to get refocused on the customer - the main mission after all. Almost all firms have now repaid their TARP money. And, critically, business is picking up. This year, 2010, is shaping up to be strong in M&A and solid in both debt markets and follow-on equity. IPOs remain weak but should be back in strength as the equity markets recover. Credit markets are stronger and bargain hunters are finding traffic jams on their way to rescue weak banks and other distressed companies. This all bodes well for the future and reminds us of the situation in banking in the 2002/3 era. Financial reforms will also change the industry making it tougher for firms to profit from derivatives and proprietary trading. While this may exact a toll on near term profitability, the changes are not likely to change the long-term viability of the investment banks. It's possible even, that reforms will ultimately strengthen the industry, by renewing the focus on traditional intermediation activities. There is important good news for you which is that recent upheaval creates opportunity in investment banking, and because investment banks perform functions that are central to a market economy they tend to emerge from downturns stronger than before. You'll find the suggestions below are very relevant in the current investment banking job market. Finding banking jobs remains difficult at present but is much easier than it was a year ago. We think that this is the best time in a long time to get into the industry. The current environment creates unprecedented opportunity in the banking business. Despite talk of low pay, don’t worry – there is still plenty of opportunity to make money in banking. Past periods of instability in this industry (which are unfortunately, all too common) have created great opportunity for upward mobility. As experienced players exit this industry, are laid off etc., room is created for those who remain and those who enter to do well. Investment banks are essential intermediaries in a well functioning economy. They match users of capital with suppliers of capital with ever greater sophistication. In addition, they provide high value strategic advice to both individuals and institutions. Think M&A and financial planning. Banks are not going away. They will bounce back and continue to offer positions that are interesting, lucrative, and deeply satisfying to those who excel (or are lucky enough to be in the right place at the right time). The key to finding jobs in investment banking in the current market is knowing where to look and then being persistent in breaking in. In particular, a job search in banking is a numbers game. You talk to a lot of people and you are going to “hit” in a certain fraction of those discussions. The odds are worse now so you need to work harder. Talk to more people. Be more prepared than usual and very good at following up (the quality of follow-up distinguishes many people who get jobs).