1. Armenian State University of Economics Yerevan, Armenia
Careers Lecture
Thursday 7 December 2017

2. Presentation Structure
A bit about me (Bruce Hearn) and my background….
What is an Investment Bank?
Pros and Cons of a career in Finance
How to search for jobs in Finance industry
Useful tips….

3. A bit about me (Bruce Hearn) and my background….

4. Career……
1999 – 2001
Worked full time in Operational Risk Management at BNP Paribas while completing 2 year MSc International Business at night time college of University of London
2001 – 2002
Operational Risk at Bahraini investment Bank ”Gulf International Bank”
2002 – 2003
Quantitative analyst/ trading strategy programmer
2006 – 2008
Market Risk at Calyon (Credit Agricole) while completing PhD at Kings College London

5. Structure of Investment Banks
Major investment banking divisions include:
Investment Banking
Intermediary between the capital markets
Advice and analysis on M&A and Capital Structure
Equity and Fixed Income Underwriting
Asset Management
Provide asset management services to investors and institutions
Sales and Trading
Sales and Trading of Equity (Stocks), Fixed Income Securities (Bonds), Derivatives (Options).
Research
Provide research on public stocks and bonds

6. Structure of Investment Banks (continued)
I-Banking
Division (IBD)
Asset
Management
Sales &
Trading
Research
Industry Groups
Corporate Finance
Product Groups
M&A
High Yield
Debt Capital Markets
Equity Capital Markets
Private Client
Services
Work with High
Net Worth Individuals
Buy and Sell
Financial
Securities
and Derivatives
Analyze all
Public information
in order to give
advice to
investors and
sales and trading
group

7. Examples of Careers: ”Trading” (BNP Paribas)

8. Pros and Cons of a career in Finance

9. Money – high compensation and bonuses Blue chip brand on CV
Pros
Money – high compensation and bonuses
Blue chip brand on CV
High level of skills and efficiency
Highly useful transferable skills – for example to ”transfer” to another firm (as part of your longer term career) or your own entrepreneurial start-up
Professional vocational qualifications (CFA, ACCA, CIMA as well as further academic credentials – such as MBA or specialist quantitative Masters degrees)

10. Very long/ extreme working hours
Cons
Very long/ extreme working hours
Normal day starts in office at 6am
Normal day finishes in office at 12 midnight (or entertaining clients)
6 day working week (including Saturdays)
Risk of ”burn out”
casual observation is Investment Bankers & Financiers are young (under 40 years old)

11. Academic Research into unusual places…
Academic Research into unusual places….. (in 2001 a research trip to Namibia followed by a televised conference of my research in South Africa)

12. Followed by Academic Publications in Research Journals

13. What is an Investment Bank?

14. Structure of Investment Banks (continued)
I-Banking
Division
Asset
Management
Sales &
Trading
Research
Product
Group
Industry
Group
(Corp Finance)
Manage funds
for institutions
and individuals
Private Client
Services
Equity
Capital
Markets
Debt
Capital
Markets
High
Yield
Debt
Equity
Fixed
Income
Derivatives
Economic
Equity
Fixed
Income
M & A
Consumer Products
Technology
Telecommunications
Real Estate
Utilities
Health Care
Retail
Consumer Products
Technology
Telecommunications
Real Estate
Utilities
Health Care
Retail

15. Jobs in Investment Banking (continued)
I-Banking
Division
Asset Management
Division
Research Analyst
Analyst
Senior Analyst
Portfolio Manager
Product
Group
Industry
Group
(Corp Finance)
Equity
Capital
Markets
Debt
Capital
Markets
High
Yield
Debt
Mergers &
Acquisitions
Consumer Products
Technology
Telecommunications
Real Estate
Utilities
Health Care
Retail
Assistant Analyst
Research Analyst
Analyst
Senior Analyst
Assistant Analyst
Research Analyst
Analyst
Senior Analyst
Research Analyst
Analyst
Senior Analyst

16. Examples of Careers: ”Operations” (Goldman Sachs)

17. Examples of Careers: ”Investment Banking” (Goldman Sachs)

18. Examples of Careers: ”Derivatives” (BNP Paribas)

19. How to search for jobs in Finance industry

20. Graduate recruitment programs
Paths for graduates….
Graduate recruitment programs
Only take a tiny tiny fraction of graduates
Despite the glossy brochures and online websites
Headhunting/Recruitment agencies
Major source of recruitment into firms
Direct application to companies
Equally a major source of recruitment although this involves Human Resources and not hiring line managers
Careers/Job fairs/forums
Smaller segment but similar to graduate recruitment

21. Graduate recruitment programs
These are most well publicised recruitment tools
Glossy brochures overwhelmingly dominate careers offices of universities
Ultra-sleek websites
Events include 5 star bookings of hotel suites for presentations and even events in bespoke training ”villages” such as Deutsche Bank in Frankfurt
Only one problem – it accounts for a tiny fraction of a percent of overall graduate population!!!!

22. Headhunting/Recruitment agencies
Pros – these deal directly with line manager (cut out HR altogether except for formality)
Pros – often highly experienced in recruitment markets, know ”how to sell”, and ”know their clients needs
Pros – often can quickly match candidate with approriate job – based on skills and ”personality fit”
Pros – excellent CV and interview advice
Cons – You need relevant work experience to be attractive to them

23. Examples of specialist headhunters
Robert Walters (a FTSE100 firm):
Morgan Mckinley:
Robert Half International:
Walker Hamill:
Hays Banking:
Michael Page
US and London:
Nordic:

24. eFinancialCareers: City Jobs (UK):
…..and useful careers websites (based primarily on recruitment consultancies)
eFinancialCareers:
City Jobs (UK):
…..usefully you can sign up to these websites and receive s every day with lists of new graduate-level jobs posted

25. Direct application to companies
Pros – handling experienced HR personnel
This can often lead to their giving you very tailor-made advice
Pros – cost effective for companies to rely on such direct recruitment as it cuts out the additional costs of headhunters/recruitment consultants (this often amounts to thousands of pounds)
Cons – rigorous emphasis on relevant work experience
Cons – you do without the sales skills of recruitment consultants/headhunters in negotiation

26. A caveat……
How do you get around ”relevant work experience” requirement? …. This is a huge problem
Answer – really do your research……
Talk to everyone you possibly can about what life and working conditions are like in various divisions and industries
Research what different divisions actually do using internet
Read up as much as you can
Ultimately know as much as you can about your desired areas

27. Careers/Job fairs/forums
Many companies see these as a prelude to formal graduate recruitment process
Pros – easy to interview and meet many companies within a matter of a few hours
Pros – good to get better idea of company culture
Pros – fascinating insight into other candidates you are competing with (know your market type idea)
Cons – only the very beggining/start of a process that is ultimately continued at the company itself

28. Examples of Careers Fairs
Latin American (and Spanish speakers):
Japanese-speakers:
Continental Europe and Scandinavia:
UK:

29. Useful tips….

30. Interview and general advice

31. Do your research on department or bank you are applying
From prior research gain a solid understanding of products used
From prior research thoroughly understand/be fluent in differences between your ”chosen” department and other related departments
So……for example……what is difference between ”credit risk” and ”market risk” or ”FX risk”
Tailor-make your CV and application for *each* individual job you apply to - - DO NOT simply use ”standard” versions
Obviously this means *a lot* of work on your part….

32. If you don’t have relevant work experience in. that. area……
If you don’t have relevant work experience in *that* area…….then highlight those skills you do have that are of relevance
Be open minded to gaining valuable entry level experience first that will ultimately lead to you obtaining a graduate role in your next round of applications/job hunting
Finally……be persistent – it does pay off 
Good luck……