<p>mahras, Can you explain what type of work a prop trader does or someone at hedge funds? What type of backround is best for one of those jobs?</p>
<p>Prop trading or propriety trading is trading the capital of the institution itself. Basically say goldman has 500 million in revenues. What it would do is have the prop traders trade that 500 million for gains. Nowadays, in the post web boom era, prop trading is making the most profit for ibanks. (not sure but i think its like 30-40% of the income). Prop traders work with the rhythm of the market and usually employ tech analysis but some use fundamental analysis for the more long term positions. You have t show that you have skill in trading. Let me put it this way......education isnt the top 5 most important criteria in trading. The field of trading is much more level than that in M&A whom I really consider to be prestige whores. Prop traders usually have some experience but some make it in due to their experience.</p>
<p>Hedge funds are like prop trading firms but they take other people's money. Think mutual fund with a twist. Currently hedge funds have very few restrictions so they can probably employ just about every trading strategy you can possible think of. However, this will probably change as the SEC are blaming hedge funds for some of the problems in the economy now. Hedge fund traders apply a lot of arbitrage positions. They take advantage of inefficiencies. Thats why many hedge funds are based in latin america, europe, or asian positions. Lots of bond arbitrage and mergers arbitrage is also used. To break into hedge funds out of school you should definately be at the top schools. Think Chicago, Harvard, Wharton and Michigan. Actually thats it. Most traders come from those schools. Hedge funds like computer majors and math majors because arbitraging is HIGHLY quantitave. However, economics is very well represented.</p>
<p>To sum it all up if you are good at trading you will love prop and hedge funds because hours are better, less of an hierarchy and more excitement. But if you aren't good and think you cant withstand the pressure stick to slave work....errr.....i mean corp finance. ;) Good luck.</p>
<p>These people make good money. Does IB require an MBA.</p>
<p>guess what guys?! i'm going to do an internship in edward jones investment firm! i'm so excited. my teacher told me investment bankers make beaucoup d'argent. they not only get paid a salary, but they get comission too.</p>
<p>Congrats patientlywaiting</p>
<p>i get the feeling that the lifestyle/salary of i-banking is much like law, but more emphasis on math... would this be an accurate comparison?</p>
<p>dunno, lots of differences.
lawyers- much more respected, also more hated, from surveys a lot of lawyers are unhappy in their profession, not as much money here as in i-banking, also lots of law fields, so it all depends.</p>
<p>i-bankers- lots of money here, not much of a life, math skills depend totally on the job, most don't require any math skills, just perceptive minds or a type-a personality, i've heard in i-banking you're going to meet a lot of sleaze bags(even more so than in law)</p>
<p>the best thing to do to get a take on the profession is actually talk to some bankers, and read up on it. there are lots of sites online about i-banking, and Michael Lewis's book Liar's Poker really gives a great insight on i-banking in the 90's</p>
<p>What about the differences in compensation between different types of i-bankers? How does starting and long term compensation differ between S&T, M&A, and corporate finance, ect. ?</p>
<p>wow. somebody dig up the 4 year old thread. lol</p>
<p>Go to undergrad Wharton where over 40% of the graduates get into IB when the economy was doing well 2005-2007.</p>
<p>i was told that being in the mid 30s i will too old to enter the industry when i graduate in 2 years. does anyone have any insights on this?</p>
<p>have you guys not been watching the news? I-banking is dead. the last two investment banks, Goldman Sachs and Morgan Stanley filed for commercial bank status last week.</p>
<p>I would hardly say that Ibanking is dead. Sure, stand-alone Ibanks are no more. But the job of Ibanking will just become one division of the universal banks.</p>
<p>salary/comps are definitely going to be down this year </p>
<p>===
Banker</a> Times
news by bankers, for bankers</p>
<p>My friend started at JPM this summer at $50k. Went to a really good business school, was a TA for a trig class (skilled in mathematics), had all the resume leadership BS, 3.8GPA. The sign on bonuses are more like $5000, and they are taxed, so more like $3500 if you're lucky. </p>
<p>IMO, you'd be insane to get into IB these days if you have no experience.</p>
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<blockquote> <p>Ibanking will just become one division of the universal banks</p> </blockquote>
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<p>Companies will still need financing, M&A help, and so on. I think the days of insane payouts may be over, though, as the big corps take over.</p>
<p>I recall reading Jack Welch's commentary about GE's unfortunate foray into the area with Kidder Peabody. The conversation went something like this:</p>
<p>KP manager: "We need to give this guy a $12 million bonus."
Welch: "Why would we do that? The firm lost money, and he had a lousy year."
KP manager: "Well, he might go somewhere else if we don't."</p>
<p>GE bailed out soon after that, in good part because even though Welch thought it was nuts, that was how the industry worked. Might be different today.</p>
<p>
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GE bailed out soon after that, in good part because even though Welch thought it was nuts, that was how the industry worked. Might be different today.
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</p>
<p>Wasn't it more Kidder Peabody collapsing in the aftermath of the Joseph Jett scandal and PaineWebber swooping in and buying the remnants on the cheap?</p>
<p>OK i got a question:</p>
<p>I am at UT Austin with a 3.5 GPA
I have done 2 summer internships at medium (to the larger side) IBs
I am not trying to go to GS or MS but i was wondering what kind of Wall Street IBs i would be accepted into and could work for.</p>
<p>Also around where would be my pay
(I have reseached all these questions just confirming answers b/c have gotten conflicting answers.)</p>
<p>Target770 - I guess you don't want to (or can't for whatever reason) work for either of those banks you did internships with? that seems to be the 'easiest' way to get a permanent job in IB these days. </p>
<p>Your marks are good and you have work experience so you should definitely be able to make it to the interview stage with that. In my opinion most IB jobs come down to the interview stage .. if you can sell yourself and they like you, they will hire you. </p>
<p>I am starting at Deutsche Bank in London in September and I graduated from McGill with only a 2.95 GPA and had no banking experience..so trust me if you sell it at interview you are in regardless of your credentials.</p>
<p>Good luck with your search.</p>
<p>oh starting salary on this side of the Atlantic is 40K pounds plus 10% signing bonus. can't comment on end of year bonus because I don't know yet.. not that things are looking too promising these days haha.</p>
<p>from what i've heard JP Morgan starts at around 42K, GS around 45K. the majority of the others start you around 35-40K GBP base.</p>