Investment Banking Seminar

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Investment Banking Seminar

• An Introduction to Careers in Finance

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Outline

• What is an Investment Bank?
• What is Investment Banking?
• American Industry
• Canadian Industry
• The Job
• Getting In - Resources

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• 1. What is an Investment Bank?

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4 Types of Banking

• Retail Banking
• Commercial Banking
• Custody Banking
• Investment Banking

• 1934 Glass-Steagall Act
• Erected barriers between commercial banking and
  securities industry
• 1999 Gramm-Leach Bliley Act
• Effectively repealed the Glass-Steagall Act

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A Typical Investment Bank
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Institutional Sell-Side Breakdown

• Corporate Finance (Eq, Debt)
• M A
• Syndicate (Eq, Debt)
• Research (Eq, Debt)
• Equity Sales
• Fixed Income Sales
• Equity Trading
• Fixed Income Trading

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• 2. What is Investment-Banking?

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I-Banking Services

• Conducts mergers and acquisitions
• Raises capital on clients behalf
• Helps companies restructure financially

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Example MA

• Leverage Finance
• Senior Bank Debt
• High Yield Debt
• Corporate Investment Grade Debt
• Fixed Income Derivatives
• Liability Management

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The Life of a Deal
Idea Generation
Pitch to Client
Competition -Beauty Pageant
Mandate
Execution
Closing
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I-Banking Appeal

• CSFB Quote
• Large, complex and invariably pioneering, the
  transactions that the Investment Banking division
  structures and executes dramatically reshape the
  landscape in which our clients operate.

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• 3. American Industry

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The Players
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League Table
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Bulge Bracket Structure

• Industry Groups
• Technology
• Healthcare
• Financial Institutions
• Media Telecom
• Energy
• General Industrial
• Real Estate
• Retail
• Financial Sponsors

• Product Groups
• MA
• Restructuring
• Corporate Banking
• Capital Markets

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• 4. Canadian Industry

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The Canadian Players

• Big Banks

• Independent Dealers

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Canadian League Table
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• 5. The Job

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The Totem Pole

• Senior Bankers
• MD
• Director
• VP
• Junior Bankers
• Associate
• Analyst

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The Appeal

• Responsibility
• Steep learning curve
• Value adding activity
• Exposure
• Compensation (deceptive)

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Evolution of an Analyst
Mistakes per Week
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Evolution Continued
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Banking Clichés

• At the end of the day
• Touch base
• Drive this one home
• Where do we stand
• Haircut (as in these numbers need a haircut)
• Apples to apples

• Fire drill
• Going forward
• Quick and dirty
• Lots of ways to skin the cat
• Bells and whistles
• SLD (shitty little deal)
• Beauty pageant / bake-off

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Daily Routine Doesnt Exist

• Research Companies
• Financial Information
• General Information
• Modeling
• Building /Modifying Financial Models
• Compcos
• MA Comps
• DCFs
• LBOs

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Daily Routine - Continued

• Compile a Presentation
• Excel learn it, live it, love it
• PowerPoint
• Word slowly dying off
• Answer Phone / Work the E-mail
• Courteous and responsive
• Check Often

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Real Life Experiences vs. Comparable I-Banker
Experiences

• Real Life
• Walking into a snake pit

• I-Banking
• Wandering by your staffers office at 450pm on a
  Friday just to see whats going on

Going to the Lobby at 731 to pick up dinner
Happy Hour _at_ 5pm
24 months Going home Team player
15 years to life Going out Lunatic workaholic
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• 6. Getting In

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Necessary Attributes

• Analytical Skills
• Motivated
• Hard Worker
• Crave it, prove yourself and ask for more
• Entrepreneurial Resourceful

Reliability Accountability Accuracy
Desirability
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Interview Process

• Multiple Rounds
• First Round on Campus
• Second Round at Head Office
• Preparation
• CV
• Cover Letter
• Interview Practice
• And

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Resources

• Website
• http//www.musonline.mcgill.ca/content/micindex.ht
  ml
• Books
• Career Websites
• Company Websites
• Career Contacts NEW!!
• Career Offices

Best of Luck!
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MIC Winter Term

• McGill Trading Simulation
• February 4th
• Register at mcgill.trading.simulation_at_gmail.com
• Speakers
• Nicolas Toutoungi, Caisse Depot Capital, VP
  Business Development
• Marc Fredette, Genuity Capital, Principal
• Deep Khosla, JP Morgan, MD
• Guthrie Stewart, Edgestone, Partner
• National Bank Trading Floor Tour