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8/3/2019 The Unofficial Guide to Investment Banking Issued by Contents Overv
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The UNOFFICIAL GUIDE
to INVESTMENT BANKING
Issued by
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CONTENTS
INTRODUCTIONWHY AN UNOFFICIAL GUIDETO INV ESTMENT BANKING?
O V E R V I E W O F I N V E S T M E N T B AN K I N G
M Y T H S
AN D R E ALI T I E S
F I N AN C E AS S E T M AN AG E M E N T
GLOBAL
BANKING
GLOBAL
MARKE TS
G R O U P
T E C H N O LO G Y & O P E R AT I O N S
LEGAL,
RISK &
CAPI TAL
W ORK ING
T HE PROCESS
T OP T IPS
GLOSSARY
3
4 6
12
8 10
2 2
24
28 30
16
H U MA N
R E S O U R C E S
2 0
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Why an “Unofficial
Guid
e to
Investm
entBanking?”
The aim of this guide is to give you a fresh
view of investment banking. A brochure is
helpful, but can read a little like a catalog.
We think you need to know what your life
would really be like, challenging out-of-date
myths and stereotypes, so you are able to
make the most informed decision possible.
This is an honest look at investment
banking and is based on the experiences
of people just like you, who have now gone
through the graduate program and come
out the other side with blossoming
careers. It is the inside
story of investment
banking written by
analysts for graduates,and you won’t hear this
tale anywhere else.
We’re going to tell
you about all the
divisions you could
work for, what life’s
really like for analysts
and show you that there’s
more to banking than pitchbooks, power lunches and pinstriped
suits. And if you still want to go into
banking once you’ve heard the inside
scoop, we’ll tell you about how to get
there and give you practical tips on
interviews and applications. Oh and
don’t worry if you come across words
you don’t understand, you’ll find them
in the “glossary of incomprehensible
banking jargon”.
Happy reading and good luck!
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brokers, commercial banks and asset
managers - investment banks now appear
bewilderingly huge.
As if the range of different businesses
wasn’t enough, within each typically lies
layer upon layer of complexity. This is, in
part, due to the fierce competition for
notoriously large fees. Without innovation
and a detailed understanding of markets
and clients, these fees rapidly disappear.
The good news is that investment banks
need both specialists and those able to
grasp the bigger picture. As the opposite
function-by-function list suggests, a mix of
responsibilities, roles and opportunities are
available to you.
OVERVIEW OF
INVESTMENT BANKING
Investment banks are among the largest
and most complex organizations in the
world. They serve many different types
of companies, institutions and
governments and play a huge role
in the financial sector.
Investment banking is
now a much broader
business than it was
even a quarter of
a century ago.
Many traditional
services
centered on
helping
corporate
clients secure
financing to achieve key strategic
objectives e.g. mergers and acquisitions.
Today, investment banks are much more
than well-connected intermediaries
between investors and chief executives:
the biggest players can meet virtually all
the financing and investment needs of
wholesale customers globally.
The industry changed because of the
successive waves of consolidation in the
finance sector. Investment banks now
trade and issue equity and debt as well as
lend directly to clients and offer a range of
investment options. Having swallowed up
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MYTHSTY PE OF PERSONT h e i n v e s t m e n t b a n k i n g w o r l d i s l i k e a n u n a p p r o a c h a b l e o l d b o y s ’ c l u b – u n l e s s y o u a r e a n i v y l e a g u e / r e d b r i c k u n i v e r s i t y g r a d u a t e .
TRADERS
T r a d e r s a r e r uthl e ss d ea lm ake r s w h o o nl y c a r e
a b o ut m o n e y .
THE HOURS
T h e r e a r e n o n o r m a l w o r k i n g h o u r s i n i n v e s t m e n t b a n k i n g – y o u h a v e t o g i v e u p y o u r p e r s o n a l li f e / g i r l f r i e n d / b o y f r i e n d / f a m i l y / h o b b i e s .
T YPE OF PERSON
T h i s i s c o m p l e t e l y u n t r u e ! Y e s , a g o o d d e g r e e i s
e s s e n ti a l b u t b a n k s in v e s t a h u g e a m o u n t i n
t r y in g t o a t t r a c t a v e r y d i v e r s e r a n g e o f p e o p l e .
TRADERS
T h i s i s p a r t i a ll y t r u e – t r a d e r s m u s t b e v e r y
f o c u s e d a n d m o ti v a t e d a s th e y c o n d u c t o n e o f th e b a n k ’ s c o r e a c t i v i ti e s a n d th e r e f o r e h a v e a l o t o f r e s p o n s i b i li t y t o s h o u l d e r .
THE HOURS
No t e nti r e l y t r u e , it d o e s d e p e nd o n th e a r ea
w h e r e yo u w o r k . O n th e t r a ding f l oo r yo u w o r k
a n int e n s e 10 h o u r d a y; a nd w h e n o n a d ea l ,
in v e s tm e nt b a n ke r s c a n pull a ll - night e r s . O th e r
a r ea s g e n e r a ll y h a v e m o r e s t a nd a r d w o r k
s ch e dul e s . S t a r ting a c a r ee r in a n y indu s t r y
r e qui r e s l o ng h o u r s a nd d e dic a ti o n t o g e t
a h ea d , b a n k ing i s n o di ff e r e nt .
MYTHS AND REALITIES OF
INVESTMENT BANKING
There are many assumptions made
about investment banking, including theenvironment, work and people. Some of
these clichés are based on truth and
some are definitely rooted in
misunderstanding.
Deutsche Bank’s current
analysts considered the
myths they had heard before
they joined the bank and
whether these had turned out to be reality.
REALITY
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GRADUATES
G r a d u a t e s g e t a ll th e m u n d a n e , a d m i n t a s k s
w h i l e t h e r e s t o f t h e t e a m d o e s th e f u n s tu ff .
THE SALARY
Y o u e a r n s o m u ch m o n e y; y o u c a n r e ti r e a t 30 w it h a j e t , y a c h t a n d c o u n t r y h o u s e .
THE CULTURE
T h e w o r k i n g c u l t u r e i s s t u ff y a n d c l o s e d . Y o u
h a v e t o m a k e s u r e y o u k e e p y o u r h e a d d o w n
a n d d o n ’ t a s k t o o m a n y q u e s t i o n s .
THE MATHS
Y o u h a v e t o b e a m a th e m a t i c a l g e n i u s t o a p p l y
t o b a n k i n g – a n a r t s g r a d u a t e h a s n o c h a n c e .
GRADUATES
Q uit e th e o pp os it e . G r a du a t e s a r e gi v e n a
s u r p r i s ing a m o unt o f r e s p o n s ibilit y a nd a n yo n e
w h o ’ s s k ill e d a nd w illing i s r e c o gni ze d .
THE SALAR Y
N o t q u i t e , b a n k e r s a r e n o t t h e H o l l y w o o d A- l i s t .
M o s t p e o p l e h a v e n o r m a l , d o w n t o e a r t h li v e s .
Y o u m a y e a r n m o r e th a n c o m p a r a t i v e r o l e s i n
o t h e r i n d u s t r i e s , b u t a p r i v a t e j e t m i g h t b e g o in g
a b it f a r …
THE CULTURE
T hi s i s n o t t r u e . I n in v e s tm e nt b a n k ing yo u
a r e a l w a ys l ea r ning a nd th e r e ’ s a n o p e n ,
f ee db a c k cultu r e .
THE MATHS
B e in g a b l e t o u n d e r s t a n d a n d e x p r e s s i d e a s w it h n u m b e r s i s c e r t a i n l y a n i m p o r t a n t s k i l l i n m a n y r o l e s , b u t w h a t d e g r e e y o u h a v e g r a d u a t e d w i t h i s n o t n e c e s s a r i l y t h e q u a l i f y i n g f a c t o r – i n f a c t , D e u t s c h e B a n k r e c r u it s t h e b e s t f r o m a l l d i s c i p l in e s .
DI VERSI T Y
T h e r e i s n o t m u c h d i v e r s i t y in i n v e s t m e n t b an k in g –
t h e r e ar e f e w w o m e n an d m i n o r it i e s r e p r e s e n t e d .
THE JARGON
T h e r e i s s o m u c h j a r g o n in b a n k i n g ; i t ’ s l i k e
h a v in g t o l e a r n a n e w l a n g u a g e .
THE ATTIRE
Y o u h a v e t o w ea r a b o w ti e a nd pin s t r ip e d s uit
e v e r y d a y – it ’ s th e un s p o ke n uni f o r m o f
in v e s tm e nt b a n k ing .
YOU HAVE TO SPEAK GERMAND e u t s c h e B a n k i s v e r y G e r m a n i n th e w a y i t d o e s b u s in e ss a n d e v e r y o n e h a s t o s p e a k G e r m a n .
DIVERSITY
D i v e r s it y i s c o n s id e r e d a v e r y imp o r t a nt ,
s t r a t e gic bu s in e ss d r i v e r a t D e ut s ch e B a n k . T hi s
i s f o r t w o r ea so n s: it mitig a t e s th e r i s k th a t i s
in vo l v e d in h o m o g e n o u s thin k ing ; a nd it a ll o w s
u s t o r e f l e ct o u r cli e nt b a s e – a nd th e y a r e a
di v e r s e g r o up o f p e o pl e .
THE JARGON
T h at ’ s r i g h t ; t h e r e i s a l o t o f j ar g o n . O n c e y o u
h av e l e ar n e d i t ( o n th e e x c e l l e n t t r ai n i n g
p r o g r am s ) y o u ’ ll w o n d e r w h at y o u d id w i t h o u t
it . C h e c k o u t t h e g l o s s ar y i f y o u n e e d h e l p .
THE ATTIRE
O f c o u r s e so m e p e o pl e li ke th e o ld s ch oo l a tti r e ,
but th e b o w ti e l oo k i s r ea ll y n o t th a t c oo l
a n y m o r e …
YOU HA VE TO SPEAK GERMAN
D e u t s c h e B an k i s a l e ad i n g E u r o p e an B an k
w it h a m u l t i n at i o n al w o r k f o r c e . I t h as a s t r o n g
g l o b al p r e s e n c e w i t h o f f i c e s i n Lo n d o n , N e w
Y o r k , H o n g K o n g , S i n g ap o r e , T o k y o ,S y d n e y an d
F r an k f u r t ( t o n am e a f e w ) . An d s p e ak i n g
G e r m an i s n o t m an d at o r y !
I f y o u w a n t m o r e
i n f o r m a t i o n o n w h a t i t ’ s l i k
e t o w o r k
f o r
D e u t s c h e
B a n k
,
v i s i t
w w w
. d b
. c o m / c a r e e r s
.
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ASSET MANAGEMENT
WHAT DOES THE ASSET MANAGEMENT
DIVISION DO?
Asset Management firms manage otherpeople’s money, usually belonging to
companies, institutional investors, or
private parties, by converting this money
into assets – stocks, bonds, derivatives,
and other types of investments – with
the goal of making that money, make more
money. Asset managers use a combination
of investment theory, quantitative tools,
market experience and research to pick
investments for their portfolios, rangingfrom high-risk stocks to commercial real
estate or cash accounts.
WHAT ROLES ARE THERE WITHIN ASSET
MANAGEMENT?
Asset Management is typically split into
three main areas according to investor and
investment types:
INSTITUTIONAL INVESTORSThis area specializes in providing
investment advice and products to pension
funds, insurance companies, charities and
corporates wanting to make long-term
investments of their assets.
RETAIL INVESTORS
Most investment managers don’t deal
direct with individual members of the
public, but do develop products tailored to the retail needs which are marketed
through retail banks or independent
financial advisors.
ALTERNATIVE FUNDS
This segment includes real estate and
hedge funds. Real estate enables
investors to buy into funds featuring
property types including domestic,
commercial or industrial property. Asset managers increasingly offer the
opportunity to invest in hedge funds.
Typically this is attractive to organizations
that want to diversify from traditionalinstrument types, e.g. equities (stocks) and
fixed income (bonds) to boost returns.
There are two main functions in each of
the above areas:
INVESTMENT MANAGEMENT
This function is responsible for investing
clients’ funds in specific asset classes,
such as equities and fixed income aswell as hedge funds. Portfolio managers
specialize in particular instruments and
markets and are responsible for
performance of a portfolio of fund types
(e.g. growth, value, domestic or regional).
SALES AND DISTRIBUTION
This function is responsible for creating,
positioning and selling the investment
products the bank offers. The MarketStrategy teams create the investment
products, making sure each portfolio has a
mixture of instruments that meet clients’
needs. Sales & Marketing are responsible
for explaining the products to institutional
investors. For any fund to flourish, the
sales team must first convince clients of
its attractions: without investors, there can
be no fund.
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WHAT IS THE GRADUATE PROGRAM LIKE?
R o l e s i n As s e t M a n a g e m e n t a r e l e s s f l e x i b l e t h a n i n a n y o th e r a r e a o f t h e b a n k . An a l y s t s t e n d t o b e h i r e d
i n t o e it h e r in v e s t m e n t m a n a g e m e n t o r s a l e s a n d d i s t r i b u t i o n . T h e n r o t a ti o n s m a y t r a n s p i r e t h r o u g h o u t
t h e p r o g r a m t o a l l o w t r a in e e s t o f i n d t h e i r n i c h e ( u n l e s s y o u k n e w w h a t y o u w a n t e d t o d o a l r e a d y ) a n d
b e c o m e a s p e c i a l i s t .
LIFE AS AN ANALYST
O n t h e in v e s tm e n t m a n a g e m e n t s i d e , th e r e a r e f e w e r p l a c e m e n t s a n d s u c c e ss d e p e nd s o n n ic h e m a r k e t k n o w l e d g e a n d b u ild in g l o n g - t e r m r e l a ti o n s h i p s w it h c li e n t s . S p e c i a li z a ti o n i s c r uc i a l t o d e m o n s t r a ti ng v a lu e t o cl i e n t s , b u t r e l a t i o n s hi p s a nd n e t w o r k in g c a n b e j u s t a s im p o r t a nt . T h i s a d d s u p t o l o ng h o u r s , bu t a v a r i e d a n d f u l f i ll in g w o r k in g d a y . E v e nt u a l l y , y o u ’ ll b e c o m e a t r u e s p e c i a l i s t in y o u r a r e a a n d a n e x t r e m e l y v a l u a b l e t ea m m e m b e r .
I f yo u w a nt t o c r e a t e a n d s t r a t e g i z e o n p r o d uc t s , p o s i ti o n th e m in th e m a r k e t a nd w in ov e r i n v e s t o r s , b u s i n e s s
m a n a g e m e n t i s
f o
r
yo u . Y o u g e t t o b e t h e l in k b e t w ee n th e a s s e t m a n a g e r s , c li e n t s a n d C o n t r o l li ng –
i t ’ s h e c ti c , b ut y o u w i ll g e t t o k n o w y o u r m a r k e t r ea ll y w e ll . T h e r e a r e o nl y a f e w g r a d u a t e s a nd c o m m i tm e nt i s ke y – y o u c a n ’ t f o r g e a r e l a t i o n s h ip w i th a cli e nt o n e y e a r a n d d i ss o l v e it t h e n e x t .
SO, IS ASSET MANAGEMENT FOR YOU?
T h e p r o f e s s i o n r e q u i r e s e x c e l l e n t q u a n t i t a t i v e a n d a n a l y t i c a l s k i ll s , a s w e l l a s a g o o d d e g r e e . M a n y g r a d s
s t u d i e d b u s i n e s s o r e c o n o m ic s , b u t i t ’ s n o t a s e s s e n t i a l a s k e e n n e s s a n d g o o d c o m m u n i c a t i o n s s k il l s . All
a n a l y s t s h a v e t o t a k e t h e I n v e s t m e n t M a n a g e m e n t C e r t i f i c a t e ( I M C ) a s p a r t o f th e p r o g r a m a n d th i s h a p p e n s
o u t s id e o f w o r k ti m e . M a n y a n a l y s t s a l s o o p t t o t a k e t h e C h a r t e r e d F i n a n c i a l An a l y s t ( C F A ) e x a m .
DO YOU WANT TO...
• B e c o m e a n e x p e r t i n a s p e c i f ic s e ct o r o f
t h e f in a n c i a l in d i c e s
• W o r k w i th a n d in f l u e n c e t h e w o r l d ’ s
b ig g e s t i n v e s t o r s
• U n d e r s t a n d h o w d i f f e r e n t f in a n c i a l
in s t r u m e n t s b e h a v e • D e a l w i t h l o n g t e r m in v e s tm e n t s
( s o w o r k i s n o t a s d e a d l in e d r i v e n )
• H a v e a g r e a t o p p o r tu n i t y t o s h i n e –
o n l y a f e w g r a d s a r e t a k e n o n a n n u a ll y
BUT BEW ARE...
• Lo t s o f n e t w o r k i n g i s r e q u i r e d • F o c u s i s k e y i n t h i s d i v i s i o n – y o u n e e d t o b e c e r t a i n o f y o u r c h o i c e o f c a r e e r • I t s n o t a s f a s t - p a c e d a s G l o b a l M a r k e t s • H o u r s c a n b e l o n g • I t s v e r y
c h a l l e n g i n g
– k n o w i n g y o u r s p e c i f i c s e c t o r i s h a r d w o r k
• Y o u a r e r e q u i r e d t o t a k e p r o f e s s i o n a l e x a m s
“Working with Alternative Investments is
a bit like being party coordinator between the
portfolio managers and the underlying funds(fund of funds). You get to know Controlling and
many other aspects of the bank.”
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WHAT DOES THE FINANCE DIVISION DO?
For any company, integrity is crucial to its
ability to do business. When a company’s
regul
ato
ry compli
anc
eor int
ernal cont
rols
fallshort, we’re all aware of the scandal that can
ensue (think WorldCom or Enron).
For banks, as financial intermediaries, it’s
doubly important that there is a robust
framework to establish control and ensure
integrity.
The Finance division at Deutsche Bank does
just this. It is a bit like a police force for the
bank. It enforces the external laws that govern
the financial industry and sets the internalcontrols to ensure the bank conducts
its business effectively and
profitably.
WHAT ROLES ARE THERE
WITHIN FINANCE?
Finance is split into four areas:
BUSINESS AREA CONTROL (BAC)
When traders are doing deals, they don’thave much time on their hands. They are there
to make money for the bank and don’t have
time to check the fruits (or foibles) of their daily
trading activity. For each business area, BAC
calculates, analyzes and reports risk and profit
and loss (P&L) to the trading desks and senior
management daily, often using numerical
models to tally these figures against what the
traders ‘think’ they made that day. BAC are key
partners with the traders when it comes to
setting up new products and business streams,designing and implementing infrastructure
changes and in providing information for them
to manage their businesses in the most
profitable and scaleable manner. BAC also
interfaces with Legal Entity Control and Risk
Management / Group Risk Control to ensure there
is accurate and fair
information in the firm’s
financials and Value at
Risk (VaR) respectively.
LEGAL ENTITY CONTROL (LEC)
LEC is responsible for reporting the financial
results to Corporate Centre and for statutoryreporting to regulators, such as the UK’s
Financial Services Authority (FSA) and the
Federal Reserve in the US. All regional Finance
functions report on a monthly and annual basis
on the managerial and financial aspects of the
business. This function is also tasked with
making sure Deutsche Bank’s reporting
structure makes the best use of technology.
GROUP RISK CONTROL (GRC)
GRC is the centre of competence within
Deutsche Bank for risk measurement
and reporting. GRC teams work
closely with Legal, Risk & Capital to
implement risk methodology. GRC’s
role includes the measurement,
analysis and reporting of Credit,
Market, Operational, Investment,
Business and Liquidity Risk. In GRC
you will be responsible for quantifying
risk and ensuring the quality and integrity
of risk related data.
GLOBAL VALUATION GROUP (GVG)
This department makes sure that all those
exciting and exotic investment products are
priced correctly. The GVG uses industry standards
as well as complex mathematics to support its
own pricing models. Some new investment
products being created these days are so new
that there is no industry standard, so
it’s important to assess pricing. Thisgroup is also responsible for
making sure that trading desks
globally have their pricing
tested on a regular basis.
Finance interfaces with the
Group Technology and
Operations functions regularly,
ensuring that systems are able
to cope with its requirements.
Finance and Operations are also in
charge of the ledger and making sure that themoney is in the bank after a hard day of trading.
FINANCE
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GLOBAL BANKING
WHA T DOES THE GLOBAL BANKING
DI VISION DO?
Jus t like your local bank pro vides you wi th an
accoun t, loans and in ves tmen t oppor tuni ties,
companies need someone to manage their
finances too. Large, t ypicall y mul tina tional
corpora tes rel y on in ves tmen t banks because
o f the scope o f ser vices required.
Pre viousl y, in ves tmen t banks pro vided
corpora tes wi th ad vice and
in troduc tions to in ves tors, ra ther
than lending their o wn funds like a
commercial bank. Banks no wada ys,
in order to mee t increased demands,
ha ve broadened their range o f
produc ts and ser vices. Tha t is
cer tainl y the case a t Deu tsche Bank.
Global Banking consists of Corporate Financeand Global Transaction Banking.
Corporate Finance comprises the complete rangeof integrated investment banking produc
ts andindustry sector coverage, enhanced by extensive
country and local market knowledge.
Products and services delivered across acohesive global platform include Mergers &Acquisitions Advisory, Equity Capital Markets,Leveraged Debt Capital Markets, CommercialReal Estate, Asset Finance & Leasing andcorporate lending services.
Corporate Finance at Deutsche Bank employsapproximately 4,250 professionals in 37 countries. ( June 2007)
Equally,within Global Transaction Banking thereis a complete range of Cash Management, TradeFinance, Trust & Securities Services and CapitalMarket Sales available making Global Bankingone of the most diverse businesses at DeutscheBank. All the various services within DeutscheBank are dedicated to fulfilling the completefinancial needs of companies.
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WHAT ROLES ARE THERE WITHIN
GLOBAL BANKING?
Because of the wide range of client needs
catered for by Global Banking, there is a great
variety of specialist and generalist roles.
A common distinction is between client
coverage and product teams:
CLIENT COVERAGE
Client coverage involves senior professionalswith specialist experience looking after clients
designated by geography or by industry sector.
This provides clients with access to an
extensive skill and knowledge base built on
a deep understanding of their market and
industry from which they can leverage.
When coverage bankers have identified
specific needs, they will call on product
specialists to provid
e furth
er advic
e andservices while continuing to act as a bridge
between the client and product specialist to
ensure client satisfaction is maintained.
PRODUCT TEAMS
So that our clients get a comprehensive,
integrated service from Deutsche Bank,
Global Banking: Corporate Finance has been
structured to offer:
Asset Finance & Leasing – AFL is a global
provider of structured financing solutions as
well as comprehensive advisory and arranging
services for long-living, high-value assets such
as: aircraft, ships, real estate, infrastructure,
renewable energy and alternative assets, like
patents and private equity.
Commer cial Real Estate – Pr ov ides f inancingser v ices to or ganizations owning or acquir ingcommer cial r eal estate assets includingar r anging debt f acilities and supply ing liquidity to r eal estate institutions. Deutsche Bank is aglobal leader in Commer cial Real Estate withan ex tensiv e team of pr of essionals based inthe US, Eur ope and Japan.
Equity Capit
al Mar k ets
– A globalpr ov ider of pr imar y equity
pr oducts lik e IPOs, block tr adesand r ights issues and innov ator innew pr oduct dev elopments.
m a p s i n t e r n a t i o n a l
. c o
. u k
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GLOBAL BANKING continued
Leveraged Debt Capital Markets – This team uses
innovative and complex structures to supply
finance to organizations with limited access to
traditional capital markets. DeutscheBank has been involved in more
high yield new issuance than
any of its competitors over the
last six years (Source:
Thomson Financial, 2001-
2007 YTD) and is a leader in
jumbo leveraged buyouts.
Mergers & Acquisitions
(M&A
) –
Buying anoth
erfirm is a critical moment in
any company’s development and they are willing
to pay high fees for high-quality advice on the
choice of financing options available. Deutsche
Bank’s M&A bankers have the ability to enable
their clients to achieve their strategic objectives as
they can place the most powerful product platform
and network of relationships at their service.
Within the Transaction Banking section of Global
Banking, services relating to the movement ofcash and securities have been split into three
main areas:
Cash Management – Large corporates often have
thousands of bank accounts and hundreds of
banking partners. This can make it very hard to
keep track of (and use!) all of the cash within the
firm. The Cash Management team provides
services to help consolidate cashflows and invest
them short-term to maximize liquidity.
Trade Finance – This team offers comprehensive
solutions along the client’s trade value chain by
combining international trade risk mitigation
products and services with custom-made
solutions for structured trade and export finance.
With Deutsche Bank as a trading partner, clients
can seamlessly manage documentary collections,
letters of credit and trade guarantees alongside
their risk management and structured export
finance. The Trade Finance team uses industry-
leading technology across its global network
to increase the efficiency of cross-border
trading.
Trust & Securities Services – This team looks
after the administration of securities
transactions once they're closed. Clients are
either the issuers of
stocks and bonds or theasset managers who buy them and require
them to be held securely. This group also
maintains relationships with investment
bankers, lawyers, rating agencies and other
third parties.
Capital Market Sales – This team provides
clients with asset, liability and risk management
solutions across a wide range of different
asset classes, such as foreign exchange,
interest rates, equities, commodities and credit.
“You need to be dr iven andambitious. You have to be abl e towor k with l ots of dif f er entpeopl e inter nall y and ex ter nal ly –
and be pr epar ed to tr avel and wor k with dif f er entcultur es. As l ong as y ouar e har d wor k ing,
analy tical and smar t,y ou’ ll go f ar .”
“Our relationship with
the Global Markets tea m
is really interesting.
We can ask the m for
infor m ation on the
m arket, but they can’t
ask us for infor m ation
on deals because
of client
confidentiality.”
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GLOBAL MARKETS
WHAT DOES THE GLOBAL MARKETS DIVISION DO?
Global Markets is what most people think ofas investment banking (along with corporatefinance). Although until relatively recentlymany roles dealing in the capital and moneymarkets were performed by smallerspecialist institutions.
The trading floor has also changed dramatically in recent years, with phones,then computers gradually replacing openoutcry trading in most markets. However it still performs the same function – tradersbuying and selling financial instruments (e.g. equities and bonds) with the aim ofturning a profit either directly for the bank orfor clients (with the bank earning commission).
Investors deal in the markets for a number ofreasons: as well as those that deal for theshort term (using their market expertise to‘beat the market’) and the long term (‘buy andstick’ investors who wish to achieve a returnover a given period), many also trade as partof a risk management strategy (dealing inparticular instruments to offset a predictedfinancial risk). As such, clients may includeasset managers, hedge funds, other banks,
mortgage institutions and corporates.
The pace of life is infamous; those that workon the trading floor need that legendarystamina to think and act as quickly as requiredthroughout their day.
W HAT ROLES ARE T HERE IN GLOBALMARK ET S?
Global Mar k et s is split up int o desk s cov er ingspecif ic mar k et s and r egions. T her e ar edif f er ent r oles but all r ev olv e ar oundpr esent ing and ex ecut ing new inv est ment oppor t unit ies t o client s:
SALESSales is r esponsible f or mak ing sur e t hat client s ar e of f er ed oppor t unit ies and t r adingst r at egies t hr ough liaising w it
h t he t r ader s andr esear cher s on w hat t hey hav e on t heir book sand t heir k now ledge of t he mar k et . Sales isalso r esponsible f or r aising capit al on behalf of companies and gov er nment s by placing t heir new ly issued bonds and shar es w it h inv est or s.
T RADING T r ader s mak e pr ices, book t r ades and manager isk on behalf of client s. T hey gener ally liaisew it h t he sales t eam on t heir desk
t o under st andw hat client s w ant , w hat ideas Sales andResear ch ar e pushing t o client s and w het her t hese ar e r ealist ic accor ding t o mar k et pr ices.
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RESEARCH
Depending on the desk, researchers are of ten
clien t facing wi th Sales, presen ting their
research and ideas on how differen t marke ts
will perform. This migh t include anal ysis of a
compan y or indus tr y sec tor’s financial
performance, or an opinion on the Gross
Domes tic Produc t (GDP) grow th prospec ts of a
par ticular coun tr y.
STRUCTURING
These are the people who crea te the more
complex, over- the-coun ter ins trumen ts, the y
have their own desks and in terface with clien ts.
There are hundreds of trading desks globall y
in large inves tmen t banks, bu t the y can be
spli t in to some ke y areas:
EQUIT Y
These desks handle inves tmen ts in various
companies across the world. Inves tors
t ypicall y bu y and sell equi t y in companies
based on expec ta tions of future profitabilit y.
The Research function pla ys an impor tant par t:
anal ys ts examine compan y performance,
inves tiga te indus tr y trends and scru tinize an y
issues impac ting the companies’ finances.
Traders pa y close a tten tion to resul ts
s ta temen ts, bu t an y informa tion tha t could
affec t fu ture financial performance of a
compan y will resul t in swif t bu ying or selling
ac tivi t y. If the news impac ts a large firm or
group of firms, the Dow Jones or FTSE 100
ma y also fluc tua te in response.
DE BT Al so k now n a
s f i x ed i ncome, many bank s buy and sel l debt ( t y pi cal l y bonds ) i ssued by gov er nment s, i nst i t ut i ons and cor por at es.Or gani z at i ons i ssue debt i nst r ument s i n or der
t o secur e f unds f or a f i x ed t er m, per haps 5-10y ear s. I nv est or s buy bonds f or t he r egul ar i nt er est pay ment s t hey r ecei v e bef or e ani nst r ument mat ur es and t he debt i s r epai d.Debt i s somet i mes consi der ed l ess f ast -pacedt han equi t i es due t o a hi gher pr opor t i on of l onger -t er m i nv e
st or s.
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“It’s not all about
m aking i m m ediate
trading decisions at
a fast pace – I’ m on
a flo w desk and so m e
of m y trade ideas
m ight be for six m onths or t wo years
in debt m arkets.”
GLOBAL MARKETS continued
MONEY MARKETS & FOREIGN EXCHANGE
Money market desks typically lend and borrow
large amounts for very short-term periods(usually from a day to three months). Trading
in foreign exchange (FX) also varies according
to the time horizon. Banks do
provide currency to clients for
immediate use (the spot
market), but most currency is
bought and sold for future
needs. Typically, clients want
to buy currency at a
guaranteed price, say, sixmonths in the future, in order to
meet a financial commitment in this
currency (e.g. a payment to a supplier). Clients
use FX to offset risk, but banks trade for profit.
DERIVATIVES
These are complex instruments based on the
performance of an underlying asset, e.g. debt
or equity. For example, you may want to buy
100 Company X shares, but current markettrends mean that share price will likely rise in
6 months, so you buy the option (not an
obligation) to purchase them in 6 months’
time at the current price. If you’re wrong, you
don’t have to buy the shares; you simply sell
the option.
Derivatives are a way of dealing in a particular
financial instrument in the future under
specific circumstances, so they are often used to manage risk. One high-profile example
is the credit derivative. These instruments are
a kind of insurance policy that allows financial
institutions to offset the risks of lending
(i.e. extending credit) to corporate clients. A
bank might buy a credit derivative that permits
it to sell on its exposure to a borrower in
specific circumstances.
More complex still are structured products–derivatives based on multiple, market factors.
E.g. an investor might use a structured
product to protect its investment in a
wheat producing firm against the multiplefactors affecting the price of the grain,
such as oil prices, currency market
movements, global warming and local
production costs. These instruments are
often tailored to very specific needs and as
such require a detailed knowledge of
market dynamics and risk modeling to
make the structured product attractive to
the client and profitable for the bank.
“Becoming a trader is alifesty le choice – y ou have to
work hard and play hard, true
despite being a cliché! I do
have trading screens set up at
home, but my work is so
interesting I like to have
access to the markets
whenever I want.”
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WHAT IS THE GRADUATE PROGRAM LIKE?
E v e r yo n e a tt e nd s a gl o b a l cl a ss r oo m t r a ining p r o g r a m , thi s e quip s yo u w ith th e
b a s ic s yo u ’ ll n ee d o n th e t r a ding f l oo r a nd yo u m ee t yo u r f utu r e c o ll ea gu e s f r o m
th e o th e r r e gi o n s . Mos t g r a d s g o int o a g e n e r a li s t p oo l w h e r e yo u r o t a t e in di ff e r e nt
a r ea s ( p r o duct s li ke c r e dit , c o mm o diti e s , r a t e s; a nd f uncti o n s li ke s a l e s , t r a ding ,r e s ea r ch a nd s t r uctu r ing ) b e f o r e d e ciding o n a p e r m a n e nt h o m e . I f yo u ’ r e hi r e d t o
a s p e ci f ic d e s k yo u ’ ll a l so h a v e th e o pp o r tunit y t o r o t a t e in so m e r e l e v a nt a r ea s .
LIFE AS AN ANALYST
G l o b a l M a r ke t s i s a t o ugh e n v i r o nm e nt a nd r e qui r e s a n in s a ti a bl e a pp e tit e t o l ea r n .
I n th e f i r s t y ea r th e d e m a nd s m a d e o n g r a du a t e s a r e g r ea t a nd yo u w ill b e w o r k ing
l o ng h o u r s in a high s t r e ss e n v i r o nm e nt ( th e r e i s a l o t a t s t ake ! ) – a ll di ff icult
ci r cum s t a nc e s in w hich t o l ea r n th e r o p e s . As a t r a d e r , yo u w ill b e gi v e n yo u r o w n
p o r t f o li o t o t r a d e , but yo u w o n ’ t b e put in ch a r g e o f a $5 billi o n b oo k s t r a ight a w a y .
Lea r ning i s c o ntinu o u s but ch oos e yo u r tim e t o a s k qu e s ti o n s c a r e f ull y; tim e i s th e s c a r c e s t c o mm o dit y o n th e t r a ding f l oo r .
I f yo u h a t e g e tting up ea r l y , thi s might n o t b e th e c a r ee r f o r yo u . T r a ding r e qui r e s yo u t o
b e in b e f o r e th e m a r ke t s o p e n a nd thi s m ea n s yo u c a n b e a t w o r k f o r 12 h o u r s a d a y s t a r ting a t
6 .30 a m . R e s ea r ch a nd s a l e s a n a l ys t s w o r k t o d ea dlin e s a nd th e p r e ss u r e i s high . Y o u m a y e v e n
b e t e mpt e d t o kee p a n e y e o n m a r ke t m ov e m e nt s ov e r th e w eeke nd .
T h e r e a r e ch a ll e ng e s w o r k ing w ith yo u r int e r n a l c o ll ea gu e s a s w e ll . R e s ea r ch e r s c a n b e
f r u s t r a t e d a t cli e nt s n o t bu y ing int o th e i r id ea s , a nd S a l e s c a n f ind it di ff icult i f th e y c a n ’ t g e t
w h a t th e i r cli e nt w a nt s b e c a u s e m a r ke t ci r cum s t a nc e s m ea n th e t r a d e r i s un a bl e t o d o th e d ea l .
SO, IS GLOBAL MARKETS FOR YOU?
M a n y t r a d e r s a nd s a l e s p e o pl e h a v e bu s in e ss o r e c o n o mic s r e l a t e d d e g r ee s , but th e r e a r e
a l o t o f hum a niti e s g r a du a t e s t oo . I f yo u li ke th e so und o f th e s t r uctu r e d p r o duct s d e s k ,
yo u w ill h a v e t o b e a kee n m a th e m a tici a n . But m os t imp o r t a nt i s a ttitud e : yo u mu s t b e
quic k t o l ea r n a nd e nthu s i a s tic in o r d e r t o m ake a g oo d imp a ct du r ing yo u r int e r n s hip o r
g r a du a t e p r o g r a m .
DO YOU WANT TO...
• W o r k in a d e m a nding e n v i r o nm e nt
• Lea r n f r o m highl y s k ill e d c o ll ea gu e s
• D ea l in f in a nci a l in s t r um e nt s w o r th $milli o n s
• C r ea t e c o mpl e x , cutting e dg e
in v e s tm e nt id ea s
• P l a y a p a r t in a ff e cting th e
w a y m a r ke t s b e h a v e
BUT BEWARE...
• T h e h o u r s a r e o f t e n l o ng w ith
ea r l y s t a r t s
• I t i s h e ctic o n th e t r a ding f l oo r
• Y o u h a v e t o b e c o n f id e nt , a ss e r ti v e a nd
quic k t o l ea r n
• Y o u n ee d t o b e a n a ll - r o und e r : int e ll e ctu a l ,
so ci a bl e a nd thic k - s k inn e d !
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HUMAN RESOURCES
WHAT DOES THE
HUMAN RESOURCES (HR) DIVISION DO?
The banking industry is highly competitive.
The key to a bank’s success is having the best
people. HR partners with the different business
areas to hire,motivate and retain the best
talent. But you may not be aware just how
sophisticated and varied the HR role within
banking has become.
WHAT ROLES ARE THERE IN HR?
The roles within HR are pretty diverse. There is
room for both generalists and specialists.
HR covers:
• Advisory – relationship managers who advise a
designated division of the bank, they manage
issues such as change management, strategic
planning, compensation reviews, leadership,
career development and employee relations.
• Diversity – help make the bank truly diverse
by supporting groups through community
outreach and employee networks.
• Compensation – design and deliver
employee compensation and benefit systems
that can be applied across all functions of
the bank around the world. They also handle
international projects and assignments,
advise on issues like tax and immigration –
and of course they also make sure we
get paid!
• Resourcing – responsible for the overall
design and strategic direction of the
employer brand, recruiting and workforce
management.
• Development – design and deliver a
curriculum that covers the skills that people
need to develop in their role and reach their
full potential, as well as tailored and
specifically designed innovative solutions for
business teams.
• Management Information Systems – provide
analysis on employee data, produceanalytical reports to support decisions on
the future of the Deutsche Bank workforce.
“I was surprised at
the opportunities available
to take part in interesting,
important projects that really
make a difference to the
bank.”
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GROUP TECHNOLOGY
& OPERATIONS
WHAT DO TECHNOLOGY &
OPERATIONS PEOPLE DO?
Technology and operations form the backbone
of Deutsche Bank, managing all infrastructure
and IT requirements. Today’s financial
services industry is characterized by evermore complex trading methodologies and
instruments, and growing legislation and
regulation; all coupled with a need to reduce
cost and risk, while improving client service.
Having the right technology and infrastructure
in place is key to banks meeting these
challenges and gaining and
maintaining that all
important competitive
edge.
WHAT DOES TECHNOLOGY DO?
Technology has allowed Deutsche Bank to
become one of the largest global competitors
in the financial markets.
As the pace of change has increased,
technology has allowed us to not only stayleaders in markets where margins have been
squeezed but also to compete in markets
where millisecond execution times are critical.
The face of Deutsche Bank’s technology team
is also rapidly changing as we leverage the
skills of a global workforce. Technology is no
longer a place where programmers work in
isolation but one where communication and
innovation allow us to provide an unbeatable
service to our clients.
WHAT DOES OPERATIONS DO?
The popular image of investment
banking is one of slick, fast-
moving dealmakers. But dealscan only work if the right
processes and people are in place to
back up the deal making.
That’s why Operations is often described as
the engine room of the bank. It’s a fast-
paced and diverse division that makes
sure trades are settled, risk is minimized
and clients are satisfied; and that’s just
the star
t.
22
Operations is the backbone of the
business. Without us, the rest of
the organization wouldn’t be able
to stand up properly!
“
”
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24
L EGAL, R IS K
& CAP I TAL
W HA T DO E S T H E L EGA L
, R I S K &
CA P I TA L D I V I S IO N DO ?
E ve r y compan y in e ve r y indus t r y mus t manage
t he r is ks to t he i r bus iness. Bu
t some r is ks a re
d is t inc t to in ves tmen t ban ks. C re
d i t losses,
vo la t i l i t y o f ma r ke t p r ices, l iqu id i t y s ho r tag
es,
and regu la to r y and lega l ma t te rs can a l l h
a ve
an impac t on a ban k ’s cap i ta l and
repu ta t ion.
Fo r Deu tsc he Ban k to gene ra te re venue and
ma ke a p ro f i t, cap i ta l needs to
be used and
r is k ta ken. T he re is no re wa rd (p ro f i t ) w i t
hou t
r is k. Ho we ve r, i t is c r i t ica l to ba lance t
he
r is k / re wa rd equa t ion aga ins t a ban k ’s capac i t y
to a bso r b t he do wns ide to r is k ( t
rad ing and
lend ing losses ). Deu tsc he Ba
n k a lso s t r i ves to
ma in ta in i ts repu ta t ion as a lea
d ing p ro v ide r o f
f inanc ia l so lu t ions. T hese a re
t he u l t ima te
o bjec t i ves o f Lega l,
R is k & Cap i ta l (L
RC ).
WHAT ROLES ARE THERE IN LRC?
There are five distinct hiring streams:
CHIEF OPERATING OFFICE
The Chief Operating Office is responsible for the
control and management of all credit data across
Deutsche Bank globally. Its remit also includes the
management of headcount, costs, and
outsourcing projects across LRC. It also provides
operational support functions within the division.
These functions include business management,
communications and credit and market operations.
COMPLIANCEFailure to comply with the regulations can cost
a bank its business. That’s why Compliance’s
work of identifying and managing regulatory
risks is so critical. Compliance advances lawful
and ethical business conduct and prevents and
detects violations of law, helping to protect and
maintain Deutsche Bank’s integrity and
reputation.
CREDIT RISK MANAGEMENT
Credit Risk Management (CRM) is the independent
credit approval and monitoring function for the
whole of Deutsche Bank. CRM represents
Deutsche Bank’s centre of competence for all
counterparty risk related matters. The division
uses its expert local knowledge from around the
globe to maximize Deutsche Bank’s risk-adjusted
rate of return. It provides structuring advice and
credit approval on transactions, manages the
credit exposure of Deutsche Bank’s derivative
and foreign exchange portfolios, actively ensures
the recovery of impaired loans and makes sure
that the global risk and management reporting
systems are timely and accurate.
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25
perform the complex risk analyses that are
crucial to inform their business decisions.
Investment Risk Management (IRM) looks at all
risk-related aspects of potential acquisitions
and is res
ponsible for ov
ersee
ing the int
egration
of their risk processes. IRM also reviews
Deutsche Bank’s principal investments. These
include, for example, when the bank takes an
equity stake in a company or project that it has
been involved in from an advisory perspective.
Treasury & Capital Management (TCM) is
responsible for the capital, liquidity, and
balance sheet of Deutsche Bank on a global,
regional, and local basis. TCM manages these
resources with a view towards shareholder and
bondholder value, as well as regulatory
requirements and other external influences.
OPERATIONAL RISK MANAGEMENT AND
CORPORATE SECURITY & BUSINESS CONTINUITY
Threa
tsas div
erse as product li
abiliti
es,
information security, IT system failure, frauds,
and even natural disasters fall within the
remit of Operational Risk Management.
The division raises awareness of these
threats, performs value adding analysis, and
sets and monitors loss and capital targets
used within Deutsche Bank.
Corporate Security & Business Continuity
ensures Deutsche Bank’s critical businesses,
data, and functions can recover after an adverse
event, and provides rigorous assessment of the
global security situation and business-specific
risks. It applies a fully integrated approach to
risk intelligence gathering, staff safety, threat
analysis, and application of protection measures.
MA R K E T R I S K MA NAG E M E N T, I N V E S T M E N T
R I S K MA NAG E M E N T, A N D T R EA S
U R Y
& CA P I TA L MA NAG E M E N T
Ma r ke t R i s k Managemen t ( M R M ) ana l y se s an
d
agg rega te s ma r ke t r i s k, to
en su re Deu t sc he
Ban k op t im i ze s i t s r i s k- re
wa rd re la t ion s h ip
and i s no t e xpo sed to unaccep ta b le l
o s se s.
M R M ha s a s t rong focu s on t he
ac t i v i t y on t he
dea l ing f loo r s and wo r k s
c lo se l y w i t h, and on
be ha l f o f, t rade r s and sen
io r manage r s to
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WHA T IS THE GRADUA TE PROGRAM LIKE
?
T h e n at u r e o f t h e w o r k an d t h e s k i l l s r eq u i r ed ar e d i f f er en t d ep en d i n g o n t h e d
i f f er en t s t r eam y o u w o r k i n .
Y o u s h o u l d k n o w w h i c h ar ea y o u w an t t o g o i n t o b ef o r e y o u ap p l y . Al l ar eas h av e t h ei r o w n t ai l o r - mad e
p r o g r ams t h
at p r o v i d e ex p o s u r e t o a v ar i et y o f b u s i n es s es , as w el l as t h e o p p o r t u n i t y t
o c o mp l et e an
i n t er n at i o n al r o t at i o n .
26
LIFE AS AN ANAL YS T
W i t h s o man y d i s t i n c t ar eas , l i f e as an an al y s t w i t h i n LR C v ar i es w i d el y . Y o u c o u l d b e man ag i n g a c l i en t
p o r t f o l i o t h at en t ai l s d ai l y mo n i t o r i n g o f i n d u s t r i es an
d f i n an c i al p er f o r man c e, o r an al y z i n g t h e r i s k s t ak en b y
t r ad i n g d es k s an d t h e i mp ac t o f d ay - t o - d ay mar k et mo v emen t s o n D eu t s c h e B an k ’ s ex p o s u r e.
Y o u m i g h t f i n d y o u r s e l f e v a l u a t i n g t h e b a n k ’ s a c q u i s i ti o n s , b o t h p o t
e n t i a l a n d a c t u a l , a n d t h e i r i m p l e m e n t a t i o n ,
o r r e v i e w i n g s e cu r i t y r i s k s w i th in a p a r t i c u l a r l y h o s t i l e c o u n t r y a n d e n s u r i n g t h a t a n y s t a ff m e m b e r s v i s it i n g
t h i s c o u n t r y a r e a w a r e o f th e s i tu a t i o n .
Al t e r n a t i v e l y , y o u c o u l d b e c o n d u c t in g a d e t a i l e d a n a l y s i s t o i d e n t i f y t h e b a n k ’ s k e y s y s t e m s , a n d e n s u r e
a p p r o p r i a t e p r o c e d u r e s a r e i n p l a c e t o a l l o w o p
e r a t i o n s t o
b e s w i t c h e d s e a m l e s s l y i n t h e e v e n t o f a p o w e r
o u t a g e o r e v a c u a t i o n . Y o u c o u ld a l s o b e r e s p o n s i b l e f o r a d d r e s s i n g r e g u l a t o r y r u l e c h a n g e s o r i n v e s t i g a t i o n s
t h a t c o u l d r e s u l t in n e w o r e n h a n c e d c o n t r o l s f o r D e u t s c h e B a n k .
W h ic h e v e r LRC f u n c ti o n y o u ’ r e in , y o u w i ll b e w o r k in g cl o s e l y w i th n u m e r o u s o th e r p a r t s o f t h e o r g a n i za ti o n a nd w il l g e t a g o o d g r o u nd in g i n h o w t h e w h o l e b a n k w o r k s t o g e t h e r .
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“I have been presentedw ith
m ultiple careeropportunities since Ijoined LRC. A fter sixm onths into the program ,I’ve gained exposure to ahuge variety of corporates,banks, sovereigns, fundsand securitizations.”
27
“LRC is a great m ix of the
big and the s m all world, a
m elting pot of corporate
finance and econo m ics. Youneed to kno w the s m all
world, kno wing your
counterparty in detail, but
also the big picture such as
m acroecono m ics.”
SO, IS LEGAL, RISK & CAPITAL FOR YOU?
Alt h o u g h y o u d o n ’ t n e e d t o b e a m a t h e m a ti c a l g e n i u s f o r a l l t h e r o l e s , a p a s s i o n f o r n u m b e r s a n d a n
a n a l y ti c a l m in d h e l p s . LR C a p p e a l s t o h u m a n i ti e s g r a d u a t e s t o o – b e c a u s e y o u ’ ll b e l o o k i n g a t w i d e r i s s u e s
in c o m p a n i e s a n d m a r k e t s t h a t a f f e c t t r a d in g . G o o d p e o p l e s k il l s a r e e s s e n t i a l a n d s e c o n d l a n g u a g e s a r e a
b o n u s b e c a u s e o f t h e i n t e r n a t i o n a l n a t u r e o f t h e r o l e s .
LR C i s a n ‘ a r t , a s w e l l a s a s c i e n c e ’ . C o m m o n s e n s e a n d m a r k e t i n t u i ti o n i s n e e d e d j u s t a s m u c h a s
a n a l y ti c a l a b il i t y .
BUT BEW ARE...
• Y o u m i g h t h a v e o n l y a s m a l l i n f l u e n c e o n b i g d e c i s i o n s a s a g r a d u a t e • Y o u w i l l d e a l w i t h d e m a n d i n g c l i e n t s • T h e r e c a n b e a l o t o f p a p e r a n d d a t a b a s e w o r k • H o u r s c a n b e l o n g
DO YOU WANT TO...
• B e p a r t o f a f a s t - p a c e d , g l o b a l t e a m ?
• B e a t th e c o r e o f t h e b a n k ’ s b u s in e s s ?
• G e t a n i n - d e p th u n d e r s t a n d in g o f c o m p l e x m a r k e t s ?
• G e t a c l o s e v i e w o f c li e n t s ’ f in a n c e s a n d s t r a t e g i e s ?
• H a v e a f u n d a m e n t a l u n d e r s t a n d in g o f t h e b a n k ’ s
p r o c e s s e s a n d a s s o c i a t e d r i s k s ?
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“My internship w asinvaluable. They w erereally im pressed w ith m y initiative, plus itm eant I already had a realundersta
nding of how m y division w orks on a practical level and w hat I w anted to do.”RESEARCH THE INDUS TR Y AND
FIRM
H av in g an u n d e r s t an d i n g o f t h e f in an c i al
p l ay e r s i s ad v i s ab l e an d y o u s h o u ld at l e as t
k n o w t h e e s s e n t i al s ab o u t D e u t s c h e B an k –
e s p e c i al l y t h e ar e a y o u ar e ap p l y i n g t o .
ATTEND EV ENTS
At t e n d a n c e a t r e c r u i t m e n t e v e n t s w i l l h e l p y o u g a i n a b e t t e r u n d e r s t a n d in g o f t h e w o r ld y o u a r e a b o u t t o e n t e r a n d h o w i t w o r k s . I t w i l l a l s o g i v e y o u a g o o d i d e a a b o u t t h e p e o p l e y o u w il l w o r k w i t h . H e l p f u l t i p s a n d t e c h n i q u e s f r o m r e c r u it e r s w i l l b e a v a il a b l e , a s w e l l a s g r e a t o p p o r t u n i t i e s t o n e t w o r k w i t h r e p r e s e n t a t i v e s f r o m t h e b u s i n e s s d i v i s i o n s – w h o y o u c a n l a t e r
m e n t i o n o n y o u r a p p l i c a t i o n f o r m .
BE PREPARED
N o t o n l y f o r t h e q u e s t i o n s a t t h e i n t e r v i e w s t a g e b u t f o r y o u r f u t u r e l i f e s t y l e . A f e w l a t e n i g h t s a n d h e a v y s c h e d u l e s m a y b e a h e a d .
ASK QUES TIONS
T al k t o f e l l o w g r ad u at e s an d y o u r u n i v e r s i t y
al u m n i ab o u t w h at a c ar e e r in an i n v e s t m e n t
b an k i s r e al l y l i k e . T al k i n g t o p e o p l e at an e ar l y
s t ag e c an h e l p y o u r r e s e ar c h p r o c e s s an d
h o p e f u l l y y o u r d e c i s i o n p r o c e s s .
WORKING THE PROCESS
AND TOP TIPS
First and foremost, you need to have a realinterest in this field; the process is rigorous, the
work is challenging. If you’re only interested in
the financial rewards, this is not the right
industry for you.
PREPARATION IS THE NEXT STEP TO SUCCESS
As analysts, we know
what a daunting task
it can be to make asuccessful application.
So to help you have the best
possible chance of getting
through the application
and interview process,
here are some practical
steps you can take:
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COMPLETING THE APPLICATION FORM
As w i t h r e s u m e s o r C V s , a b a d l y w r it t e n a p p li c a ti o n f o r m w i ll n o t g e t a s e c o n d g l a n c e . T h i s i s a n
im p o r t a n t s t a g e o f t h e r e c r u it m e n t p r o c e s s . B e s u r e t o p u t e ff o r t in t o p r o d u c i n g s o m e t h i n g o f h ig h q u a li t y .
T r y t o h ig h li g h t t h r o u g h o u t y o u r a p p l i c a t i o n , w it h e x a m p l e s , w h a t y o u r t a l e n t s a r e , f o r i n s t a n c e t e a m w o r k ,
a t t e n t i o n t o d e t a il , d r i v e , p r o b l e m s o l v i n g , c o m m u n i c a t i o n s k il l s e t c .
Al l D e u t s c h e B a n k a p p l ic a t i o n s a r e m a d e o n l in e , a n d w il l t a k e a n y w h e r e f r o m 15 t o 6 0 m in u t e s t o
c o m p l e t e d e p e n d i n g o n t h e c o u n t r y y o u a r e a p p l y i n g t o . I t i s a g o o d i d e a t o p r i n t t h i s o u t t o b e g in w i t h
a n d w r i t e a r o u g h v e r s i o n b e f o r e y o u s u b m it t h e f i n a l v e r s i o n . G e t s o m e o n e t o c h e c k it b e f o r e y o u s u b m i t
i t ; y o u r c a r e e r s s e r v ic e m a y o f f e r t o h e l p w it h th i s . M a k e s u r e y o u d o a s p e l l c h e c k t o o – o n c e s u b m i t t e d
y o u r a p p l i c a t i o n c a n n o t b e c h a n g e d .
C h e c k t h e D e u t s c h e B a n k w e b s i t e o r y o u r c a r e e r s s e r v i c e o ff ic e f o r a p p li c a ti o n d e a d l i n e s . W e s t r o n g l y
r e c o m m e n d y o u a p p l y e a r l y b e c a u s e i n s o m e r e g i o n s w e in t e r v i e w o n a r o l li n g b a s i s t h r o u g h o u t t h e
r e c r u i t m e n t p e r i o d , s o t h e e a r li e r o n y o u a r e i n t h e p r o c e s s th e m o r e p o s i ti o n s w il l b e a v a il a b l e .
BE FOCUSED
S h o w an d p r o v e y o u r en t h u s i as m f o r y o u r f u t u r e
c ar eer , t h i s w i l l mak e y o u s h i n e.
GET EX P ERIENCET h e m o r e e x p e r i e n c e a n d k n o w l e d g e y o u h a v e ,t h e b e t t e r y o u r c h a n c e s , a n y w o r k e x p e r i e n c e c a n b e r e l e v a n t i f y o u h i g h l i g
h t w h y i t r e l a t e s t o y o u r a p p l i c a t i o n . A l s o , a s u m m e r i n t e r n s h i p i s a n a d v a n t a g e .
ATTENDING INTERV IEWS
D o u b l e c h e c k t h e d a t e , t im e a n d v e n u e : a r r i v e i n p l e n t y o f t i m e , t u r n i n g u p l a t e a l w a y s l o o k s b a d a n d w i l l l e a v e y o u f e e l i n g f l u s t e r e d a n d u n p r e p a r e d .W e a r a s u i t : b u s in e s s a t t i r e i s a l w a y s a s a f e b e t , m a k e s u r e y o u h a v e a w e l l i r o n e
d s h i r
t a n d c l e a n s h i n y s h o e s .S m i l e : w h e n y o u m e e t y o u r i n t e r v i e w e r a n d g i v e a f i r m h a n d s h a k e .B e c o n f i d e n t a n d e n t h u s i a s t i c : y o u n e e d t o s e l l y o u r s e l f – b u t d o n ’ t b e a r r o g a n t , n o o n e w a n t s t o w o r k w i t h a s h o w o f f .
H a v e s o m e q u e s t i o n s p r e p a r e d : a s k a b o u t t h e b a n k , t h e d i v i s i o n o r t h e p r o g r a m – q u e s t i o n s a b o u t s a l a r y a r e n o t a d v i s a b l e a t t h i s s t a g e .T a k e y o u r t i m e t o a n s w e r q u e s t i o n s : y o u r i n t e r v i e w e r i s a s s e s s i n g y o u r a n a l y t i c a l t h o u g h t p r o c e s s e s , l o n g r a m b l i n g a n s w e r s w i l l n o t d o y o u a n y f a v o r s .M u c h m o r e i n f o r m a t i o n o n t h e g r a d u a t e p r o g r a m a n d i n t e r n s h i p s a t D e u t s c h e B a n k , a s w e l l a s t h e o n l in e a p p l ic a t i o n , c a n b e f o u n d a t w w w .d b .c o m / c a r e e r s
G o o d l u c k o n t h e r o a d t o a c a r e e r i n b a n k i n g !
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PROPRIETARY TRADING
W h e n a b a n k t r a d e s in th e f in a nci a l m a r ke t s w ith it s o w n
c a pit a l t o m ake m o r e m o n e y f o r th e bu s in e ss
PUT OPTION
T h e r ight t o s e ll s h a r e s a t a n a g r ee d p r ic e o n a f utu r e d a t e
( s ee c a ll o pti o n )
RIGHTS ISSUE
T h e i ss u e o f e quit y t o cu rr e nt s h a r e h o ld e r s in o r d e r t o
r a i s e c a pit a l f o r th e c o mp a n y
RISK MANAGEMENT
T h e m ea s u r e m e nt o f th e p oss ibilit y o f l os ing o r n o t g a ining
v a lu e a nd s t r uctu r ing r i s k s a t a n o ptim a l r i s k / r e w a r d r a ti o
SARBANES OXLEY (SOX)T h e S a r b a n e s O x l e y Act ( J ul y 2002 ) int r o duc e d a s e r i e s o f
c o r p o r a t e r e f o r m s in a n a tt e mpt t o r e s t o r e in v e s t o r c o n f id e nc e a nd p r e - e mpt f utu r e c o r p o r a t e s c a nd a l s
SECURITIES
C o ll e cti v e n o un f o r b o nd s a nd s h a r e s
SECURITIES EXCHANGE COMMISSION (SEC)U S r e gul a t o r y b o d y f o r th e f in a nci a l s e r v ic e s indu s t r y
SECURITIZATION
A f in a nci a l t e chniqu e th a t p oo l s a ss e t s t o g e th e r a nd , in
e ff e ct , tu r n s th e m int o a t r a d a bl e s e cu r it y
SELL SIDEU s e d t o d e s c r ib e b r o ke r s w h o s e ll s e cu r iti e s t o cu s t o m e r s
a nd th e r e s ea r ch d e p a r tm e nt s o f b o ke r a g e f i r m s th a t
m ake r e c o mm e nd a ti o n s t o th e i r cli e nt e l e . S ee a l so Bu y S id e
SETTLEMENT
T r i a l s t a g e o f a t r a n s a cti o n a f t e r cl ea r ing . I n vo l v e s m ak ing
p a y m e nt a nd t r a n s f e r ing o w n e r s hip / d o cum e nt a ti o n
SHARESA c e r ti f ic a t e i ss u e d b y a c o mp a n y f o r g e n e r a l pu r ch a s e
e ntitling th e h o ld e r t o o w n e r s hip r ight s including di v id e nd s f r o m a n y p r o f it s th e c o mp a n y m a y m ake
SPREADT h e di ff e r e nc e b e t w ee n th e p r ic e a t w hich a f in a nci a l
in s tituti o n w ill bu y a s e cu r it y a nd th e p r ic e a t w hich it
w ill s e ll
STOCKBROKER
T h os e w h o a d v i s e p e o pl e w h o w a nt t o bu y / s e ll s e cu r iti e s
STOCK
An o th e r w o r d f o r s h a r e s a nd e quiti e s
STRESS TEST
A t e s t u s e d b y r i s k m a n a g e r s t o s ee w h a t th e imp a ct
w o uld b e o n p a r ticul a r s t o c k s , c o mp a ni e s o r m a r ke t s in
e x t r e m e h y p o th e tic a l s c e n a r i os
STRUCTURED PRODUCTS
A t a il o r - m a d e in v e s tm e nt so luti o n c o mbining b o nd s w ith
o pti o n s o n e quiti e s a nd / o r o th e r a ss e t cl a ss e s , c r ea t e d
u s ing c o mpl e x m a th e m a tic a l m o d e ling t e chniqu e s
SWAP
T h e e x ch a ng e o f o n e a ss e t o r li a bilit y f o r a s imil a r a ss e t
o r li a bilit y f o r th e pu r p os e o f l e ngth e ning o r s h o r t e ning
m a tu r iti e s , o r r a i s ing o r l o w e r ing c o up o n r a t e s t o
m a x imi ze r e v e nu e o r minimi ze f in a ncing c os t s
TOMBSTONE
U s u a ll y Lucit e ( pl a s tic ) bl o c k s d e t a iling a cl os e d
t r a n s a cti o n th a t b a n ke r s c o ll e ct o n th e i r d e s k s t o s h o w
h o w s ucc e ss f ul th e y h a v e b ee n
TRADERP e r so n w h o bu ys a nd s e ll s in s t r um e nt s in th e f in a nci a l
m a r ke t s , a l so k n o w n a s th e s e ll s id e
TRADING A ‘BOOK’
An indi v idu a l t r a d e r ’ s t o t a l p os iti o n s in th e m a r ke t b o und
b y s p e ci f ic r i s k limit s
TRADING FLOOR
W h e r e a ll t r
a ding d
e s k s s it
w ithin
a n in v
e s tm
e nt b
a n k
UNDERWRITING
T h e gu a r a nt ee ( w hich i s o ff e r e d b y a b a n k in r e tu r n f o r a
f ee ) t o bu y o r t o f ind th e bu y e r s f o r a n e nti r e i ss u e o f
s t o c k s a nd s h a r e s
VALUE AT RISK (VAR)A m ea s u r e o f th e p o t e nti a l ch a ng e in th e p o r t f o li o v a lu e
f o r a gi v e n c o n f id e nc e int e r v a l a nd s p e ci f i e d tim e - h o r i z o n
F o r f u r th e r d e t a il s , s ee th e D e ut s ch e B a n k w e b s it e a nd
B ARRO N ’ s “ D icti o n
a r y o
f F in a nci
a l a nd
I n v
e s tm
e nt T
e r m s
”
www .db .c o m / c a r ee r s
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