Career Capital One

Research Analyst Today we're looking at Research roles within banks as well as the typical challenges Analysts face. We're shining a light on why it's difficult to mirror a high flier career as an Analyst in Research and how to make it to the top. play the long game, grab a significant sector, become an MD and have a relatively safe job on a large MD salary for many years. It’s an annuity game.  align yourself to revenue. This can be as a non publishing Analyst for a specific trading desk (desk analyst)  or you aim to be taken out by a client, either a Hedge fund or to work for a corporate client in IR. Why don’t you see Researchers in the headlines on big pay packages or mega deals?  Sales/Trading is measured by P&L with direct impact on a bank's revenue. Why is it that a great research report doesn’t flash similar $ for the Analyst as when a salesperson is closing a big trade? The answer is multifold: The research department typically services thousands of clients; its mandate is split towards wealth management, global market clients, investment banking and to some degree a bank’s global market trading and sales business. It’s impossible to pin the impact of a research report down to clear revenue generation. Regulations such as Chinese Walls and Mifid actively segregate research from direct revenue generation.  A simple example is an Analyst of bank X recommends to buy bonds of Apple. The bank's institutional clients like the idea and buy Apple bonds from the trader at bank X. The trader is now short Apple bonds (opposite recommendation of the research report). Assuming the researcher was right, the result will be that the bank’s trader loses money on the trade.  This illustrates very simplistic how difficult it is for banks to monetise research and hence it’s difficult for individuals in research to argue for pay packages on par with Sales/Trading.  The very opaque measure of revenue generated by great research allows banks to wiggle out of paying Analysts top dollars. Banks are experts in finding reasons why not to pay staff and in Research the nature of the business offers a thousand easy outs for the banks. This is why it’s important to actively plan and influence one’s career as a research analyst.  Identify the best path based on the institution and have a clear vision on where an individual can perform best within. Being promoted MD in Research is one of the toughest endeavors in the markets business.  Thinking outside the box and having a good understanding of opportunities at competitors and clients will round up the bigger picture. As always if you would like to know more about these topics please get in touch via www.careercapital.one or at matthias@careercapital.one

How is your employer training you? Are you an Analyst or Graduate in a big multinational finance organisation? A growing issue we've helped banking analysts and associates deal with is a lack of being taught well. Shockingly junior staff sits around not being challenged. The pandemic and remote work has worsened this but already before the pandemic the trend of negligence has pointed in a clear direction. Dealing with this as a junior can be very hard and can shake confidence in its own abilities dramatically. Seeing your peers overtaking you at lightspeed because your senior tasked with teaching you is not capable or willing to do so can be devastating to a young career.  We develop an individual approach to your problem, tailored to your chain of management and your particular situation. We work with you in how to tackle these challenges without being perceived as a problem employee. We give you the confidence to speak up with relevant points and without creating unintended consequences. As always if you would like to know more about these topics please get in touch via www.careercapital.one or at matthias@careercapital.one 

March Newsletter - The time to plant the seeds for a better bonus is NOW. https://careercapital.one/ The time to plant the seeds for a better bonus is NOW. You didn't bring your message across at last year's bonus conversation? You think you deserved more?  Don't wait until December before you take care of your most important business, start now.  One of the keys to leave your manager no choice but to give your good ratings and put in a high number in that famous spreadsheet is to start having relevant conversations in Q2 at the latest. A growing issue we've helped banking analysts and associates deal with is a lack of teaching. Shockingly many juniors sit around not being taught. The pandemic and remote work has worsened this but already before the pandemic the trend of negligence has pointed in a clear direction. Dealing with this as a junior can be very hard and can shake confidence in its own abilities dramatically. Seeing your peers overtaking you at lightspeed because your senior tasked with teaching you is not capable or willing to do so can be devastating to a young career. As always if you would like to know more about these topics please get in touch via www.careercapital.one or at matthias@careercapital.one 

best Dim Sum in the UK

What happens when you threaten to quit! Interesting article on Business Insider; however I dare to differ! If done in the right way and for good reasons it can be a great career booster. My own career had two or three key infliction points where the threat of leaving was part of the strategy and I've advised many others on how to use a competing offer to enhance ones progression and compensation. https://lnkd.in/eE8axJtf

November Newsletter - bullying and mental health problems The next four weeks is the last time you can influence your bonus via management conversation and making arguments to your boss. (for those organizations having the fiscal year end coincide with the calendar year end) My regular readers will know I strongly believe in this process to be an all year round effort. If you haven’t done so yet there is at least some time to have one or two relevant conversations. The majority of this month’ newsletter I want to spend on mental health and in particular bullying in the investment banking/markets world. This isn’t only applicable to Sell Side firms but increasingly the Buy Side experiences this phenomenon. Bullying almost always originates in bad management and bad managers. Either the manager is the bully or their management style (or lack thereof) allows others in the team to become a bully.  The investment banking, markets and fund manager world is a high paid high intensity environment where stress and pressure is normal and arguably that is why these jobs pay exceptionally well.  When the line gets crossed it’s almost always by a person with seniority or a person with management responsibility which makes it very difficult for individuals to tackle it. In my 20+ years of experience I have witnessed many reasons why someone becomes a bully, the most common one is incompetence followed by arrogance and a sense of entitlement.  Very rarely bullying is done for “sports” in this industry there is almost always an agenda if not intentionally then at least subconsciously. This ranges from getting additional business, responsibility, money (keep in mind bonuses are a zero sum game; what my colleagues get less i can get more) or keeping the threat down a rising star might pose to the bully and their career.  No situation is like another and every instance of bullying needs to be analyzed individually.  At CareerCapital we can help trying to look behind the reasoning and work on mitigating strategies. We can help prepare for manager conversations and help to form an opinion on whether to get HY involved or not.  The level of severity can range from an early stage feeling of unhappiness at work to constructive dismissal. We will offer support and advice on the business side of things and we have exceptional partners to support you via counseling, clinical psychiatry as well as some of the best employment lawyers.  Like with a physical disease it’s best to catch this early and eliminate the root cause. Unfortunately often people carry this burden with themselves for a long time and it not only affects their mental health but also their performance.  Like with everything feel free to reach out to us, we are happy to help or make referrals. Matthias

If you want to see a playback of my Q&A with the Editor of E-Financial on how to become a trader and who is suited to be in trading I have made the link available below https://lnkd.in/dmZrFXhM

I'm holding a Q&A session tomorrow at Efinancialcareers with the global editor Sarah Butcher. Tomorrow's topic is: "How to become a trader" aimed at students, interns and graduates. tune in.... https://lnkd.in/dmZrFXhM

September Newsletter - The Catfish An observation since we as CareerCapital have been more active on social media, is that we’ve encountered many Catfish offers around coaching. Not everything I’ve seen for sale is necessary without use or value, but if you have to take out a 10h package for 3k to then be given some online access to podcasts or a lesson to write better CV’s we feel that’s quite little for a lot of money. And even once you enter more tailored approaches what experience  do the coaches actually offer? And is it often not a very broad approach to very individual situations? The owner and main coach of one of the more prominent platforms in Germany has two internships at investment banks as the only relevant experience. I admire the entrepreneurial approach but are the paying customers really getting value for money?  To bang our drum a little we advise mostly VP/Director level staff at major investment firms, and we pride ourselves with the approach that interns/graduates benefit from very senior experience from the first billed hour. There is no blanket approach but only individual consultation. Each client has a specific ask of us. Every situation is different. Because of our broad source of actual experience at the center of Wall Street/The City we will have encountered your situation in one shape or form before, and we will be able to offer relevant views and perspectives.  In the end we want to enable our clients to make better and confident decisions themselves that speed up and enhance their career. Looking at the calendar the bonus season has started and managers will start trying to make the unworkable math work. Now is the time engage management and your support environment with lobbying on your behalf. Another key milestone is most major investment banks will open up the application process for summer interns and graduates for 2024 As always we at CareerCapital are here to help and guide you. please get in touch via email matthias@careercapital.com or the website www.careercapital.one or via linkedin