Value of CFA to BBs?
Whats the value of a CFA. Esp as a non-target school grad and someone working at a small firm, can the CFA help me crack the BB's or MM area? How about PE or HFs. I interned at a Fund of Funds, so I have some good contacts... thanks
" I interned at a Fund of Funds“
And there were no CFA's there?
The CFA is a well respected credential everywhere, but it is not a skillset directed correlated with investment banking. It's the "gold standard" for asset management/ equity research/Hedge funds and a required credential for one to advance in that field.
Nevertheless, many bankers try to earn it for the possible exit opportunities it provides. Its an impressive thing to earn b/c everyone knows how much studying it takes to pass the bitch.
There are CFA's here, but its always nice to get a fresh perspective. I'm in the south and things seem to be a little bit different here.
What type of BB job are you talking if you live in the south?
nah, i mean could it eventually get me into a BB in NY if I get the CFA
by the time you might obtain the CFA charter, you will already have a minimum of 4 years investment-related work experience.
This experience alone, if worthwhile, might get you into a good firm. If you also are a CFA charterholder, of course your opportunities are much more attractive.
" nah, i mean could it eventually get me into a BB in NY if I get the CFA"
A guy with a two year analyst stint will get the associate position over you. The CFA isn't that important in investment banking because most of the studies are focused on portfolio management and security analysis.
This is not true, studies are not focused in portfolio management (only at level 3 exam).
Though, you may figure it out for yourself - here is the entire list of what consitutes the CBOK
CFA Candidate Body of Knowledge (CBOK)
I. ETHICAL AND PROFESSIONAL STANDARDS A. Professional Standards of Practice B. Topical Issues
II. QUANTITATIVE METHODS A. Time Value of Money B. Basic Statistical Concepts C. Probability Concepts and Random Variables D. Common Probability Distributions E. Sampling and Estimation F. Statistical Inference and Hypothesis Testing G. Correlation Analysis and Linear Regression H. Multivariate Regression I. Time Series Analysis J. Portfolio Concepts
III. ECONOMICS A. Market Forces of Supply and Demand B. Elasticity C. The Firm and Industry Organization D. Supply and Demand for Productive Resources E. Measuring National Income F. Economic Fluctuations and Unemployment G. The Monetary System H. Inflation: Causes and Consequences I. International Trade J. International Finance K. The Macroeconomics of an Open Economy L. Aggregate Demand and Aggregate Supply M. Sources of Economic Growth N. Government Regulation O. Natural Resource Markets P. Relationship of Economic Activity to the Investment Process
IV. FINANCIAL STATEMENT ANALYSIS A. Financial Reporting System B. Principal Financial Statements C. Earnings Quality and Nonrecurring Items D. Analysis of Inventories E. Analysis of Long-Lived Assets F. Analysis of Income Taxes G. Analysis of Financing Liabilities H. Analysis of Leases I. Analysis of Off-Balance-Sheet Assets and Liabilities J. Analysis of Pensions, Stock Compensation, and Other Employee Benefits K. Analysis of Inter-Corporate Investments L. Analysis of Business Combinations M. Analysis of Multinational Operations N. Ratio and Financial Analysis
V. CORPORATE FINANCE A. Fundamental Issues B. Capital Investment Decisions C. Business and Financial Risk D. Long Term Financial Policy E. Mergers and Acquisitions F. Valuation Implications of Corporate Finance
VI. ANALYSIS OF EQUITY INVESTMENTS A. Organization and Functioning of Securities Markets B. Security Market Indexes and Benchmarks C. Equity Risk Definition (e.g., statistical, economic, downside, relative, absolute, political) and Measurement D. Fundamental Analysis E. Special Applications of Fundamental Analysis F. Technical Analysis
VII. ANALYSIS OF DEBT INVESTMENTS A. Debt Securities B. Risks Associated with Investing in Bonds C. Global Bond Sectors and Instruments D. Yield Spreads E. Introduction to the Valuation of Debt Securities F. Yield Measures, Spot Rates, and Forward Rates G. Measurement of Interest Rate Risk H. The Term Structure and Volatility of Interest Rates I. Valuing Bonds with Embedded Options J. Mortgage-Backed Securities (MBS) K. Asset-Backed Securities L. Valuing Mortgage-Backed and Asset-Backed Securities M. Assessing Trading Strategies N. Principles of Credit Analysis
VIII. ANALYSIS OF DERIVATIVES A. Derivative Markets and Instruments B. Forward Markets and Instruments C. Futures Markets D. Options Markets E. Swaps Markets
IX. ANALYSIS OF ALTERNATIVE INVESTMENTS A. Real Estate B. Investment Companies C. Venture Capital D. Hedge Funds (e.g., characteristics, fee structure, leverage, short versus long) E. Closely-held Companies and Inactively Traded Securities F. Distressed Securities/Bankruptcies G. Commodity Markets and Commodity Derivatives
X. PORTFOLIO MANAGEMENT A. Capital Market Theory B. Management of Individual Investor Portfolios C. Management of Institutional Investor Portfolios D. Pension Plan and Employee Benefit Funds E. Endowment Funds and Foundations F. Insurance Companies G. Other Corporate Investors (investment policy considerations) H. Capital Market Expectations I. Asset Allocation J. Portfolio Construction and Revision K. Equity Portfolio Management Strategies L. Debt Portfolio Management Strategies M. Real Estate and Alternative Investments in Portfolio Management N. Risk Management O. Performance Measurement P. Presentation of Performance Results
"This is not true, studies are not focused in portfolio management (only at level 3 exam)."
I'm passed level 2. The test is focused on asset management/equity research. The sections that don't say "portfolio management" doesn't mean the rest is not correlated to it. It's well known.
Perhaps you should read the vault guide on investment banking?
they should really offer the CIB- Chartered investment banker designation, to avoid any more of this bogus CFA-i-banking confusion.
Notice how there is little to no sections on mergers and acquisitions accounting and investment banking?
ah... what does it say under corporate finance??? I'm sure accounting in M&A can't be a creature of its own from Mars... If financial statement analysis is covered to that depth and length, the knowledge+experience+intuition should fulfill that requirement for M&A and IB purposes...
Dude - you're an idiot. Don't start spouting bullshit on the board.
You sure? Either you passed Level 2, or you're past it. Not both, bro.
No there's not an investment fucking banking section on the CFA. Why? B/c nobody wants to study how to do powerpoints and there are already excel training programs. However, there are numerous corporate finance sections relating to M&A on Level 2, so I highly doubt "you're passed it." If you knew much about finance you'd realize that corporate finance, financial accounting, and valuation are pretty critical to the IB.
Keep chugging bro. Must feel awesome to bullshit an online forum.
sternfox, I am also a level 3 candidate, and I also currently workin i-banking (and may say that CFA studies help a heck of a lot in this work). Though, at various work palces it might be different, of course - depends on particular tasks and overall level of responsibility of yours.
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