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Understanding the Yield Curve

What is Yield? Yield (also called Yield To Maturity, or YTM) is the return investors receive for holding a bond. Yield takes account of both the interest/coupons investors get and the bond price relative to its par value. What are Treasuries? US Treasuries are debt instruments the US Department of the Treasury issues

Getting Fired as an Investment Banking Analyst

Every year, a bunch of fledgling investment banking analysts worry that they will underperform on the job. And we recently wrote about how you can get fired in an investment bank. "If I can't spread comps will I get fired from investment banking?" "I'm worried that everyone who is working with me

Fired from Investment Banking

"Oh did you hear about Vincent in equity derivatives? He was fired in October." But fired can be fairly ambiguous outside of knowing that someone has left the firm. At investment banks, fired usually means one of four things. No promotion/bad bonus Asked to leave/counselled out Termination without cause Termination with cause No

30 Minute Technical IB Interview Prep

We have a fairly exhaustive interview guide that is one of the most popular pages on our website. If you can answer all of those questions, you can be fairly assured of a position - summer, co-op or full time at most Bulge Brackets or Canadian banks assuming that you

Other Phenomena in the Investment Banking Jungle

This is a follow up to a previous intellectually lazy post Some Investment Banking Things. Lucites, Deal Toys and Tombstones When investment bankers close deals, they will set aside a budget to commission trophies commemorating the transaction. Usually, they will get glass toys with a theme that is loosely related to the

Valuation of Metals & Mining Companies Part III: Credit

Part I: Introduction Part II: Multiples Part III: Credit Mining credit is interesting because of the capital intensive and cyclical nature of the business and unpredictability of cash flows. Capital structures with high leverage are pretty common amongst players in the space. Since commodities as a whole are at the

Valuation of Metals & Mining Companies Part II: Multiples

Part I: Introduction Part II: Multiples Part III: Credit Once an appropriate price assumptions deck has been selected, analysts use a combination of these metrics to determine the value of a business. P/E (Price/Earnings) The price to earnings ratio looks at the price the investors are paying per share for each dollar

Valuation of Metals & Mining Companies Part I: Introduction

Part I: Introduction Part II: Multiples Part III: Credit Multiples analysis is a key component of valuation within Investment Banking and Equity Research as multiples are calculated based on actual market information and each multiple tells a different story about the state of a business. Analysts usually calculate a variety

How to Interpret Interest Rate Market Updates

If you aspire to be an interest rate trader or a fixed income trader, understanding interest rates is very important. Rates traders, especially those who deal with longer dated (10/30 year), hold some of the more prestigious seats on the trading floor and given the bespoke nature of the product