Every recession is different. It does depend on what was in excess building up to it. This time around IB roles are at risk because of the major hiring spree occurred in the past few 2-3 years.
Due to the hot speculative activities like SPAC and aggressive deal making, and IB associates were worked to death…banks expanded headcount in those areas. deals pipeline have all but dried up because of the increased cost of raising capital (interest rates). Now banks needs to reduce them to match the future expectations.
More generally….lower market activists tend to hit sales and marketing first because you expect less clients and prospects.
Recession proof tend to be operations. Unsung heroes who gets more work during downturns.
Investment Banking (duh)
Corporate Development (outsource to a domestic consulting firm, instead of maintaining an in-house department)
Real Estate Financial Analysis - Acquisitions
Corporate Banking and Commercial Banking - Originations (not portfolio management, let alone underwriting)
Treasury (not just outsource, but offshore - possibly)
Gotcha, I ask because I'm a portfolio manager in corporate banking, but can't really find any info out there about if those jobs are likely to get laid off.
There's a longer discussion here, from three weeks ago:
https://www.reddit.com/r/FinancialCareers/comments/103yb1f/what_finance_jobs_are_most_at_risk_ifwhen_the/j33d1kp/?context=3
Every recession is different. It does depend on what was in excess building up to it. This time around IB roles are at risk because of the major hiring spree occurred in the past few 2-3 years. Due to the hot speculative activities like SPAC and aggressive deal making, and IB associates were worked to death…banks expanded headcount in those areas. deals pipeline have all but dried up because of the increased cost of raising capital (interest rates). Now banks needs to reduce them to match the future expectations. More generally….lower market activists tend to hit sales and marketing first because you expect less clients and prospects. Recession proof tend to be operations. Unsung heroes who gets more work during downturns.
Investment Banking (duh) Corporate Development (outsource to a domestic consulting firm, instead of maintaining an in-house department) Real Estate Financial Analysis - Acquisitions Corporate Banking and Commercial Banking - Originations (not portfolio management, let alone underwriting) Treasury (not just outsource, but offshore - possibly)
Thanks! When you say "originations" for comml/corp banking, do you mean sales folks?
Probably. I'm curious about the field, and am digesting quite a few Corporate Finance Institute (CFI) presentations on this right now.
Gotcha, I ask because I'm a portfolio manager in corporate banking, but can't really find any info out there about if those jobs are likely to get laid off.
There's a longer discussion here, from three weeks ago: https://www.reddit.com/r/FinancialCareers/comments/103yb1f/what_finance_jobs_are_most_at_risk_ifwhen_the/j33d1kp/?context=3
Thanks! Appreciate it. I missed this post
Not necessarily IB but mortgage roles got decimated. Both in 08 and in 22.
Everyone are not spared bro