Analyst

In order to give you a better understanding of Capital Markets Origination, we asked our current graduates to describe (in their own words) the areas in which they work.

Fixed Income Capital Markets Origination is the conduit between an institution and the market. When a Corporate, Financial Institution or Sovereign entity wants to raise financing in order to grow their company from the debt or equity markets, the role of Capital Markets Origination professionals is to advise on the most cost effective and efficient way for them to do this. We cover the whole host of debt and equity products, whilst each group has market-leading specialists within it, the best transactors have a good understanding of multiple products.

Structuring and executing new capital raisings such as Rights Issues and IPOs is a significant part of our business, but we also provide corporates with secondary trading assistance, such as real-time market insight, hedging strategies, and investor relations advice.

Capital Markets Origination has much in common with both the Investment Bank and the Sales & Trading organizations providing a unique position and strategic outlook for someone to start their career. 

Roles an Analyst may undertake in Capital Markets Origination:

Market Analysis: Capital Markets Origination operates across many different products and our understanding of particular markets is key to Citi’s success. Analysts gather and present to seniors and our clients timely information on the various markets; this will involve working with various software applications, external data providers (Bloomberg, Reuters, etc.), and in some cases direct interaction with the salespeople and traders in that market. As Analysts develop within their roles, they begin to understand the dynamics behind the market, and develop views on the outlook for that market in order to then identify relevant ways to synthesize information into a clear and concise presentation for the client.

Issue Pricing: Whichever product is being used, price is an essential competitive area for Citi. Issuers will naturally be attracted to the firm that offers to raise funding for them at the lowest cost. However, Citi risks both its franchise, and if the issue is underwritten, its own capital, every time it shows offered pricing to a client. Pricing levels are arrived at in different ways for the different products, but in each case, Analysts will be responsible for helping to analyse the main drivers of pricing of the transaction to determine the levels offered to the client.

Investor Communication: Critical to the success of every capital raising or corporate transaction is understanding the views and needs of investors. Our clients rely on Citi to complete their deals successfully and efficiently, and we are able to gain insight into the level of demand for an offering and the sensitivities surrounding the price by communicating with potential investors. Additionally, Analysts  also talk to current shareholders about their opinion on a company's performance and strategy – we are a line of communication between senior management and those that own their company.

Presentation Preparation: In addition to performing Market Analysis, Issue Pricing and Investor Communication, an Analyst must synthesize this information in an easy-to-understand manner for the client. While seniors will assist and give direction, Analysts take the lead in producing a professional document presentable to a CEO or head of state. To help the Analyst accomplish this important task, there are design teams that work under the guidance and direction of the Analyst.

Administration: Each project has multiple work streams, deadlines and deliverables that must be managed. As an Analyst, you’ll co-ordinate such tasks with internal working teams, external working team (such as lawyers) and the client. Additionally, Analysts assist in preparing internal memorandums. One example is a “Commitment Committee”/“Credit Approval” memorandum that internally notifies the senior management and credit chain that seeks approval to commit Citi’s capital to a client, whether to underwrite a new issue, or as a part of a deal where Citi purchases a block of shares directly and sells them on. 

No two days are the same in Origination. You’ll get all of the short-term excitement of market-based roles but also the satisfaction that comes from pursuing a longer-term project from start to finish.