| Topic Name: |
CFA Options... |
| Message Name: |
Why CFA? |
| Date Posted: |
07/08/2004 |
| In Reply To: |
Got some questions and hope someone can help or point me in the right direction...
I'm trying to get a guage on what my career options will be a year from now. Currently I'm doing finance work at a very large international corporation, but it isnt securities focused. Would any of you with experience mind shedding some light on what you think my career options will be within the IB/IM field? Meaning, what types of positions would I be able to lateral into?
My credentials will include:
- CFA Level 3 candidate (Passed levels 1 and 2)
- CFM + CMa certification
- 2 years work experience at a large Dow Jones compnay
- Undergrad Wharton finance degree
Any comments would be appreciated. I'm just trying to guage how valuable this CFA is and how much of a benefit it will be when I try to lateral to IB/IM. For example, will I be able to land a position equivalent to a 3rd year analyst? Etc... |
| Message: |
The CFA is typically for Portfolio Mngrs, Traders and Analysts. A few IBankers have it but it really is of little benefit. Most banks prefer the MBA, JD or Masters in Accounting (or sim.) background. I am NOT saying that the CFA will hurt, b/c it absolutely will help almost anywhere, but it just doesn't receive the same attention or respect with banking. As for the CFM and CMa, and I don't mean to be offensive, but they are really not valued on the Street. The AAFM is not recognized as a historically valued institution. I don't say this to be hurtful, in fact I considered the same course some time ago, but I am just giving you the same news that was passed onto me by some VERY well-know and well-respected professionals in the industry (icluding my mentor who is considered one of the top asset managers of the past 40 years). Of course, it can't hurt to have it somewhere on your resume, but don't, what ever you do, put those initials after your name on a resume because it makes it appear as though you are making up for a lack in other areas. Did you ever see a resume that look likes this: "John M. Smith, JD, MBA, CFA, CFM, CMa"? Its a joke! We throw those away the second we see that! The CFA is SOLID, however, and I would definitely highlight it when speaking to firms. Off my soap box now! I apologize if I sounded hash, but I made the same mistake a few years ago and got torn a new one by not one, not two, but THREE guys who interviewed me at top firms. They don't like the excessive stuff - stick with the well respected and globally known credentials: BS/BA, JD, MBA, CFA, PhD, etc.
Back on topic - I would simply evaluate what (a) you like to do and (b) where your skills are. The truth is, most of the solid PM's and Analysts would NOT make worthy Ibankers, and vice versa. As a PM/Trader I could tell you NOTHING about relationship mngt, developing new issues, in-depth accounting, etc. I know how to navigate the markets, spot arbitrage opportunities, read between the lines on a balance sheet, etc. My background is in Mathematics. Most Ibankers are strict finance, accounting and/or business law people. I would try and determine over the next year, while you complete the CFA, what it is that strikes your interest and plays to your strengths. If you're not sure then I would pick up a few books on each and speak with as many people from each group as possible. Good luck!
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