Fixed Income, Currencies and Commodities > Undergraduate/Master

Business Description

What is Fixed Income Currencies & Commodities?

Fixed Income Currencies & Commodities is part of our Global Capital Markets teams. Our experts in Fixed Income deal with buying, selling, originating, structuring and researching securities. We address our clients' needs with origination and execution excellence in products in all major currencies, sectors and geographies. The breadth and depth of our resources allow us to consistently provide innovative solutions.

A typical FI product is a bond that in its simplest form is an IOU that a government or company issues as a way of borrowing money. 

What service do we provide to our clients?

We strive to provide clients with the latest information on what is happening in the global economy, along with world-class advice and solutions on how to capitalize on these developments.

In addition to these basic client services conducted with clients all over the globe, we also trade for the firm's own account on a proprietary basis. Our willingness to put our own capital at risk provides liquidity for our clients and has earned us a reputation as the pre-eminent market maker across asset classes (foreign exchange (FX), interest rate products, credit products and commodities).

Our sales force provides a critical link between the company's customers, our product specialists and the marketplace. Their prime responsibility is to build and maintain effective relationships with our institutional investors. On a daily basis an effective salesperson will:

• Provide clients with our view on the market and solicit the same from clients

• Understand the contents of a client's portfolio and their overall strategic investment objectives

• Work with research, product specialists and traders to generate ideas that address the client's current view, are consistent with their overall objectives and fit with our view of the market.

To stay ahead of the competition, a salesperson will have to really understand their client's needs and be able to come up with and sell creative and innovative solutions.

Traders make markets for institutional clients and for the firm by buying and selling securities. In order to improve our position in a sector, a trader needs to assess and analyze trends in the market, anticipate changing market conditions and be willing to commit capital accordingly. On a daily basis an effective trader will:

• Oversee existing positions in the book 

• Adjust positions and hedges according to their view of the market;

• Price, structure and execute new customer transactions according to the requirements of our clients

   

To do this successfully traders have to manage positions on an individual and portfolio basis, anticipate and respond to market moves, and manage multi-faceted risks associated with net exposures to interest rates, credit spreads and other factors.

Product structurers work with traders and salespeople in the more technical product areas to assist with addressing client needs and ensuring the Firm stays at the cutting-edge of new product development. An effective structurer needs to have an understanding of product technology akin to that of a trader, but have sufficient customer knowledge to be able to recommend or generate innovative, value-added solutions to client requirements that are typically bespoke. On a daily basis an effective structurer will:

• Develop new products, consistent with the firm's risk framework

• Market these to salespeople and sometimes directly assist in the selling of these to clients

• Respond to client specific requests for product solutions

Origination experts deal with originating, structuring and executing new issues. Like Investment Banking professionals they sit on the private side of the bank providing strategic advice to clients wishing to raise finance. We have a broad range of Product Specialists whose role it is to work with both our Sales & Trading desks and the Coverage professionals in either the Investment Banking Division, or our Corporate Bank organization to provide market-leading client solutions.

The Fixed Income Origination areas are subdivided into integrated client coverage groups and specialized product groups. Our origination experts will:

• Provide advice and execution expertise on raising capital (origination) in the global fixed income markets to corporate, financial, and sovereign borrowers around the world

• Expand the range of capital markets tools available to clients and develop tailored solutions to meet clients' capital-raising goals

• Work with the Investment Bank to identify clients who need to access the fixed income markets and then structure, position, value and market the offering

• Be involved in all aspects of marketing, pricing, allocation and aftermarket trading of fixed income offerings through the Syndicate Desk.

We provide our clients with real-time market knowledge and technical structuring expertise that allows them to make optimal capital raising, hedging and risk-management decisions and manage the relationship with their shareholders. Our massive global platform and depth of experience, combined with our institutional and retail distribution, top-ranked research, product innovations and capital commitment, has consistently produced a leading flow of business from both domestic and international corporate clients. And a reputation that few firms can compete with.

It is the close collaboration of our salespeople, traders, structurers, originators and research professionals from Fixed Income and indeed from other departments, that allows Citi Markets and Banking to meet the needs of our clients creatively. 

What product groups do we cover?

 

The main product and sector teams in Sales & Trading are as follows: 

• Credit
• Participants in the Credit markets buy or sell financial instruments whose value is linked predominantly to the creditworthiness (i.e. ability to pay back debt) of the direct or indirect reference entity, and its variability (volatility). Among the most commonly traded instruments are high-grade corporate bonds, low-grade corporate bonds (high yield and junk bonds), credit default swaps, credit-linked options and collateralized debt obligations. 

• Cash

   

• Derivatives 

• High Yield 

• Emerging Markets

   

• Hedge Funds 

• Rates
• Participants in the Rates markets buy or sell financial instruments whose value is linked to the level of interest rates in the economy, and their variability (volatility). Among the mostly commonly traded instruments are Government Bonds, Forward Rate Agreements (FRAs), Swaps, Caps, Floors and Swaptions.

• Cash

• Derivatives

• Exotics

• Hedge Funds

   

• Foreign Exchange
• Participants in the Foreign Exchange markets buy or sell financial instruments whose value is linked to the relative value of one currency vs another, and the variability (volatility) of this value. The most common activities are outright purchases or sales, forward purchases or sales, and/or the trading of options.

• Spot

• Options

• STIRT (Short Term Interest Rate Trading)

• Hedge Funds

• Commodities
• Participants in the Commodities markets buy or sell financial instruments whose value is linked to commodities, such as energy (ie, crude oil or natural gas) and metals (ie, gold, copper). These products are bought and sold through a mixture of electronic trading mechanisms and traditional open outcry. The variability (volatility) in the prices of commodities compared to other sectors can be high. 

• Derivatives

The main product and sector teams in Origination are as follows: 

Coverage

• Corporates

• Financial Institutions Group

• Public Sector

Product

• Liability Management and New Products

• Derivatives Solutions Group

• Structured Solutions Group

• Insurance and Pensions Structured Solutions Group

Loans and Leveraged and Emerging Markets Finance

• Emerging Markets Origination

• Leverage Finance - HY Bonds and Loans

• Infrastructure and Energy Finance

• Export Agency Finance

• Securitization

• Syndicate

Roles of an Analyst

To give you a better understanding of what you can expect if you join Fixed Income Currencies & Commodities (FICC), we asked for some input from our Graduate Trainees. Here they describe the main tasks they undertake.

 

Sales:

Morning Report - As a sales person, our job involves a variety of tasks. Often we would start the day by writing a morning report. This could be either a general one summing up what has happened over night in the markets or in some cases specific industry reports focusing on particular areas that are of interest to your desk or your clients.

Client Exposure - The role as a sales person entails a significant amount of client exposure. We get to answer phones, listen in to client calls and even make client visits. We will also spend a significant amount of time doing research to be able to provide market updates and color for a designated customer base. In addition we are expected to generate trade ideas – all the time adding value to our clients. This also means sending out price runs for example, on up to date price information or research reports.

 

Trading:

By getting involved in the construction of spreadsheets, we get a good understanding of how different factors influence the pricing and risk of trades. We thereby help more senior traders to choose which trades to put on and how to adjust their risk in an effective way.

We also have to work their way through the daily blotters, review and understand the risk reports, and book trades to get a complete understanding of all the tasks involved in executing a trade.

We tend to have more time than the senior traders to analyse market research and work their way through Bloomberg and Reuters analysis. This can help them to spot trades that wouldn't be obvious by just looking at graphs and make a valuable contribution to their businesses.

 

Structuring:

Structuring desks are responsible for the construction and/or packaging of more complex transactions, typically involving derivative products. As a junior person in the team, it can take some time to get familiar with the range of products employed by the desk and their individual features. Work tends to be more project-based and given their complexity such deals can take several days to a few weeks to put together and execute.

We will spend time working alongside senior structurers, learning how to run the various models used for pricing and scenario analysis. In addition we can expect to get involved in the marketing of new products and strategies, including client presentations and the regular internal weekly summary sheets for Sales.

The Structuring role allows us to make use of our quantitative skills but also requires client-oriented marketing abilities.

Our Programs

Fixed Income Currencies & Commodities (FICC) in Asia Pacific has two programs you can apply for:

• Graduate Trainee Program
• Summer Internship Program

 

We are currently recruiting into:

• Australia
• Hong Kong
• Singapore

 

Graduate Trainee Program

FICC Graduate Trainees actively participate in the business of selling or trading securities to our institutional client base.

In FICC, we offer a full range of services and products including trading in the credit-linked instruments of local issuers such as investment-grade, high-yield and distressed debt, syndicated loans and credit and interest rate derivative securities. Regional investors access the global research and execution capabilities of the Firm through dedicated sales specialists.

Training and development begins with a formal 6-week intensive program that offers a comprehensive foundation of all corporate and investment banking products through a combination of classroom training, group projects and presentations. Our young graduates will be exposed to the best-in-class product modules to gain essential knowledge and skills as they embark on their career at Citi.

The six-week core training covers:

• Basic industry skills and knowledge
• Financial statements and accounting
• Risk
• Corporate Banking and Transaction Services products
• Investment Banking and Capital Markets Products

Apart from classroom training, the Program includes on-the-job training, rotations to different desks within FICC, as well as a structured performance evaluation process. A mentor and a buddy will also be allocated to give all Trainees advice and support during the Program.

As a global fixed income powerhouse, Citi's Markets & Banking enjoys a reputation for market knowledge, innovation, unmatched distribution and a willingness to commit capital to clients.

Our fixed income team is involved in the entire financing process; from providing advice on capital structures and financing strategies with issuers to assisting in the pricing and distribution of securities and loans to global investors.

 

 

Summer Internship Program

We also offer a Summer Internship Program for undergraduates in FICC.

After the initial training you will then be assigned to a desk within FICC where you will be allocated a project / projects to work on.

Throughout the summer we will continue to provide you with training and networking opportunities to help you gain an in depth knowledge of the whole of Citi. These events include networking opportunities with senior managers and various intern-wide social events. A mentor and a buddy will also be allocated to you to give you advice and support network over the summer with us.

During the program, we will be evaluating you for a full time position for the following year. We do this through a mid term evaluation and a final term review. Remember that this is a two way process – it is an opportunity for you to evaluate whether this is where you want to take your career as well.

Who we are looking for

We hire talented people with degrees from a variety of universities for our programs.

Successful professionals in FICC share many common traits. They include:

• Creative in solving problems
• Enthusiastic
• Hard-working
• Quick-thinking
• Intellectually curious
• Able to juggle multiple tasks simultaneously
• Articulate in oral and written communication
• Cooperative; focused in achieving group and client objectives
• Detail-Oriented
• Quantitative

 

Necessary skills:

• Ability to work in a high stress, fast paced environment – multitasking skills are essential.
• Quick learner and analytical thinker – You must be able to absorb, process and tie together a vast range of detailed information including economic & political news and all market related information spanning the entire spectrum of equity securities.
• Creative thinking skills – You must be able to take all of the market news, trends and flow from across products and regions and translate them into sales ideas and revenue for the firm.
• Clear, concise & effective communication skills are critical – a mastery of “trading language” is vital.
• Willingness, desire and enthusiasm to learn about the markets & products.
• Attention to detail – Mistakes cost money.
• Team work – Must have the capability to work as part of a very large team.
• Talent to efficiently utilize the various resources within the organization to facilitate your specific role. This includes accessing the various research groups, local offices, regional offices, trading desks and operational areas.

Recruitment Process

We open for applications on September 3, 2007

The application deadlines are:

Graduate Trainee Program:            October 12, 2007 (US Schools); October 26, 2007 (All other schools)

Summer Internship Program:        December 10, 2007

Please apply early. Our interview process for the full time programs will commence in October 2007, for summer internships it will commence in December 2007.

 

Below is an outline of the recruitment process (full-time program and summer internship program) from application received to offer:

Stage 1:    Application is reviewed by Graduate Recruitment and the Business

Stage 2:    First round interviews: One to two 1:1 competency based phone interviews with junior managers in Asia

Stage 3:    Second round interviews: One to two 1:1 competency based phone interviews with senior managers in Asia

Stage 4:    Final round interviews: Three 1:1 competency based interviews with Managing Directors and Directors

Stage 5:     Offer extended by Business; follow up by Graduate Recruitment

Our People

Ian Chung BA Economics, The University of Chicago Analyst

What advice would you offer prospective candidates on transitioning from school to the workplace?

I think developing a sense of self-awareness is instrumental in making the transition from school to work regardless of industry. In addition to this is the passion to learn. Most of what you learn in the work place is learning on-the-job which is entirely different from college; where you’re responsible to something bigger than yourself; where your approach and performance doesn’t just reflect on you as an individual but you as part of a team and as part of an organization.

Ultimately, responsibility and accountability are extensions of self-awareness. So it’s important to know what your strengths are, where your passions lie so that you can find yourself in a job that makes you want to get out of bed in the morning.

If asked about your career at a dinner party, how would you describe it?

My career is like peeling off layers of an onion. There’s always something new underneath to learn. Since my career is just beginning, and this is something that excites me. It can be challenging, difficult, frustrating at times. But all the work and effort pays off in terms of the huge sense of achievement I feel at the end of the day. In a nutshell, it is entirely what I was looking for when I stepped onto the Citi floor.

What about your career excites you the most - gets you out of bed in the morning?

This is a job that allows juniors to take on huge responsibilities. Even as a junior, you directly communicate with Managing Directors and work with people across many different industries. Both the depth and breadth of learning makes you feel productive and like you’ve added value, not just to your task, but to yourself and your skill set. The learning curve in this job is exponential— the idea that I will be able to show the same level of expertise as the third year analysts here is currently unfathomable to me—that’s how fast we learn here.

Also, it’s a great feeling knowing that you’re part of something big, that you helped in the execution of a deal involving a huge amount of capital for a huge brand name.

The adrenaline that surges from all of this is what keeps me on my toes and charges me every morning— even after a night of three hours sleep!

What do you consider Citi's competitive edge?

I think Citi’s real competitive edge is it’s extremely diversified business platform as well as its unparalleled presence all over the World. While most of our competitors’ position is very region-dependant, Citi is the one firm that can outdo its competitors not only in North America, but in Asia as well as Europe. I believe this distinguishes Citi as the premier and single truly global financial institution. Also, Citi maximizes synergy from the combination of its commercial/retail banking business and its investment banking business. Our business portfolio is extremely diversified and our balance sheet is strong and huge. Unlike other competitors which have a pure investment banking platform, Citi is a kind of company that can steadily perform given any market situations.

How would you describe your team and the people you work with?

At the end of the day, that’s what it comes down to. It’s a business where you work hard, you play hard so it’s crucial to like the people that you end up spending late nights in the office with. As a junior, what I can appreciate the most is that once you join the team, that’s how people view you - a team member. And no matter how busy they are, they will make that extra time so that you can learn from them. And it’s absolutely fascinating to be part of a team that translates knowledge, energy and passion into action seamlessly.

People in the team are all extremely professional, intelligent, goal-driven and focused but at the same time, they are people you can and would want to go party with or play golf with. As a team we bond really well starting from the late nights at work, to team dinners and even short mini-breaks outside Hong Kong.

What other groups do you liaise with regularly within the Firm?

For the most part we work with IBD’s various industry groups. Of them mostly we work with Financial Entrepreneurs Group which covers private equities because most of LevFin deals are Private Equity sponsored. Also, we work with TMT, Industrials and EPC groups. Outside the firm, we work with all the top tier private equity firms such as Blackstone, Carlyle and KKR, prestigious regional law firms, strategic consulting firms and accounting firms as well. I personally enjoy the exceptional exposure to qualified people across these various industries.

How has Citi supported your career development?

Citi HK Fixed Income, Currencies & Commodities hire people through the FICC Graduate Trainee Program that provides us with an unique opportunity to rotate through almost every fixed income related business including Credit, Interest rates, FX, Commodities, Sales, DCM, Loan syndication, Securitization and Research. No other firm in the World offers you this comprehensive experience throughout entire job functions from sales/trading to debt/loan origination. Rotating analysts evaluate their potential in each group, their interests and their preference of teams when rotating, while learning about and interacting within the various businesses. Ultimately, we were placed at the end of the program (1 year) given our preference and the business’s need. I personally believe that this program allows you to build a solid understanding of the entire fixed income business as a whole, and develop a network extending to all parts of the business.

Maria Ng BSc Operations Research and Industrial Engineering, Cornell University Associate

What advice would you offer prospective candidates on transitioning from school to the workplace?

Talk to as many people as possible and learn about our different business groups and culture.

If asked about your career at a dinner party, how would you describe it?

It is challenging and interesting. Every day is different. As part of the real estate finance team based out of Hong Kong, I get so much exposure to transactions not only in Hong Kong but all across Asia Pacific. Today I am looking at an acquisition financing opportunity in Australia and the next day I will be looking at a construction financing opportunity in China.

What do you consider Citi's competitive edge?

People are the greatest asset at Citi. Our diverse, top-notch professionals enable Citi to be a leader in the industry.

How would you describe your team and the people you work with?

They are friendly, knowledgeable and driven. We really respect each other’s opinions. Even as a junior member of the team, I know that my voice is heard.

What other groups do you liaise with regularly within the Firm?

Being in the real estate finance team, I work closely with loan/debt syndicate, corporate bankers and credit derivatives teams on debt transactions. I also work with IBD to provide clients with joint equity and debt financing solutions.

How do you apply your degree to what you're doing now?

I received my engineering degree from Cornell University. I’m able to apply the analytical skills and problem-solving techniques I gained from school to my daily work.

What do you enjoy doing outside work?

I enjoy doing volunteer work on weekends and my managers are very supportive of my volunteer commitments. Citi also has a great philanthropy program where I find many interesting volunteer opportunities.