Business Description

What is Equity Capital Markets?

Equity Capital Markets (ECM) helps firms to raise money so they can grow their businesses.   The team originates, structures and executes new issues of capital, as well as providing corporates with a range of related services, such as secondary trading assistance, real-time market insight, hedging strategies, investor relations advice, regulatory assistance and equity-specific M&A guidance.

Our product specialists expand the range of capital markets tools available to clients and develop tailored solutions to meet clients' capital-raising goals. We work with the Investment and Corporate Bankers to identify clients who need to access the equity markets and then structure, position, value and market the offering. It is not all origination and transaction execution either – our Syndicate desks are involved in all aspects of marketing, pricing, allocation and aftermarket trading of equity and equity-linked offerings.

The nature of our business means that we work extremely closely with colleagues in investment banking in our interaction with corporate clients and with colleagues in equities in our interaction with institutional clients– indeed those boundaries are often blurred and it is common for people to move between these groups during the course of their careers.

What service do we provide to our clients?

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. We are experts in financial instruments including convertible securities as well as common stock offerings within a broad range of transactions from Initial Public Offerings planned over several months to overnight equity block trades.

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.

What product/groups do we cover?    

• Pan-European and Emerging markets Equity Capital Markets
• The team advises clients on the full range of ECM products and is organised along a geographic and sector matrix. However, the range of sector and geographic coverage that a typical ECM banker will cover is very broad and he or she will work alongside a variety of different country and sector counterparts in the investment bank

• UK ECM and Corporate Broking
• The UK team within ECM is known as ‘Corporate Broking’ and provides a retained equity advisor service that is unique to the UK stock market. A corporate broker is typically one of a client’s trusted advisors, giving market advice, knowledge and contacts to enable the company to manage its interaction with its shareholders and counterparties. They have daily contact with the senior management of their clients, involved in the company and sector news flow, giving advice on possible M&A projects or equity raising issues, and assisting in the company’s relationships with investors and regulatory authorities.

• Structured ECM Solutions including Equity Linked and Corporate Equity Derivatives
• The Equity Linked Capital Markets / Corporate Equity Derivatives (CED) team proposes structured solutions that are specific to each client. For example, should a company wish to choose an equity route for financing purposes, but wants to maximise the amount of proceeds raised, the team would help the client issue a convertible bond. The CED team also advises corporate clients for hedging / monetising current stakes, accelerated stake acquisition, tax efficient structures, equity based loans, hedging dilution of Employee Stock Option Programmes, structured share buy back programmes. The range of products just within the derivatives space is very broad.

• Equity Syndicate
• The Equity Syndicate desk is primarily responsible for the overall marketing process of capital raising, acting as the market facing operation of the ECM business and ensuring that our global equity sales and distribution teams are focused on selling the transaction.
  
  At the end of the deal, the Syndicate desk leads the decision making on where the deal prices and which accounts receive an allocation of shares.
  
  Additionally, the Syndicate team will use it's market insight to provide judgement and opinion on transaction opportunities where the bank has it's own capital at risk.

 

Roles of an Analyst

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

Equity Capital Markets…in simplest terms

Equity Capital Markets helps companies to grow. By advising our clients about raising funds through the equity markets, they can acquire other companies and invest in new machinery or technology. 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.

The group is principally organised by geographic region, but within that there are a range of sector and product specialisms. In addition, and an integral part of ECM’s service is the Structured Solutions team, who use tailor-made derivatives products in the equity markets to find new value for our clients.

Why work in Equity Capital Markets?

ECM sits between the Investment Bank and the Equities Sales & Trading businesses. ECM professionals have a unique perspective: we are plugged-in to both the short-term dynamics of the market and the long-term strategic vision of investment banking. Our work involves daily interaction with bankers and salesmen or traders, and since we tend to work in small teams there is a high level of contact with our clients - to whom we often talk on a daily or weekly basis about the markets. We work under pressure, with very short deadlines (often minutes and hours rather than days). Citi has one of the fastest growing Equities businesses on the Street and it is therefore a very exciting place to work.

Roles an Analyst may undertake in Equity Capital Markets:

Market Analysis: Though ECM operates across many different products, key to Citi’s success within these is our understanding of that particular market. 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.

Issue Pricing: Whichever product is being used, price is an essential area for Citi to compete on. 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. An Analyst helps coordinate 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. .

 

Our Programmes

Equity Capital Markets in EMEA has three programmes you can apply for:

• Full time Programme

• Summer internship

• Placement Programme

Full Time Programme:

The full time Analyst programme commences mid July with a six week training programme. You will train and network with your colleagues from Investment Banking.

Your formal training begins with orientation and induction sessions providing an overview of Citi and specifically Citi Markets and Banking. You will then complete an eight week programme of extensive classroom training, with skilled external corporate training consultants, supported by selected internal instructors from within Citi. This comprehensive programme is designed to cover the following fundamental aspects of the Analyst role:

• Enhance confidence when extracting and assimilating financial information

• Build robust financial models

• Fundamentals of equity valuation

• Become familiar with the standard Citi financial models

• Understand key roles in the financial markets

• Obtain an overview of the most important financial products

• Develop technical skills (Excel, PowerPoint, Bloomberg etc)

Our training programme is interactive and participative, ensuring that you play a full part in the learning experience thus making the training relevant, stimulating and effective. Your training programme will conclude with the regulatory training and exams (FSA qualification) before being allocated to a desk. A mentor and a buddy will be allocated to you to give you an informal support network that will aid your integration in to your new department.

Summer Internship:

The London office Summer Internship Programme runs for 10 weeks from the end of June.

You will start the Internship with an Induction to Citi along with 200+ Summer Analysts joining Citi Markets & Banking divisions in London.

The initial 3-day training includes:

• a review of important processes that you should know as a new employee to Citi

• an Introduction to Global Financial Markets and Citi. This course provides the opportunity for you to identify and explain the main business areas of an investment bank, Citi’s products and services as well as engage in interactive trading simulations and portfolio management

• specific business presentations

• a team work event 

After the initial training you will then be assigned to a desk Equity Capital Markets where you will be allocated a project 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 a weekly Business Presentation series, networking opportunities with senior managers and various intern-wide social events. A buddy will be also allocated to you to give you an informal advice and support network over the summer with us.

During the programme, we will be evaluating you for a full time position on the Analyst Programme for the following year. We do this through:

• a mid term evaluation

• a project presentation to senior management and

• a final term review.

This is a two way process, providing you with an opportunity for you to evaluate whether this is where you want to take your career as well.

Equity Capital Markets Placement

The placement programme commences with a full week of training in London. You will train and network with your colleagues from Investment Banking. This begins with orientation and induction sessions during the first day that provide an overview of Citi and specifically Citi's Investment Banking Division.

You will then complete a four-day programme of classroom training, which will be carried out by skilled instructors drawn from within the business. This comprehensive programme is designed to cover the following fundamental aspects of the placement Analyst role:

 Basic accounting and finance skills

• Fundamentals of valuation

• Citi's library and information services

• External information systems e.g. Bloomberg

• Important financial products commonly used

Our training programme is interactive and participative, ensuring that Summer/Placement Analysts play a full part in the learning experience thus making the training relevant, stimulating and effective. To support and compliment this training, we will focus on honing your computer and information/data gathering skills.

During the programme, we will be evaluating you for a full time position on the Analyst Programme for the following year. We do this through:

• a mid term evaluation

• a project presentation to senior management and

• a final term review.

This is a two way process, providing you with an opportunity for you to evaluate whether this is where you want to take your career as well.

The Placement Programme commences in both February and September for six to twelve months.

Who we are looking for

Employing the most talented candidates is fundamental to achieving our business goals. We aim to provide candidates with the necessary skills to successfully develop and maintain profitable client relationships, have superior financial knowledge and strive to strengthen our market share.

We welcome applications from all backgrounds – we will provide you with the training to succeed in our business. We look for highly motivated individuals with strong academic performance & excellent communication skills.

Some of the key skills we look for are:

• an ability to work independently and in a team

• high levels of self-motivation and initiative

• a detail orientated approach

• superior relationship building & communication skills

• solid quantitative ability

• a strong desire to develop a sound understanding of the industry/environment

• creative & innovative problem solvers

• ability to work under pressure on multiple projects

• a commitment to integrity and ethical decision making

With an ever-increasing international environment, language skills are also an advantage.

Recruitment Process

We open for applications on the 3rd September 2007

The application deadlines are:

Analyst Programme: 4th November 2007
Summer Internship Programme: 20th January 2008
Placement Programme: On-going

Please note we recommend early applications.

Our interview process for the full time programme will commence in October/November 2007, for summer internships it will commence in January 2008.

We recruit for placement students to join us in February and September 2007. The interview process will commence in late October for entry onto the February 2008 programme and for entry onto the September programme interviews will commence in February/March 2008.

Full Time Analyst/Placement

Below is an outline of the recruitment process from application received to offer:

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

Stage 2:  Invited to an online Numerical Reasoning Test

Stage 3:  Further screening by business

Stage 4:  First round interviews:
               Two 1:1 competency based interviews
               Numerical Reasoning Test

Stage 5:  Assessment Centre:
               Three 1:1 competency based interviews with Managing Directors & Directors
               Written Case Study Analysis/Presentation & Group Discussion

Stage 6:  Offer extended by Graduate Recruitment

Summer Internship

Below is an outline of the recruitment process from application received to offer:

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

Stage 2:  Invited to an online Numerical Reasoning Test

Stage 3:  Further screening by business

Stage 4:  Assessment Centre:
               Three 1:1 competency based interviews with Managing Directors & Directors,
               Numerical Reasoning Test
               Written Case Study Analysis/Presentation & Group Discussion

Stage 5:  Offer extended by Graduate Recruitment

Where

Our EMEA (Europe Middle East and Africa) headquarters are based in London. The majority of our positions are based in London, however occasionally we may recruit into other locations across our region   Please keep an eye on the website for updates.

Stats on Citi in London:

Location? Canary Wharf, London

Employees? 10,000 are based in London.

What divisions? Invesment Banking, Corporate Banking, Global Capital Makets, Global Transaction Services, Technology, Operations, HR

How many Analysts? 200+ across all business areas

Our People

Daniela Guzzardo Degree in Public Administration and International Institutions Management (major in Economics of International Institutions) Associate

What do you consider Citi's competitive edge?

Citi is a truly global institution, with an excellent distribution network and powerful franchise. Furthermore, the breadth of business, integrated products and services offered to its clients is unrivalled. For a professional working at Citi this translates into the opportunity to gain exposure to a large variety of clients, colleagues with different backgrounds and the possibility to spend a part of ones own career in offices located in different regions - Europe, Asia and the United States

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

As an Equity Capital Markets professional, I work closely with both investment banking professionals and the sales force. The former are key partners in the origination phase of business and we develop pitching material together; the latter are key in the execution of transactions, and particularly IPOs, as they sell the story to their institutional clients across the globe and allow us to gather extensive investor feedback for our corporate clients. Our interaction with the sales force is of course regulated by the rules of the Chinese Wall. Over the course of the six years I have worked at Citi I have had the possibility to work with professionals based in different European offices, including Milan, Madrid, Zurich and Frankfurt.

What outside influences have the most bearing on what you do day to day, and how do they affect you? (e.g., economic news, world markets, company data, etc.)?

I always need to keep an eye on international equity markets. As a result, any factor that may influence the performance of markets and of specific stocks (including economic data, company results and geopolitical events) is relevant to me and requires close attention and constant update.

Describe your experience in your specific training program.

I joined Citi in July 2001, and I spent the first six weeks in a training program, partly in London and partly in New York. I remember this as a very valuable and extremely enjoyable experience, as it gave me the opportunity to learn more about Citi and its business as well as get to know the other graduates joining the company, putting the foundations for an extensive network of contacts across departments from the very beginning. The training comprised courses in accounting, finance and IT skills, which all came at hand as soon as I started working in my department. Similarly, following the promotion into Associate, I spent seven weeks on a training that aimed at strengthening our core skills.

 

What do you enjoy doing outside work?

I mostly enjoy spending time with friends, trying new restaurants and bars. My passion for music and sports also take up a fair amount of my free time.