Corporate Banking Simply Explained in 8 Minutes

clubhouse: @bryanjun

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[philippetsoukias]

The other important difference is life/balance. CB is more IB light. They don’t work you to death and salaries are decent. Something to consider if you’re a bit older or starting/having a family (late 20s-30s)

[Hippie]

CBankers typically own the relationship with clients at banks that have large balance sheets (deposits). They don’t do many term loans unless they are involved in project finance, more focused on getting into a clients revolver or providing bridge loans for M&A. It Is usually cheaper for corporates to raise money on public markets than raising money through bank debt. But project finance loans are more complex and less vanilla so it’s better to use bank debt or private credit. There is a political process behind being in a top position of a revolver as the client will owe more business to the bank to manage their credit relationships. So all this said, I’d disagree that corporate bankers are like a wingman - they are more of a gatekeeper. If you are the most profitable service the bank provides to corporates than maybe it’d be more of a wingman thing because the corporate banker will always let you work with the client (I’m not a corporate banker)

[habibbialikafe]

I've done internships in Commercial Banking on the large corporates team (clients were Robinhood, Square, Stripe, etcetera), I have done an IB internship at a boutique, a buy-side Investment Research internship, and a Sales & Trading internship at a global investment bank.

IMO, CB is the least stimulating work. You don't find where loans should be trading/priced at as Bryna indicates, that is more done at the senior level on specific teams. You mostly just do credit analysis, similar to what you would be doing at a rating agency. Can this company's cash flows pay back their debt? Yes or no. Input some factors in the company system and it spits out a risk rating which determines their interest rates.

With IB, you do a lot of crap work with aligning logos, but you also get to analyze every facet of the business. Valuation is much more mind stimulating than assessing credit risk imo. S&t keeps you involved in the markets everyday which is exciting too.

[waltermacaulay]

Some people in my group have gone onto private credit firms that do similar work in the debt capital markets but that are willing to take more risk in terms of where they fall in the capital structure and priority of claims. Great video as always!

[fbi]

JP Morgan updated the salary to be around 100-110k

[yogurtotrumpet]

"As I go further into this analogy I might get into trouble" haha smart move

[bobcatdidi]

Professor Bryan speaking to the students with the wingman analogy

[mikemcnut]

What did you film this with? Your skin and overall picture quality looks great.

[GoldenBoy-sqyl]

Life must be easy when your as good looking as u are

[khanskingdom]

Such a great video! Just what I have been waiting for. Could you please do your next video about the timelines for recruiting and what a technical interview looks like?

[Kurt-rgjq]

CB here and starting analyst since 2021 at my bank is $100K, 2nd yr $105K, 3rd yr $110K, associate $125K

[mdubs]

Please do a similar video on Wealth Management

[architsharma]

Best part of commercial banks is when you issue a housing loan to an applicant and he/she visits with his/her family to take disbursement well that's wholesome.

[nicholas]

For Corp Banking, Wells Fargo or JPMC?

[FranciscoSalas]

Can you do a video on Private Equity vs Alternative Investments (at a pension fund, asset manager, etc)

[GeckoDays]

I just got a Postion offer for Sales Supplier Spec for JPM.

Any tips and advice, coming from a different industry background, but thankful & blessed for the opportunity.

[bickf]

Hi Man,
I am an Italian currently studying in France at a top-tier bs (at least for France/Europe). I have a pretty decent academic/e.c. cv (bachelor with honours, elite sport bla bla) but no concrete experience in finance. Would you suggest me to go into corporate banking before IB? Currently my strategy is to apply for both and see what happens, but given the resumes of those at my same school it will be slightly harder for me to get immediately into IB (I think)

By the way, great video and thanks!

[dimitriosglous]

Can you do a video on private banking careers?

[MrSomebodyX]

Hi Brian, great video. Would you happen to know why corporates would prefer to raise debt via corporate loans rather than issuing bonds? Thanks!

[HRH-pnqe]

I want to get into IB, I currently work in an back office role, senior. My position is within operations. I'm 28 and going into a MSc program. Can you give advice on how people already in Finance, can pivot into IB? ( back office to front office).