My International Experience at JPMorgan

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Nov 18, 2013 (3 years and 11 months ago)

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My International Experience at JPMorgan


By Luis
Morinigo


University of Maryland


Finance, Banking, and Investment Society



Mar 31, 2010

Contents

1.
Background: your past helps define your future


2.
Deciding between Consulting
vs

Banking


3.
Confusion: what area of the Bank does what?


4.
Choosing the right Bank (or Company) for you


5.
Where I eventually ended up: JPMorgan DR group


6.
What are Depositary Receipts?


7.
JPMorgan’s position in DRs


8.
War stories from my experience abroad


9.
Key Takeaways











Background: your past helps define your future

Focus on building skills in each step along the way and learn as much as you can from
each experience

University of
Maryland



Dual degree in Math and Econ , Honors Program



QUEST Program



Entrepreneurship Program and
Hinman

CEOs

ISTN, Inc



Business Development Analyst



Part time/Full time during the school year



Frank Yang, Director of Business Development , Ex Lehman Bros.

London School of
Economics


MSc

in Operational Research


“engineering for social sciences”


Luis
Morinigo



Introduction to a very different culture

JPMorgan Chase



Graduate Rotational Program, 2 yrs



Global Technology Infrastructure



Depositary Receipts



CFA exam

MOSA
Productions



Chief Operation Officer (COO), Co
-
Founder



Entrepreneurial venture integrating music and travel

NOTHING IS A WASTE OF TIME !!

MOSA

Productions

4

The decision: to consult or not consult?

I was bitten by the banking bug because
I wanted to prove I could cope with the long
hours


I had influence from my old boss at ISTN, inc.



The hours are better: average of 12
hour days
vs

16 hour days



Traveling (can be a minus, but I looked
at it as a plus)



Collegiate atmosphere, getting work
done but ensuring your professional
success


heavy emphasis on social
events, helping consultants build
contacts and relationships throughout
the firm



Project workflow planning and
execution



Power point master



Broader business knowledge



NETWORKING!!



Exit Opportunities: flexibility into
other industries (because of broader
business exposure)

Consulting



At the time, the financial markets were
booming, especially internationally



BONUSES
BONUSES

BONUSES
!



More competitive, hierarchal
structure
-

more tense relationships
with bosses, coworkers much less
willing to help each other out



Its all about financial valuation



Work endurance



Seeing deals get done



Excel master



Master of your universe



Exit Opportunities: flexibility within
the world of finance





Banking

VS

Banking offers many choices; it can be very confusing

Think about your likes and dislikes; your skills and abilities to position yourself in the
area you think you will fit the best



Underwriting


Debt Capital Markets


Equity Capital Markets



Capital Markets



Vanilla products



Exotic and hybrids



Derivatives


Sales and Trading




Mergers and
Acquisitions




Corporate Finance

THE BIG BANK



Clearance and
collateral



Escrow



Cash management


Treasury Services



Business processes



Trade settlement



Technology support



Product Management



Business Management

IT and Operations



Wealth management



Private Banking



Asset Management

SUPPORT FUNCTIONS

Graduate
rotational
programs allow
you to test each
area!

CAUTION
:

Choose your
graduate
program
wisely

Choosing the right Bank for you: key things to think about

The more you know yourself, the easier it will be to choose the right firm for you
based on what they value



Severely broke my leg playing soccer
while attending LSE



Missed all of the “front office”
graduate recruitment deadlines



Massive setback in a heavily
competitive recruitment process


Oct 17, 2004: The accident



Walking out of one of my classes
two months later, I stumbled across
a JPMorgan “360 degree pamphlet”



It turns out that they are still in the
process of recruiting graduates



Only caveat: “operational program”


Picking up the pamphlet




2 days of interviews



Case study



Psychometric test



Accepted in June 2005 to start in
September 2005



Got my “foot in the door”… or so I
thought


The interview

Step 1

Step 2

Step 3

My thought
process: well, I
got my foot in the
door now I can go
wherever I want.

WRONG!

Once you choose a
particular graduate
program (in this case it
was operations for me),
it is very
very

difficult to
move anywhere else
(internally and
externally!!


I did, but it was very
very

lucky!

Your Values

Your Traits


Firm Values

Firm Culture


IMPORTANT: what you feel is important
to you in your life should be reflected to
what the firm feels is important.
Example: JPMorgan’s “old school”
mentality

Where I eventually

ended up: Thanks Hugo!!

Luck = opportunity meeting preparation

Consumer Card

Services

Commercial Banking

Retail


Financial Services

Investment

Bank

Asset & Wealth
Management

Treasury and Securities
Services


Treasury Services


Worldwide
Securities Services


Credit Cards


Merchant
Processing


Chase Middle
Market


Asset Based
Lending


Commercial Real
Estate


Equipment Leasing


Consumer Banking


Auto & Education
Finance


Home Finance


Insurance


Small Business
Banking


Credit & Rates
Markets


Mergers &
Acquisitions


Institutional
Equities


Proprietary
positioning


J.P. Morgan Asset
Management


J.P. Morgan Private
Bank


Private Client
Services


J.P. Morgan Invest

Depositary
Receipts Group
is here

After 1 year in the operations graduate program, I was
about to leave… but I met my good friend Hugo on the
tube and thus began my DR adventure.

What are Depositary Receipts? (the boring stuff)

DR = equity
-
linked product that acts exactly as a regular stock that can be traded on
a particular exchange

Basic facts about Depositary Receipts


ADR refers to U.S.
-
listings or placements; GDR/HDR/SDR refer to listings which can be in Europe, Hong Kong or Singapore respecti
vely


Depositary receipts are issued against the deposit of the issuer’s local shares in the custody account of the depositary bank

in

the Issuer’s
home market


Depositary receipts are issued and cancelled to meet supply and demand in the markets in which they trade


Depositary receipts trade just like any other security on the exchange on which they are listed and/or traded


Depositary receipt settlement takes place in accordance with the protocol of the exchange and settlement system


Each depositary receipt represents a specific number of an issuer’s local shares (or a fraction). This number is called a DR
rat
io. The DR
ratio sets the price of each DR in a price range competitive with the issuer’s international peer group

3

As an analyst in the DR team my main responsibilities were to deliver the highest
level of global capital market analysis and RFP support


A leader in the industry

JPMorgan continues to maintain a very strong position in the DR market


A history of
J.P.Morgan’s

innovations


1927 1960 1970 1979 1998 2003 2005 2006

2007

J.P.Morgan


created the 1st DR

1
st DR public
offering:

British Petroleum

J.P.Morgan

created

http://www.adr.com

JPM DR Indexes

ADR
MAX created

DR Issuer Advisory
Services launched

Rosneft IPO

Largest GDR capital
raising


Leading GDR experience globally


Since inventing DRs in 1927,
J.P.Morgan’s

business model has concentrated on
long
term relationships
, maximising ownership and liquidity in our clients’ DR
programmes


J.P.Morgan

manages
8 out of the top 20 largest DR programmes globally
and has
outstanding expertise with LSE listed offerings.
J.P.Morgan

acted as Depositary on the
largest GDR offering ever (
Rosneft
, $10.6bn IPO, 2006) and the largest GDR offering
from Africa in 2007 and first LSE listing of a Nigerian issuer (Guaranty Trust Bank,
$825m).

Now the fun stuff: stories from conducting business abroad

Three key things to remember: the importance of cultural differences, maintaining
the highest level of attention to detail, and finally… ADAPT, ADAPT, ADAPT



Learn to spell properly!! (
colour

vs. color)



American Football
vs

Rugby



“Hey,
Yo
, MORINIGOOO!”



Respect for history



All other Scandinavia countries included (Denmark, Norway,
Iceland)



Giving up revenue sharing opportunities for the “greater good”



Russia: the respected power (a very proud nation)



Major deals from Oil and Gas



Good times at the Baltic Restaurant!



Nigeria: GTB (Guaranty Trust Bank)



Issuance of DRs (bicycles, fragile phone connections, etc.)



Understand and appreciate where you came from



Having a large amounts of knowledge about your own background
has a very positive impression on other business parties involved



Americans are ignorant about other Americans!

Key Takeaways

ATTENTION TO DETAIL will save you!

1.
Zone in our your key skills and leverage them to get ahead


2.
Research, research, research what you are looking to get into


3.
KNOW YOURSELF and understand what motivates you


4.
Align your values to a company that reflects those same values


5.
Network and speak to people in the industry


the best information will come
from here


6.
When working abroad, become a cultural GURU


7.
If you’re not having fun, do something else … Life is way to short to be
wasting it


8.
Continue to challenge yourself by getting out of your comfort zone