Analyst
Roles an Analyst may undertake in Capital
Markets Origination (CMO):
Market Analysis:
Though CMO 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 analyze 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.