Tuesday, March 31, 2009

I am back --- with a whimper

  • 8-6 has got boring, although I am still in research, our whole group has had a recent focus/image makeover, making us almost completely service- rendering bitches for our clients (internal and external).
  • I don't like the projects I am supposed to work in 09-10.
  • With oil and the economy in free-fall our lofty bonuses (announced Dec08 for 09) are going to be severely trimmed.
  • I am feeling immensely strait-jacketed in terms of my career road-map.
Sum total of this bullet-based rant: I WANT AN MBA, again.

So after being out of the game for just about a quarter, I am back, back to play my part in that indy-500 of rat races aka Mba-admissions (drummrolls please) and that too at an unprecedented time.

My mood is sour and am feeling especially bitchy, so lets continue on the path of dourness and take a sneak peek into the current economic scene from an mba aspirant's perspective:
  1. Sales and Trading : S&T was the reason I started looking into mbas. I wanted to be in a hedge fund running money like theres no tomorrow. Sadly investment research reveal total AUM for hedge funds have fallen to $965 billion in Jan from just about $1.9 trillion in May 08, an astounding 50%+ drop in just about 3 quarters. In may of 08 there were about 10,000 operational hedge funds, today that number is less than 6000, steamrolling towards the 5k mark, of course as hedge funds go belly-up hiring freezes, newly hired traders go over to cnbc and some audition for stripper jobs. Since I am feeling especially pissy here is the story of a hedge fund manager netting 750k anually who now works as a pizza boy at $7.95/hr,but he does deliver your pizzas in his leased Merc, soon to be repoed though.

    Former Morgan-Stanley junior banker/trader now working as a full-time NYC stripper netting 100k+.

  2. I-banking : Sell side finance to start with (sell side is for the dummies btw), where you are essentially a middleman (akin to a pimp, pimping for money in expensive $2200 black suits and gelled hair, instead of the bing and glean that your average pimp puts on) putting together exotic products for your clients and often mixing in super-toxic little understood instruments into those product pools. But hey you still make decent dough, well you used to, if I was graduating today from a B-school I wouldnt touch an I-bank with a barge pole.

  3. REITS (Real estate): I said I wouldn't touch I-banks with a barge pole if was graduating today, in that case I need to make a will forbidding my offsprings to use the phrase REITs in any source or form ever. A few charts for the pain that has now been re-christened Real Estate investment:

    What the first chart basically shows is the massive debt maturities that most REITs are now facing through to 2011. The problem is that REITs need to get financing/refinancing or some structural revolving credit line with their existing as well as new creditors to deal with these. Now those into Real estate will know that earlier this month Simon property group, perhaps the biggest player in this space (also the one with the best credit ratings on moodys and S&P), announced it was raising $500 million in bonds to take care of its debt at an astounding 10.15%!!! Pain anyone.

Now that my finance options are out of the way and the post is lit up in red, I'll retreat into my corner and sulk some more.

edit: I finished some catch up reading on mba related stuff and realized that there seems to be a shift in career focus towards clean energy, biofuels and stuff like that at most major B-schools. That is pretty surprising primarily because if you are rejecting Wall street based on your risk-averseness, then moving towards clean energy is almost surely suicidal. It is a sector that survives solely on subsidies and realistically has little chance to be a major/significant player anytime soon. The name though sounds chic and cool "Clean tech".


mba2go said...

welcome back, and a nice post to start with. But a bit too much on the pessimistic side, dont you think

D. G. said...

Great to hear your voice in the blogosphere, dude. I thought you preferred the other career in finance - Poker.

OMGparishilton said...

@mba2go : obama is here buy stocks eveything is fine, drink kool aid
@d.g: i oscillate and yo-yo, a lot

Bogdan said...

OMG - I think you are a bit late for 2009 application year, but perhaps you can join in for the 2010 - we have a number of alumni from your target business schools - http://gmatclub.com/forum

Good luck with the applications!

OMGparishilton said...

@bogdan : gosh i didnt know that 09 is done, thanks for the reminder ;)
On a more serious note yea I am a 2010 hopeful.

Anonymous said...

could you explain/put a bigger a picture out for the second chart, it seems to deal with cap growth but isnt well visible

Anonymous said...

Dude, nice to have you back. I see you are reading Zero Hedge like everyone else right now ;)

aa said...