<p>Just want to clarify certain points hmom5 made.</p>
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<p>This is true to a certain extent. If you want to be a “career banker” and stay in sell-side banking, an MBA is not mandatory for career progression. However, if you’re planning to make the switch to another career in finance, an MBA is almost a requirement. If you want to make it to the top of the food chain of a private equity house, for example, you’ll need to get an MBA at a top school at some point.</p>
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<p>No. </p>
<p>People seem to have the misconception that the private equity industry is reeling the most because of the credit crunch and the current turbulence in the markets. Well, ANY financial community that depends highly on leverage is going to feel the sting of illiquidity (yes, including hedge funds). There might be more upside in the hedge fund business because of the complex financial instruments that they devise, but there’s also certainly more risk involved as well. If you look at the current crisis, for example, it is in part due to the heavy usage of complex derivatives such as CDOs as capital that has lead to the downward spiral of the economy. Yes, there are a few firms who have made a profit shorting subprime mortgages, but many funds have shut down shop as a result of the on-going turmoil. Hedge funds are certainly NOT “golden jobs,” by any means.</p>
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<p>This is delusional on so many levels.</p>
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<p>S&T and Corporate Finance are fundamentally different things. A good rule of thumb: if you like following quick movements in the financial markets (volatility of betas, changes in the forex markets, etc.) and enjoy many different products, you’ll generally like S&T. If you are more process-oriented, take a long-term approach to situations, and like adopting an investor’s perspective, you’re generally more suited for corporate finance.</p>