My Education: BA in Human Resources, Miami University
My Prior Experience: Banking for 20 years
My Company: I work for a Bank in the interest rate risk management group, Bank Capital Markets
Job/Career Overview: I talk and meet with people from all over the United States about interest rates. Banks prefer to lend to customers on a floating rate basis instead of a fixed rate. I have the ability to fix the rate for the customer using an interest rate derivative. An interest rate derivative gives the client the right to pay or receive a notional amount of money at a given interest rate. The interest rate derivatives market is the largest derivative market in the world. I work on a trade floor with people who may trade bonds, stocks, foreign exchanges, and debt.
An example of a deal I may do: The bank lends one of our customers $50,000,000 to buy equipment to make auto parts. The bank will charge an interest rate of LIBOR (.25% floating rate) + 2.50% (spread the bank earns) = 2.75%. Sounds like a good rate but if the economy starts to improve the rate will rise back to its historical average. The client may not want to have the interest rate risk and choose to fix a portion of the floating rate to a fixed rate. Currently 4.75% for 5 years. It cost more to fix the rate now but if the floating rate increases the client may save money over time.
I rate this career 8 out of 10.
Worst part of job: When the economy is down bank clients have a hard time paying us back. It is sad to see clients who have worked very hard to build a company shut it down.
Best part: Working with clients that succeed at building a successful company. We gave a client money to build a new plant and they hired 700 workers. Building a business and hiring workers is the greatest thing you can do for the country and I am very happy to be a part of it.
Stay late and get in early. It may be obvious advise but people do not do it. I cannot stress enough that you have to work hard. You have been babied all your life by your parents, teachers and friends. You will only have yourself if you want to make a lot of money.
Learn to work with others as a team. I have to please a lot of different people to get a deal done.
Be happy, you cannot sell unless you love life.