Sales & Trading Training Summer Program Overview Summer Project UMBS Finance Club November 1, 2003

Summer Program

Program Overview Orientation and Introduction Bloomberg Training Product Training Divisional Team Project Mentor/Buddy Program Summer Social Events Evaluations

Orientation and Introduction Welcome and Introduction of Firm – History – Corporate Culture, Vision and Values – Business Units – Legal and Compliance Welcome lunch with senior divisional heads – Understand how the Firm operates and how each division relates to the Firm as a whole – Speakers will share their personal experience and their career progression

Bloomberg Training Bloomberg is the benchmark market data provider on Wall Street – Delivers security, currency, money market and commodity information around the world – Provides analytical tools to different financial sectors – Displays current and historic news and information Introduced to basic keyboard configurations and taught how to find information on financial products such as equities, currency, and money markets

Product Training Experts will be invited to host specific presentations on: – Life of a Trade – Initial Public Offering Process – Legal and Compliance – Equity and Equity-Linked Products – Debt Products – Research – Structured Finance / Debt Derivatives – M & A – Credit Analysis / Optimal Capital Structure

Buddy/Mentor Program Provide career development tool outside of the traditional performance evaluation process

Evaluations Mid-Summer Feedback – Informal feedback collected from direct managers and project sponsors Self-Evaluation: – Intern completes self-evaluation on his performance and development needs towards the end of the summer End-of-Summer Evaluation – Formal written evaluation collected from a broad group of evaluators at all levels from within and across divisions

Rotation Program Rotate through four different business units over the summer: – 1) Research, 2) Trading, 3) Sales, and 4) Capital Markets – Spend 1-3 weeks in each of the three different groups for which you are not permanently assigned – Assigned team project to be completed at the end of the summer Intended to expose you to different businesses – Understand the interrelationships between Sales & Trading versus Research functions

Summer Project

Project Overview Divided into project teams whereby you will be assigned an industry and a company Project deliverables divided into the four products that correspond to your rotations – Intended to maximize your rotational experience by offering a basis for learning on each desk – Utilize your time on each desk to become comfortable with products and the PEOPLE

Research – Part I Identify best company within chosen industry Prepare “Initiation of Coverage” research report utilizing the Firm template – Industry Environment – Company Background – Pro Forma Financial Projections – Bottoms Up Approach – Comparable Analyses – P/E, P/B, EBITDA/Mkt Cap – Valuation – DCF, Comparables, and Sum of Parts – Primary Investment Points – Recommendation – Rating and Price Target

Sales – Part II Prepare different sales pitch to different institutional investors – Value, Growth, Index, and Sector Customize sales pitch in 2-minute and 15-minute formats for different clients – KNOW your client investment profile – Summarize most salient investment points – Anticipate probing Q&A session afterwards Conduct live and recorded telephone pitches client with sales points and follow up

Capital Markets – Part II Purpose strategic capital raising alternatives for company and key issues for its success – Market Sentiment – Type of Issue: IPOs, Secondary Offering, Preferred Stock, Convertible Bonds, Derivatives, etc. – Deal Size – Valuation – Timing – Listing – Institutional and Retail Buyers – Underwriters

Trading – Part IV Devise complex trading strategies for hedging and absolute return opportunities – Focus on cash and derivatives products Address specific limitations on trades – Liquidity Risk – Short Selling Restrictions – Availability of Options – Credit Risk – Sensitivity Analysis – Documentation