Public Finance Harvard Kennedy School

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					HKS                                t 617-495-1161   t    t

t          CAP
          PROGRAM                                                              Public
   1   Overview
                                        1 Overview
   2   Skills for Public Finance
                                    Public finance is a process through which         Financial Advisors
   3   who Hires                                                                      to Municipal Bond Issuers t
                                    public entities raise capital for proposed
   4   Salary Levels                projects and other expenditures. Funding          Act as advisors to entities in raising
                                    is in the form of debt and can be a               capital, effectively managing their
   5   How They Hire
                                    general obligation bond or revenue bond.          entities and investing their assets.
   6   Search Skills                General obligation bonds are backed               Assured Guaranty Corp is an
   7   resources                    by the full faith and credit and taxing           example.
                                    authority of the issuer/borrower. revenue         Bond Insurers t
                                    bonds are repaid by a designated                  Provide insurance to investors in
  CreATinG yOur Own                 revenue stream and are issued for                 bond issues. Assured Guaranty
  CAreer AdvAnCeMenT                purposes including transportation and             Corp. is an example.

                                    airport projects. There are a variety of
                                    entities and organizations involved in the        Public Fund Investment
                                    process.                                          Managers and Advisors t
                                                                                      Municipalities may hire
  t Discover What                   Issuers t                                         organizations to manage the
    You Want:                       State, federal, local and other agencies          proceeds of the bond offering until
                                    and entities including special purpose            they are needed for the intended
    embrace the                     entities.                                         purpose and/or to manage
    possibilities                   Investment Banks t                                operating revenues collected
                                    Public finance areas advise and help              throughout the year until they are
  t Set Your Sights:                public entities raise money. The group            spent. pfm Asset Management llc
                                    includes firms such as Goldman Sachs,             (pfam) provides both investment
    define goals &                                                                    advice and management.
                                    Citi, Morgan Stanley, J.P. Morgan, Morgan
    strategies                      Keegan, and Siebert Brandford Shank &             Investors t
                                    Co., llc. (See list of top underwriters on        entities which purchase municipal
  t connect & Move                  page 3.)                                          bonds. They include individuals
    ahead: plan, act,               Rating Agencies t                                 and institutions, such as insurance
                                    issue a credit rating on the bond issue           companies.
    re-evaluate                     and include the firms of Standard &
                                    Poor’s (s&p), Moody’s and Fitch.                  There are often other organizations
  t consider Options:                                                                 involved in the process such as
                                                                                      lawyers who advise issuers on the
    summer or full-time                                                               structuring and legal issues related
                                                                                      to a transaction.
  t Prepare for What’s
    next: it’s a lifetime

                                                                                                                75         years
                                                          t 617-495-1161         t     t

  Public Finance gateway

             HKS PrOFiLe &                                                                                              t
             SKiLLS FOr PuBLiC FinAnCe                                                                                  Gain individual
       Skills                                             courses
                                                                                                                        support from
       Skills required vary somewhat by which type        while there are no specific curricular                        a career coach.
       of the aforementioned entities students are        requirements that will ensure success in
       interested in. Key skills include the following:   applying for a position in public finance,                    Call 617-
       i. intelligence / analytical ability
                                                          candidates will find that certain Kennedy
                                                          School courses will greatly enhance their
       t Superior quantitative and analytical skills      understanding of concepts and issues

       t excellent writing ability
                                                          relevant to the public finance associate role                 t
                                                          and help them decide whether this is the
       t Problem-solving aptitude                         right career choice.                                          Join a pic.
       t Creativity                                       The following represents a list of some
       t Comfort with numbers
                                                          regularly offered courses that have                           t
                                                          been deemed helpful by public finance
       t evidence of academic excellence                  associates:                                                   Participate
       ii. Work ethic
                                                          mld-410 State and Local Public Finance                        in oca
                                                                  (most relevant)
       t Commitment to work long hours/stamina
                                                          api-101     Markets and Market Failure
         (public finance associates in investment
         banks can work 70+ hours per week)               api-102     economic Analysis of Public Policy
                                                                                                                        events and
       t excellent attention to detail
                                                                      (present value concept covered                    Activities.
                                                                      in detail)
       t Personal initiative
                                                          api-130     Public economics in international
       t Self-motivated/self-starter                                  Perspective

       iii. culture/Fit                                   api-141     Finance (particularly for
                                                                      understanding bonds and
       t Superior interpersonal skills                                derivatives)
       t excellent communication skills                   mld-411 Budgeting and Financial
       t dedication to teamwork                                   Management
       t enthusiasm                                       ped-210 Public Finance in Theory
                                                                  and Practice
       t Ability to thrive under pressure
                                                          Please note that cross-listed finance courses at Harvard
       t interest in public finance and public policy     Business School and mit may also be useful.

                                              t 617-495-1161    t         t

                                                                                                 Public Finance gateway

  3 wHO HireS
      Public Finance                                                                     Municipal bond underwriters include:
      investment banks hire graduates for their public finance associate
      program. Firms such as Goldman Sachs and Citi have hired hks                      SeniOR ManaGeR RanKinGS 2010
      graduates. Alumni also work at organizations including Moody’s investor                                             Firm    Par amount
      Service, Public Financial Management, and prag. representative hks                                                   Citi $49,599.7M
      employers include:                                                                      Bank of America Merrill Lynch $48,497.5

      t Barclays Capital,                    t Goldman Sachs,                                     JP Morgan Securities, LLC $39,461.4
        Director                               Public Sector & infrastructure,                                Morgan Stanley $34,593.8
                                               Summer Associate                                         Goldman Sachs & Co.       $24,710.8
      t Boston Municipal
                                                                                                              Barclays Capital $23,990.4
        research Bureau,                     t JP Morgan,
        Research Associate                     investment Banking,                                       rBC Capital Markets $19,090.7
                                               Associate                                     Siebert Brandford Shank & Co.         $9,139.1
      t City of Boston,
                                                                                                            wells Fargo & Co.      $9,127.6
        Office of the Mayor                  t Massachusetts Budget
                                               and Policy Center,                                Morgan Keegan & Co., inc.        $8,760.3
      t City of Boston,
                                               Policy Analyst                                               Piper Jaffray & Co.   $6,435.6
        Treasury department,
                                                                                                        Loop Capital Markets       $4,921.9
        Assistant Corporation Counsel        t Massachusetts Housing
                                               Finance Agency,                              Stifel nicolaus & Company, inc.       $4,646.5
      t City of Braintree,                                                                        Jefferies & Company, inc.       $4,045.5
                                               Development Officer
        Office of the Mayor
                                                                                          George K. Baum & Company, inc.           $4,031.7
                                             t Moody’s investors Service,
      t City of Los Angeles,                                                                              Stone & youngberg        $3,967.6
                                               Vice President/Senior Analyst
        Mayor’s Office, Budget and                                                                           de La rosa & Co.      $3,785.4
        Performance Management Team,         t Morgan Stanley,
                                                                                                 robert w. Baird & Co., inc.       $3,514.4
        Budget Intern                          Public Finance,
                                                                                              pnc Financial Services Group        $3,073.2
      t City of Pittsburg,                                                                                usb Securities, LLC     $2,782.9
        Office of the Mayor,                 t new york City economic                                      dA davidson & Co.      $2,779.2
        Intern                                 development Corporation,
                                                                                                                Mr Beal & Co.     $2,390.2
                                               Project Manager
      t City of Somerville,                                                              raymond James & Associates, inc.          $2,332.3
        Office of the Mayor                  t Public Financial Management,                                ramirez & Co., inc.    $2,230.6
      t Commonwealth of                                                                                Ziegler Capital Markets     $1,833.8
        Massachusetts, executive             t Siebert, Brandford, Shank,               Source: Thomson Financial,
        Office of Administration               Associate                                Siebert Brandford Shank & Co. LLC
        and Finance,
        Fiscal Policy Analyst
      t Federal reserve Bank of Boston,
        Public and Community Affairs,
        Policy Analyst                                                                     4 SALAry LeveLS
                                                                                             Salary levels vary according to the
      Federal Reserve System                                                                 position level and the category of
      hks alumni work throughout the Federal reserve System:
                                                                                             entity for which one works.
      t Federal reserve Board                                                                and provide information
      t Federal reserve Banks: There are 12 regional banks in the                            on compensation levels. Students may
        U.S. which include: Atlanta, Boston, Chicago, Cleveland, Dallas,                     subscribe to a vault Gold Membership
        Kansas City, Minneapolis, New York, Philadelphia, Richmond,                          for a small monthly fee.
        San Francisco, and St. Louis.

                                                  t 617-495-1161     t    t

Public Finance gateway

 5 HOw THey Hire And TiMeLine
if you are interested in public finance, you     Given the current situation in the financial
will want to begin your research early in the    markets, graduates who are interested in
fall. Given that investment banks begin their    public finance should consider a broad
recruiting for public finance positions early    range of options within and outside gov-
in the fall, with applications for full-time     ernment. For example, the u.S. Treasury’s
positions generally due in late September        initiative to address troubled assets and to
or early October and for summer internships      promote regulatory reform is already gener-
generally due in december, plan to research      ating new employment opportunities.                             t
other options within the same time frame,
if possible, so you will be prepared to make
                                                       Many investment banks                                     register
informed choices. Many investment banks
utilize their summer associate programs to             utilize their summer                                      in jack
source many of their full-time offers. if you
                                                       associate programs to                                     www.hks.
are entering your final year at hks and have
not worked in a summer program, you will
                                                       source many of their                                      harvard.
want to begin your research and preparation
as early as possible, preferably during the            full-time offers.                                         edu/career

 6 Key SeArCH SKiLLS,                                                             7 HKS reSOurCeS
   STrATeGieS And reSOurCeS                                                    t visit the hks web site and search the
Candidates should read at          Other public finance                          faculty biographies of professors who
least the first few chapters       preparation materials include:                teach the aforementioned courses
of The Fundamentals of                                                           and of other hks affiliates who have
                                   t The Bond Buyer
Municipal Bonds (wiley                                                           experience and/or interest in finance.
Finance, The Bond Market
                                     – the main industry                       t review the hks Picture Book for
Association), which covers the
                                     publication                                 students who have worked at
important concepts and issues
related to public finance. it is   t Wall Street Journal                         organizations in which you may be
essential reading for all new                                 interested.
public finance associates in       t nyC Comptroller                           t Attend the regional Alumni networking
investment banks.                    Public Finance                              events in San Francisco, CA, and
The Fundamentals of                            washington, dC, in January. watch the
Municipal Bonds covers:              bureaus/pf/index.asp                        oca web site as further details become
t Overview of the municipal        t investing in Bonds
  bond market (major players                  t Join the hks urban Policy Professional
  and fundamentals)                                                              interest Council (pic).
                                   t investopedia
t Basics of municipal      
  securities (types, yield
  and price)
t Principles of investing                                                  Thank you to the alumni who have provided input.
  in bonds
t interest rates and

                                                                                                       office of career advancement
  their impact

t derivatives and other                                                                                79 John F. Kennedy Street
  financial products                                                Celebrating           years        Cambridge, Massachusetts 02138

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