Industry S2E2 | Block Trades, IPOs vs. Other Equity Offerings, Perception of PWM & More!

In this episode of the unofficial companion podcast to HBO Max's hit show 'Industry,' Jen and Kristen delve deep into the financial intricacies presented in Season 2, Episode 2, titled 'Giant Squid.' They start by dissecting the concept of block trades, highlighting how institutions handle large stock transactions and the associated financial risk. The discussion ties this to a real-world example of a recent $2 billion block trade by Citi and the potential losses from such high-stake financial maneuvers when investor demand is miscalculated.Jen and Kristen also provide insights into Equity Capital Markets (ECM) and Initial Public Offerings (IPOs). They explain the role of underwriters in building the order book and pricing the shares to ensure a successful IPO, emphasizing the importance of the roadshow in generating investor interest. They break down the differences between primary and secondary offerings, and discuss "rescue financing" in the context of private equity involvement.The hosts take a critical look at the private wealth management (PWM) sector as portrayed in the show. They discuss the stereotypes and realities of PWM roles, contrasting them with the fast-paced environment of institutional sales and trading. They underscore the impact of interpersonal relationships on financial success, using Celeste's mentorship of Yasmin as a case study. Through these discussions, Jen and Kristen not only enhance viewers' understanding of the dramatic plot but also provide a robust financial education.

Breaking down the holiday episode from Season 1 Episode 6!

In this episode of the unofficial companion podcast for HBO Max's hit show 'Industry,' we dive deep into the financial intricacies of Season 1, Episode 5. Join Jen and Kristen as they break down the implications of an Italian Brexit and explore how jargon like 'Brexit' has evolved within financial circles. We also delve into the challenges and nuances of bonus structures, discussing the impacts of deferred compensation and stock-based bonuses on Wall Street professionals, with real-life insights from Jen and Kristen's own careers in finance.The episode unravels the complexities of mentorship and social mobility within the financial industry. We examine how characters navigate class tensions, the influence of networking, and the often problematic dynamics between mentors and mentees. Whether it's understanding the fallout from being short euros, dissecting the hierarchical challenges faced by junior analysts, or exploring the social pressure to conform, we've got you covered.Additionally, we spotlight the contrasting responses of characters to workplace pressures and moral dilemmas, examining how their backgrounds influence their decisions and interactions. Tune in to get the skinny on what's real and what's just Hollywood as we break down everything from finance to workplace culture in your favorite show.

In this episode, Kristen and Jen delve deep Season 1 episode 4 of HBO Max's Hit show, "Industry". They kick things off by breaking down the significance of the non-farm payrolls report and its sweeping impact on various market instruments like bonds, stocks, gold, and the dollar. They dissect Harper’s misbooked cable trade and explore the severe repercussions it has on both her career and the firm's PNL (Profit and Loss). From discussions on exchange rates, jobless claims, and the Federal Reserve's dual mandate, listeners get a comprehensive summary of real-world finance mechanics.As the drama unfolds, the podcast tackles critical financial strategies and mistakes, such as the implications of currency risk management, market expectations, and the ethical standards within trading floors. They evaluate Harper's ill-conceived decision to cover up her error by leveraging a risky NFP forecast, highlighting her missteps and the importance of immediate transparency in high finance. Additionally, Krista and Jen offer insights into the dynamics between front office and back office roles, presenting a nuanced look at the challenges and hierarchies within investment banking.The episode juxtaposes the intense financial maneuvers with the personal dramas of the characters, giving listeners both an emotional and educational experience. From understanding the rigorous trust required between managers and analysts to the sophisticated financial concepts and ethical standards essential for a trading career, this episode packs a wealth of knowledge on how real-life financial markets operate, all while keeping you entertained thanks to HBO's dramatic storytelling.

In this episode we delve into episode three of HBO Max's hit show, 'Industry,'. We walk through Harper's cross-asset trade idea involving puts on the homebuilders index, calls on gold, and credit default swaps (CDS), and her interactions with bosses Daria and Eric and use it to discuss mentorship on Wall Street. We further use the show as an excuse to explain sales credits, trade executions, and correlation trades.We get into workplace politics and the often-blurred lines between personal and professional relationships, highlighting Gus and Robert's varying strategies to win over the client, Usman, and why in some cases the smartest person in the room isn't the one who comes out on top. We give our take on the challenging balance of maintaining professional relationships and achieving career growth on Wall Street. 

In this week's episode of 'The Wall Street Skinny', Jen and Kristen return with another insightful deep dive into the world of finance as depicted in HBO Max's hit series, 'Industry'. Leveraging their combined 25+ years of experience in investment banking and teaching, the duo offers an educational exploration of key financial concepts, clarifying everything from the basics of foreign exchange (FX) trading to the complexities of sales and trading dynamics. Through engaging discussions and real-life anecdotes, they bring color to the jargon-filled world of Wall Street. Listeners will have the chance to learn about pivotal terms like 'shorting cable', which refers to shorting pound sterling against the US dollar and the insider jargon surrounding this trade. Jen breaks down the essentials of FX trading, explaining concepts such as hedgers vs. speculators and the various factors that influence currency exchange rates. Meanwhile, Kristen dives into the often misunderstood roles of sales and trading desks, covering topics like sales credits, trading P&L, and how trades are booked and reconciled. Join us for an episode packed with detailed financial explanations that peel back the curtain on banking operations, investment strategies, and the intricate relationships between different financial desks. Whether you're fascinated by the meticulous planning behind trade ideas or eager to understand the territoriality between desks, this episode provides a thorough look at why 'Industry' is a must-watch for anyone looking to get the 'skinny' on Wall Street. Expand your financial literacy with 'The Wall Street Skinny' and gain a clearer understanding of the high-stakes world of finance.

We've heard your countless requests for a review of HBO Max's hit TV show The Industry, and we are buzzing with excitement about our new favorite show!!!  In this episode we break down everything from investment banking's pitch book processes and the  discounted cash flow (DCF) valuations to the high-energy environment of sales and trading floor. We aim to demystify the rigorous demands of both sectors while illustrating the nuanced dynamics among traders, salespeople, and research analysts.We explore specific terms like the Discount Rate and Weighted Average Cost of Capital (WACC), explaining how these metrics are used in real-world scenarios to evaluate investment opportunities. We discuss the nitty-gritty of pitch book preparations, including common practices in presenting valuation multiples and dealing with formatting nuances, all while emphasizing the importance of accurate modeling. Additionally, we shed light on the competitive and often brutal hierarchy within investment banks, particularly the pressures felt by junior analysts from non-target schools.Furthermore, we dive into the mechanics of the trading floor, focusing on detailed trade inquiries and the role of salespeople in managing client relationships. We explain advanced financial instruments like Euro swaps and payer swaptions, using Harper’s first trade execution as a case study. Our discussion extends to the challenges and ethical dilemmas faced in high-pressure environments, including the personal toll on analysts and the severe consequences of excessive work culture. Tune in to get a comprehensive understanding of these complex concepts through the lens of pop culture.