To become a bond underwriter, applicants need education and training in business administration, finance, or accounting. Internships and sales skills are also important. Once hired, trainees go through structured and unstructured mentoring to learn about the company’s products and the underwriting process. As they gain experience, they are given more control over a designated sales territory.
In order to become a bond underwriter, an applicant will first need to obtain a certain amount of education and training. There are companies that have bond underwriter intern positions available for recent graduates. These positions are usually looking for a candidate with an educational background in business administration, finance or accounting. Interns participate in additional employer-sponsored classroom training, as well as hands-on training with a more experienced underwriter.
In addition to gaining knowledge about the financial markets, the underwriting process and the various types of securities products available, a candidate wishing to become a securities underwriter must also be prepared to develop sales skills. A bond underwriter is typically responsible for an assigned territory in which he is expected to meet a certain sales quota. Because bonds are not financial products that individuals or businesses typically need to invest in, the ability to successfully prospect, persuade, and close sales leads is critical.
It is recommended that those who wish to become a headline writer obtain a bachelor’s degree at the very least. Many companies are looking for graduates of business administration, economics, accounting, finance or marketing degree programs. Some applicants may have an unrelated degree but have some exposure to courses or experience in accounting and finance. To successfully compete for trainee bond underwriter positions, an overall grade point average of “B” or better may be required.
Once a candidate is hired with a company, they will likely go through a training period that consists of both structured and unstructured mentoring. Depending on the company, structured training may include instruction on how to develop successful sales skills. Underwriter trainees are likely to become familiar with the company’s products, the inner workings of the bond market, and the steps involved in the underwriting process itself.
To become a bond underwriter, the intern is expected to quickly understand the knowledge presented in the company’s training. He or she is also paired with an experienced employee who provides guidance in daily work tasks. Competence is expected to be demonstrated as the trainee continues to gain exposure and practice maintaining accounts for existing clients. Typically, a trainee will also learn how to obtain new business through personal interviews and sales presentations before becoming a bond underwriter.
As a new employee gains the necessary knowledge and experience, he or she is given more control over a designated sales territory. Companies monitor new underwriter performance, but the intern will likely only periodically consult with a mentor at this stage. He will be considered a full subscriber once he independently manages new and existing accounts in his sales territory.
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