Career in Investment Banking
- March 18, 2021
- Posted by: traitact
- Category: Uncategorized
Investment banking involves in activities in the financial markets such raising capital for
companies, assisting in acquisition and merger, and provides services as market making and
the trading of derivatives, foreign exchange, commodities, and stocks.
Analyst, Associate, Broker, Equity Researcher, Trader
Ever since the financial tsunami took place in 2008, investment banking has become a feared
term because of its potential to create economical turmoil. But investment banking is integral
to the economic systems of the developed world. Investment banking plays the crucial role of
directing capital to companies with great ideas that mediates social and economic change.
This is a sector of banking that will continue to grow and recruit talents.
A wide range of competencies are valued in investment banking. As expertise involved in
investment banking changes with levels in the trade, competency requirements change with
every level too. Note that this is an areas an area of banking that is difficult to break into.
Here are competencies and professional training that are required or for different levels/types
of operations in the trade:
In general, investment banking is demanding in analytic, social and communications
skills. It may only suit those who are emotionally and physically resilient, and who are
adaptive to the ups and downs of the financial market, and who have the stamina to
work long hours. Hire and fire based on performance is common in investment
banking especially if you are in positions of responsibility. By the same token this is
also an area where hard work and accomplishments are noted and respected.
Extreme dedication to your work, good spreadsheet skills and analytic fluency are
valued at this level. Most people start in investment banking in an analyst position.
You move up to become an associate who are required of similar skills but who deal
in greater volumes.
Good mathematical skills with appropriate training in areas such as stochastic
calculus and differential equations, equipped with advanced finance courses in
options pricing or bond valuation will help you to work for a research
department in investment banking.
A science background will help you to work on everything from derivatives
algorithms to biotech banking. However, you need to learn to repackage and
‘sell’ yourself to the trade. Getting an MBA maybe the first step.
Individuals with a law background can help draft securities, sell leasing
business and advise clients on related matters. To gear up yourself for
investment banking, you may have to equip yourself with an MBA with the
training that would route you into specialties areas in investment banking that
will use your knowledge in law.
Having proper accounting training can land you into specialty areas in
investment banking such as becoming a securities analyst. People with good
accountings skills are always in the demand in investment banking and a CFA
qualification will help you to get in the business. In order to become a
corporate financial analyst, which a notch up this path, you might also want to
consider getting the CMA (Certified Management Accountant) qualification.
In trading, one buys or sells financial instruments such as sticks and bonds for
companies or individual investors. Many believe that good traders are multitalented. One of these talents may be ‘bluffing’ hiding or masking one’s own
intentions and unmasking those of others to get the best deal.
- Team management
Leadership and management skills are called for to put together teams of
individuals who are very often very gifted but at the same time difficult to
work with. Good management skills that can adapt to these individual
peculiarities can result in very high performances.
The ability to develop a network of contacts through various business venues
such as informational interviews, industry conferences, alumni functions is
essential for business development in the investment sector in the long run.
- Communication and completion
Your ability to communicate with clients and get deals done meeting the
deadline is important at mid career. A good understanding of market trends,
the political, macroeconomics.