Investment banking jobs
If you are at the crossroads of choosing a career and one of these roads veers towards the financial sector, maybe you are looking at the option of a career in investment banking. However, it is not a cakewalk to enter this field. It is considered by many to be a tough sector in which to get a job.
For first-timers looking for a job in investment banking, here's some basic information:.
A bank, simply put, is the link between a borrower and a lender. A commercial bank is a financial institution that borrows money from one person (savings) and check deposits in order to lend to another person or organization. An investment bank, on the other hand, will assist the lender to directly invest in the business of the borrowing individual.
Some of the Services provided by an I-Bank .
1. Providing finance to a Corporate House and giving advice connected to its prospective merger with another organization, ways to raise finance, and similar issues.
2. Providing banking services to a Government .
3. Providing financial services with regard to a particular currency to enable a corporate to be buffered against sudden fluctuations in interest and exchange rates.
4. Providing management services for investments either directly or through an investment trust.
5. Trading in bonds, equities and other financial instruments.
An Investment Bank generally comes under one of the following umbrellas: .
1. Full-Service Banks .
An investment bank in this group is one that provides services to its client that fall within the entire spectrum of financial know-how. Such a bank will base its operations on an international level.
Some Examples: Goldman Sachs; Merrill Lynch; CS First Boston; Lehman Brothers.
2. Regional Investment Banks .
An investment bank in this group is one that offers financial know-how only in a specific region. The need for such a bank arose due to a boom in the technology sector, resulting in the rapid growth of firms sowing their seeds in areas in the country that were a great distance from the financial hub of USA Wall Street.
An Example: San Francisco .
3. Boutiques .
An investment bank in this group is one that is smaller in the sense that it provides services related to one particular financial product (such as arbitrage) or industry. Such a bank is generally set up by an savvy banking individual who, is attracted by the prospect of having loads of greenbacks, leaves the large financial house where he worked to open his own independent firm.
An Example: Enron - it provides services related to the oil industry.
As you can see, there are plenty of job opportunities in investment banking:
If you are savvy about trading and have a thorough knowledge of all types of financial instruments, you can take up a job in the trading sector.
If you are fascinated with the way companies are merged and acquired by other firms, get ready to plunge into the world of deal structuring, helping in obtaining loans for the deal, and other aspects of negotiating such deals.
If analyzing is your forte, one job option is to become a security analyst, giving advice to an investor on buying and selling stocks and bonds. Another option is to be an analyst specific to a particular industry, such as retail merchandising. You could even start your career in investment banking as a ratings analyst, which involves rating corporate financial instruments.
If getting involved with projects, whether nationally or internationally, excites you, take up a job in the field of project finance.
A lot more opportunities exist: equity research, structured finance, electronic investment banking, there is a seemingly limitless field just waiting for you! .
Necessary Qualifications for Investment Banking Jobs .
Those who are starting out as Analysts would definitely require a Bachelor's degree.
Those who are seeking a job as an Associate would additionally need to possess an MBA degree.
Once you stick on in the investment-banking sector and acquire some years of experience:
You could get the opportunity to rise to the post of an Assistant Vice-President after about 4 years maybe, and even become a Vice-President after 5-6 years.
Dreaming of occupying the Associate Director's post Well, you\'ll need at least 6-8 years experience, and possibly more to become a full Director of the firm.
Having more than 10 years experience in investment banking could land you the plum post of Managing Director or of a working Partner, as the case may be.
Additional Qualifications.
Merely getting an educational degree is naturally not enough to acquire a good job in investment banking. You will definitely require a very high degree of interpersonal skills, being able to work as a team member, being able to communicate very well, being able to deal with clients in a savvy manner without an overbearing attitude, etc. Other skills high on the priority list of what potential employers will look for are your analytical and creative abilities. The former, for example, implies being able to analyze market trends, while the latter could mean the ability to design a unique program to help a corporate house to increase its profits.
Interviewing for an Investment Banking Job.
The first advice is the most obvious: be on time. Factor in sudden weather changes and traffic snarls and leave early for your interview. You are creating a really poor impression by making the interviewers wait and, for heaven's sake, don't give excuses: they just hate it! It does not matter if you are 2 hours early, you can always sit in the lobby and read up the company brochures; but it definitely does matter if you are going to be late.
Dress smartly, but don't go over the top. Avoid neon-colored ties! Make sure the suit you wear is comfortable; otherwise you will be constantly fidgeting during the interview !.
Never go unprepared with half-baked knowledge about the company , do plenty of research on its structure and policies, its goals and projects.
It follows that you should also not be unprepared for unexpected questions. There are some websites that provide a list of potential questions asked at an investment-banking interview. Go over them, read up on the requisite information, and rehearse how you will reply.
Don't be rude or abusive to anybody. From personal experience I\'ve noticed that some job applicants make it a point to target the receptionist for being made to wait endlessly. It is not her fault! Every employee in that company is an important person and poor manners on your part are often reported to the higher-ups, ending your chances of getting that job.
Remember what your parents taught you as a kid: say please and thank you! .
Once you are through with the interview, hope for the best! It is advisable to call back if you don't hear from the firm within a week. No harm in asking about your prospects of getting that job.
And once you land that coveted job: .
Be prepared to work really hard (definitely more than 50 hours a week!).
Don't expect a fantastic salary right away, you could be starting at less than $30,000 a year.
Try to acquire an additional degree by attending evening classes or taking up an accredited online course to increase your chances of promotion and better pay.
Complete your assigned tasks on time .
Don't crib if you are initially given only simple jobs like preparing tabulated financial data, it is your stepping stone to larger, more important work, and.
Avoid backbiting your colleagues, you need to work with them and not against them.
Other Articles
