Investment Banking Division (IBD)

Article byWallstreetmojo Team
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

What is the Investment Banking Division (IBD)?

Investment Banking Division (IBD) is a particular investment bank division that provides corporate finance and advisory services. It is responsible for capital raising by the underwriterUnderwriterThe underwriters take the financial risk of their client in return of a financial fee. Market Makers like financial institution and large banks ensure that there is enough amount of liquidity in the market by ensuring that enough trading volume is there.read more, debt, hybrid markets, mergers and acquisitionsMergers And AcquisitionsMergers and acquisitions (M&A) are collaborations between two or more firms. In a merger, two or more companies functioning at the same level combine to create a new business entity. In an acquisition, a larger organization buys a smaller business entity for expansion.read more and different types of advisory mandates.

Explanation

IBD provides advisory on transactions and helps arrange to finance transactions and execute mergers and acquisitions. It consists of the following type of deals:

Investment Banking Division (IBD)

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Investment Banking Division Groups

Investment Banking Clients

Investment bankers act as advisory to a wide range of clients for capital raising and Merger and Acquisition needs. Their clientele includes:

Investment Banking Division – Skills Required

Investment bankers who work in the IBD require a lot of financial modeling, valuation, and excel skills to prepare research reports, advise clients, and complete deals. The major skills required are mentioned as follows:

Job Titles

There is a particular job hierarchy within the IBD. The most common job titles starting from junior to the senior position are as follows:

Conclusion

The Investment Banking Division (IBD) acts as a bridge between large enterprises and investors. They play an important role in advising businesses and governments on overcoming financial challenges and procuring finance, whether from stocks, bond issues, or derivative products.

This has been a guide to the investment banking division (IBD). Here we discuss IBD Groups, including skills required and job titles.

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