Investment Banking Job Description

Investment Banking Job Description of Analyst & Associates

Investment Banking job description below provides full and complete details of the roles and responsibilities of an Investment Banker, top skills needed to perform such functions and the primary qualification required to become an Investment banker.

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Source: Investment Banking Job Description (wallstreetmojo.com)

Key Responsibilities

Below is the Investment Banking Job Description and role taken from an actual opening.

Investment Banking Job Description - role

source: efinancialcareers.com

Few of the necessary requirements pertaining to this are as follows

Skills Required

Following are skills required in order to become an Investment Banker:

  • Excellent proficiency with MS Excel
  • Developing financial models to perform forecasts on variables like credit growth, defaults rates
  • Conceptually sound knowledge of concepts like Derivatives, Fixed Income Securities, Corporate Finance is necessary.
  • One is required to perform Valuations of companies for opportunities of mergers and acquisition. Proficiency in doing Discounted Cash Flow Valuations along with other valuation methods is needed, consequently.

Investment banking deals not only with simple investment instruments like equities and bonds but also with “Derivatives”. Derivatives are financial products which derive their value (market value) from the underlying assetUnderlying AssetUnderlying assets are the actual financial assets on which the financial derivatives rely. Thus, any change in the value of a derivative reflects the price fluctuation of its underlying asset. Such assets comprise stocks, commodities, market indices, bonds, currencies and interest rates.read more.

For example, equity derivativeEquity DerivativeEquity Derivative is a class of derivatives whose value is connected to the price variations of the underlying asset & it is generally used for hedging risk or speculating moves in indexes. It has 4 major types, i.e., Forwards & Futures, Options, Warrants, & Swaps. read more which sees its market value being decided by how those equities are performing in the stock market. To be able to perform such tasks, typically following qualifications are needed:

Analyst and Associates – Key Qualifications

Investment Banking Job Description - Requirements

source: efinancialcareers.com

Below are some of the Qualifications to become an investment banker

As we can see, a career in investment banking requires dealing with data and numbers and one needs computer based softwares to perform such calculations. As a result, having appropriate technical skills is as essential a requirement as any of the above-mentioned points.

Technical Skills

This list of technical skills as a part of IB job description has been compiled by studying various openings from top bulge bracket investment banksBulge Bracket Investment BanksTop 10 bulge bracket investment banks are - Blackstone, Goldman Sach & co, Morgan Stanley, J.P Morgan Chase & co, Bank of America Merrill Lynch, Credit Suisse, Citi, Deutsche Bank, HSBC, UBS.read more like JPMorgan, UBS, Gold Sachs, Morgan Stanley and others.

  • MS Excel – the expert level of proficiency is needed with this tool. This can be treated as the first step if one needed to develop a career in the Investment Banking industry. The industry it as a sin to use the mouse while doing Excel work. Such is the level of efficiency it demands!
  • VBA macros: for automating tasks like report generation etc. While Excel being the first step, one should be able to analyze data via various programming languages like Python, R, and SAS
  • MATLAB: is another important tool mainly used by the industry. While Python and R are freeware (available to use for free), MATLAB requires the purchase and licensing to use it. A good starting pick for beginners could be Python or R

Since investment banking does a lot of mergers and acquisition, it becomes critical to gauge the level of “risks” involved in the mergers or buyouts. Risk, in Finance, is defined in a very comprehensive mathematical way. There are theories and models to calculate risk and how to incorporate them in decision making.

As an IB analyst job, one of the tasks is to fulfill clients’ requirements. One of the most important client demand is swift and accurate information availability.

Top things to know

This would require a note of the following things:

  • The timely month-end news release and reporting along with other finance projects and duties
  • Impeccable command over English language and sharp communication skills
  • A proactive approach towards coordinating amongst various departments and teams in order to ensure error-free and timely report reporting to department heads and senior managers
  • Soft skills to handle clients intense situations like a market downturn or unforeseen events before closure of a deal

A career in investment banking demands more than the just good combination of various skills. It comes with high-pressure working requirements and expects investment bankers to be on their toes all the time, literally.

As you would expect, the payoffs and rewards are proportionately high and lucrative.

This has been a guide to Investment Banking Job Description for Analysts and associates. Here we discuss the Investment banking analyst roles, skills required, technical skills and key qualifications/requirements for this role. You can also have at these articles below to learn more about Investment Banking –