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.
Investment Banking Job Description – Key Responsibilities
Below is the Investment Banking Job Description and role taken from an actual opening.
Few of the necessary requirements pertaining to this are as follows
- Analyzing financial statements of companies with simultaneous evaluation of its peer companies
- You should be well versed with Financial Modeling and should be able to create financial models of companies
- You should be able to perform valuations for complex transactions and also the role may not be sector specific
- Through an understanding of different accounting conventions in order to be competent in analyzing companies operating in different parts of the world
- Build and manage Leveraged Buyout Models, M&A Consequence models for live transactions
- An investment banking analyst job description is also required to advise its clients on both, local and global market conditions and predict future performance expectations.
- It is also his duty to present investment options with a healthy rate of return in front of his clients.
Investment Banking Job Description – 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 asset.
For example, an equity derivative 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:
Investment Banking Job Description for Analyst and Associates – Key Qualifications
Below are some of the Qualifications to become an investment banker
- Masters or advanced level qualification in Finance and Statistics
- Candidates with MBA degree, particularly in Finance, Quantitative Finance have an upper edge in making it to the industry
- Strong hold on Econometrics with knowledge of econometric modeling is required
- Candidates with undergraduates in STEM courses in their curriculum or engineering background have an advantage in developing and handling quantitatively heavy valuation models and analysis
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.
Investment Banking Job Description – Technical Skills
This list of technical skills as a part of Investment Banking job description has been compiled by studying various openings from top bulge bracket investment banks 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.
- Using risk models to identify risk factors like default rates, non-performing assets (NPA) shares
- Candidates with internationally recognized certifications like CFA and FRM are preferred as it trains one in the quantitative aspect of risk calculations
- Tools like stress testing, A/B Testing, Monte Carlo Simulations are few of the methods which are used by the industry in their calculations
As an investment banking analyst job description, one of the tasks is to fulfill clients’ requirements. One of the most important client demand is swift and accurate information availability.
Investment Banking Job Description – 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 –