Investment Banking

Developing a career in investment banking can be economically rewarding, although it may impact one’s social life and stress-levels. Working in investment banking, often referred to as i-banking, implies raising capital for business organizations and providing them with advice regarding merging and financial activities.

Investment banking is essential for companies that require these financial services in order to grow and to be able to offer more services and products to their clients and customers. New York is the key place to find a position in this financial niche, as here the most influential investment banking firms are located, and its financial district is one of the most important in the world. Pursuing a career in investment banking implies working within different areas. Amongst them we can mention: corporate finance, sales, trading, research and syndicate.

Corporate finance is the heart and soul of investment banking, and those who work in this area focus on mergers and acquisitions (M&A), and advisory and underwriting. Within M&A, a career in investment banking will involve making sure that the merger between two organizations is done smoothly, and that both parts agree on the deal.

The sales department is also a very important area within an investment bank. There are different kinds of sales agents depending on the type of client with which the bank works. Sales agents are in constant contact with investors, and develop close relationships with them. Amongst sales agents, classic retail brokers deal with individual investors who may need professional advice regarding where best to invest their money, or how to protect their savings. Institutional salesmen or saleswomen work with institutional investors, such as funds, whilst private client service representatives provide financial advice to very wealthy individuals. Traders are in charge of selling and buying bonds, stocks and other securities.

These are the people who deal with transactions, and provide liquidity to a client. Research analysts play a very prominent role in investment banking and it can be a particularly interesting position for anybody interested in pursuing a career in investment banking. Researchers analyze the performance of stocks and bonds and provide reports to sales agents, who are then able to advise their clients. Some researchers focus on a special kind of bond or within a specific industry. The syndicate can be considered the hub of the investment wheel and he is the nexus between the salesperson and corporate finance.

Chances are you are fully aware of the global financial crisis currently affecting the world. Banking is one of the areas that has most suffered from the crisis and it is still trying to recover. Some of the most important players have disappeared, merged or have experienced serious losses. However, this does not mean that it is currently impossible to pursue a career in investment banking; rather, it can be slightly harder to do so. But as the major players are experiencing a downward trend in growth, there are many smaller investment firms that have been increasingly hiring new staff. These firms may not appear to be as glamorous as the top investment banking companies, but they provide equally challenging working environments.

Having a successful career in investment banking usually implies long working hours, a high degree of stress, and little to no free time at all. Those in their first years of experience can feel particularly worn out by the stress and lack of a social life. Thus, a high salary is usually quite important to individuals in the field, and their effort is compensated with huge performance and annual bonuses.