Investment Banking Analysts usually works as a part of an investment banking group, usually reporting to an investment banking manager. The investment banking analyst market, which includes Private Investment Bankers, is forecasted to grow 12 percent over 2021, according to the Bureau of Labor Statistics. Private investment banking analysts help private sector companies with mergers and acquisitions and provide investment banking support for broker-banks, government agencies, and self-liquidating private equity firms. Their analysis helps the investment banking firm to prepare its balance sheet and helps the investment banking manager determine appropriate investment banking strategies. They are also responsible for identifying distressed investments and analyzing the effect of stock price fluctuations on the value of a company.
Many investment banking analysts advise companies on mergers and acquisitions and on raising funds. These transactions can be complex, involving many different parties, and can take a long period of time to finalize. The transactions must be well executed in order to prevent legal risks and to ensure the success of the transaction. Investment banking transactions require careful coordination between the buying and selling departments of the company as well as between the various brokerage firms that facilitate the transactions. Some of the tasks that investment banking analysts assist in include:
Sales and Management Teams Often, sales and management teams are not involved in the execution of trades and deals. They typically only have a limited amount of involvement in the preparation of balance sheets, as well as in determining appropriate investment banking strategies. Therefore, sales and management teams need a reliable investment banking analyst to make sure that all transactions are executed in accordance with all applicable laws. Sales and management analysts are also responsible for the management team’s involvement in bank matters, particularly those involving potential investment banking customers.
Administrative tasks The majority of investment banking transactions involve communications, including interactions with other investment banking professionals and senior management, as well as with investment fund managers and custodians. In addition, investment banking analysts are often involved in managing investment account information, such as determining the correct balance level and frequency of payments to customers. Because administrative tasks are not the responsibility of individual investment bankers, analysts must perform a wide variety of tasks in order to effectively handle and coordinate all transactions. Among the many tasks that an investment banking analyst may need to perform is the following:
Interpreting Financial Market Prices The accuracy and consistency of financial market information is essential to investment banking. Because these price feeds are transmitted via electronic or manual means, they can be subject to errors and misinterpretations. To improve the accuracy and consistency of financial market information, investment analysts must become skilled at interpreting and documenting their findings. Specialized technical knowledge is required to interpret and evaluate historical data and current real time quotes.
Job Placement Finding a suitable job role is important for investment banking analysts. Job listings are available at investment banks and investment banking associations. They are also available online. Job listings are typically found on investment banking analyst job boards and through investment banking analyst career sites.
Internships A valuable tool for learning valuable investment banking skills is internship. Internships provide an investment banking analyst with the opportunity to gain firsthand experience and hands on training on a variety of topics related to the area of finance. Most finance positions require at least one year of internship; however, some require a full two years. There are investment banking internships at both public and private organizations.
Excel Workbooks A valuable tool for analyzing and comparing investment banking data, investment banking workbooks are spreadsheet-based worksheets used for presenting information to investment banking management and other team members. Excel workbooks allow analysts to perform complex statistical analysis and visual manipulation using simple, yet powerful formulas and functions. Excel also offers one-click access to frequently used calculators and data references. Excel is a widely used workbook software application used in businesses worldwide.