Getting a job in investment banking is difficult even during a strong economy. Barriers to entry are high. Banks target what they perceive to be the best candidates, recruiting at only the best schools and subjecting wanna-be bankers to the most grueling interview process.
In this economy, getting a job in finance is exceedingly competitive, let alone investment banking. With Street-wide layoffs and bank failures, the supply of labor is unusually high. Competition is fierce, as more candidates compete for a smaller pool of jobs.
What does this mean for you if you are currently seeking a job in FS? Jobs are out there, but they are fewer. However, some banks are seizing this economic downturn as an opportunity to hire good people.
Be ready to knock on what may seem like countless doors to find the right opportunity. Do not be surprised if you meet with firms and they are not quick to proceed with a formal interview process. Many firms are meeting with candidates, but are waiting to see how the economy will play out before making hiring decisions. As you go about your search, be mindful of the following:
Experienced candidates will have an edge in this market. Revisit your cv/resume
and make sure it highlights your experience as well as possible.
Do not limit your interviewing to just a few elite firms. Some midsize firms with little to no exposure to the mortgage markets are hiring.
Know your story cold. It is more important now than ever.
Know your fundamentals cold - accounting, valuation, M&A fundamentals, etc.
Leave no stone unturned. Contact alumni in the industry. Reach out to friends. Personal relationships will help open doors in this market.
Bankingorbust, LLC is here to help you through this tough period. Out team has compiled valuable information to help you find and succeed at a job in investment banking. It's FREE, so take advantage of it!
Friday, 20 February 2009
Investment Banking Basics
The meaning of investment banking is not the financial investment in the banking sector. But in fact, investment banking is a kind of banking function which is used to help clients in creating wealth and funds. The commercial banks use this type of banking in accord with sensible and practical use of the available resources. Not only this, investment banking and people engaged in this sector also provides advice on how to transact in business they are currently in. Through investment banking, companies can create funds in two ways. They can either draw on public funds from capital market by releasing the stock i.e. corporate finance or they can go to venture capitalists or private equities to become share holders in their company. The field of investment banking is also engaged in giving advice and consultation on how to manage various takeovers and merging i.e. [M&A] merger and acquisitions. They also provide companies with ideas on how to declare public offerings and manage their talents. The handling of mergers and acquisitions come under the corporate finance function of the investment banking. The margin between investment banking and other forms of banking has been very unclear for a long time now and for the same time; the function of this banking sector has grown to covering every field of wealth management process of corporate as well as individual persons. Corporate Finance: this is the sector where investment banking works and supports companies the most in getting extra money. Lets take an example that a company needs more money to finance the market research of a product to-be launched to stay forward in competition. Here, investment banking can help you by getting your company’s shares sold and raising funds for you. The other way, how an investment bank can get you money is by trading in stocks on behalf of their clients. [M&A] Merger and Acquisitions: this point doesn’t have any explanation and it can be defined only through an example. Let’s take an example of a company who is going strong in business and market and wish to buy another company just to add more authority to their name and business. Professionals from investment banking sector makes them realize that on merging; both these companies can be a great group and can acquire major part of the market and also the business. They also tell them what are the other benefits of getting merged and also what is the right time according to market conditions for both the companies to get merged into each other.
Investment Banking Offers
As we move further into summer internship season, many have asked me why they can get interviews but can never seem to get actual offers.Usually, they lack a hook. To get an investment banking job, it's not enough to show you can do the job well and have a serious interest in it.You have to show them that they need you more than you need them.Of course, this is never really true. You're just a resource. They're a $100 billion firm. But a hook makes them think differently, at least temporarily.What's A Hook?A hook makes you stand out from everyone else. It can be your extreme enthusiasm over the job that caused you to email them 59 days in a row. It can be the experience you had working at a Chinese Private Equity firm last summer. It might even be how you were a Varsity Athlete in that sport they've never heard of.But it can't be, "I really want to do banking so I can learn!" or, "I like the fast-paced environment!"Those are just standard reasons to say you want to do the job.When bankers interview you, they try to check off 3 boxes - 1) smart 2) can do the job 3) like him. A hook makes sure #3 is a "check."But I'm Just A Normal Person, How Can I Get A Hook?One good tactic is to make a connection with your interviewer by having similar interests, asking questions about some topic he or she likes, or having friends/alumni in common.This requires upfront research and isn't always possible. But when you can do it, it works well.Was your interviewer in the Marines? Maybe your brother/cousin/uncle was too. Was he in the industry where your dad/cousin/uncle works? Same undergraduate schools?No One Wants You Until Someone Wants You (Then Everyone Wants You)Everything is just high school all over again.Another "hook": Convince the firm that you have offers with other investment banks. When they find out others want you, they'll be afraid they're missing something and want you more.The correct answer to, "Are you interviewing with other firms?" is NEVER, "No." Even if you're not, never say, "no." Just be vague and say you are interviewing and considering several options.If you are indeed interviewing successfully with other firms, mention the names - this works especially well if they are competitors. Naming any of the bulge brackets when interviewing with a bulge bracket, for example, would give you a boost.
Career in Investment Banking
Besides being lucrative, Investment Banking is one of the most competitive areas for aspiring candidates to enter the banking industry. Mostly, investment banks seek to recruit candidates who come from top universities and business schools. In order to start a career in investment banking, you need to have excellent analytical abilities, communication skills and aptitude for numbers. Career OptionsInvestment banking is one of best options for candidates who possess drive, confidence and stamina. It is not meant for the feint of heart, as investment banking requires very a strong personality. Stamina and drive are both important, as financial services industry employee work long hours, particularly when they have to deal with deadlines. Generally, the working hours of an employee in investment banking ranges between 60 to 70 hours. However, during busy times, working hours may extend through the weekend. Investment banking is composed of different sectors within which you can choose a suitable career. Investment banks also have various divisions within different sectors. When applying to a bank, candidates should make up their mind about which area they would like to join. The choice of area depends on their abilities and interests. Some of the sectors in investment banking are as follows:Corporate Finance: Corporate finance includes a range of areas such as debt and equity capital, appropriate capital structures and mergers and acquisitions. Advisory services include sector specialists, who are supported by several general service teams. Sales And Trading: Sales and trading is considered to be one of the most popular areas of work in the field of investment banking. A number of employees are required to work within the sales and trading departments. The work calls for hard working people with the ability to think fast and make key decisions in just seconds. The basic role of a sales and trading employee is to inform clients about the opinion of the bank on certain assets and markets. As sales and trading staff spend most of their working hours in talking to clients, it is important for employees to have strong communication skills. Additionally, employees working in the sales and trading department in investment bank need to have a complete understanding of the research produced by their company. They should also be able to present sophisticated arguments in a convincing manner to a very sophisticated client base. Research: Employees working with the research department provide clients with up-to-date reports on certain areas of interest. Analysts in the research department specialize in a specific business sector or area, thereby developing reports that can be safely distributed to clients. Besides having effective analytical abilities, good analysts working with the research department in investment banking need to have effective communicative skills, ability to think clearly and present clear ideas with confidence to the clients. If you have a great amount of drive, determination and stamina, a career in investment banking could prove to be very lucrative, exciting and rewarding.
What is Investment Banking ?
Nature Of Work of Finance Professionals
A career in finance involves a whole range of functions, such as determining the impact of decisions that are made in nearly all functional areas on the financial front. This includes administering portfolios and formulating personal financial plans for investors, supervising banking operations, evaluating and suggesting company's capital budgets and strengthening bank relationships.
Professionals engaged in the finance industry deal with how individuals and institutions handle their financial resources, the methods they use to raise money, its allocation, and how they use it. They also assess the risks these activities involve, and recommend various ways of managing them.
Occupations in Finance
The finance sector has a wide range of occupations to choose from. You can become a portfolio or credit manager, security analyst, opt for the insurance sector, or become a corporate financial officer, financial consultant or lending officer. Below are some of the additional roles that you can pursue:
- Bank Manager- Financial Analyst- Accountant And Auditor- Appraiser and Assessor of Real Estate - Budget Analyst- Claim Adjuster- Examiner- Investigator - Cost Estimator - Tax Examiner- Revenue Agent
Job Opportunities in Finance
The job opportunities in the financial sector are equally vast and varied, a few of which are given here. All of them offer a highly rewarding and satisfying career.
Commercial Banking - The commercial banking sector employs a greater number of finance professionals than any other area of the financial services industry. Jobs in the banking industry have a direct client interface with people from all sections of the society, which offers opportunities for clientele development. The starting point would be as tellers, after which people shift to other areas of banking services like credit card banking, trade credit, leasing and international finance.
Corporate Finance - This would involve employment in a corporation, generally as a finance officer. The main job responsibilities would entail securing financial resources for developing the business of the company. The money can be utilized to make acquisitions to expand the company and secure its future.
Financial Planning Consultancy - You may set up a financial planning consultancy of your own or seek employment in an existing one. This work involves helping individuals in planning their finances for their children's education, or their retirement needs. It requires answering questions and educating clients about risk factors, to help them to invest their money wisely. Being employed in a corporate setting is also an option, with a job profile related to future financial planning. It would require a firm understanding of investments, estate and tax planning.
Investment Banking - Investment banking pertains to helping investors in buying, trading and managing financial assets. This field offers opportunities to work in world-renowned investment banks like Salomon Smith Barney, Goldman Sachs and Merrill Lynch.
Insurance - The insurance industry has achieved revenues of over trillion dollars. It is one field that has tremendous scope of absorbing finance professionals. The work is mainly about managing risks and identifying problem areas. According to estimates, it employed nearly two and a half million people in the U.S. in the year 2005. One could work as an underwriter, customer service representative, actuary or an asset manager, in this sector.
A career in finance can be pursued in a wide variety of fields. The financial sector offers opportunities that are intellectually and financially rewarding
A career in finance involves a whole range of functions, such as determining the impact of decisions that are made in nearly all functional areas on the financial front. This includes administering portfolios and formulating personal financial plans for investors, supervising banking operations, evaluating and suggesting company's capital budgets and strengthening bank relationships.
Professionals engaged in the finance industry deal with how individuals and institutions handle their financial resources, the methods they use to raise money, its allocation, and how they use it. They also assess the risks these activities involve, and recommend various ways of managing them.
Occupations in Finance
The finance sector has a wide range of occupations to choose from. You can become a portfolio or credit manager, security analyst, opt for the insurance sector, or become a corporate financial officer, financial consultant or lending officer. Below are some of the additional roles that you can pursue:
- Bank Manager- Financial Analyst- Accountant And Auditor- Appraiser and Assessor of Real Estate - Budget Analyst- Claim Adjuster- Examiner- Investigator - Cost Estimator - Tax Examiner- Revenue Agent
Job Opportunities in Finance
The job opportunities in the financial sector are equally vast and varied, a few of which are given here. All of them offer a highly rewarding and satisfying career.
Commercial Banking - The commercial banking sector employs a greater number of finance professionals than any other area of the financial services industry. Jobs in the banking industry have a direct client interface with people from all sections of the society, which offers opportunities for clientele development. The starting point would be as tellers, after which people shift to other areas of banking services like credit card banking, trade credit, leasing and international finance.
Corporate Finance - This would involve employment in a corporation, generally as a finance officer. The main job responsibilities would entail securing financial resources for developing the business of the company. The money can be utilized to make acquisitions to expand the company and secure its future.
Financial Planning Consultancy - You may set up a financial planning consultancy of your own or seek employment in an existing one. This work involves helping individuals in planning their finances for their children's education, or their retirement needs. It requires answering questions and educating clients about risk factors, to help them to invest their money wisely. Being employed in a corporate setting is also an option, with a job profile related to future financial planning. It would require a firm understanding of investments, estate and tax planning.
Investment Banking - Investment banking pertains to helping investors in buying, trading and managing financial assets. This field offers opportunities to work in world-renowned investment banks like Salomon Smith Barney, Goldman Sachs and Merrill Lynch.
Insurance - The insurance industry has achieved revenues of over trillion dollars. It is one field that has tremendous scope of absorbing finance professionals. The work is mainly about managing risks and identifying problem areas. According to estimates, it employed nearly two and a half million people in the U.S. in the year 2005. One could work as an underwriter, customer service representative, actuary or an asset manager, in this sector.
A career in finance can be pursued in a wide variety of fields. The financial sector offers opportunities that are intellectually and financially rewarding
Careers in Finance
Nature Of Work of Finance Professionals
A career in finance involves a whole range of functions, such as determining the impact of decisions that are made in nearly all functional areas on the financial front. This includes administering portfolios and formulating personal financial plans for investors, supervising banking operations, evaluating and suggesting company's capital budgets and strengthening bank relationships.
Professionals engaged in the finance industry deal with how individuals and institutions handle their financial resources, the methods they use to raise money, its allocation, and how they use it. They also assess the risks these activities involve, and recommend various ways of managing them.
Occupations in Finance
The finance sector has a wide range of occupations to choose from. You can become a portfolio or credit manager, security analyst, opt for the insurance sector, or become a corporate financial officer, financial consultant or lending officer. Below are some of the additional roles that you can pursue:
- Bank Manager- Financial Analyst- Accountant And Auditor- Appraiser and Assessor of Real Estate - Budget Analyst- Claim Adjuster- Examiner- Investigator - Cost Estimator - Tax Examiner- Revenue Agent
Job Opportunities in Finance
The job opportunities in the financial sector are equally vast and varied, a few of which are given here. All of them offer a highly rewarding and satisfying career.
Commercial Banking - The commercial banking sector employs a greater number of finance professionals than any other area of the financial services industry. Jobs in the banking industry have a direct client interface with people from all sections of the society, which offers opportunities for clientele development. The starting point would be as tellers, after which people shift to other areas of banking services like credit card banking, trade credit, leasing and international finance.
Corporate Finance - This would involve employment in a corporation, generally as a finance officer. The main job responsibilities would entail securing financial resources for developing the business of the company. The money can be utilized to make acquisitions to expand the company and secure its future.
Financial Planning Consultancy - You may set up a financial planning consultancy of your own or seek employment in an existing one. This work involves helping individuals in planning their finances for their children's education, or their retirement needs. It requires answering questions and educating clients about risk factors, to help them to invest their money wisely. Being employed in a corporate setting is also an option, with a job profile related to future financial planning. It would require a firm understanding of investments, estate and tax planning.
Investment Banking - Investment banking pertains to helping investors in buying, trading and managing financial assets. This field offers opportunities to work in world-renowned investment banks like Salomon Smith Barney, Goldman Sachs and Merrill Lynch.
Insurance - The insurance industry has achieved revenues of over trillion dollars. It is one field that has tremendous scope of absorbing finance professionals. The work is mainly about managing risks and identifying problem areas. According to estimates, it employed nearly two and a half million people in the U.S. in the year 2005. One could work as an underwriter, customer service representative, actuary or an asset manager, in this sector.
A career in finance can be pursued in a wide variety of fields. The financial sector offers opportunities that are intellectually and financially rewarding
A career in finance involves a whole range of functions, such as determining the impact of decisions that are made in nearly all functional areas on the financial front. This includes administering portfolios and formulating personal financial plans for investors, supervising banking operations, evaluating and suggesting company's capital budgets and strengthening bank relationships.
Professionals engaged in the finance industry deal with how individuals and institutions handle their financial resources, the methods they use to raise money, its allocation, and how they use it. They also assess the risks these activities involve, and recommend various ways of managing them.
Occupations in Finance
The finance sector has a wide range of occupations to choose from. You can become a portfolio or credit manager, security analyst, opt for the insurance sector, or become a corporate financial officer, financial consultant or lending officer. Below are some of the additional roles that you can pursue:
- Bank Manager- Financial Analyst- Accountant And Auditor- Appraiser and Assessor of Real Estate - Budget Analyst- Claim Adjuster- Examiner- Investigator - Cost Estimator - Tax Examiner- Revenue Agent
Job Opportunities in Finance
The job opportunities in the financial sector are equally vast and varied, a few of which are given here. All of them offer a highly rewarding and satisfying career.
Commercial Banking - The commercial banking sector employs a greater number of finance professionals than any other area of the financial services industry. Jobs in the banking industry have a direct client interface with people from all sections of the society, which offers opportunities for clientele development. The starting point would be as tellers, after which people shift to other areas of banking services like credit card banking, trade credit, leasing and international finance.
Corporate Finance - This would involve employment in a corporation, generally as a finance officer. The main job responsibilities would entail securing financial resources for developing the business of the company. The money can be utilized to make acquisitions to expand the company and secure its future.
Financial Planning Consultancy - You may set up a financial planning consultancy of your own or seek employment in an existing one. This work involves helping individuals in planning their finances for their children's education, or their retirement needs. It requires answering questions and educating clients about risk factors, to help them to invest their money wisely. Being employed in a corporate setting is also an option, with a job profile related to future financial planning. It would require a firm understanding of investments, estate and tax planning.
Investment Banking - Investment banking pertains to helping investors in buying, trading and managing financial assets. This field offers opportunities to work in world-renowned investment banks like Salomon Smith Barney, Goldman Sachs and Merrill Lynch.
Insurance - The insurance industry has achieved revenues of over trillion dollars. It is one field that has tremendous scope of absorbing finance professionals. The work is mainly about managing risks and identifying problem areas. According to estimates, it employed nearly two and a half million people in the U.S. in the year 2005. One could work as an underwriter, customer service representative, actuary or an asset manager, in this sector.
A career in finance can be pursued in a wide variety of fields. The financial sector offers opportunities that are intellectually and financially rewarding
The big investment banks
Most investors feel at some point during their investment career that the large institutional investors somehow have an upper hand or an advantage when it comes to investing in the financial markets. While this used to be the case the Internet and software developments have began to erode these advantages and allow individual investors to play on a level playing field with the professionals.
My experience in investment banking
Having been both a private individual investor as well as working in one of the worlds largest Investment Banks I have seen both sides of the proverbial fence.
Traditionally one of the main advantages Investment Banks have had is their experience. Even as traders retire, leave or get fired they always leave behind a trail of knowledge and experience that the business managers learn from and use to decide future trading or investment decisions. As an individual investor you can sometimes feel that you are so inexperienced in a particular investment type that it is too risky to proceed and invest. This effect can be described as a barrier to entry. Individual investors need a certain amount of knowledge of a market to be able to enter and trade.
Another area where the banks have an advantage is manpower. Traditionally traders in banks had an army of research analysts that will process and analyze huge amounts of market and company data in order to find profitable trades. In more recent years traders at financial institutions have increased this advantage by automating their research and stock picking using computers
My experience in investment banking
Having been both a private individual investor as well as working in one of the worlds largest Investment Banks I have seen both sides of the proverbial fence.
Traditionally one of the main advantages Investment Banks have had is their experience. Even as traders retire, leave or get fired they always leave behind a trail of knowledge and experience that the business managers learn from and use to decide future trading or investment decisions. As an individual investor you can sometimes feel that you are so inexperienced in a particular investment type that it is too risky to proceed and invest. This effect can be described as a barrier to entry. Individual investors need a certain amount of knowledge of a market to be able to enter and trade.
Another area where the banks have an advantage is manpower. Traditionally traders in banks had an army of research analysts that will process and analyze huge amounts of market and company data in order to find profitable trades. In more recent years traders at financial institutions have increased this advantage by automating their research and stock picking using computers
Is investment banking for you
The finance industry is one of the largest sectors in most developed economies and as such offers many opportunities to build an exciting and rewarding career. One area which attracts much attention is investment banking. It’s a high profile part of the industry because of the types of business that it specialises in – arranging stock market listings, mega-bond offerings and takeovers for businesses seeking financing and expansion. It is also one of the most lucrative areas in finance, commanding six figure salaries for first year. Accordingly, investment banking is a magnet for those seeking high flying careers. This article, part one of a three part series explores the investment banking industry including the good, the bad and the ugly.
Part one discusses some of the advantages and attractions of working in investment banking.
It’s in the money! Of course one of the top attractions for many is the potential money that comes attached to jobs in the industry. The industry demands a lot from the people that work in it both in ability and commitment. To attract top talent, the industry rolls out large pay packets. Bulge bracket firms such as Goldman Sachs, Morgan Stanley and Merrill Lynch can pay more than six figures for b-school grads. On top of that, there are sign-on and year-end bonuses that can double, triple or generate even higher multiples of base salary. At senior levels the compensation reaches even higher levels of the stratosphere – managing directors can expect as much as mid-seven figures in good years.
Another allure is the fast paced action on offer. There’s never a dull moment as an investment banker. The work involved in arranging share sales, bond offerings, acquisitions and sales of entire businesses is fast paced and complex where details and variables can change rapidly with movements in the markets. This presents a huge challenge for those delivering the goods and ensures that life is almost always moving quickly.
The prestige factor can also be attractive to some. The nature of the business often involves working with major public and private sector organisations, particularly at the leading investment banks. Deals can include initial public offerings of major industry players and soon-to-be market leaders. Depending on the industry and location, transactions can also be industry changing events such as privatisations of state controlled entities.
As an investment banker there is always the opportunity to meet and interact with senior people. Not only is this an opportunity to better understand how top people in a given industry think and operate, it can present opportunities at many points along the career path. On top of private sector contacts, there may also be interaction with senior government officials, especially in countries where the state maintains a high level of investment an industry. These all important connections can prove useful.
For those that are attracted to leadership and responsibility, investment banks do not disappoint. The rapid pace of the industry means that those progressing through the ranks can be given significant levels of responsibility. It is quite normal for those in their mid-thirties to be responsible for entire business units. Investment banking is a big plus for those that like to be boss, although it must be noted that there are many levels of management within the larger banks.
Finally, a career as an investment banker can offer the opportunity for extensive travel, whether it is between cities within the country or as is more and more common, across international borders. As bankers progress through VP and Managing Director levels, there is the requirement to spend more time cultivating and developing client relationships. Often this is done in different cities and different global locations. It can be exciting as well as enlightening to experience the different cultures and places located outside of your doorstep.
And there it is some of the main attractions for signing up as an investment banker Рmoney, travel, action, prestige, leadership and high level connections. Listed together these almost sound like a clich̩ for the original role of James Bond and perhaps explains why many ambitious graduates are so interested in pursuing investment banking careers.
In part two, the flipside is discussed. Yes, there is a downside. Find out the negatives of life as an investment banker "Investment Banking Questions II – is it for you?"
Part one discusses some of the advantages and attractions of working in investment banking.
It’s in the money! Of course one of the top attractions for many is the potential money that comes attached to jobs in the industry. The industry demands a lot from the people that work in it both in ability and commitment. To attract top talent, the industry rolls out large pay packets. Bulge bracket firms such as Goldman Sachs, Morgan Stanley and Merrill Lynch can pay more than six figures for b-school grads. On top of that, there are sign-on and year-end bonuses that can double, triple or generate even higher multiples of base salary. At senior levels the compensation reaches even higher levels of the stratosphere – managing directors can expect as much as mid-seven figures in good years.
Another allure is the fast paced action on offer. There’s never a dull moment as an investment banker. The work involved in arranging share sales, bond offerings, acquisitions and sales of entire businesses is fast paced and complex where details and variables can change rapidly with movements in the markets. This presents a huge challenge for those delivering the goods and ensures that life is almost always moving quickly.
The prestige factor can also be attractive to some. The nature of the business often involves working with major public and private sector organisations, particularly at the leading investment banks. Deals can include initial public offerings of major industry players and soon-to-be market leaders. Depending on the industry and location, transactions can also be industry changing events such as privatisations of state controlled entities.
As an investment banker there is always the opportunity to meet and interact with senior people. Not only is this an opportunity to better understand how top people in a given industry think and operate, it can present opportunities at many points along the career path. On top of private sector contacts, there may also be interaction with senior government officials, especially in countries where the state maintains a high level of investment an industry. These all important connections can prove useful.
For those that are attracted to leadership and responsibility, investment banks do not disappoint. The rapid pace of the industry means that those progressing through the ranks can be given significant levels of responsibility. It is quite normal for those in their mid-thirties to be responsible for entire business units. Investment banking is a big plus for those that like to be boss, although it must be noted that there are many levels of management within the larger banks.
Finally, a career as an investment banker can offer the opportunity for extensive travel, whether it is between cities within the country or as is more and more common, across international borders. As bankers progress through VP and Managing Director levels, there is the requirement to spend more time cultivating and developing client relationships. Often this is done in different cities and different global locations. It can be exciting as well as enlightening to experience the different cultures and places located outside of your doorstep.
And there it is some of the main attractions for signing up as an investment banker Рmoney, travel, action, prestige, leadership and high level connections. Listed together these almost sound like a clich̩ for the original role of James Bond and perhaps explains why many ambitious graduates are so interested in pursuing investment banking careers.
In part two, the flipside is discussed. Yes, there is a downside. Find out the negatives of life as an investment banker "Investment Banking Questions II – is it for you?"
Investment banking in Switzerland
Switzerland has been the world's largest offshore tax haven for some time. For wealthier individuals there are guarantees and assurances that other offshore banking jurisdictions do not have. They are specifically designed for the ultra wealthy.
Swiss banks are also regarded by far as the most secure and stable as they have the safest asset holdings along with the asset prosperity provided to their clients. This makes opening an investment bank account with a Swiss bank all the more enticing for those who are privileged. When a Swiss bank account is opened, the individual opening the account will be privy to undisputed personal service and wealth protection which is unmatched by any other Bank in the world.
The opening of a Swiss bank account is far simpler than you might think. Even many of the most prestigious offshore Swiss banks have simple application processes. You will be able to do the all the same account transactions as you can onshore.
Indeed opening an offshore investment account in Switzerland is the most important step you can take for both wealth growth and wealth protection.
Opening a Swiss bank account with deposits in the range of $300,000 would be best to set up in person. Some Swiss banks will send out their own representative for large sums to deposit at a clients place of choice. If you are setting up a Swiss bank account through the mail, you will first be required to follow these steps:
Request the forms you will need to open the account.
Have your signature verified at a Swiss Consulate, or by visiting any affiliated banks in Switzerland.
The procedure to open a Swiss bank account is similar in nature to opening a securities account with a few procedural policies in place, which is the same as what any financial institution goes through.
Swiss bankers have always had a solid reputation for managing many different investment portfolios and as such provide the following services:
Investment planning
Estate planning
Wealth management
Trust company establishment
Gold numismatics
Derivatives
Confidential brokerage accounts
To ensure your privacy and confidentiality, every Swiss banking employee must sign the bank act's secrecy portion as a condition of their employment. Of special note, the banking act also stipulates that it is a criminal offence, with a possible jail sentence imposed for any employee or agent of the bank, if they have been found to divulge any confidential information at any time. In cases put before the courts and in general banking practices, this portion of the banking law has stipulated it is a serious offense, punishable by both fines and jail time, to divulge any customer information to any third party. This includes official requests from foreign governments. This makes opening an offshore investment bank account in Switzerland all the more attractive.
To open a Swiss investment account, the following requirements must be met: by most Swiss banks:
$300,000 minimum opening balance in order to establish an account.
A notarized copy of your passport.
Reference letters from two different sources.
Every client is required to fill out a "know your client" form.
A signed 'Source of Funds' form must be filled out by each applicant.
Once these requirements are met by the individual or offshore company, the account can then be set up at the Swiss investment bank.
Swiss banks are also regarded by far as the most secure and stable as they have the safest asset holdings along with the asset prosperity provided to their clients. This makes opening an investment bank account with a Swiss bank all the more enticing for those who are privileged. When a Swiss bank account is opened, the individual opening the account will be privy to undisputed personal service and wealth protection which is unmatched by any other Bank in the world.
The opening of a Swiss bank account is far simpler than you might think. Even many of the most prestigious offshore Swiss banks have simple application processes. You will be able to do the all the same account transactions as you can onshore.
Indeed opening an offshore investment account in Switzerland is the most important step you can take for both wealth growth and wealth protection.
Opening a Swiss bank account with deposits in the range of $300,000 would be best to set up in person. Some Swiss banks will send out their own representative for large sums to deposit at a clients place of choice. If you are setting up a Swiss bank account through the mail, you will first be required to follow these steps:
Request the forms you will need to open the account.
Have your signature verified at a Swiss Consulate, or by visiting any affiliated banks in Switzerland.
The procedure to open a Swiss bank account is similar in nature to opening a securities account with a few procedural policies in place, which is the same as what any financial institution goes through.
Swiss bankers have always had a solid reputation for managing many different investment portfolios and as such provide the following services:
Investment planning
Estate planning
Wealth management
Trust company establishment
Gold numismatics
Derivatives
Confidential brokerage accounts
To ensure your privacy and confidentiality, every Swiss banking employee must sign the bank act's secrecy portion as a condition of their employment. Of special note, the banking act also stipulates that it is a criminal offence, with a possible jail sentence imposed for any employee or agent of the bank, if they have been found to divulge any confidential information at any time. In cases put before the courts and in general banking practices, this portion of the banking law has stipulated it is a serious offense, punishable by both fines and jail time, to divulge any customer information to any third party. This includes official requests from foreign governments. This makes opening an offshore investment bank account in Switzerland all the more attractive.
To open a Swiss investment account, the following requirements must be met: by most Swiss banks:
$300,000 minimum opening balance in order to establish an account.
A notarized copy of your passport.
Reference letters from two different sources.
Every client is required to fill out a "know your client" form.
A signed 'Source of Funds' form must be filled out by each applicant.
Once these requirements are met by the individual or offshore company, the account can then be set up at the Swiss investment bank.
Do Bankers deserve a bonus
There was yet another shock for the UK banking sector on Friday with the Lloyds Banking group making a statement stating that their losses are likely to be in the region on ten billion, yes ten billion! I keep reading that there is a good chance that the top brass of the banking sector workers are still going to receive their bonus. How can this be? Talk about rewarding failure. So is this acceptable? In this article I will be giving my opinion on this much debated topic.
I remember the days when you could seemingly fully trust your bank with your money and when they were also a good form of investment. Their management were always the most respected of businessmen who would be prudent with their financial transactions. This is no longer the case. It is as if they have left their own guidelines in the cupboard and that they are now gambling with our money. They have been seeking short term profits rather than investing for the longer term. I am sure that my own personal adviser once stated to me that this investment (I had just signed up for a stocks and shares ISA) should be seen as a long term investment, how ironic is that. This adviser worked for the then Lloyds Bank, now known as the Lloyds Banking Group, it is a shame that their senior management did not practice what they preach.
I was watching, with interest, the main men from these banks apologising on the television last week. It was pitiful, they were eager for our forgiveness and pointed out that they had learned from their mistakes and that it would never happen again. So should we forgive and forget? Well would they forgive you if you missed a payment on your mortgage? Would they forgive you if you went overdrawn? I doubt it, they would impose charges and may even repossess your house. But what if you apologised and stated that you had learnt from your previous mistakes etc? It would make absolutely no difference!
As for their bonuses, there is no way that they should be paid any form of bonus. They have failed, they have let down their shareholders, they have let down many small businesses, they have let down the whole country. They should be ashamed of themselves.
I remember the days when you could seemingly fully trust your bank with your money and when they were also a good form of investment. Their management were always the most respected of businessmen who would be prudent with their financial transactions. This is no longer the case. It is as if they have left their own guidelines in the cupboard and that they are now gambling with our money. They have been seeking short term profits rather than investing for the longer term. I am sure that my own personal adviser once stated to me that this investment (I had just signed up for a stocks and shares ISA) should be seen as a long term investment, how ironic is that. This adviser worked for the then Lloyds Bank, now known as the Lloyds Banking Group, it is a shame that their senior management did not practice what they preach.
I was watching, with interest, the main men from these banks apologising on the television last week. It was pitiful, they were eager for our forgiveness and pointed out that they had learned from their mistakes and that it would never happen again. So should we forgive and forget? Well would they forgive you if you missed a payment on your mortgage? Would they forgive you if you went overdrawn? I doubt it, they would impose charges and may even repossess your house. But what if you apologised and stated that you had learnt from your previous mistakes etc? It would make absolutely no difference!
As for their bonuses, there is no way that they should be paid any form of bonus. They have failed, they have let down their shareholders, they have let down many small businesses, they have let down the whole country. They should be ashamed of themselves.
Banking Investments
The most secure of investments are banking investments. Banking investments encompass many different types of investments, none of which yield high interest rates. Although, with compound interest rates, they over a period of time will continue to rise steadily.
Most people who have an investment portfolio know to diversify their portfolio so that they have some high risk investments such as stocks, and some secure investments such as banking investments. When you first start out investing, you should have more of a risk in your investment portfolio. As you get closer to retirement age, you should have less of a risk.
Banking investments include money market accounts, certificates of deposit, savings accounts and even IRA accounts. Certificates of deposit generally have the highest rate of return. The longer you agree to keep the certificate of deposit in the bank, the more of an interest rate that you will earn. Right now, the interest rates are very low when it comes to banking investments so it is not a good idea to lock in for a long time. When interest rates were 17 percent, it was a good idea to invest. Although when interest rates were 17 percent, few people had any money.
A money market account allows you to have the flexibility of taking your money out of the account when you need it but still earning a higher interest rate than a regular savings account. The difference is that the regular savings account will have a lower minimum balance than a money market account. There are some money market accounts that are available for $1,000 but most want a minimum balance of $10,000. Savings accounts, on the other hand, have a minimum balance that varies. Some banks will open up a savings account for less than $100.
If you are self employed, you can use banking investments to save for your future. Most banks have financial advisors that you can use to help you make investments, including IRA accounts. IRA accounts are a tax deductible which means that every time you put money into an IRA account, you can make a tax deduction on your income tax. You can put in a certain amount each year into an IRA account and it earns you tax deferred interest.
After the depression, many people distrusted banks. This was because during this time, many banks failed and people lost their money. But today the banking investments are guaranteed by the federal government. Today, because we have access to the internet, we are able to make banking investments right online. You can even open a money market account online without having to take a trip to the bank. And if you want, you can open up banking investments in an offshore account. When you open up an offshore account, the interest that you earn is tax free as it does not get reported to the IRS. For this reason, many people who want to open banking investments, do so with off shore accounts.
Most people who have an investment portfolio know to diversify their portfolio so that they have some high risk investments such as stocks, and some secure investments such as banking investments. When you first start out investing, you should have more of a risk in your investment portfolio. As you get closer to retirement age, you should have less of a risk.
Banking investments include money market accounts, certificates of deposit, savings accounts and even IRA accounts. Certificates of deposit generally have the highest rate of return. The longer you agree to keep the certificate of deposit in the bank, the more of an interest rate that you will earn. Right now, the interest rates are very low when it comes to banking investments so it is not a good idea to lock in for a long time. When interest rates were 17 percent, it was a good idea to invest. Although when interest rates were 17 percent, few people had any money.
A money market account allows you to have the flexibility of taking your money out of the account when you need it but still earning a higher interest rate than a regular savings account. The difference is that the regular savings account will have a lower minimum balance than a money market account. There are some money market accounts that are available for $1,000 but most want a minimum balance of $10,000. Savings accounts, on the other hand, have a minimum balance that varies. Some banks will open up a savings account for less than $100.
If you are self employed, you can use banking investments to save for your future. Most banks have financial advisors that you can use to help you make investments, including IRA accounts. IRA accounts are a tax deductible which means that every time you put money into an IRA account, you can make a tax deduction on your income tax. You can put in a certain amount each year into an IRA account and it earns you tax deferred interest.
After the depression, many people distrusted banks. This was because during this time, many banks failed and people lost their money. But today the banking investments are guaranteed by the federal government. Today, because we have access to the internet, we are able to make banking investments right online. You can even open a money market account online without having to take a trip to the bank. And if you want, you can open up banking investments in an offshore account. When you open up an offshore account, the interest that you earn is tax free as it does not get reported to the IRS. For this reason, many people who want to open banking investments, do so with off shore accounts.
Investment Banking Wages
Just how much do investment bankers actually earn? Most of the people who want to break into investment banking have no idea how much money is really involved.
Sure, the Managing Directors and other senior people make several million a year on average; group heads can make $10 million or more. And the CEO of an investment bank can make upwards of $20 million, with Goldman Sachs CEO Lloyd Blankfein making over $70 million in 2007.
But what does an entry-level investment banker - an investment banking analyst - actually make?
Making six figures as a 23-year old just out of college is nice, but if you have to work 120 hours per week, you can't possibly be making that much per hour, right?
I honestly didn't know, so I had to investigate this and do some math myself.
Could you actually make more working at McDonald's than you could at Goldman Sachs, at least on an hourly basis?
Best Case Scenario
For investment banking analysts, the best case scenario ever happened in 2007. Base salaries were $60,000 and bonuses were $90,000, for a total of $150,000 in compensation. Again, not bad for a 23-year old's first "real-world job."
But what about the hours? Typically, entry-level bankers work around 90-100 hours per week in their first year. This could be off by a bit, but we'll go with it for now.
With 52 weeks of work per year (nope, no vacation) and 90 hours per week, you would have earned $32.05 per hour in the 2006-2007 year. If you had worked 100 hours, that would have dropped to $28.85.
Even if you had worked 140 hours a week, every week, you would still be at $20.60 per hour. And realistically it's impossible to work that much consistently, so you could have only done better than that.
But times have not always been that good. After the dot com crash and at the start of the last major recession, investment banking took a turn for the worst and bonuses disappeared.
The Dark Ages: 2001-2002
In 2001-2002, Analysts were lucky to get $10,000 for their bonuses. They still worked a lot, but mostly on marketing and pitching clients rather than doing deals and bringing in revenue.
A $10,000 bonus and $60,000 salary means $14.96 per hour at 90 hours a week. Believe it or not, that's still above McDonald's wages and is actually not even that bad relative to a lot of jobs in the US.
But if you had worked 140 hours per week, consistently, back then?
You would have made 9.62 per hour.
McDonald's Wages
According to a Wiki Answers page on McDonald's, the wage is $9.30/hour for those under 17 and $9.57/hour after "4 months of training."
This is a very low wage, and it looks like even in the worst possible years of investment banking, hourly analyst wages never dropped this low.
The Absolute Minimum
Actually, the above is not strictly true. What if you earned $0 for the bonus and only made the base salary of $60,000 while working 140 hours each week?
That would be $8.24 per hour. Finally: below McDonald's wages.
So theoretically it is possible to earn less than a McDonald's worker as an investment banking analyst, though not terribly likely.
It could only happen if you worked a ridiculous amount in the very worst years of investment banking and got absolutely nothing for your bonus.
Even with a looming US recession, this scenario seems unlikely to return anytime soon. So your hourly wages as an investment banking analyst should be safe.
Sure, the Managing Directors and other senior people make several million a year on average; group heads can make $10 million or more. And the CEO of an investment bank can make upwards of $20 million, with Goldman Sachs CEO Lloyd Blankfein making over $70 million in 2007.
But what does an entry-level investment banker - an investment banking analyst - actually make?
Making six figures as a 23-year old just out of college is nice, but if you have to work 120 hours per week, you can't possibly be making that much per hour, right?
I honestly didn't know, so I had to investigate this and do some math myself.
Could you actually make more working at McDonald's than you could at Goldman Sachs, at least on an hourly basis?
Best Case Scenario
For investment banking analysts, the best case scenario ever happened in 2007. Base salaries were $60,000 and bonuses were $90,000, for a total of $150,000 in compensation. Again, not bad for a 23-year old's first "real-world job."
But what about the hours? Typically, entry-level bankers work around 90-100 hours per week in their first year. This could be off by a bit, but we'll go with it for now.
With 52 weeks of work per year (nope, no vacation) and 90 hours per week, you would have earned $32.05 per hour in the 2006-2007 year. If you had worked 100 hours, that would have dropped to $28.85.
Even if you had worked 140 hours a week, every week, you would still be at $20.60 per hour. And realistically it's impossible to work that much consistently, so you could have only done better than that.
But times have not always been that good. After the dot com crash and at the start of the last major recession, investment banking took a turn for the worst and bonuses disappeared.
The Dark Ages: 2001-2002
In 2001-2002, Analysts were lucky to get $10,000 for their bonuses. They still worked a lot, but mostly on marketing and pitching clients rather than doing deals and bringing in revenue.
A $10,000 bonus and $60,000 salary means $14.96 per hour at 90 hours a week. Believe it or not, that's still above McDonald's wages and is actually not even that bad relative to a lot of jobs in the US.
But if you had worked 140 hours per week, consistently, back then?
You would have made 9.62 per hour.
McDonald's Wages
According to a Wiki Answers page on McDonald's, the wage is $9.30/hour for those under 17 and $9.57/hour after "4 months of training."
This is a very low wage, and it looks like even in the worst possible years of investment banking, hourly analyst wages never dropped this low.
The Absolute Minimum
Actually, the above is not strictly true. What if you earned $0 for the bonus and only made the base salary of $60,000 while working 140 hours each week?
That would be $8.24 per hour. Finally: below McDonald's wages.
So theoretically it is possible to earn less than a McDonald's worker as an investment banking analyst, though not terribly likely.
It could only happen if you worked a ridiculous amount in the very worst years of investment banking and got absolutely nothing for your bonus.
Even with a looming US recession, this scenario seems unlikely to return anytime soon. So your hourly wages as an investment banking analyst should be safe.
From Law to Investment Banking
How To Work In Law And Then Switch To Banking
You need to Corporate Law. Don't even think about Intellectual Property, Litigation, or anything else. Do Corporate Law.
Recruiting is ultimately a numbers game, and you increase your odds greatly if you have Corporate, Securities, or M&A legal experience.
Once you have a few years experience working on transactions, you can consider switching into finance.
Contact all your friends in the industry and ask for referrals to recruiters; contact former clients and ask about setting up informational meetings or discussing opportunities at their firms.
Target industries and clients you have experience with. If you worked with a lot of technology companies, go for technology investment banking firms; if you did Mergers And Acquisitions, go for the M&A departments at banks.
Also, try for boutiques and middle-market firms rather than bulge brackets unless you work at one of the top few law firms - it will be much easier to get into smaller places.
How To Sell Your Story In Interviews
With a Corporate Law background, there are 2 main points you'll need to prove: 1) that you have quantitative and finance skills and 2) that you really want to make a big career change even if you're on Partner track at your law firm.
You really need to focus on financial skills in your interview preparations. Know the 3 financial statements cold. Be able to explain models and valuation methods because they will ask you tons of questions here, especially if you were an English or History major and have no finance experience.
This is one of the few cases where getting a CFA might actually help you get into investment banking - it would give you the finance knowledge and show your interest in the field.
Making the case for a career change can actually be easier. You want to emphasize you were always interested in corporate finance and dealmaking, and went into Corporate Law for those reasons. However, you got frustrated with your inability to BE the dealmaker and how you had to just sit on the sidelines, and so now you want to switch into banking and be a player
You need to Corporate Law. Don't even think about Intellectual Property, Litigation, or anything else. Do Corporate Law.
Recruiting is ultimately a numbers game, and you increase your odds greatly if you have Corporate, Securities, or M&A legal experience.
Once you have a few years experience working on transactions, you can consider switching into finance.
Contact all your friends in the industry and ask for referrals to recruiters; contact former clients and ask about setting up informational meetings or discussing opportunities at their firms.
Target industries and clients you have experience with. If you worked with a lot of technology companies, go for technology investment banking firms; if you did Mergers And Acquisitions, go for the M&A departments at banks.
Also, try for boutiques and middle-market firms rather than bulge brackets unless you work at one of the top few law firms - it will be much easier to get into smaller places.
How To Sell Your Story In Interviews
With a Corporate Law background, there are 2 main points you'll need to prove: 1) that you have quantitative and finance skills and 2) that you really want to make a big career change even if you're on Partner track at your law firm.
You really need to focus on financial skills in your interview preparations. Know the 3 financial statements cold. Be able to explain models and valuation methods because they will ask you tons of questions here, especially if you were an English or History major and have no finance experience.
This is one of the few cases where getting a CFA might actually help you get into investment banking - it would give you the finance knowledge and show your interest in the field.
Making the case for a career change can actually be easier. You want to emphasize you were always interested in corporate finance and dealmaking, and went into Corporate Law for those reasons. However, you got frustrated with your inability to BE the dealmaker and how you had to just sit on the sidelines, and so now you want to switch into banking and be a player
Investment Banking
Most people think that regular banks and investment banks operate in the same way. In actuality, they are two distinct entities. Regular banks offer the public products, such as loans and deposits, while investment banks offer services, such as raising capital, providing investment advice, and the like. In investment banking, the risks are greater. In order to ensure the success of such endeavors, these institutions develop what many people call Investment Banking BSC, also known as investment banking balanced scorecards.
There are many factors to consider in developing a well-balanced scorecard. One has to take into consideration that investment banking is unlike any other industry. In this industry, the risks are indeed great so sets of standards must be defined in order to draw a distinct line between right and wrong. Another aspect to consider and include in the balanced scorecard are key performance indicators. Although these indicators may vary from one bank to another depending on their individual goals and objectives, some of these indicators can be applied to all.
One key performance indicator that should be included in the scorecard is the financial perspective. This aspect will cover a whole bunch of sub-aspects, such as ROI, average rise in investments, proportion of revenue contributed by each service being offered, and many others. Basically, this covers the whole profit generating function of the bank itself. These indicators tell you if the bank is healthy or not. They also help ensure a strong financial foundation for the bank.
The second indicator that banks should include in the scorecard is risk. There are many ways to calculate and evaluate risk. Risk evaluation is an extremely important part of investment banking because the industry itself is subject to the whims of the market as a whole. The ups and downs in the stock market will greatly influence the whole performance of the bank. Bearing this fact in mind, it would be prudent and wise to ensure that the risk evaluation capability of your bank is good.
Internal operations perspective is the third aspect that should be included in the scorecard. This aspect fates the efficiency and performance of internal operations of the bank from marketing to services offered to clients. Since this indicator is quite broad and covers the whole bank, periodic evaluations should also be carried out to ensure that it is able to cover all the operations of the bank.
Finally, the last aspect to include in a well-balanced scorecard is growth perspective. As with any other business or industry, growth is always one of the main objectives. The purpose of such indicator is to know if the goals are attainable in a given time frame.
In this industry, compromising one's performance is never an option. Specific parameters must be set up and strictly followed with the utmost vigor and zest. The risks are too great to be complacent. This is where investment banking BSC comes into the picture. This proper use of this managerial tool ensures the survivability and the success of the bank as a whole and a successful bank also means a strong economy
There are many factors to consider in developing a well-balanced scorecard. One has to take into consideration that investment banking is unlike any other industry. In this industry, the risks are indeed great so sets of standards must be defined in order to draw a distinct line between right and wrong. Another aspect to consider and include in the balanced scorecard are key performance indicators. Although these indicators may vary from one bank to another depending on their individual goals and objectives, some of these indicators can be applied to all.
One key performance indicator that should be included in the scorecard is the financial perspective. This aspect will cover a whole bunch of sub-aspects, such as ROI, average rise in investments, proportion of revenue contributed by each service being offered, and many others. Basically, this covers the whole profit generating function of the bank itself. These indicators tell you if the bank is healthy or not. They also help ensure a strong financial foundation for the bank.
The second indicator that banks should include in the scorecard is risk. There are many ways to calculate and evaluate risk. Risk evaluation is an extremely important part of investment banking because the industry itself is subject to the whims of the market as a whole. The ups and downs in the stock market will greatly influence the whole performance of the bank. Bearing this fact in mind, it would be prudent and wise to ensure that the risk evaluation capability of your bank is good.
Internal operations perspective is the third aspect that should be included in the scorecard. This aspect fates the efficiency and performance of internal operations of the bank from marketing to services offered to clients. Since this indicator is quite broad and covers the whole bank, periodic evaluations should also be carried out to ensure that it is able to cover all the operations of the bank.
Finally, the last aspect to include in a well-balanced scorecard is growth perspective. As with any other business or industry, growth is always one of the main objectives. The purpose of such indicator is to know if the goals are attainable in a given time frame.
In this industry, compromising one's performance is never an option. Specific parameters must be set up and strictly followed with the utmost vigor and zest. The risks are too great to be complacent. This is where investment banking BSC comes into the picture. This proper use of this managerial tool ensures the survivability and the success of the bank as a whole and a successful bank also means a strong economy
Investment Banking
The primary idea that one should find out in investment banking 101 is the definition of what investment banking really is. To put it simply, an investment bank is actually a financial organization that underwrites for those government sectors and corporations who issue securities such as bonds, stocks, and treasury bills. They also provide brokerage services as well as financial solutions or advisory services to various companies and clients. These banks handle matters such as mergers, acquisitions, private equity placements and corporate restructuring. These investment banks work essentially only with particular kinds of clients and they do not normally provide their expert services to either private individuals or even small businesses. For the transactions of small businesses and private individuals, they would have to seek assistance from a personal or a commercial bank.
In the investment banking world, there are two various kinds of firms or corporations. The first one is called the bulge bracket firm. These bulge bracket firms actually comprise roughly from 15,000 up to 50,000 employees that are located all throughout the world. The second kind of firm in the industry of investment banking is called the boutique firm. These boutique firms use the services of only around 500 to 3,000 employees. People would discover that working for one of the bulge bracket firms is vastly different from working with one of the boutique firms. Of course, since people have varying ideas and preferences, diverse people also have different inclinations as to which certain kind of firm they would want to become a part of.
As with anything else, one could do with learning first how to bag a job in the investment banking industry before even considering it as one of several career possibilities. Of course, the very least that one should have is a Bachelors degree. This is actually required but MBA degrees are much preferred by numerous organizations. A major tip in investment banking 101 is that before stepping to senior year, it is very much recommended that a person should take first a summer internship. It would be best if one could take the internship at the very firm at which the person would want to work after college, if it is possible. It is only natural that the best internships would be very competitive or even cutthroat because the Human Resources personnel or recruiters more often than not prefer to choose from all their summer interns when they are filling any vacant position. It is the objective of every summer intern to not only be able to obtain some job experience in their chosen fields, but they also attempt to get hold of a job offer so that they are all set after graduation.
One other important thing that one would need to understand in investment banking 101 is practically the most important one, which is the promotion structure. This way, one would be able to set the goals and try to follow the chosen career path the best way that a person could. Fresh graduates armed with a Bachelors degree basically start off as invest banking analysts. From there, once they have completed their Masters Degree program, they would then go on to a higher position as an investment banking associate. Of course, these associates would be able to make more money as well as have a higher rank than simple investment banking analysts. After one passes the associate level, what comes next is the Vice President level, and then this is followed by the Managing Director level. Truly, there is an immense possibility for advancement in the investment banking career. The key step towards a bright future ahead is to get the right education as well as proper training to jumpstart one's career in investment banking.
In the investment banking world, there are two various kinds of firms or corporations. The first one is called the bulge bracket firm. These bulge bracket firms actually comprise roughly from 15,000 up to 50,000 employees that are located all throughout the world. The second kind of firm in the industry of investment banking is called the boutique firm. These boutique firms use the services of only around 500 to 3,000 employees. People would discover that working for one of the bulge bracket firms is vastly different from working with one of the boutique firms. Of course, since people have varying ideas and preferences, diverse people also have different inclinations as to which certain kind of firm they would want to become a part of.
As with anything else, one could do with learning first how to bag a job in the investment banking industry before even considering it as one of several career possibilities. Of course, the very least that one should have is a Bachelors degree. This is actually required but MBA degrees are much preferred by numerous organizations. A major tip in investment banking 101 is that before stepping to senior year, it is very much recommended that a person should take first a summer internship. It would be best if one could take the internship at the very firm at which the person would want to work after college, if it is possible. It is only natural that the best internships would be very competitive or even cutthroat because the Human Resources personnel or recruiters more often than not prefer to choose from all their summer interns when they are filling any vacant position. It is the objective of every summer intern to not only be able to obtain some job experience in their chosen fields, but they also attempt to get hold of a job offer so that they are all set after graduation.
One other important thing that one would need to understand in investment banking 101 is practically the most important one, which is the promotion structure. This way, one would be able to set the goals and try to follow the chosen career path the best way that a person could. Fresh graduates armed with a Bachelors degree basically start off as invest banking analysts. From there, once they have completed their Masters Degree program, they would then go on to a higher position as an investment banking associate. Of course, these associates would be able to make more money as well as have a higher rank than simple investment banking analysts. After one passes the associate level, what comes next is the Vice President level, and then this is followed by the Managing Director level. Truly, there is an immense possibility for advancement in the investment banking career. The key step towards a bright future ahead is to get the right education as well as proper training to jumpstart one's career in investment banking.
Banking Investments
Managing all the wealth that you have made by working hard is very important. Investment management is the best way to achieve all your personal and professional financial goals. Investing refers to saving one's assets such as property, capital goods, or money. Banking investments are those investments that help you to increase your bottom line. Investing in banking includes mutual funds, bonds, options, and stocks. In addition to these, other types of investments that are available to you are savings accounts, money market deposit accounts, annuities, insurance, tax sheltered investments and CDs (Certificates of Deposit). You have the option to select according to your investment area of interest. Even though the interest rates are low, you can store all emergency funds in your savings account so that you can easily withdraw them whenever needed. CDs provide a better interest rate than a savings account, and they are called as a very low risk financial vehicle.
You can even do banking investments online. While dealing with investments online, always select an experienced company with a good track record. There are many companies that support these trading processes 24 hours a day. There are certain points to be remembered while opting for a banking investment. The first step is to select a long term investment plan. The next step is to stay ahead of inflation by keeping track with the increase in inflationary price. Also keep a systematic investing plan by regularly investing a particular amount.
The next important step is to diversify your assets across a range of investment styles and types. This is done in order to manage your portfolio's risk effectively. Try to generate more earnings from interest, dividends, and capital gains to ease all tax burdens. Also avoid some of the common pitfalls that can occur during the investment process. The frequent pitfalls that occur are having no plan, not making the proper use of your plan, and procrastination.
You can even do banking investments online. While dealing with investments online, always select an experienced company with a good track record. There are many companies that support these trading processes 24 hours a day. There are certain points to be remembered while opting for a banking investment. The first step is to select a long term investment plan. The next step is to stay ahead of inflation by keeping track with the increase in inflationary price. Also keep a systematic investing plan by regularly investing a particular amount.
The next important step is to diversify your assets across a range of investment styles and types. This is done in order to manage your portfolio's risk effectively. Try to generate more earnings from interest, dividends, and capital gains to ease all tax burdens. Also avoid some of the common pitfalls that can occur during the investment process. The frequent pitfalls that occur are having no plan, not making the proper use of your plan, and procrastination.
Investment Banking
Investment banks, as opposed to commercial banks, assist public and private corporations in raising funds in the Capital Markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions.
Indeed the original purpose of an investment bank was to raise capital and advise on mergers and acquisitions and other corporate financial strategies. As banking firms have been performing diversified activities, investment banks have come to fill a variety of roles including underwriting and distributing new security issues, offering brokerage services to public & institutional investors, providing financial advice to corporate clients, especially on security issues, providing advices on merger and acquisition deals, providing financial security research to investors and corporate customers etc. Investment banks have also moved into foreign currency exchange, private banking, and bridge financing.
A key role of investment banks is to advise companies in raising money or funds. There are two ways of raising funds that investment bankers typically engage in: raising funds through the capital markets and raising funds through private placements. Investment bankers can raise funds in capital markets in two ways. They can sell the company's equities in the stock market in an initial public offering (IPO) or secondary offering, or they can give advices on debt issues to the companies. Investment bankers also advise companies on private placements, which mean purchase or sale of corporate securities by private companies or individuals. Types of private placement transactions include venture capital investments, strategic investments by companies, private equity investments, private debt placements, acquisitions, divestitures, and merchant banking.
Investment banks possess an extensive network of industry and financial contacts, current market knowledge, legal processes and comparable market events that will make their clients to create an edge to their competitors. Some of the major global public and private investment banks are ABN Amro, Banc of America Securities, Barclays Capital, Bear Stearns, BNP Paribas, Brown Brothers Harriman and Calyon.
Indeed the original purpose of an investment bank was to raise capital and advise on mergers and acquisitions and other corporate financial strategies. As banking firms have been performing diversified activities, investment banks have come to fill a variety of roles including underwriting and distributing new security issues, offering brokerage services to public & institutional investors, providing financial advice to corporate clients, especially on security issues, providing advices on merger and acquisition deals, providing financial security research to investors and corporate customers etc. Investment banks have also moved into foreign currency exchange, private banking, and bridge financing.
A key role of investment banks is to advise companies in raising money or funds. There are two ways of raising funds that investment bankers typically engage in: raising funds through the capital markets and raising funds through private placements. Investment bankers can raise funds in capital markets in two ways. They can sell the company's equities in the stock market in an initial public offering (IPO) or secondary offering, or they can give advices on debt issues to the companies. Investment bankers also advise companies on private placements, which mean purchase or sale of corporate securities by private companies or individuals. Types of private placement transactions include venture capital investments, strategic investments by companies, private equity investments, private debt placements, acquisitions, divestitures, and merchant banking.
Investment banks possess an extensive network of industry and financial contacts, current market knowledge, legal processes and comparable market events that will make their clients to create an edge to their competitors. Some of the major global public and private investment banks are ABN Amro, Banc of America Securities, Barclays Capital, Bear Stearns, BNP Paribas, Brown Brothers Harriman and Calyon.
A Career in Investment Banking
Investment banking is one of best options for candidates who possess drive, confidence and stamina. It is not meant for the feint of heart, as investment banking requires very a strong personality. Stamina and drive are both important, as financial services industry employee work long hours, particularly when they have to deal with deadlines. Generally, the working hours of an employee in investment banking ranges between 60 to 70 hours. However, during busy times, working hours may extend through the weekend.
Investment banking is composed of different sectors within which you can choose a suitable career. Investment banks also have various divisions within different sectors. When applying to a bank, candidates should make up their mind about which area they would like to join. The choice of area depends on their abilities and interests. Some of the sectors in investment banking are as follows:
Corporate Finance: Corporate finance includes a range of areas such as debt and equity capital, appropriate capital structures and mergers and acquisitions. Advisory services include sector specialists, who are supported by several general service teams.
Sales And Trading: Sales and trading is considered to be one of the most popular areas of work in the field of investment banking. A number of employees are required to work within the sales and trading departments. The work calls for hard working people with the ability to think fast and make key decisions in just seconds. The basic role of a sales and trading employee is to inform clients about the opinion of the bank on certain assets and markets.
As sales and trading staff spend most of their working hours in talking to clients, it is important for employees to have strong communication skills. Additionally, employees working in the sales and trading department in investment bank need to have a complete understanding of the research produced by their company. They should also be able to present sophisticated arguments in a convincing manner to a very sophisticated client base.
Research: Employees working with the research department provide clients with up-to-date reports on certain areas of interest. Analysts in the research department specialize in a specific business sector or area, thereby developing reports that can be safely distributed to clients. Besides having effective analytical abilities, good analysts working with the research department in investment banking need to have effective communicative skills, ability to think clearly and present clear ideas with confidence to the clients.
If you have a great amount of drive, determination and stamina, a career in investment banking could prove to be very lucrative, exciting and rewarding.
Investment banking is composed of different sectors within which you can choose a suitable career. Investment banks also have various divisions within different sectors. When applying to a bank, candidates should make up their mind about which area they would like to join. The choice of area depends on their abilities and interests. Some of the sectors in investment banking are as follows:
Corporate Finance: Corporate finance includes a range of areas such as debt and equity capital, appropriate capital structures and mergers and acquisitions. Advisory services include sector specialists, who are supported by several general service teams.
Sales And Trading: Sales and trading is considered to be one of the most popular areas of work in the field of investment banking. A number of employees are required to work within the sales and trading departments. The work calls for hard working people with the ability to think fast and make key decisions in just seconds. The basic role of a sales and trading employee is to inform clients about the opinion of the bank on certain assets and markets.
As sales and trading staff spend most of their working hours in talking to clients, it is important for employees to have strong communication skills. Additionally, employees working in the sales and trading department in investment bank need to have a complete understanding of the research produced by their company. They should also be able to present sophisticated arguments in a convincing manner to a very sophisticated client base.
Research: Employees working with the research department provide clients with up-to-date reports on certain areas of interest. Analysts in the research department specialize in a specific business sector or area, thereby developing reports that can be safely distributed to clients. Besides having effective analytical abilities, good analysts working with the research department in investment banking need to have effective communicative skills, ability to think clearly and present clear ideas with confidence to the clients.
If you have a great amount of drive, determination and stamina, a career in investment banking could prove to be very lucrative, exciting and rewarding.
What is Investment Banking ?
If you're looking for the answer to the question 'what is investment banking', then let me try and help.
An "investment bank" is generally a financial house which helps raise money for organisations. They generally do this through the following ways:
Corporate Finance - this is where the investment bank helps companies raise additional money. For example, say a company needs to raise additional money to fund research into new products so that they can stay ahead of their competitors. The investment bank might help sell shares in the company in order to raise additional capital. Another way of raising capital might be for the investment bank to act as on behalf of their clients by in trading in stocks.
Mergers & Acquisitions (M&A) - this term is fairly self explanatory. As an example, a company that has been doing well might seek to buy another company thereby creating a more competitive and more cost effective company. The companies come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.
Investment banks make their money by charging a percentage of the deal as their fee.
An "investment bank" is generally a financial house which helps raise money for organisations. They generally do this through the following ways:
Corporate Finance - this is where the investment bank helps companies raise additional money. For example, say a company needs to raise additional money to fund research into new products so that they can stay ahead of their competitors. The investment bank might help sell shares in the company in order to raise additional capital. Another way of raising capital might be for the investment bank to act as on behalf of their clients by in trading in stocks.
Mergers & Acquisitions (M&A) - this term is fairly self explanatory. As an example, a company that has been doing well might seek to buy another company thereby creating a more competitive and more cost effective company. The companies come together hoping to gain a greater market share or to achieve greater efficiency. Because of these potential benefits, target companies will often agree to be purchased when they know they cannot survive alone.
Investment banks make their money by charging a percentage of the deal as their fee.
Investment Banking
The term "Investment Banking" is occasionally misconceived as investment in the field of banking. Investment banking is actually a banking function, which commercial banks apply to help their clients acquire funds and generate wealth through prudent investment of their resources. In addition, investment bankers of commercial banks also offer advice to companies about business transactions they might engage in.
With the advice of investment bankers, an institution can generate funds in two different ways. It may draw on public funds through the capital market by selling its stock. Alternatively, it may seek out venture capitalists or private equity to become stakeholders in the company. Investment banking firms also engage in financial consulting and offer advice to companies on how to handle acquisitions and mergers. They also notify their client companies on when to make public offerings and how best to manage the assets. The function of mergers and acquisitions come under the corporate finance function of an investment bank.
The functions of investment banking often overlap that of a private brokerage. The line between investment banking and various other forms of banking has vague in recent years. Deregulation banking has helped banks take on more financial issues related to their clients than ever before. With the advent of mega-banks, which operate at different levels, the function of investment banking has expanded to covering virtually every area of an individual or company's wealth management process.
There are various other functions that an investment bank performs, sales being an important part of its offerings. Sales people representing investment banks actually take the role of the classic institutional salesperson. Brokers develop relationships with investors for selling stock and offer stock advice. Traders facilitate buying and selling of stock and help clients carry out any other business transactions. Research analysts follow the performance of stocks or fixed income securities and suggest clients on the right time to buy and sell stocks.
With the advice of investment bankers, an institution can generate funds in two different ways. It may draw on public funds through the capital market by selling its stock. Alternatively, it may seek out venture capitalists or private equity to become stakeholders in the company. Investment banking firms also engage in financial consulting and offer advice to companies on how to handle acquisitions and mergers. They also notify their client companies on when to make public offerings and how best to manage the assets. The function of mergers and acquisitions come under the corporate finance function of an investment bank.
The functions of investment banking often overlap that of a private brokerage. The line between investment banking and various other forms of banking has vague in recent years. Deregulation banking has helped banks take on more financial issues related to their clients than ever before. With the advent of mega-banks, which operate at different levels, the function of investment banking has expanded to covering virtually every area of an individual or company's wealth management process.
There are various other functions that an investment bank performs, sales being an important part of its offerings. Sales people representing investment banks actually take the role of the classic institutional salesperson. Brokers develop relationships with investors for selling stock and offer stock advice. Traders facilitate buying and selling of stock and help clients carry out any other business transactions. Research analysts follow the performance of stocks or fixed income securities and suggest clients on the right time to buy and sell stocks.
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