Jobs in the Investments Industry

About This Presentation
Title:

Jobs in the Investments Industry

Description:

D. Know where the potential jobs are in Investment Banking ... Jobs in Investment Banking (continued) What are the different types of analyst positions? ... – PowerPoint PPT presentation

Number of Views:190
Avg rating:3.0/5.0
Slides: 20
Provided by: Sudw6

less

Transcript and Presenter's Notes

Title: Jobs in the Investments Industry


1
Jobs in the Investments Industry
  • Bryan Sudweeks
  • Fall 2005

2
Jobs in the Investments Industry
  • I. Investment Banking
  • Investment banking, Asset Management, Sales and
    Trading, Research
  • II. Financial Planning
  • Investment advising, Insurance, and Estate
    planning
  • III. Corporate Finance
  • Pension Fund Administration and Management
  • IV. Financial Consulting
  • Pension Fund Consulting

3
I. Investment Banking
  • Objectives
  • A. Understand the purpose of Investment Banking
  • B. Understand the structure of an Investment
    Bank
  • C. Understand the interaction between divisions
    of Investment Banking groups (and the recent
    problems)
  • D. Know where the potential jobs are in
    Investment Banking
  • E. Know how to prepare for a career in
    Investment Banking

4
A. Purpose of Investment Banking
  • An intermediary between the capital markets
    (investors) and corporations (borrowers)
  • Offers strategic advice and financial analysis on
    Mergers Acquisitions, Divestitures, and Capital
    Structure
  • Offers Equity and Fixed Income Underwriting
    (e.g.. IPOs, High Yield Offerings)
  • Provides asset management advice to high net
    worth individuals and institutions
  • Provides Sales and Trading of Equity (Stocks),
    Fixed Income Securities (Bonds), Derivatives
    (Options).
  • Offers research and advice on publicly listed
    stocks and bonds to institutional and individual
    investors

5
Structure of Investment Banks
  • Major investment banking divisions include
  • Investment Banking
  • Intermediary between the capital markets
  • Advice and analysis on MA and Capital Structure
  • Equity and Fixed Income Underwriting
  • Asset Management
  • Provide asset management services to investors
    and institutions
  • Sales and Trading
  • Sales and Trading of Equity (Stocks), Fixed
    Income Securities (Bonds), Derivatives
    (Options).
  • Research
  • Provide research on public stocks and bonds

6
Structure of Investment Banks (continued)
Investment Bank
I-Banking Division (IBD)
Research
Sales Trading
Asset Management
Industry Groups Corporate Finance Product Gro
ups MA High Yield Debt Capital Market
s
Equity Capital Markets
Buy and Sell Financial Securities and Deriva
tives
Private Client Services Work with High Net Wo
rth Individuals
Analyze all Public information in order to give
advice to investors and sales and trading
group
7
Structure of Investment Banks (continued)
Investment Bank
I-Banking Division
Research
Sales Trading
Asset Management
Product Group
Industry Group (Corp Finance)
Manage funds for institutions and individuals
Private Client Services
Economic
Derivatives
Fixed Income
Equity
Fixed Income
Equity
Equity Capital Markets
Debt Capital Markets
High Yield Debt
M A
Consumer Products Technology Telecommunications
Real Estate Utilities Health Care Retail
Consumer Products Technology Telecommunications
Real Estate Utilities Health Care Retail
8
What is the Interaction between Investment
Banking Divisions?
  • Investment banking meets the needs of different
    clientele
  • Companies wanting to list equity/debt
  • Individuals/institutions wanting unbiased
    research for investing
  • Strategic and asset management advice for
    companies/individuals
  • How should it be structured to maintain no
    semblance of conflict of interest?
  • A Chinese wall was proposed and instituted
  • Certain divisions are inside and others
    outside the wall

9
Interaction Between Divisions (continued)
  • Inside the Wall Outside
  • the Wall

Corporate Finance
IBD
Sales Trading, Research, and Asset Management
Corporate Finance
Corporate Finance
10
Potential Jobs in Investment Banking
  • Where are the jobs in Investment Banking?
  • Most investment banking jobs are in analysis
  • Equity market analyst
  • Debt market analyst
  • High Yield analyst
  • Mergers and Acquisitions
  • Industry Analyst
  • Consumer products, telecommunications, real
    estate, finance, etc.

11
Jobs in Investment Banking (continued)
I-Banking Division
Asset Management Division
Research Analyst Analyst Senior Analyst Portfol
io Manager
Product Group
Industry Group (Corp Finance)
Equity Capital Markets
Debt Capital Markets
High Yield Debt
Mergers Acquisitions
Consumer Products Technology Telecommunications
Real Estate Utilities Health Care Retail
Assistant Analyst Research Analyst Analyst Seni
or Analyst
Assistant Analyst Research Analyst Analyst Seni
or Analyst
Research Analyst Analyst Senior Analyst
12
Jobs in Investment Banking (continued)
  • What are the different types of analyst
    positions?
  • Analysts position vary depending on who they are
    doing research for, i.e., sell-side versus
    buy-side research
  • What are sell-side analysts?
  • Analysts whose work is used for selling
    securities to investors, i.e. Research, Sales and
    Trading, etc. Analysts prepare the research for
    potential investors in the hope that investors
    will buy and sell companies through the I-bank
  • What are buy-side analysts?
  • Analysts whose work is used in the process of
    buying securities for specific portfolios, i.e.
    Asset Management, Private Wealth Management, etc.
    Analysts prepare the research and then act on
    that research to buy companies.

13
The Analyst Position (continued)
  • Why are Investment Banking analyst positions so
    hard to get?
  • They provide instant exposure to senior
    management teams of the largest companies in the
    world
  • They have the highest exposure, learning
    potential, and salary of any job in the Financial
    Services Industry (out of college)
  • They give opportunity to work in small teams,
    with learning from senior partners
  • After you have built experience in the field, it
    offers wonderful opportunities at top business
    schools and companies

14
The Analyst Position (continued)
  • What are the skills gained as an analyst?
  • Financial modeling and strong quantitative work
  • Solid Understanding of Corporate Capital
    Structure Capital Markets
  • Solid understanding of companies and industry
    composition and structure
  • Professional presentation analysis

15
The Analyst Position (continued)
  • What are the responsibilities of an analyst?
  • Financial Analysis and Modeling
  • Discounted cash flow and Free cash flow analysis,

  • Comparable company
  • Precedent transactions, and
  • Leveraged buyout
  • Client Exhibits and Presentations
  • Market research and competitive analysis
  • Client interaction
  • Roadshow execution management

16
The Analyst Position (continued)
  • What type of work do Analysts do?
  • Company Analysis (both buy and sell side)
  • Financial forecasting
  • Strategic analysis
  • Industry Analysis (both buy and sell side)
  • Strategic analysis
  • Portfolio implementation, construction, and
    reporting and attribution
  • Investment policy statement
  • Portfolio construction and management
  • Portfolio reporting and attribution
  • Whatever is needed to attain company goals and
    objectives

17
The Analyst Position (continued)
  • What are the criteria used to select analysts?
  • There is a record of achievement
  • A strong academic record
  • A balanced individual with extracurricular
    activities
  • A good employment history
  • Strong communication skills
  • Evidence of being a team player
  • A tireless work ethic
  • Attention to detail
  • A strong analytical capability (with examples)

18
How to Prepare for a Career in Investment Banking
  • Understand the industry, the positions, and the
    lifestyle
  • This is a wonderful but crazy industry
  • Are you suited for the lifestylevery long hours
  • Start building your contacts
  • Meet with as many of the visiting speakers as
    possible
  • Do well in your classes
  • A strong GPA is important
  • Have a good financial analysis project to leave
    with potential employers as an example of your
    best work
  • Look to beginning your CFA program
  • It is looked on highly in the industry

19
A Career in Investment Banking
  • Dont get discouraged
  • Understand yourself and your goals
  • Work hard and be patientFaith precedes the
    miracle
  • Keep your priorities in order
  • Obedience is the first law of Heaven--do what you
    should
  • He will help take care of the rest
  • Follow the Spirit
  • Stay worthy of the Spirit
  • He is your competitive advantage--stay worthy of
    His help
  • Remember the Lords hand in your blessings
  • Always be appreciative of his blessings
  • Remember to share them with others
Write a Comment
User Comments (0)