The Job Description of an Investment Banking Analyst
Investment banking provides financial services, investment advice and banking products to high-net worth and institutional investors. They also help government agencies and companies issue stocks, bonds and other securities that are traded on the various stock exchanges throughout the world. Investment banking analysts work closely with asset managers, product specialists, risk managers and client managers to support their investment banking team. It is common for bankers to begin their careers as analysts when joining an investment banking firm.
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Function
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Investment banking analysts support associates, team leaders and vice presidents in investment banking companies by analyzing financial statements, constructing financial models and scheduling internal meetings. These professionals create prospectuses, write pitch letters and proposals, manage scheduling and put together weekly newsletters. Analysts also perform extensive research on market trends and developments, manage trades, answer client phone calls, qualify prospects and assemble presentations. Professionals that work in large investment banking firms usually focus on a particular industry, product type or geographic region.
Education
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Job candidates should hold at least a bachelor's degree in finance, business administration, accounting, actuarial science, financial engineering or a similar major. Since investment banking is an extremely competitive industry, companies usually look for applicants who have graduated from prestigious universities, have high grade point averages or hold MBAs. Training is usually provided to entry-level analysts. However, additional training and experience can be acquired through college internships. Investment banking analysts are usually encouraged or required by firms to obtain licensure through the Financial Industry Regulatory Authority and certification as a Chartered Financial Analyst.
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Skills
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Employers require that investment banking analysts have excellent quantitative, writing and interpersonal communication skills. Candidates should work well in teams and be able to juggle and prioritize multiple projects simultaneously. Excellent computer skills are required for this position, as well as the ability to write VBA macros and work with complex Excel spreadsheets. Investment banking analysts should also be knowledgeable about common industry news publications and media feeds such as Bloomberg, the Wall Street Journal and the Financial Times.
Salary
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According to a June 2010 PayScale report, the average salary range for investment banking analyst jobs fell between $50,744 and $70,714 per year. Bonuses for the position ranged from $6,878 to $44,072.
Potential
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Jobs within the securities, commodities and investment banking industry are predicted to increase by 12 percent during the 2008 to 2018 decade. Some of the factors driving employment growth for this sector include Baby Boomers who are investing for retirement and the expansion of securities and commodities markets in developing countries. Major financial events such as the April 2007 merger between the New York Stock Exchange and Euronext, as well as substantial economic growth in Asia, will spur overseas investments and the purchase of U.S. securities.
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