Wednesday 28 May 2014

Key roles of a person pursuing a career in investment banking

Banking and finance are one of the top choices preferred by students all around the globe. The all round demand for bank professional has made the public sector and multinational and foreign banks to hire more and more MBA graduates, CAs as well as CFAs. Careers in banking and finance range from customer services and sales positions to financier advisers and analysts. This field is large with many opportunities for growth. Banking and Finance Courses offer a wide array of specialization areas for people who want to pursue a specific profile including derivatives, real estate finance and risk management.

What is investment banking?

Investment banking includes trading securities for cash or other securities as well as the provision of advice to institutions that is concerned with buying investment services.  A person who is interested in making money out of money should consider a Career in Investment Banking. In other words, investment banking involves matching people’s expectations that have the capital with the people who require the capital. Traditionally, it encompasses corporate finance and also the mergers and acquisitions. At times it may also include the trading of shares and bonds.

 Career in Investment Banking

What does an investment banker do?

The investment bankers provide institutions, companies and government with specific financial services like how to achieve their money goals and implement long-term and short-term financial plans. They usually advise and lead management buyout, take charge in raising capital as well as identify and secure new deals. They work in dedicated teams to ensure specific market sectors or a particular department. They are expected to assess a deal’s desirability where financial models are designed to create possible outcomes to get a deep insight of what they can get out of this deal. The next thing is to structure and negotiate the terms of the deal in detail.

They deal with equity capital markets by advising the clients on how much capital they can raise, from when and from where. Investment banker work closely with lenders such as financial institutions, agencies, public and private corporations to support the debt incurred of the clients, including the re-structuring,   re-financing and renewing the debt. They also deal with mergers and acquisitions by assisting them with the expansion to increase their profitability, diversify and safeguard their market positions. They manage the process of the transactions, accessing the target organization and also what would be the overall impact of the deal.
The day-to-day activities of investment bankers includes searching and identifying new business opportunities, liaising with the CEOs of large organizations, carrying out financial modeling and then developing it and presenting the most appropriate solutions to the clients, thoroughly researching market conditions and developments and moreover, coordinating with the team of professionals comprising of lawyers, accountants and public relations personnel by working closely with them.
Often people who enjoy working with numbers and have strong analytical skills with excellent communication abilities to work with clients and customers opt for a Career in Investment Banking. It is considered to be one of the most sought-after profiles in the finance world.

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