Truth About Investment Banking - Our Investment Banking Boot Camp

Plus Top Investment Banking Firms If You Want A Career In Investment Banking

Investment banking has been usually associated with glamour, lots of fast cash and a lifestyle to match. However, the truth about investment banking is not altogether the pretty one painted in the minds of most people. Although, traditional banks also engage in investment banking, dedicated investment banks exists to turn your spare cash into more money.

Here are some quick features of an investment bank. They

• Help companies raise capital and give strategic advice
• Arrange an IPO (initial public offering) for companies wishing to go public.
• Act as advisors when companies are being bought (the buy side) or sold (the sell side) and when companies merge
• Issuance of either equity (stocks) or debt (bonds) to companies in need of financial help
• They don't lend money to ordinary consumers

If you wish to become an investment banking analyst it is advisable to undertake some form of internship before making your final decision. Investment banking jobs although glamourous and financially rewarding, come with a price - long hours and little or no social life especially in some of the largest investment banks.

Here are some of the typical things an investment banker will handle on a daily basis:

Spreading comps - This involves maintaining files of companies and their competitors or comparable companies (hence the name comps). This is a very tedious and laborious aspect of the job. Unless you have a love for analysing financial statements and penchant for accounting, this aspect alone can make your life a misery.

Putting together a PIB - PIB stands for Public Information Book. Usually this information on a company is obtained from sources like Bloomberg and compiled into a book which is distributed among the team.

Pitch Book - Sales bible of the investment banker. What goes into this book is decided by senior management. The investment banker now fills in the necessary information and charts. This Picth book is crucial to the bank gaining more customers. All details have to tie together and all the numbers must add up. Attention to detail is necessary to get this done.

Financial Modelling - This the task which requires most skill and requires and in-depth knowledge of the company’s operations, accounting, corporate finance, and Excel.

This is by no means all that is involved in the the life of an investment banker which varies from day to day including meeting clients to making tea.

Investment banking salaries and benefits have always been generous. Outside the basic paycheck, the extra bonuses are linked to the economy and the finance market. A good economy means bumper harvest all-round whereas recession can spell disaster. A salary for a first year analyst is around $55,000 with annual bonuses of 35-40K rising to 60K in the second year. Other benefits include free cell phone, taxi rides, lunches and breakfast. Furthermore, expect to be wined and dined in some of the best restaurants available.

Why Investment Banking Is Not For The Faint-Hearted

• Long Hours - So is it all so rosy? Well, it is if you don't mind putting in 80-120 hours each week then perhaps investment banking is for you. To put this in perspective, working 80 hours a week is equivalent to starting at 9am and finishing at midnight everyday. For the 120-hour week, expect to work all-night at least once or twice that week. Hence the free lunches and breakfast. (Nothing is for free)
• Lack Of Control - You can't plan your week meticulously due to the unpredictability of the environment.
• Very Pressurized Environment - Involves many deadlines which must be met, regardless of whatever your other needs may be.
• Very Little Socializing - All the points above mean, you may disappoint some family and friends and if care is not taken, you can lose them forever.
  

Nevertheless, if you are able to endure this for the first 2 years, then you can potentially be head-hunted for some of the best jobs.

Here are the Details Top 13 Investment Banking Firms

See also:

Online Checking Accounts Debit Cards And Internet Banking

Off shore Banking