Why investment banking wikijob

Their counterparts in U. They are all rounder 0f the game. Boutique Firms-These are the type of players which specialist in particular areas of investment banking.

They have huge investor base which is also used by underwriters to place issues. Asset Management Firms- These firms offer on investment services. This includes activities like fund management, wealth management, cash management, portfolio management depending on the type of investors, tenure of corpus, purpose of investments, type of instrument invested in etc.

Investment Banks 6 The bane of Indian capital market today is lack of investor confidence. Investment banking can solve this problem because investor would be dealing with reputed investment banker in the primary market rather than unknown issuers. The investment banks whatever be their issue management techniques have their own capital on hold. Similarly investment banks would hold the issues until market conditions are appropriate for issue, thus reducing the risk exposure of investors in gestation for issue.

Investment banks make the primary market subscription. Since the investment banker lends its name to the issue it will imply an issue investors can trust. Investment bankers may gradually replace merchant bankers in India. SBI was the first Indian public sector bank to set up its investment banking division in Currently, there are investment banks registered with SEBI. Currently, without holding a certificate of registration granted by the Securities and Exchange Board of India, no person can act as a investment banker.

Today, the business has become very complicated and the skill requirements have multiplied. Consequently, investment banks find it important to recruit people with the right academic credentials. Typically, for most of the important jobs, an MBA is a must. The financial skills of an expert are tested to the core while handling a complicated deal. Comprehensive and in-depth knowledge of financial and business concepts are essential to sustain business.

Multiple relationships between various factors render decision-making difficult. Financial solutions can be provided to the clients only when the advisor is competent to understand all or at least a majority of them. Before practical solutions emerge, the tools for decision-making will give greater choice to the solution provider.

A strong grounding in theory and concepts facilitates this. Investment Banks 8 financial solutions for any client across the industries. Each client has his or her individual risk taking ability. To cater to the client on an in basis, appropriate products that would suit their risk profile should be identified.

The clients will also feel at home while dealing with a product specialist. Legal knowledge is also important for structuring such deals, which will help identify the constraints associated with proposed solution. Apart from the knowledge of the inland laws, foreign laws also have to be considered.

Any regulation by the foreign government can make an otherwise desirable deal, unviable. Any changes in the capital market regulations affect the brokerage side of the business, along with the trade clearing and settlement houses. The trading personnel should be conversant with the regulations, guidelines, procedural formalities and actual trade execution processes involved in capital market.

Trading system involves a lot of additional skills than online trading. He has to be conversant with the codes, symbols and conventions followed by the market.

Quick signaling and accurate interpretation are of utmost significance. Any mistake in these would lead to faulty execution of orders and might entail additional costs to the firm in correcting the errors. A thorough knowledge of all such bodies is absolutely essential to perform extraordinarily. Salespersons, 9. The requirement for global perspective and international exposure is becoming increasingly important.

The firm should offer services across the national borders to the corporate clients and informed services are possible only when the employee is well-equipped with international business information.

Marketing, brokerage, research and capital mobilization have all undergone sweeping changes owing to technology. The technology helps management and other departmental professionals and even the clients to disseminate such data in negligible time. Asset managers have now complicated tools for scientific and in-depth valuation of portfolios.

Comp frameworks can be solved with minimum effort using technology. However, the audiences vary extensively, and hence, the requisite communication skills also differ widely. Institutional clients have to be convinced about the prospects of the investments that are solicited by the firm. Investors in syndicated debt must be satisfied with the payment streams and interest rate terms. Investment Banks 10 Even a friendly transaction would be difficult if not for patient and mutually negotiations.

The common issues that pertain to negotiation are — terms of offer, offer price, post merger integration, organization and reporting structure, business lines to be developed above all dealing with the overlapping functions. Creativity is an important feature. It is essential when solutions are to be identified for complex problem.

One of the important marketing skill would be relationship management. Unlike most other industries where relationship plays a facilitating role in conducting business, it is fundamental issue in the investment banking industry. They include interactions with superiors, subordinates, colleagues, clients, competitors, team members and even politicians and public office bearers.

Inter-personal skills come to the fore during team exercises where diplomacy and manners become essential. Team exercises can also include dealing with members from other departments or even with other firms.

Such situations call for greater application of team skills and an element of mutual respect towards each other. Banks are middlemen between a company that wants to issue new securities and the buying public. Banks advise buyers and sellers on business valuation, negotiation, pricing and structuring of transactions, as well as procedure and implementation. Investment Banks 14 that cost of capital is sufficiently low ; 4 Public offerings by company shareholders of securities that are already publicly traded e.

In the past we could cleanly differentiate debt and equity securities and put them into separate categories. Today the old distinctions are fuzzy. Debt and equity are more points on a continuum than boxes on a chart. Junior subordinated zero-coupon convertible debentures can be thought more equity than debt and dutch-auction preferred stock can be thought more debt than equity.

Geography, as well, is no longer a constraint: Companies can reach anywhere in the world to lower their cost of capital. The regulations defining private placements are complex and the securities and investment vehicles offered are numerous. Ranging from corporate equities to real estate interests, privately placed securities carry a higher return than similarly structured securities that can trade in the public markets.

The loss of liquidity enhances risk and therefore requires a proportionally higher return. Investment banks find, facilitate, price, and finance mergers and acquisitions. Investment Banks 15 Financial advisory services have grown dramatically as investment banks work with the large number of private funds — hedge funds and private equity — that have mushroomed in recent years and control hundreds of billions of dollars.

Investment banks like to involve themselves with hedge funds and private equity since they are transaction oriented, generate huge fees and are in perpetual deal mode-. Investment banks command what may seem to be exorbitantly high fees for giving fairness opinions, considering the number of hours worked and the amount of paper produced.

The reason is the significant liability the investment bank assumes, which can be realized both in the courts via shareholder suits and in industry reputation. In fact, major investment banks do not like to provide fairness opinions — the risks are too high for the fees — but generally do so only to serve important clients.

Securitization is the process by which formerly illiquid assets, mostly small consumer receivables of all kinds e. Investment Banks 16 Securitized obligations are sophisticated in design and often require statistical analysis and sensitivity testing of key criteria e.

For example, a change from forecasted rates of prepayment e. What's new for ? Here's what Internship Experience UK has in store for you this year: The chance to learn from and connect with leading employers in the Investment Banking and Asset Management sectors All-new sector-focused and core skills sessions to give you greater insight into working in these industries The chance to tailor your work experience based on your interests Unique sub-sector streams and project work that you can impress current and potential employers with If you did the programme last year, you'll be building on the skills you learned as well as acquiring new ones and you'll gain a new certificate to show employers your continued dedication to your career and industry.

Am I eligible and how do I apply? The application deadline was 29th June at pm. Why attend. Develop key competencies Gain the tools needed to develop key skills employers are looking for in graduates. Gain a competitive edge Demonstrate your proactiveness and add to your CV to help you stand out during future application processes. Connect with world-leading firms Make valuable connections with representatives from world-leading firms like Macquarie, Goldman Sachs, Blackstone, J.

Who can attend. Employers joining us. What people say about this event. Frequently asked questions. What if I can't attend? What if I'm under 18? I did this experience last year - is it the same? What if I have another question? Share this event. Are you a member? Before proceeding to the application, please provide your membership email:. I'm not a member. Privacy Policy. Unofficial guide to Banking impartial overview of the industry.

AFME list full members and associate members operating in the financial industry. Association of Investment Companies — search for an investment company by name, location or industry.

PIMFA — includes a members' directory , useful for research and speculative applications. Chartered Institute for Securities and Investment - qualifications and careers information, including Get into Finance.

Investment Association Members Directory. Alternative Investment Management Association - global trade association for hedge funds. International Capital Market Association - the directory of members firms is great for finding potential employers. International Swaps and Derivatives Association - global trade association representing participants in the privately negotiated derivatives industry.

London Energy Brokers Association - industry association representing brokers in London's oil, power, natural gas and related markets.

Includes links to member broking companies. London Metal Exchange - the world centre for non-ferrous metal trading.