There are dozens of specialized functions at an investment bank, ranging
from private wealth management (essentially, brokers to the rich) to risk managers
(those who make sure the bank isn't taking on too much risk). At most major
investment banks, the corporate finance and sales and trading functions are
among the largest and most important. Read more
There are dozens of specialized functions at an investment bank, ranging
from private wealth management (essentially, brokers to the rich) to risk managers
(those who make sure the bank isn't taking on too much risk). At most major
investment banks, the corporate finance and sales and trading functions are
among the largest and most important.
The corporate finance department works to raise money for companies and
other large organizations looking to expand or acquire new holdings. Teams of
analysts, associates, VPs and MDs work to analyze the potential profit and risk
for their own bank while creating pitches to entice the client. While good math
and Excel skills are essential to being a successful I-banker, those who can
buttress their quantitative skills with creativity when building pitch books
and PowerPoint presentations tend to catch the eye of their superiors.
Sales and trading is a different story. An investment banking trading floor
is chaos. There's usually a lot of swearing, yelling and shouting going on—a
pressure cooker of stress. Traders must rely on their market instincts, and
salespeople yell for "bids" when the market tumbles. Deciding what to
buy or sell, and at what price to buy and sell, is difficult when millions of
dollars are at stake.
However, salespeople and traders work much more reasonable hours than
corporate finance bankers. Rarely does a salesperson or trader venture into the
office on a Saturday or Sunday, leaving the trading floor completely void of
life on weekends. Any corporate finance analyst who has crossed a trading floor
on a Saturday will tell you that the only noises to be heard are the clocks
clicking every minute and the whir of the air conditioner.
Analysts and associates in investment banking work virtually all the time,
and their stress level can be high as mistakes are not as easily tolerated.
Analysts are hired out of college and typically work two or three years before
going back to get their MBAs. Associates, commonly hired out of graduate
business school, gradually take on more and more client contact and move up to
the vice president level in three to four years. After vice president comes
director (or senior vice president) and then managing director. Established
relationships and networking abilities determine the success of an MD who is
often responsible for originating deals within his/her sector.
In sales and trading, the career path is not quite as structured. For
example, analysts move more easily to the associate level without an MBA than
they do in corporate finance. And associates can climb quickly to the VP and
director levels, depending on the firm's need and the talent of the salesperson
or trader.
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