Investment banking - one of the most high profile careers in the financial sector

Investment banking is one of the most high profile careers in the financial sector and requires strong analytical skills, quantitative aptitude and a risk-taking attitude. Investment bankers are financial experts who work with financial institutions to raise capital for organizations, governments and other entities. They assist in acquisitions, mergers and sale on behalf of clients. Investment bankers also create detailed documentation needed by the SEC for companies to go public. They issue securities to help companies raise money, identify risks associated with projects before their clients invest in them.

Investment banking requires the following skills:
Financial modeling
Such as building 3-statement models, discounted cash flow models, LBO models, etc.
Business valuation
Using a wide range of valuation methods such as comparable company analysis, precedent transactions, and DCF analysis.
Pitchbooks and presentations
To pitch ideas to prospective clients and win new business
Transaction documents
Such as a confidential information memorandum (CIM), investment teaser, term sheet, confidentiality agreement, etc
Relationship management
Working with existing clients to successfully close a deal and ensure clients are happy with the service being provided.
Sales and business development
Constantly meeting with prospective clients to pitch them ideas, offer them support in their work, and provide value-added advice that will ultimately win new business.
Negotiations
Between buyers and sellers in a transaction and helping clients maximize value creation.

Full-service banks offer the following services:
Underwriting
Capital raising and underwriting groups work between investors and companies that want to raise money or go public via the IPO process. This function serves the primary market or “new capital”.
Mergers & Acquisitions (M&A)
Advisory roles for both buyers and sellers of businesses, managing the M&A process start to finish.
Sales & Trading
Matching up buyers and sellers of securities in the secondary market. Sales and trading groups in investment banking act as agents for clients and also can trade the firm’s own capital.
Equity Research
The equity research group research, or “coverage”, of securities helps investors make investment decisions and supports trading of stocks.

Asset Management
Managing investments for a wide range of investors including institutions and individuals, across a wide range of investment styles.

Career prospects of an investment banker are directly linked to how the money market is performing. Since the financial markets are doing well now, investment bankers are in demand. And although there are additional jobs in the market, competition is strong. Aspiring investment bankers with postgraduate, MBA or additional certifications will have the best chances of finding employment in this field. Major employment sectors:
Investment banks
Firms in bond-trading
Technical analysis or program trading firms
Capital markets
Government organizations