What Kind of Entry Level Investment Banking Jobs is available?
There are well-paid, well-respected research positions available in investment banking. Therefore a great place to begin your investment banking career is working as an analyst. Successful analysts work hard, understand spreadsheets, and have fine analytical skills. Analysts can be promoted to associates who do similar work, but more of it.
As an entry level analyst in investment banking, you will often write reports, do research, and handle trades, run spreadsheets, and code programs. You need to be fast, accurate and complete. Mundane research tasks would include digging up information and editing/formatting reports. Some graduates find this job boring and give up in the first year. Those who survive and gain experience will have the chance to work with clients.
Required Skill Sets
Newly-hired analysts are often recent graduates with degrees in accounting, finance, or economics. Analysts need to understand and be able to interpret accounting data. In the long run, you would need to be a CFA for further advance in your investment banking career.
* Quantitative and analytical skills
* Marketing and communication skills
* Motivation and tenacity
* Decision making and problem solving skills
* Interpersonal skills
Is Investment Banking an Easy Boat to Catch?
No. It is difficult to start. Entry level employees should expect long but stimulating work days in which the mood can regularly shift depending on the situation. You would expect to work about 80 hours a week, often including weekends.
What Money to Make?
In 2006, MBA graduates with less than one year’s experience make around $230,000 p.a. (salary + bonus)
Analyst positions are typically designed as 2-3 year positions. Most analysts then either leave the field or go on to graduate school; many enter MBA programs. Some are hired by private equity firms, who value their analytical training and experience. Some are promoted from within to Associate.
One of my outstanding candidates who is now the head of equities of a European investment bank, started as a generalist analyst. He quickly moved on to be a sector analyst in a year’s time and follow up on several specific industries. In four years, he made himself a head of equities research leading a team of six analysts. Depending on your performance, the position and money you earn are going to skyrocket.
Test of Your Investment Knowledge
Which of the following is NOT a component of the Dow Jones Industrial?
B: Walt Disney
C: Pepsi Cola
D: Procter & Gamble
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Investment banking career