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Jobs in the
Investments Industry I:
Investment Banking
Bryan Sudweeks
Fall 2008
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Jobs in the Investments Industry
I. Investment Banking
Investment banking, Sales and Trading, Research
II. Investment Management
Asset Management
III. Financial Planning
Investment advising, Insurance, and Estate planning
IV. Corporate Finance
Pension Fund Administration and Management
V. Financial Consulting
Pension Fund Consulting
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I. Investment Banking
Objectives
A. Understand the purpose of Investment Banking
B. Understand the structure of an Investment Bank
C. Understand the interaction between divisions of
Investment Banking groups (and the recent
problems)
D. Know where the potential jobs are in Investment
Banking
E. Know how to prepare for a career in Investment
Banking
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A. Purpose of Investment Banking
An intermediary between the capital markets
(investors) and corporations (borrowers)
Offers strategic advice and financial analysis on
Mergers & Acquisitions, Divestitures, and Capital
Structure
Offers Equity and Fixed Income Underwriting (e.g..
IPOs, High Yield Offerings)
Provides asset management advice to high net worth
individuals and institutions
Provides Sales and Trading of Equity (Stocks), Fixed
Income Securities (Bonds), Derivatives (Options).
Offers research and advice on publicly listed stocks
and bonds to institutional and individual investors
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B. Structure of Investment Banks
Major investment banking divisions include:
Investment Banking
Intermediary between the capital markets
Advice and analysis on M&A and Capital Structure
Equity and Fixed Income Underwriting
Asset Management
Provide asset management services to investors and
institutions
Sales and Trading
Sales and Trading of Equity (Stocks), Fixed Income
Securities (Bonds), Derivatives (Options).
Research
Provide research on public stocks and bonds

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Structure of Investment Banks (continued)
Investment Bank
I-Banking
Division (IBD)
Research
Sales &
Trading
Asset
Management
Private Client
Services
Work with High
Net Worth Individuals
Industry Groups
Corporate Finance
Product Groups
M&A
High Yield
Debt Capital Markets
Equity Capital Markets
Buy and Sell
Financial
Securities
and Derivatives
Analyze all
Public information
in order to give
advice to
investors and
sales and trading
group
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Structure of Investment Banks (continued)
Investment Bank
I-Banking
Division
Research
Sales &
Trading
Asset
Management
Product
Group

Industry
Group
(Corp Finance)

Manage funds
for institutions
and individuals
Economic Derivatives
Fixed
Income
Equity
Fixed
Income
Equity
Equity
Capital
Markets
Debt
Capital
Markets
High
Yield
Debt
M & A
Consumer Products
Technology
Telecommunications
Real Estate
Utilities
Health Care
Retail
Consumer Products
Technology
Telecommunications
Real Estate
Utilities
Health Care
Retail
Private Client
Services
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C. What is the Interaction between
Investment Banking Divisions?
Investment banking meets the needs of
different clientele
Companies wanting to list equity/debt
Individuals/institutions wanting unbiased research
for investing
Strategic and asset management advice for
companies/individuals
How should it be structured to maintain no
semblance of conflict of interest?
A Chinese wall was proposed and instituted
Certain divisions are inside and others outside
the wall


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Interaction Between Divisions (continued)
Inside the Wall Outside
the Wall
IBD
Corporate Finance
Sales & Trading, Research,
and Asset Management
Corporate Finance
Corporate Finance
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D. Potential Jobs in Investment Banking
Where are the jobs in Investment Banking?
Most investment banking jobs are in analysis
Equity market analyst
Debt market analyst
High Yield analyst
Mergers and Acquisitions
Industry Analyst
Consumer products, telecommunications,
real estate, finance, etc.
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Jobs in Investment Banking (continued)
I-Banking
Division
Product
Group

Industry
Group
(Corp Finance)

Equity
Capital
Markets
Debt
Capital
Markets
High
Yield
Debt
Mergers &
Acquisitions
Consumer Products
Technology
Telecommunications
Real Estate
Utilities
Health Care
Retail
Assistant Analyst
Research Analyst
Analyst
Senior Analyst
Asset Management
Division
Research Analyst
Analyst
Senior Analyst
Portfolio Manager
Assistant Analyst
Research Analyst
Analyst
Senior Analyst
Research Analyst
Analyst
Senior Analyst
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Jobs in Investment Banking (continued)
What are the different types of analyst positions?
Analysts position vary depending on who they are doing
research for, i.e., sell-side versus buy-side research
What are sell-side analysts?
Analysts whose work is used for selling securities to
investors, i.e. Research, Sales and Trading, etc. Analysts
prepare the research for potential investors in the hope that
investors will buy and sell companies through the I-bank
What are buy-side analysts?
Analysts whose work is used in the process of buying
securities for specific portfolios, i.e. Asset Management,
Private Wealth Management, etc. Analysts prepare the
research and then act on that research to buy companies.
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The Analyst Position (continued)
Why are Investment Banking analyst positions so hard
to get?
They provide instant exposure to senior management teams
of the largest companies in the world
They have the highest exposure, learning potential, and
salary of any job in the Financial Services Industry (out of
college)
They give opportunity to work in small teams, with learning
from senior partners
After you have built experience in the field, it offers
wonderful opportunities at top business schools and
companies

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The Analyst Position (continued)
What are the skills gained as an analyst?
Financial modeling and strong quantitative work
Solid Understanding of Corporate Capital Structure &
Capital Markets
Solid understanding of companies and industry composition
and structure
Professional presentation analysis
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The Analyst Position (continued)
What are the responsibilities of an analyst?
Financial Analysis and Modeling
Discounted cash flow and Free cash flow
analysis,
Comparable company
Precedent transactions, and
Leveraged buyout
Client Exhibits and Presentations
Market research and competitive analysis
Client interaction
Roadshow execution management
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The Analyst Position (continued)
What type of work do Analysts do?
Company Analysis (both buy and sell side)
Financial forecasting
Strategic analysis
Industry Analysis (both buy and sell side)
Strategic analysis
Portfolio implementation, construction, and
reporting and attribution
Investment policy statement
Portfolio construction and management
Portfolio reporting and attribution
Whatever is needed to attain company goals and
objectives
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The Analyst Position (continued)
What are the criteria used to select analysts?
There is a record of achievement
A strong academic record
A balanced individual with extracurricular activities
A good employment history
Strong communication skills
Evidence of being a team player
A tireless work ethic
Attention to detail
A strong analytical capability (with examples)
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E. How to Prepare for a Career in
Investment Banking
Understand the industry, the positions, and the lifestyle
This is a wonderful but crazy industry
Are you suited for the lifestylevery long hours
Start building your contacts
Meet with as many of the visiting speakers as possible
Do well in your classes
A strong GPA is important
Have a good financial analysis project to leave with
potential employers as an example of your best work
Look to beginning your CFA program
It is looked on highly in the industry


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A Career in Investment Banking
Dont get discouraged
Understand yourself and your goals
Work hard and be patientFaith precedes the miracle
Keep your priorities in order
Obedience is the first law of Heaven--do what you
should
He will help take care of the rest
Follow the Spirit
Stay worthy of the Spirit
He is your competitive advantage--stay worthy of His
help
Remember the Lords hand in your blessings
Always be appreciative of his blessings
Remember to share them with others