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A Career in Investment Banking
If you are considering a career in investment banking, then London, New York, Frankfurt, Hing Kong and Tokyo are the places to be - but especially London and New York.
Typically, an investment banking group provides worldwide some, or all, of the following services, either in divisions of the bank, or in associated companies within the group:
- Corporate finance and advisory work, raising finance, takeovers, mergers and acquisitions;
- Banking, for governments, institutions and companies;
- Investment management, for corporate pension funds, charities, private clients, either via direct investment for the more wealthy, or via unit and investment trusts;
- Securities trading, in equities, bonds or derivatives and offering broking and distribution facilities.
For mainstream banking positions, applications are welcomed from MBAs specialising in finance, with an undergraduate degree in a wide range of disciplines. There is demand for trained specialists with additional qualifications such as in law, accountancy as well as MBAs from a good business school.
Relationships within investment banks and with their clients are essentially direct and
personal. For this reason the personality of the candidate is of great importance. Teamplyaing, interpersonal skills, high levels of numeracy, imagination, application and readiness to adapt are important aptitudes in any candidate. Fluency in foreign languages is always an asset.
Entry Requirements and Career Structure
Because of the differences in the structure and size of the individual firms, the numbers of staff recruited vary considerably from one to another. The following, however, outlines the prospects for progression of a successful candidate in relation to his or her initial academic qualifications.
Many banks hire fresh graduates at the analyst level, who then leave to take an MBA after two or three years, to return after their course is complete. However, in a strong job markets most investment bansk require a considerable number of new MBAs to join with out prior banking experience, but the right profile - high achievers who are hungry for success.
At Associate level, the usual minimum entry requirement is an MBA with specialisation in finance or some other related field and if possible, supplemented by another professional qualification in law or accounting or a good first degree.
MBAs will commence with a short induction training programme which usually lasts several weeks and provides a mix of technical training and networking. Success within any bank is not just about what you know, but who you know, so forming a professioanl network early on in your career is important.
Remuneration
Starting salaries can differ among investment banks and the working day is often long. However, candidates with the necessary skills and abilities can rise quickly to positions carrying considerable responsibility, where they will be rewarded accordingly. Increasingly, a major element of remuneration is related to performance or profits and paid as an annual bonus. Typically salaries range from $90-110,000 with bonuses averaging between 20-100% of first year salary. Some regional banks pay local staff lower salaries, but there is a convergence of investment banking salaries around the world.
Professional Qualifications
An appropriate professional qualification is an advantage. Studying for a qualification will require attendance at evening classes and time off for revision is usually allowed. Some firms offer limited day-release facilities and payments are usually made to cover costs of tuition, examinations and textbooks.
| ABN Amro Bank | Dresdner Kleinwort | Merrill Lynch |
| www.abnamro.com | www.drkw.com | www.ml.com |
| Bear, Stearns International | Goldman Sachs | Morgan Stanley |
| www.bearstearns.com | www.gs.com | www.morganstanley.com |
| Citigroup | HSBC Bank | Rothschild & Sons |
| www.citigroup.com | www.hsbc.com | www.rothschild.com |
| Credit Suisse First Boston | JP Morgan Chase | Nomura |
| www.csfb.com | www.jpmorganchase.com | www.nomura.com |
| Deutsche Bank | Lehman Brothers | UBS Investment Bank |
| www.deutsche-bank.de | www.lehman.com | www.ibb.ubs.com |
| West LB | ||
 | www.westlb.com | |
Further information: There are a number of websites where you can find information about internships and careers at investment banks. Visit www.liba.org.uk orwww.efinancialcareers.co.uk or visit websites of investment banks.
