Investment Banking Division
This division is focused on helping clients either raise money (e.g. through an equity offering, private placement, debt offering, secondary offering), grow inorganically (e.g. A Merger with one company or Acquiring a competitor) or restructuring and organic growth strategies.
This division can be divided up by geographical coverage e.g. Europe, Middle East and the Americas as well as by industry classes i.e. Healthcare, Technology, Media and Telecommunications (TMT), Oil and Gas (O&G), Financial Institutions Group (FIG), Consumer goods.
Skills required to work in IBD
- Project driven and motivated
- Attention to detail
- Good numerical ability
- Team-worker and social skills
Markets is split into various asset classes such as Equities, Fixed Income or Commodities. Each asset class is split into sales, trading and research and irrespective of your team, you will need to understand the basic concepts of what moves the market.
Traders are known as market makers and provide liquidity in the markets they trade within, for example Hedge fund X has £10m of Apple Shares. The traders will decide on how much to buy the shares for and will seek a buyer (taking a commission). If no buyer can be found, the bank may take on proprietary risk, if they believe they can profit from the trade. Banks also take on shares even if they expect a loss (if the client provides a lot of commission for the bank), as banks are needed for market liquidity. The day to day work of a trader includes managing their inventory of products, executing client orders and responding to broker requests whiles ensuring to remain within risk boundaries.
Sales teams are the bridge between traders and clients. They have the client’s needs and strategy at the back of their mind in case markets change direction, of they see something the client may like. Sales relay information, often complicated ideas and instruments, to clients and ensure they consider the clients needs.
Research teams gather information in specific sectors or fields and project the direction of a stock, industry or class based on a variety of parameters. These lead to either a “buy”, “sell” or “hold” recommendation from model analysis which sales personnel then pass to clients.
Skills required to work in markets
- Good under pressure
- Interested in financial markets
- Fast learner
- Good numerical and analytical skills
- Good at articulating information
- Negotiation skills
- Networking skills
Asset and Wealth Management
Asset management the part of the business where client’s assets are overseen by expert investment advisors who aim to grow the value of their assets. Here, your clients include corporate institutions, Sovereign Wealth Funds (SWF), Pension funds, Insurance companies, and University endowments.
Wealth management is very similar to Asset management however in this case your clients tend to be family trusts and organisations, high-net worth individuals (HNWI) and ultra-high net worth individuals (UHNWI).
Asset Management looks to balance out an appropriate level of risk for clients with suitable returns based on the client’s risk appetite. Within this; corporate, economic, political, and monetary factors will influence the advice given and decisions made.
Skills required for AM and WM
- Strategist and interest in finding things that work
- Drive to perform
- Good social aptitude
Professional Services involves a range of different occupations that provide support to businesses in the form of advice or performing tertiary roles.
Helping clients manage, support and grow their businesses covers a wide array of areas. Some of the key parts of professional services include:
- Audit – reviewing the accounts of companies and organisations to ensure the validity and legality of their financial records
- Tax – advising businesses on how to be more tax efficient or completing tax returns
- Actuarial – calculating and assessing future financial risks and making predictions using models and statistics
- Financial Advisory – advising businesses on investments and how to best manage their money
- Consulting – working with businesses to reduce costs or reorganise for maximum efficiency
Skills required for professional services
- Strong work ethic
- Communication skills
- Project management
- Innovative ideas