Working as an Investment Banking Analyst can be a challenging job. Not only are you on call every day, but you might also be required to work on important deals, which means you will not have much time for hobbies and social life. The educational requirements for this position are also challenging. It is important to study at top universities and earn excellent grades to qualify for an internship at a reputable bank. Depending on the company you work for, you may need to take up to two internships before you can qualify for the position.
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Job Description
An Investment Banking Analyst job description in the United States is quite demanding. Typically, these professionals work 80 to 100 hours a week, sometimes pulling all-nighters to get the job done. This position demands a high level of rigor and requires good communication and organizational skills. As an investment banking analyst, you will be expected to handle multiple tasks, often requiring you to make fast decisions. In addition, you must be able to work under pressure and should have excellent written communication skills.
An Investment Banking Analyst also performs other duties, such as developing and reviewing financial models for companies and individuals. Investment Banking Analysts work closely with management teams, fund managers, and buyer/seller groups to research companies and industries and develop market and industry research. Their job description also includes preparing transaction marketing materials, including presentation decks, pitch books, teasers, and confidential information memorandums. Investment banking analysts may also be responsible for making important investment decisions, which involves analyzing financial and market data and making sound business decisions.
Salary
Compared to investment banking analysts, who work more than 40 hours a week, the salaries for investment banking professionals are lower than those of other positions. Analysts at bulge bracket firms usually work 80 hours a week, and they have to compete for interns with consulting firms, who offer much higher salaries. Starting salary for an investment bank analyst is roughly $700 a month, or $4900 after taxes.
Salary increases are not automatic, but they are usually within 10% of the base salary. Salary increases are subject to individual performance. If you perform below expectations or the market is down, you may be passed over for salary adjustments. At every level, salaries in investment banking are highly competitive and the top tier is rewarded accordingly. The following table shows the salary scale for analysts working in the United States:
Work Environment
Working in investment banking can be incredibly demanding and stressful. You’ll be expected to put in long hours and communicate with colleagues on a daily basis. Many analysts have to work weekends or both days of the week, which can mean very little sleep. In addition, there are no set working hours – they could spend their whole day at a coffee shop or on the Internet, and they may not have time for lunch.
The work environment for Investment Banking Analysts in the United States is quite similar to that of other positions in the finance sector. Generally, analysts work directly with clients, while associates perform other tasks such as checking the work of other analysts. They may also double-check the work of analysts by comparing their inputs to other filings. Senior bankers are typically responsible for sourcing deals and may have a variety of backgrounds.
Requirements
The Requirements for an Investment Banking Analyst in America vary depending on the type of job you want. For entry-level jobs, a bachelor’s degree may be sufficient. Some high-profile firms and banks, however, require candidates to have a master’s degree. Earning a master’s degree is highly recommended, as it will allow you to pursue advanced study in a variety of business disciplines. Some candidates pursue a general MBA while others choose to earn an MBA focused on investment banking.
The compensation level for investment banking analysts depends on the type of bank. Bulge bracket banks work on multi-billion-dollar deals, and elite boutique firms are smaller and focus solely on investment banking M&A advisory. Firms like Lazard, Guggenheim, and Evercore pay significantly more than the average first-year analyst base. New analysts can expect to earn more than $110,000 per year at the top of their field.
Experience
To succeed in the investment banking profession, you must have relevant work experience in finance and the ability to cope with pressure. A summer internship at a big investment bank will help you gain the necessary experience needed to become an investment banking analyst. In addition, you must be able to network with a variety of people. You should also be able to write a powerful cover letter that explains why you deserve the position.
As an example, one of my colleagues was a Superstar Investment Banking Analyst at Merrill Lynch. He delivered exceptional work and fostered his relationship with associates. He tended to put his associates’ needs first and did not shy away from challenging models and thinking of alternative solutions. His ability to lead and make others succeed in the firm was also very impressive. He was a role model for many of his colleagues, and I would recommend him to anyone who wants to be an Investment Banking Analyst.
