The principle purpose of investment banking is to underwrite clients’ securities. Besides, investment banks may also provide ancillary services such as professional investment advisory services, private wealth management, and assist customers with mergers and acquisitions. An investment bank consists of the following departments;
- Investment banking
- Human Capital Management
- Private Equity
- Merchant banking
- Security & Trading
- Risk management
Graduate jobs at investment banks
Applicants for positions at the listed departments of investment banking usually apply as either an Associate or Analyst. Holders of a Bachelor or Master’s degree with little or no experience in the banking industry applies as an Analyst whereas those with MBA and Masters in Finance and a qualified working experience apply as Associates.
Categories of investment banks
Investment banks are categorized into Tier 1 and Tier 2 based on the size of the firm. However, tiers do not apply to fund managers or small-scale specialist investment banks. Importantly, investment banks’ roles fit into three categories that include;
- Front office
Front office investment banking involves revenue-generating activities such as sales, trading, structuring, and research.
- Middle office
Middles office investment banking is responsible for risk management. Professionals working in the middle office usually analyze and evaluate the risk undertaken by the front office.
- Back office
Back office investment banking involves routine operations such as employee management and technology division.
About: Martin Lustgarten
As the economy recovers at a rapid rate comes the need for preparation of an investment plan. Initially, retirement seemed like a dream, but with the advent of pension schemes, the dream is now a reality. Investors need assistance from qualified investment advisors to help them bridge the gap between retirement planning and living in retirement life. Martin Lustgarten is among the world’s smartest investment advisors with a significant impact on the success of his clients.
As a citizen of Venezuela and Austria, Martin capitalizes his citizenship to help clients invest wisely. Over the years, Martin spreads his wealth across countries, as this reduces the expected risk. Global portfolio has helped Martin minimize the expected risk while riding on the stability of the local market. As an expert in understanding market fluctuations, Martin is an ideal role model for any investor.