Investment Banking Industry Overview

Careers in Banking

  • Investment Banking Division
    • Coverage Team: focuses on one specific sector of clients, and all deals are from that same sector
      • e.g. TMT, Healthcare, Industrials, Real Estate, FSG, FIG
    • Product Team: different deal-related services 
      • e.g. M&A, ECM, DCM, Leveraged Finance, Restructuring
  • Sales and Trading
    • Sales: selling different investment products (e.g. Equity, Bond, Derivatives) to the buyside clients
    • Trading: trading these investment products and cooperating with sales team to give clients product price and make money on the spread
  • Asset and Wealth Management
    • Client-focused, with the clients being large financial institutions or wealthy families/individuals. Daily work include managing relationships and providing different investment products to clients' portfolio
Investment Banking

  • Investment Banking is a type of banking that helps clients (companies, institutions, governments, etc.) with raising capital via initial public offerings (IPOs) and executing transactions like mergers and acquisitions (M&A)
  • Structure of an Investment Bank:
    • Front Office: the salesperson; client-facing
      • S&T, IB, Equity Research
    • Middle Office: IT, risk management
    • Back Office: HR, office management, customer service
  • All IB activities are either sell-side or buy-side. 
    • Sell-side: trading securities
      • Securities: financial instruments that can be traded in financial markets, e.g. stocks and bonds
    • Buy-side: advisory; providing financial advice to large entities
  • Investment Banking Services:
    • Capital Raising: assisting companies and governments in raising capital 
    • M&A: advising companies on mergers, acquisitions, or other strategic transactions
    • Underwriting and Securities Distribution: Underwriting is the process of taking on a financial risk for a fee. Investment banks will buy the stocks and bonds of the business they are working for and then market and sell those to other investors
    • Private Placement: helping clients raise capital through private placements, which is the selling of securities to private investors. This is the opposite of an IPO, where the securities are sold publicly

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