Essay on Investment Banking Careers

If an individual is interested in high earning power and stability, a career in investment banking is for him. In recent years, the benefits of the occupations in investment banking have caught the media’s attention. It is known that careers in investment banking are considered to be the most sought-after careers in the world of finance. Although the careers in investment banking are highly competitive in the labor market, they provide huge incentives, such as respectable salaries and exciting lifestyle.

It is known that specialists in investment banking provide financial services to different business companies and governments including such services as acquiring, investing and managing funds, and giving the appropriate information about mergers, acquisitions, and investments. The major responsibilities of investment bankers include “trading, selling, or buying securities and managing the companies’ assets” (Holcomb). In addition they offer financial advice and are involved in consulting services on larger business projects such as acquisitions and mergers, buying and selling companies, analyzing the prospects of companies and in many other operations.

Due to the increased investment by business companies and individuals, it is expected a faster than average employment growth of specialists in investment banking through 2012-2013 (Bureau of Labor Statistics). These occupations will benefit because the population requires investment advice. According to the Occupational Outlook Handbook, “demand for the specialists in investment banking fluctuates because investment banking is sensitive to changes in the stock market”(83). Competition is expected for the highly lucrative positions in this sphere of human activity.

In addition, it is known that the salaries for investment bankers depend on the academic level of the specialist. Entry level specialists in the field of investment banking with a college degree have limited responsibilities and work experience, and they can earn from $25,000 to $60,000. The specialists with master’s degree and 3-4 years of work experience can earn from $60,000 to 130, 000, including bonuses. Moreover, Thomas Fitch notices that “New York City firms tend to pay more than firms in other regions due to the higher cost of living in the New York Metropolitan area” (Fitch 158).

Besides the above mentioned facts, investment banking specialists require the appropriate skills as abilities, including strong interpersonal skills, good communication skills, and excellent analytical skills. They should be ready to make decisions quickly and “under deadline pressure”, according to Fitch (159).

Today investment bankers may work in a variety of capacities, such as trade officer, business analyst, credit trader, private equity analyst, healthcare analyst, relationships manager, real estate advisory, performance and unit price manager, financial analyst, and a number of other jobs in investment banking field (Efrat 4).

Investment banking analyst in energy sector is a career for highly motivated specialists in investment banking who will be ready to become a member of energy investment banking team. Investment banking analyst should deal with “financings, mergers and acquisitions, valuation of oil and gas companies that operate in domestic and international markets”, according to the job requirements of Jennings Capital Inc. (Investment Banking |Energy Group).

Moreover, this position fits into the role of the energy group/department because the major duties of investment banking analyst in energy sector may include: “assisting in the preparation of presentations to client companies; creating and maintaining company valuation models and creating and maintaining sector databases and comparable company datasets” (Jennings Capital Inc.). In addition, investment banking analyst in energy group may be involved in assisting senior bankers in transaction execution and interacting with the company’s capital market professionals.

According to the Bureau of Labor Statistics, employment of investment banking analysts is “expected to grow 23% from 2010 to 2020, faster than the average for all occupations” (Bureau of Labor Statistics).

To sum up, investment banking can be viewed as the finance field in which the growth of opportunities are often dependent upon the country’s economy. The jobs in this field are competitive and require good experience and high educational level of specialists.

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