Investment Bank’s Common Info
What is investment banking?
An investment bank is an institution that acts as an underwriter or agent for corporations and municipalities issuing securities. Most also maintain broker/dealer operations, markets for previously issued securities, and offer advisory services to corporations. Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals.
What are BB’s? How do they differ from boutique banks?
BB’s are bulge bracket firms, typically large investment banks. These firms employ anywhere between 15,000-50,0000 employees worldwide. In contrast, boutique firms have approximately 500-3000 employees. Your experience as a summer/full time analyst will greatly differ between bulge bracket and boutique firms.
Analyst Queries
How can I land a job in investment banking?
The investment banking industry is competitive. Traditionally, the best way to land a job is to secure a summer internship prior to your senior year. Most firms recruit their full-time analysts from their summer pool of candidates. However, the basis of building the skills sought after by firms is to master accounting/finance concepts, prepare for interviews and attend UBS Investment Banking recruiting events to build a network.
Is it true that investment banks only recruit students who major in business or economics?
While students with accounting/finance/economics backgrounds typically receive offers, students who do not major in such fields are equally capable of receiving offers. Investment banks do not discriminate solely on major. Instead, they look for accomplishment in a candidate’s particular field of study because these individuals possess the characteristics that will indubitably allow them to excel in the industry.
Is it true that analysts experience a significant decrease in their quality of life?
No! Just as in any other occupation, the first years are geared towards providing the analyst with the tools necessary for future success in their career. Depending on economic conditions, the strength of one’s group and the analyst’s ability, assignments may vary. At times, the analyst may find themmselves involved in numerous concurrent projects and, at other times, the analyst mayfind themselves with more free time.
What are the opportunities for promotion in an investment bank?
Investment banks follow a typical pyramid structure, similar to the structure shown below:
|
Role
|
Description
|
 Analyst |
Undergraduates begin their investment banking careers as analysts (typically a 2 year program; exceptional analysts are sometimes offered a 3rd year). |
| Business School |
Upon completion of a two-year program, many choose to attend business school. Often the company will pay for the employee’s tuition. |
| Associate |
Upon completion of business school, many will return to join firms as Associates. Here, the bankers take on increased responsibility typically supervising the analysts, preparing financial reports, and gathering documents for senior bankers to pitch ideas. |
| Vice President |
Vice Presidents work with associates to oversee the work produced by analysts and begin to be more involved in developing client relationships. |
| Managing Directors |
Managing Directors are heavily responsible for developing strong relationships with existing clients and seeking new prospective clients. |
Interview Queries
What is the best way to prepare for an investment-banking interview?
The following publications should be helpful:
- Vault Guide to Finance Interviews
- Wall Street Journal
In addition:
- Locate peers with involvement in the industry and contact alumni in the industry
What is the structure of investment banking interviews?
For summer internships, investment banks usually have two rounds of interviews. The first round is held at UCLA’s Career Center. The second round is typically held at the firm’s regional office. Full-time interviews may last for as many as three rounds. The first round is held on-campus, while the second and third rounds are held in-office. The number of rounds will vary per firm.
