Key Roles of an Investment Banker, Essay Example

An investment banker is an individual who works for a financial institution and acts as an underwriter issuing securities (front office function). In addition most also maintain market/dealer operations and offer advisory services to investors.  They have a large role in helping to formulate mergers and acquisitions, private equity placement and corporate restructuring.

Most investment bankers work long and unsociable hours but the rewards can be equally significant. They work these hours in order to meet deadlines and close deals. Most banks look towards recruiting young University graduates with a first class honours degree in an appropriate discipline from a highly respected University. Most banks prefer the disciplines to be in relevant subjects like Accounting, Statistics, Economics or Mathematics. Most entrants also have postgraduate degrees such as an MBA or M.Sc in a related subject area.

The key roles of the Investment bankers may be briefly described as follows:

• Helping customers raise finds in the Capital Market:
• Dealing with issues of Corporate Finance like corporate restructures or mergers and acquisitions;
• The buying and selling of financial products or trading.

Most of the key activities take place in what is known as the front office, essentially the trading arm of the bank, Hence you deal with global transaction banking, Investment Management and Merchant Banking.  The middle office deals more with such items as Risk Management, Corporate Treasury, Financial Control and Corporate Strategy. The less glamorous back office deals with the operations and administrative side of the Bank and the information technology component which some have described as the ‘engine room’ of the bank.