The world of investment banking has undergone a huge transformation in the last decade. Gone are the days when investment bankers were professionals who worked for one or two banks and made multi-million dollar deals. In today's time, this is a highly competitive industry with many more people vying for lucrative positions. In fact, there was an increase in demand by 66% in the last decade, as Bloomberg reported.
The boom in this sector has resulted from increased demand for investment bankers, and it's not slowing down anytime soon. This article will discuss some of the fascinating insights Into how investment banking works, what an investment banker does, and how to start a successful career as an investment banker.
How does investment banking work?
Investment banking is a lucrative profession as it involves various stages of the financial sector. An investment banker offers its services to organizations and individuals in need of funds for their business, such as startup companies or international conglomerates with projects that require large sums of money.
Investment bankers are often involved in raising capital either through an IPO (initial public offering) or via private placements along with many other activities like mergers and acquisitions. They also provide advice on corporate strategy, securities offerings, etc., based on their current knowledge about domestic markets.
Key insights into the boom in the investment banking industry
- The investment banking industry is experiencing a boom as the demand for bankers has increased. As of now, there are more than 250 new jobs available in this sector, and banks like Goldman Sachs have advertised 130 positions ranging from analysts to associate-level managers. Investment Bankers earn average salaries that range from $69k-$200k depending on their rank
- A graduate degree can help you stand out when applying for these jobs—students who hold master's degrees or higher make up almost 40% of all newly hired investment bankers each year. Graduates with MBA degrees get paid an average salary of over $100K per annum. Graduates who have a bachelor's degree earn about $70K per annum.
- The demand for investment bankers has risen because of the changing market dynamics and global climate that is forcing more investors to hedge against riskier assets like stocks or commodities. This increase in investments requires banks to expand their operations. Hence there are increasing numbers of new jobs being created all over the world
What does an investment banker do?
Investment bankers are financial professionals who work to provide advice on raising capital for businesses. They are typically employed by large banks or other companies, although they may be self-employed if working in the private sector.
There are various types of jobs within the industry - an analyst will research potential markets before making recommendations, a trader will attempt to buy and sell stocks at the most profitable rates, while investment bankers often work with clients on mergers and acquisitions before concluding transactions.
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