related Archives | Imarticus

Back to Basics| Equity Research Primer: Learn about the role of Equity Research analyst, and the type of reports that are used to analyze a business

  • September, 2nd, 2015
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IFAP graduate, Ami Telli, talks about her new job and what Imarticus means to her.

Ami Teli
One of the many reasons students attend an Imarticus course is to change the course of their career. Take Ami  for instance. She came to us with a Masters in Engineering having never worked in finance and left us with a job with Gravitas, a leading financial services firm focused on the research. It’s not easy and entails a lot of work but Ami was extremely focused. She constantly engaged with faculty to ensure proper learning. Ami’s success proves that there’s nothing to beat a combination of hard work, ambition and the right course. It’s been about six months or so now and we caught up with Ami and had a quick chat on how she was doing.

1. Tell us something about what you do now? What does your new job entail?

“I work as a credit research analyst at Gravitas Technology Pvt Ltd, which is one of the leading service providers to the alternative investment industry. My new job entails building and maintaining financial models from a credit perspective and drafting my research findings and observations for credit focused clients.”

2. What do you enjoy most about your new job?

“Since I am doing project-based assignments for the clients at Gravitas, I get to analyze a variety of public and private companies of various sizes and sectors.”

3. Walk us through a normal day at Gravitas?

“A normal day at Gravitas would involve a typical credit analysis of a company which would include:

• Industry analysis, company analysis, Key ratio analysis, Fundamental credit analysis (e.g. making a capital structure table, leverage analysis), Writing about the Credit outlook of the company

If available, I also read the company reports published by the top credit rating agencies like Moodys, S&P, Fitch as I get to understand their methodology in assigning a particular credit rating to the company. I also read initiating coverage reports of public companies as it helps me better understand the company’s business and the risks involved.”

4. What was your favorite subject at Imarticus and why?

“My favorite subject at Imarticus was Equity Research. We got started by learning the basics of equity research, the different types of equity research reports, how to analyze an industry and company, financial analysis and finally writing an equity research report. This helped me tremendously even in my role as a credit research analyst as it taught me financial statement analysis and also basics of industry and company analysis.”

5. How has Imarticus contributed to you in your new role? Which subjects have been most useful?

“I would give most of the credit in my new role to Imarticus for aiding a non-finance graduate, like myself, to secure a job as a credit research analyst in about 4 months. They started by teaching accounting basics, learning about company valuation, writing an initiating coverage report and delivering a M&A pitch presentation, all in a matter of months. All subjects in the IFAP course have helped me in my career so far in some way or the other-so it is hard to pick out a subject which hasn’t been useful. The curriculum is well designed for any new person who is venturing into the world of finance.”

6. How do you relax?

“I unwind by meeting my friends or by spending quality time with my family over the weekend.”

7. Any resolutions for 2015?

•” To successfully clear the CFA Level 1 examination in June 2015

• To further my skills in financial analysis

• To have a healthy, fun-filled year”

8. What advice would you give to current students in the IFAP program?

“I would advise them the following:

Take advantage of the resources at Imarticus (e.g. Experienced faculty, training in soft skills)

• Don’t procrastinate and rely on the class lectures alone to ace the course. Since this is a short course, it will involve a lot of self-study from your side

• Don’t be afraid to ask questions”

If you are interested in making a lateral career shift to financial services, please come talk to us at Imarticus Learning. We offer free counseling sessions.

  • July, 5th, 2015
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Back to basics| The Securities Business

The global securities industry is a vast platform of interconnected networks that help institutional clients including fund managers, financial service providers, and large corporations buy and sell financial instruments on exchanges around the world.
Sales & Trading
A key function of the bank is the Sales & Trading desk that buys and sells various kinds of securities including stocks, bonds, commodities, currencies, derivative instruments and other financial instruments. Typically an investment bank will perform these tasks on behalf of itself (Proprietary Trading) and on behalf of its clients.

The Sales element of the job is as the word suggests. The team markets trade ideas to high net worth clients and institutions like Insurance Companies, Mutual Funds and any entity that participates in the public markets. Once they sell an idea, they take an order and transfer it to the Trading desk, which prices and executes the order. With financial instruments getting significantly more complex, structuring has become critical and a key USP for banks as they offer more return and fulfill specific needs like hedging a currency risk or reducing an interest rate on a loan through a SWAP. Multi National Companies have become among the they key players in the global derivatives market as they use financial instruments as part of their overall corporate strategy to counter various Macroeconomic scenarios, often creating another revenue stream altogether.

Proprietary trading (PPT) is when the Investment Banks trade stocks, bonds, currencies, commodities or derivatives on their own balance sheet with the firms own money. This is an area where firms make staggering profits or losses and often where ‘Rouge Traders’ are born. Many of these names might sound familiar, Nick Leeson- who brought down Barings Bank and Brian Hunt from Amarnath Advisors.

Every part of the Investment Bank is linked. Going back to our example of Company ABC, the Sales & Trading desk is often the one that will market the deal to clients on behalf of the advisory team and the company. They are part of the road show that takes the clients to meet mutual fund analysts around the world, explaining why this company is a good investment. They often put out an analyst report suggesting analyzing the suggesting the stock.

Underwriting of the stock is a service offered by large investment banks with strong balance sheets. They underwrite, in that they assure their client that they will buy a certain percentage, (ranging from small to the offering in its entirety) if the offering fails in the market. In the event this happens the PPT desk steps in and picks up the stock.

  • June, 30th, 2015
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Read about the trends in the financial sector and our achievements in 2014-2015

  • June, 30th, 2015
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Unraveling the Nestle EPS post the Maggi Fiasco. IFAP students have their say!

  • June, 30th, 2015
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