Banking
Investment banks also recruit graduates and more experienced people for roles in their Banking Divisions. Some of these opportunities are similar to positions in the large commercial banks, but the emphasis of the roles can be very different. The main thing to appreciate is that the revenues of Investment banks are generated primarily through fees and commissions, not by lending money. Commercial banks, on the other hand, have traditionally earned much of their income by granting loans to their customers. However, as with so much else in modern banking, this is a very grey area: large commercial banks are striving to generate more income by fee-earning services, while Investment banks are taking a more active role in lending.
The greater interest that investment banks are taking in lending is the result of the progressive convergence of the debt and capital markets. For example, loans to large corporations and institutions, as well as other assets and receivables are ‘securitised’ and repackaged as bonds and sold to investors. Investment banks are increasingly taking a leading role in arranging these and other types of ‘structured’ transaction, including those where special expertise is required. These can include complex trade finance and multi-million dollar project finance transactions.
Banker
In terms of pure job descriptions, you can expect to find interesting ‘banking’ career opportunities in the broad areas of private banking, corporate banking, project finance, loan syndications and structured finance, leasing, trade finance, venture capital and management buyouts. Investment banks’ own recruitment literature will describe many of the opportunities available. You should visit the web sites of some of the banks mentioned in the ‘Job Search’ section to find out more. In some banks the roles themselves will be closely linked to the activities of the Corporate Finance division, or may even be undertaken within that same division.
Investment banks demand the same high calibre recruit as for their corporate finance, equities and financial markets divisions, though competition may be a little less intense. It is not a soft option! To join as a graduate trainee you will need a good first degree. Other recruits may possess a relevant professional qualification in accountancy or law. All the roles described in these notes will require high levels of analytical ability, numeracy, I.T. skills and interpersonal skills. Hours of work will largely depend on the particular requirements of the area in which you choose to specialise.
