Investing jobs are the foundations of banks and financial institutions. However, one can find similar profiles in the special divisions of various companies as well. The scope and prospects of an investing job depends primarily on a candidate’s educational background.
Although graduation is a minimum requirement for investing jobs, individuals with high drive can easily start out at the entry-level without a graduation degree and gradually work their way up. Higher level investing jobs usually require a globally recognized specialized degree, such as an MBA or CFA.
Investing Jobs: Avenues
Jobs in investment banks can be found in the following avenues:
Mergers and Acquisitions (M&A)
This division caters to setting up deals between different companies during mergers and takeovers. Jobs in this area involve acting as an advisor to clients, valuing transactions, structuring deals and negotiating favorable terms. The M&A division of investment banks are increasingly participating in merchant banking, which involves handling corporate spin-offs and bridge loans. Entry level jobs in this segment involve a lot of work on spreadsheets and other valuation models.
Structured Finance
Jobs in structured finance involve the development of various financing methods, for shifting the capital to clients, also known as asset-backed securities. These usually involve auto loans, credit card receivables or mortgages. The important skills for investing jobs in corporate finance are understanding of accounting and various laws, along with strong spreadsheet skills.
Institutional Sales
Investing jobs in institutional sales involve conveying information on various investment opportunities to institutional investors. Such jobs usually require close association with portfolio managers, traders and analysts. Product knowledge, salesmanship and strong negotiation skills are imperative for a career in institutional sales. Experience in institutional sales qualifies one for jobs in insurance and mutual funds (buy side).
Corporate Finance
Investing jobs in corporate finance involve assisting companies in raising capital for new projects as well as ongoing operations. The primary responsibility involves determining the amount and composition of funds needed by the client. The important sources of corporate funding are equity, debt, convertibles, asset-backs and derivative securities. Entry level positions in corporate finance usually involve working on a client team to prepare registration statements and conduct other formalities associated with the securities.
Investing jobs are very demanding and typically require putting in long hours of work. However, a career in investing is well paying with great growth prospects.