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What is investment banking like?

I've read job descriptions for investment bankers but I want to know in a bit more detail. I'm just curious to see what an average day is like. What sort of tasks do they do? What sort of hours do they work? That sort of thing. The more detail the better!

And also, what is the best degree to do if I want to get into investment banking?

Thanks in advance :smile:
Reply 1
Avatar for RugbySid
RugbySid
7
I was thinking about it as well. You work really long hours and probs have to work in london. A economics degree or mangament degree would be goog. I looking at the economic and mangament degree at oxford but it really hard. Only 2.9% of applicants get in
Original post by alicemunro
I've read job descriptions for investment bankers but I want to know in a bit more detail. I'm just curious to see what an average day is like. What sort of tasks do they do? What sort of hours do they work? That sort of thing. The more detail the better!

And also, what is the best degree to do if I want to get into investment banking?

Thanks in advance :smile:


Since I cba explaining, here are some lovely links:
Mergers and Inquisitions, the Unofficial Guide to Banking, TargetCareers - Banking, AllAboutFinanceCareers and the Investment Banking Guide by Vault, Wall Street Oasis - FAQ


The degree is irrelevant tbh, it's more important that you end up at a target uni (Oxford Cambridge, UCL, LSE, Warwick, Imperial - about 80% of all front office roles are filled with people from these places) or a semi-target (Durham, Bristol, Nottingham, Cass Business School, Bath etc) if you want a decent shot.

That said, for more quant heavy roles (i.e. exotic derivatives trading or structuring) a degree in quant heavy subjects such as: Maths, Computer Science, Engineering, Physics would be pretty much required. For everything else, you can do whatever you want (within reason, of course, no David Beckham studies or Film and TV) so long as it's an otherwise respected degree.

For IBD (so stuff like M&A, Leveraged Finance) hours are on average 80 hours a week for analysts, with peaks of 100+ on occasion and lows of 70. These go down the more you progress, so an associate would work less than an analyst, a vice pres would work less than associate and so on.

For S&T/Research (stuff like trading, sales, structuring, research), hours are more market focused. So, like 7am-7pm or roughly 60 hours a week. Bearing in mind that these are fully switched on, constantly connected to the market type of hours. Some more complicated financial product desks might work a bit more than that - maybe 70-80 ish.

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Original post by RugbySid
I was thinking about it as well. You work really long hours and probs have to work in london. A economics degree or mangament degree would be goog. I looking at the economic and mangament degree at oxford but it really hard. Only 2.9% of applicants get in


Economics isn't really applicable to corporate finance, or even most non-macro based trading desks.

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work: whatever the managing director wants us to do. from doing valuations to changing font sizes.
Reply 5
Avatar for df2397
df2397
14
how do investors make money from Mergers And Acquisitions
Reply 6
Avatar for df2397
df2397
14
Original post by alicemunro
I've read job descriptions for investment bankers but I want to know in a bit more detail. I'm just curious to see what an average day is like. What sort of tasks do they do? What sort of hours do they work? That sort of thing. The more detail the better!

And also, what is the best degree to do if I want to get into investment banking?

Thanks in advance :smile:

economics or medicine, engineering is also very popular
OP, I would listen to @Princepieman ; he's very knowledgeable in this area as he's done a fair bit of research for himself.
Original post by alicemunro
I've read job descriptions for investment bankers but I want to know in a bit more detail. I'm just curious to see what an average day is like. What sort of tasks do they do? What sort of hours do they work? That sort of thing. The more detail the better!

And also, what is the best degree to do if I want to get into investment banking?

Thanks in advance :smile:


As a long time investment ******, I can tell you from first (and sometimes both) hand experience that it is literally better than sex.

Investment banking is like sweet tender love upon a mountain of hot babes. But instead of babes, we have money. And instead of love, we have money. And instead money, we have neglect.

Why did you never love me father? WHY?

The greatest part of investment banking is how it got rid of my wife, Barbara. Now, I'm free, like a rat in a sewer. I can finally make low to the most important person in my life, me.

They say we all need a right hand man. I just need my right hand.

That's the beauty of investment banking.
Original post by df2397
how do investors make money from Mergers And Acquisitions


Wot? This question doesn't even make sense.

A company will acquire another company for various reasons: to expand their focus, capture intellectual property, capture talent, branch into new industries, or even to boost their bottom line. A company will choose to merge with another to gain larger market share, consolidate two similar businesses, grow inorganically etc.

Private Equity funds are the ones that invest in full businesses, improve them (or at least boost their profitability), then sell them off. Investors in the fund see their investments grow depending on the overall return of the fund.

Ultimately, IBs advise, and devise ways to finance these deals. They are like strategic financial advisors - normally leading the entire process (including proposal, competitor comparison, negotiation, valuation etc) from start to finish, on behalf of their clients

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Original post by df2397
economics or medicine, engineering is also very popular


Or any respected degree...

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Original post by df2397
how do investors make money from Mergers And Acquisitions


the bank makes money by charging a fee in return for giving advice and executing a deal
Original post by gr8wizard10
the bank makes money by charging a fee in return for giving advice and executing a deal


Do you have any idea on how much fees investment banks would make, lets say from a transaction worth 1 billion dollars.
Original post by 96jaimin96
Do you have any idea on how much fees investment banks would make, lets say from a transaction worth 1 billion dollars.


Depends on the terms of the deal, usually it's like 1-2%. I think the bigger the deal, the smaller the percentage and vice versa.


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(edited 8 years ago)
Original post by 96jaimin96
Do you have any idea on how much fees investment banks would make, lets say from a transaction worth 1 billion dollars.


15m maybe

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