merchant banking vs investment management

firstly, i was thinking that i would want to be an investment banker. but then i read up on the long hours and also how it is not so much 'investment' related as i first thought. so i wanted to get a better insight into the above two (mb and im), and how they compare to ib aswell as eachother.

Reply 1

Khalsa1846

coz im now very jetlagged i cant be bothered to research this...so please someone answer this?

Mandeep

Reply 2

jrhartley

merchant banking = investment banking. merchant banking is the old uk name for the job, investment banking is the americanised version, which is now mostly used as most of the big banks are us owned.

if you thought investment banking meant you made investments in stocks, companies, then you really want to be focusing on portfolio management (traditional or hedge funds) for shares or private equity / venture capital for investment in unquoted companies / fledglings.

Reply 3

love2learn

I've heard it's long hours and high stress, but good in financial terms. I think they are the same thing (IB and MB). Maybe it has something to do with the opening and closing times of the financial markets...

Reply 4

IZZY!

all high paid jobs consist of long hours and high stress. Depends what you really want from your life. Whether you want to build up ur career or just chill.

Reply 5

fuglyduckling

You should concentrate on the different areas within IB - for example, sales traders as opposed to analysts. The hours and type of work vary greatly, depending on what job you are doing!

Reply 6

clouds

That means there are many aspect to IB right.So can i say that u should try to get in first before deciding which spec field u want?Or u have to choose right from the start?

Reply 7

jrhartley

clouds

That means there are many aspect to IB right.So can i say that u should try to get in first before deciding which spec field u want?Or u have to choose right from the start?

yar... many aspects to ze job.

normally you need to decide (in broad terms)

a) Equities (think about research or sales)
b) Fixed Income (again, research or sales)
c) Derivatives / special products (think maths!)
d) Corporate finance

on your application. Most IBs have a graduate programme within those broad divisions, and you will get to see the operations and be able to specialise at a later date. Where you end up will obviously be an interaction of what interests you and where the bank needs to have more staff working.

Reply 8

Japie

In "Monkey Business", I've read that sometimes investment banks include a merchant bank, and that it is "the most orgasmic place to work on Wall Street" :rolleyes:

Reply 9

jrhartley

Japie

In "Monkey Business", I've read that sometimes investment banks include a merchant bank, and that it is "the most orgasmic place to work on Wall Street" :rolleyes:

that would be a reference to the more historic nature of merchant banks - trade financing - but really merchant bank is a legacy term. RE: the quote - well, what are the alternatives on Wall Street - NYSE? the Bagel shop on the corner? If you define it against the other businesses in the locale, then maybe that's a fair statement, but casting the net wider, its only an "orgasmic" career if you are a bit of a geek and don't get out much. trust me, the excitement of looking at your salary hit your bank account every month is exciting when you start, but the novelty soon wears off. bonus time is amusing, but its more like schadenfreude than orgasm!

Reply 10

chazzinio

mb and ib are listed as different occupations on the goldman sachs website. mb is investing in small companys and helping building them up (ib on a smaller scale) , whereas in ib you are dealing with ready big companys who want certain financial services and m&a.