Are IBD analysts revenue-generating?

Because, surely, they are just paid to do financial modelling and work on pitches while the VPs and MDs go out and attract businesses to use their services. Of course it's front office either way, but are they adding any value that credit risk/back office people aren't? Sales, research and trading analysts do actually generate revenue at the analyst level but do IBD?

Reply 1

gr8wizard10

dude what are you talking about

if it weren't for analyst what work will actually get done to even get these inflated advisory fees, be-it client requests/ pitches/ handling logistics/ VDR coordination/ organising meetings and coordinating email distribution lists.

alongside the endless other glorified administrative duties

Reply 2

Sayed0123

I understand your point, the analysts don't bring in any revenue directly unlike sales/trading but it's their service of producing models, pitches that helps the bank get revenue.

Reply 3

natninja

Original post by Ladbants

Two ways of looking at it on a fairly fundamental level:

Yes as they directly contribute to the work product and without their work there would be no fees actually received. Though the IBD analyst only generates revenue in the same sense as credit risk or settlements - they do the necessary work to execute but don't originate.

No as they are there to save cost only. Someone more senior could do the work but that would be cost inefficient.