Most investment banks maintain a large staff of research analysts to support their securities sales business. Wall Street security analysts perform two basic roles.
Their primary responsibility is to provide in-depth investment advice to the firm’s clients, largely through extensive written reports, and to sell their advice to the firm’s securities sales force or directly to investors.
Particularly for institutional clients, research analysts commonly specialize in companies within a specific industry.
Security analysts also use their industry expertise to assist the firm’s other departments in analyzing transactions and bringing new investment banking business to the firm in this capacity senior analysts often have extensive client contact.
The job qualifications frequently sought of research analysts are that they – write well, communicate well verbally, and want to do research and analytical work, rather than manage people. Beyond these general talents, firms differ greatly on the amount of technical expertise they expect from MBAs.
Compensation for research analysts is generally more predictable than for more transaction-related positions within investment banks.
Analysts salaries may be expected to rise more steadily and gradually than those of deal-doers”, reflecting the analyst’s increased value to the firm as he or she builds expertise in a certain industry.
The economic and capital markets of today are increasingly interrelated and interdependent. Strategic financial considerations often extend beyond national borders, and financial decisions for domestic and international corporations are affected by the larger issues of national economies, political trends, and global financial and capital markets.
Investment banks provide worldwide financial services and access to capital markets by negotiating international financings such as mergers, joint ventures acquisitions equity participations, and debt issues.
Most firms also provide clients with services to minimize international currency risks, manage offshore liquid assets, arrange export credits and maintain foreign investor relations. Some firms trade Eurobonds and other international securities in foreign markets and are secondary market makers in those securities.
Although most of the British and European houses have their roots in international investment banking activities, it was not until the late 1950s that most U.S. firms started to look abroad. This trickle has grown into the proverbial flood over the last twenty years.
Assisted initially by U.S. capital outflows and the presence of U.S. corporations around the globe, and later by increased foreign investment activity in the (is Today, practically all U.S. investment banks have some international presence and capability.
The extent of the services offered by different firms varies considerably. Most of the larger firms have international subsidiaries or affiliates, largely based in London. Japan, and I-long Kong which act both as intermediary for the parent and for their own account.
These branches offer a full portfolio of financial services to U.S. corporations, as well as to foreign clients. This continues to be a high growth area for investment banks offering more and more opportunities for MBAs.
In addition to domestic clients who require international services, many foreign corporations are starting to use the U.S. capital markets as a source of finance.
US, firms provide the same investment banking services to these corporations in the States as to their domestic clients such services include debt and equity offerings in dollars private placements, business combinations and divestitures commercial paper issuances, project financings and the broad range of other advisory services, including currency arbitrage.
Associates in international investment banking do essentially the same kind of work as those in domestic corporate finance, with a few major differences.
Transactions take place in various currencies and are executed in markets which operate under different rules from the U.S. Most investment banks have incoming MBAs spend the initial few years as generalists in the domestic corporate finance department.
Obviously competition for the few entry-level positions that do exist is quite intense. Fluency in a foreign language may be an advantage, but his not a prerequisite at most firms.