Definition: Investment banking analysts work in investment banking firms and are responsible for monitoring and analyzing the market trends as well as producing reports.
What Does Investment Banking Analyst Mean?
What is the definition of investment banking analyst? Working as an IBA is a demanding position that requires more than 80 hours a week on a PC monitor to gather information and pitch various analyses on different topics, including sector reports and macroeconomic views.
Most IBAs have great problem-solving skills, are detail-oriented and hardworking, disciplined individuals. Often, they are asked to work long hours on hard tasks that require a positive attitude and a love for the profession. On the upside, working as an IBA comes with a great compensation plus a year-end bonus, which depends on individual performance as well as on the type of investment bank, i.e. bulge bracket or boutique.
Let’s look at an example.
Eloise is an IBA, and she works for Goldman Sachs. Her expertise is the technology sector, and therefore, she attends several technology conferences throughout the year.
As an IBA, Eloise is familiar with financial models such as capital asset pricing model(CAPM), discounted cash flow model (DCF), leverage buyout model (LBO) and others, and she loves to perform industry research and analysis, use the inputs in the models, and reach firm conclusions about the technology company at hand. In addition, she prepares presentations for her clients as well as confidential memos for the manager.
Based on her performance, Eloise has the potential to advance in the company. However, she should pursue every opportunity that arises to excel and should demonstrate a willingness to deal with any issue, even if it seems quite minor for her skills. In fact, Eloise aims at acquiring all the relevant experience that will get her a higher position in Goldman Sachs or in any other prominent firm in the industry.
Define Investment Banking Analyst: IBA means a researcher who studies trends in the market for his or her firm to take advantage of.