Financial Services 101

Financial Services Industry

The Role of a Bank

Lenders / Investors

Borrowers / Issuers

Investment Banking: The Sell-side

Investment Banking Overview

CorporateFinance

Sales & Trading

Investment Banking Products

Corporate Finance

• Advisory • Capital Markets• Underwriting

Sales & Trading

• Sales & Trading• Research & Analysis• Origination

Investment Management: The Buy-side

Investment Management Overview

Private Wealth Management

(PWM)

Asset Management

Investment Management Process

• Retail investors• Wealthy individuals• Institutional investors

Investors

Investment Products

Equities Fixed Income

Alternative Investments

Derivatives

The Big Picture

$$$

Advice and arrangement

$$$

Fun

ds

$$$

Asset managers & hedge funds

(Buy-side)

Issuers

• Corporations• Governments• Local authorities

Ban

ks (

sell-

sid

e)

Ban

ks

Secondary markets

Products

Deposits/loansForeign ExchangeEquitiesBondsDerivativesAlternativesStructured

Methods

Exchange tradedOTC

Investors/lenders

• Retail• HNW/Private client• Institutions

Borrowers

• Retail• HNW/Private client• Companies

Wealth

managers &

IFAs

Third party vendors

Products, research and services

$$$

$$$

Cash products

Primary market

The Big Picture

Financial markets move capital from those that have it to those that need it.

Universal Bank – One-stop Shop

Products & Services

Corporate Finance

Provides clients with advice on how

to raise finance and how to

structure M&A deals

Sales & TradingProvides securities

trading for corporate and

institutional clients

Asset Management

Manages money on behalf of others (institutional / retail

investors)

Private Wealth Management

Manages money / caters to the needs of private, high net worth individuals

Sell-side Buy-side

Career Opportunities

Career Opportunities

•Sales (institutional, retail, private client)•Trader (product specialization)•Research Analyst (product, industry)

Sales & Trading

•Investment Banker (product, industry)•Equity Capital Markets (ECM) Analyst•Debt Capital Markets (DCM) Analyst

Corporate Finance

•Research Analyst (product, industry)•Portfolio / Investment Manager•Relationship Manager

Investment Management

Personality Characteristics

Sales & Trading

Corporate Finance

Investment Management

Another Way of Looking at It...

Front Office

•Sales & Trading•Corporate Finance•Investment Management

Middle Office

•Risk Management•Corporate Treasury•Financial Control•Corporate Strategy•Compliance

Back Office

•Operations•Technology