Basic Introduction to Financial Sector Part 1: Institutions and Roles of Individuals © Copyright 2012 MUTIS. All rights reserved 2012

Basic Introduction to Financial Sector Part 1: Institutions and Roles of Individuals

© Copyright 2012 MUTIS. All rights reserved 2012.


Sell Side Buy Side

Investment Bank(Barclays Capital,

Citigroup, Morgan Stanley etc)

Investment/Asset Managers

(Fidelity, Blackrock etc)

Hedge Funds

Pension Funds


Investment Bank

Middle Office ( Generally Risk Management)

Global Markets

Back Office (Mainly Operations and Technology)

Front Office (Revenue Generating Roles)

Investment Bank

Equity and Debt Capital Markets

Sales, Trading & Structuring

Mergers and Acquisitions

Products (Equities, FICC, Derivatives etc)

Sector: Generalist or Specialist (Healthcare, Oil & Gas, Mining etc)

Research

Research


Global Markets

• Sales: Build and maintain client relationships, selling new trading ideas. • Trading: Execute client orders or take proprietary trading positions for the bank (less so now)

• Structuring: Create and develop tailored products to match client needs.


Research

• Research: Analysts will work closely in analysing securities, they will meet with companies and also interact with GM.


Capital Markets Origination.

• Equity Capital Markets: When a company issues equity for funding e.g. IPO. • People working in this area will originate, structure and execute an issue.

• Debt Capital Markets: When a company issues debt (bonds) for funding.

• People working in this area will originate, structure and execute an issue.


M&A

• Mergers: When two or more companies join (people working in this area will advise such companies partaking in the deal)

• Acquisitions: When a company buys another (people working in this area will either advise the acquirer or the one to be acquired)


Sell Side (Client)

Fund/Portfolio Manager (Generalist)

Buy Side Analyst (Specialist)

Trader (Generalist)


Two Other Popular Roles

• Corporate Banking: The corporate’s bank.

• Wealth Management: Will help meet the financial and investment needs of individuals, families, businesses and institutions.

The information and material provided at MUTIS is for educational purposes only and does not constitute financial product advice. The views of the speakers are their own and not those of MUTIS. MUTIS does not represent or warrant that the information or material is complete or accurate. You should consider obtaining independent advice before making any financial decisions. If you are seeking advice (including a recommendation or opinion) about a financial product you should consult a certified financial advisor. To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of the information or material is accepted by MUTIS



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Basic Introduction to Financial Sector Part 1: Institutions and Roles of Individuals © Copyright 2012 MUTIS. All rights reserved 2012