Investment Banking Division Overview
Here’s a fellow WSO user breaking down this division:
Investing Banking is usually broken up into product groups and industry groups:
- Product groups are separated into M& A, restructuring, leveraged finance
- Industry groups focus on specific industries
Usually the product groups collaborate with the industry groups and in some cases each industry group does bits and pieces of the work that a product group would normally do.
For example, at Goldman each industry group does their own M& A work, there is no separate M& A product group. The specifics really depend on the bank but for the most part it usually comes down to product groups vs. industry groups.
Making a decision between working in a product group vs. an industry group depends on whether you want to gain in-depth knowledge of a particular industry or whether you want the breadth of working with a variety of industries but in one particular function.
What Is Your Background
I grew up in Kansas City, Missouri, and completed my undergraduate degree at Drake University. After graduation, I spent a few years working in economic development across Africa, Asia and Latin America before attending business school at The University of California, Berkeley’s Haas School of Business. I wanted to make a career switch to traditional finance, specifically investment banking.
I interned with Morgan Stanleys Investment Banking group in San Francisco and started my career with the firm there following graduation, about four and a half years ago. I relocated to the firms New York Investment Banking team just under three years ago. My husband, who is also in finance, and I are avid travelers. We’ve been throughout Central America and Asia as well as recent trips to Iceland, Russia and East Africa.
Advice From Morgan Stanley: How To Ace Your Investment Banking Internship Application
As one of the most sought-after roles in finance, securing a full-time graduate job in investment banking can be a challenging proposition. An internship with a leading firm is a big step in the right direction and can make all the difference come final year applications.
With competition for places on many internship programmes intense, it pays to have an idea of what the people making the all-important hiring decisions are really looking for.
We spoke to a number of recruiters from the graduate recruitment team at one of the worlds leading investment banks, Morgan Stanley. They gave us an insiders view on what makes a good investment bank internship application, starting with some general dos and donts for prospective applicants:
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What Do You Enjoy Most About Your Role
One of the best things about being in Investment Banking at Morgan Stanley is that we work closely with our colleagues, who are talented professionals with different backgrounds, in our offices all over the world. My colleagues are always there to support me, helping me to broaden my knowledge in finance and real estate.
How Much Does A Investment Banking Associate At Morgan Stanley Make
The typical Morgan Stanley Investment Banking Associate salary is $196,012 per year. Investment Banking Associate salaries at Morgan Stanley can range from $53,758 – $275,000 per year. This estimate is based upon 64 Morgan Stanley Investment Banking Associate salary report provided by employees or estimated based upon statistical methods. When factoring in bonuses and additional compensation, a Investment Banking Associate at Morgan Stanley can expect to make an average total pay of $251,800 per year.
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What Do You Like About Working At Morgan Stanley
Theres lots of attention paid to job satisfaction. I spent three years in Business Services as an Analyst focused on M& A. I enjoyed it. But when I became an Associate, I told them, I don’t feel Ive gotten enough exposure to equity. I just raised my hand and said: Id like to do something different. Two or three months later, I got a call saying, There’s a spot open. So I did a rotation for almost a year in equity capital markets.
Making Moves To Give Future Earnings More Stability
While M& A activity is expected to remain robust, faster-than-expected interest rate hikes could impact Morgan Stanley’s investment banking division. This is a big reason why the firm spent $20 billion to acquire asset manager Eaton Vance and electronic trading platform E*Trade in the past couple of years. According to Gorman, each deal “provides more balance to our business model. It’s more wealth management revenue, it’s more stability, it’s less volatile than the core markets business.”
The acquisitions are already driving growth for Morgan Stanley across segments, with wealth management revenue in Q3 growing 27.5% to $5.9 billion year over year while investment management revenue grew 37.6% to $1.5 billion. Through these two acquisitions, client assets have grown $400 billion this year, bringing total combined client assets under management to $6.2 trillion.
If Morgan Stanley were to see a shock to investment banking revenue in 2022 or beyond, the firm is well-positioned to capture revenue from its other sources. Increased volatility could increase trading activity on its E*Trade platform, and higher rates could drive increased interest income for the firm. This stability to Morgan Stanley’s future earnings is one reason why I continue to be bullish on this value stock, which trades with a price-to-earnings ratio of 13.2 while competitor Charles Schwab trades at a 31.6 P/E ratio.
Investment Banking Division : What Is It
- Investment Banking Division : What Is It?
Expertise:Asset Management | Investment Banking | Private Equity
It’s important to note the distinction between the “Investment Banking Division ” and an “Investment Bank “. The Division refers to the subset of a bank that performs investment banking activities, typically:
- M& A Advisory
Banking refers to the specific field of finance as a whole and as a firm that offers a wide array of services such as:
- Corporate finance and advisory
- Acting as a broker for clients and even trading its own funds
- Managing assets for clients
The slide below does a great job of breaking down the banking structure:
What Do You Do At Morgan Stanley Now
In Investment Banking, our clients are corporations. We work alongside our clients to help them access capital markets through debt or equity transactions. We also provide M& A advisory servicesone of Morgan Stanleys core strengths. In M& A, we help our clients think through their business portfolioidentify what types of businesses are most strategic or profitable, advise on the buying or selling of businesses, and strategically plan the allocation of capital to grow the business and return to shareholders.
We have a range of clients, from very small private companies to highly diversified, mega-cap public companies. Each relationship is unique, which requires us to leverage a wide spectrum of technical and soft skills to provide those clients with the best advice.
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What Is Management Watching For In 2022
One point that CEO James Gorman discussed during Morgan Stanley’s earnings call was how volatility could increase in markets next year. Specifically, he pointed to the Federal Reserve’s tapering activity and how the Fed’s dot plot suggests interest rate increases will come next year too. Overall, he says “it’s good to be watchful right now” and that there is “nothing to suggest there are any issues” but “over the next 18 months, we’ll see more of that as the Fed starts to move.”
One reason Gorman is keeping a watchful eye on interest rates is because this could ultimately affect M& A activity and cause investment banking revenue growth to slow down. While a gradual increase to interest rates may not have too big of an impact on deal-making, faster interest rate hikes could cause higher volatility in markets from interest rate shocks which could discourage deal-making activity.
How Has Your Role Changed Since You Joined The Firm
When I first joined, I focused a lot more on working with spreadsheets and presentations than I do now. As Ive developed in my career, Ive increasingly spent more time with people from other divisions, like Global Capital Markets, and with people on the client side, attending more client meetings than I did before. I can see that Ive gradually taken on more responsibility, which is something that I really like about my job.
Ms Bank Resource Management Division
APAE – Private Equity Partner: BRM is a combination of Fixed Income, Equities, and the Prime Brokerage businesses and essentially synthesizes counterparty risk in all brokerage activities. It has a lot to do with securities lending on the equity side as well as repo/reverse repos. It’s essentially lending and borrowing securities to help the largest institutional investors execute their investment strategies while more accurately managing exposure to each firm.
Our users share that this is considered to be a Front Office role.
stirman:It’s definitely a front-office role that has been taken from parts of Sales & Trading’s Equity and Fixed Income division. The three main areas of business include: Securities Lending, REPOs, and Counterparty portfolio management
MS BRM Internship Program
If you intern with the firm you will rotate through different groups within the division. If you return full time, you will be placed into one of these groups.
Morgan Stanley describes the internship in the post below.
Early Life And Education
Morgan was born on October 24, 1900, in to and Jane Norton Morgan . His father was the son of and his mother was the daughter of Boston banker and mill owner Henry Sturgis Grew . He was educated at and graduated from in 1923.
In 1923, the same year he graduated from Harvard, he joined and was a from 1928 to 1935. In 1935, he co-founded together with when the forced the separation on and .
At the death of his father in 1943, he and his brother, , inherited the estate. Morgan owned a 448-acre estate, which is located at Eaton’s Neck Road, , New York, United States.
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Morgan Stanley Bank Resource Management
Does anyone have any information about the BRM department at Morgan Stanley. From what I understand it is kind of like prime brokerage, but I don’t really have a clear picture of what they do. Do summer analysts in BRM move on to a sales or trading desk if they get a full time offer? Also does anyone have information about the hours?
Business Units Of Morgan Stanley
The financial services company is organized into three business units that include:
The wealth management division provides various financial services and solutions to individuals, small and medium enterprisesMarket CapitalizationMarket Capitalization is the most recent market value of a companys outstanding shares. Market Cap is equal to the current share price multiplied by the number of shares outstanding. The investing community often uses the market capitalization value to rank companies, and institutions. Services offered in this unit include brokerage, credit, investment advisory, wealth planning services, annuity and insurance products, retirement planning services, and managing of fixed income securities.
In 2009, Morgan Stanley and Citigroup agreed to combine their wealth management business segments and renamed the new unit Morgan Stanley Smith Barney. Morgan Stanley held a 51% stake, and Citigroup owned a 49% stake in the company. The company was renamed to Morgan Stanley Wealth Management in 2012 after purchasing an additional 14% stake in the unit. Later in 2013, Morgan Stanley received approval from the regulatory authorities to acquire the remaining 35% owned by Citigroup.
Institutional Securities Group
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Introduction To The Investment Banking Division
Morgan Stanley believes capital has the power to create positive change in the world. The biggest and most impactful changes come from people like you. If you come to Morgan Stanley, what will you create?
We would like to invite university students from any degree discipline, with interest in the financial services industry, to attend our virtual Morgan Stanley Investment Banking Webinar session.
Date: May 5, 2020 Time: 10:00am – 11:00am Mode: Online
Here’s what you can expect:
- Introduction to the Investment Banking Division at Morgan Stanley and the work we do
- Discuss the advantages and unique career opportunities the Asia region presents
- Gain insight into the day-to-day life of our bankers and their roles at the firm
- Overview of career opportunities in IBD and the skills we look for
- Live Q& A with our panelists
Overview Of Morgan Stanley
Morgan Stanley is a global investment bankBulge Bracket Investment BanksBulge Bracket investment banks are the top global investment banks. The list includes companies such as Goldman Sachs, Morgan Stanley, BAML, and JP Morgan. What is a Bulge Bracket Investment Bank and that was founded on September 16, 1935, by Henry Sturgis Morgan and Harold Stanley. Headquartered in midtown Manhattan, New York City, the company operates in 42 countries globally and employs more than 55,000 staff. It provides investment bankingIBD – Investment Banking DivisionIBD is an acronym for the Investment Banking Division within the overall investment bank. IBD o carry out capital raising , investment management services, securities and wealth managementPrivate Wealth ManagementPrivate wealth management is an investment practice that involves financial planning, tax management, asset protection and other financial services for high net worth individuals or accredited investors. Private wealth managers create a close working relationship with wealthy clients to help build a portfolio that achieves the clients financial goals. services to individuals, corporationsCorporationA corporation is a legal entity created by individuals, stockholders, or shareholders, with the purpose of operating for profit. Corporations are allowed to enter into contracts, sue and be sued, own assets, remit federal and state taxes, and borrow money from financial institutions., financial institutions, and governments.
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How Would You Describe The Firms Culture
If there is one word that would best describe the culture here, it would be collaborative. The firm acknowledges and rewards the people and teams that work together, those who use the full capabilities of the entire firm to find the right solutions for clients. We believe in winning with teamwork, excellence and integritythose are Morgan Stanley trademarks. And collaboration is a quality that is introduced to everyone from day one.
Morgan Stanley Salary Faqs
The average salary for an Investment Banking Associate is $137,194 per year in United States, which is 30% lower than the average Morgan Stanley salary of $196,012 per year for this job.
The salary trajectory of an Investment Banking Associate ranges between locations and employers. The salary starts at $143,652 per year and goes up to $149,672 per year for the highest level of seniority.
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What Has Been The Most Fulfilling Part Of Your Work At Morgan Stanley
When I worked in Global Capital Markets, I was afforded a lot of responsibility and opportunities to cover my own clients, which led to new deals. I worked hand in hand with my Managing Director to win new business. That was extremely rewarding.
Another rewarding part of my time at Morgan Stanley has been my involvement in a couple of headline deals as an Investment Banker.
Real Estate Securitization And Financing Business
We engage in a broad range of services related to real estate securitization, including securitization of real estate, formation of private equity funds, and the formation and underwriting of REITs . We also offer advice on raising capital through utilizing real estate to both listed and unlisted companies in a wide range of industries.
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Expanding The Pool Of Talent
The new Morgan Stanley Experienced Professionals Program is designed to recruit diverse professionals with two or more years of post-graduate or work experience for full-time positions, starting out in two key groups: Fixed Income and Bank Resource Management.
We will train you, says Melvin. Whether youre in the consultant, legal, pharmaceutical, engineering or insurance business, or in the military and about to transition to civilian life, we just want motivated, smart, analytical professionals who want to learn this business and excel.
That training promises to be intense. It starts with one month of what Melvin calls financial 101 bootcamp, then moves into two 10-week rotations within Fixed Income and Bank Resource Management. After that, participants will join a team in either department full-time.
The program requires a two-year commitment, but, the goal is to get Black professionals who are going to spend the rest of their careers at Morgan Stanley, says Mariel Jenkins, a Vice President in Fixed Income who helped launch the program.
What Advice Have Mentors At The Firm Given You
I’ve gotten a lot of recent advice to speak up morethat my opinion matters. As a Vice President, you’re still pretty junior in the grand scheme of things. You’re working alongside very senior bankers with decades of experience, and you tend to defer to their expertise. But lately, I’m being told that my opinion is valued. It’s a safe place where I can inject my voice, and I think that speaks to the culture of the firm.
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What Accomplishment Are You Most Proud Of
A few years ago, I worked on a private placement deal for an international company that was selling its solar power generation assets. It was the first time my team had ever worked on a private placement deal, which is a transaction that is completed outside of the public markets. The deal involved four different teams from the Investment Banking Division, and on the client side, there were people working on the project in both Japan and abroad. It was challenging to coordinate, but the result was a successful deal that we could all take pride in having helped to make happen.