Capital Markets Analyst Job Description

Master's Degree in Finance: An Essential Qualification for a Financial Analyst

If you have expertise in finance, the finance analyst position is an ideal one to use your skills and knowledge to help businesses and other clients succeed. A Master of Business Administration degree can help you get a job as a financial analyst, as well as help you find a good salary. Financial analysts play a vital role in the daily operations of an organization.

They use financial data to understand the business and market and see how an organization stacks up. They recommend actions for the company to take, like selling stock, based on the current economic conditions. An analyst must know how to find, collect and organize vast amounts of information relevant to their business and industry.

They use their research skills to review internal databases and reports from government agencies and enter them into a database. A senior financial analyst would be more active in building a financial model, forecasting trends and making business recommendations. They may have a master's degree in finance or have years of experience in the industry or with the company.

They lead a team of analysts and manage the process of getting reports ready for business leaders. Finding a job that suits your skills and interests is just as important as finding a working environment that fits your expectations during your professional career. A benefit of being a financial analyst is that you are sought after by various industries and employers.

You can expect to work in an office environment for most of the time. There is a correlation between experience and salary in many other positions. As a financial analyst, you can take a defined career path, and your salary can also change as your responsibilities change.

The Open Outcry System in Financial Markets

Capital markets are where savings and investments are made available to those in need. Suppliers include banks and investors while those who seek capital are businesses, governments and individuals. Capital markets are made up of suppliers and users.

Suppliers include households through savings accounts with banks, as well as institutions like pension and retirement funds, life insurance companies, charitable foundations, and non-financial companies that generate excess cash. Home and motor vehicle buyers, non-financial companies, and governments are some of the users of the funds distributed on capital markets. Capital markets are used to sell financial products.

Ownership shares in a company are called equities. Bonds are interest-bearing IOUs. The secondary market has two different types.

The open outcry system is a feature of the auction market where buyers and sellers congregate in one place to announce the prices at which they are willing to buy and sell their securities. The New York Stock Exchange is an example. People trade through electronic networks in dealer markets.

The Primary Market

Corporations, institutions, investment banks, and public accounting firms are the key players in the primary market. Corporations issue debt or equity to institutions in return for capital investment in order to expand grow their businesses. Investment banks are hired to match institutions with their investment style.

Public accounting firms are responsible for the preparation, review, and auditing of financial statements, tax work, consulting on accounting systems, M&A, and capital raising. Public accounting firms in the primary market help corporations raise capital and prepare, review, and audit financial statements to ensure a fair representation of their financial performance. The secondary market allows for the sale and trade of bonds and shares, unlike the primary market, where there is an initial issuance of debt.

The Treasury Team at Enova

The Treasury team at Enova is responsible for managing the company's funding and liquidity to ensure operational obligations are met. The Treasury team sets and implements the funding strategy for Enova, forecasts cash outflows and forecasts relationships with banks, investors, and payment processors. The team handles all debt reporting and compliance requirements when capital markets transactions are needed to achieve long term and short term debt funding goals. Treasury is responsible for managing relationships with the company's equity and debt investors, as well as rating agencies, to promote the firm's position in the market and support its long term financial success.

Senior Analysts in Capital Market

If you are analyst in the investment banking division, some firms will place junior analysts into a pool of analysts competing for the top jobs. Investment banks want analysts to be very detail oriented and they want them to spend a lot of time crunching numbers and modelling in excel for banks' pitch books and prospectuses for IPOs. Suen says that there is no "perfect recipe" to succeed in capital markets but a strong general sense of markets, sensitivity to the dynamic and ever changing environment as well as the willingness to acquire new knowledge and be engaged at all times contribute. Mervyn Chow, head of global markets solutions group, Asia Pacific at Credit Suisse, says that senior capital markets bankers need to have broad internal and external contacts, as well as strong Interpersonal skills, marketing capabilities and strong project management skills to balance interests of complex stakeholders.

Raising Equity Capital: What do you like?

Raising equity capital is the sale of a percentage of ownership in the company in exchange for cash, as opposed to raising debt, where the company maintains its ownership but must pay interest on the funds it raises. You need to show more interest in the markets, be able to discuss recent issues and trends, and how IPOs and follow-ons have done recently in your region of interest. If you are asked to respond to the question, you should say how you like both markets and deals, and that you want to work in equity capital markets.

An Overview of the Syndication Sector

Senior level executives spend more time on origination while the mid-level staff focuses on execution with the help of junior level analysts and associates. There might be a few people working on the part of the market that is called syndicating. Data handling and analytical skills are important.

You will need to have advanced skills with platforms like Microsoft Office and CapitalIQ, as well as a large amount of data, to work with it. As analyst, you will spend most of your time working on financial analysis and modelling tools and the better you are with them, the easier it will be for you and the faster you will be able to deliver results. Changes in the market are highly susceptible to timing.

When the markets turn south, companies shelf their equity placements. The ability to survive in a dynamic environment requires a deep understanding of the equity markets and an ability to deliver results in an adverse business environment. If you did an internship in equity capital markets or any related investment banking role, then you should take full advantage of it.

Even a small internship will help you steer the conversation towards something that you are familiar with and give you the chance to speak about it. There is nothing that is mandatory for certifications, but aCFA would be nice to have as it covers a lot of aspects of equity markets and derivatives. It is mostly about the recognition it provides.

A higher salary of around 150K plus a variable component is expected at the associate level. The fixed component is on par with M&A, but the variable component has some variation with M&A units paying larger bonuses to their analysts and associates. An associate of analyst dies by the deal.