Investment Banks in North America Education and Training

Learning the ins and outs of investment banking in America and in Canada

Investment banks in America, as well as investment banks in Canada, are in the business of issuing and selling capital market securities (i.e. equity and bonds) as a service to companies as well as to governments. A majority of investment banks also make money by offering strategic advisory services for acquisitions, divestiture, mergers or other financial services for their clients like trading of commodity, equity, foreign exchange, derivatives, and fixed income securities.

All investment banks in North America operate alike in that they are able to accept deposits like a commercial bank and trade securities. Canadian investment banks and other G-7 investment banks have always been allowed to engage in commercial banking and investment banking, unlike investment banks in the U.S.A. American investment banks were prohibited from providing commercial banking services until after the late 1980s. Use the following as a guide to get investment banks in North America education and training

1. Understand the capital structure of the American investment bank.

2. Become familiar with the major types of investment bank transactions.

3. Absorb the common methods of valuation performed by U.S. investment banks

 

Learn how an american investment bank finances assets through capital structuring

Capital structure is the way in which a corporation finances its assets. This is invariably some combination of hybrid securities, debt and equity. To maximize your company's options, become familiar with the various financing methods available and typically used.
Try: Matt H Evans shows you how to perform capital structure analysis using EBIT-EPS factors. The eLearning Center offers a course on capital structure that teaches you how to optimize the debt/equity mix for a given company.

Discover how to build capital through investment bank transactions

The major categories of transactions North American investment banks engage in include equity offerings, mergers and acquisitions and leveraging. Each of these categories breaks out into specific types too numerous to list here. Following are places where you can get educated on the variety of common transaction types for investment banks.
Try: The Investment Banking Institute (IBI) offers merger acquisition modeling and distressed security models training and leveraged recapitalization training. TRC Interactive has interactive transaction training that financial institutions can purchase and use to train their staffs.

Develop investment bank skills in valuating assets, businesses and liabilities

Investment banking in America frequently involves the performing of the valuation of a financial liability or a financial asset. This is true for any investment bank in Canada or other G-7 country. Valuations are implemented on assets, on businesses,or on liabilities like bonds that are issued by a company. They are performed for numerous reasons, from investment analysis to capital budgeting and from financial reporting to merger and acquisition transactions. Litigations and tax liability analysis are two additional reasons worth mentioning.
Try: Wall Street Prep provides a course called Trading Comps Modeling that teaches all about valuation for investment bankers. Annabelle Joule offers a four-week course in investment banking. One section of the course is dedicated to valuating a company.

 

• Job searching can be a challenge in any field, let alone a competitive field like investment banking. To get a job with an investment bank in the U.S.A., with its great salaries and popular locations, is highly competitive. You must get a degree in finance or a related business discipline.

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