2016/2017 Investment Banking threats & trends
Hey guys,
I thought it may be helpful to share on here what are the main trends and threats for the Investment Banking industry, since this is a very common question in both applications and interviews.
What I can say so far is that hot topics are:
- Declining role of FICC in overall revenue percentag of BBs
- Low IPO dealflow compared to previous years (at least in the EMEA region)
- Satisfying M&A activities considering easy cash access
- Huge uncertainty due to Brexit
- Increasing weight of compliance costs and IT, since regulations are getting more strict and technology infrastructure has become one strategic asset for banks, especially the BBs with Retail and/or Commercial Banking divisions as well.
Any more idea/insight to share?
Cheers
presidential elections impact on markets and ib (Originally Posted: 11/06/2016)
Was wondering how the election day will impact markets and investment banks for trump or clinton? will markets react differently to either if so how?
Yeah Dow futures alone jumped 220 points, after FBI said they weren't changing their initial outlook on the Clinton probe. Trump is often associated with an uncertain outlook, which the market despises. With the latter, the market can expect another 4 years of Obama (and they know how to operate). Trump has also proposed to rework trade deals and may strain foreign relations, which the market doesn't like either. I am not a Hillary sympathizer, I am only presenting the way in which the market has historically reacted. Expecting to take some hits for not praising Trump.
The above poster has the general idea about how the market views this election. But I wouldn't worry about it too much, because any outcome will be a surprise over the next four years. Just have to keep your head down and do your best no matter the circumstances.
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