Analyst in finance can play multiple roles depending on the industry one is in and company ne is associated with. Lets have a close look at what a financial analyst can be involved in.
Equity Research Analyst - Aka sell-side/buy-side researchers are involvled in searching and aggregating data and building different financial models to being the clients 'thought partner' in writing in-depth reports and generating ideas for other analysts sometime working at back office. Sell-side analyst work with client focusing on specific sectors or companies of the economy. They prepare ready-to-publish reports by implementing their strategy research capabilities such as building and maintaining highly analytical databases, building and maintaining financial models, preparing earnings review or preview notes, initiating coverage and generating thematic research ideas. Similarly researchers working with buy-side clients offer comprehensive range of service, from front- and middle-office work like portfolio optimization, research and analysis, etc. to back-office support like portfolio accounting and data maintenance.
Derivative Analyst - Derivates are the class of securities which are derived from other baisc offerings like equity, bonds, currency, commodities etc. A deep knowledge of various derivative classes including equity, credit, commodities, interest rate, and foreign exchange products is necessary for any derivative analyst. Beginning with the calculation of coupons for options, measure the volatility of different portfolios, and drafting reports, an analyst can move to derivate product controller role getting involved in valuation models supporting clients' product control desks, structuring trade reviews, reconciliations, attribution analysis, independent price testing, and fair value measurement.
Commodity Research Analyst - Commodities markets research is a recently launched concept atleast in India. Starting from the price discovery using various quantitative models, an analyst here will be involved in index maintenance, validation, rebalancing, back-testing, performance & volatility analyses, fundamental analysis using long-term supply-and-demand models and finally regular updates & continuous news flow preparations.
Currency Research Analyst - Currency research is based on the economic analysis and highly volatile FX markets. This type of job role majorily includes quantitative models for FX forecasting; back-testing and new product development, analytical frameworks and trend analysis, and marketing presentations and publications. There may be traders who may be offering trade book migration, middle-office support for interest rate derivatives & structured trade reviews of exotic fixed-income derivatives trades.
Risk Manager - Risk assessment, quantification, monitoring and reporting is what comprise the dailt activities in the portfolio of a risk manager. The development of tools/frameworks based on Basel II guidelines, stress testing, and risk monitoring and reporting using various quantitative methodologies such as Monte Carlo simulation, extreme value theory, multi-factor regression analysis, and GARCH models is what describe their job. They can also be aligned to support risk management departments by stress-testing their proprietary models, conducting performance attribution testing of their portfolios, carrying out secondary research on the macroeconomic climate, and regularly monitoring various risk metrics.Associates here will also be conducting performance attribution test on company's and client's portfolio. Further these people will be involved in continuously monitoring various risk metrics and indicators, and report them to risk managers, desk heads and top management.
Credit Research Analyst - Another interesting job role on which most of the industry depend because the rating provided by this segment to different types of securities and company issues will help in determining the demand/supply and price in the market. They may need to work with other financial institutions such as banks, thrifts, asset management firms, private equity firms, and insurance companies.
Associate for Corporate governence and support - Associates working in this area may be working in evaluating industry trends & their competitive implications, assessing the feasibility of entering into new business/market/segment, identifying new acquisition targets, watching out for profitable growth opportunities, tracking competitors, developing segmentation/pricing strategies, assisting in cash management and finally financial planning and risk management. Preparing strategies, supporting or carrying out M&A activities, treasury services to optimize their working capital cycle can be a part of their job area.
Apart from these, anybody in analyst role may be working for private wealth management, where portfolio management and risk assessmets is the core part, retail brokerage research, restructuring and project financing.
If you need more details on any of the area, drop in a comment below with you mail id. I will revert with in 24 hours.
Credit Research Analyst - Another interesting job role on which most of the industry depend because the rating provided by this segment to different types of securities and company issues will help in determining the demand/supply and price in the market. They may need to work with other financial institutions such as banks, thrifts, asset management firms, private equity firms, and insurance companies.
Associate for Corporate governence and support - Associates working in this area may be working in evaluating industry trends & their competitive implications, assessing the feasibility of entering into new business/market/segment, identifying new acquisition targets, watching out for profitable growth opportunities, tracking competitors, developing segmentation/pricing strategies, assisting in cash management and finally financial planning and risk management. Preparing strategies, supporting or carrying out M&A activities, treasury services to optimize their working capital cycle can be a part of their job area.
Apart from these, anybody in analyst role may be working for private wealth management, where portfolio management and risk assessmets is the core part, retail brokerage research, restructuring and project financing.
If you need more details on any of the area, drop in a comment below with you mail id. I will revert with in 24 hours.
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