Research teams in investment banks employ industry experts to provide valuable insights on the markets.
The equity research (ER) division within an investment bank plays a vital role in providing investors with comprehensive reports and recommendations regarding specific investments.
These recommendations typically include guidance on whether to buy, hold, or sell these investments.
Equity research serves as a key component in supporting the revenue generation of the investment banking and sales & trading divisions by delivering timely and high-quality information and analysis to clients.
Entry-level employees hold the title of associates, whereas the analyst role is considered a senior position. Similar to the coverage groups in IBD, associates and analysts within equity research are typically organized into industry coverage groups. These groups focus on providing research and analysis for companies operating within the same industry, allowing for specialized expertise.
Working hours often range from 60 to 80 hours per week, with a notable increase in activity during earnings season when companies release their financial results.
In terms of recruiting, interviews seek individuals with a talent for financial modeling, and a deep understanding of evolving market trends. Best Practices for Equity Research Analysts by James J. Valentine is like the Rosenbaum of ER.
Some candidates may find value in reviewing resources like the "Warren Buffet" questions in the BIWS 400Q Guide to prepare for these interviews.
Beyond the traditional ER role, there also exists a variety of other topics sell side analysts will publish works on.