Investment banking is a specific sector of the financial industry designed to help organizations raise capital for their businesses. The industry also supports companies by providing various financial services including proprietary trading, mergers, and acquisitions.
Today, governments, companies, and businesses all actively use investment banking and the bankers that service it to assist in offering strategic advice on how to utilize their funds. To get a better understanding of the investment banking industry, here are three great reads that can give you a more in-depth look at the industry and how it's developed over the last several years.
1. "The Accidental Investment Banker: Inside the Decade that Transformed Wall Street"
Written By: Jonathan A. Knee
"The Accidental Investment Banker" is a fresh, candid look at the investment banking industry as it transitioned into the 21st century. Told from the perspective of Jonathan Knee, a hired associate with Goldman Sachs and Morgan Stanley, the book takes a fascinating glimpse into the transformation of the banking industry and the culture of investment bankers over the last few decades. In the late nineties, power players and backstabbers dominated the industry with an anything-goes mentality. Fortunes were made in an instance and reputations were lost just as quickly. By the turn of the century, however, the industry was in free fall, ready to implode, which it inevitably did. The book chronicles the changing attitudes in investment banking from having the highest standards in client service to an era of distrust and lack of loyalty. Humourous and honest, Knee shares opinions on what he's learned in the industry and how impactful a trusted banker can be for companies and their CEOs.
2. "Young Money: Inside the Hidden World of Wall Street's Post-Crash Recruits"
Written By: Kevin Roose
From million-dollar trades to devastating losses, Kevin Roose's tell-all story of the hidden world of Wall Street and what it was like to be recruited by some of the largest financial giants. "Young Money" exposes the ugly side of investment banking that occurred primarily before the major financial crises of 2008 and in the eyes of young, up-and-coming industry graduates. Likened to the "Cubs of Wallstreet," these ambitious go-getters find out quickly how the off-balance and insecure the world of investment banking can be. The book highlights the tough choices young bankers needed to make after the financial collapse and how Wall Street and the principles and morals of investment banking has changed forever.
3. "Investment Banking Explained: An Insiders Guide to the Industry"
Written By: Michel Fleuriet
"Investing Banking Explained" is a detailed look into the modern era of the complex industry of investment banking. Written by a Wharton professor and global financier, the book offers a comprehensive guide for anyone who needs more information on the key terms, structures, and strategies of investment banking. Today, nearly every business venture requires the services of an investment bank, and "Investing Banking Explained" gives business leaders the information and practical advice they need to make better-informed decisions when navigating through this dynamic sector of the finance industry.
The history of investment banking has transformed over the years. Following the 2008 financial crisis, the industry was shaken to its core, and in many cases, this was for the better. These publications should prove to be great reads for any business professionals looking to learn more about investment banking and how it plays a critical role is helping businesses scale efficiently.