Investment banking is a fast-paced industry with its own unique terminology. As an aspiring banker, being familiar with key investment banking keywords can give you a leg up in interviews and help you better understand the business. This article provides an overview of 10 essential investment banking keywords with examples of how they are used in context.
Key financial modeling terms
Financial modeling is an integral skill for investment bankers. Common modeling keywords include DCF (discounted cash flow), LBO (leveraged buyout), comparables analysis, precedent transactions, trading comps, and sensitivity analysis.
Key sectors and products
Investment bankers should understand major banking sectors like M&A, ECM, DCM, leveraged finance, restructuring, etc. They should also know product areas like M&A, IPOs, follow-ons, convertibles, leveraged loans, bonds, etc.
Learning investment banking language and keywords provides a solid foundation for aspiring bankers. Focus on key terms for financial modeling, major sectors and products, deals and transactions, firm hierarchy, and technical skills.