Investment Bankers' Computers: What Makes Them Tick?

Investment bankers require powerful computers to run software such as Excel, Word, PowerPoint, and Bloomberg Terminal. These tools are essential for financial modelling, research, data analysis, and presenting information. As such, investment bankers often use multiple computer screens, with some opting for three or four. When it comes to specific devices, Lenovo ThinkPads are a popular choice, with some bankers also using Microsoft Surface Laptops.

Microsoft Excel for financial modelling and calculations

Investment bankers use Microsoft Excel for financial modelling and calculations. It is a spreadsheet application that enables users to format, organise, and calculate data. Excel is used for running technical calculations, producing accounting ratios, running capital budgeting analyses, and calculating risk analysis or discount cash flows.

Financial modelling in Excel involves combining historical and projected financial information to forecast a company's future financial performance. This forecast is based on the company's historical performance and assumptions about the future, and typically involves preparing an income statement, balance sheet, and cash flow statement.

Excel is commonly used in investment banking, and learning its basic functions is considered a rite of passage for those interested in finance. Bankers use Excel for a variety of purposes, including financial analysis, which can be done in two main ways. The first focuses on data retrieved from a company's financial statements, while the second focuses on charting, probabilities, and technical analysis.

Excel is also used for creating valuation models, such as discounted cash flow analysis (DCF), leveraged buyout (LBO), and mergers and acquisitions (M&A) models. These models can help in decision-making regarding raising capital, making acquisitions, growing the business organically, and more.

Additionally, Excel integrates well with other software and virtual data rooms, making it a versatile tool for investment bankers. It is available on the cloud, allowing access from any device and location.

Bloomberg terminal for data collection and analytics

Investment bankers have access to a wide range of tools and software to assist them in their work. One of the most widely used sources for real-time financial information is the Bloomberg Terminal.

The Bloomberg Terminal has been an indispensable data and information system for financial professionals since 1982. It revolutionized the industry by bringing transparency to financial markets and continues to be at the forefront of innovation and information delivery.

The Terminal provides comprehensive coverage of markets, industries, companies, and securities across all asset classes. It offers fast access to news, data, unique insights, and trading tools, empowering leading decision-makers to act on knowledge quickly.

Data and Analytics

The Terminal provides access to powerful data, including proprietary and third-party research and analytics. This enables users to tap into a vast array of information, such as interactive data, exclusive outlooks by industry and region, and economic forecasts and releases.

Collaboration and Communication

Bloomberg Terminal also facilitates industry-leading collaboration. It enables users to connect and communicate with a global network of over 350,000 influential decision-makers. The platform offers instant messaging capabilities, allowing users to stay in contact with colleagues, clients, and counterparts seamlessly.

Customization and Flexibility

Users can customize their workspace to make fast, informed decisions. The Bloomberg Launchpad offers dynamic multi-asset class security monitors, advanced alerting tools, sophisticated charting, and market-moving news. The platform is accessible on mobile devices, providing users with remote access to their Bloomberg Terminal account.

User-Friendly Navigation

The Bloomberg Terminal utilizes a special keyboard with function keys that differ from a standard keyboard. The function keys are color-coded, making navigation more intuitive. For example, the top function keys are mostly color-coded yellow and allow users to navigate by asset class, including government bonds, equities, currencies, and more.

Robust Messaging System

The Bloomberg Terminal includes a robust messaging system, allowing users to stay connected with colleagues and clients. It enables traditional messaging, similar to email, and instant messaging for quick communication. The system also supports speed dial for frequently contacted individuals.

Training and Support

Bloomberg provides comprehensive training and support for its users. The "Bloomberg Terminal Essentials" program offers quick videos and tutorials on essential Terminal functionality, helping new users navigate the platform confidently. Bloomberg also offers customer support via phone and in-person visits for installation and technical assistance.

Cost

The Bloomberg Terminal is a premium service, costing approximately $25,000 per year. While it is an expensive system, it is a powerful tool for financial professionals, providing access to high-quality data, analytics, and collaboration opportunities.

Microsoft Word for documentation

Investment bankers use a variety of tools and software to conduct their operations. One of the most important tools they use is Microsoft Word, a word processor designed by Microsoft that allows for the creation and download of both simple and complex documents.

Microsoft Word is an essential platform for documentation in the field of investment banking. It is used by investment bankers for various purposes, such as creating reports, typing out complete documents, and formatting and proofreading documents before sending them to investors. The ability to produce high-quality and professional documents is crucial in the investment banking industry, as it involves dealing with clients, investors, and companies.

Investment bankers often have to create reports and documents that are sent to clients and investors. These documents may include financial updates, investment proposals, research findings, and market analysis. Microsoft Word enables bankers to format their documents professionally, ensuring that the information is presented clearly and effectively. This is especially important when dealing with complex financial data, as it needs to be communicated in a way that is easy for clients to understand.

In addition to its basic word processing functions, Microsoft Word also offers advanced features that can be beneficial for investment bankers. For example, the ability to track changes and add comments allows for effective collaboration and review of documents. This is particularly useful when multiple bankers are working on the same document or when documents need to be reviewed and approved by supervisors.

Moreover, Microsoft Word's compatibility with other applications and virtual data rooms is advantageous for investment bankers. It integrates well with other Microsoft tools, such as Excel and PowerPoint, which are commonly used in the industry. This integration allows bankers to easily insert charts, graphs, and other data from Excel or PowerPoint directly into their Word documents, creating more dynamic and informative reports.

Overall, Microsoft Word plays a crucial role in the documentation aspect of investment banking. Its versatility, ease of use, and compatibility with other applications make it a go-to choice for investment bankers when creating, editing, and formatting documents. By utilising Microsoft Word effectively, investment bankers can ensure that their documentation is accurate, professional, and well-presented, ultimately enhancing their communication with clients and investors.

Adobe Acrobat for editing and signing documents

Investment bankers need to work with a lot of documents, and Adobe Acrobat is a useful software tool that allows for the creation, editing, and reviewing of PDFs, as well as the electronic filling and signing of documents. Adobe Acrobat is an essential tool for investment bankers as it expedites the deal process by eliminating the time taken to mail or meet in person to sign documents.

Adobe Acrobat allows users to create, edit, and review PDFs. Users can convert web pages to PDFs, create PDFs with Acrobat Distiller, and edit images or objects within a PDF. It also offers the ability to rotate, move, delete, and renumber pages, as well as enhance document photos. Acrobat provides a range of tools for working with PDFs, including links and attachments, page thumbnails and bookmarks, and presentation settings.

One of the most valuable features of Adobe Acrobat for investment bankers is the ability to fill and sign PDFs electronically. Users can type, draw, or insert an image of their handwritten signature. The software also allows for the addition of text, such as names, company information, titles, or dates. These signatures and text become a permanent part of the PDF when the document is saved.

Adobe Acrobat also integrates with mobile devices, enabling users to capture their signature using a mobile app and sync it across all their devices. This feature ensures that users can sign documents remotely and efficiently. Additionally, Adobe Acrobat complies with global security, compliance, and legal requirements, providing a secure platform for sensitive information.

Adobe Acrobat's ability to facilitate electronic signatures and document editing streamlines the deal process for investment bankers, making it a valuable tool in the competitive world of investment banking.

Slack for instant messaging and communication

Investment bankers often need to communicate with investors, and collaboration tools can facilitate this communication and make it more efficient. Slack is an instant messaging app for businesses that connects people on one team and is accessible from any device. It is a cloud-based collaboration software suite with functionalities focused on business administration and communication. It offers direct-messaging capabilities, alerts, notifications, data sharing, group chatting, and direct search.

Slack allows communities, groups, or teams to join a "workspace" via a specific URL or invitation sent by a team admin or owner. A workspace can contain both public and private channels, with public channels being accessible to all members of the workspace. Channels are like 'rooms' for communicating with relevant team members. Each workspace starts with two default channels: #general and #random. There are three types of channels: Public Channel, Private Channel, and Shared Channel (beta).

Users can send direct messages to one person or start a group message with up to eight or nine other members. Slack supports text-based communication, as well as voice and video calls. Within a voice call, users can mute or unmute themselves, share their screens, draw on a shared screen, and invite others to the call.

Slack offers a variety of integrations with third-party services, including Google Drive, Trello, Dropbox, Box, Heroku, IBM Bluemix, Crashlytics, GitHub, Runscope, Zendesk, and Zapier. It also provides an application programming interface (API) that enables users to develop applications and automate various processes.

Slack has a robust search function that allows users to find key information quickly. Users can also use notifications to focus on their highest priorities. Slack's pricing plans include Free, Standard ($6.67/month), and Plus ($12.50/month).

Overall, Slack is a powerful tool for instant messaging and communication, offering a range of features that enable efficient collaboration and information sharing for investment bankers and other professionals.

Frequently asked questions