10 Facts About Financial analysts

Financial analysts are employed by mutual- and pension funds, hedge funds, securities firms, banks, investment banks, insurance companies, and other businesses, helping these companies or their clients make investment decisions.

In corporate roles, financial analysts perform budget, revenue and cost modelling and analytics as part of their responsibilities;credit analysis is likewise a distinct area.

The research Financial analysts' department is therefore sometimes part of the marketing department of an investment bank, brokerage, or investment advisory firm.

An additional component of the IB role here: Financial analysts ensure that all forms and written materials necessary for compliance with Securities and Exchange Commission regulations are accurate and complete.

Ratings Financial analysts, evaluate the ability of companies or governments that issue bonds to repay their debt.

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Financial analysts employed in commercial lending perform balance sheet analysis, examining the borrower's audited financial statements and corollary data in order to similarly assess lending risks, and to confirm that yield is appropriate given risk; this task is both upfront and on a monitoring basis thereafter.

In retail banking, credit Financial analysts build models to determine an applicant's creditworthiness, assign an initial credit score, and monitor this and the loan on the basis of an ongoing "behavioral" score.

Some financial analysts specialize as "accounting analysts"; they will collect industry data, merger and acquisition history and financial news for their clients.

In securities and IB roles, it is lately preferred that, similarly, even to enter, Financial analysts earn a master's or the CFA designation – in Europe, the CIIA – with the MBA still common at senior levels.

Banks often recruit Financial analysts with accounting qualifications to the middle office roles.