The World is Running Out of Investment Bankers - How Money Works #Shorts

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Investment banking salaries for junior level positions, analysts and associate, are skyrocketing. At the biggest investment banks and elite M&A shops, first year Analysts are now taking home base salaries of over $120K, up from $85K just one year ago. And some first year associates are taking home 200K base salaries, up from $150K.

But what explains this? ….Well, a few forces acting together

First, mergers & acquisitions deal activity is at an all time high. This is because business owners looking to sell are looking to do so before year end. Why? Well, the white house has proposed increasing the long term capital gains tax, so they want to sell before that becomes law

Another force is low interest rates and a lot of uninvested capital. This is driving company valuations to an all-time high, giving investment banks more money as they are awarded for how much they sell a company for.

This has caused large turnovers in investment banking, with larger firms raising salaries in order to attract talent to service their increased deal activity. So, other firms have to follow in order to retain their talent.


#Shorts
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