A financial analyst is someone, with knowledge in financial markets and statistics that assists companies and governments in making informed business decisions. He makes use of mathematical and statistical methods to arrive at conclusions about the financial situation. Financial analysts are important people for financial institutions because they have the expertise to analyze financial reports and come up with strategies on how to improve it.
Financial analysts have several sub-specialties. Some of these include financial report analysis, portfolio theory and forecasting, international macroeconomic and credit default swap valuation, and financial volatility. The main objective of these analysts is to provide analysis and warnings to management on the state of the economy, as well as provide recommendations on market strategies for the growth of the company. An entry-level analyst would normally work for a bank or a financial firm, with more experience expected as the professional gets more experienced.
Variable Rate Mortgages are one of the main areas of study of financial analysts. These professionals are expected to have strong mathematical skills to calculate loan balances and risk portfolios, and to develop and maintain long-term financial models. Other areas of expertise of these analysts include financial modeling, fixed income valuation, insurance and risk management, and alternative investment. In addition, analysts can also work as financial analysts, having additional responsibilities such as underwriting insurance policies. Their job description requires them to be experts in finance, statistics, and other related fields.
In order to obtain a job as an analyst, one must have strong mathematical abilities, analytical skills, and programming aptitude. A person who is considered as having excellent mathematical skills and computer programming skills can perform calculations over the computer much faster than someone without this skill. To become an entry-level financial analyst, it is advisable to get some college courses in accounting, economics, and other related subjects. Some banks offer an early training program that will help these young analysts prepare for their jobs as financial managers. Usually, these training programs last only a few months and can be completed online.
If one wishes to pursue a career in financial analysis, it is important to gain experience working in the field. One can acquire this experience by working as an analyst in a small or medium-sized firm for two years or more or by participating in a short internship program. A bank often sponsors short-term internships for young analysts to get experience. In addition, there are many government agencies and private organizations that provide such training and support for young analysts who wish to pursue careers in the financial industry. Upon graduation, most analysts find employment in banking, brokerage firms, and insurance companies.
Financial analysts are required to complete a master's degree program, in order to specialize in a particular area. This specialization often involves additional education and training. Most financial analysts find employment with large financial companies or investment banks. These jobs often require a lot of long hours and require the ability to crunch large numbers using mathematical techniques.