Realistically, what kind of work is a new analyst most likely to do during the first year in investment banking?

Introduction / Context:
Many candidates have a glamorous or unrealistic view of what investment bankers do, especially in their first year. Interviewers often ask what you expect to be doing as a new analyst to see whether your expectations match reality. This question checks whether you understand that first year work is intensive, detail oriented, and heavily focused on analysis and support rather than leading deals.

Given Data / Assumptions:

• The role is an entry level analyst position in an investment bank.
• Analysts report to associates and vice presidents and are part of deal teams.
• Major tasks include modelling, research, preparing presentations, and supporting transaction execution.
• New analysts do not immediately take on full responsibility for negotiating and signing deals.

Concept / Approach:
A realistic description of first year analyst work includes building and maintaining financial models, performing valuation analyses, preparing pitch books and information memoranda, supporting due diligence by collecting and analysing data, and handling many detail heavy tasks under tight deadlines. Client meetings and high level negotiations are primarily led by senior bankers. Analysts contribute by providing accurate analysis and materials that support those discussions.

Step-by-Step Solution:
Step 1: Recall that investment banking is analysis intensive and that junior staff do much of the groundwork. Step 2: Identify core analyst responsibilities: financial modelling, valuation, research, and preparation of presentations and documents. Step 3: Understand that negotiating directly with regulators and signing transaction documents is the responsibility of senior bankers and legal counsel, not first year analysts. Step 4: Recognise that part time casual work with minimal deadlines does not match the demanding nature of investment banking. Step 5: Exclude options describing cleaning or security tasks, which are not related to professional analyst duties, and select the option describing analytical and documentation work.

Verification / Alternative check:
Look at first hand accounts or official job descriptions for investment banking analyst roles. They consistently mention building discounted cash flow models, comparable company analyses, merger models, and supporting the creation of pitch materials. They also describe participating in due diligence and preparing data rooms. None of these descriptions suggest that new analysts immediately lead negotiations or perform casual part time work. This supports the choice of the option focusing on modelling and pitch book preparation.

Why Other Options Are Wrong:
Option B is unrealistic because regulators and counterparties expect experienced senior bankers and lawyers to lead negotiations and sign deals; a first year analyst does not have that authority or experience. Option C contradicts the well known reality that investment banking involves long hours and high intensity work, especially for analysts. Option D describes facilities management tasks unrelated to professional investment banking responsibilities.

Common Pitfalls:
Some candidates romanticise investment banking and imagine themselves closing huge deals on day one. Others underestimate the level of detail and Excel work involved. Misaligned expectations can signal to interviewers that the candidate may be disappointed or unprepared for the actual workload. Understanding that the first year is heavily focused on technical, analytical, and support work is crucial for a realistic and credible answer.

Final Answer:
A first year investment banking analyst will most likely spend their time building financial models and valuation analyses in Excel, preparing pitch books and presentation materials, supporting due diligence, and handling detailed research and documentation.