Money market analysts collect and scrutinize data to give an interpretation of the market to help companies make proper and informed business decisions. Some of them also analyze financial market trends so that they can help in making investment-based decisions while many others analyze financial statements of a company or the performance of a sector to help pinpoint investment potential.
One of the roles of money market analysts involves the analysis of investments and their performances in the market. They rely heavily on financial analysis, market analysis, and forecasting to determine the value or the investment opportunities of various companies. This detailed process commonly includes the analysis of a company’s profitability, earnings, revenue, outstanding debt, and sales.
Money market analysts primarily use statistical models and financial ratios to interpret data in order to help in comparing a company’s data to that of others in a specific industry. This job role also heavily depends on the use of accounting and thoroughly interpreting and reviewing the financial statements like balance sheets and income statements of a company.
Skills required to be a money market analyst
A money market analyst is required to be proficient with Microsoft Excel and have familiarity with data management/data queries tools such as SQL, Access, and Business Objects. Money market analysts are integral to companies as they are responsible for the collection and analysis of data.
They are always required to have a proper understanding of how a market runs. A money market analyst should also understand the principles of the economy and have the ability to create reports of deductions and recommendations. They are more like experts in charge of running the show behind the scenes.
Money market analyst job description
A money market analyst is crucial to any start-up or large company. Here are the roles a money market analyst is expected to fulfill:
- Carry out financial forecasting, operational metrics tracking, and reporting
- Analyze financial data (like past results) to make financial models support decisions, identify trends, perform variance and recommend suggestions for further improvement
- Report financial performance and prepare for leadership reviews daily
- Collaborate with the accounting team of a company to make sure the financial reporting is accurate
- Evaluate financial performance through the analysis and comparison of actual results with forecasts and plans
- Guide through the process of cost analysis by creating and enforcing procedures and policies
- Provide the analysis of forecasts and trends and further recommend the necessary actions for optimization
- Identify and drive improvements for processes, including the establishment of ad-hoc and standard tools, reports, and Excel dashboards
- Help increase productivity through the development of automated forecasting/reporting tools
- Fulfill the roles of data mining, market research, valuation comps, and business intelligence
Money market analysts are often given the responsibility of tracking a company’s financial plan. They are responsible for the analysis of the performance of any company and also keep a track of and evaluate the market changes and the change in trends. They are not only responsible for creating forecasts, but also to calculate the variance between the said forecasts and actuals.
All in all, the job of a money market analyst can be a handful and requires a good grasp of knowledge and skills. It is a job role that is in high demand and if you are planning to pursue your career in this sector, then you can go for a reputable investment banker course to have a better understanding of financial planning and analysis.