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CHAPTER 3 : INTERNATIONAL INVESTMENT BANKING (TOP 10 BANK (JP Morgan &…
CHAPTER 3 : INTERNATIONAL INVESTMENT BANKING
INTRODUCTION
banking activities whose functions involved provision of long term equity & loan finance for industrial & other corporations, particularly new securities
specialize in helping businesses & governments sell their new security issues in primary markets to finance capital expenditures
FEATURES
they manage to buying and selling of stocks, bonds & other financial instruments for their own portfolio & on behalf of clients
securitization of assets to sell in secondary market
bringing initial public offering to the market
FUNCTIONS
REVENUE GENERATING ACTIVITIES
primary market making, secondary market making, consultant , corporate, restructuring
assist with corporate reorganizations & advising on strategic matters such as M&A, divestitures, corporate defense strategies
assist public & private corporations in raising funds in the primary capital markets
SUPPORT SERVICES
involve clearing, internal finance & information services
primarily serve as intermediaries between corporation/government that want to attract investment capital & investors wanting to invest capital
also act as intermediaries in trading for clients
OPERATION SYSTEM
front office
2 mains areas - investment banks and markets
on average - the most prestigious & highest paid department in that particular bank
in the market - they helps customers to raise funds in the capital market, identify potential partners
middle office
relates to risk management issues
focuses on identifying & managing the level of risk that the company assumes in order to do business
functions
risk management
corporate treasury
financial control
compliance
back office
operations department
information technology
types of facilities
underwriting new issues
trading securization & risk arbitrage
new product development
providing advice
TOP 10 BANK
JP Morgan & co
Bank of America Merill Lynch
Goldman Sachs
Morgan Stanley
Citigroup
Deutshce Bank
Credit Suisse
Barclaus
Wells Fargo
UBS