Overview of the Investment Banking Industry

Overview of the Investment Banking Industry

www.JobSearchDigest.com

© Copyrighted Material – All Rights Reserved

Commercial Banks


• Provide deposit and loan services through branch networks and ATMs

• Accept deposits and lend the fund to other • Earn income from the margin of higher

creditors rate than depositors• Lend through credit cards• Offer safe deposit• Notary services• Merchant banking services

Photo: photobucket/jobsearchdigest

Investment Banks


• Work with:– Bigger organizations– Institutional investors– High net worth individuals

• Advise clients on investment issues• Help clients raise funds through the

debt or equity routes• Sometimes act as principals; represent

clients in other transactions

Investment Banks


• Provide a wide range of services:– Underwriting– Trading in securities– Financial advisory services related to restructuring,

mergers, acquisitions or divestitures– Trading of derivatives, fixed income, foreign

exchange, commodities, and equity securities• Mostly located in or around Wall Street• Revenue sources: fees or commission

earned through the placement of equity and debt

Investment vs. Commercial Bank


• The line between the two is slowly disappearing

• Citibank, Deutsche Bank and BNP Paribas, operate both commercial and investment banking services

Photo: photobucket/jobsearchdigest

Intermediaries Role


• Investment Bankers act as Intermediaries in Financial and Capital Markets– Raise and supply capital to corporation – Provides advisory – Provides asset management services– Act as intermediaries between the firms raising funds

and investors– Help in the issuance of equity and bonds– Arrange debt for clients– Often purchase debt and equities their own

Underwriters Role


• Provide advisory services– Asset management– Market research and analysis– Facilitating mergers and acquisition (M&A) deals

• Investment banker’s revenues– Fees related to M&A deals and related transactions– Sale and purchase of securities and other financial

instruments

Top Investment Banks


All trademarks used in this presentation are property of their respective owners.

Structure of an Investment Bank


• Categories or divisions depend on: – The services being offered– The clients being catered to

• Corporate finance department – Caters to the funding requirements of a

company– Study what the client needs– Arrange funds through equity or debt routes



• Capital markets trading and investment department– Responsible for all investments into the securities

markets– Through underwriting or direct trading in the stock

markets• Research departments

– Analyze the latest economic and industry situations– Provide research for enabling informed decisions– Carry out risk, financial and economic analysis



• Institutional sales and trading division– Maintains relationships with institutional

investors:• Mutual funds• Investment advisory firms• Banks• Pension funds• Insurance companies• Other money management firms

For More Information Visit…

www.JobSearchDigest.com


Overview of the Investment Banking Industry

Career

Transcript of Overview of the Investment Banking Industry