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Investment
BankingIntroduction to IB and their Different Business Lines | Introduction to
the Financial System | Types of Financial Markets & Different Market
Participants & Regulatory Agencies | Introduction to Investment
Banks - Buy Side & Sell side of Business
Equity & Preference Shares- Features, Advantages and Disadvantages
| Depository Receipts - Types of ADR, Advantages of ADR and GDR,
Difference between ADR and GDR | Primary & Secondary Markets |
Issuance/Trading | IPO Process - US & Indian Markets | Stock
Exchanges & Financial Centre's of the World | Trade Economics for
Equity Markets
Fixed Income & Advantages of Fixed income products | Bonds and its
Characteristics, Types of Bonds | Relation Between Interest Rate and
Bond Price & Yield and Bond Price | Current Yield, YTM, Clean price,
Dirty Price, Accrued Interest | Process of Securitization -
MBS & ABS | Discussion on Credit Crisis
What is FX, Features of FX | Difference Between FX & Futures | Market
Participants | Types of Quotations | Type of FX Trade - Cash, Spot,
‘Tomm, NDF, Forward | Trade Economics of FX Transactions | FX
Future and Options
Derivatives - An Introduction | Difference between OTC & ET
Derivatives | Value of Derivatives | Forwards Contracts, Futures
Contract | Futures Price determination | Margins in Futures | Futures
Settlement | Futures Payoffs | Definition of Options | Types of
Options | Trade Economics of Options | Option Premiums | Types of
Option Payoffs | Options Pricing | Styles of Exercising OptionsIntroduction to IB and their Different Business Lines | Introduction to
the Financial System | Types of Financial Markets & Different Market
Participants & Regulatory Agencies | Introduction to Investment
Banks - Buy Side & Sell side of Businessg
g
“Banks”
Origin and meaning
“tn old age we can say any institution which is involved in money lending /money exchange is
a bank.”
‘With passage of time based on needs these functions evolved into more structured forms
with specialisation in various functions:-
OA sresitse_in serving big (YD) Specaise in serving small
Institutions like Government, businesses & individuals like you
Multinational giants etc.- and me- Commercial Banks
Investment BanksBasic functions of banks
Ralse Capital
Investment
Bank
Merger and
Give Loans Allied services
Acquisition Advisory a —| Classification of banks
[—~—~—ti‘“
Sua ue
! % ——_—_,
ek Te le CES Scheduled Banks Retessieeeelpac
I
(aSeE Tae WL:EMS
Middle Market Banks)
TS EY EET Pel E
heeBULGE In all major All types of
BRACKET "8° countries services More
REGIONAL ¢.ujog¢ —-«-aparticular —-Fewerservices Very few but best
BOUTIQUE region only ones
Pull range of
MIDDLE — Middle [pmonethan | servicesor Neither more nor
MARKET —above2 multinational. «= *Petializeint / Tess
more services
In many regions, Full range of
ELITE Parallel also specializesin _services or Few
BOUTIQUE Bracket some regions than _specializein1 / “
the others more services
TOP 10 INVESTMENT BANKS
OFFERING FOLLOWING SERVICES
Goldman Sachs: Investment- banking, |
lending, management; institutional client
services.
JP Morgan Chase: Treasury &
security, commercial banking, asset
management, private banking, Ete.
Citigroup: Capital market origination,
markets & secutities services, treasury, é
trade solutions & Citi private banking
services, Etc.
Bank of America Merrill
Lynch: Investment banking, mortgage,
trading, brokerage, Secards.
Morgan Stanley: Investment é&
wealth management, prime brokerage,
custodian, settlement é& clearing etc.
Barclays: investment banking, business
retail and commercial banking and card
processing.
Credit Suisse: Debt & equity
underwriting, M&A advisory, divestitures,
prime broking, Ete.
Wells Fargo: Community barking,
consumer lending, and wholesale banking;
and wealth management, brokerage, and
retirement.
Deutsche Bank: — Cross-border
Payments, international trade financing,
mortgage, card services, insurance, Etc.
UBS Group: Wealth é& global asset
management, retail é& corporate services,
investment banking, Etc.TYPES OF
INVESTMENT
BANKING SERVICES
INVESTMENT BANK isa special division of a bank or a financial institution that aids
large and complex financial transactions for companies, governments, and other entities.
Underwriting is a service through which investment banks
raise open market capital for corporations and governments.
An entity uses the underwriting service of an investment bank
when it wants to launch an initial public offering (IPO) in
primary market.
UNDERWRITING
Mergers, Acquisitions, Tender Offers, Leverage Buyouts,
MERGERS & Consolidations, etc. There are two entities involved in an M&A
ACQUISITIONS transaction, one is buy side co, & another sell side, Each side
ADVISORS hires its own investment banks as advisors to get the
maximum value for their shareholders.
Facilitate buying & selling of securities & other financial
instruments between investment bank & large institutional
clients or high net-worth investors. Here the investment banks
approach large clients to suggest profitable trading ideas who
conduct & complete the trade on behalf of their client
SALES, TRADING
& CORPORATE
BROKING
ASSET
MANAGEMENT
SERVICES
Investment banks create an efficient portfolio for their client
which yields maximum returns for a certain risk that the client
is ready to bear charging a commission which is a percentage
of the asset under management.
Most investment banks host an in-house research department
where analysts work on research of equities & and other
securities which helps sales & trading department to come up
with high-profit trading ideas. C
RESEARCH| Investment banking floors-Summary
== -
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(Erna ete
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retvencisy | eaeInvestment banking floors- (2/3)
0 Ai Trading and Brokerage
U Proprictary Trading “irading for Citents
fae tade in stocks, bond commander of any other Do aes fr chess un HB, person funds
Sani! stamens ung the enn mane wth mt em in ey mae. debt mathe dete
ris rather then Cemmasions Volker Rule now probbis ams comminsionon vades
inventment bnks in USA todo proprietary radng
02 Wealth Management
Money management of Hs Le extte planning, etzement lasing. 4 planing. lent investmentInvestment Banking Floors - (3/3)
Credit
‘Analyte and mate investment
recommendation for corporate debt and
credit deviates of issuersin vations
sectors
Currency Equity
Analyze glob local economic RESEARCH + Analyze macro, sector and company
events and their impact on currency toidentity epportunities in stock
markets, rrovkets
‘Commodity
Research on metas precious metals ol
natural gas and agriculture
+ Buy side- Chents-Pemion funds,
Investment fund.
+ Sell side-Chents-lvestment banks,
advisory Furs, companies eteMecg a & Acy visition,
Mu oe
Ty iS the Combination of fer Company J antity to
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