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Investment Banking Areas Explained: Capital Markets
 
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Support us on Indiegogo and get early access to the 365 Data Science Program! https://igg.me/at/365-data-science-online-program Capital markets are one of the most fascinating areas of investment banking. Companies need these services when they are about to go public or want to issue debt sold to the public. When a company wants to raise equity, we talk about ECM, standing for Equity Capital Markets, and when it wants to raise debt, we talk about DCM, standing for Debt Capital Markets. On Facebook: https://www.facebook.com/365careers/ On the web: http://www.365careers.com/ On Twitter: https://twitter.com/365careers Subscribe to our channel: https://www.youtube.com/365careers
Views: 81443 365 Careers
Understanding Investment Banking
 
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Source : Société Générale CIB Taking a concrete example of a company with a project to build a new generation of wind turbines, this educational video explains the services provided by a corporate and investment bank which enable the project to see the day. The four main services offered include providing strategic advice, organising the financing, helping the client manage financial risk and offering appropriate investment solutions. In this way, Societe Generale plays a role in financing the economy. In French : Banque de Financement & d'Investissement (BFI) En partant d'un cas concret d'une société qui a un projet de bâtir une nouvelle génération d'éoliennes, cette vidéo pédagogique explique comment une banque de financement et d'investissement apporte des services qui permettent au projet de voir le jour. Les quatre grands services proposés consistent à apporter des conseils stratégiques, organiser le financement, accompagner le client dans la gestion des risques financiers et trouver des solutions d'investissement adaptées. C'est ainsi que Société Générale contribue au financement de l'économie réelle.
Views: 288347 QUANT GEN
What do investment banks actually do? - MoneyWeek Investment Tutorials
 
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MoneyWeek’s Tim Bennett explains what investment banks actually do- and how they earn their huge profits. MoneyWeek videos are made by MoneyWeek, the UK’s most popular financial magazine. Founded in 2000, MoneyWeek aims to provide intelligent and enjoyable commentary on the most important financial stories. It also tells you how to make money from the latest financial news. For more videos and exclusive content please visit http://moneyweek.com/video-tutorial/
Views: 530511 MoneyWeek
11 Difference Between Merchant Banking And Investment Banking
 
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1. Traditional merchant banks often expand into the field of securities underwriting, while many investment banks participate in trade financing activities.  2. Investment banks facilitate mergers and acquisitions through share sales and provide research and financial consulting to companies. 3. Based on: MERCHANT BANK:Fee based INVESTMENT BANK:Fee based and fund based 4. Example: Investment Banking: J.P. Morgan & Co. Bank of America Merrill Lynch Goldman Sachs Merchant Banking: J. S. Morgan & Co. Brown Brothers Harriman & Co. Samuel Montagu & Co. 5. Investment Bank is a financial institution that helps to government, corporate, HNI (High Net Worth) individual in raising capital. The merchant bank is a private financial institution that deals with international financial activities such as foreign corporate investment, foreign real estate investment and trade finance. 6. Investment banks focus on initial public offerings (IPOs) and large public and private share offerings. Merchant banks tend to operate on small-scale companies and offer creative equity financing, bridge financing and a number of corporate credit products. 7. Trade financing MERCHANT BANK:Offered to the clients INVESTMENT BANK:Rarely provided 8. Deals with: MERCHANT BANK: Small companies INVESTMENT BANK: Large companies 9. Functions of Investment Bank: Public Offerings of Debt and Equity Securities Private Placements of Debt and Equity Securities Raising Capital & Security Underwriting Mergers and Acquisitions Financial Advisory / Sponsor Group Finance Structured Finance / Securitization 10. Functions of Merchant Bank: To facilitate a client transaction To purchase securities in an operating company for the firm’s own account Facilitating Letter of Credit. corporate Financing 11. Investment banks often facilitate mergers and acquisitions activities. Merchant banks are not involved in M & A.
Views: 568 Patel Vidhu
UBS - A Primer on Investment Banking
 
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As one of the world's premier advisory and securities businesses, UBS Investment Bank provides clients with expert advice, innovative solutions, outstanding execution and comprehensive access to the world's capital markets. Whether our clients require investment banking, equities, fixed income or foreign exchange services, we have the global strength and industry experience to meet their needs. Every day, we use our intelligence, market insight and global coverage to help them to capture opportunities and manage risk. Investment Banking is not just for Finance majors. You can have an English major, a Mathematics major or even a Fine Arts major. The key driver to your success in a career path in investment banking is mainly given by your interest in the field of investment banking. In this presentation, analysts from UBS Australia provide some important insights of the different business activities that can be found in investment banking.
Views: 9693 QUANT GEN
Investment Banking: Industry Overview and Careers in Investment Banking
 
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Investment banks are notorious for their highly competitive working environment and long working hours for junior employees. Nevertheless, they continue to be seen as one of the prime destinations for talented Business and Finance graduates, given the excitement of working on large deals and the high pay scale that comes with this job. Investment banking operations tend to be more sophisticated than traditional “deposit taking, credit giving” retail banking services. Investment banks work closely with corporate clients, pension funds, financial sponsors and governments to structure and execute some of the largest transactions that we see in the news. On Facebook: https://www.facebook.com/365careers/ On the web: http://www.365careers.com/ On Twitter: https://twitter.com/365careers Subscribe to our channel: https://www.youtube.com/365careers
Views: 81906 365 Careers
Top 10 Challenges for Investment Banks
 
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Investment banks must look beyond their institutions to accelerate simplification, digitization and innovation. Learn why in our Top 10 Challenges series. Learn more: https://accntu.re/2kQ7qrd
Views: 878 Accenture
INVESTMENT BANKS easily explained
 
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Linked Videos: Investment Banking (Investmentbanking) easiliy explained: https://www.youtube.com/watch?v=SdLibKTv9XA&t=313s In this video we easily explain, what an investment bank does, e.g. Goldman Sachs, JP Morgan, UBS, Citi, Morgan Stanley, Lehman Brothers, Deutsche Bank, Credit Suisse, Barclays und Bank of America Merril Lynch. The Investment Banking Division, (Equity Capital Markets (ECM), Debt Capital Markets (DCM) and Mergers and Acquisitions (M&A)), the securities division (Sales, Trading, Market Making and Research), the investments division aswell as the Client Management (Asset Management und Vermögensverwaltung), are explained in this video. Every Investment Bank has different names for these departments, however apart from that they do not differ a lot. The largest investment banks are Goldman Sachs, JP Morgan, UBS, Citi, Morgan Stanley, Deutsche Bank, Credit Suisse, Barclays and Bank of America Merril Lynch. Many thanks for watching the video feel free to like the video and follow the channel. All pictures are self made and therefore belong to the channelowners.
Views: 5285 easyfinance
What do investment banks actually do? - MoneyWeek Investment Tutorials
 
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Tim Bennett looks at what investment banks actually do, how they operate and how they manage to earn such big profits. Don't miss out on Tim Bennett's video tutorials -- get the latest video sent straight to your inbox each week, before it's released on YouTube: http://bit.ly/TimBSubscribe To receive Tim's 50 FREE MoneyWeek Basics emails: http://bit.ly/mwk-basics Watch over 100 of Tim's videos for free: http://MoneyWeek.com/tutorials Or download them to your mobile device: http://bit.ly/TimBpodcast For the most important financial stories and how to profit from them: http://MoneyWeek.com http://Facebook.com/pages/MoneyWeek/110326662354766 http://Twitter.com/moneyweek Video series by CFA UK Highly Commended journalist Tim Bennett. http://twitter.com/TimMoneyweek
Views: 51246 moneycontent
The Investment Banking Model Is Flawed
 
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Investment banks encourage faulty risk management because the risks are "not internalized by the people that are taking them." Question: Is the investment banking model fundamentally flawed?   Robert Engle: My way of understanding this financial crisis is in terms of two different observations.  One is that risk managers and investment bankers and actually, all kinds of investors took on more risk than they expected.  So there was a failure of risk management.  There was a failure to recognize how much risk there was in some of these securities that people bought.  But a second and perhaps more important point is that many of these same people were paid very well to ignore the risks, and so there are incentives which are -- which distort our ability to measure risk.  That is, many times we're not risking our own money, we're risking somebody else's money, or maybe that someone is going to back stop or downside, but we still get the upside.  There are a lot of ways that investment banking models work, but these risks are not internalized by the people that are taking them.  And so, I think that's something that investment banks have worried about for a long time and are continuing to worry about, but it's not an easy solution when you have lots of people betting the company's money, how do you really allocate those risks?  How do you make sure that the people that take the risks are feeling the risks in an appropriate kind of fashion? Question: Do you agree with author Nassim Taleb that we put too much faith in financial experts?Robert Engle: Oh well I would agree with that.  I don't agree -- I agree with a lot of the points in Taleb's book, but I don't agree with many of his conclusions.  It seems to me that he rightly points out that risk managers miss a lot of the risks, but the conclusion is that he draws, is that we should abandon risk management, whereas my conclusion is we should improve it.  I don't see what the alternative to risk management is.  If it's just getting rid of the models and instead using the smart people who can figure it out?  How do you train them?  What do you teach them?  Do you just put them in a cockpit and let them stumble for 10 years of their life and then after that they're good at it?  I think that **** have gotten so complicated that we need risk management, but we just need to make it better.  We need to be able to understand better where these risks are coming from.  And I think actually one of the -- coming back to one of your previous points about investment strategies.  One of the things we might come out of this crisis and I think that Nassim is sort of an example of this as well is that we might invest a part of our assets in portfolios that we don't expect to do well not, but we would expect them to do well if we have another crisis.  And this is a different way of thinking about asset allocation.  It's an old idea in economics, but it hasn't' really been at the center of much investment analysis, but I think now there's a lot of interest in these so called hedge portfolios which will out perform in a crisis.  I mean, we've always had gold bugs, but now we sort of realize that Treasure Bills might be in the same category.  And we have derivatives like credit default swaps which are in this category, and we have derivatives like volatilities that are actually an asset class that we can invest in which are now -- would out perform if we have another financial crisis. And so thinking about these different assets and I should say, this extends to lots of other kinds of long term risks, for example, if we think about the long term risks of global warming.  You know, some of the portfolios we might consider buying are portfolios which would do especially well if we have an economy-wide, or I mean, a global climate change that impacts us very negatively there are some companies that will do well, and so it might make sense to hold some of those in your portfolio.  Recorded May 25, 2010 Interviewed by Andrew Dermont
Views: 2354 Big Think
9. Market Making by Investment Banks
 
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In this video on Market making, we look at what is market making and how investment bankers help firms to trade by providing liquidity to the market. Market Maker is someone who actually ensures liquidity in the market. As one of the services, Investment banking firms provide liquidity for trading by either buying the shares or selling the shares. This ensures that the trades happen and ensures that the market is less volatile. You can learn more on Market making here - https://www.wallstreetmojo.com/market-makers/
Views: 373 WallStreetMojo
Activities of Investment Banking: Finance Homework Help by Classof1.com
 
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Visit http://classof1.com/homework-help/finance-homework-help for customized academic help in finance. Activities of Investment Banking: The Investment bank is the financial institution which assists the governments, corporations and the individuals in raising the capital by acting or underwriting as the agent of the client in issuance of securities. The investment bank can also help the companies which are involved in acquisitions and mergers, and offer ancillary services like the trading of the derivatives, market making, foreign exchanges, instruments of the fixed income, equity securities and commodities.
2. Investment Banks vs Commercial Banks (Retail)
 
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In this video, we discuss the top differences between an Investment Bank vs Commercial Bank (Retail Bank). Key topics taken in this video are - Role of an Investment Bank? - What is a Commercial Bank - Investment Banking vs Commercial Banking. Investment Banks vs Retail Banks (Commercial) Investment Banks are financial brokers who assist the investors with financial transactions like Sales and Trading of Stocks, Mergers, and Acquisitions, Raising funds through IPO, Private Placements. They also underwrite and do market making activities. Commercial Banks are retail banks who collect deposits from the public and provide interest on their savings deposit. They loan this money to others at a higher interest rate, thereby earning a margin. For more detail, please refer to https://www.wallstreetmojo.com/investment-banking-vs-commercial-banking/
Views: 1307 WallStreetMojo
Top 10 investment banks in USA
 
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Top 10 investment banks in USA. List of Top 10 investment banks in USA/America. Top 10 are Below: 1. JPMorgan Chase 2. Goldman Sachs 3. Bank of America Merrill Lynch 4. Morgan Stanley 5. Citigroup 6. Barclays Investment Bank 7. Credit Suisse 8. Deutsche Bank 9. Wells Fargo Securities 10. RBC Capital Markets Disclaimer:- This channel does not promote any illegal content, does not encourage any kind of illegal activities. All contents provided by this channel is meant for EDUCATIONAL Purpose only. Stay With Subscribe: https://www.youtube.com/channel/UCyXfl7fksIhraTSQJNle6Mw Stay with us on https://top10inworldn.blogspot.com/ Join our Google plus community: https://plus.google.com/u/0/communities/116917642761754955893 Thanks. Do not forget to subscribe, like, comment and share.
Views: 105 Top 10 In World
Trade Life Cycle Explained Video 5
 
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Detailed Trade Life Cycle explained with Functional segregation into Front Office, Middle Office and Back Office. Various activities in all three business functions are also explained here
Views: 32436 Capital Markets Easy
13.  Investment Banking - Front Office vs Middle Office vs Back Office
 
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In this video, we discuss Investment Banking Front office vs Middle Office vs Back Office. Investment Banking Front Office In investment banking, front office essentially means those roles that interact directly with the clients. For example, sales and trading analysts have to interact with their clients on a daily basis. Investment bankers are in touch with their clients for pitching ideas. Likewise, equity analyst interacts with the client and advise them on BUY/SELL on stocks. Investment Banking Middle Office Investment Banking middle office roles include their interaction with the front office staff and ensures they comply with the rules and risks set by the team. Roles in risk management, process, and controls, strategy all come under Investment Banking Middle office. Investment Banking Back Office Investment Banking back office does all kind of reconciliation work after the trading. Also, the technology team also comes under the back office. You may learn more about this topic here in the article https://www.wallstreetmojo.com/investment-banking-roles-and-responsibilities/
Views: 1533 WallStreetMojo
What is the difference between commercial and investment banking
 
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The banking sector is split into two fundamental divisions: investment banking and commercial banking. Institutions that mix the two activities have come under scrutiny lately, accused of being major contributors to the global economic meltdown of 2008. Debate rages as to whether the two distinct banking activities should be carried out under a single roof, or whether they should be forever separate. Knowing the difference between commercial banks and investment banks can shed some light on this issue. Features Commercial banks manage deposit accounts, such as checking and savings accounts, for individuals and businesses. They make loans to the public using the money held on deposit. Investment banks differ strongly; these institutions facilitate the buying and selling of stocks, bonds and other investments, as well as helping companies to go public with initial public offerings (IPO). According to an article in The Enterprise from February 2009, commercial banks are highly regulated by a number of federal authorities, including the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve. Commercial banks are federally insured to protect customers' accounts. Investment banks, on the other hand, are only loosely regulated by the Securities and Exchange Commission (SEC), allowing them much more leeway in their strategic decision-making. Risk Tolerance Investment banks have a higher risk tolerance due to their business model and the relative weakness of government regulation in the industry. Commercial banks are much less tolerant of risk. Panic can ensue if families and businesses lose their checking and savings accounts, so commercial banks have an implied fiduciary duty to act in the best interest of their clients, not to mention the tight strings attached to commercial banks' FDIC insurance. History and the Future According to BU.edu, institutions that mixed commercial and investment banking activities contributed in part to the great depression of the early 20th century. The Glass-Steagall Act, part of the Banking Act of 1933, mandated the complete separation of commercial and investment banking activities, which seemed to yield stable results until its repeal in 1999 by the Gramm-Leach-Bliley Act. Since then, large banks have been free to engage in both types of banking under one roof, which is believed to have been a large contributing factor to the bust of the internet bubble in 2000 and 2001 and the beginning of the global recession in 2008. Whether or not Congress will act to separate the two activities, seemingly so volatile when used in tandem, remains to be seen. Benefits of Combination Banks mix commercial and investment activities to realize significant benefits. Acting as an investment bank, an institution can help a company sell an IPO, then use its commercial division to extend a generous line of credit to the new corporation. The generous loan allows the new company to finance rapid growth and boost its stock price. The bank can then reap the benefits of increased trading revenue and snag more commissions from future stock offerings. Considerations The problem with mixing investment and commercial banking is that institutions have historically gone too far to prop up weak and undeserving companies, leading to bubbles and disastrous busts. Mixed-business banks have the ability to create excitement and hype surrounding particular companies while injecting large sums of capital to prop up their stock valuations. Without paying attention to the fundamental strength of sectors and individual companies, however, this behavior is almost guaranteed to end in disaster.
Views: 28 Finance Courses
Why separating banking activities? (webinar)
 
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Separating Banking Activities: the missing piece to financial reform. Presentation - Aline Fares http://www.finance-watch.org Webinar - Not So Crazy! http://www.NotSoCrazy.eu
Views: 2152 Finance Watch
What do Salespeople and Traders do in an Investment Bank
 
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http://www.katsonga.com/girlbanker Get, To Become An Investment Banker (The Book) USA: http://amzn.to/2bb5OFH UK: http://amzn.to/2aIoQAx @GirlBanker: https://twitter.com/#!/GirlBanker The purpose of a capital markets division is to provide a range of financial products to investors and companies. The sales force specializes by product and will be the first point of contact for clients. Any buy or sell orders are passed on from sales to a trader, who executes and manages the risk associated with such a purchase or sale. Many traditionally advice-only investment banks have incorporated capital markets activities to their offering because they wanted to offer a fuller suite of products to their clients. The capital markets tend to be less hierarchical than corporate finance. Why? - Salespeople and traders are given individual revenue targets quite early in their career, possibly within 12 to 24 months of starting out. - It is possible for a junior to earn more money for the firm than someone senior to them so there is limited room for overbearing seniors -- one minute the guy or gal is your analyst, the next they're raking in more money than you. Some view capital markets as more meritocratic than corporate finance. Why? - The primary goal is to earn revenue by trading or selling. It's easy to measure revenue goals and hence reward performers accordingly. - Nonetheless, it's possible to land oneself on a team where the existing sales people or traders won't give you access to the good clients; they keep them for themselves and you have to wait until someone leaves before you can get profitable accounts. http://www.katsonga.com/girlbanker Get, To Become An Investment Banker (The Book) USA: http://amzn.to/2bb5OFH UK: http://amzn.to/2aIoQAx @GirlBanker: https://twitter.com/#!/GirlBanker
Views: 13890 GirlBanker
BNP Paribas CIB - Trading Day
 
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Over a one day period we give you a snapshot into life trading on our London Floor.
Views: 388764 BNPParibasCIBStudent
What is BOUTIQUE INVESTMENT BANK? What does BOUTIQUE INVESTMENT BANK mean?
 
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What is BOUTIQUE INVESTMENT BANK? What does BOUTIQUE INVESTMENT BANK mean? BOUTIQUE INVESTMENT BANK meaning - BOUTIQUE INVESTMENT BANK definition - BOUTIQUE INVESTMENT BANK explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. SUBSCRIBE to our Google Earth flights channel - https://www.youtube.com/channel/UC6UuCPh7GrXznZi0Hz2YQnQ A boutique investment bank is a non-full service investment bank that specializes in at least one aspect of investment banking, generally corporate finance, although some banks are retail in nature, such as Charles Schwab. Of those involved in corporate finance, capital raising, mergers and acquisitions and restructuring and reorganizations are their primary activities. Due to their smaller size, capital raising engagements are usually done on a best-efforts basis. Boutique investment banks generally work on smaller deals involving middle-market companies, typically less than a billion dollars in revenues, and usually assist on the sell-side in mergers and acquisitions transactions. In addition, they sometimes specialize in certain industries such as media, health care, industrials, technology or energy. Some banks may specialize in certain types of transactions, such as capital raising or mergers and acquisitions, or restructuring and reorganization. Typically, boutique investment may have a limited number of offices and may specialize in certain geographic regions, thus the moniker, 'regional investment bank'. During 2014, The Financial Times New York Times, and The Economist all published favorable articles regarding the growing trend of corporations to hire boutique investment banks. Reasons cited included their absence of conflicts, independence, and skill of one or a relative few individuals. The discrediting of traditionally conflicted Wall Street Investment Banking firms, especially those listed as Full-Service or Conglomerates on the List of Investment Banks, due to their role in the creation or exacerbation of the Great Financial Crisis is cited as a primary reason for the ascendancy of these boutique firms. However, advances in technology which permit the outsourcing of all non-core aspects of the firm have also been cited as a cause of this David versus Goliath phenomenon. Working at boutique investment banks generally requires working fewer hours than at larger banks, even though the majority of boutiques are founded and led by former partners at large banks. As larger investment banks were hit hard by the Great Recession of the 2000s, many senior bankers left to join boutiques, some of which largely resemble the partnerships that ruled Wall Street in the 1970s and 1980s. Boutique investment banks took a greater share of the M&A and advising market at the same time. There are many boutique investment banks, both in the U.S. and internationally. Large, prestigious boutique firms include The Blackstone Group, Brown Brothers Harriman, and Piper Jaffray. While these may be national in scale, they are not international and full-service as are the so-called 'bulge bracket firms'. Smaller boutiques are commonly not household names, but within their niche may be quite well known.
Views: 387 The Audiopedia
10. Mergers and Acquisitions M&A in Investment Banking
 
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In this video on Mergers and Acquisitions (M&A) in Investment Banking, we discuss What is Mergers and Acquisition or M&A and how Investment Bankers help in M&As Mergers and Acquisitions in easy language means - either company A mergers with company B to form a larger entity C - - or company A gets acquired by company B and company A ceases to exist. Investment Bankers help companies identify potential Mergers and acquisitions target. Their role includes the following - 1. analyzing the target's financial information 2. evaluating potential synergies 3. identifying risks and benefits 4. assessing operations 5. preparing a financial model to understand accretive/dilutive analysis. With this, the Investment Banker in M&A Advisory prepares pitch books and meets potential acquirers and targets and also helps in negotiations For more detail, please refer to https://www.wallstreetmojo.com/investment-banking-mergers-and-acquisitions/
Views: 728 WallStreetMojo
Banks  Insurance Companies - Banking Brief  - investment bank
 
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Banks Insurance Companies - Banking Brief - investment bank
Views: 4216 Hust Activities
Investment Banking 101: Operating Model
 
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In this episode of the financial modelling series Sergey, ex-Goldman Sachs investment banker, will describe how to build an operating model for a start-up company with the step-by-step financial modelling guide. 00:47 income statement assumptions total revenue cost of goods sold research & development sales & marketing general & administrative expenses other expenses 26:00 balance sheet assumptions operating assets operating liabilities capex & depreciation schedule other assumptions 37:35 income statement revenue gross profit operating expenses operating income ( EBIT) prfoit before taxes net income 49:10 balance sheet assets liabilities & shareholders equity 01:04:08 cash flow statement cash flow from operating activities Original Excel file with financial model can be found here: https://goo.gl/QScJgJ Our Investment Banking preparation course https://youtu.be/bBMmN8Cmq3g WANT TO GET INTO INVESTMENT BANKING? Join Sergey's course on Investment Banking Interview Prep https://edu.fless.pro/investment-banking-interview-prep-course SUBSCRIBE AND STAY WITH US! FLESS https://fless.pro Instagram https://www.instagram.com/flesspro Facebook https://www.facebook.com/flesspro VK https://vk.com/flesspro Telegram https://t.me/flesspro
Views: 5110 Fless
Investment Banking Operations: Financial Derivatives and Options Trading - Career (1998)
 
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Investment banking has changed over the years, beginning as a partnership form focused on underwriting security issuance (initial public offerings and secondary offerings), brokerage, and mergers and acquisitions, and evolving into a "full-service" range including sell-side research, proprietary trading, and investment management. In the modern 21st century, the SEC filings of the major independent investment banks such as Goldman Sachs and Morgan Stanley reflect three product segments: (1) investment banking (fees for M&A advisory services and securities underwriting); (2) asset management (fees for sponsored investment funds), and (3) trading and principal investments (broker-dealer activities including proprietary trading ("dealer" transactions) and brokerage trading ("broker" transactions)).[3] In the United States, commercial banking and investment banking were separated by the Glass--Steagall Act, which was repealed in 1999. The repeal led to more "universal banks" offering an even greater range of services. Many large commercial banks have therefore developed investment banking divisions through acquisitions and hiring. Notable large banks with significant investment banks include JPMorgan Chase, Bank of America, Credit Suisse, Deutsche Bank, Barclays, and Wells Fargo. After the financial crisis of 2007--2008 and the subsequent passage of the Dodd--Frank Wall Street Reform and Consumer Protection Act, regulations have limited certain investment banking operations, notably with the Volcker Rule's restrictions on proprietary trading.[2] The traditional service of underwriting security issues has declined as a percentage of revenue. As far back as 1960, 70% of Merrill Lynch's revenue was derived from transaction commissions while "traditional investment banking" services accounted for 5%. However, Merrill Lynch was a relatively "retail-focused" firm with a large brokerage network. Corporate finance is the traditional aspect of investment banks which also involves helping customers raise funds in capital markets and giving advice on mergers and acquisitions (M&A). This may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. Another term for the investment banking division is corporate finance, and its advisory group is often termed "mergers and acquisitions". A pitch book of financial information is generated to market the bank to a potential M&A client; if the pitch is successful, the bank arranges the deal for the client. The investment banking division (IBD) is generally divided into industry coverage and product coverage groups. Industry coverage groups focus on a specific industry -- such as healthcare, public finance (governments), FIG (financial institutions group), industrials, TMT (technology, media, and telecommunication) -- and maintains relationships with corporations within the industry to bring in business for the bank. Product coverage groups focus on financial products -- such as mergers and acquisitions, leveraged finance, public finance, asset finance and leasing, structured finance, restructuring, equity, and high-grade debt -- and generally work and collaborate with industry groups on the more intricate and specialized needs of a client. The Wall Street Journal, in partnership with Dealogic, publishes figures on investment banking revenue such as M&A in its Investment Banking Scorecard. http://en.wikipedia.org/wiki/Investment_banking
Views: 6082 The Film Archives
Should Commercial Banks Have Investment Bank Powers? Financial Services Restructuring
 
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In the United States the term "commercial bank" was often used to distinguish it from an investment bank due to differences in bank regulation. After the Great Depression, through the Glass–Steagall Act, the U.S. Congress required that commercial banks only engage in banking activities, whereas investment banks were limited to capital market activities. This separation was mostly repealed in 1999 by the Gramm–Leach–Bliley Act but was restored by the Volcker Rule, implemented in January 2014 as part of the Dodd-Frank Act of 2010. Core products and services: Accepting money on various types of Deposit accounts Lending money in the form of Cash: by overdraft, instalment loan etc. Lending money in Documentary form: Letters of Credit, Guarantees, Performance bonds, securities, underwriting commitments and other forms of off-balance sheet exposure. Inter- Financial Institutions relationship Cash management Treasury management Private Equity financing Issuing Bank drafts and Bank cheques Processing payments via telegraphic transfer, EFTPOS, internet banking, or other Traditionally, large commercial banks also underwrite bonds, and make markets in currency, interest rates, and credit-related securities, but today large commercial banks usually have an investment bank arm that is involved in the aforementioned activities. https://en.wikipedia.org/wiki/Commercial_bank An investment bank is a financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities (or both). An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services (fixed income instruments, currencies, and commodities). Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (Glass–Steagall Act) until 1999 (Gramm–Leach–Bliley Act), the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G7 countries, have historically not maintained such a separation. As part of the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act of 2010), the Volcker Rule asserts full institutional separation of investment banking services from commercial banking. The two main lines of business in investment banking are called the sell side and the buy side. The "sell side" involves trading securities for cash or for other securities (e.g. facilitating transactions, market-making), or the promotion of securities (e.g. underwriting, research, etc.). The "buy side" involves the provision of advice to institutions concerned with buying investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, and hedge funds are the most common types of buy side entities. An investment bank can also be split into private and public functions with an information barrier which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public information. An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulation. https://en.wikipedia.org/wiki/Investment_banking
Views: 225 Way Back
Investment Banks - Equity Research - Sales & Trading
 
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Fahad Al Rajaan - Research has traditionally been an essential supporting function to sales and trading. Visit http://www.fahadalrajaan.co.uk/investment-banking-what-is-sales-trading/ to read about the sales and trading activities of investment banks.
Views: 176 Fahad Al Rajaan
Investment Banking With FBN Capital Pt.1
 
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Director, Head Asset Management, FBN Capital, Michael Oyebola speaks about the company and its activities. For more information log on to www.channelstv.com.
Views: 349 Channels Television
Top 10 Richest Banks In The World
 
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We Ranked the Top 10 Richest Banks in the World Right Now! • Read the full article here: http://www.alux.com/richest-banks-in-the-world-top-10/ When you're thinking about money and wealth is hard not to include in that equation Banks. Someone said: Money makes the world go round" and banks, well, that's where money likes to hang out. Every Aluxer we've met has close relations to at least one bank which makes it possible for us to enjoy life to the fullest. #2 *** HSBC Holdings is previously known as The Hong Kong and Shanghai Banking Corporation which was founded in 1865 in Hong Kong. However, in 1991-1992, after acquiring Midland Bank The Hong Kong and Shanghai Banking Corporation moved it's headquarters to London because it was much better from a financial and strategic point of view. This is the moment when the bank kind of re-branded itself and became HSBC Holdings the bank that you know today. With that said, we'd like you to enjoy our latest video on: the top ten richest banks in the world. Here we're answering questions like; • Which is the richest bank in the world?! • How much money do the top banks have?! • Is Bank of America the richest bank in the world?! • Who owns the richest bank in the world? • How much money does the richest bank have?! Say Hello on: https://www.instagram.com/aluxcom/ https://twitter.com/aluxcom https://www.facebook.com/EALUXE - SUBSCRIBE to ALUX: https://goo.gl/KPRQT8 WATCH MORE VIDEOS ON ALUX.COM! Most Expensive Things: https://goo.gl/09XcYJ Luxury Cars: https://goo.gl/eOUgfS Becoming a Billionaire: https://goo.gl/rRLgJI World's Richest: https://goo.gl/m6emkX Inspiring People: https://goo.gl/KxqTdL Travel the World: https://goo.gl/g5BGmm Dark Luxury: https://goo.gl/20ZsSt Celebrity Videos: https://goo.gl/0cs6sx Businesses & Brands: https://goo.gl/otHsTB -- Alux.com is the largest community of luxury & fine living enthusiasts in the world. We are the #1 online resource for ranking the most expensive things in the world and frequently refferenced in publications such as Forbes, USAToday, Wikipedia and many more, as the GO-TO destination for luxury content! Our website: https://www.alux.com is the largest social network for people who are passionate about LUXURY! Join today!
Views: 460594 Alux.com
What Do You Do As An Investment Banker?
 
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In a capitalist economy, investment bankers play a role in helping their clients raise capital to finance various activities and grow their businesses. They are financial advisory intermediaries who help price capital and allocate it to various uses. What do investment bankers really do? A day in the life of an banking analyst. Hold him off until you can finish it and curse yourself for not as a corporate investment banker will provide range of financial services pay is often performance related bonuses sometimes be four times the in addition to underwriting securities, bankers usher if do attend highly rated business school, need work hard build consider safe employed risky an entrepreneur, then banking considered one best bets terms while many people good at interviews through extensive practice, can't fake modelling test. What do investment bankers business insider. What does an investment banker do? Sokanu. The age old question that continuously pops up, especially when it comes time to sign an engagement letter. Can you be happy as an investment banker? . But i suppose you'll find 26 mar 2017 there it is. What do investment banking analysts really all day (and night corporate banker job profile how to become an. What do investment bankers really do? 14 jun 2017 for those interested in a wall street career, there are number of roles that could be trader vs banker which job is best you? Thinking career as an or trader? Then you'd better if you're new here, please click here to get my free 57 page banking i've seen many explanations what actually do, but analyst day the life, how much you work, abused, and cocaine i can tell entry level bulge bracket leveraged finance group does. Below we break down each of the major functions investment bank, and provide a 14 oct 2015 how do you get into banking? These are ten best routes to follow bankers can work 100 hours week performing research, financial as some might lead believe it's not like 80 1 aug 2016 director associate calls for status on one thing haven't finished yet. What do investment bankers really do? What A day in the life of an banking analyst. For more check out my ibankinginternship site. What exactly is an investment banker? Entrepreneur. What do entry level investment bankers actually do? Quora. Why people become investment bankers the ibanker. Maybe this is a general commentary on the 19 feb 2012 op, i'm not an investment banker, so i can offer you no advice as to whether bankers are 'happy' or. How to answer why investment banking? . What do investment bankers do? A guide to understanding ib. The investment banking modelling test is the ultimate. 7 30am get up, 9 oct 2012 we'll start with some generic questions; If you have questions you'd like i can't put it better than the senior banker who once asked me why i 22would you make a good investment banker? Sokanu's free assessment reveals what do investment banks actually do? Moneyweek investment tutorials 12 jun 2007 you can verify
Investment Banking
 
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In this video it is described what investment banking actually claims to do. Also, difference between retail banking & investment banking along with their major activities.
Views: 152 SS Knowledge Hub
7. Raising Capital - How Investment Bankers Help Raise Capital?
 
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In this video tutorial on How to raise capital we discuss Role of Investment Bankers in Raising Capital and options that you have while raising capital Initial public offering (IPO), Follow-on Public Offering, Private Placements Role of Investment Bankers in Raising Capital Investment Bankers are connected with Institutional and large investors. Investment Bankers perform valuations and help companies connect with these large investors for investments.. What are IPO and FPO When a company grows in size and is looking to fuel further expansion, then the company can opt for IPOs or FPOs. Here again, Investment Bankers help the companies prepare the registration document, perform valuation analysis, connect with investors, underwrite the IPO and complete all the legal work etc. What are Private Placements Private Placements are different from taking a public route to raise money. Here the company looks for a small number of investors to raise money from. Again, the role of an investment banker is very critical as they are connected to such key investors and help the company raise capital through private placements. For more detail, please refer to https://www.wallstreetmojo.com/private-placement-ipo-fpo-in-investment-banking/
Views: 506 WallStreetMojo
Back Office Settlement SWIFTS and Reconciliation Video 8
 
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Video contains details on various Back Office function and activities which happen in Trade Life Cycle
Views: 9313 Capital Markets Easy
Walk Me Through Your Resume: Quick Tip for Investment Banking Interviews
 
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In this lesson, you'll get a quick and easy-to-implement, but still very effective. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" You'll also get tips on how to improve your resume / CV walk-through in investment banking, private equity, and other finance interviews. Your resume walk-through is how you answer the "Tell me about yourself" or "Walk me through your resume" or "Why are you here today?" question when you walk into an interview and first introduce yourself. This is IMPORTANT because it's y our first impression, and interviewers often decide your status within the first 5 minutes of the interview. Come across well, and you can answer other questions poorly but still receive a job offer or move onto the next round; come across poorly, and you won't move to the next round no matter how great your Excel skills are. We recommend this outline for your resume walk-through: 1. The Beginning - Where you went to school, where you started out working, your family background, etc. 2. The Spark - What, specifically, made you interested in finance initially? A person? An event? Your parents day trading or running a business? A professor? An internship? 3. Growing Interest - How did you develop this interest via classes, activities, further internships or jobs, and your networking and self-study efforts? 4. The Future / Why You're Here Today - What's your future goal (advising / investing in companies?) and how will working at this firm allow you to contribute TO that firm while also achieving your long-term goals? THE PROBLEM: Often, the last part - the "Future" / "Why You're Here Today" segment is BORING and what you say sounds identical to everyone else's statement. "I want to become a trusted adviser to companies." "I want to invest in companies in XX sector." THE SOLUTION: Link it back to the FIRST PART of your story - either your Beginning or Spark - to make it more memorable and attention-grabbing. It works in movies (see: Inception and The Usual Suspects), and it works in interviews, too! Example 1: You're in a private equity interview, and your Spark is how you helped a private tech company raise funds; you saw additional expansion opportunities via partnerships and other deals, but in investment banking you just advise on one deal and that's it... so you started looking into PE in more detail. Instead of just saying, "I want to combine my interest in tech with my background in finance and invest in tech companies in the future," say: "So I'm here today because of that original situation with the private company that sparked my interest in the industry - I want to get more opportunities like that, where I can help improve businesses over the long-term via partnerships, acquisitions, and operational changes that you only get to implement in private equity. And in the future, I want to be an investor in the tech sector, and your firm is the best place for that because... [Insert the rest of your reasons here]" Example 2: You're in an investment banking interview, and your Spark was working at a non-profit that merged with another non-profit one summer, after which you started taking more finance classes and learning more about the industry. You have a background in public policy, and your long-term plan is to advise in the Project Finance / Public Finance sectors. Instead of just saying that for the last part of your story, you could say: "I want to advise organizations that may not be as ‘savvy’ about finance, like the merged non-profit I was at a few years ago – and become a trusted adviser to those types of public/private organizations. Your firm is the ideal place to do that because of [And insert references to other deals or clients they've advised here]."
Operational Risk Management in Financial Services
 
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Operational risk can have a crippling effect on a company if not managed properly. This is especially true in the financial services industry. Banks and investment firms must pay close attention to variables that have the potential to impact their operations, not only from the breakdown of technology and processes, but also from a personnel perspective. The responsibility of managing one's money is great, and the inability to properly anticipate and manage potential risk factors can have a devastating effect, all the way up to the industry level. A case in point was the subprime mortgage crisis of the late 2000s, which led to a nationwide economic recession. Mike Pinedo, the Julius Schlesinger Professor of Operations Management at New York University's Stern School of Business, is an expert in risk management research, particularly in the context of the financial services industry. In his presentation at The Boeing Center's 13th annual Meir Rosenblatt Memorial Lecture, he described the main types of primary risks in a financial services company: market risk, credit risk, and operational risk. Ops risk, which is the risk of a loss resulting from inadequate or failed internal processes, people, or external events, may be the most important factor, he claimed. Full article → http://bit.ly/2tfvwxn
Views: 7545 The Boeing Center
Investment Banking trends post financial Crisis
 
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Stefano Gatti is Director of the B.Sc of Economics and Finance at Università Bocconi, where he's been also Director of the International Teachers' Programme and also a faculty of Investment Banking at MISB Bocconi. In this video he talks about various aspects of investment banking. He talks about recent trends in market after the financial crisis. He talks about higher degree of certainity on investments and it has affected activities of investment banking. One of the example for this is that organising a bond issue has become difficult now.
Views: 417 MISB bOCCONI
Future of Private Banking - financial advisory wealth management, funds, investment. Banking speaker
 
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http://www.globalchange.com Future of private banking clients and wealth management for ultra high net worth individuals. Fund management, investment banking, asset creation and fund growth. Portfolio management and managing risk in balanced distribution of assets. Customer expectations of High rates of return in a low interest environment. Key economic trends impact on private banking clients and wealth management strategies. Succession planning and how to run family offices. Specialist wealth advisors and independent financial advisors, end of commissions and shift to fee-based advice, changing regulations and fee structures. Philanthropy and philanthropic advisory services. Why charitable activities are so important to high net worth families and why most want their own charity foundations. Making a difference, proving added value and real social impact, Applying business principles and measurable outcomes to philanthropy. Venture philanthropy and social entrepreneurs. Making philanthropy work in a disciplined way with formal evaluation and monitoring. Financial disciplines and specialist advisory teams. Video by keynote conference speaker Dr Patrick Dixon, Futurist and author of 12 books on global trends including Futurewise and Building a Better Business. Private banking, investment banking, wealth management, portfolio, balanced, philanthropy, charitable foundation, social action, advisory services, independent financial, planning, financial, finances, banks, investors, funds, fund managers
investment banking
 
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What is 'Investment Banking ' Investment banking is a specific division of banking related to the creation of capital for other companies, governments and other entities. Investment banks underwrite new debt and equity securities for all types of corporations, aid in the sale of securities, and help to facilitate mergers and acquisitions, reorganizations and broker trades for both institutions and private investors. Investment banks also provide guidance to issuers regarding the issue and placement of stock Read more: Investment Banking http://www.investopedia.com/terms/i/investment-banking.asp#ixzz4olX0XP8D Follow us: Investopedia on Facebook
Views: 25 sai krishna
Career Advice - Finance and Investment Banking
 
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Rick Sopher, Managing Director of LCF Rothschild Asset Management, shares his advice on how best to achieve a successful finance career. Those looking to start or further a career in the finance sector will benefit from Rick Sopher's insightful answers to the following questions: "What is the relevance of work experience for the finance job candidate?" "How does one best succeed in one's finance career?" "How does one discuss the issue of a pay rise with one's manager?" "How important are extra-curricular activities in the context of job searching?" "How can one move into finance from other sectors?" An Innovate CV resume can help you get the job you want in finance! www.innovatecv.com Get the professional skills you need for your successful career in finance -- visit Innovate CV's Career and Training Centre! www.innovatecv.com/careercentre
Views: 106356 InnovateCV
Corporate Finance vs Investment Banking | Know the Best Differences!
 
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In this video on Corporate Finance vs Investment Banking career's, we will help you decide which career to choose by comparing its concepts, skills and many more. 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐯𝐬 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 ------------------------------------------------------------------------- Investment Banking and Corporate Finance are the most promising career options for finance students. Both the areas offer highly competitive job roles, and excellent prospects to grow as a professional. 𝐂𝐨𝐧𝐜𝐞𝐩𝐭𝐮𝐚𝐥 𝐃𝐢𝐟𝐟𝐞𝐫𝐞𝐧𝐜𝐞𝐬 - 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐛𝐚𝐧𝐤𝐢𝐧𝐠 𝐚𝐧𝐝 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐞. ----------------------------------------------------------------------------------------------------------- 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗯𝗮𝗻𝗸𝗶𝗻𝗴 Investment Banking deals with major financing activities including acquiring other businesses, issue of securities, raising capital for a business. 𝗖𝗼𝗿𝗽𝗼𝗿𝗮𝘁𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗲 It is basically concerned with the companies financial activities. Decisions for investments or for raising capital fall within its domain. The main objective is to maximize the value of a business by making financial decisions which may include identifying avenues for reinvesting profits, allocation of resources, or raising capital by issuing equity or debt securities. 𝐒𝐤𝐢𝐥𝐥𝐬 𝐍𝐞𝐞𝐝𝐞𝐝 𝐟𝐨𝐫 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐂𝐚𝐫𝐞𝐞𝐫 ---------------------------------------------------------------------------- 1. Excellent analytical abilities 2. Expert knowledge of financial analysis 3. Broad-based knowledge of corporate finance 4. Excellent communication abilities 5. Good accounting skills 𝐒𝐤𝐢𝐥𝐥𝐬 𝐍𝐞𝐞𝐝𝐞𝐝 𝐟𝐨𝐫 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐁𝐚𝐧𝐤𝐢𝐧𝐠 𝐂𝐚𝐫𝐞𝐞𝐫 ------------------------------------------------------------------------------- 1. Excellent analytical abilities 2. Advanced knowledge of financial concepts 3. Excellent networking abilities 4. Expert at client negotiation 5. Hard skills like Valuations, Financial Modeling, PowerPoint presentations and Excel. To know more about Investment banking vs Corporate Finance, you can go to this 𝐥𝐢𝐧𝐤 𝐡𝐞𝐫𝐞: https://www.wallstreetmojo.com/corporate-finance-vs-investment-banking/
Views: 32 WallStreetMojo
What is TREASURY MANAGEMENT? What does TREASURY MANAGEMENT mean?
 
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What is TREASURY MANAGEMENT? What does TREASURY MANAGEMENT mean? TREASURY MANAGEMENT meaning - TREASURY MANAGEMENT definition - TREASURY MANAGEMENT explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Treasury management (or treasury operations) includes management of an enterprise's holdings, with the ultimate goal of managing the firm's liquidity and mitigating its operational, financial and reputational risk. Treasury Management includes a firm's collections, disbursements, concentration, investment and funding activities. In larger firms, it may also include trading in bonds, currencies, financial derivatives and the associated financial risk management. Most banks have whole departments devoted to treasury management and supporting their clients' needs in this area. Until recently, large banks had the stronghold on the provision of treasury management products and services. However, smaller banks are increasingly launching and/or expanding their treasury management functions and offerings, because of the market opportunity afforded by the recent economic environment (with banks of all sizes focusing on the clients they serve best), availability of (recently displaced) highly seasoned treasury management professionals, access to industry standard, third-party technology providers' products and services tiered according to the needs of smaller clients, and investment in education and other best practices. A number of independent treasury management systems (TMS) are available, allowing enterprises to conduct treasury management internally. For non-banking entities, the terms Treasury Management and Cash Management are sometimes used interchangeably, while, in fact, the scope of treasury management is larger (and includes funding and investment activities mentioned above). In general, a company's treasury operations comes under the control of the CFO, Vice-President / Director of Finance or Treasurer, and is handled on a day-to-day basis by the organization's treasury staff, controller, or comptroller. In addition the Treasury function may also have a Proprietary Trading desk that conducts trading activities for the bank's own account and capital, an Asset liability management (ALM) desk that manages the risk of interest rate mismatch and liquidity; and a Transfer pricing or Pooling function that prices liquidity for business lines (the liability and asset sales teams) within the bank. Banks may or may not disclose the prices they charge for Treasury Management products, however the Phoenix Hecht Blue Book of Pricing may be a useful source of regional pricing information by product or service. Concerns about systemic risks in Over The Counter (OTC) derivatives markets, led to G20 leaders agreeing to new reforms being rolled out in 2015. This new regulation, states that largely standardized OTC derivative contracts should be traded on electronic exchanges, and cleared centrally by Central Counterparty/Clearing House trades. Trades and their daily valuation should also be reported to authorized Trade Repositories and initial and variation margins should be collected and maintained .
Views: 13433 The Audiopedia
Too big to tell "Separation of commercial banks and investment banks"
 
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Thierry Philipponat former Secretary General of Finance Watch Investment banker in Paris, London and New York for 25 years Co-founder of Finance Watch in 2011 Documentary, 94 min www.toobigtotell.eu director: Johanna Tschautscher
Views: 372 Johanna Höfler
Do Investment Banks Add Value to the Economy, Day Trade or Give Loans? (2003)
 
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An investment bank is a financial institution that assists individuals, corporations, and governments in raising financial capital by underwriting or acting as the client's agent in the issuance of securities (or both). An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, and FICC services (fixed income instruments, currencies, and commodities). Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933 (Glass–Steagall Act) until 1999 (Gramm–Leach–Bliley Act), the United States maintained a separation between investment banking and commercial banks. Other industrialized countries, including G8 countries, have historically not maintained such a separation. As part of the Dodd–Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act of 2010), Volcker Rule asserts full institutional separation of investment banking services from commercial banking. The two main lines of business in investment banking are called the sell side and the buy side. The "sell side" involves trading securities for cash or for other securities (e.g. facilitating transactions, market-making), or the promotion of securities (e.g. underwriting, research, etc.). The "buy side" involves the provision of advice to institutions concerned with buying investment services. Private equity funds, mutual funds, life insurance companies, unit trusts, and hedge funds are the most common types of buy side entities. An investment bank can also be split into private and public functions with an information barrier which separates the two to prevent information from crossing. The private areas of the bank deal with private insider information that may not be publicly disclosed, while the public areas such as stock analysis deal with public information. An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulation. Investment banking has changed over the years, beginning as a partnership form focused on underwriting security issuance, i.e. initial public offerings (IPOs) and secondary market offerings, brokerage, and mergers and acquisitions, and evolving into a "full-service" range including securities research, proprietary trading, and investment management. In the modern 21st century, the SEC filings of the major independent investment banks such as Goldman Sachs and Morgan Stanley reflect three product segments: (1) investment banking (fees for M&A advisory services and securities underwriting); (2) asset management (fees for sponsored investment funds), and (3) trading and principal investments (broker-dealer activities including proprietary trading ("dealer" transactions) and brokerage trading ("broker" transactions)).[3] In the United States, commercial banking and investment banking were separated by the Glass–Steagall Act, which was repealed in 1999. The repeal led to more "universal banks" offering an even greater range of services. Many large commercial banks have therefore developed investment banking divisions through acquisitions and hiring. Notable large banks with significant investment banks include JPMorgan Chase, Bank of America, Credit Suisse, Deutsche Bank, Barclays, and Wells Fargo. After the financial crisis of 2007–08 and the subsequent passage of the Dodd-Frank Act of 2010, regulations have limited certain investment banking operations, notably with the Volcker Rule's restrictions on proprietary trading.[2] The traditional service of underwriting security issues has declined as a percentage of revenue. As far back as 1960, 70% of Merrill Lynch's revenue was derived from transaction commissions while "traditional investment banking" services accounted for 5%. However, Merrill Lynch was a relatively "retail-focused" firm with a large brokerage network. The investment banking industry, and many individual investment banks, have come under criticism for a variety of reasons, including perceived conflicts of interest, overly large pay packages, cartel-like or oligopolic behavior, taking both sides in transactions, and more. Investment banking has also been criticised for its opacity. http://en.wikipedia.org/wiki/Investment_banking
Views: 310 Way Back
Dividend Discount Model - Commercial Bank Valuation (FIG)
 
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Why the Dividend Discount Model (DDM) is used to value commercial banks instead of the traditional Discounted Cash Flow (DCF) analysis. By http://breakingintowallstreet.com/ "Financial Modeling Training And Career Resources For Aspiring Investment Bankers" There are 3 main reasons why the DCF and the concept of Free Cash Flow (FCF) do not apply to commercial banks: 1. You can't separate operating vs. investing vs. financing activities - the lines are very blurry for a bank, since items like debt are more operationally-related and fund the bank's lending activities. 2. CapEx doesn't represent re-investment in the business, as it does for a normal company - for a bank,"re-investment" means hiring people, doing more lending, etc. 3. Working Capital represents something much different for a bank - the standard definition of Current Assets Excl. Cash Minus Current Liabilities Excl. Debt makes no sense, because for banks that includes tons of investments, securities, other borrowings, etc. so you could see massive swings... What You Do Instead - Use Dividends as a Proxy for Free Cash Flow Why? Because banks are CONSTRAINED by capital requirements - according to the Basel accords (I, II, III), they must maintain a certain "buffer" at all times to cover unexpected losses on their loans... So just like CapEx requirements, Net Income growth, and Working Capital constrain FCF for normal companies, the Tier 1 Capital / Tangible Common Equity / Total Capital requirements constrain dividends for banks. So we'll project a bank's regulatory capital, its asset growth, and its net income, and use those to project its dividends - then, discount, and sum up the dividends and discount and add the NPV of its terminal value. How to Set Up a Dividend Discount Model (DDM) 1. Make assumptions for Total Assets, Asset Growth, targeted Tier 1 (or other) Ratios, Risk-Weighted Assets, Return on Assets (ROA) or Return on Equity (ROE), and Cost of Equity. 2. Next, project Assets and Risk-Weighted Assets. 3. Then, project Net Income based on ROA or ROE. 4. Then, project Shareholders' Equity (AKA Tier 1 Capital) based on targeted capital ratio... 5. And BACK INTO dividends! Different from a normal company's DDM! Set dividends such that the minimum capital ratio is maintained, based on starting Shareholders' Equity and Net Income that year. 6. Flesh out the rest of the model - stats, growth rates, other metrics. 7. Discount and sum up dividends. 8. Calculate, discount, and add Terminal Value so that NPV = NPV of Terminal Value + NPV of All Dividends. 9. Calculate the Implied Share Price and compare to actual Share Price. Is the bank undervalued? Overvalued? What are the clues so far? What Next? Try it with a real company, using its historical financial information. Add more complex / realistic assumptions, based on industry research, channel checks, the bank's own strengths/weaknesses, etc. Add more advanced features - other ways to calculate Terminal Value, more accurate regulatory capital, mid-year discount and/or stub periods, stock issuances / repurchases, multiple growth stages, and so on.
The importance of history name tradition and reputation of Investment baking
 
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Undoubtedly, investment banking as an industry in the United States has come a long way since its beginnings. Below is a brief review of the history 1896-1929 Prior to the great depression, investment banking was in its golden era, with the industry in a prolonged bull market. JP Morgan and National City Bank were the market leaders, often stepping in to influence and sustain the financial system. JP Morgan (the man) is personally credited with saving the country from a calamitous panic in 1907. Excess market speculation, especially by banks using Federal Reserve loans to bolster the markets, resulted in the market crash of 1929, sparking the great depression. 1929-1970 During the Great Depression, the nation’s banking system was in shambles, with 40% of banks either failing or forced to merge. The Glass-Steagall Act (or more specifically, the Bank Act of 1933) was enacted by the government with the intent of rehabilitating the banking industry by erecting a wall between commercial banking and investment banking. Additionally, the government sought to provide the separation between investment bankers and brokerage services in order to avoid the conflict of interest between the desire to win investment banking business and duty to provide fair and objective brokerage services (i.e., to prevent the temptation by an investment bank to knowingly peddle a client company’s overvalued securities to the investing public in order to ensure that the client company uses the investment bank for its future underwriting and advisory needs). The regulations against such behavior became known as the “Chinese Wall.” 1970-1980 In light of the repeal of negotiated rates in 1975, trading commissions collapsed and trading profitability declined. Research-focused boutiques were squeezed out and the trend of an integrated investment bank, providing sales, trading, research, and investment banking under one roof began to take root. In the late 70’s and early 80’s saw the rise of a number of financial products such as derivatives, high yield structured products, which provided lucrative returns for investment banks. Also in the late 1970s, the facilitation of corporate mergers was being hailed as the last gold mine by investment bankers who assumed that Glass-Steagall would some day collapse and lead to a securities business overrun by commercial banks. Eventually, Glass-Steagall did crumble, but not until 1999. And the results weren’t nearly as disastrous as once speculated. 1980-2007 In the 1980s, investment bankers had shed their stodgy image. In its place was a reputation for power and flair, which was enhanced by a torrent of mega-deals during wildly prosperous times. The exploits of investment bankers lived large even in the popular media, where author Tom Wolfe in “Bonfire of the Vanities” and movie-maker Oliver Stone in “Wall Street” focused on investment banking for their social commentary. Finally, as the 1990s wound down, an IPO boom dominated the perception of investment bankers. In 1999, an eye-popping 548 IPO deals were done – among the most ever in a single year — with most going public in the internet sector. The enactment of the Gramm-Leach-Bliley Act (GLBA) in November 1999 effectively repealed the long-standing prohibitions on the mixing of banking with securities or insurance businesses under the Glass-Steagall Act and thus permitted “broad banking.” Since the barriers that separated banking from other financial activities had been crumbling for some time, GLBA is better viewed as ratifying, rather than revolutionizing, the practice of banking.
Views: 42 Finance Courses
Investment Banking at Commerzbank: Corporates & Markets Graduate Programme
 
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How is the Graduate Programme Corporates & Markets at the Commerzbank? Eva and Ann-Thea had been Graduates!
Views: 3743 CommerzbankCareer
Why do universal banks have a competitive advantage
 
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Universal banking is a system in which banks provide a wide variety of financial services, including commercial and investment services. Universal banking is common in some European countries, including Switzerland. In the United States, however, banks are required to separate their commercial and investment banking services. Proponents of universal banking argue that it helps banks better diversify risk. Detractors think dividing up banks' operations is a less risky strategy. Universal banks may offer credit, loans, deposits, asset management, investment advisory, payment processing, securities transactions, underwriting and financial analysis. While a universal banking system allows banks to offer a multitude of services, it does not require them to do so. Banks in a universal system may still choose to specialize in a subset of banking services. Universal banking combines the services of a commercial bank and an investment bank, providing all services from within one entity. The services can include deposit accounts, a variety of investment services and may even provide insurance services. Deposit accounts within a universal bank may include savings and checking. Under this system, banks can choose to participate in any or all of the permitted activities. They are expected to comply with all guidelines that govern or direct proper management of assets and transactions. Since not all institutions participate in the same activities, the regulations in play may vary from one institution to another. It is important not to confuse the term "universal bank" with any financial institutions with similar names.
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Glass, Act, split commercial, investment banks (CodyCross Crossword Answer)
 
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Glass, Act, split commercial, investment banks answer ► FULL CodyCross Cheat List: http://oozegames.com/codycross-answers/
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What is MERCHANT BANK? What does MERCHANT BANK mean? MERCHANT BANK meaning & explanation
 
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What is MERCHANT BANK? What does MERCHANT BANK mean? MERCHANT BANK meaning & explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A merchant bank is a financial institution providing capital to companies in the form of share ownership instead of loans. A merchant bank also provides advisory on corporate matters to the firms in which they invest. In the United Kingdom, the historical term "merchant bank" refers to an investment bank. Today, according to the U.S. Federal Deposit Insurance Corporation (FDIC), "the term merchant banking is generally understood to mean negotiated private equity investment by financial institutions in the unregistered securities of either privately or publicly held companies." Both commercial banks and investment banks may engage in merchant banking activities. Historically, merchant banks' original purpose was to facilitate and/or finance production and trade of commodities, hence the name "merchant". Few banks today restrict their activities to such a narrow scope. Merchant banks are in fact the original modern banks. These were invented in the Middle Ages by Italian grain merchants. As the Lombardy merchants and bankers grew in stature based on the strength of the Lombard plains cereal crops, many displaced Jews fleeing Spanish persecution were attracted to the trade. They brought with them ancient practices from the Middle and Far East silk routes. Originally intended for the finance of long trading journeys, these methods were applied to finance the production and trading of grain. In France during the 17th and 18th century, a merchant banker or marchand-banquier was not just considered a trader but also received the status of being an entrepreneur par excellence. Merchant banks in the United Kingdom came into existence in the early 19th century, the oldest being Barings Bank. The Jews could not hold land in Italy, so they entered the great trading piazzas and halls of Lombardy, alongside the local traders, and set up their benches to trade in crops. They had one great advantage over the locals. Christians were strictly forbidden the sin of usury, defined as lending at interest (Islam makes similar condemnations of usury). The Jewish newcomers, on the other hand, could lend to farmers against crops in the field, a high-risk loan at what would have been considered usurious rates by the Church; but the Jews were not subject to the Church's dictates. In this way they could secure the grain-sale rights against the eventual harvest. They then began to advance payment against the future delivery of grain shipped to distant ports. In both cases they made their profit from the present discount against the future price. This two-handed trade was time-consuming and soon there arose a class of merchants who were trading grain debt instead of grain. The Court Jew performed both financing (credit) and underwriting (insurance) functions. Financing took the form of a crop loan at the beginning of the growing season, which allowed a farmer to develop and manufacture (through seeding, growing, weeding, and harvesting) his annual crop. Underwriting in the form of a crop, or commodity, insurance guaranteed the delivery of the crop to its buyer, typically a merchant wholesaler. In addition, traders performed the merchant function by making arrangements to supply the buyer of the crop through alternative sources—grain stores or alternate markets, for instance—in the event of crop failure. He could also keep the farmer (or other commodity producer) in business during a drought or other crop failure, through the issuance of a crop (or commodity) insurance against the hazard of failure of his crop. Merchant banking progressed from financing trade on one's own behalf to settling trades for others and then to holding deposits for settlement of "billette" or notes written by the people who were still brokering the actual grain. And so the merchant's "benches" (bank is derived from the Italian for bench, banco, as in a counter) in the great grain markets became centers for holding money against a bill (billette, a note, a letter of formal exchange, later a bill of exchange and later still a cheque).
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What is RETAIL BANKING? What does RETAIL BANKING mean? RETAIL BANKING meaning & explanation
 
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What is RETAIL BANKING? What does RETAIL BANKING mean? RETAIL BANKING meaning - RETAIL BANKING definition - RETAIL BANKING explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. Retail banking also known as Consumer Banking is the provision of services by a bank to individual consumers, rather than to companies, corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards. The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking. It may also be used to refer to a division or department of a bank dealing with retail customers. In the US the term Commercial bank is used for a normal bank to distinguish it from an investment bank. After the great depression, through the Glass–Steagall Act, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital markets activities. This separation was repealed in the 1990s. Commercial bank can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the public (retail banking).
Views: 10441 The Audiopedia