investment banks
Post on 13-Mar-2016
41 Views
Preview:
DESCRIPTION
TRANSCRIPT
GROUP MEMBERSSIDRA ALEEMAILIA BATOOL
GHAZI REHMAN ZAID HASSAN
INVESTMENT BANKfinancial institution that assists or helps
corporations and governments to raise capital by underwriting and acting as the agent in the issuance of securities.
assists companies involved in mergers and acquisitions and derivatives
Investment banks do not take deposits.
Investment Banking Division Industry coverage groups: focus on a specific industry such as
Healthcare or Technology, and maintain relationships with corporations within the industry to bring in business for a bank.
Product coverage groups: focus on financial products, such as Mergers
& Acquisitions, Financial Sponsors, and Leveraged Finance.
SECURITIES UNDERWRITINGPrivate placement securities issue placed with one of a few
large institutional investors
Public placement may be underwritten on a best efforts or firm
commitment basis and offered to the public.
Cash Management
Securities firms and investment banks offer bank deposit-like cash management accounts (CMAs) to individual investors
Services offered by investment banks V/S Securities FirmsInvestment BanksService entities who wish to raise funds
through sales of debt and equity securities, including corporations or governments; services include
Originating, underwriting, and placing securities in money and capital markets
The wholesale side of the business
Securities FirmsServices involve assistance in the trading of
securities in the secondary markets (brokerage services or market making)
Purchase, sale, and brokerage of securities The retail side of the business
ORGANIZATIONAL STRUCTURES
MAIN ACTIVITIESInvestment banks offer services to both
corporations issuing securities and investors buying securities.
Investment bankers offer information on when and how to place their securities in the market for corporations.
It offers protection against unsafe securities for investors.
FRONT OFFICE Sales and trading
Large investment bank's primary function is buying and selling products.
Market making
In this trader will buy and sell financial products to get incremental amount of money on each trade.
Involves the creation of a secondary market in an asset by a securities firm or investment bank
FRONT OFFICE Research
This is the division which reviews companies and write reports about their prospects, often with “buy” or “sell” ratings.
Investment management
Professional management of various securities (shares, bonds, etc.) and other assets (e.g., real estate), to meet specified investment goals for the benefit of investors is investment management.
Merchant banking
It is a private equity activity of investment banks
Middle office1) Risk management
It analyzes the market and credit risk that traders are taking onto the balance sheet in conducting daily trades.
2) Corporate treasury
It is responsible for an investment bank’s capital structure management, funding and liquidity risk monitoring.
3) Financial control
It tracks and analyzes the capital flows of the firm.
Back office1)Operations
involves data-checking trades that have been conducted.
2) Technology
investment bank has considerable amounts of in-house software, created by the technology team, who are also responsible for technical support.
Technology has changed considerably in the last few years as more sales and trading desks are using electronic trading.
Investment banks in Pakistan
There are 35 banks listed on Karachi Stock Exchange (KSE), with a total paid-up capital of Rs. 10462.39 million.
Out of these 16 are investments banks with a paid-up capital of Rs. 3730.842 million,
13 are commercial banks having Rs. 6218.92 million as paid-up capital,
and the remaining 6 banks are engaged in the securities business with a paid-up capital of Rs. 512.628 million.
Investment banks in Pakistan
Under SECP investment banks are classified as Non-Banking Financial Companies (NBFCs) and are regulated by the NBFC (Establishment and Regulation) Rules of 2003 which provide an enhanced framework of operations for investment banks and have considerably widened their scope of business.
Investment banks
Atlas Investment Bank Limited Asset Investment Bank Limited Al-Towfeeq Investment Bank Limited Crescent Investment Bank Limited Escorts Investment Bank Limited Fidelity Investment Bank LimitedFirst International Investment Bank Limited, KarachiFranklin Investment Bank LimitedIslamic Investment Bank, Peshawar
top related