Investment Banking

14,000,000 Leading Edge Experts on the ideXlab platform

Scan Science and Technology

Contact Leading Edge Experts & Companies

Scan Science and Technology

Contact Leading Edge Experts & Companies

The Experts below are selected from a list of 33930 Experts worldwide ranked by ideXlab platform

Mitchellfrom - One of the best experts on this subject based on the ideXlab platform.

Adele Barsh - One of the best experts on this subject based on the ideXlab platform.

David P. Stowell - One of the best experts on this subject based on the ideXlab platform.

  • Chapter 1 – Overview of Investment Banking
    Investment Banks Hedge Funds and Private Equity, 2018
    Co-Authors: David P. Stowell
    Abstract:

    Investment Banking changed dramatically during the 20-year period preceding the global financial crisis, as market forces pushed banks from their traditional low-risk role of advising and intermediating to a position of taking considerable risk for their own account and on behalf of clients. These activities exposed the industry to significant shocks during the financial crisis. As a result, the Investment Banking landscape looks very different today than it did prior to 2007. A few notable developments include Goldman Sachs and Morgan Stanley’s conversion to bank holding companies, JPMorgan Chase’s acquisition of Bear Stearns, Lehman Brothers’ bankruptcy filing, and Merrill Lynch's sale to Bank of America. This chapter examines the postfinancial crisis Investment Banking industry, focusing on the key businesses and roles of Investment Banking firms.

  • chapter 1 overview of Investment Banking
    Investment Banks Hedge Funds and Private Equity (Third Edition), 2018
    Co-Authors: David P. Stowell
    Abstract:

    Investment Banking changed dramatically during the 20-year period preceding the global financial crisis, as market forces pushed banks from their traditional low-risk role of advising and intermediating to a position of taking considerable risk for their own account and on behalf of clients. These activities exposed the industry to significant shocks during the financial crisis. As a result, the Investment Banking landscape looks very different today than it did prior to 2007. A few notable developments include Goldman Sachs and Morgan Stanley’s conversion to bank holding companies, JPMorgan Chase’s acquisition of Bear Stearns, Lehman Brothers’ bankruptcy filing, and Merrill Lynch's sale to Bank of America. This chapter examines the postfinancial crisis Investment Banking industry, focusing on the key businesses and roles of Investment Banking firms.

  • Chapter 10 – Investment Banking Careers, Opportunities, and Issues
    Investment Banks Hedge Funds and Private Equity, 2018
    Co-Authors: David P. Stowell
    Abstract:

    This chapter focuses on the various career paths within Investment Banking, as well as the opportunities and challenges facing the industry going forward. The author concludes that there will be reduced appetite for risk and leverage in the Investment Banking industry. This may lead to lower returns on equity, unless firms can make technological progress in driving costs down, more fully capture share-of-wallet opportunities with clients, and create new sources of revenue. Historically, the industry has been remarkably resourceful in reinventing itself and driving earnings through new products and services. In spite of tighter regulations, including greater control over balance sheets and compensation practices, as the global economy improves, the industry should be able to continue creating value for clients and good returns on invested capital.

  • Investment Banking Careers, Opportunities, and Issues
    Investment Banks Hedge Funds and Private Equity, 2013
    Co-Authors: David P. Stowell
    Abstract:

    This chapter focuses on the various career paths within Investment Banking, as well as the opportunities and challenges facing the industry going forward. The author concludes that there will be reduced appetite for risk and leverage in the Investment Banking industry. This may lead to lower returns on equity, unless firms can make technological progress in driving costs down, more fully capture share-of-wallet opportunities with clients, and create new sources of revenue. Historically, the industry has been remarkably resourceful in reinventing itself and driving earnings through new products and services. In spite of tighter regulations, including greater control over balance sheets and compensation practices, as the global economy improves, the industry should be able to continue creating value for clients and good returns on invested capital.

  • Overview of Investment Banking
    An Introduction to Investment Banks Hedge Funds and Private Equity, 2010
    Co-Authors: David P. Stowell
    Abstract:

    Investment Banking changed dramatically during the 20-year period preceding the global financial crisis that started in mid-2007 as market forces pushed banks from their traditional low-risk role of advising and intermediating to a position of taking considerable risk for their own account and on behalf of clients. This high level of risk-taking, combined with high leverage, transformed the industry during 2008, when several major firms failed, huge trading losses were recorded, and many firms were forced to reorganize their business. Although each Investment bank takes a somewhat different approach, the principal businesses of most large Investment banks include: an Investment Banking business managed by the Investment Banking Division, which focuses on capital raising and MA sales and trading business managed by the Trading Division, which provides investing, intermediating, and risk-management services to institutional investor clients, performs research, and also participates in nonclient-related investing activities; and asset management business managed by the Asset Management Division, which is responsible for managing money for individual and institutional investing clients.

Nemanja Radic - One of the best experts on this subject based on the ideXlab platform.

  • competition and risk taking in Investment Banking
    Financial Markets Institutions and Instruments, 2019
    Co-Authors: Marta Deglinnocenti, Franco Fiordelisi, Claudia Girardone, Nemanja Radic
    Abstract:

    How does competition affect the Investment Banking business and the risks individual institutions are exposed to? Using a large sample of Investment banks operating in seven developed economies over 1997-2014, we apply a panel VAR model to examine the relationships between competition and risk without assuming any a priori restrictions. Our main finding is that Investment banks’ higher risk exposure, measured as a long-term capital-at-risk and return volatility, was facilitated by greater competitive pressures especially for full service Investment banks but also for boutique Investment banks. Overall, we find some evidence that more competition leads to more fragility before and during the recent financial crisis.

  • Competition and Risk in Investment Banking
    2011
    Co-Authors: Nemanja Radic, Franco Fiordelisi, Claudia Girardone
    Abstract:

    The recent financial crisis has shown that the stability of the Investment Banking industry plays a key role for the soundness of the financial system as a whole. Do high competition and/or cost inefficiencies increase Investment banks’ insolvency (and capital) risks? Or, conversely, do Investment banks’ insolvency risk and capitalization levels lead to higher price competition and/or lower cost efficiencies? Using a large sample of Investment banks in ten large developed countries over 2000-2008, we show that price competition is rather limited in Investment Banking worldwide. Although Investment banks’ stability was granted by relatively low competitive pressures, banks appeared prone to take more risk thus giving some support to the competition-stability view for the Investment Banking industry.

  • Price Competition, Efficiency and Riskiness in Investment Banking
    SSRN Electronic Journal, 2011
    Co-Authors: Franco Fiordelisi, Claudia Girardone, Nemanja Radic
    Abstract:

    The recent financial crisis has shown that the stability of the Investment Banking industry plays a key role for the soundness of the financial system as a whole. Our paper examines the intertemporal relationships between price competition, cost efficiency and riskiness for a sample of Investment banks inten large developed countries over 2000-2008.We show that price competition is rather limited in Investment Banking worldwide thus implying the existence of colluding oligopolies.We also find that although Investment banks’ stability was granted by relatively low competitive pressures, banks appeared prone to take more risk thus giving some support to the competition-stability view for the Investment Banking industry.

  • Efficiency and Environmental Factors in Investment Banking
    New Issues in Financial Institutions Management, 2010
    Co-Authors: Nemanja Radic, Claudia Girardone, Franco Fiordelisi
    Abstract:

    In the “Great Moderation” era, the Investment Banking industry in all advanced economies has benefited from the processes of liberalization, internationalization and consolidation activities. An increasing number of financial institutions have been involved in cross-border activities and in providing Banking services globally. Investment banks’ main business is to intermediate between issuers and investors through the functions of M&A advisory services and underwriting of securities issues. They also provide trading and Investment in securities and asset management.

Yogesh - One of the best experts on this subject based on the ideXlab platform.

  • A Study on Investment Banking Practices in India
    International Journal of Research, 2018
    Co-Authors: Yogesh
    Abstract:

    : An Investment bank is typically a private company that provides various finance-related and other services to individuals, corporations, and governments such as raising financial capital by underwriting or acting as the client's agent in the issuance of securities. 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 the passage of Glass–Steagall Act in 1933 until its repeal in 1999 by the 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 some institutional separation of Investment Banking services from commercial Banking. All Investment Banking activity is classed as either "sell side" or "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 that buy 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 a Chinese wall separating 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.

Related terms

Investment Banking - 15 days free trial to Access Experts & Abstracts