It was not until 1999 that the American Financial Services Act allowed bank holding companies to engage in securities underwriting, trading, mutual fund business and insurance business without restrictions. Therefore, most investment banks with financial holding relationships are behind banking giants. The profitable business of investment banks mainly has two aspects:
I. For-profit business:
1. Primary market maker-securities underwriting business, such as corporate IPO.
2 secondary market matching-including self-operated and brokerage business.
3. Trading with own funds-including speculation and arbitrage.
4. Corporate restructuring-including expansion/reduction of scale, ownership and control, etc.
5. Financial engineering
6. Other profitable businesses-including consulting, investment management, commercial banking, venture capital, consulting business, etc.
Support services: including market research, clearing services, information services, etc.
Three systems of international investment banks:
1. American investment banks, such as Merrill Lynch, Goldman Sachs and Morgan Stanley, are the so-called Big Three Wall Street Securities.
2. British commercial banks and European comprehensive banks
3. Japan's comprehensive securities companies-such as Nomura, Daiwa, Ritian, etc.
As early as the 1920s and 1930s, with the development of the capital market, western investment banks were punished. Up to now, the investment banks ranked in the top 10 according to the total amount of financing in the stock market are always oligarchs with assets of hundreds of billions of dollars.
As for Dublin, there are nearly 60 foreign investment banks (Citigroup, Merrill Lynch, JPMorgan Chase, Zurich Bank and Bear Stearns), including Irish investment banks. In addition, more than 30 European and American investment banks have set up branches in other parts of Europe (including HSBC and KBC). However, due to the small scale of Dublin securities market, investment banks have relatively little room for IPO and self-management. Therefore, the Financial Times and CNBC Europe both "ignored" the Dublin stock market. But for our students who are keen on investment banking, it is a good place to "train" and accumulate practical experience (Ireland is also short of talents in this field).
China's investment industry started late. The Shanghai stock market was born in 1990, and it was not until 1995 that the first investment bank with an international model-China International Finance Corporation (a subsidiary of China Construction Bank listed in Hong Kong) was born. 1998, the first real joint venture investment bank appeared-ICBC East Asia (ICBC and the largest private independent bank in Hong Kong "Bank of East Asia" jointly acquired the business of NatWest Securities, an old British investment bank, in the Asia-Pacific region); In 2002, Bank of China invested heavily in listing BOC International Securities Company in Hong Kong. The main business of these three investment banks is only the IPO of domestic enterprises listed on the main board and growth enterprise market in Hong Kong. If domestic enterprises want to go public in London or new york, they need to rely on foreign investment banks as "market makers" for the time being.
With the economic growth of China, foreign investment banks are optimistic about the unopened capital market. At present, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission have strict requirements for foreign capital to enter the capital market and are cautious. Therefore, the way for foreign investment banks to enter the capital market is limited to direct investment through QFII, monopolizing China enterprises' overseas listing business and joint ventures. However, it is obvious that they are eager to recruit people. Because this door will always be open, which is both a challenge and an opportunity.
Question 2: What is an investment bank? First of all, there is a small premise concept: investment banks are not commercial banks that we usually engage in deposit and loan business. Commercial banks cannot engage in investment banking business; Investment banks also do not engage in the deposit and loan business of individuals/enterprises.
It was not until 1999 that the American Financial Services Act allowed bank holding companies to engage in securities underwriting, trading, mutual fund business and insurance business without restrictions. Therefore, most investment banks with financial holding relationships are behind banking giants. The profitable business of investment banks mainly has two aspects:
I. For-profit business:
1. Primary market maker-securities underwriting business, such as corporate IPO.
2 secondary market matching-including self-operated and brokerage business.
3. Trading with own funds-including speculation and arbitrage.
4. Corporate restructuring-including expansion/reduction of scale, ownership and control, etc.
5. Financial engineering
6. Other profitable businesses-including consulting, investment management, commercial banking, venture capital, consulting business, etc.
Support services: including market research, clearing services, information services, etc.
Three systems of international investment banks:
1. American investment banks, such as Merrill Lynch, Goldman Sachs and Morgan Stanley, are the so-called Big Three Wall Street Securities.
2. British commercial banks and European comprehensive banks
3. Japan's comprehensive securities companies-such as Nomura, Daiwa, Ritian, etc.
As early as 1920s-1930s, with the development of capital market, western investment banks had begun to take shape. Up to now, the investment banks ranked in the top 10 according to the total amount of financing in the stock market are always oligarchs with assets of hundreds of billions of dollars.
As for Dublin, there are nearly 60 foreign investment banks (Citigroup, Merrill Lynch, JPMorgan Chase, Zurich Bank and Bear Stearns), including Irish investment banks. In addition, more than 30 European and American investment banks have set up branches in other parts of Europe (including HSBC and KBC). However, due to the small scale of Dublin securities market, investment banks have relatively little room for IPO and self-management. Therefore, both FinancialTimes and CNBC Europe have "ignored" the Dublin stock market. But for our students who are keen on investment banking, it is a good place to "train" and accumulate practical experience (Ireland is also short of talents in this field).
China's investment industry started late. The Shanghai stock market was born in 1990, and it was not until 1995 that the first investment bank with an international model-China International Finance Corporation (a subsidiary of China Construction Bank listed in Hong Kong) was born. 1998, the first real joint venture investment bank appeared-ICBC East Asia (ICBC and the largest private independent bank in Hong Kong "Bank of East Asia" jointly acquired the business of NatWestSecurities, an old British investment bank, in the Asia-Pacific region); In 2002, Bank of China invested heavily in listing BOC International Securities Company in Hong Kong. The main business of these three investment banks is only the IPO of domestic enterprises listed on the main board and growth enterprise market in Hong Kong. If domestic enterprises want to go public in London or new york, they need to rely on foreign investment banks as "market makers" for the time being.
With the economic growth of China, foreign investment banks are optimistic about the unopened capital market. At present, China Banking Regulatory Commission, China Securities Regulatory Commission and China Insurance Regulatory Commission have strict requirements for foreign capital to enter the capital market and are cautious. Therefore, the way for foreign investment banks to enter the capital market is limited to direct investment through QFII, monopolizing China enterprises' overseas listing business and joint ventures. However, it is obvious that they are eager to recruit people. Because this door will always be open, which is both a challenge and an opportunity.
Question 3: What (1) securities underwriting does investment banking mainly include? Securities underwriting is the most primitive and basic business activity of investment banks. Investment bank underwriting has a wide scope of authority, including bonds issued by domestic central and local institutions, stocks and bonds issued by enterprises, securities issued by foreign companies and companies at home and abroad, and securities issued by international financial institutions. In the process of underwriting, investment banks generally have to weigh whether to form an underwriting syndicate and choose the underwriting method according to the underwriting amount and risk. There are four common underwriting methods: the first one: underwriting. This means that the lead underwriter and its underwriting syndicate members agree to buy all the issued securities at the agreed price and then sell them to their customers. At this time, the issuer does not bear the risk, and the risk is passed on to the investment bank. The second type: bidding acquisition. Usually when investment banks are in strong passive competition. Securities issued in this way are usually high-credit bonds and are welcomed by investors. The third type: consignment. This is usually because investment banks believe that securities have low credit rating and high underwriting risk. At this time, the investment bank only accepts the entrustment of the issuer to sell securities on its behalf. If all the securities issued within the prescribed time limit plan are not sold, the remaining part shall be returned to the securities issuer, and the issuer shall bear the risk of issuance. The fourth type: sponsorship and promotion. When an issuing company increases its capital and shares, the main target is the existing shareholders, but there is no guarantee that all existing shareholders will subscribe for its securities. In order to prevent it from being difficult to raise the required funds in time, and even lead to the company's share price falling, the issuing company will generally entrust the investment bank to issue new shares to the existing shareholders, thus transferring the risk to the investment bank. (2) Securities brokerage transactions. Investment banks play a triple role as market makers, brokers and traders in the secondary market. As a market maker, after underwriting securities, investment banks have the obligation to create a secondary market with strong liquidity for the securities and maintain the stability of market prices. As brokers, investment banks trade on behalf of buyers or sellers and on behalf of prices provided by customers. As dealers, investment banks need to buy and sell securities by themselves, because they are entrusted by customers to manage a large number of assets, and they must ensure the preservation and appreciation of these assets. In addition, investment banks also conduct risk-free arbitrage and risk arbitrage in the secondary market. (3) Private placement of securities. There are two ways to issue securities: public offering and private offering. The former underwriting is actually a public offering. Private placement, also known as private placement, means that issuers do not sell securities to the public, but only to a limited number of institutional investors, such as insurance companies and mutual funds. Private placement is not restricted by public offering laws and regulations, which can not only save issuing time and cost, but also bring higher yield to investment banks and investors than trading securities with the same structure in the open market. Therefore, in recent years, the scale of private placement is still expanding. But at the same time, private placement also has some shortcomings, such as poor liquidity, narrow distribution area, and difficulty in public listing to expand corporate visibility. (4) mergers and acquisitions. Merger and acquisition has become the most important business component of modern investment banks except securities underwriting and brokerage business. Investment banks can participate in M&A activities of enterprises in various ways, such as: finding M&A goals, providing suggestions for hunter companies and prey companies on price or non-price terms, helping hunter companies to make M&A plans or helping prey companies to make anti-takeover plans against hostile takeovers, and helping to arrange financing and bridge loan. In addition, M&A often includes the issuance of "junk bonds", corporate restructuring and asset restructuring. (5) Project financing. Project financing is a technical means of package financing for a specific economic unit or project planning. The borrower can only rely on the cash flow and income of the economic unit as the source of repayment and the assets of the economic unit as the loan guarantee. Investment banks play a very important role in project financing. They will closely link the institutions, financial institutions, investors and project sponsors related to the project, coordinate lawyers, accountants and engineers to jointly carry out the feasibility study of the project, and then organize the financing needed for project investment through issuing bonds, funds, stocks or loans, auctions and mortgages. The main tasks of investment banks in project financing are: project evaluation, financing scheme design, drafting of relevant legal documents, relevant credit rating, securities price determination and underwriting. (6) corporate finance. Corporate finance is actually the financial consultant or management of the investment bank as a customer. & gt
Question 4: What does an investment bank mean? Investment bank, the full name is investment bank. It is easy to understand this problem from English.
The English name of investment bank is investment bank, which is a concept corresponding to commercial bank.
Commercial banks realize the financing needs of individuals, enterprises and other financing parties through indirect financing. That is, depositors deposit money in commercial banks, and banks use the money to make loans or investments to earn spreads. This is a commercial bank. (For example, the four major state-owned banks, Shanghai Pudong Development Bank, China Merchants Bank and China Guangfa Bank ... these are all commercial banks)
Investment bank is to realize the direct financing and merger and acquisition services of enterprises. Investment banking is mainly divided into three parts: 1. Stock underwriting and sponsorship (including initial public offering, public offering, private offering and convertible bond underwriting and sponsorship); 2. Bond underwriting (underwriting corporate bonds, corporate bonds, private debt of small and medium-sized enterprises ...); 3. Merger and acquisition of financial advisory business. The first two are to realize the direct connection between investors and financiers, and investment bankers only play the role of capital intermediaries (similar to matchmakers, which can be said to be vulgar ...). Financial advisers in mergers and acquisitions are also an important part of investment banks.
You can ask again if you don't know.
Supplement: Now commercial banks are also engaged in the issuance of corporate bonds, which is also regarded as investment banking business. China may further develop into a mixed operation mode in the future.
Question 5: What does an investment bank do? Similar to a broker. Do securities underwriting of listed companies, as well as mergers and acquisitions of listed companies. Of course, the requirements are high. Goldman Sachs Damodar Road area basically only recruits famous schools, and those who can enter China are generally undergraduate engineering students, graduate students in finance, graduated from famous schools, mainly boys, and in good health.
Question 6: What is an investment bank? Investment bank is the abbreviation of investment bank. Investment Banks Investment banks are non-bank financial institutions mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, merger and acquisition, investment analysis, venture capital, project financing and other businesses, and are the main financial intermediaries in the capital market. Investment bank is the product of the development of securities and joint-stock company system at a specific stage, and it is an important subject of developed securities market and mature financial system. In the development of modern social economy, it plays an important role in communicating the supply and demand of funds, building a securities market, promoting enterprise mergers and acquisitions, promoting industrial concentration and economies of scale, and optimizing resource allocation. Due to the rapid development of investment banks, it is very difficult to define investment banks. Investment bank is the name of the United States and continental Europe, Britain is called merchant bank, and Japan is called securities company. There are four main definitions of investment banks in the world: the first one: any financial institution engaged in Wall Street financial business can be called an investment bank. Second, only financial institutions that operate part or all of the capital market business are investment banks. The third type: financial institutions engaged in securities underwriting and corporate mergers and acquisitions are called investment banks. Fourth, financial institutions that only underwrite securities in the primary market and trade securities in the secondary market are called investment banks. The difference between investment bank and general commercial bank Investment bank is a concept corresponding to commercial bank, and it is a new industry formed by modern financial industry to adapt to the development of modern economy. The distinctive features that distinguish it from other related industries are as follows: firstly, it belongs to the financial service industry, which is the symbol that distinguishes general consulting from intermediary service industry; Second, it mainly serves the capital market, which is a sign that distinguishes commercial banks; Third, it is an intelligence-intensive industry, which is different from other professional financial services institutions. Types of investment banks At present, there are four main types of investment banks in the world: (1) independent professional investment banks. This form of investment bank exists widely all over the world, such as Goldman Sachs, Merrill Lynch, salomon brothers, Morgan? Stanley Company, First Boston Company, Nomura Securities, Daiwa Securities, Nikko Securities, Yi Shan Securities, Warburg Company and Baoyuan Company are all investment banks owned by commercial banks. This form of investment bank is mainly for commercial banks to engage in commercial banking and investment banking business through mergers, acquisitions, equity participation or the establishment of their own subsidiaries. This form of investment bank is very typical in Britain, Germany and other countries. (3) Universal banks are directly engaged in investment banking. Such investment banks are mainly located in continental Europe. They are engaged in general commercial banking and investment banking. (4) Financial companies established by some large multinational companies. Organizational form of investment banks Generally speaking, the organizational structure adopted by investment banks is closely related to their internal formation methods and management ideas. Modern investment banks have three main organizational structures. (1) partnership system. A partner company refers to an organizational form in which two or more partners own the company and share its profits. Partners are the owners or shareholders of the company. Its main features are: the partner * * * enjoys the operating income of the enterprise and bears unlimited responsibility for the operating loss * * *; It can be run by all partners * * *, or by some partners, and the other partners only contribute and are responsible for their own profits and losses; The composition of partners can be large or small. (2) Mixed company system. A mixed company is usually a larger capital or company formed by the merger of functionally unrelated capitals or companies. After 1960s, in the process of diversified production and operation of large companies, investment banks are the important targets of being acquired or merged into mixed companies. The main motivation of these M&A activities is to expand the business scale of the parent company. In this process, investment banks gradually began to change from partner system to modern company system. (3) Modern company system. The modern company system endows the company with independent personality, and its establishment is based on the property rights of enterprise legal persons as the core and important symbol. Legal person property right is the right that an enterprise legal person enjoys over all enterprise property, including investment and investment appreciation. The existence of corporate property rights shows that the rights of corporate bodies are no longer manifested as individual rights. Modern company system makes investment banks have incomparable advantages in fund raising, financial risk control and management modernization compared with traditional partner system.
Question 7: What is an investment bank? There are many businesses of international investment banks, not just the concept of domestic' brokers'. You may be familiar with IPO: listing, issuing stocks, buying and selling stocks, etc. But you may not know, turbines, swaps, junk bond trading, CDS trading, CDO and so on. Even investment banks have their own private placements, including VC. Goldman Sachs first passed on investment in raising pigs as an example. Therefore, the business of investment banks is very extensive.
Question 8: What's the difference between a securities company and an investment bank? There is no accurate definition of investment bank, but the general investment bank mainly engages in securities market business, does not operate traditional commercial banking business, and does not directly carry out business for individual residents. Underwriting of securities and funds, initial public offering of venture enterprises, re-issuance of enterprises, participation in merger planning, etc. It is a common investment banking business. In China, an investment bank is a securities company, which is what Song said in Investment Banking. This book is very good and helpful for understanding investment banks.
Securities companies and investment banks do overlap, but securities companies also have other brokerage services and IB services. This is not available in investment banks.
Question 9: What exactly does an investment bank do? What jobs are there? Investment banks are non-bank financial institutions mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses, and are the main financial intermediaries in the capital market.
As for the positions of investment banks, they are generally divided into two categories, one is called project contracting and the other is called project undertaking. Project contracting is the capital market department. On the one hand, they are responsible for finding projects and funds, on the other hand, they are responsible for communicating with the project parties and funders. The project undertaking is detailed, including M&A department, IPO department and research department. , mainly responsible for completing the projects brought by the capital market department.
I am currently engaged in industry analysis in a fund company and have a better understanding of investment banking. If you want to know anything, you can continue to ask, hoping to help you.
Question 10: What are the investment banking positions? Hello, classmate, I'm glad to answer your question!
According to the scale and business coverage of investment banks, investment banks are divided into protruding brackets (large investment banks) and boutique banks (boutique investment banks). The former includes Goldman Sachs, Morgan Stanley and Bank of America Merrill Lynch. In addition to the traditional investment banking business, it will do some other work. For example, these companies will have departments specializing in securities trading (capital market) and will also provide seller research and asset management for institutions/individuals. The latter are generally small in scale, or focus on certain financial products, or focus on certain industries, or focus on certain businesses, or focus on certain markets, or have a complete platform but a relatively small scale.
From the perspective of position departments and functions, foreign investment banks are generally divided into IBD, sales &; Trading, research, private banking, quantitative and other support departments.
IBD
The core business of an investment bank includes launching an IPO, issuing additional shares or merging & Acquisition (M & ampa) provides services for companies that need to raise funds through listing. These are the core and traditional projects of investment banks, which is called the investment banking department, or IBD for short.
Generally speaking, IBD is divided into product group and industry/department group. Product groups are mainly divided into mergers (M & amp； A), leveraged financing (lev fin) and reorganization (registration). People working in this group need to have certain product knowledge and be the executors of various transactions. In the industry group, we need to cover all kinds of specific industries, and our work is more about marketing. Industry sectors, such as FIG (Financial Institutions Group), TMT (Telecommunications, Media and Technology) and real estate.
The industry coverage group will focus on specific industries, such as health care and technology, and keep in touch with companies in this industry in order to bring business to their banks. The product coverage group mainly focuses on financial products, such as mergers and acquisitions; A, leveraged finance, equity, high-grade debt, etc. They will cooperate with industrial groups to meet the special needs of customers.
From the position level, IBD departments are divided into YST, associates, VP (Vice President), Director and MD (Managing Director).
There are three points to note here: 1, analysts are junior positions in IBD, and some research analysts are senior positions. 2. For the convenience of business, some foreign investment banks adopt two sets of professional titles in front and back office, and some investment banks will set different professional titles, which means that a VP you know is not necessarily a real VP. 3. The highest position of Goldman Sachs has a partner management director in MD.
analyst
Analysts in investment banks are generally two-year programs for freshmen in major universities, and their specific work includes:
Research work: basically discovering and >>