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Michal Bodlák. Investment banking. Definition. An investment bank is a financial institution that assists: individuals, corporations and governments companies involved in mergers and acquisitions, Provide services: trading of derivatives, fixed income instruments,
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Michal Bodlák Investmentbanking
Definition • An investment bank is a financial institution that assists: • individuals, • corporations and governments • companies involved in mergers and acquisitions, • Provide services: • trading of derivatives, • fixed income instruments, • foreign exchange, • commodities, • equity securities • An investment bank can be split into private and public functions • the private areas of the bank deal with private insider information • the public areas such as stock analysis deal with public information
Ornanizational Structure • Front Office • Middle Office • Back Office
Front Office- Core Activities • Investment Banking • M&A; Raising fund; Advisory; Asset Finance; Equity; etc. • Industry Coverage Group • Product Coverage Group • Sales and Trading • SalesForce = Buying and Selling Products • Sales Desk = Pricing and Executing Trades • Research • Reports; Prospects; Assists to Trades; • Do Not Generate Revenue
Middle Office- Core Activities • Risk Management • Analyzing Market; Setting Limits; Market and Credit Risk • Treasury Management • Monitoring Risk Liquidity, Capital Structure • Financial Control • Analyzing Global Risk, Profitability; Product Control • Corporate Strategy
Back Office- Core Activities • Operations • Technology • GlobalTransaction Banking • Investment Management • Merchant Banking