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 给自己扫盲：Investment Banking（ZT） |
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pirate
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头衔: 海归准将
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加入时间: 2004/02/22
文章: 757
海归分: 142915
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作者：pirate 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com
Investment Banking
Overview
Investment Banks are financial intermediaries who, much like commercial banks, have a principal purpose of bringing borrowers and lenders together. However, where commercial banks borrow money from individuals in the form of savings and chequing deposits to lend to other individuals and businesses, investment banks help lenders invest directly in the business of the borrowers. I-banks, as they are known, issue securities on behalf of companies and governments, trade securities in the primary and secondary markets on behalf of individual and institutional investors, manage portfolios for clients, and provide other financial advice and support services. Investment banks also engage in a lot of proprietary activities in the financial markets – activities where they are their own clients. Investment banks can be classified mainly into three groupings:
* Full-Service
These are large institutions who provide a complete set of services to their clients with top expertise in most areas, and who operate on a global basis. The leading full-service investment banks include Goldman Sachs, Merrill Lynch, Morgan Stanley Dean Witter, Deutsche Bank, Salomon Smith Barney (a division of Citigroup), CS First Boston, Donaldson Lufkin & Jenrette, Lehman Brothers, Bear Stearns, along with others. In Canada, the top investment banks are mainly divisions of parent commercial banks such as Nesbitt Burns (division of Bank of Montreal), Dominion Securities (division of Royal Bank), TD Securities (Toronto Dominion Bank), Wood Gundy (CIBC), and Scotia McLeod (Scotiabank). Merrill Lynch made a strong move into Canada in 1998 with the takeover of the smaller investment bank, Midland Walwyn. As regulation loosens in Canada, the full service banks in the U.S., Europe and Asia may increase their Canadian presence, diminishing the role that the Canadian firms play in the industry.
* Regionals
Regional investment banks differ from full-service banks in exactly the manner in which their name implies – their operations are concentrated in a particular region. The recent explosion of technology firms in the western U.S., far away from Wall Street and the main offices of full-service I-banks, has led to a growth in regional I-banks in San Francisco and other cities on the west coast.
* Boutiques
Boutiques are much smaller firms who specialize in a particular product or industry. Products can include M&A advisory, program trading, or arbitrage. Enron is an example of one of the larger boutiques that specializes in the oil industry in particular. Boutiques are often started by successful bankers who leave the larger firms with their extensive networks for the prestige and money associated with their own firm.
During most of the 1990s, the investment banking business has enjoyed tremendous prosperity, linked very closely to the longest bull market in history. As the stock prices have grown much faster and longer than ever, with financial news receiving increasing press coverage, the amount of activity in the financial services industry has grown as well. Financial innovations such as mutual funds have been very popular, leading to increased revenues for the brokerage arms of investment banks that execute the trades in the market. Simultaneously, more and more firms have looked to the public equity markets to raise capital, leading to increased underwriting activity. The increase in valuation multiples have made stocks extremely attractive, so that more firms are able to execute large merger and takeover transactions using their company’s stock as currency. This has led to huge increases in the mergers and acquisitions departments (M&A) of the investment banks who provide advisory services to firms looking to consolidate. The consolidation phenomenon has also hit the investment banking industry, with the pairing of Salomon Brothers and Smith Barney, and Morgan Stanley with Dean Witter, and Credit Suisse with First Boston. This wave of mergers between the big boys has allowed the big firms to become even more dominant in their field.
However, it has not all been a bed of roses. Especially over the last year or so, investment banks have been under greater pressure by global economic events, as well as with increased competition from the new Internet industry. As the Asian crisis sent global financial markets in turmoil, a lot of the big banks took losses in their proprietary trading accounts, while trading volumes fell as investors took their money out of the stock market. M&A activity slowed, and many new security issues were postponed in unfavourable market conditions. Upon the heels of the Asian crisis came more trouble from Latin America and Russia, compounding the problem to the extent that the U.S. Federal Reserve had to lower interest rates in the fall of 1998 to restore liquidity and calm into the markets. Simultaneously, new companies in Cyber Space, such as E-Trade and Ameritrade have cut into margins for traditional brokerages, while also stealing business from them. More and more on-line investment banks are appearing, offering complete services to compete with the older full service banks. This trend is likely to continue, putting an increasing amount of pressure on the I-banks to consider more mergers to stay competitive in this evolving, and highly lucrative industry.
作者：pirate 在 海归商务 发贴, 来自【海归网】 http://www.haiguinet.com
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 给自己扫盲：Investment Banking（ZT） -- pirate - (5409 Byte) 2004-7-23 周五, 21:29 (1132 reads)
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