Many governments, companies, and institutions raise capital for various needs including buying new equipment, establishing new companies, meeting social obligations, etc. They need a reliable source of funding at reduced interest rates for short-term and long-term needs.
Services of Investment banks
The financial services Industry’s arm – Investment Banking assists governments, institutions, businesses, and companies in mobilizing the capital through IPOs, etc. It also undertakes acquisitions and mergers. Other services offered by investment banks include trading of equities, commodities, currencies, and fixed income.
Investment banking’s functions
Investment banking conducts its operations through the front office, back office, and middle office. The front office division focuses on revenue generation through sales, trading, corporate finance, and research. The processes related to revenue generation like treasury and risk management are handled by the middle office. The roles of the back office include HR, IT (Information Technology), accounting, and compliance. Joseph Stone Capital will help you in managing all these tasks.
High achieving and competitive persons with higher qualifications in finance, accounting, and investment can look for lucrative jobs in the front office roles. Those having exposure to mergers and acquisitions and raising capital can find jobs in corporate finance. They will also help in the restructuring of the organizations.
Investment banking is further classified into Industry Groups and Product Groups. Debt issuance or equity issuance and acquisitions are assigned to the product group. Some of the product groups include Leveraged Finance, Debt Capital Markets, Mergers and Acquisitions, Restructuring, and Equity Capital Markets.
Industry Groups mainly work with independent or individual companies. Some of the Industry Groups include Public Finance, Financial Sponsors Group, Financial Institutions Group, Consumer Retail, Sports, Real Estate, Renewable Energy, Oil and Gas, Power and Utilities, Food and Beverage, Digital Media, Transportation, Chemicals, ‘Technology, Media and Telecom’, Metals and Mining, Maritime and Shipping, and Business Services.
Helps in securities transactions
Investment Banks’ S&T (Sales and Trading Group) assists IICs (Institutional Investor clients) asset management firms and hedge funds in the purchase and sale of securities like bonds, options, and stocks. These IICs make money for their clients such as LPs (Limited Partners) including insurance firms, endowments, pension funds, and wealthy individuals by trading securities. These transactions are mostly large orders and expect to disrupt the market. Therefore, traders at the banks and salespeople need to place orders in small lots to prevent market highs or lows in intraday trading.
The S&T Group is further classified into Fixed Income Trading and Equity Trading. The Equity Trading Segment focuses on derivatives and stocks whereas Fixed Income Trading deals with corporate bonds, municipal bonds, money markets, commodities, FX, and CDS.
The research division circulates research reports after analyzing the company prospects and gives sell, buy, or hold recommendations to the clients. Investment Banks can get more orders from IIs (Institutional Investors) using these research reports and attract more trading volume. It may also issue a favorable buy recommendation if the company’s prospects are good. According to the recent regulations, the clients will also pay for the research reports. You can also approach Joseph Stone Capital for buy and sell recommendations of stocks, derivatives, etc.