Last updated on March 26th, 2024 at 10:43 am
Conceptually speaking, global investment banking is an activity focused on obtaining and intermediating resources for the sale of companies, mergers, and acquisitions, issuing shares for the entry of new investors (traditionally carried out on stock exchanges), placing debt bonds in the market, or for the development of new companies or projects. In countries such as the United States, the United Kingdom, and those belonging to the European Union, investment banking has also been associated with the trading of securities in the capital markets.
Securities settlement systems (SSSs) are a fundamental component of the infrastructure of international financial markets. Over the last years, the volumes of trading and settlement have grown significantly as securities markets have developed to be an increasingly imperative channel for intermediating streams of resources between creditors and debtors, and because investors are being able to manage their portfolios of securities more dynamically, in part because of declining transaction costs. Cross-border trading and settlement volumes have grown particularly fast, reflecting the increasing integration of international markets.
Any disruption in securities settlement has the potential to spill over to any of the payment systems used by the SSS or to any payment system used by the SSS to transfer collateral.
In the securities markets themselves, market liquidity depends critically on confidence in the safety and reliability of settlement arrangements; traders may be unwilling to trade if they have significant doubts about whether the transaction will actually be settled.
Thus, in order for investment banking to be able to carry out its intermediation and resource management activity, it develops basic services and activities to identify the financial situation of the companies it supports. These activities are financial analysis and diagnosis, company valuation, and financial advisory services, the main one being the financial structuring of projects. These services are the same as those provided by financial consultancy firms.
In addition, some investment banking firms also specialize in the comprehensive development of the company's strategic process vis-à-vis third parties. For example, if a company wants to sell a shareholding, the investment banking firm prepares a booklet for the sale of these shares, indicating the details of the activities to be carried out by the interested agents in order to purchase the shares. This is the importance of reporting in investment banking.
Why an Investment Banking Career?
Global Investment Banking professionals are among the highest-paid in the world, but with this great reward comes enormous responsibility. To be able to work in this field, you need to have many competencies and skills in concepts like global securities settlements and good reporting practices. In fact, the investment banking sector will deal with responsibilities such as the financing of companies through debt or equity, as you will decide things like whether to buy or sell companies or parts of it, risk hedging, or joint ventures.
Why Imarticus for investment banking courses in India?
In Imarticus we offer CIBOP Certified Investment Banking Operations Professional courses in India for everyone that needs to start from the basics of an Investment Banking Career. Visit our site today to start a career in global investment banking operations, and learn more about the importance of well understanding global securities settlements and reporting techniques in this field.
Conclusion
To succeed in an Investment Banking Career, professionals must acquire and demonstrate a multidisciplinary profile with extensive financial knowledge. Concepts and skills such as global securities settlements and reporting must be well mastered. At Imarticus, we offer you the possibility to take online investment banking courses in India. Enroll today and start your Investment Banking Career.
