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Tag: Investment Banking

How an Investment Banker Views the Market for Logistics and Supply-Chain Tech?

Posted on by Imarticus Learning

An Investment banker helps his/her clients in raising capital, managing equity/debt. The market of logistics and supply chain management is witnessing a hike due to new technological advancements. Companies are providing solutions for supply chain management through software. The age of digitization of processes is creating a huge capital in logistics and supply chain management (SCM). An Investment banker course advises his/her clients for decision making.

Logistics defines the movement of services, information, goods, etc. in and out of a company/firm. SCM is said to be the new logistics in the current era. Now, logistics is widely considered as a subprocess of SCM. SCM is a way to manage the transportation of services from the producer to the consumer. It helps in creating strong business models.

Let us see how the logistics and Supply chain technology market is important for investment bankers.

Opportunities for an Investment Banker in the market for Logistics and Supply-Chain Technology

Digitization of logistics and supply chain with the help of technology has helped companies/firms to create a good distribution model and enhanced customer service. It helps in driving business processes with ease. Technology has helped in generating shopping patterns of customers and managing the supply chain with increased accuracy and speed. The traditional methods of supply chain management are being replaced with supply chain technology.

With the introduction of Artificial Intelligence in this field, the capital in this market is going to increase rapidly in the coming years. The Investment banker must have an eye on the logistics and supply chain tech market. Companies like Oracle, SAP, etc. are providing a complete resource management system linked with cloud capabilities. More new solutions/start-ups for SCM and logistics are expected to come soon. This is the perfect time to invest in a booming field like logistics and supply chain technology.

With the emergence of e-commerce, supply chain technology is helping companies to produce products strategically and finding loss-generating products. The supply chain tech is providing solutions to distribution models and is helping companies in cost optimization. The software/application can handle huge chunks of data and can even automate the SCM process. It is a great area where a lot of capital is being generated.

The global logistics market is supposed to grow up to USD 12,256 Billion by 2022 with a CAGR (Compound Annual Growth Rate) of 3.48%.

Why companies will prefer Logistics and Supply-Chain tech?
The investment in this market is supposed to increase. Companies will invest in logistics and supply chain tech because of many benefits. The few are listed below.

  • It will help companies in planning and managing the demand from the consumers.
  • Supply chain tech is helping companies in procurement i.e. the process of purchasing/obtaining goods/services.
  • Smart software can keep track of all the business data/information and can manage the business inventory.
    This helps companies in reducing human labor for inventory management.
  • A reliable business model created via SCM will help in managing the distribution service effectively and predicting the upcoming demand of the consumers. It will also help in predicting the trends in demand and for business forecasting.
  • Risk analysis and management can be done with the help of supply chain tech.

The e-commerce sector had arrived years ago and is expected to have a long-term impact on businesses/companies. The traditional methods are not being preferred because of reliable and automated technology solutions. If you are an investment banker, then you must focus on the logistics and supply chain tech market.

One can learn more about ideas for investing and generating capital in any market through various Investment banking courses after graduation available. This article was all about the perspective of an Investment banker towards the logistics and supply chain tech market.

10 Best Books About Investment Banking!

Posted on by Imarticus Learning

The Investment Banking Landscape

Investment banking has been one of the most essential industries in modern-day capitalist society. It has always been an important integration of the banking and finance sector given the role it plays. So what makes the investment banking industry so indispensable?

Well, the functions of an investment bank make it a crucial part of the economy. The primary function of the investment banks includes efficiently channeling funds in the economy by leveraging their large network and expertise.

The efficient channeling of funds is just a broader view of what9+ the investment banks do regularly. There are a whole lot of services that the investment banks offer, from underwriting to advisory, the purview of investment banks extends beyond imagination in the financial domain. The high-paying jobs in the investment banking industry make it a lucrative career prospect.

An investment banking course will surely help those aspiring for a job in this sector. However, people who are keen on learning the intricacies often also read books related to investment banking. Investment banking books provide a deeper insight into the functioning of the industry and gives a new perspective on things.

Here is a list of some of the most interesting investment banking books if you want to add some value to your investment banking knowledge base.

  1. One Up on Wall Street
    One Up on Wall Street is considered an evergreen book for investment banking. It is written by Peter Lynch, an investor, mutual fund manager, and philanthropist. He successfully managed the Magellan Fund at Fidelity Investments between the years 1977 to 1990. It gives a very plain and simple approach to investing and removes all the unnecessary complexities in the process.
  2. Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions
    The second in this list is a book by Joshua Rosenbaum & Joshua Pearl. If you are looking to find easy explanations for the complex technical jargon of the investment banking industry, this book will surely help you in every aspect. It takes a holistic approach to explain the investment banking industry.
  3. The Business of Venture Capital
    A lot of investment banking is all about raising funds for companies from venture capitalists. This exemplary book by Mahendra Ramsinghani throws light on the essentials of raising funds, structuring deals, value addition, and exit strategies. It’s highly recommended if you want to obtain deeper insights into Venture Capital.
  4. Investment Banking for Dummies
    Matthew Krantz and Robert Johnson have meticulously put together the concepts of investment banking in their masterpiece. It explains the fundamentals of banking concepts and their real-world applications, it is one of the best books if you are just starting with your investment banking journey.
  5. Investment Banking: Institutions, Politics & Law
    This book is written by Alan Morrison and William Wilhelm Jr. It traces the history of investment banking and gives a fresh perspective for those who want to learn about the fundamentals of investment banking and its origin.
  6. The Best Book On Investment Banking Careers
    If you want to cut the chase and know about careers in the investment banking domain then this book will surely clear the air. It is beautifully put together by Donna Khalife. The author sheds light on the basics of investment banking and the job roles in this domain.
  7. The Accidental Investment Banker
    The Accidental Investment Banker is authored by Jonathan A Knee. It gives an insider’s perspective on the investment banking industry from the 90s when the dot com bust had disrupted the investment banking sector. It creates an interesting story about an investment banking episode.
  8. The Business of Investment Banking
    K. Thomas Liaw is the author of this insightful book on investment banking. It takes a fresh perspective on the global investment banking industry and covers everything from underwriting to M&A and other functions of investment banking in the modern-day capitalist society.
  9. Financial Modelling and Valuation
    This book provides deeper insights into the basics of financial modeling and valuation techniques. It is written by Paul Pignataro who guides on making accurate stock valuations with the help of financial modeling techniques.
  10. Investment Banking Explained
    This masterpiece gives deep insights into how Investment banking works and an insider’s perspective on this industry. It is authored by Michael Fleuriet.

What is Investment Banker?

Posted on by Imarticus Learning

Finance has become a very popular career option these days. Also, it has various roles to offer. Finance comes with a lot of technical aspects and requires a lot of in-depth knowledge of the subject. Investment banking is one such field where your financial knowledge is put to use. An Investment bank is a financial institution that offers a lot of financial services. These institutions have expertise in handling complex issues related to finance such as underwriting, investments, etc.

Who is an Investment Banker?

An investment banker is a person who works in these investment banking institutions. He or she is responsible for raising capital and other sources of funds for the investment banks in which he or she works. Also, these investment bankers give financial advice to people on stock trading and raising capital. These bankers also assist people with complex financial transactions.

People hire Investment banker courses to help them with different mergers and acquisitions. These people also take care of various securities and trade them to raise funds. Investment bankers are the people who are well-versed with all the technical aspects of finance. They know how to manage finances and put it to best use.

An investment banker has to perform multiple roles. He also assesses risks associated with a particular project or with the financial profile of a particular client. These people give expert bits of advice on handling finances. They also help out people with stock trading.

They also provide financial consultancy to all kinds of organisations including companies, NGOs, Business Co-operatives, etc. Another role which an investment banker takes up is of setting up prices for different securities. They also navigate different regulations and set up working for different securities. Investment bankers act as an intermediary and manage funds and securities for different companies.

They can manage career both independently and through an investment banker or a similar institution. Investment bankers use the mark-up mechanism to earn their share of income. This mark-up is huge and you earn a lot from these mark-ups. These bankers earn a lot through securities’ pricing. Investment banks with the help of these professionals take risks and are then rewarded for these risks in the form of profits.

Investment bankers have been doing their jobs with utmost precision for years now. They know how the market works and they put a lot of time studying these markets.

How to become an Investment Banker?

Being good in finance is a pre-requisite for becoming an investment banker. Investment bankers have spent years to gain expertise in this field. So, they are highly paid. An investment banking course can help your cause. You have to be very skilled to excel in this particular career domain.

To become an excellent investment banker, you must have a stronghold on stock markets and the different types of securities. You can take up a course to learn about financial markets and their workings. Also, you must have enough knowledge about the pricing of securities and should know how to price them as your profits are going to come from those prices.

Investment bankers do well when the market works in their favour. A lot of investment banks prefer taking people who have an MBA in finance but you can also venture this field with a bachelors’ degree and a good skill set. The career path of investment banking is highly competitive and you have to outperform yourself with all your deals and negotiations to survive in the market.

Conclusion
Investment banking has become one of the most desirable jobs recently. With the right skill set and training, you can work wonders in the field.

What do Investment Bankers Really Do?

Posted on by Imarticus Learning

Investing banking division is a specialized segment in the banking and finance industry that primarily focuses on raising funds for companies by connecting them with investors.

The investment banking field has shown exponential growth in the last few decades as we progress towards a more globalized world where funds can be free transferred between economies of different nations. The role of investment bankers is also very crucial as a lot depends on the performance of investment banks.

So what do investment bankers really do? The role of an investment banker is very dynamic and encompasses a range of activities such as helping clients to raise money, analyzing the market, networking with prospects, financial analysis, financial advisory, etc.

Let’s understand this more contextually by analyzing the functions of investment banks and how they add value to the economy’s growth prospects.

Investment banks as underwriters

Investment banks provide underwriting services to companies who are about to go public with their Initial Public Offer. Underwriting can be explained as a process in which an individual or institution takes a certain financial risk for a premium or fee. The risk element might include loans, insurance or investments. Now, before taking such risk the modern-day investment banks conduct thorough research to find out the degree of risk associated with a particular deal.

This extensive research will help to set an optimum premium amount on the financial transactions. In case of investment banks working as underwriters, they are required to raise the capital amount for their clients from investors by issuing either debt or equity securities. There are three types of underwriting commitments provided by investment banks to their client these includes firm commitment, best efforts, all or none. Let’s explore this in details.

• Firm Commitment
In case of a firm commitment underwriting service, the underwriter has the full responsibility to buy the entire stock issue at a fixed price decided in advance based on the research. Even if the underwriter fails to sell the entire issue they have a legal obligation to accept the deal.

• Best Efforts
In case of best efforts, the underwriter commits to sell as much of the issue as he can but without any legal financial obligation. This means that if the stock issued is not fully subscribed by the public then the investment bank will not have a legal obligation to pay for the unsubscribed shares to its client.

• All or None
This is a very special case of underwriting where the deal stands canceled if all the stocks issued are not sold out. If the stocks are not sold to the buyers are the predetermined price then the underwriter will not receive any form of compensation for their services.

Mergers & Acquisition services
Investment bankers play a significant role in facilitating mergers and acquisition deals between two or more companies. The investment bankers play a crucial role by determining the fair price or value of companies involved in the M&A deals. This requires conducting extensive research, studying the industry and competitors, identifying the financial position of the company, and a lot more.

A strategic plan is needed by organizations who want to acquire or merge with companies in the same domain. This is where investment banks come into the picture and add value by leveraging their network and professional expertise to find out potential target companies.

In addition to this, the investment bankers also guide their clients involved in the deal on how to finance the M&A deals. They study and design a suitable capital structure for their clients and also guide on financing methods to maximize profitability without diluting ownership.

Also Read: Prerequisites For Becoming an Investment Banker

Why Do So Many People Want to Go into Investment Banking?

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Before jumping over to why so many people want to pursue a career in Investment Banking, let’s peep into what Investment banking entails and what it takes to be an investment banker.

What is Investment Banking?

The investment banking segment is the strongest pillar of the finance and banking industry. It propels the wheel of the economy by acting as a mediator between corporations seeking fund and investors looking to park their wealth. This channelling of funds is on a very high scale and involves high profile individuals, corporations and government bodies.

Investment banking is a specialised segment of the banking industry that deals with high stake investments and provides financial guidance to investors. In addition to this investment banks also help to facilitate IPOs and M&A deals by leveraging their large professional network and financial expertise.

Given the crucial function that the investment banks perform, people are keener on pursuing a career in this industry. How can you get a job as an investment banker? It is a common question among individuals who are aspiring for a career in this domain. Well, the answer to this question is very subjective and requires personal evaluation.

If you are still in the early phase of your career development, you can opt for a bachelor’s degree in statistics, economics, mathematics, commerce, or any relevant discipline. You can boost your prospects for a job just after graduation by enrolling for an investment banking certification course.

Investment banking certification provides you with a comprehensive understanding of the investment banks. In addition to this, it imparts you with relevant technical skills and practical industry exposure. This can help you stand out of the competition by demonstrating your specialised skillset.

Why Investment Banking?

Investment banking is among the most prestigious career opportunities in the finance and banking industry. The investment banker title has its charm; it is also considered among the most rewarding career opportunities out there. So why is it so popular among people who want to pursue a career in finance?

Well, most people are lured in by the fat cheques that the investment bankers make. Some people are simply passionate about working in the investment banking industry and some are driven by the investment banker lifestyle. There are various reasons why people join the investment banking industry but the majority is looking forward to making good money. It is among the few professions where simple graduation in disciplines like economics, statistics, mathematics, etc. can help you earn 6 figures income.

The Investment Banker Lifestyle

One of the most prominent reasons why young college graduates want to pursue a career in this industry is because they want to enjoy the investment banker lifestyle. Investment banking is known for its compensation, it’s is far higher compared to any other industry’s professionals at a similar level. People are attracted to the glamour and charisma attached to this role, the high-profile parties and exotic island hospitality is more than enough to jump into this field.

The Status Quo

Investment bankers are usually involved in high-profile deals and they work with high-net individuals from celebrities to entrepreneurs, this gives them exclusive access to information and people. The title of an investment banker is held in very high regard by people around us. It helps to demonstrate a distinguishing trait, a title held by only a few percentages of the population makes you stand out from the crowd.

Passion-Driven

Some people in this industry are simply driven by passion more than anything else. They like to crunch number and look at stock indices and analyse stocks. They usually want to work in the finance sector from a young age. In addition to this, they are good at their job and thus they enjoy fairly higher compensation.

Also Read: Scope of Investment Banking

All You Need To Know About Investment Banking!

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Investment banks can be categorised into four types that include regional boutique banks, elite boutique banks, middle market and bulge bracket banks.

Let’s delve deeper into each category.

  • Regional Boutique Banks: The regional boutique is considered as the smallest category of investment banking based on the typical deal size and firms operation scale. These investment banks specialise in a particular niche, for example, a Merger and Acquisitions investment bank. The employee count is also very small as compared to other investment banks.
  • Bulge Bracket Banks: The bulge bracket category includes high-profile investment banks in the industry who have an international presence. The clientele ranges from high net-worth individual to large corporations. They have multiple offices in different locations and have employee count in thousands. For example Morgan Stanley, Deutsche Bank, etc.
  • Elite Boutique Banks: The elite boutique category includes those investment banks who are almost at par with bulge bracket investment banks in terms of deals managed by them. The monetary value of these deals is often higher than $1Billion. These banks also have an international presence but the scale of operations is somewhat limited when compared with bulge bracket category. For example JP Morgan Chase & Co.
  • Middle-Market Banks: Middle-market banks fall somewhere between the regional and bulge bracket category. The average deal range for banks in this category is between $50 million to $500 million. They majorly operate domestically but some can have a limited international presence as well. For example Cowen Group.

Is Investment Banking a Good Career?

Many fresh college graduates aspire to make a career in the investment banking industry. Most of them are thrilled by the lucrative remuneration and perks attached to the title of an investment banker. However, not everyone turns out to be a successful investment banker. Is the investment banking career a good one for you? Well, the answer to this question depends on how committed are you to your career.

The investment banking career is a demanding one, the role of an investment banker is multidimensional. It requires honing a range of skills including both soft skills and technical skills to achieve success. The day-to-day of an investment banker includes doing research for your clients, staying updated on the financial news, conducting complex financial analysis, projecting prospects, meeting with various stakeholders and building relationships on behalf of the investment banks, etc.

The rewarding remuneration is justified by the workload it entails. The job of an investment banker is a high-pressure one, demanding most of your time. On average, the investment bankers work for 12-16 hours a day, it is far from 40 hours’ work-week that a normal job has. The pay scale is also very high, compensating you for every bit of your time and effort. If you are willing to invest your time and effort that is required to be successful as an investment banker then it is surely a good career option.

How Do You Become an Investment Banker?

Investment banking has been one of the most sought after and lucrative career prospects. Most people aspiring for a career in the field of finance have their eyes set on the title of an investment banker. The primary reason why most people consider investment banking as their ultimate career goals is the type of remuneration this job role has to offer. The pay scale is unmatched by any other industry, even an entry-level position has very rewarding perks.

How can you become a successful investment banker? The answer to this question depends on what stage of your career you are presently at. If you are yet to graduate you have the utmost flexibility to choose your path. The best way to start is by pursuing your bachelor’s degree in a relevant field like economics, commerce, finance, accounting, statistics, etc. This degree alone can help you get into the investment banking industry at an entry-level position.

The best way to kick-start your career in this field is by pursuing an MBA degree with a specialisation in Finance. Another equally rewarding way is to enrol for an investment baking related course which will provide you with hands-on knowledge and skills relevant to the job that you will be doing as an investment banker. Being a successful investment banker takes time, determination and commitment to your job.

What Is An Investment Banking Course?

Investment banking is a specialised division in the banking and finance industry that primarily focuses on helping individual and corporate clients to raise capital from the market. Investment banks act as mediators between the party seeking funds and the investors who are looking to gain a profitable sum on their investment. It also provides financial consultancy on an array of financial instruments for investment purpose by assessing the risk and return profile of the individual.

Investment banking courses are programs specifically created to provide comprehensive knowledge of the capital markets and the investment banking division. The curriculum of these programs is designed to provide both theoretical knowledge and practical understanding of the investment banking landscape. The main objective of the investment banking courses is to impart hands-on knowledge and skills required to become a successful investment banker.

The investment banking course takes a holistic learning approach and focuses on core subject matters including strategic planning, financial management, financial analysis, corporate finance, valuation, alternative investments, equity, portfolio management, quantitative analysis, ethics, etc. The course also provides contextual insights into the primary functions of investment banking that includes Mergers & Acquisitions, corporate restructuring, leveraged buyouts, Initial Public Offering launches, etc.

Which Course Is Best for Investment Banking?

Investment banking is one of the most promising industries to build a rewarding career. The lucrative job prospects attract a lot of young aspirants who want to build a successful career, this leads to high competition in the investment banking industry. Investment banking courses are designed to provide a comprehensive understanding of the core financial subjects. It aims to build your practical understanding of the industry and impart you with relevant technical skills to beat the competition.

Staying ahead in the game requires a lot of hard work and determination. You have to stand out from the crowd; this can be achieved by having an in-depth understanding of the financial industry. Choosing the best investment banking course is subjective and can get tricky at times.

Some important factors to consider before choosing an investment banking course are the technical skills to be gained, the price of the course and the institution’s experience and reputation. The level of specialisation that you require also determines which course would be the best fit for you.

If you are looking for the best investment banking course then join Imarticus Learning’s Certified Investment Banking Operational Program. This placement assured investment banking course can help you to build a successful career in an investment banking industry.

 

How Corona Virus May Impact Global Investment Bank Revenues In 2020

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The COVID-19 pandemic has so far infected over a million people and killed over 50,000 people, and has spread to more than 200 countries. While at some locations a handful of cases were reported, others with early community transmission have a few hundred. Unfortunately, at geographies with widespread transmission have reported thousands of cases.

Economic Disruptions

This pandemic has caused major disruption to global economies owing to the containment measures and lockdowns all over. It is quite evident now that because of the virus-containment measures global economies will be hit to a great extent. Lockdowns, social-distancing and other coronavirus-containment measures have led to a massive fall in the global economic activity – plummeting consumer demand, fall in crude oil prices, crash in global stock markets, and equally decreasing global banking revenues.
Going by the words of leading financial experts, a global recession cannot be ruled out. The decrease in demand and disrupted supply chains will eventually have a domino effect on other parts of the economy, causing the next global economic recession. Numerous financial institutions and banks have already cut their forecast for the global economy.

2019 witnessed a downward slide in global investment banks revenues; with ambiguity about the duration of this pandemic and vaccine release, the ongoing pandemic will continue to rattle trading revenues and global investment banks in 2020 as well. Over the past few weeks, billions of dollars have been taken out from credit lines and reduced the investor wealth.

The global banking industry, already under stress, will be impacted further due to consumer sentiments and ongoing liquidity concerns. The coronavirus shockwaves are rippling through the investment banking industry across the world, forcing investors to pull out their money from the credit lines; this has led to experts warning of severe liquidity crunch and a credit crisis. Asset managers are rewriting how they locate deals, manage their portfolio companies, and engage with promoters of potential targets.

Despite a decent start to 2020, virus-induced panic caused some of the worst market selloffs in February and March, with commodities prices and equities falling to new lows. The investment banking industry experts expect more price falls and continued volatility in the short term. This will require portfolio adjustments of scores of institutional investors.

Increased Market Volatility

The rise in global market volatility will cause the issuance activity to decrease which will hurt the investment banking revenues to a great extent. Economists are now pinning their hopes on the containment of this deadly virus; if not contained soon the damage can be enormous to the investment banking industry. The current market situation is similar to the selloffs in the fourth quarter of 2018 and in the first quarter of 2016 when transaction volumes plummeted after investors reshuffled their portfolios.

Containment Factor

Although it is still unclear how long the epidemic will last, investment strategists expect containment sooner rather than later in the year, and still hope for a quick rebound of the economy. However, strong monetary and fiscal policy responses under way could set the stage for a second-half rebound.

Also Read: How Corona Virus Impacting Financial Sector

What Is the Societal Benefit of Investment Banking?

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Understanding Investment Banking

Investment banking can be defined as a unique division in the Finance and Banking Industry that deals with providing capital for companies, guiding on profitable investment avenues and complex securities, facilitating other investment-related transactions.

One of the primary functions of investment banking is seen in the context of Initial Public Offerings (IPOs). Investment banks act as the underwriter and mediate the deal between the company seeking funds and the investors looking to park their investments in profitable avenues. Investment banks also help to facilitate the mergers and acquisition deals for their clients by leveraging their vast network and expertise in the domain.

How Does It Help Society?

The Finance and Banking Industry are the twin pillars of the present day Capitalism. The concept of money multiplier came into existence due to the evolution of the banking industry. The wealth creation process has been escalated due to the presence of investment infrastructure created by the investment banking industry. Let’s see the macroeconomic impact of the investment banking industry that helps the contemporary capitalist society.

Market Liquidity

The contemporary economic setting is characterized as a mixed one; a mixed economy system has elements of kinds, the market economy as well as the planned economic system. In the mixed economic structure, both the government and private enterprises rely on investment banks for fundraising to a great extent.

The traditional function of investment banks included mediating deals between the buyers and sellers of securities and other financial instruments, in facilitating the deals investment banks helps to add liquidity in the market. Think of a situation where investment banks are not present in the economy, how will a company raise funds during its IPO? Well, it’s certainly a difficult situation to find two parties who need what the other has, almost like a barter system scenario.

Connecting Present And Future Consumptions

One of the major functions of the banking industry is to control the supply of money to induce saving and consumption using interest rates. The market rate of interest determines how lucrative it is to save or invest money; if the interest rates are higher people will save more money than spend it because they will get a higher return in the future.

If interest rates are lower, people will prefer keeping liquid money instead of investing it in a financial instrument or saving it in a bank. The investment banks help in shaping the market rate of interests, the more efficient it is in establishing the interest rates the better the resources can be channelled between the present and future needs.

Impact Investing

In the contemporary landscape, people and companies are more concerned about the environment. Today, it’s not just about growth but about creating sustainable growth that will not compromise with the needs of the future generations. The new-age start-ups are all about solving modern problems and creating businesses around the problems that are hampering the environment and society.

The main emphasis is laid on using money and investment capital for social gains rather than just boosting profitability, it’s more like making an informed investment decision.

Funding is the most important factor to grow any business, no matter how good your intentions are for the society you need funds for running and growing your business to make an impact. Investment banks can help businesses with good intentions in their funding needs. This process of providing funds to businesses that are determined to make an impact in society is called impact investing. Impact investing aims to produce environmental benefits in addition to financial gains for the business.

What Are the Golden Rules of Investment Banking

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A career in the Investment Banking industry often seems very lucrative for an outsider given the huge perks and benefits that the role entails. The reality of the job is quite different from what it seems. The remuneration is certainly very lucrative, there is no denying that but the work it takes to make it, in the long run, is undesirable by a normal person. To thrive as an investment banker one needs to work on their soft skills as much as they work on their financial knowledge and other technical skills.

The Investment Banking industry is very dynamic and volatile. No matter what you do you can’t predict the outcomes with perfect accuracy, there is always some uncertainty and risk involved in this game. To succeed and grow your career in the Investment Banking industry you need to be a hard worker who is persistent and patient. Knowing about the industry is not enough; you need to know everything about your clients and competition.

At managerial levels, the job involves a lot of socialising and networking with high-profile individuals and organizations that require you to be an effective communicator. One of the most important skills that you need to have or develop is being a great salesperson because at some point or another in your career you will need to bring more clients and revenue for the company. Let’s talk about some of the golden rules of investing that every investor should be aware of, these are more like thumb rules of investment.

Goal Setting

One of the most important factors that are common to all vocation but more like a rule in the investment banking sector. Being an investment banker you need to handle the money of your client. When you invest the money you need to know about the financial goals and the time frame that you’ll be an investment for. This provides clarity and helps you stick to your strategy.

High Risk, High Returns Trade-Off

High returns often seem very lucrative but the other side of the story is not very appealing. There is often a high degree of risk associated with high returns. You should choose your investments based on your client’s risk appetite and return estimates.

Investment Diversification

Diversification is one of the most rudimentary steps in mitigating the risk associated with investing. Spreading your investment amount across a range of assets and geographical areas is often a smart move and helps to protect your overall investment amount. It is as simple as not putting all the eggs in one basket.

Invest With A Long Term Vision

When you are investing the money it should not be from a short-run perspective, the return is often very volatile in the short run and hard to predict what you’ll get back. Long run investments are often very stable and provide a balanced return on investment. The process of investing is not a get ultra-rich instantly scheme.

Portfolio Review

One of the most important rules of investment is to review the portfolio that you have created. Your investment will change in value over time and might differ from your investment objectives in the beginning, this needs to be handled proactively by making necessary iterations in your investment portfolio to get the desirable outcomes.

Refrain From Timing The Market

When markets are efficient and you have perfect knowledge you could buy the securities when they are undervalued and sell them when they become overvalued. Unfortunately, it’s very hard and risky to time your investments given the fluctuations in the stock market. Buying and holding your securities in the medium run is a good option to stay afloat in the game.

The Rise and Dramatic Fall of European Investment Banks in the US

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The modern investment banking industry is one of the most important aspects of the capitalist economy. It is also seen as one of the most sought after career choices for people in the finance industry given the lucrative remuneration and perks that the job offers. Ever wondered how this industry came into existence? How did it help to channel liquidity in the economy and boosted wealth creation? Let’s peep into the history of the glorious investment banking industry.

In its nascent phase, the investment banking industry was limited to investment financiers. The investment financiers were extremely wealthy individuals who had the surplus wealth to spare. They provided funds to governments and the Royals as loans which were backed by taxes collected from the citizens. The modern investment banking started much later and is a part of modern history.
The United States was the founding nation of this industry during the times of the Civil War where Government bonds were circulated to investors as a financial instrument of investments. It followed by issuing war bonds to the public for raising money. After the war was over, the investment banking industry was formally established to fund large scale projects related to railways, manufacturing, etc. Investment bankers were primarily mediators who matched the parties seeking a fund with parties looking to invest in profitable avenues.

European Investment Banks In The US Territory

There was a time when the European investment banks went on an acquisition spree in the United States to tap on one of the most promising trading and banking markets in the whole world. The year 1978 saw the first move from European lenders in the US market when Credit Suisse made an exemplary move into First Boston, a top tier advisory firm in the US. By 1998, Credit Suisse acquired the third position in the industry in terms of investment banking fees, beating both Morgan Stanley and Goldman Sachs.
The pre-global financial crisis market saw the proliferation of European investment banks in the US market. Some of the most prominent acquisitions which were the highlights of the growing European expansion were as follows; Deutsch Bank’s acquisition of Banker’s Trust, in a record-breaking $10 billion deal (1998), HSBC’s takeover of Consumer Finance Business Household (2003), Credit Suisse’s acquisition of DLJ (2000).

All these deals amounted to billions being pumped into the US market from European lenders. European investment banks became prominent players in fixed income trading and leveraged the finance segment by hiring top-notch talent in Wall Street. The period between the years 2002-2007 saw a rise in the market share of European investment banks in the US territory.
The reign of the European Investment Banks in the US territory began to crumble in the last decade around the global financial crisis. By the year 2007, the Deutsch Bank was ranked 9th in terms of Investment banking fee that was approximately equal to $1.6 billion, far less than its competitor JP Morgan’s $4.4 billion. Retail operations of the European Investment banks also struggled; HSBC’s household business was shut down just after the few years of its purchase.

The period between the years 2012-2019 marked a steep decline in the proliferation and profitability of the European Investment Banks. In more recent developments it was found that HSBC was shutting down 30% of its US branches after admitting the losses from US operations. In addition to this, another prominent European player the Deutsch bank closed its global equities business which resulted in thousands of job losses. One of the most prominent reasons for this steep decline has been the strict regulatory challenges faced by the European Banks after the global financial crisis that shook the world.