INDEX:

SR.NO TOPIC
1 INTRODUCTION
2 HISTORY
3 PROPECTS
4 PURPOSE
5 OBJECTIVES
6 FUNCTIONS
7 RECENT EVOLUTION OF BUSINESS
8 INVESTMENT BANKERS
9 BARCLAYS INVESTMENT BANKING
10 CORPORTAE INVESTMENT BNAKING
11 TD SECURITIES IN INVESTMENT BANKING
12 CASE STUDY
13 RESEARCH ARES
14 CONCLUSION
15 BIBLIOGRAPHY


INTRODUCTION:
An investment bank is nothing like the corner institution you're used to dealing with to get a
business loan or deposit your paycheck. Instead, an investment bank is a special type of financial
institution that works primarily in higher finance by helping company access the capital markets
(stock market and bond market, for instance) to raise money for expansion or other needs. If
Coca-Cola Enterprises wanted to sell $10 billion worth of bonds to build new bottling plants in
Asia, an investment bank would help them find buyers for the bonds and handle the paperwork,
along with a team of lawyers and accountants.

Activities of a Typical Investment Bank:
A typical investment bank will engage in some or all of the following activities:
Raise equity capital (e.g., helping launch an IPO or creating a special class of preferred
stock that can be placed with sophisticated investors such as insurance companies or
banks)
Raise debt capital (e.g., issuing bonds to help raise money for a factory expansion)
Insure bonds or launching new products (e.g., such as credit default swaps)
Engage in proprietary trading where teams of in-house money managers invests or trades
the company's own money for its private account (e.g., the investment bank believes gold
will rise so they speculate in gold futures, acquire call options on gold mining firms, or
purchase gold bullion outright for storage in secure vaults).
Investment banks are often divided into two camps: the buy side and the sell side. Many
investment banks offer both buy side and sell side services. The sell side typically refers
to selling shares of newly issued IPOs, placing new bond issues, engaging in market
making services, or helping clients facilitate transactions. The buy side, in contrast,
worked with pension funds, mutual funds, hedge funds, and the investing public to help
them maximize their returns when trading or investing in securities such as stocks and
bonds.
Up until ten years ago, investment banks in the United States were not allowed to be part of a
larger commercial bank because the activities, although extremely profitable if managed well,
posed far more risk than the traditional lending of money done by commercial banks. This was
not the case in the rest of the world. Countries such as Switzerland, in fact, often boasted asset
management accounts that allowed investors to manage their entire financial life from a single
account that combined banking, brokerage, cash management, and credit needs.
Most of the problems are about as part of the credit crisis and massive bank failures were caused
by the internal investment banks speculating heavily with leverage on collateralized debt
obligations (CDOs). These losses had to be covered by the parent bank holding companies,
causing huge write-downs and the need for dilutive equity issuances, in some cases nearly
wiping out regular stockholders. A perfect example is the venerable Union Bank of Switzerland,
or UBS, which reported losses in excess of 21 billion CHF (Swiss Francs), most of which
originated in the investment bank. The legendary institution was forced to issue shares as well as
mandatory convertible securities, diluting the existing stockholders, to replace the more than
60% of shareholder equity that was obliterated during the meltdown.
RISK MANAGEMENT:
Risk management involves analyzing the market and credit risk that an investment bank or its
clients take onto their balance sheet during transactions or trades. Credit risk focuses around
capital markets activities, such as loan syndication, bond issuance, restructuring, and leveraged
finance. Market risk conducts review of sales and trading activities utilizing the VaR model and
provides hedge-fund solutions to portfolio managers. Other risk groups include country risk,
operational risk, and counterparty risks which may or may not exist on a bank to bank basis.
Credit risk solutions are key part of capital market transactions, involving debt structuring, exit
financing, loan amendment, project finance, leveraged buy-outs, and sometimes portfolio
hedging. Front office market risk activities provide service to investors via derivative solutions,
portfolio management, portfolio consulting, and risk advisory.


Many investment banks are divided into three categories that deal with front office, back
office, or middle office services.

Front Office Investment Bank Services: Front office services typically consist of
investment banking such as helping companies in mergers and acquisitions, corporate
finance (such as issuing billions of dollars in commercial paper to help fund day-to-day
operations, professional investment management for institutions or high net worth
individuals, merchant banking (which is just a fancy word for private equity where the
bank puts money into companies that are not publicly traded in exchange for ownership),
investment and capital market research reports prepared by professional analysts either
for in-house use or for use for a group of highly selective clients, and strategy
formulation including parameters such as asset allocation and risk limits.
Middle Office Investment Bank Services: Middle office investment banking services
include compliance with government regulations and restrictions for professional clients
such as banks, insurance companies, finance divisions, etc. This is sometimes considered
a back office function. It also includes capital flows. These are the people that watch
money coming into and out of the firm to determine the amount of liquidity the company
needs to keep on hand so that it doesn't get into financial trouble. The team in charge of
capital flows can use that information to restrict trades by reducing the buying / trading
power available for other divisions.
Back Office Investment Bank Services: The back office services include the nuts and
bolts of the investment bank. It handles things such as trade confirmations, ensuring that
the correct securities are bought, sold, and settled for the correct amounts, the software
and technology platforms that allow traders to do their job are state-of-the-art and
functional, the creation of new trading algorithms, and more. The back office jobs are
often considered unglamorous and some investment banks outsource to specialty shops
such as custodial companies. Nevertheless, they allow the whole thing to run. Without
them, nothing else would be possible.


HISTORY:
Philadelphia financier Jay Cooke established the first modern American investment bank
during the Civil War era. However, private banks had been providing investment banking
functions since the beginning of the 19th century and many of these evolved into investment
banks in the post-bellum era. However, the evolution of firms into investment banks did not
follow a single trajectory. For example, some currency brokers such as Prime, Ward and
King and John E. Thayer and Brother moved from foreign exchange operations to become
private banks, taking on some investment bank functions. Other investment banks evolved
from mercantile firms such as Thomas Biddle and Co. and Alexander Brothers.
Late 19th century:
From the Panic of 1873 until the 1900s (decade), the private investment banking industry was
dominated by two distinct groups: the German-Jewish immigrant bankers and the so-called
"Yankee houses". Despite this ostensible ethnic difference, the two groups shared a similar
economic structure. With one exception, the Yankee houses had ties with expatriate Americans
who had become merchant bankers in London. Similarly, almost all of the German-Jewish
houses had ties with German-Jewish merchant bankers in London. The one exception was Kuhn,
Loeb which was tied to European sources of capital through the German investment banking
community. Several major banks were started following the mid-19th century by Jews, including
Goldman Sachs (founded by Samuel Sachs and Marcus Goldman), Kuhn Loeb (Solomon Loeb
and Jacob H. Schiff), Lehman Brothers (Henry Lehman), Salomon Brothers, and Bache &
Co.(founded by Jules Bache).
We aspire to be the leading trusted advisor and financier to our clients, which include
corporations, financial institutions, financial sponsors, governments and public authorities and
boards of directors and special committees.


Jewish investment banks:
Jewish banking houses were instrumental to the process of capital formation in the United States
in the late 19th and early 20th century
.
Modern banking in Europe and the United States was
influenced by Jewish financiers, such as the Rothschild family and Warburg family, and Jews
were major contributors to the establishment of important investment banks on Wall Street.
In the middle of the 19th century, a number of German Jews founded investment banking firms
which later became mainstays of the industry. Most prominent Jewish banks in the United States
were investment banks, rather than commercial banks. Onathan Knee postulates that Jews were
forced to focus on the development of investment banks because they were excluded from the
commercial banking sector
.
In many cases, the efforts of Jewish immigrants to start banks were
enabled due to the substantial support of their Jewish banking connections in Europe.
In the late 1860s, The Seligman family transitioned from merchandising to banking, setting up
operations in New York, St. Louis, and Philadelphia as well as Frankfurt, Germany, London and
Paris that gave European investors an opportunity to buy American government and railroad
bonds. In the 1880s the firm provided financing for French efforts to build a canal in Panama as
well as the subsequent American endeavor. In the 1890s J.& W. Seligman & Co. Inc. underwrote
the securities of newly formed trusts, participated in stock and bond issues in the railroad and
steel and wire industries, and invested in Russia and Peru, and in American in shipbuilding,
bridges, bicycles, mining, and other enterprises. In 1910 William C. Durant of the fledgling
General Motors Corporation gave control of his company to the Seligmans and Lee, Higginson
& Co. in return for underwriting $15 million worth of corporate notes. Lehman Brothers entered
investment banking in the 1880s, becoming a member of the Coffee Exchange as early as 1883
and finally the New York Stock Exchange in 1887
.




Early 20th century:
During the period from 18901925, the investment banking industry was highly concentrated
and dominated by an oligopoly that consisted of JP Morgan & Co.; Kuhn, Loeb & Co.; Brown
Brothers; and Kidder, Peabody & Co. There was no legal requirement to separate the operations
of commercial and investment banks; as a result deposits from the commercial banking side of
the business constituted an in-house supply of capital that could be used to fund the underwriting
business of the investment banking side.
The Panic of 1907 and the Pujo Committee:
In 1913, the Pujo Committee unanimously determined that a small cabal of financiers had gained
consolidated control of numerous industries through the abuse of the public trust in the United
States. The chair of the House Committee on Banking and Currency, Representative Arsenal
Pujo, (DLa. 7th) convened a special committee to investigate a "money trust", the de facto
monopoly of Morgan and New York's other most powerful bankers. The committee issued a
scathing report on the banking trade, and found that the officers of J.P. Morgan & Co. also sat on
the boards of directors of 112 corporations with a market capitalization of $22.5 billion (the total
capitalization of the New York Stock Exchange was then estimated at $26.5 billion).
Attorney Samuel Untermeyer who headed the 1913 Pujo Money Trust Investigation Committee
to investigate money trusts defined a money trust to George Baker during the Pujo hearings; "We
define a money trust as an established identity and community of interest between a few leaders
of finance, which has been created and is held together through stock-holding, interlocking
directorates, and other forms of domination over banks, trust companies, railroads, public service
and industrial corporations, and which has resulted in vast and growing concentration and
control.



PROSPECTS:
An investment bank is a financial institution that assists individuals, corporations, and
governments in raising capital by underwriting and/or acting as the client's agent in the issuance
of securities. An investment bank may also assist companies involved in mergers and
acquisitions and provide ancillary services such as market making, trading of derivatives and
equity securities, and FICC services (fixed income instruments, currencies, and commodities).
Unlike commercial banks and retail banks, investment banks do not take deposits. From 1933
(GlassSteagall Act) until 1999 (GrammLeachBliley Act), the United States maintained a
separation between investment banking and commercial banks. Other industrialized countries,
including G8 countries, have historically not maintained such a separation. As part of the Dodd-
Frank Act 2010, Volcker Rule asserts full institutional separation of investment banking services
from commercial banking.
There are two main lines of business in investment banking. Trading securities for cash or for
other securities (i.e. facilitating transactions, market-making), or the promotion of securities (i.e.
underwriting, research, etc.) is the "sell side", while buy side is a term used to refer to advising
institutions concerned with buying investment services. Private equity funds, mutual funds, life
insurance companies, unit trusts, and hedge funds are the most common types of buy side
entities.
An investment bank can also be split into private and public functions with an information
barrier which separates the two to prevent information from crossing. The private areas of the
bank deal with private insider information that may not be publicly disclosed, while the public
areas such as stock analysis deal with public information.



Organizational structure:
Investment banking is split into front office, middle office, and back office activities. While large
service investment banks offer all lines of business, both sell side and buy side, smaller sell-side
investment firms such as boutique investment banks and small broker-dealers focus on
investment banking and sales/trading/research, respectively.
Investment banks offer services to both corporations issuing securities and investors buying
securities. For corporations, investment bankers offer information on when and how to place
their securities on the open market, an activity very important to an investment bank's reputation.
Therefore, investment bankers play a very important role in issuing new security offerings.
Core investment banking activities:
Investment banking has changed over the years, beginning as a partnership form focused on
underwriting security issuance (initial public offerings and secondary offerings), brokerage, and
mergers and acquisitions and evolving into a "full-service" range including sell-side research,
proprietary trading, and investment management. In the modern 21st century, the SEC filings of
the major independent investment banks such as Goldman Sachs and Morgan Stanley reflect
three product segments: (1) investment banking (fees for M&A advisory services and securities
underwriting); (2) asset management (fees for sponsored investment funds), and (3) trading and
principal investments (broker-dealer activities including proprietary trading ("dealer"
transactions) and brokerage trading ("broker" transactions).
There are various trade associations throughout the world which represent the industry in
lobbying, facilitate industry standards, and publish statistics. The International Council of
Securities Associations (ICSA) is a global group of trade associations.
In the United States, the Securities Industry and Financial Markets Association (SIFMA) is likely
the most significant; however, several of the large investment banks are members of the
American Bankers Association Securities Association (ABASA) while small investment banks
are members of the National Investment Banking Association (NIBA).
Sales and trading:
On behalf of the bank and its clients, a large investment bank's primary function is buying and
selling products. In market making, traders will buy and sell financial products with the goal of
making money on each trade. Sales is the term for the investment bank's sales force, whose
primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on a
caveat emptor basis) and take orders. Sales desks then communicate their clients' orders to the
appropriate trading desks, which can price and execute trades, or structure new products that fit a
specific need. Structuring has been a relatively recent activity as derivatives have come into play,
with highly technical and numerate employees working on creating complex structured products
which typically offer much greater margins and returns than underlying cash securities. In 2010,
investment banks came under pressure as a result of selling complex derivatives contracts to
local municipalities in Europe and the US. Strategists advise external as well as internal clients
on the strategies that can be adopted in various markets. Ranging from derivatives to specific
industries, strategists place companies and industries in a quantitative framework with full
consideration of the macroeconomic scene. This strategy often affects the way the firm will
operate in the market, the direction it would like to take in terms of its proprietary and flow
positions, the suggestions salespersons give to clients, as well as the way structures create new
products. Banks also undertake risk through proprietary trading, performed by a special set of
traders who do not interface with clients and through "principal risk"risk undertaken by a
trader after he buys or sells a product to a client and does not hedge his total exposure. Banks
seek to maximize profitability for a given amount of risk on their balance sheet.
In Europe, the European Forum of Securities Associations was formed in 2007 by various
European trade associations. Several European trade associations (principally the London
Investment Banking Association and the European SIFMA affiliate) combined in 2009 to form
Association for Financial Markets in Europe (AFME).
In the securities industry in China (particularly mainland China), the Securities Association of
China is a self-regulatory organization whose members are largely investment bank.

Research:
The equity research division reviews companies and writes reports about their prospects, often
with "buy" or "sell" ratings. Investment banks typically have sell-side analysts which cover
various industries. Their sponsored funds or proprietary trading offices will also have buy-side
research. While the research division may or may not generate revenue (based on policies at
different banks), its resources are used to assist traders in trading, the sales force in suggesting
ideas to customers, and investment bankers by covering their clients. Research also serves
outside clients with investment advice (such as institutional investors and high net worth
individuals) in the hopes that these clients will execute suggested trade ideas through the sales
and trading division of the bank, and thereby generate revenue for the firm. Research also covers
credit research; fixed income research, macroeconomic research, and quantitative analysis, all of
which are used internally and externally to advice clients but do not directly affect revenue. All
research groups, nonetheless, provide a key service in terms of advisory and strategy. There is a
potential conflict of interest between the investment bank and its analysis, in that published
analysis can affect the bank's profits. Hence in recent years the relationship between investment
banking and research has become highly regulated, requiring a Chinese wall between public and
private functions.
Global investment banking revenue increased for the fifth year running in 2007, to a record
US$84.3 billion, which was up 22% on the previous year and more than double the level in 2003.
Subsequent to their exposure to United States sub-prime securities investments, many investment
banks have experienced losses. As of late 2012, global revenues for investment banks were
estimated at $240 billion, down about a third from 2009, as companies pursued less deals and
traded less. Differences in total revenue are likely due to different ways of classifying investment
banking revenue, such as subtracting proprietary trading revenue.
In terms of total revenue, SEC filings of the major independent investment banks in the United
States show that investment banking (defined as M&A advisory services and security
underwriting) only made up about 15-20% of total revenue for these banks from 1996 to 2006,
with the majority of revenue (60+% in some years) brought in by "trading".
PURPOSE:
Nearly everyone is familiar with commercial banks such as Wells Fargo and Bank of
America. These banks exist to provide saving and lending services to private citizens;
including but not limited to mortgage and auto loans, checking and savings services and
retirement accounts. Its likely that most of you deal with at least one commercial bank. An
investment bank on the other hand exists to provide services to private and public
companies. This includes raising capital through the issuance and sale of both securities and
bonds, assisting in mergers and acquisitions and providing guidance and advisory services
for other corporate financial transactions.
In the beginning the purpose of an investment bank was to help companies raise capital
through equity offerings and debt issuance and to advise and assist with mergers and
acquisitions. Since then the role of the investment bank has evolved and expanded
dramatically. These days investment banks are involved with their original purposes, but
they are also performing much more diversified activities. These banks now offer brokerage
services to both corporate and individual investors, they underwrite and sell new equity
issues, they provide financial and security advice to corporate clients and they provide
financial research to all types of clients. In addition, they have become involved in creating
many of the leveraged instruments that have caused so much financial trauma, they deal with
foreign exchange (another leveraged area) and they provide private banking for high net
worth individuals.
An investment bank often has a broad network of contacts within the financial industry. This
network extends globally and includes insurance, foreign exchange, legal and corporate
contacts. A good investment bank will be able to use this network to provide detailed market
knowledge and guidance, legal advice and investment opportunities on a global, countrywide
or regional level. For this reason investment banks are highly regarded for helping to create a
competitive advantage to the clients they advise.


OBJECTIVE:
The financial goal or goals of an investor. An investor may wish to maximize current income,
maximize capital gains, or set a middle course of current income with some appreciation of
capital. Defining investment objectives helps to determine the investments an individual should
select.

Investment banks help companies and governments and their agencies to raise money
by issuing and selling securities in the primary market. They assist public and private
corporations in raising funds in the capital markets (both equity and debt),
Investment banks also act as intermediaries in trading for clients. Investment banks
differ from commercial banks, which take deposits and make commercial and retail
loans.
In recent years, however, the lines between the two types of structures have blurred,
especially as commercial banks have offered more investment banking services.
Investment banks may also differ from brokerages, which in general assist in the
purchase and sale of stocks, bonds, and mutual funds. However some firms operate as
both brokerages and investment banks; this includes some of the best known financial
services firms in the world.
More commonly used today to characterize what was traditionally termed "investment
banking is sells side." This is trading securities for cash or securities (i.e., facilitating
transactions, market-making), or the promotion of securities (i.e. underwriting, research,
etc.).
In the strictest definition, investment banking is the raising of funds, both in debt and
equity, and the division handling this in an investment bank is often called the
"Investment Banking Division" (IBD).

The professional management of various securities (shares, bonds etc) and other assets
(e.g. real estate), to meet specified investment goals for the benefit of the investors.
Investors may be institutions (insurance companies, pension funds, corporations etc.)


FUNCTIONS:

The primary function of an investment bank is buying and selling products both on
behalf of the bank's clients and also for the bank itself. Banks undertake risk through
proprietary trading, done by a special set of traders who do not interface with clients and
through Principal Risk.
Risk undertaken by a trader after he or she buys or sells a product to a client and does
not hedge his or her total exposure. Banks seek to maximize profitability for a given
amount of risk on their balance sheet.
When helping a company to raise money, an investment bank provides three primary
functions for its clients:
1. Investigation
A company that desires to raise money will approach an investment banking firm for its
assistance. From that point on, that investment banking firm is known as the manager or lead
investment bank in the process. The manager will provide two investigations, or type of
analyses, for its client:
A. Legal Analysis - Since a security is being sold, the security must first be created. Most of
us think of a bond or a common stock is being merely a certificate. In reality, the certificates
are evidence of a legal document that defines the rights of the security holder and the rights
of the company. A bond contract, for example, may easily be 100 pages or longer. The
investment bank's staff attorneys will construct the bond or stock agreement and submit it to
the Securities Exchange Commission (SEC) for its approval. The SEC will ensure that all
relevant financial details are being disclosed to prospective investors and will authorize the
issue for sale.
B. Market Analysis - The investment banker will then determine the fair price to be placed on
the securities. In the case of bonds, the investment banker will recommend an interest rate
that must be paid in order to achieve an acceptable trade-off: a rate high enough to attract
investors and low enough to be in the company's best interest.

2. Underwriting
To underwrite something means "to assume the risk of loss". In this case, the company that is
issuing new shares needs to be assured that it will raise the amount of money necessary. It
does not want to take the chance that only part of the available shares will be sold and the
company will raise only part of the necessary funds. The investment banker assumes this risk
by underwriting the securities offering. In a typical underwriting, the investment banker
underwrites the issue by buying the entire block of securities at a discounted price from the
company. The investment bank will then mark-up the securities to the full retail price and try
to sell the securities to the investing public.
Investment banking firms will place their own capital at risk by using their own money to
buy the issue. In addition, it will frequently borrow money from commercial banks to raise
part of the funds necessary for the purchase. Even then though, the investment bank may not
have enough money to bad the entire issue or, perhaps, the bank may not want to assume this
much risk. After all, if stock prices fall during the period of the sale, the investment bank will
be forced to sell the stock at the lower price, perhaps even taking a loss on the transaction. So
the investment bank may reduce its risk by inviting other investment banks to participate in
the underwriting. Let's assume that four other investment banks are invited to participate in
the process by buying part of the securities from the issuing firm. These four firms plus the
manager are referred to as the underwriting syndicate.
3. Selling
Each of the investment banks will likely have its own sales force. However, additional
brokerage firms may be invited to help sell the issue in return for a commission on the sale.
These firms may easily number in the dozens for a large issue. Collectively, these brokerage
firms are known as the selling group.


RECENT EVOLUTION OF THE BUSINESS

Investment banking is one of the most global industries and is hence continuously
challenged to respond to new developments and innovation in the global financial
markets. Throughout the history of investment banking,
Many have theorized that all investment banking products and services would be
commoditized.
New products with higher margins are constantly invented and manufactured by bankers
in hopes of winning over clients and developing trading know-how in new markets.
However, since these can usually not be patented or copyrighted, they are very often
copied quickly by competing banks, pushing down trading margins.
For example, trading bonds and equities for customers is not a commodity business, but
structuring and trading derivatives is highly profitable. Each OTC contract has to be
uniquely structured and could involve complex pay-off and risk profiles.
Listed option contracts are traded through major exchanges, such as the CBOE, and are
almost as commoditized as general equity securities.

Investment banking is a particular banking system that allows customers to invest their money
directly or indirectly and also helps companies, government and individual raise fund by means
of bond selling, security sales, mergers and acquisitions and issuing of IPO. Investment banking
gives both the learned and the novice in the investment industry the opportunity to maximize
better dividend of their business or property by way of mergers and acquisitions.
Investment banking helps to boost the economy of the commercial sections of the society in
other words they create more opportunity for both the employed and unemployed ones to raise
capital and make profit.
They also help boost the financial security of a country from possible financial drop down. Every
economy that wants to have a growing financial status must require the services of an investment
banking.

POSSIBLE CONFLICTS OF INTERESTS

Potential conflicts of interest may arise between different parts of a bank, creating the
potential for financial movements that could be market manipulation. Authorities that
regulate investment banking require that banks impose a Chinese wall which
Prohibits communication between investment banking on one side and research and
equities on the other.
Many investment banks also own retail brokerages. Also during the 1990s, some retail
brokerages sold consumers securities which did not meet their stated risk profile.
This behavior may have led to investment banking business or even sales of surplus
shares during a public offering to keep public perception of the stock favorable.
Since investment banks engage heavily in trading for their own account, there is always
the temptation or possibility that they might engage in some form of front running.

Investment banks are social institutions. They are custodians and trustees of the publics money
and promoting national interestsstrengthening the sovereignty of our state technological up-
gradation and reduction of asset distributional inequitiesmust be explicit objectives of their
business strategy.

These objectives will not be unintentionally, automatically achieved by profit maximization. A
strategy has to be crafted which deliberately synthesizes financial viability and profitability
concerns with the concern for safeguarding national sovereignty and promoting national
development.
The investment bank is a financial institution that helps corporate organizations, company and
individual persons to raise enough capital to invest in their projects. Investment banking is all
about money and security trading, turning the paper works into real money. They also helps to
advice you on the proper kind of investment to invest your money into at the right time, in other
words they give professional advice on when to issue a sell or buy request for stocks, bonds and
securities, or better still invest the money for you if given the veto power.
List of investment banks
Standard Bank
Societe Generale
Noble Bank
HSBC
Piper Jaffray
Lincoln Partners
Royal bank Of Canada
Toronto Dominion
Robertson Stephens
OCBC
Bank of Montreal
Bank of Nova Scotia
Close Brothers Group
Fidelity International





Investment banking Duties.
Invest your money: Unlike the commercial banks that helps you to invest your money directly
where you deposit and withdraw money; the investment banks indirectly helps you invest your
money in a chosen market, though this may not be done directly but you would surely get a
maximum returns on your securities. After Gramm-Leach-Bliley Act in 1999, the investment
bank and commercial bank in the US can be incorporated thereby giving them more rooms for
many services. Though the major duties of the investment bank is to offer viable and reliable
advice on how to invest your money properly, buying and selling of acquisitions and trading on
stocks and bonds.
Sales of company stocks: Another duty of investment banking is the sales of company shares
and bond in order to raise funds and capital for government, corporations, companies and
individuals. This is to aid the corporation to raise enough capital funds for the executions of
projects and acquire more property for business.
Buy securities: They also help corporate bodies to buy shares which they believe have a good
value and have a ready and standby buyer whom would make a higher bargain. They act more or
less like the stock broker when it comes to buying and selling of shares. These securities when
traded could help the company in raising more capital.
Managing assets and investment portfolios: Investment banking also helps to manage your
assets. As a corporate body or even a business man, you need the services of an investment bank
to help you in the management of your assets, properties and finance. In a growing business
where more of the finance comes from either the public or banks, there is a higher need of an
investment banks to do the proper management of both the assets and finance.
Offer good financial advice: One of the functions of a good investment banker is to offer a
good and profitable financial advice to clients. This professional advice requires proper research
on when to issue shares to the public in order to raise funds, when not to issue public shares and
also when to acquire a merger. All these and more are the professional duties of an investment
banker. Though there is no 100% assurance that with an investment bank you would get the best
deal, but they would actually help to aid you in getting a better and fairer deal especially on
merger acquisitions.
Employment opportunity in investment banks:
There are so many job opportunities in the investment banks industry due to its wide range of
services and product. You can apply to any investment bank around you if you have the
required qualifications. This includes the following:
Education: The investment industry is a very competitive field of and anyone who wish to get a
job as an investment banker or other job positions in the investment must at least have university
degree, this will give you added advantage over other persons pursuing the same carrier
opportunity.
Good with mathematics: Another added would be having additional knowledge of statistics
and mathematics to secure a job in the investment banking industry.
Know your spreadsheet: This would be very important especially if you are not a degree
holder, but it would be advisable to get an MBA certificate after your internship in the industry.
Be ready to move to NY: If youre considering a carrier in the investment bank and you are
residing in America, be ready to move to NY as most of the major investment banks are in NY.
Experience: Having an experience at least with any other financial institutions would be a great
advantage. Most of the big names in the investment banking sectors prefer to offer job post to
people whom they think are already trained in the financial sector.
Skills: Most investment banking jobs would take a substantial amount of your time and effort,
so a proficient skills knowing what youre doing and liking what you do would take you a long
way in the sector.
Communications: Having strong communication ability is another skill that the investment
banks do look out for when hiring someone for an employment.
Carrier as an investment banker could be very lucrative if the economy is on the good side, but
you could be unemployed if there is a slum in the economy. But this is actually a very good
carrier to pursue because it pays high.
INVESTMENT BANKER
Investment bankers advise their clients on high level issues of financial organization. They
manage the issuance of bonds, recommend and execute strategies for taking over and merging
with other companies, and handle selling a companys stock to the public. The work thus
involves lots of financial analysis, and a strong background in finance and economics is a
necessity. Personal and strategic skills are vital to investment bankers as well, for they serve as
strategists for their clients, helping them develop their financial plans as well as implement them.
At the professions highest level, investment bankers serve as crucial figures in the shaping of
the American and world economies, managing mergers of multibillion-dollar corporations and
handling the privatization of government assets around the world. All this is time consuming,
and investment bankers work long hours. Work weeks of 70 hours or more are common, and all
night sessions before deals close are the rule rather than the exception. Still, the work is
extremely interesting, and those who stay in the profession report high levels of job satisfaction.
Investment bankers spend large amounts of time traveling, to pitch ideas to prospective and
current clients or to examine the facilities of companies being purchased by their clients. In the
office, they spend their time developing strategies to pitch to clients, preparing financial analyses
and documents, or working with the sales forces of their banks in selling the bonds and stocks
which are created by the investment-banking departments activities.
Most commonly, investment bankers who leave the profession go on to financial jobs in-house
with a client of their former banking firm, as financial officers and analysts. It is also not
uncommon for bankers to move on to management consulting, a field which demands many
similar skills. Some bankers get law degrees and become specialists in financial and corporate
law, while lawyers sometimes leave their firms to become investment bankers. Bankers, who
have become sufficiently established, with clients who trust them and reputations for expertise in
their fields, can become entrepreneurs, leaving their firms to set up their own investment banks.



Credit Suisse
In its Investment Banking business, Credit Suisse offers securities products and financial
advisory services to corporations, governments and institutional investors.
Client Offering
We bridge the gap between ideas and action:
We offer a comprehensive suite of products and services managed by accomplished
professionals who exchange ideas and insights on our clients behalf. Many of the worlds
preeminent institutions, businesses, asset managers, hedge funds and governments have
benefited from our expertise. Our investment banking specialists can help you solve your
most challenging problems and capture new opportunities wherever you are in the world.
Research
Research is at the heart of Credit Suisses client offering, and our commitment to exceptional
thought leadership and truly global coverage has never wavered. Our market-leading teams
include strategists, economists, fixed income product analysts and equity sector analysts. Our
macro teams offer insightful top-down forecasting and analysis, while our product and sector
teams provide proprietary insights across asset classes. These groups work in tandem to
provide clients with unique investment intelligence and seamless access to our global views.
Credit Suisse Research Institute
The Credit Suisse Research Institute identifies and provides insights on global themes and
trends. The objective of the Research Institute is to provide our clients with leading-edge
insights by leveraging internal and external expertise, thus reinforcing our integrated global
bank approach.

Investment Solutions
Credit Suisses Investment Solutions Group provides clients with tools and consultative
services to enhance their investment processes. A co-ordinate approach to our proprietary,
market-leading data and analytics products allows us to add value and provide scale in many
areas, including fundamental and quantitative analysis, portfolio reviews, as well as pre- and
post-trade analytics.
Credit Suisse PLUS Analytics
EDGE
HOLT
RAVE
PEERS
Quantitative Services
Global Indices
Credit Suisse provides a comprehensive family of cross-asset tradable indices that give our
clients access to algorithmic and customized strategies as well as a set of benchmark indices
that allow investors to perform relative value analysis and track market performance.

We cover a range of asset classes, including regional and global Equity, Fixed Income,
Commodities, Hybrids and FX. Combined with the power and flexibility of our web-based
analytical tools, we can help our clients more effectively scrutinize the markets.
Macro Research
Credit Suisses Street-leading macro research team offers high-level insights and thematic trends
across world markets as well as timely commentary about political events in an ever-changing
world. Our macro analysts are recognized for their detailed and thoughtful analysis of economic
indicators, the accuracy of their forecasts, as well as their insights into the implications of
government policies.
BARCLAYS INVESTMENT BANKING



Investment Banking provides comprehensive financial advisory, capital raising, financing and
risk management services to corporations, governments and financial institutions worldwide.
It takes an integrated approach to client coverage, providing you with access to bankers who
have industry and geography specific expertise across all investment banking products.


Corporate Finance
Corporate Finance creates sophisticated strategies for clients corporate finance needs. Our
banking structure leverages the expertise of bankers with industry specific and geographic
expertise across all of Barclays' products to provide clients with the most informed strategic
advice and comprehensive financial solutions. Our industry coverage groups include:

Communications
Consumer
Financial Institutions
Financial Sponsors
Healthcare
Industrial
Media
Natural Resources
Power
Real Estate
Retail
Technology
Structured Trade and Export Finance.



Global Finance and Risk Solutions:
Equity Capital Markets
Barclays provides you with a full range of capabilities from IPOs to private equity transactions.
We work with bankers to originate, structure and market equity and equity-linked securities.
Debt Capital Markets
Ranking among the top underwriters of fixed income securities, we develop tailored solutions to
your specific issues, and excel at guiding issuers and investors through difficult markets.
Leveraged Finance
We are a lead arranger and underwriter of debt capital in international and high yield markets
providing you with all aspects of debt financing.
Loans
Providing you with the coverage of a variety of specialist industry sectors, spanning corporate,
financial sponsors, project finance, structured trade, export finance and financial institutions.
Syndicated Lending
Barclays is a leader in the global syndicated loan market. We work alongside our investment
banking team to originate and execute a wide variety of financings.
Mergers & Acquitions.
Barclays global Mergers and Acquisitions (M&A) group delivers strategic advisory services
to companies worldwide. Our capabilities cover the entire spectrum of strategic alternatives
available to clients, including acquisitions, pestitures, restructurings, leveraged buyouts,
takeover defence, special committee assignments and exclusive sales.

Corporate investment banker
Corporate investment bankers provide a range of financial services to companies, institutions
and governments. They manage corporate, strategic and financial opportunities, including
mergers, acquisitions, bonds and shares, lending, privatizations, and initial public offerings
(IPOs). Corporate investment bankers also advise and lead management buyouts, raise
capital, provide strategic advice to clients, and identify and secure new deals.
Investment banking is frequently used as a catch-all term. In reality, banks are made up of
many divisions and investment bankers perform a range of different functions within them.
Traditionally, investment banking encompasses corporate finance, as well as mergers and
acquisitions (M&A). The definition has blurred in recent years and may also include trading
bonds and shares.
Typical work activities:
The main role of a corporate investment banker is to advise companies, institutions and
governments on how to achieve their financial goals and implement long and short-term
financial plans. Corporate investment bankers work in dedicated teams, focusing on specific
transactions or market sectors. They also work alongside other related professionals such as
lawyers and accountants. A typical corporate finance deal involves two stages:
Origination: assessing a deal's desirability, which is sometimes an innovative idea from the
bank rather than the client. Financial models are used to simulate possible outcomes. This
requires a deep understanding of a sector.
Execution: structuring and negotiating the detailed terms of a deal, often in liaison with
other professionals.
Typical activities on a day-to-day basis include:
Thoroughly researching market conditions and developments.
Identifying new business opportunities.
Many investment banks deal in three main areas:
Mergers and acquisitions: assisting clients with expansion to increase profitability,
safeguard market position, diversify, and so on. Corporate investment bankers manage the
transaction process, assessing the target organization and the impact of the deal. This
involves knowledge of legal and regulatory issues, in addition to sound financial knowledge
and an in-depth understanding of the client's industry.
Debt capital markets: working with lenders such as financial institutions, agencies and
public and private companies to support client debt. This includes restructuring debt,
refinancing debt and raising new debt.
Equity capital markets: advising clients on how much capital to raise, from where and
when.
Although dealing with different, specific business areas, project teams liaise with one another
during the two phases of a deal in order to obtain relevant specialist information and market
intelligence.
Investment Banking is the leading Nordic Merger & Acquisitions (M&A) advisor. We advise on
mergers, acquisitions, divestments, spin-offs and public offers. We handle transactions in a
diverse range of industries and have sector experts to provide our customers with deep industry
insight.
Our M&A service offerings include:
Analysis and evaluation of businesses for sale
Identification and screening of potential buyers or target companies
Fairness opinions
Advice on shareholder value enhancement initiatives and other strategic advice
Management of the entire transaction process from initial analysis to final payment
Advice regarding transaction structure
Deal and negotiation tactics.

TD Securities in Investment Banking
Investment Banking provides a full range of financial advisory and capital-raising services to
corporate and institutional clients on transactions with a North American component. We work
closely with our clients to understand their needs. Then we work as an integrated team to bring
unique solutions to bear on complex issues over time. We excel at building long-term client
relationships and executing flawlessly.
Investment Banking is organized into areas of expertise: product, regional and industry.
Each area is critical to ensuring our clients receive the right strategic advice and the capital they
need to realize their objectives.
The Equity Capital Markets Group at TD Securities Inc. is a leader in the origination, structuring,
marketing and execution of all equity and equity-related products. The team works closely with
Investment Banking, Institutional Sales and Trading and Research professionals to deliver
tailored solutions for our clients.
Product Expertise
TD Securities Inc. has book run transactions in a wide range of sectors and products with
underwriting activities ranging from initial public offerings and follow-on offerings to
monetizations and private placements.
Areas of product expertise include:
Common equity and income trust financings
Convertible securities and exchangeable debentures
Warrants and other equity derivatives
Preferred shares
Structured retail products
TD Securities is a leading arranger and underwriter of corporate credit products in the Canadian
and U.S. credit capital markets.

Corporate and Investment Banking
Societe General Corporate & Investment Banking, one of the three pillar businesses of the
Societe General Group, is present in all major markets, with close to 10,000 employees in more
than 34 countries across Europe, the Americas and Asia-Pacific. It is centred on the sound
principles of serving the long-term needs of our clients, sustaining growth by building on our key
strengths, and applying rigorous risk management across our activities.
Investment Banking
Providing clients with strategic advisory and capital raising solutions
Building on our strategic dialogue with clients and on strong relationships based on trust, we
offer a global advisory approach from M&A to capital management. We house top-tier debt and
equity capital market access under one roof and provide integrated and tailor-made capital
raising solutions to accompany our clients strategy, drawing on our leading positions in Debt
and Equity Capital Markets.
Investment and risk management solutions for investors
Our integrated cross-asset platform provides seamless access to global markets across all asset
classes (equities, fixed income & currencies, commodities and alternative investments - from
cash to derivatives). We develop advisory, investment and risk management solutions for the
specific needs of each investor, supported by our number one worldwide equity derivatives
franchise and leading positions in fixed income, commodities and research.
Integrated capital raising, financing and hedging solutions for issuers
Our global financing solutions for issuers encompass debt to equity capital raising, market
leading expertise in structured finance (acquisitions, export, natural resources, infrastructure &
asset based, media & telecom, real estate & lodging).
CASE STUDY
Samriddhi Investment in Gramco Infratech
In August 2013, Intellecaps investment banking practice announced the successful closure of
Series A funding for Gramco Infratech Private Limited. As sole advisors for this transaction,
Intellecap raised INR 15 Cr from the Samriddhi Fund, an impact investor focused on low
income states of India.
Gramco, a company based in Indore, aims to improve farmer incomes through improved
warehousing infrastructure, better financing solutions and stronger market linkages. It offers
a complete bouquet of services to farmers that include storage facilities for agri-commodities,
supply of agri-inputs, commodity financing, contract farming/seed production, fully
automated handling/cleaning/grading and procurement of agri-commodities.
Gramco, incorporated in 2010, currently owns two multi service agri-warehousing facilities
near Indore, and plans to set-up 11 more by FY 2015. It aims to increase the number of
farmers served from around 700 to 10,000 by 2015.
Intellecap worked with the senior management of the Company to help evolve their business
plan in the rapidly changing agri-commodity supply chain industry. Gramco has been able to
devise a growth strategy focused on building the right mix of owned and leased warehouses
to support a variety of business verticals. It balances tight operational controls, geographical
scale, financing constraints and a commitment to serve customers.
The investor outreach process managed by Intellecap culminated in the deal with Samridhi
Fund. The Samridhi Fund was launched as a private sector development programme by
Department for International Development (DFID) of UK Government in partnership with
Small Industries Development Bank of India (SIDBI). The structured transaction will bring
on board an investor who is aligned with the Companys mission and is cognizant of the
challenges that early stage companies face, especially in Indias agribusiness sector.

Norwest Investment in Nationwide Primary Healthcare



Nationwide Primary Healthcare provides personalised General Practitioner (GP) services and
paediatric care to individuals, families, and corporate groups in India. The Company's primary
focus is on proactive management of every day ailments and effectively managing chronic
conditions. The Company plans to open 1,500 clinics across India over the next 5 years,
revolutionising primary healthcare in the country.
In August 2012, Intellecap facilitated an investment of USD 5 million from Norwest Venture
Partners into NationWide. A major part of the current investment will be utilized to rapidly expand
operations over the next 18 months and set up a total of 120 clinics in Bangalore. Norwest is a
prominent Venture Capital firm headquartered in the U.S.
The raising of this capital for Nationwide was particularly challenging and innovatine since the GP
model is a new business model in India. Nationwide was also a Sankalp 2012 finalist in the
Healthcare, Water & Sanitation segment.

Europes debt crisis risks putting investment banks out of business.
Europes failure to resolve its sovereign-debt crisis will force investment-banking chiefs in the
region to consider shuttering entire businesses rather than rely on piecemeal job reductions to
revive profit.
Deal making fees may drop 25% this year from 2009, when the crisis began in Greece, research
firm Freeman & Co. estimates. European banks, including UBS AG and Barclays Plc, have cut
about 172,000 positions since then, according to data compiled by Bloomberg, the same strategy
they used after Lehman Brothers Holdings Inc. collapsed in 2008.
Investment banks have to shrink and do more than cut a little bit here and there

The game plan wont work again as rising capital requirements and declining business alter the
investment-banking landscape, investors and analysts say. New rules will reduce return on equity
by 6 percentage points from about 14% in the first half of 2011, according to consulting firm
Bain & Co. Banks that relied on record low interest rates and a flood of cheap funding from the
European Central Bank to delay deciding which units to close will be compelled to make
choices.
Investment banks have to shrink and do more than cut a little bit here and there, said Lutz
Roehmeyer, who helps oversee 10-billion euros (US$12.5-billion) at Landesbank Berlin
Investment in Berlin. Theres too much politics and too little economics going on. They want to
keep certain businesses for as long as possible.
Some firms are cutting deeper. UBS, Switzerlands largest lender, is reducing its fixed-income
operations to focus on wealth management because of stricter capital requirements imposed by
regulators and a weak revenue outlook linked to the continuing debt crisis. Still, even for all the
job cuts, most European investment banks havent made significant changes since the upheaval
that accompanied the collapse of Lehman Brothers, said Joao Soars, a partner at Bain in London.

RESEARCH AREAS
Most major investment banks employ a research staff that performs the risk, economic, and
financial analysis used to support internal operations, from acquisitions and mergers to
formulating trading positions in world, US, and regional markets. The profitability of an
investment bank is directly related to the quality of its research analysis. Researchers in
investment banking usually have strong math skills in stochastic calculus, differential equations,
or other advanced mathematical fields. They have also taken classes in advanced financial theory
like bond valuation and options pricing.
Investment banking is an area of finance in which banks assist various companies and
governmental entities with their financial needs. Investment banks assemble and supply the
capital needed by business to expand, merge and acquire other businesses. They are
intermediaries between corporations issuing new debt and equity securities and investors that
buy the securities. They may also create markets for new securities, facilitate trades between
buyers and sellers or perform other financial services, such as market and acquisition advice and
market analysis. The major areas of investment banking include corporate finance, sales, trading,
and research. A large part of investment banking is simply developing the relationships with
potential buyers of new securities and with corporations or governments that want to issue new
securities or acquire other companies. The larger investment banks work on a global level with a
number of foreign investment banks that participate in the US market.
Investment banks are well known for the long hours they require from their entry-level workers
as well as a somewhat stressful work environment. They are often under great pressure to meet
deadlines and generate new business. This is often balanced, however, by large salaries. Some
jobs require extensive travel, especially in corporate finance and mergers and acquisitions
departments. Most investment banks strongly emphasize teamwork, and as such they often
promote socialization among the staff members. Because customer relations are so important,
investment bankers often get to take their clients to exclusive restaurants, sporting events, and
other exclusive places.

CONCLUSION
Producing a gargantuan report into the prospects for the investment banking industry seems to be
the de facto thing to do this year. J.P Morgans research team has done so, as has SocGens and
now German bank Berenberg has produced a 128-page report after initiating coverage of UBS,
Credit Suisse and Deutsche Bank.
Investment banks, have expanded into too big to fail behemoths, hard-wired into the financial
system and cover as many product areas and asset classes as they possibly can. This is a mistake;
the all things to all people strategy is paralysing the banks, says Berenberg. In an ideal world,
those investment banks that are part of a larger financial group should separate, while others
need to focus on their core competencies. Unfortunately, neither of these seems likely.
1. Investment banks need to separate, or shrink, but are terrified to do so
2. Revenues will be capped at 2005 levels
3. Premier League syndrome means that comp ratios will stay high
4. Investment banks employees have been the main beneficiaries of growth
5. Bonuses should be used as the first buffer in the event of a loss
6. OTC derivatives reform could hit revenues by 25%
7. There are three options for reducing costs by 30% none of them are good
8. J.P Morgan and Deutsche Bank have the most productive employees.


BIBLIOGRAPHY
Books Referred:
Investment Banking, by Michael Fluorite
Investment Banks & Private Equity, by David Stowell
Dictionary of Finance, Investment and Banking, by Erik Banks
The Business of Investment Banking: A Comprehensive Overview, by K
Thomas Law.
Websites Referred:
WWW.google.com
WWW.Yahoo.com
WWW.Investmentbanking.com