Investment Banking IT

Goals

To provide an overview of functions of investment banks, their IT spend, and software used.

Early Findings

Functions

Underwriting New Stock Issues

  • Investment banks act as intermediaries between companies and investors through initial public offerings (IPOs).
  • Companies hire investment banks to offer IPOs. Investment banks will "set everything and list IPO in a stock exchange".

Merger and Acquisitions

  • Investment banks help companies to purchase/join other companies. They might represent the seller or the buyer in the M&A transaction.
  • The banks provide funds and also issue new securities to the market.

Risk Management

  • Investment banks help organizations to manage financial risks. The banks highlight the risks and how they can be handled.
  • These risks include "business risk, investment risk, legal & compliance risk, and operational risk".

Research

  • The aim of investment bank research is to give a rating of the business and enable investors to make an investment decision.
  • Types of research include "equity research, fixed income research, macroeconomic research", and qualitative research.

Structuring of Derivatives

  • Investment banks prepare derivatives in order to attract investors. The derivatives may be based on single or multiple securities.

Merchant Banking

  • Investment banks may provide consultancy services to companies.
  • This may include raising funds, project management, leasing services, money market operations, portfolio management, and broker in stock exchange.

Investment Management

  • Investment banks guide investors in purchasing and managing their portfolio.
  • They also prepare reports based on performance and use the reports to make decisions on financial securities.

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