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Investment and Corporate Banking
04-04-2008, 03:04 PM
Post: #1
Investment and Corporate Banking
Wat is investment banking and corporate banking

and wats the difference between them
are they comparable
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04-04-2008, 08:32 PM
Post: #2
 
Investment Banking helps companies and governments raise money by issuing and selling securities in the capital markets (both equity and debt), as well as providing advice on transactions such as mergers and acquisitions. Until the late 1980's, the United States and Canada maintained a separation between investment banking and commercial banks.

A majority of investment banks also offer strategic advisory services for mergers, acquisitions, divestiture or other financial services for clients, such as the trading of derivatives, fixed income, foreign exchange, commodity, and equity securities.

<b>Corporate banking</b> is the broad term given to different banking services that large companies, governments, or other big institutions need in order to function day to day.

Responsibilities range from the relatively simple business of issuing loans to more complex matters, such as helping minimize taxes paid by overseas subsidiaries, managing changes in foreign exchange rates, or working out the details of financing packages necessary for the construction of a new office, plant or other facility. If an organization is exporting overseas, corporate bankers might arrange a process of international payment or put together "trade finance" packages to ensure the firm is paid by foreign customers.

In many cases, there's an overlap between corporate banking and capital markets. Bankers working in capital markets help companies raise money by issuing equities or debt. Corporate bankers typically help clients raise money through loans. When necessary, corporate bankers will bring in the expertise of their capital markets colleagues.

Increasingly, corporate banking requires an understanding of complex financing methods like securitization, where a company sells bonds based on the money it will in earn in the future from assets such as rented shop space or a back catalogue of products.

Hope that helps!!!
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04-05-2008, 03:18 PM
Post: #3
 
thanx astute
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