scholarly journals How ‘Global’ are Investment Banks? An Analysis of Investment Banking Networks in Asian Equity Capital Markets

2019 ◽  
Author(s):  
Kurtulus Gemici ◽  
Karen Lai
Keyword(s):  
Capital Markets ◽  
Investment Banking ◽  
Equity Capital ◽  
Investment Banks ◽  
Banking Networks

Freeport-McMoRan: Financing an Acquisition

2017 ◽  
pp. 1-19
Author(s):  
David P. Stowell ◽  
Peter Rossmann
Keyword(s):  
Capital Markets ◽  
Credit Ratings ◽  
Investment Banking ◽  
Equity Capital ◽  
Debt Financing ◽  
Investment Banks ◽  
Publicly Traded ◽  
Optimal Capital Structure ◽  
Optimal Capital

Freeport-McMoRan's acquisition of Phelps Dodge created the world's largest publicly traded copper company. JPMorgan and Merrill Lynch advised the acquirer and arranged $17.5 billion in debt financing and $1.5 billion in credit facilities. In addition, these two firms underwrote $5 billion in equity capital through simultaneous offerings of Freeport-McMoRan common shares and mandatory convertible preferred shares. These financings created an optimal capital structure for the company that resulted in stronger credit ratings. The activities of the equity capital markets and sales groups at the underwriting firms are explored and the structure and benefits of mandatory convertible preferred shares is explained.To understand the role of investment banks in advising a large corporation regarding an acquisition and related financings in the capital markets. As part of this, the activities of an investment banking firm's equity capital markets group and their underwriting risks are analyzed. Finally, the structure of a mandatory convertible security is reviewed in terms of benefits to both issuers and investors.

scholarly journals A Study and Analysis of Investment Banking and Regional Development Among European Economy

2021 ◽  
Vol 5 (2) ◽  
pp. 107-113
Author(s):  
J. Jose Prabhu
Keyword(s):  
Capital Markets ◽  
Investment Banking ◽  
Secondary Market ◽  
Investment Banks ◽  
Financial Intermediaries ◽  
Individual Investors ◽  
The People ◽  
Capital Financing ◽  
Current Scenario

Investment banks are financial intermediaries that specialize in the sale of securities and the issuance and underwriting of new shares to raise capital financing. Investment banking is a special segment of banking that assists individuals or organizations to raise capital in the main market. In the tea market, new securities are issued and act on behalf of customers, thus playing an important role in the secondary market. Investment banks undertake new debt or equity securities for all types of businesses, support the sale of securities, and facilitate mergers and acquisitions by institutional and individual investors. Investment banking organizations act as intermediaries between investors and capital markets. Investment banks are becoming important in European capital markets due to many factors including the perception of investment banks among investors and the various other functions implemented by investment banks. The research paper aims to show the role of investment banks in the current scenario. This study is descriptive in nature and uses auxiliary data. The study reveals the growth, development, function and role of investment banking in the European economy. The main objective of this investigation is to clarify how investment banks play a role in increasing a country’s resources and economic growth. It analyzes the various functions performed by investment banks. Investment banks connect the people who sell securities with their investors. Investment banks add liquidity to the market. Investment banks promote savings and investment and eliminate capital shortages. Mobilize small, scattered savings in the community so you can invest in productive businesses. He concluded that the role of investment banks in economic development is important.

Comovement and Investment Banking Networks

2010 ◽  
Author(s):  
Gustavo Grullon ◽  
James Peter Weston ◽  
Shane Underwood
Keyword(s):  
Investment Banking ◽  
Banking Networks

Equity Capital Markets

2017 ◽  
pp. 481-502
Author(s):  
Daniel C. Menocal, Jr.
Keyword(s):  
Capital Markets ◽  
Equity Capital

Researching Deals and Markets

2017 ◽  
Vol 17 (4) ◽  
pp. 229-232 ◽  
Author(s):  
Ian Hunter
Keyword(s):  
Mergers And Acquisitions ◽  
Capital Markets ◽  
Financial Sector ◽  
Investment Banks ◽  
Law Firms ◽  
Big 4

AbstractMergers and acquisitions (M&A), leveraged finance and capital markets are important markets for professional advisory firms such as investment banks, financial sector law firms and the ‘Big 4’ consultancies. While market totals are widely published in free sources, finding both sub-totals and lists of deals is more difficult and usually requires access to paid-for sources. In this article Ian Hunter considers the best paid-for and free sources and looks at the caveats in relying on them. In essence, he asks ‘why don't the sources agree?’ and provides a ‘jargon buster’ and a critique of sources in M&A, leveraged finance and capital markets.

scholarly journals The Role of Investment Banking in M&A Operations: Empiric Pre and Post Lehman Evidence

2014 ◽  
Vol 1 (2) ◽  
pp. 51
Author(s):  
Vincenzo Capizzi ◽  
Renato Giovannini
Keyword(s):  
Investment Banking ◽  
Total Sample ◽  
Time Frame ◽  
Investment Banks ◽  
Measuring System ◽  
Lehman Brothers ◽  
Time Frames ◽  
The Impact ◽  
The Relationship

The role of investment banks in M&A operations is analyzed on the basis of empiric evidence. In particular, to point out the variations in the impact of the certification effect which can be ascribed to investment banks, the relationship between the value created for the shareholders in companies involved in special underwriting operations and the reputation of the banks appointed to act as advisors is examined. The analysis, which uses an original measuring system in order to assess and classify the reputation variable, focuses on transactions that have taken place between listed companies in two time frames, symmetrical to each other, specifically pre and post the Lehman Brothers bankruptcy. The total sample is composed of 229 transactions, divided into 161 and 68 observations, respectively pre and post Lehman. The result is that in the post Lehman period, unlike the preceding time frame, for which no significant empiric evidence is found, the wealth of the shareholders (of both targets and acquirers) is significantly influenced by the reputation of the investment banks which have acted as advisors. This indicates that, subsequent to the shock of the Lehman Brothers collapse, the certifying effect of the investment banks takes on an important role in the shareholders' choice.

Cheap oil will increase Middle East debt issuances

2016 ◽  
Keyword(s):  
Middle East ◽  
North Africa ◽  
Capital Markets ◽  
Banking Industry ◽  
Corporate Bonds ◽  
Investment Banking ◽  
Short Term ◽  
Investment Bank ◽  
Content Type ◽  
Financial Holding

Significance This, with his recently acquired Beltone Financial Holding SAE, will create Egypt's second largest investment bank. Yet the profitability of the Middle East and North Africa (MENA) for the investment banking industry is unlikely to rise in the short term. Impacts Demand for Middle East bonds in 2016 will decline compared to 2014 and the first half of 2015. Yields will increase and issue size will decline, particularly for the weaker Gulf economies, Bahrain and Oman. This will reduce investors' interest in corporate bonds, which will mean more companies may cancel issues. In North Africa, lacklustre capital markets will not see enough reform to generate a recovery there.

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