Why Investment Banking?

Investment banking is a very competitive and lucrative area, offering

tremendous growth opportunities.

An investment banking career provides great challenge, a chance to

learn the ins and outs of corporate finance, and develop analytic skills that are useful in any business field.
Investment bankers, with firms such as Goldman Sachs, Blackstone

Group and Morgan Stanley, act as a link between the corporate world and the investor, whether an individual or an investment fund. This sector offers excellent job opportunities for hard working finance students and professionals who are ready to face the challenges provided by globalization and consolidation.

Flow chart of the project

Investment Banking Introduction
Structure of Investment Bank Functions of Investment Bank Valuation Methods in Investment banking Funding/ Investment Decision Making Skills

Financial Modeling: Introduction, Cash Flows

Legal/Regulatory Compliance in Investment Banking

Investment banking activities

Underwriting Acting as an intermediary between an issuer of

securities and the investing public

Facilitating mergers and other corporate reorganizations Broker for institutional clients.

Investment Banking
Working with companies Strategy and raising equity or debt
Debt Capital Markets (Raising debt for companies through

Leveraged Buy-Outs, High Risk, Real Estate and Government/Investment grade debt) Mergers & Acquisitions (Advising companies on strategy) Financial Institutions (Banking for other banks and financial institutions) Equity Capital Markets (Raising equity for firms, IPOs) Very rewarding career, opportunities for travel, experience of working with top companies throughout Europe Close contact with top management of firms, CEO/CFO Need to be analytical and team player

The ten largest global investment banks as of December 31, 2010, are as follows
Rank Company

1.
2. 3.

J.P. Morgan
Bank of America Merrill Lynch Goldman Sachs

4.
5. 6. 7.

Morgan Stanley
Credit Suisse Deutsche Bank Citi

8.
9. 10.

Barclays Capital
UBS BNP Paribas

Valuation In Investment Banking

valuation is the process of estimating what something is worth. Valuations can be done on assets (for example, investments in

marketable securities such as stocks, options, business enterprises, or intangible assets such as patents and trademarks) or on liabilities (e.g., bonds issued by a company).
Valuations are needed for many reasons such as investment analysis,

capital budgeting, merger and acquisition transactions, financial reporting, taxable events to determine the proper tax liability, and in litigation.

Valuation of financial assets is done using one or more of these types of models:
Absolute value models that determine the present value of an asset's expected future cash

flows. These kinds of models take two general forms: multi-period models such as discounted cash flow models or single-period models such as the Gordon model. These models rely on mathematics rather than price observation.

Relative value models determine value based on the observation of market prices of

similar assets.

Option pricing models are used for certain types of financial assets (e.g., warrants, put

options, call options, employee stock options, investments with embedded options such

as a callable bond) and are a complex present value model. The most common option
pricing models are the BlackScholes-Merton models and lattice models.

The Indian scenario

IB continues to flourish
The separation of commercial banking from the securities business was not complete,

however.
The Glass-Steagall restrictions applied only to corporate securities. Subsidiaries of bank holding companies were always allowed to deal in Treasury securities

and to underwrite municipal bonds.

Moreover, Glass-Steagall related only to publicly traded securities. Banks were quite active in the private placement market. Finally, the Glass-Steagall Act did not apply outside the US. American commercial banks engaged in the securities business overseas and U.S.

securities firms (investment banks) had overseas subsidiaries engaged in commercial

banking.

Benefit From Research

Investment banking project offers several advantages to finance professionals looking to augment their existing skill set or knowledge base, or to workers in other fields who may be interested in an

investment banking job.

Thank you!!!