Complete Guide To Investment Banking

An investment bank is a private company that offers finance related and other services to governments, corporations, and individuals. Services provided by an investment bank are concerned with raising financial capital by the way of underwriting or functioning as the client’s agent in issuance of the securities. Sometimes investment banks may also help companies involved in M&A (mergers and acquisitions) and provides supportive services such as trading of derivatives and equity securities, market making, as well as FICC (fixed income instruments, currencies, and commodities) services. Investment banks are a lot different from commercial and retail banks as they do not serve for deposits. An investment bank is a bank that buys huge holdings of share and sells them again to investors.

All the functions of an investment bank are classified either as “sell side” or “buy side”. The “buy side” is all about the provision of advice to the institution that are purchasing investment services and the “ sell side” is all about trading securities for other securities or for promotion of other securities or for cash. Some of the most common buy side entities are- private equity funds, life insurance companies, mutual funds, hedge funds, and unit trusts.

Investment banking services

Investment banking provides the following services:

  • IPOs :

    Investment banks promote public and Private Corporation’s Initial public offering (IPO) by offering underwriting services. These banks also act as mediators in trading for foreign exchange management and clients.

  • Investment management

    Investment banks do provide advice to the investors to purchase, trade and manage various securities and many other assets such as hedge fund, real estate, mutual funds and many more.

  • Boutiques

    Small investment banking firms that offer financial services are known as boutiques. These boutiques mainly function in trading bonds, offering technical analysis, and advising for mergers and acquisitions.

  • Structuring of derivatives

    This section is related with abundant and technical sound employees working on complex structured derivative products.

  • Merchant banking

    Merchant banking is all about private equity services of investment banks

  • Research

    This service of investment banks is related with reviewing and writing reports about the company and their prospectus along with “buy” or “sell” ratings. This information is helpful in guiding investors and in some cases mergers and acquisitions too.

  • Risk management

    Investment banks do offer a service of risk management. This service is concerned with identifying and analyzing the credit risks and markets that traders are going to take against the balance sheet for carrying out their daily trades.

Business Banking

Business banking is concerned with banking and financial facilities to the SME markets and small businesses. It is related with lines of credit, business loans, transaction account, trade finance, cash management, managing payments and all the other business related products offered to companies not to individuals.

Online banking

Online baking is also called as internet banking. It is an electronic payment system that allows customers of a financial institution or a bank to carry out a range of financial transactions through the financial institution’s website. Online banking has enabled permanent access to banks and one can access the bank anytime and anywhere using computer or mobile. Online banking is a very safe and secure method that is helpful in transferring the money accurately and immediately. It is less time consuming and very easy to use.

Relius International bank

Relius international bank is a leading private bank offering best investment financing services. Relius international bank also offer many other services too such as business banking, business finance, trade finance, daily banking, asset management, wealth banking, trading and execution, offshore banking etc. Relius international bank provides solutions that are specially structured for individual needs.

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