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Being the facilitator or the mediator is also one of the key features of investment banking companies. The biggest of the mergers and acquisitions happening in the country must be under the glance of the investment banking company.
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What Major Roles Do Investment Banking Companies Play www.avendus.com/india
The Big, Wide World of Investment Banking In this big wide financial world out there, investment banking is one of the most talked topics. Rightly so, thanks to the enormous number of HNI clients that it deals with and the adrenaline pumping gamble that it brings along with it. There are so many vital roles that an investment banking plays in the industry of finance and investment. It also plays a key role in helping the clients attain the financial goals. Let us look at some of the major functions performed by them. www.avendus.com/india
Underwriting Handling of debt and equity securities from the public offerings is one of the core foundation of investment banking. Although the underwriting can seem to act as a guarantee that every party in question, be it the bank the members will abide by the laws and will also be bonded to purchase securities from company that is issuing it. the two approaches the firm can take are best efforts and commitment. www.avendus.com/india
Being the Mediator Being the facilitator or the mediator is also one of the key features of investment banking companies. The biggest of the mergers and acquisitions happening in the country must be under the glance of the investment banking company. Although most of the mergers and acquisitions are done with mutual understanding, the investment banking firm optimizes the price and terms so that it happens at the best price possible and everyone is a winner here. www.avendus.com/india
Furthermore Functions They are also involved in the recapitalization of the companies and helping them to reorganize in case any of the companies face some major issue or trouble. As a mediator, the investment bank aims to reduce the conflict, if any, as much as possible and see to it that the entire process happens smoothly without any hostile attacks and defenses in financial terms. www.avendus.com/india
Risk Management Some of the most recurring terms that we hear in a financial market are, fluctuating interest rates, commodities though swaps, changing rates of foreign exchange and so on. Swap is a mechanism built through which two or more parties can easily swap their obligations of debt to help control each party’s risk in a more efficient manner. If there is found to be difference in credit ratings, then the parties can exchange the obligations. The majorly involved groups can bring their expertise together in order to develop good strategy and manage the risk. www.avendus.com/india
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