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Innovative financing opportunities in the global capital markets. Presented by: Aftab Q. Munshi Chief Executive Officer ALHabib Capital Market (Pvt.) Ltd. Structure of presentation. Identify innovative financing opportunities in the global capital markets
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Innovative financing opportunities in the global capital markets Presented by: Aftab Q. Munshi Chief Executive Officer ALHabib Capital Market (Pvt.) Ltd.
Structure of presentation • Identify innovative financing opportunities in the global capital markets • Raising funds through the global capital markets • Global Meltdown – A quick review • Case study from Pakistan • Conclusion
Introduction – Innovation in financial products • Identify innovative financing opportunities available in the global capital markets; • Appreciate that these financial increased the debt capacity of countries and firms alike;
Raising funds through the global capital markets(Benefits & Risks) • Equity Financing; • Debt Financing; • Hybrid Securities; • Securitizations of Assets; • Leveraged Finance; • Money Markets Products; • Remittance securitization;
Global Meltdown – Challenges & Opportunities • Types of mortgages: • Prime Mortgages; • Near-Prime Mortgages; • Sub-Prime Mortgages;
Global Meltdown – Challenges & Opportunities • Root causes:- • Lower lending standards; • Easy credit; • Providing mortgage loans to sub-prime borrowers; • Excessive borrowing by financial institutions to invest in structured financial products; • Who bore the brunt? • Private Equity; • Investment & Commercial Banks;
Global Meltdown – Challenges & Opportunities • Preventing a systematic collapse:- • Extra-ordinary steps taken by governments and central banks;
Case study from Pakistan • Economy of Pakistan • Pakistan's linkage with the global capital markets (Eurobond 2017, Eurobond 2036, Pakistan Islamic Bond (Sukuk AL – Ijara), Global Depository Receipts, Securitization of Remittances)
Conclusion • Global capital markets are fast turning out to be a very beneficial tool for developing countries to address their liquidity needs and to bring themselves on the radar of foreign investors. If implemented on the sidelines of strict fiscal and monetary discipline, it should allow developing countries to move on the path of self reliance without compromising on their economic sovereignty.
Q & A Thank You