Corporate Investment Banking

Banks are one of the most stable financial institutions created by man to help in his advancement and the management of his finances. Banks represent the clients and their transactions. Banks are expected to be honest and honorable in their activities. Because a lot of different financial activities are catered by the banks, it became necessary to separate them across a thin border line that would specify their transactions and services. Therefore, banks of different interests were born.

Among the many banks that serve various clients, it was again necessary to differentiate the types of clients that the banks handle in order to provide a specific choice that would be most beneficial to both the bank and the client. Banks that offer their services to the general public and mid-market businesses can be categorized as retail banks while those that offer their services to business companies and corporations can be categorized as corporate banks. Also, those banks that are most capable in dealing with the aspects of the financial market can be categorized as investment banks.

Banks with corporate investment banking services can therefore be deduced as those that are adept in financial market transactions, which involve businesses and corporations. These corporate investment banks act as the middle agents and arrangers of transactions and acquisitions of controlling interests in various established companies, which are usually operating on a global scale. These banks mainly focus on developing and multiplying the invested capital legally while maintaining the security that the clients need.

Those who are in corporate investment banking have a wide range of clients. Therefore, they have lot of responsibilities that involve all the aspects of corporate transactions. Growing businesses will benefit from the guidance that the corporate investment banks can bestow on them. At the same time, the middle-market companies and large-scale corporations can transact securely with the assistance of these banks.

The various financial services that included in corporate investment banking can include merger advisory, exclusive sales and divestitures, and buy-side and sell-side advisories. Trading and the promotion of cash and securities comprise the sell side while various transactions involving the clients who need to maximize their profits on the investments comprise the buy side.

The corporate clients invest in the bank, which, in turn, takes the risk of investing the clients’ investments in the ever-unpredictable world of the financial market. This is a huge risk for the bank to take on behalf of its clients because it stands to lose its money and its reputation if its transactions are erroneous. To help the corporate clients manage their investments, the bank assists them even after the actual buy. This can take the form of various investment management programs and advisories that would help the clients maintain security in their purchased shares and bonds to meet the specific goals that these clients targeted. The main purpose is to protect the clients and their investments.

A good corporate investment bank offers the clients a constant risk management support. This support helps the clients analyze and solve the various risks that they are going to experience in order prevent erroneous trades.