新編金融英語教程Chapter13InvestmentBanks課件

1、Investment BanksChapter 13Lead-inLanguage NotesKey PointsFollow-up Tasks13.113.313.213.4CONTENTS13.5Extended Tasks13.1Lead-inThis chapter will first of all look at the definition of investment banks. Then it will introduce the structure and components of the investment banking industry. Thirdly, it

2、will explain the functions of investment banks. Then it will introduce the operations of investment banking. It will also go on to talk about the new development of the investment banking after the devastating 2008 financial crisis.An investment bank is usually a private company with the aim of prov

3、iding different kinds of financial and other services to individuals, corporations, and governments.Investment banks have two major types of business, which are called the sell side and the buy side respectively.The functions of an investment bank can be divided into private and public.In the United

4、 States, it is the licensed broker-dealer that is allowed to provide investment banking services.Investment Banks13.2 Key Points13.2.1 Definition of Investment Banks13.2 Key Points13.2.2 Size, Structure, and Composition of the IndustryThese firms have more limited branch networks. They focus on majo

5、r cities responsible for working with institutional investors.the large investment banksthe diversified financial service or national full-service investment banks.the largest firmsspecialize more in corporate finance or primary market activities and are less active in trading securities, or seconda

6、ry market activities.the national full-service firmsothersRegional securities firmsSpecialized discount brokersSpecialized electronic trading securities firmsVenture capital and private equity firms13.2 Key Points13.2.3 Functions of Investment Banks help corporations issue new shares of stock in an

7、initial public offering or follow-on offering.evaluating the worth of a possible acquisition and helping parties arrive at a fair price. deliver strategic advice on a variety of financial matters.review companies and author reports about their prospects.Front office vs back officeThe front office ge

8、nerates the banks revenue.Back office typically includes operations and technology.The research divisionMergers and acquisitionsfinancial advisorsfinancial intermediaries13.2 Key Points13.2.4 Operation of Investment BankingThough experienced analysts use their expertise to accurately price the stock

9、 as best they can, the investment bank can lose money on the deal if it turns out that they have overvalued the stock.Investment banks will often compete with one another for securing IPO projects, which can force them to increase the price they are willing to pay to secure the deal with the company

10、 that is going public.Investment banks employ investment bankers who help corporations, governments, and other groups plan and manage large projects, saving their client time and money by identifying risks associated with the project before the client moves forward.Essentially, investment banks serv

11、e as middlemen between a company and investors when the company wants to issue stock or bonds.13.2 Key Points13.2.5 Investment Banking after the 2008 Financial Crisis72%the pure investment banks had to transform themselves into bank holding companies (BHC) to get government bailout money. The flip-s

12、ide is that the BHC status now subjects them to the additional oversight.investment banking advisory fees have recovered from a low of $66 billion in 2008 to a high of $96 billion by 2014, only to come back down to $74 billion in 2016, as IPOs declined sharply over the last couple of years. Since 20

13、08, banks have been operating in a far more highly regulated environment, while historically low-interest rates make it harder for banks to generate profits. acquisition kwzn 收購banker bk(r) 銀行家entity entti 實體equityekwti 股權(quán)holding hld 控股rating ret 評級revenue revnju: 收入shakeout ekat 股票市場震動underwrite nd

14、rat 承銷13.3 Language NotesI. Wordsancillary services bank holding company (BHC) Bank of America Bear Stearns boutique investment banks corporate customers debt financing equity capital Financial Industry Regulatory Authority (FINRA) 13.3 Language NotesII. Phrases financial services holding companiesf

15、lip-sidefull-line firms full-service investment banks Goldman Sachs hedge funds J.P. Morgan the U.S. Treasury 美國財政部unit of account計量單位institutional investors insurance contracts insurance premiumsinvestment banks issuance of securities issue sharesLehman Brothers licensed broker-dealer market making

16、mergers and acquisitions (M&A) 13.3 Language NotesII. Phrases Merrill Lynch Morgan Stanley private equity funds prospectus retail banks securities brokerage business Securities and Exchange Commission (SEC) stock market crash subprime mortgage market unit trusts 1. The investment banking industry la

17、ys its emphasis on securities trading and underwriting rather than longer-term investment in securities.2. First are the largest firms, namely the diversified financial service or national full-service investment banks, which serve for both retail customers (especially by acting as broker-dealersass

18、isting in the trading of existing securities, or secondary market transactions) and corporate customers (by securities underwritingassisting in the issue of new securities, or primary market transactions).3. Perhaps, even more, concerning for investment banks is the reputation damage suffered during

19、 the financial crisis. The ability to hire and retain the best and brightest is perceived on Wall Street as the secret sauce for long-term sustainable growth.4. While large service investment banks offer all lines of business, including both the sell side and the buy side, smaller sell-side investme

20、nt firms such as boutique investment banks and small broker-dealers focus on investment banking and sales/trading/research, respectively.5.The greatest global financial crisis since the Great Depression was triggered in 2008 by multiple factors including the collapse of the subprime mortgage market,

21、 poor underwriting practices, overly complex financial instruments, as well as deregulation, poor regulation, and in some cases a complete lack of regulation.13.3 Language NotesIII. Sentences 13.4 Follow-up TasksI. Matching( )1.initial public offering A. 中國墻( )2. issue new shares B. 零售客戶( )3. Chines

22、e wall C. 共同基金( )4. pre-underwriting counseling D. 首次公開發(fā)行( )5. credit environment E. 股票分析( )6. financial statusF. 發(fā)行新股( )7. life insurance companies G. 信貸環(huán)境( )8. mutual funds H. 預承銷咨詢( )9. retail customers I. 人壽保險公司( )10. stock analysis J. 財務(wù)狀況Directions: Match the English words and phrases in the l

23、eft column with the proper Chinese equivalents in the right column. 13.4 Follow-up TasksII. JudgmentsDirections: Decide whether each of the following statements is true (T) or false (F). 1.Generally speaking, investment banks are public companies that offer financial and other services to people and

24、 organizations. ( )2.Like commercial banks and retail banks, investment banks take deposits, too. ( )3.The private functions of the investment banks can protect the privacy of their customers. ( )4.Investment banking is divided into front office and back office activities. ( )5.The businesses of inv

25、estment banks are conducted globally rather than locally. ( )13.4 Follow-up TasksIII. Short Answer Questions Directions: Answer each of the following questions briefly.1.What is the sell side of investment banks responsible for?2.What is the buy side of investment banks responsible for?3. Can you li

26、st three or more common types of buy-side entities?4. How did the financial crisis in 2008 change the structure of investment banks?5. Can you elaborate on investment banking? 13.4 Follow-up TasksIV. Translation Directions: Translate the following Chinese paragraph into English.投資銀行是指主要從事證券發(fā)行、承銷、交易、企業(yè)重組、兼并與收購、投資分析、風險投資、項目融資等業(yè)務(wù)的非銀行金融機構(gòu)。投資銀行是證券和股份公司制度發(fā)展到特定階段的產(chǎn)物，是發(fā)達證券市場和成熟金融體系的重要主體。在現(xiàn)代經(jīng)濟發(fā)展中，投資銀行在溝通資金供求、構(gòu)造證券市場、推動企業(yè)并購、促進產(chǎn)業(yè)集中和規(guī)模經(jīng)濟形成、優(yōu)化資源配置等方面發(fā)揮著重要的橋梁作用。Money makes dogs dance.English proverbThe worst mistake investors make is taking their profits too soon