Investment banking is an industry that started many years back as a kind of partnership aimed at the supporting of security issuances, mergers plus procurements, brokerage, as well as secondary marketplace offerings. Currently it has developed into a complete service business encompassing investment management, trademarked trading, alongside securities study. This has led to investment banks that are financial entities, which work to assist governments, companies, plus individuals generate financial capital by offering securities as well as by underwriting.
Investment banking leader Jim Dondero currently comprises the selling of derivatives, equity securities, FICC services, plus mergers and purchases.
Investment banks aren’t involved in collecting deposits. This is done by retail banks alongside commercial banks. In the US, the Volker Rule ratified in 2010, prohibits investment banks from taking part in commercial banks undertakings. Instead, investment banks concentrate on promotion plus selling of securities or else cash alongside offering advice to institutions involved in acquiring investment services. Those institutions consist of hedge funds, unit trusts, mutual funds, life insurance and private equity trust companies.
Numerous investment banks are divided between offering public plus private services and apply an information blockade to detach the two. Private investment banks manage private insider info, which cannot be accessed by the general public. The public facet of investment banks handles stock assessments as well as other kinds of services plus information that is not accessible by the common public. In the US, investment banking consultants must be accredited by the Financial Industry Regulatory Authority plus the Securities and Exchange Commission.
One famous investment banking consultant is Highland Capital Management’s co-establisher as well as leader James Dondero. A Bachelor of Science in Accounting and Finance graduate from the University of Virginia, Dondero has been serving in credit business for over 30 years. He’s an accredited managerial accountant that did JP Morgan’s financial teaching program. Between 1985 and 1989 Dondero served in American Express handling fixed revenue funds beyond $1 billion. He later worked as CIO (Chief Executive Officer) increasing Protective Life from its inception till they had over $2 billion in property.
He presently works on the Board of Directors of Metro-Goldwyn-Meyer and American Banknote Corporation. Mr. Dondero is furthermore the chairman of NexBank, CCS Medical, as well as the Cornerstone Healthcare Group. He experienced in handling mortgage-backed securities, leveraged bank credits, common plus preferred stocks, evolving marketplace debt, investment grade companies, and derivatives. Dondero has similarly earned the title of Chartered Financial Analyst.
Skilled investment banking consultants aids government agencies as well as corporations big and minor with investment counsel. Dondero plus other well-esteemed investment banking consultants have facilitated the growth of an industry that was fledging sometimes ago, into an enormous and powerful business.