Seminar von Herrn Prof. Dr. F. Tata
International Investment Banking: Theory and Practice
With an emphasis on the roles of Global Markets and Investment Banking departments of large universal and international investment banks, the course addresses the set-up and functioning of sales, corporate finance, trading and research, as well as the interaction with corporate and institutional clients. Students learn about the risks and opportunities of the Global Markets business in today’s global financial markets, both from a theoretical and from a practitioner’s perspective. After taking the course, students know about the most important fixed-income financial instruments from a pricing, risk-management and client-marketing perspective. The course is designed to invite for open debate and emphasizes case studies, group work and interactive class discussions. A fair amount of class time is spent covering current events, trends and developments. Two guest lecturers will be invited to provide insight on the current developments in research and banking. The course is organized as follows:
1.Introduction: Today’s global finance market architecture; the role and responsibilities of various business units in corporate, investment and universal banking; financial market instruments; key concepts of financial market theory.
2.Sales: The role of institutional sales targeted to various customer segments, with a focus on the psychological processes and biases underlying decision-making in an Principal-Agent relationship.
3.Corporate Finance: The role of investment banks in corporate finance segments M&A, Equity (ECM & IPOs), Bonds (DCM) and Loans (restructurings).
4.Trading: Sales Trading and Proprietary Trading in FICC-space and in fixed-income derivatives; new developments including algorithmic and high frequency trading; introduction to pricing and risk management on a trading desk.
5.Research: Securities Research with focus on trade-idea generation, relative value and micro-arbitrage, MiFID-II unbundling rules and client relationship management.