What International Investment Banking Will Provide You

International investment banking has become big business around the world and certainly the main players seem to be both European and US Banks along with Security Companies.

However just what is an investment bank? There is no actual clear definition as to what such banks are and the term will generally be used in relation to financial institutions or houses that start out trading as merchants then expand to providing finance for trading and commercial activities of other businesses or people. In fact for many years when these types of banks came into being, especially in England, they would more often be commonly referred to as merchant banks.

Today many international investment banks will have offices in various countries and generally they are located in the major financial centers of these countries. Although there are a large number of overseas based investment banks around the world today, the most well known and certainly the ones that have been established the longest are those that are based in the UK.

Today an international investment bank is likely to provide their customers with some or all of the following services around the world. They provide these services through divisions of their bank that are located in a particular country or through companies that are associated with them.

1. Corporate Finance These banks will look at issuing new securities for various corporations or businesses in order that they can raise the necessary finances that they may need to expand or make improvements to their business. They also help them in relation to merger issues, along with take over issues and the acquisition of another business.

2. Investment Management The will normally manage the investment portfolios of say a corporate pension fund or a charity or for private clients. Such investments are made through the use of direct investments or through unit and investment trusts. Some international investment banks can be managing the funds of a business or corporation that runs into billions of dollars.

3. Trading They deal not only in trading bonds and derivatives but also securities and equities by offering their clients special brokerage and distribution facilities.

However even though a lot of international investment banking groups offer such a wide variety of services they are still quite small in comparison when you look at some of the larger clearing or commercial banks to be found around the globe today. Often the staff employed within such banks can only reach a few thousand and their success depends on them being able to provide their clients with whatever kind of financial services that they need.