Independent work prepared by: matmurodov elmurod

INDEPENDENT WORK

PREPARED BY: MATMURODOV ELMUROD

CHECKED BY: RO`ZIMOVA NORGUL

J.P. Morgan Chase
JP Morgan
JP Asset Mgt/Private Banking
J.P. Morgan
Retail/Commercial
Investment Bank
Buy Side
Securities Services
Treasury Services
What is Investment banking?
Integrated Banking Model aka Universal Bank Structure
Operations
Investment Banking Division (IBD)
Sales & Trading /
Markets /
Securities
Investment Banking Group
“Public” market = Investors
“Private” market = Corporate clients
Finance
Operations
IT
Risk & Corp
Advisory
Investment Banking – Typical Investment Bank Structure
Chinese Wall
Legal &
Compliance
Human
Resources
ECM / DCM or
Financing
Back office
Middle office

Business Areas in IB

• Front Office – (Revenue generating & Client facing - Trading, Sales, M&A etc.)
• Middle Office (directly supporting the Front Office Compliance, Technology, Trade Support)
• Back Office (All functions behind the scene – Settlements, some IT)

Explanation: https://news.efinancialcareers.com/uk-en/246493/front-office-middle-office-back-office-banking

Sell-side
“Regional”
Boutiques
Product
Hamilton Ventures
(M+A Real Estate)
Stormharbour (Trading)
Commerzbank
Lloyds
BNP Paribas
BBVA
Geography
Frontier secs (Mongolia)
Cavendish (UK)
EFG Hermes (ME)
“Middle Market”
Industry
Fox Pitt Kelton (financial services)
Delta Partners (TMT)
Standard Bank
RBS
Stan Chartd.
Groupo Santander
RBC
Societe Generale
RBS
“Bulge” Bracket / Tier 1
Bank of America
Barclays Capital
Citi
Credit Suisse
Nomura
Morgan Stanley
UBS
Deutsche Bank
Goldman Sachs
HSBC
JP Morgan
Lazard
Rothschild
Jefferies
Moelis
Houlihan Lokey
Investment Banking – Market Segmentation
https://www.mergersandinquisitions.com/boutique-middle-market-bulge-bracket/

Banks – How they Differ…

Source: Financial Times

• Cover all products and industries across a specific region, e.g.
• UK
• Benelux
• Iberia
• Germany

• Areas of expertise include:
• Consumer Products
• Financial Institutions (FIG)
• TMT
• Natural Resources
• Real Estate

• Advisory, e.g.
• Mergers and Acquisitions (M&A)
• Financing, e.g.
• Equity, IPOs
• Debt
• Lev Fin

IBD
M&A, large capital projects, IPO, DCM, ECM
Product Focus
Geographic Coverage
Industry Focus
Investment Banking – Investment Banking Division (IBD)

IBD Project Life Cycle

Step 1: Consulting firm advises on strategy: financing vs cutting costs vs spinning off unit
Step 4: Time to pull in the “public” side of the firm who works with investors and get their sign-off that the recommended transaction will be attractive to investors…
Challenge: Telecom company needs to raise money
Step 2: Telecom banker prepares pitch book. Coordinates product experts to prepare sections on product alternatives, e.g. equity vs debt
Step 3: Telecom banker updates financial model of company to provide parameters to equity bankers to determine how the equity should be structured