Managing Risks in Investment Banking
Managing Risks in Investment Banking The idea of managings risks in investment banking may seem pretty straightforward, but in order to cover the topic fully, let’s start with a brief overview of what it entails in the general sense. Risk management entails protecting financial assets against loss. In order to do this, risky behaviors or...
Trading Watch List
What is a Trading Watch List? In investment banking, a trading watch list is maintained by the compliance group to comply with legal and regulatory requirements, mitigate conflicts of interest, prevent insider trading, and support information barriers. A watch list facilitates compliant securities trading surveillance and research monitoring activities to safeguard against improper use or disclosure...
Confidentiality Agreements in Investment Banking
Why Do Banks Try to Avoid Confidentiality Agreements? Whenever possible, investment bankers try to avoid entering into confidentiality agreements as a condition of receiving confidential information, particularly prior to obtaining a signed engagement letter. Confidentiality agreements (particularly those related to an M&A process) often contain provisions that can have unforeseen consequences on other areas of the bank’s...
League Table
What is a League Table? A League Table is a list of investment bankers that highlights their rankings in the deal-making industry. Popular services provided by investment bankers include underwriting, mergers and acquisitions (M&A), and financial and legal advisory services. A league table can be ranked according to several metrics, such as Deal Value, Deal...
Market Maker
What is a Market Maker? Market maker refers to a firm or an individual that engages in two-sided markets of a given security. It means that it provides bids and asks in tandem with the market size of each security. A market maker seeks to profit off of the difference in the bid-ask spread and...
