新编金融英语教程Chapter13InvestmentBanks课件.pptx

1、Investment BanksChapter 13Lead-inLanguage NotesKey PointsFollow-up Tasks13.113.313.213.4CONTENTS13.5Extended Tasks13.1Lead-inThis chapter will first of all look at the definition ofthe definition of investment banksinvestment banks.Then it will introduce the structure and componentsthe structure and

2、 components of the investment banking industry.Thirdly,it will explain the functionsfunctions of investment banks.Then it will introduce the operationsoperations of investment banking.It will also go on to talk about the new the new development development of the investment banking after the devasta

3、ting 2008 financial crisis.An investment bank is usually a private company with the aim of providing different kinds of financial and other services to individuals,corporations,and governments.Investment banks have two major types of business,which are called the sell side and the buy side respectiv

4、ely.The functions of an investment bank can be divided into private and public.In the United States,it is the licensed broker-dealer that is allowed to provide investment banking services.Investment Banks13.2 Key Points13.2.1 Definition of Investment Banks13.2 Key Points13.2.2 Size,Structure,and Com

5、position of the IndustryThese firms have more limited branch networks.They focus on major cities responsible for working with institutional investors.the large investment banksthe diversified financial service or national full-service investment banks.the largest firmsspecialize more in corporate fi

6、nance or primary market activities and are less active in trading securities,or secondary market activities.the national full-service firmsothersRegional securities firmsSpecialized discount brokersSpecialized electronic trading securities firmsVenture capital and private equity firms13.2 Key Points

7、13.2.3 Functions of Investment Banks help corporations issue new shares of stock in an initial public offering or follow-on offering.evaluating the worth of a possible acquisition and helping parties arrive at a fair price.deliver strategic advice on a variety of financial matters.review companies a

8、nd author reports about their prospects.Front office vs back officeThe front office generates the banks revenue.Back office typically includes operations and technology.The research divisionMergers and acquisitionsfinancial advisorsfinancial intermediaries13.2 Key Points13.2.4 Operation of Investmen

9、t BankingThough experienced analysts use their expertise to accurately price the stock as best they can,the investment bank can lose money on the deal if it turns out that they have overvalued the stock.Investment banks will often compete with one another for securing IPO projects,which can force th

10、em to increase the price they are willing to pay to secure the deal with the company that is going public.Investment banks employ investment bankers who help corporations,governments,and other groups plan and manage large projects,saving their client time and money by identifying risks associated wi

11、th the project before the client moves forward.Essentially,investment banks serve as middlemen between a company and investors when the company wants to issue stock or bonds.13.2 Key Points13.2.5 Investment Banking after the 2008 Financial Crisis72%72%the pure investment banks h a d t o t r a n s f

12、o r m themselves into bank holding companies(BHC)to get government bailout money.The flip-side is that the BHC status now subjects them to the additional oversight.i n v e s t m e n t b a n k i n g a d v i s o r y f e e s h a v e recovered from a low of$66 billion in 2008 to a high of$96 billion by

13、2014,only to come back down to$74 billion in 2016,as IPOs declined sharply over the last couple of years.Since 2008,banks have been operating in a far more highly regulated environment,while historically low-interest rates make it harder for banks to generate profits.acquisition kwzn 收购banker bk(r)银

14、行家entity entti 实体equityekwti 股权holding hld 控股rating ret 评级revenue revnju:收入shakeout ekat 股票市场震动underwrite ndrat 承销13.3 Language NotesI.Wordsancillary services bank holding company(BHC)Bank of America Bear Stearns boutique investment banks corporate customers debt financing equity capital Financial I

15、ndustry Regulatory Authority(FINRA)13.3 Language NotesII.Phrases financial services holding companiesflip-sidefull-line firms full-service investment banks Goldman Sachs hedge funds J.P.Morgan the U.S.Treasury 美国财政部unit of account计量单位institutional investors insurance contracts insurance premiumsinve

16、stment banks issuance of securities issue sharesLehman Brothers licensed broker-dealer market makingmergers and acquisitions(M&A)13.3 Language NotesII.Phrases Merrill Lynch Morgan Stanley private equity funds prospectus retail banks securities brokerage business Securities and Exchange Commission(SE

17、C)stock market crash subprime mortgage market unit trusts 1.The investment banking industry lays its emphasis on securities trading and underwriting rather than longer-term investment in securities.2.First are the largest firms,namely the diversified financial service or national full-service invest

18、ment banks,which serve for both retail customers(especially by acting as broker-dealersassisting in the trading of existing securities,or secondary market transactions)and corporate customers(by securities underwritingassisting in the issue of new securities,or primary market transactions).3.Perhaps

19、,even more,concerning for investment banks is the reputation damage suffered during the financial crisis.The ability to hire and retain the best and brightest is perceived on Wall Street as the secret sauce for long-term sustainable growth.4.While large service investment banks offer all lines of bu

20、siness,including both the sell side and the buy side,smaller sell-side investment firms such as boutique investment banks and small broker-dealers focus on investment banking and sales/trading/research,respectively.5.The greatest global financial crisis since the Great Depression was triggered in 20

21、08 by multiple factors including the collapse of the subprime mortgage market,poor underwriting practices,overly complex financial instruments,as well as deregulation,poor regulation,and in some cases a complete lack of regulation.13.3 Language NotesIII.Sentences 13.4 Follow-up TasksI.Matching()1.in

22、itial public offering A.中国墙()2.issue new shares B.零售客户()3.Chinese wall C.共同基金()4.pre-underwriting counseling D.首次公开发行()5.credit environment E.股票分析()6.financial statusF.发行新股()7.life insurance companies G.信贷环境()8.mutual funds H.预承销咨询()9.retail customers I.人寿保险公司()10.stock analysis J.财务状况Directions:Mat

23、ch the English words and phrasesEnglish words and phrases in the leftleft column with the proper ChineseChinese equivalents in the rightright column.13.4 Follow-up TasksII.JudgmentsDirections:Decide whether each of the following statements is true(T)true(T)or false(F).1.Generally speaking,investment

24、 banks are public companies that offer financial and other services to people and organizations.()2.Like commercial banks and retail banks,investment banks take deposits,too.()3.The private functions of the investment banks can protect the privacy of their customers.()4.Investment banking is divided

25、 into front office and back office activities.()5.The businesses of investment banks are conducted globally rather than locally.()13.4 Follow-up TasksIII.Short Answer Questions Directions:Answer each of the following questions brieflybriefly.1.What is the sell side of investment banks responsible fo

26、r?2.What is the buy side of investment banks responsible for?3.Can you list three or more common types of buy-side entities?4.How did the financial crisis in 2008 change the structure of investment banks?5.Can you elaborate on investment banking?13.4 Follow-up TasksIV.Translation Directions:Translat

27、e the following Chinese paragraph into Englishinto English.投资银行是指主要从事证券发行、承销、交易、企业重组、兼并与收购、投资分析、风险投资、项目融资等业务的非银行金融机构。投资银行是证券和股份公司制度发展到特定阶段的产物，是发达证券市场和成熟金融体系的重要主体。在现代经济发展中，投资银行在沟通资金供求、构造证券市场、推动企业并购、促进产业集中和规模经济形成、优化资源配置等方面发挥着重要的桥梁作用。Money makes dogs dance.English proverbT h e w o r s t m i s t a k e i

28、nvestors make is taking their profits too soon,and their losses too long.Michael PriceI must take care not to compound my error by reacting emotionally.I must adapt to changing circumstances.George SorosOnly buy something that youd be perfectly happy to hold if the market shut down for 10 years.Warr

29、en BuffettWide diversification is only required when i n v e s t o r s d o n o t understand what they are doing.Warren Buffett13.5 Extended TasksI.Proverbs and Quotes13.5 Extended TasksII.Interview ExcerptWarren Buffett is an American business magnate,investor,speaker and philanthropist.He also serv

30、es as the chairman and CEO of Berkshire Hathaway.In this interview excerpt,Buffett takes a look at the 2008 financial crisis,which is considered by many as the most devastating crisis ever since the Great Depression in the 1930s.13.5 Extended TasksIII.Movie ClipThis clip shows the changes that have happened to the investment banks.Thanks