Investment Banking Operations Professionals: Complete Guide

Understand client needs and build relationships to tailor investment strategies and services for investors. Execute transactions across markets, including debt and equity, based on client strategies and risk appetite.

Understand buy side and sell side of investment banking, where hedge funds, mutual funds, pension funds, and insurance companies manage money, while banks provide research and securities to guide investments.

Differentiate investment banks from commercial banks by deposits, lending, and client networks. Investment banks offer customized, expert services, strategic advisory, and capital raising through IPOs and mergers and acquisitions.

Spotlight the leading investment banks shaping markets: Bank of America Merrill Lynch, Barclays Capital, Citibank, Credit Suisse, Deutsche Bank, Goldman Sachs, JP Morgan Asset Management, Morgan Stanley, and UBS Bank.

Explore how investment banks raise capital through underwriting, advise on mergers and acquisitions, and drive trading, asset management, corporate broking, and research services.

Asset management services tailor portfolios for government provident funds, earning lucrative fees from large assets under management, while in-house research underpins trading and underwriting with precise valuations.

Understand how the financial system channels funds through direct and indirect finance with intermediaries like investment banks, and how savers, borrowers, and governments interact in markets.

Identify key financial system participants, including issuers, investors, lead managers, brokers, regulators, clearing agents, depositories, registrars, and custodians, and explain their roles in capital markets.

Explore the components of the global financial systems. Identify rating agencies, accounting standards, institutional investors, and central banks that shape markets and currencies.

Explore the main financial markets—equity, debt (bond), foreign exchange, commodities, money markets, derivatives, futures, and insurance—highlighting how participants invest, hedge risk, and manage liquidity.

Regulatory agencies oversee markets, led by the SEC, which enforces full disclosure and bans insider trading; other regulators oversee futures, banks, and credit unions.

Regulatory agencies monitor corporate governance and market integrity through internal and external monitoring systems, audit committees and minority shareholders' rights, government regulations, and financial supervisory bodies.

Explore the role of investment banks in the financial markets, including underwriting, sales and trading, and research, and differentiate buy side from sell side.

Explore the financial markets, their meaning and importance, and how buyers and sellers meet investors' short- and long-term needs through equities, bonds, and repo instruments.

Explore how financial markets connect trading of diverse products to economic growth through demand and supply, reflecting company prospects and investor-driven price movements.

Learn how financial markets turn individuals into investors by offering equities, bonds, derivatives, and other instruments, enabling raises through public listings while pursuing attractive returns.

Discover how financial markets determine prices through price discovery and enable price reflection on exchanges. Mobilize funds, enhance liquidity, and optimize time and money for investors and issuers.

Understand what equity markets are and how they trade, the ownership and voting rights they confer, and how IPOs, ADRs, and stock exchanges operate in primary and secondary markets.

Compare equity shares and preference shares, highlighting higher risk and lower dividend and winding-up priority for equity, while preference shares receive priority and certain benefits.

Explore the features of equity shares, including ownership, distinctive share numbers, voting rights, dividends, and right issues and bonus shares in the secondary market.

Discover the advantages of investing in equity shares, including dividends, capital gains, limited liability, and ownership rights, plus right issues and bonus shares; the lecture previews the accompanying disadvantages.

Explore the disadvantages of investing in equity shares, including dividend variability tied to profits, unpredictable returns, market price fluctuations, and limited control that requires substantial capital.

Explore preference shares, their fixed dividend, and priority in winding up, with directors’ discretion on payment frequency and the guaranteed payout to preference holders before equity.

Explore the types of preference shares, cumulative and non-cumulative, redeemable and irredeemable, convertible and non-convertible, and participating versus non-participating, and how dividends, arrears, and rights to surplus profits are applied.

Preference dividends are fixed and paid before equity dividends. Equity dividends vary and carry voting rights; preference shares may be converted to equity and are redeemed.

Analyze how demand and supply drive equity market prices, then connect company news, industry trends, customer activity, and government actions to market sentiment and global events that shape trade economics.

Identify the equity trade parameters, including trade date and T plus two settlement. Explain how account IDs, counterparty codes, and transaction types guide settlement with identifiers like isin, cusip, sedol.

Identify why equity dividends are not guaranteed and how cumulative preference shares secure dividends, then explain American depositary receipts and their US dollar valuation on the NYSE and Nasdaq.

Explore the disadvantages of American depositary receipts, including foreign exchange risk, limited adr options for US investors, illiquidity, higher charges, and sec compliance.

Discover how american depository receipts are created from overseas deposits, issued by banks, and traded in the us market, with us-dollar dividends and factors like pricing, demand, and taxes.

Explore the types and levels of american depositary receipts, including sponsored and non sponsored ADRs, levels 1–3, and global depositary receipts, with SEC filings.

Explain global depository receipts as certificates created by overseas depositary banks, issued to non-resident investors against ordinary shares or foreign currency convertible bonds.

Explore two main gdr types: Rule 144A and Regulation S. Enable gdrs for non-US issuers to access the US market, while Regulation S permits fungible listings across markets.

Explore the advantages of global depositary receipts, including easy foreign investment, dividends in home currency, high liquidity, higher capital raising, and the foreign exchange risks and hedging costs.

Explore adr and gdr differences: adr is us-denominated and traded on us exchanges with sponsorship levels, while gdr is global, multi-currency, and traded on european exchanges with no levels.

Explore how initial public offerings raise capital in the primary market, from prospectus to listing, and understand oversubscription, underwriters, brokers, and demat on major exchanges such as NYSE and BSE.

See how share changes hands through brokers and exchanges as orders are matched and trades execute, with shares moving to the buyer and funds moving to the seller.

Discover the roles of investors, brokers, stock exchanges, registrars, depositories, depository participants, and regulators in the trading cycle, and how they ensure fair, efficient market operations and investor protection.

Understand how depositories in India and United States clear trades through Cdsl, Nsdl, and Dtc, and compare online and traditional trading with linked demat and bank accounts.

Explore the fixed price ipo process, from issuer decision and brlm appointment to due diligence, draft prospectus filing, pre-marketing, roadshows, oversubscription, allotment, and listing.

Explain the book building ipo, its bidding and price bands, final pricing and allocation, and list top stock exchanges and financial centers described by infrastructure, regulation, and taxation.

Explore how business environment, human capital, reputation, and infrastructure determine the competitiveness of financial centres, highlighting top hubs such as New York, London, Hong Kong, and Singapore.

Explore fixed income basics, bond types, pricing, and yield concepts, including accrued interest, clean and dirty prices, yield to maturity, and the role of MBS and ABS in credit crises.

Explore fixed income as a debt instrument delivering regular coupons and principal at maturity, issued by governments and corporations, including treasury bonds and CDs, with higher yield and lower risk.

Discover the advantages of fixed income investing, including diverse bonds (government and corporate), mortgage backed securities, asset backed securities, and secure, liquid income via coupons and maturity.

Learn how bonds work: investors loan money to issuers, receive coupons until maturity, and are repaid principal, with bond types and Moody's and S&P ratings signaling risk and redemption options.

Learn how yield, the rate of return on a bond, differs from coupon, and how current yield relates to market price; understand credit quality and high yield (junk) bonds.

Examine bond basics, including principal, contract and market rates, and payment schedules, then compare corporate, government, zero coupon, junk, convertible, inflation index, and other bond types.

Analyze government bonds and tips as low-risk, inflation-hedged options, explain zero-coupon bonds issued at a discount, and cover junk and convertible bonds with ratings and conversion rights.

Explore bond types covered, including convertible bonds with conversion ratios, inflation index linked, foreign currency, perpetual, deferred, callable, portable, zero coupon, and euro bonds, with practical examples and exam-style questions.

Explore bond pricing: clean price excludes interest, while dirty price includes accrued interest. See how primary and secondary markets affect quotes.

Learn how yield to maturity varies inversely with price, and distinguish clean from dirty price. Explore accrued interest and semiannual coupon allocation in a bond case study.

This case study on accrued interest examines Globe bond sale on May 31 from investor A to B, with quarterly 10% coupons and a 2:1 accrual split.

Explore how yield and price move inversely, learn the yield to maturity formula, and compare current yield with yield to maturity, including coupon versus yield concepts.

Understand day count conventions in fixed income to calculate accrued interest and payoffs, including 30/360, actual/360, actual/365, and actual/actual, and their market-specific applications such as US Treasuries and short-term instruments.

Compare equities and bonds by ownership and voting rights with dividends vs fixed-income with fixed coupons and maturities; bondholders are creditors paid first at wind up, and bonds trade OTC.

Learn to calculate yield to maturity for bonds using par value, market price, and coupon, and understand the inverse relationship between price and yield.

Understand mortgage backed securities (MBS) as debt investments secured by pools of mortgages, housed in SPVs, with payments guaranteed by government agencies and accessible to institutional investors.

Explore how collateralized debt obligations repackage mortgages and other loans into securities for the secondary market, and learn about securitization, SPV structures, haircut, and weighted average coupon.

Mortgage-backed securities offer higher yields than traditional bonds, backed by collateral and credit ratings. Securitization creates diversified pools with rated tranches and varying risk–return profiles.

Trace the mortgage-backed securities process from borrowers and mortgages to securitized pools, CDO tranches, and investor returns, covering US and UK markets, risk and yield, including the 2008 crisis.

Banks lend mortgages to homeowners, then sell loans to government sponsored agencies or enterprises (GSC) that pool them into securities, generating cash flows from payments for investors.

Explore asset-backed securities (abs) fundamentals: securitization of pools of loans—from banks to spvs and trusts—plus credit enhancements and real-world examples with auto loans.

Auto loans move from banks to ABC investments, are pooled into tranches and issued as asset-backed securities, rated by agencies under sec requirements; ABS up to five years, MBS longer.

Investigate the root causes of the credit and subprime crisis, including mortgage papers, MBS, CDOs, and the roles of banks, rating agencies, and the Federal Reserve.

banks bundle mortgage papers into high, medium, and low quality tranches called cdos, and sell them to rich investors for upfront profit, while rating agencies sometimes rate to bank preferences.

Explore how securitized mortgage bundles and rating practices fueled a housing bubble, the rise of credit default swaps, and the 2007–2008 crisis that toppled Lehman Brothers and Bear Stearns.

Explore 2008 subprime crisis, the fed's bailouts for banks and investors deemed too big to fail, and how mortgage paper, credit ratings, and cdos burst the bubble and impacted workers.

Trace the origins of the foreign exchange market, from gold pegs to Bretton Woods to post-1971 floating rates. Learn core instruments—spot, forward, swaps, futures, and options—and how currencies are quoted.

Explore the foreign exchange market as a global online network trading currencies 24 hours a day with floating rates, and a two-tier system of interbank and over-the-counter markets.

The interbank market uses dealing desks and the swift network to set uniform exchange rates. It supports proprietary trading for banks and clients, and maps participants from exporters to immigrants.

Review the forex market's brokers and central banks, price interventions, and the 2018 Euromoney top players, plus ISO currency codes with EUR and CHF exceptions.

Learn how direct quotations express the domestic currency per unit of foreign currency, with bid and ask rates in USD/JPY, and why this default method dominates forex pricing.

Explore indirect quotations, where one unit of foreign currency is expressed in domestic currency; use euro and USD examples and note indirect quotes are rare with USD direct quotes.

Explore forex versus futures: forex trades currencies OTC in a 24/7, commission-free market, with price uncertainty; futures trade exchange-traded contracts with CCP clearing, fixed hours, and commissions.

Learn how the spot foreign exchange market converts currencies in real time, illustrated by 1.1233 for converting dollars to euros, and how forward contracts hedge or speculate on forex risk.

Currency futures provide legally binding contracts to buy or sell euros at a set price on a future date, mainly for hedging exchange-rate risk or speculation, with cash settlement common.

Explore how fx swaps hedge currency risk by exchanging dollars and euros at spot and forward, and use fx options to protect against adverse rate movements.

Explore fx options, including call and put rights with expiry and delivery dates, and compare european and american exercise. See how forward rates and tomorrow-next rollovers hedge currency exposure.

Explore tom next trading and the emergence of non-deliverable forwards (NDFs) in OTC currency hedging, including fixing mechanisms, offshore markets, and key trade parameters.

Explore how FX trading uses notional quantities, settle currencies, and trading statuses to manage forward, spot, and swap contracts, including key trade identifiers and settlement details.

Explore foreign exchange markets, including spot, forwards, swaps, futures, and options; learn currency quotations, indirect quotes, depreciation and appreciation, and core fx trade mechanics.

Explore the interbank market where banks lend to each other in short-term and overnight loans to manage liquidity, meet reserve requirements, with rates like fed funds, LIBOR, and Euribor.

Explore the money markets by identifying instruments, focusing on U.S. treasury bills and US/Europe repo markets, compare repos and reverse repos, caps, floors, collars, and the advantages and disadvantages.

Explore the money markets as a highly liquid system for short-term lending and borrowing, covering instruments like treasury bills, commercial papers, repos, CDs, and money market accounts.

Explore money market instruments, from call money and notice money to treasury bills, CDs, and bills of exchange, then dive into repurchase agreements, repos, reverse repos, and interbank lending.

Explore the money market's core mechanisms, including interbank lending and overnight rates, and how banks borrow and lend to meet liquidity and reserve requirements.

Explain how treasury bills, short-term government debt under a year with $1,000 denominations and four-to-twenty-six week maturities, are issued at a discount through competitive and noncompetitive bids in primary market.

Explore how t-bills auction forms work, including uniform and discriminatory auctions, caps and floors, collar positions, bid yield ranking, and stop yield and stop out price.

Explore repurchase agreements, or repos, as collateralized loans where securities are sold now and repurchased later at a set price, including repo and reverse repo, open and term formats.

Explain how a repurchase agreement works: security providers sell bonds to cash providers and repurchase at maturity with principal plus interest, backed by collateral, with open and term repo options.

Explore the US and Europe repo markets, highlighting US dominance in government bonds and agency debts with challenging title transfer, versus Europe’s liquidity-driven term repos and easier title transfer.

Analyze the money market's advantages and disadvantages, including repos, secured loans, funding costs, and opportunity loss, and compare instruments like CDs, derivatives, equities, and bonds.

Explore the asset management world, covering mutual funds (open-ended and closed-ended), ETFs vs mutual funds, hedge funds structures, strategies, fund administration, fund accounting, and fees.

Understand asset management as managing client investments and timing buy and exit decisions, and how mutual funds pool investor money to buy securities and share income with unitholders.

Identify the roles of sponsor, asset management company, and mutual fund trust in establishing funds registered with SEBI, and explain open and closed ended schemes and investor participation.

Explore interval schemes that combine open and closed ended features with predefined sale windows, and learn how AMCs open periodically, while growth, income, and other scheme names guide investor choices.

Explore income debt oriented schemes that invest in fixed income securities to deliver steady income for retirees, and balanced funds blending equity with debt for growth and income.

Explore money market and liquid funds, offering high liquidity and moderate income via short-term instruments like t-bills, cds, and commercial papers, with notes on tax saving and assured return schemes.

Compare open-ended and closed-ended schemes, including issue and redemption rules and maturity, with a focus on exchange-traded funds that track major indexes on stock exchanges.

Explore hedge funds, pools similar to mutual funds but trading a wide range of assets—from equities to derivatives—seeking maximum returns through short selling, leverage, and a 2/20 fee structure.

Analyze standalone funds and the master feeder and side by side structures, including onshore and offshore replication, and tax efficiency considerations under the cayman islands monetary authority framework.

Consolidate US taxable and non-US investor funds into a master fund via two feeder funds, onshore and offshore, with trading at the master level and series and class fee structures.

Explore hedge fund strategies, including global macro, market neutral, convertible arbitrage, and directional strategies, and learn how macroeconomic factors and long/short positions drive returns.

Understand hedge fund fund administration, from trade booking and pricing to investor statements, reconciliations with custodians, and ensuring accurate nav.

Learn how hedge fund fees work, including 2% management fees on AUM and 20% performance fees on profits, plus feeder and master fund structures and NAV calculation.