Handbook of Key Global Financial Markets, Institutions, and Infrastructure

Chapter 41

Investment Banks

P. Lejot

The University of Hong Kong, Hong Kong SAR, China

Outline

Introduction

Concepts

Origins

Functions and Objectives

Investment Banks and Commercial Banks

Business Streams

Corporate Finance Advisory

Capital Creation in Equities, Debt, and Derivatives

Markets in Information and Reputational Capital

Questions, Concerns, and Post-crisis Outcomes

Glossary

Further Reading

Relevant Websites

Introduction

Successful investment banking is often creative, demanding, and lucrative. It became tarnished by the 2007–09 global financial crisis. Critics and regulators have since questioned the societal value of complex financial transactions, asking whether a small number of prominent investment banks created unwarranted systemic ...