The material in this chapter should be cross-referenced with Case Study 3, “Freeport-McMoRan: Financing an Acquisition.”
This chapter focuses on financings for corporate and government clients, one of the two key businesses conducted by the Investment Banking Division of an investment bank.
A capital markets financing is a long-term funding obtained through the issuance of a security in a regulated market. A security is a fungible, negotiable instrument representing financial value. The security can be debt (bonds, debentures, or notes), equity (common stock), or a hybrid (a security with both debt-like and equity-like characteristics, such as preferred shares or convertibles). A capital markets financing ...