BUSINESS CAPABILITY MAP - Investment Banking Services

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Description	EN: The  Investment Banking Services capability map groups all specific capabilities related to managing equity and bond issues, mergers and acquisitions, and providing financial advice to companies. FR: La carte des capacités de la  Banque d'investissement regroupe toutes les capacités spécifiques liées à la gestion des émissions d'actions et d'obligations, des fusions et acquisitions, et à la fourniture de conseils financiers aux entreprises . Certaines capacités de banque d'investissement sont partagées avec les autres domaines du secteur bancaire et se trouvent dans la bibliothèque des Assets bancaires partagés.
Name (FR)	Banque d'investissement
Implementing Functions	Investment Banking Production & Exploitation
Packaging Library	Wholesale Banking

TREE VIEW

•    Investment Banking Services

  The  Investment Banking Services capability map groups all specific capabilities related to managing equity and bond issues, mergers and acquisitions, and providing financial advice to companies.

  •    Alternative Investments Management

    Involves overseeing non-traditional investment products like hedge funds, private equity, venture capital, and real estate. This capability focuses on managing these unique investment strategies and assets to diversify portfolios and seek higher returns. By handling such diverse investment types, it aims to enhance financial performance and mitigate risks within the investment banking sector.

    •    Hedge Funds

      Involves managing and investing in hedge funds on behalf of clients. This capability includes due diligence on hedge fund managers, portfolio allocation, and ongoing monitoring to achieve investment objectives and provide clients with exposure to alternative investment strategies. Hedge funds offer diversification and unique risk-return profiles.

    •    Private Equity (*)

      Manages and invests in private equity funds, encompassing fund selection, due diligence on private equity opportunities, and ongoing portfolio management to achieve long-term capital appreciation for clients. The purpose is to generate substantial returns by investing in private companies, leveraging expertise in fund management and due diligence to maximize investment outcomes.

    •    Real Estate Investment Trusts

      Involves managing and investing in Real Estate Investment Trusts (REITs). This capability includes due diligence on real estate assets, portfolio allocation, and ongoing management of REIT investments to provide clients with exposure to the real estate market. REITs offer a way for investors to participate in real estate ownership without directly owning properties.

  •    Corporate Finance

    Entails offering financial advisory and investment banking services to corporations. This capability includes capital raising, mergers and acquisitions, and corporate restructuring. It aims to support businesses in optimizing their financial strategies, facilitating growth, and enhancing overall value through expert guidance and strategic financial management.

    •    Capital Raising (Initial Public Offering (IPOs) and Private Placements)

      Involves assisting companies in raising capital through public offerings or private placements of securities. This capability includes structuring offerings, preparing documentation, and facilitating the fundraising process to help companies access capital markets and achieve their financial objectives. Capital raising is crucial for business expansion and development.

    •    Debt and Equity Financing

      Encompasses arranging and facilitating debt and equity financing for corporate clients. This capability includes advising on suitable financing structures, negotiating terms with investors or lenders, and managing the issuance process. Investment bankers in debt and equity financing aim to optimize the capital structure and funding mix for clients' financial needs.

    •    Financial Advisory

      Provides strategic financial advice to corporate clients on a range of financial matters. This capability includes financial analysis, valuation, and recommendations to support decision-making in areas such as capital structure, financial restructuring, and overall financial strategy. Financial advisory services aim to enhance clients' financial performance and strategic positioning.

  •    Financial Risk Management

    Involves identifying, assessing, and mitigating the potential risks that may impact the financial performance or stability of a company. It includes analyzing various types of risks, such as market risk, credit risk, liquidity risk, operational risk, and regulatory risk, and implementing strategies and controls to manage and mitigate these risks effectively. Financial risk management aims to protect the company's assets, optimize its risk-return profile, and ensure compliance with regulatory requirements and internal policies.
    

    •    Financial Risk Credit

      Focuses on identifying, assessing, and managing credit-related risks. This capability includes evaluating the creditworthiness of counterparties, monitoring credit exposures, and implementing risk mitigation strategies to minimize the impact of credit risks on the enterprise's financial health. Credit risk management is essential for prudent financial management.

    •    Liquidity Risk Management

      Involves managing risks related to the availability of liquid assets. This capability includes assessing liquidity needs, implementing liquidity risk management strategies, and ensuring that the enterprise can meet its short-term obligations. Liquidity risk management is critical for maintaining financial stability and operational continuity, especially in times of market stress.

    •    Market Risk Management

      Encompasses the identification, assessment, and mitigation of market-related risks. This capability includes managing risks associated with market fluctuations, interest rates, and other macroeconomic factors that may impact the enterprise's financial position. Market risk management aims to protect the enterprise from adverse market conditions and optimize risk-return profiles.

  •    Operations and Back Office

    Refers to the support of operational and administrative functions within an investment bank. This capability encompasses tasks such as data processing, record-keeping, and compliance management. By handling these essential functions, it ensures that the bank's operations run smoothly and efficiently, thereby supporting core banking activities and maintaining regulatory standards.
    

    •    Accounting and Financial Reporting

      Encompasses accounting and financial reporting activities for investment banking operations. This capability includes financial recordkeeping, preparation of financial statements, and compliance with accounting standards and regulations. Accounting and financial reporting are crucial for transparency, regulatory compliance, and effective financial management.

    •    Clearing and Custody

      Involves clearing trades and providing custodial services for client assets. This capability includes managing clearing relationships, maintaining custody records, and ensuring the safekeeping of financial assets. Clearing and custodial services are essential for the safe and efficient handling of securities and financial instruments on behalf of clients.

    •    Trade Settlement and Confirmation

      Encompasses the settlement and confirmation processes for executed trades. This capability involves coordinating with clearinghouses, custodians, and counterparties to ensure accurate and timely settlement of trades. Efficient trade settlement and confirmation contribute to reducing operational risk and ensuring the smooth processing of financial transactions.

  •    Trading and Execution

    Involves facilitating securities trading and investment transactions on behalf of clients. This capability includes executing buy and sell orders across diverse financial markets. By handling these transactions efficiently, it ensures timely execution and optimal outcomes for client investments, thereby supporting the broader investment strategy and market participation.
    

    •    Algorithmic Trading

      Utilizes algorithms and automated systems to execute high-frequency trades in financial markets. This capability involves the development and implementation of algorithmic trading strategies to optimize trade execution efficiency, minimize transaction costs, and capitalize on market trends and patterns.

    •    Equities Trading

      Involves buying and selling of equities (stocks) on behalf of clients or the investment bank itself. This capability includes activities such as market analysis, trade execution, and monitoring of equity markets to achieve optimal results for clients and the institution.

    •    Fixed Income Trading

      Encompasses the trading of fixed-income securities, such as bonds and other debt instruments. This capability involves analyzing market conditions, executing trades, and managing fixed-income portfolios to meet investment objectives and optimize returns for clients and the investment bank.

    •    Foreign Exchange Trading

      Involves the buying and selling of currencies in the foreign exchange (forex) market. This capability includes currency analysis, trade execution, and risk management to facilitate currency exchange for clients, hedge against currency fluctuations, and capitalize on market opportunities in the forex market.

    •    Order Execution and Settlement

      Encompasses the execution and settlement of trades made on behalf of clients. This capability includes order routing, trade confirmation, and coordination with clearinghouses and custodians to ensure timely and accurate settlement of trades, reducing operational risk and enhancing efficiency in the trading process.

  •    Treasury and Capital Services

    Encompasses overseeing a bank’s liquidity, capital, and financial resources. This capability focuses on optimizing returns while minimizing risks and adhering to regulatory standards. By managing these elements effectively, it ensures the bank maintains financial stability and meets its strategic objectives.

    •    Capital Adequacy and Planning

      Involves assessing and planning for the capital needs of the enterprise. This capability includes evaluating capital adequacy, stress testing, and developing strategies to maintain optimal levels of capital to support business activities and regulatory requirements. Capital adequacy and planning are critical for financial stability and compliance with regulatory standards.

    •    Funding and Debt Issuance

      Encompasses managing funding sources and issuing debt instruments to meet the financial needs of the enterprise. This capability includes selecting appropriate funding mechanisms, negotiating terms, and executing debt issuances to ensure access to capital markets and support the enterprise's financial objectives. Funding and debt issuance are integral to financial planning.

    •    Liquidity Management

      Encompasses the management of an enterprise's liquidity position and cash flow. This capability includes monitoring cash balances, optimizing cash positions, and deploying liquidity management strategies to ensure that the enterprise can meet its short-term financial obligations efficiently. Liquidity management is essential for financial stability and operational continuity.

MAP VIEW