Investment Banking Industry & Trends
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The investment banking industry has undergone tremendous change in the past three decades. The industry suffered its greatest public relations problems during the 1980s, when it was generally associated with the savings and loan crisis and when individuals such as Michael Milken and Ivan Boesky were portrayed by the media as rogue traders playing with the pensions and life savings of investors. However, a number of trends besides the development of the junk bond market have coalesced to produce an environment in the investment banking industry which is vastly different from that of the early 1960s. Based on these trends, it is likely that the industry will undergo continued development in the near future to the point that it is again competitive in a global economy.The trends which have shaped the investment banking community involve macroeconomics, the globalization of the world economies, increased deregulation in the American banking industry, rapid change in technology, increased competition, disintermediation and repositioning. As companies have reacted to these trends, two distinct strategies have emerged: some investment banks have consolidated efforts with the result that they are participating in markets and activities separate from traditional investment banking; other companies have begun to specialize in traditional investment banking services, and have sold off operations not specifically related to these services.
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ancial institutions participate primarily on consumer banking (credit cards, automobile financing, for example), but the inroads they have made among traditional banks is significant. As a result, commercial banks are turning their attention to other ways to increase their revenue streams, including investment banking.
Technology
Computerized telecommunications and electronic technology has greatly changed the investment banking landscape. Limited at first to back office operations such as data processing and check clearing, technology has now been applied to front office operations and customer services. The result is that swaps, options, futures and cash management services have all been enhanced and even transformed by new technology. For investment bankers, who depend on bringing various parties together, the rise of computers has been complimented by the increase in telecommunications technology, which makes possible teleconferencing with parties located not only in different sections of a single city, but with individuals located around the world. Such technological innovations have changed the way in which participants in investment banking deals have met and interacted.
The end result of this technological revolut
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Some common words found in the essay are:
Technology Computerized, Ivan Boesky, Michael Milken, Burnham Lambert, Globalization Globalization, Outlook Successful, Deregulation Deregulation, Milken Boesky, United American, United Increased, investment banking, junk bonds, investment bankers, american banks, commercial banks, foreign banks, nonfinancial institutions, banking industry, michael milken, investment banking industry, japanese banks, milken ivan boesky, traditional investment banking, commercial investment banking,
Approximate Word count = 2213
Approximate Pages = 9 (250 words per page)
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