Investment Banking

By and large, investment banking is a financial disintermediation process that aspires to remove the traditional role of the commercial and retail banking sector from being an intermediary that re-deploys excess funds from the market into the corporate sector for financing of corporate activities and growth.

Typically, the financial disintermediation processes evolved around the origination and eventual issuance of equity, debt and quasi-debt financial instruments that enable investors who possess surplus funding to deploy their investment capital into the issuers of such instruments. Corporations that desire receipt and application of such funding to finance their corporate activities and growth will have to engage the services of consummate professional investment bankers who will think of, put together and design a well conceived scheme that enables such corporations to issue financial instruments for investors to subscribe and invest their surplus funds in.

Other than origination, the investment banking industry would have to create an avenue and mechanism that facilitates and enables re-sale of financial instruments from one investor to the next, the decision of whom shall be premised upon ones perception of the risk-return profile. Without creating a market mechanism, it would be extremely trying and challenging to undertake an efficient and effective financial disintermediation process.

For more information, call us at Structured Finance & Debt Capital Market Division Tel: +603-2164 2828 and +603-2169 2220.