Investment Banking’s Post

Margin traded funding is a financial strategy that involves borrowing funds to increase the size of a trading position beyond the trader's own capital. This practice is commonly used in various financial markets, including stocks, currencies (forex), and cryptocurrencies. The underlying principle of margin trading is to leverage existing capital, allowing traders to control larger positions and potentially amplify both profits and losses. Key Components: Margin Account: Specialized account allowing borrowing against existing assets. Initial Margin: Deposit required to enter a margin position, serving as security. Leverage: Ratio of borrowed funds to own capital, magnifying both profits and losses. Margin Call: Occurs when position value falls below maintenance margin, leading to potential liquidation. Interest Rates: Traders pay interest on borrowed funds, determined by the broker. Benefits: Increased Exposure: Control larger positions for potential profits. Diversification: Use margin to enter positions in various assets or markets. Flexibility: Seize short-selling opportunities and profit from declining prices. Risks: Amplified Losses: Leverage magnifies potential financial setbacks. Margin Calls: Risk of forced liquidation if maintenance margin is not maintained. Interest Costs: Borrowing costs add to trading expenses. Market Volatility: Higher volatility increases the likelihood of margin calls. Risk Management Strategies: Stop-Loss Orders: Automatically sell a position at a specified price to limit losses. Position Sizing: Determine the appropriate position size based on risk tolerance. Moral of the Story: Margin traded funding offers increased market exposure and potential profits but comes with inherent risks. Traders must approach it cautiously, implement effective risk management, and understand the terms set by their brokerage.

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I successfully completed an in-depth course on Investment Banking through the Great Learning, instructed by Professor Balachandra Murthy. This comprehensive program covered essential topics including an introduction to Investment Banking, different function types, the trade cycle, and insights into Merchant Banking. It provided me with a solid foundation and practical knowledge essential for navigating the complexities of the financial industry.

Understanding Bond Assets Bonds are essential for diversified portfolios, offering steady income and reduced risk compared to stocks. By lending money to governments or corporations, you earn regular interest payments until maturity. https://lnkd.in/dQTA-qpc #Investing #Finance #Bonds

30 days of Investment banking 🏦 Day 4 🚀 👇👇👇 Investment analysis in investment banking. Financial analysis and valuation are a few of the major tasks investment banks perform. 📈 📉 📊 But how do we do that ❓ ❓ First, we look at the matrix that analyses the equity performance. There are several metrics to determine how a company has performed for the benefit of its shareholders. Some of the popular metrics are earnings per share (EPS) and return on equity (ROE). In the case of listed companies, market related metrics such as price-to-earnings multiple (P/E ratio) and price-to-book value (P/BV) are also commonly used. Apart from these common metrics, there are others, such as Dividend yield, dividend payout ratio, etc. But what are these metrics, and how do we draw conclusions from them? We will look into it on day 5. Source: Internet

Best practices, Hacks & Tips to increase efficiency in Investment Banking, PE and VC roles – Save and share Below is a collection of my posts on some proven tricks to improve performance in IB, PE, VC and financial modelling roles. Save this post for reference and do not forget to share in your network 1) Small hacks for efficient work in Investment Banking https://lnkd.in/dUWSJ9E2 2) Tell me you are a financial modeler without telling me you are a financial modeler https://lnkd.in/dTTQsdt7 3) Cheat codes to save time in Investment Banking https://lnkd.in/dT6d93V3 4) Common rookie mistakes to avoid in Investment Banking https://lnkd.in/dDJScAXA 5) Planning your way for a successful exit from an IB career https://lnkd.in/dVCkWqcj 6) Investment Banking Analyst Survival Hack - Make the "Staffer" your best friend https://lnkd.in/dXFH-9ia 7) Surviving in IB - Check, Double Check and Triple Check before sending https://lnkd.in/dnmKiYYc 8) Managing the long hours in Investment Banking - Small hacks https://lnkd.in/du_BARbz 9) Small changes Investment Banks can undertake to improve life in IB https://lnkd.in/dnygjgSx 10) Investment Banking Working Desk - Tips for efficiency https://lnkd.in/dTexcMuD -------------------------------------- Learn practical investment banking I am starting the next batch of my Live Investment Banking program at Wizenius - Be Deal Ready from July 14th. Drop in your details and get a call from me (Link in the comment section)

Let's compare how I operate against a bank.  This is how a bank operates. 👇   They have a partnership with one or a few investment firms that are stock market-related. They share those funds with their clients. This is how I operate: 👇 I have partnerships with many investment partners that are both stock market-related and non-stock market-related. I can allow my clients to invest in many different asset classes, such as real estate, hedge funds, art, private equity, land, wine, and whiskey.   Most banks hire, fire, or reshuffle their employees, which means that changes are high and you will not have the same person dealing with you for more than 1 or 2 years. My first client invested with me almost 10 years ago and is still my client today. 🙂👍 A bank can offer investment opportunities that make people average single-digit returns; my offers offer double-digit returns; in short, I can make more money for my clients. 🚀 Banks have large overheads, big offices, and a large number of employees. I believe in lean operations, and don’t have these kinds of overheads. As a result, we don't have to charge my clients excessive fees, while banks need to charge their clients far more just to maintain their operations. The investment world is big enough for many different types of advisors and companies that people can invest with. The question for you is: who do you want to invest with, and how much value will they add to your life? 🤔

Alberta Credit Rating Upped to "AA" Congratulations Alberta! It's amazing what you can be achieved when a provincial government decides to take a pro-business approach which utilizes natural resources to create well paying jobs, which in turn supports secondary and tertiary businesses which build homes and schools helping to keep the economy successful. Lumber, Pulp & Paper, Mining, Fossil Fuels, and Agriculture are all successful. That success helps to create balanced budgets, schools, hospitals, homes, and infrastructure. British Columbia used to be successful before the incompetence of the Horgan/Weaver NDP-Green alliance of 2017 which hurled the province into an environmental economical tail spin. The passing of the torch to the Eby-NDP provincial government has resulted in the tail spin turning into an "burning plane crash". Unbalanced budgets, natural resource sector devastation, credit rating drops, project cost overruns and so many more failures breaking the backs of hard working British Columbians. Will British Columbia be great again? Can British Columbia pull-off a turnaround like Alberta? That's really up to how British Columbians vote. Seven years have proven that a pro-environment/anti-natural resource/anti-business government agenda is a "financial dumpster fire". British Columbian's need to make a choice on October 19, 2024. 🤔

🌟 Understanding the Value of Bond Assets 🌟 In the world of finance and investment, bond assets play a crucial role in creating a balanced and diversified portfolio. Bonds offer a reliable source of steady income and come with lower risk compared to equities. When you invest in bonds, you are essentially lending money to a government or corporation. In return, the issuer pays you regular interest over the life of the bond and returns the principal amount at maturity. This structure provides investors with predictable income and helps to mitigate the volatility seen in the stock market. Key Benefits of Bond Assets: Steady Income: Bonds provide regular interest payments, making them an attractive option for income-focused investors. Lower Risk: Compared to stocks, bonds generally have lower risk, as they are less susceptible to market fluctuations. Diversification: Adding bonds to your portfolio can help balance risk and enhance overall stability. Whether you are planning for retirement, saving for future expenses, or simply looking to diversify your investments, bonds can be a valuable component of your financial strategy. 📈💼 Let's connect and discuss how bond assets can fit into your investment portfolio! https://lnkd.in/dqxsav68 #Finance #Bonds #PortfolioManagement #FinancialPlanning

Interesting read and very relevant...While number of the global investment banks continue to revisit their location, business line strategies...etc, potential for leveraging AI / LLM across specifics within front, middle and back-office exist, contrary to the thought that these domains are significantly more complex to leverage LLM or due to regulatory pressures etc. that these Investment Banks currently face... point is the need is there for e.g. cost side on the middle and/or back office...and this warrants a fresh look at reinvention