What do investment banks actually do

[cwaddle]

so banks do not take positions with credit derivatives? What about banks offering guarantees to bonds or other credit derivatives? aren't they taking a position?

[Shebadad]

These "investment" banks don't have nearly enough real private capital to cover the bets on derivitives they are underwriting whether it be swaps or options, futures etc......they are so fukkin far off the reservation it is really funny to watch them dance around like a cat on a hot tin roof. They are really terrible managers of risk and even with their fukkin models and MIT talent they fukked this country up beyond repair..We need to bust up TBTF and let the US Treasury auction at real rates

[Shebadad]

Hey dude why don'tyou explain why they are allowed to co-mingle assets on the balaance sheet....IOW when my investment bank business goes to shit cause of my greed....how can I use depositors money or assets from the sound side of my "asset" blance sheet to shore up the losses from the bad bets I made.....eventually I have go crying my eyes out to Benny bucks and he gives me the cash I need him to make me liquid or as they like to prevert it these days make me "solvent" Lets face it zombies!!

[iLukas93]

keep up the good work!

[JayEss2k]

This is a New area i've decided to look into as a career option funny enough after watching the Film Margin Call lol

[butterfflyess]

omg youre awesome!!!!! please keep making videos!!!!

[SuperMima1993]

excellenttt video.... thanks alot

[Krisnadhuaja]

so investment banking is like a consultant and a broker?

[shannenss]

thank you, I needed investment lesson :)

[lehan117]

Hahaha I thought LSE was something else...

[MoneyWeekVideos]

zionismistruelyevil - yes these are all specialist areas. You would normally work in one of them (although a new graduate might be exposed to several in the initial phase of their career).

[MoneyWeekVideos]

sshhiillppaa - yes I have done videos on what is a swap, what is a future and what are options and covered warrants. They should come up in a search result on youtube. Happy viewing!

[ZionismIsTruelyEvil]

are Employees at an investment bank required to participate in all 5 areas of the listed operations or can an employee choose to solely specialise in one area? e.g. An employee would like to ONLY work in prop training ....

[sshhiillppaa]

Hi, i want to learn about different types of oil trading (options, swaps, forward) . Can you provide tutorials on that as well?

[sksameer208]

Thanks a lot sir.

[sebastionay]

Institutional Traders trade on behalf of the banks, Prop traders are independent traders paying to use the banks proprietary trading system.

[thinkbigbrain]

Very good and clear presentation. Please consider a follow up with more indepth information. Also another on the asset management industry

[25alo2514m]

hmm.. sounds like a a future prospect lol

[swpl1993]

wow. thank youu for making this video.

i just finished high school and i'm still unsure of what undegraduate course i'll choose. having an insight of investment banking was helpful :)

[MoneyWeekVideos]

L9PoloPa - I agree. My video is just an introductory guide so I have used some pretty broad headings. Different banks group activities under different headings in practice. Structured products are a good example of an asset management solution but I agree there are others. Tim.

[L9PoloPa]

i would have put 5) "Asset management" . Structured products are just one way to get big and quick commissions. however ther r lots of other things which u can do do for asset managemnt

[MoneyWeekVideos]

richsmartkid - market making is a defined role provided by the banks at certain exchanges such as the LSE. The banks commit to keep a market running in certain shares/other assets so the exchange can offer liquidity. Prop trading is risking the bank's own capital on trading (whether in forex, shares, commodities or whatever). So the two roles are different. Tim.

[richkidsmartkid]

@MoneyWeekVideos but market makers sometime cannot cross the market, so he or she has to use the firm's own capital. And market makers can also take in or short a lot of shares in the name of making a market, but actually speculating. So do you think there is a grey area between market making and prop trading?

[skint021]

How do i apply for a job?

[richkidsmartkid]

Question: are prop traders and market makers separated? or are they essentially the same group of people?

I really wanna work as a trader for an IB, where should I start? Is a profit track record important? Should I start trading right now?

[HIGHzONzLIFE]

sorry whats bar-clay-s

[MsBobbybrown420]

@HIGHzONzLIFE

An bank mainly in Europe.

[heheface]

Thx ! Your explanation is very helpful ! ^_^

[MoneyWeekVideos]

al9spike - "investment baNking". Sorry if my handwriting confused you.

[al9spike]

"investment bawking"? What?

[silverfoxidm]

Good to know; otherwise, when trust $ over to another sometimes they end up w/ the money and we the experience!

[Bobzeedo]

If you want to succeed in banking read "The Banker Who Saved His Soul" - it'll give you an inside look and perspective that will make a difference in your career.

[dstanev2004]

Quite useful video.. Thank you !

[sriramgirish]

nice one! learnt a lot............thanks a lot.

[abbyboyone]

Excellent video. I learned a lot.

[wweandtna12]

Same

[noogahay]

 You are the best discovery that just happened to me!!!!