What do investment banks actually do

Visit http://www.moneyweek.com for more investment advice

Tim Bennett looks at what investment banks actually do, how they operate and how they manage to earn such big profits.

Category:

Education

Tags:

• investment
• banks
• finance
• investing
• banking
• money
• moneyweek
• tim
• bennett

[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!

[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.

[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.

[MoneyWeekVideos]

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

[noogahay]

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

[SuperMima1993]

excellenttt video.... thanks alot



[bhaskey7]

Thanks mate. Superb one. Your examples were so simple that a layman like me could understand easily.

[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!!!!

[Krisnadhuaja]

so investment banking is like a consultant and a broker?

[shannenss]

thank you, I needed investment lesson :)