Commercial and Investment Banking and the International Credit and Capital Markets: A Guide to the Global Finance Industry and Its Governance

This book by a former practitioner-turned-academic fills a clear gap in the current literature for a practice-focused text that brings together organisational structure, strategy, business models, regulation and governance of the finance industry with its products and services, including financing; trading services; mergers and acquisitions; IPOs; private equity; hedge funds; the structuring of cash and synthetic ETFs and CDOs and high frequency and algorithmic (algo) trading. Uniquely, it integrates the credit and capital markets by, for example, looking at securitisation as a 'conversion' process between the two markets and money market mutual funds as a capital market alternative to bank deposits offered in the credit market. It also examines the pervasive trend towards the dis-intermediation of bank credit markets by shadow banks and capital markets which is now accelerating worldwide due to the Basel III regulations and, in the eurozone, also to the ongoing sovereign debt crisis. It analyses the societal value of the industry as well as well as the need for regulation of firms and markets. From this follows consideration of both market and regulatory failure, 21st century financial instability and crisis and the consequent need for more effective governance structures for both banks and sovereign groupings such as the eurozone. This book will be required reading for new entrants to the financial markets, students, regulators, lawyers, accountants and IT personnel in the industry. But it is also designed quite explicitly for more experienced market participants who need to understand how the different parts of the financial services industry interact with each other to create the global financial system - Key features include: o The inter-relationships between commercial banking, shadow banking and investment banking o The automation of trading, high frequency trading, algorithms and dark pools o Assessing and managing portfolio risk in bank and sovereign debt in the post-crisis credit environment - The book will enable readers to: o Understand the technical aspects of new instruments and techniques such as structuring synthetic securities and using algos o Understand and discuss knowledgeably, the pervading issues in finance in the 21st century o Achieve the broader understanding that is required today for a managerial role in the industry