Monday, September 22, 2008

How Bank Convertible Business Works

A bank's convertibles business is among the top three industries globally in terms of revenue. This specialist panel of sales, trading, research and origination professionals is active in US, European, Asian and Japanese convertibles

All Banks dominates the European convertibles market with high levels of client penetration and service, and this breadth of coverage and market penetration is being increasingly recognized and rewarded in the US. These groups have a strong international franchise in Europe, Japan and Asia, established through a team culture of innovation, multi-product knowledge, consistency and capital commitment.

This convertibles business has been consistently recognized in numerous industry surveys including, most recently, the accolade of European Equity Linked House of the Year 2003.

The convertibles business is a prime example of cross-selling incorporating, for example, fixed income, equities, derivatives, swaps and options. Banks use innovation across all those products to differentiate themselves from the rest of the pack. Products traded include convertible bonds, common stock, spot and forward listed futures and options, interest rate futures, government bonds and futures, preference shares, and a range of contracts from bespoke equity options to interest rate and equity swaps, convertible asset swaps and credit default swaps.

Banks offer clients global distribution and trading capability in convertible bonds. This service covers all convertible investor types, including hedge funds, dedicated convertible investors and private banking/retail. This is one of the largest convertible distribution platforms of any investment banking.

This has consistently been the lead book runner of international convertibles & exchangeable. This, combined with the strength of the corporate relationships makes a favorite choice lead manager.
The Bank Convertible bonds are typically debt securities that can be converted into shares of a company in lieu of repayment.

Usually it is the company that issues the convertibles. Companies issue convertibles as alternative sources of capital, in addition to traditional debt and ordinary shares. They have structured and significant number of convertibles for a wide range of clients in many different industries.

Recent developments in capital markets have led to the increased use of preference shares as another alternative source of capital. This is just one of the many options that are available to people who are looking to make investements and other forms of capital leveraging using bank convertibles.

Cars and bank convertibes have much similarities as we all know from an investement stand point. The only thing is that cars provide a much worse return on investement because as soon as you buy them a lot of the value is removed from the car. This is true of the value of the car through out the life time of owning it.
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