Now Entering Russ's World
Investment banking is a term you hear quite often, but many are not familiar with what it actually means. I was one of those individuals until I did some further research. Here is what I have learned in my research.
What is Investment Banking?
Investment banking deals with corporate finances. This includes the raising of funds within capital markets, advisory services for acquisitions and mergers, negotiations of mergers, and working with bidders. An Investment bank is an institution that serves as an agent or underwriter for organizations and corporations that issue securities. Investment banks will also typically offer services such as merger and acquisition advice and corporate restructuring.
Industry and Product Coverage Groups
The industry of investment banking is split into two different groups. Those groups are Industry Coverage Groups and Product Coverage Groups. Industry coverage groups are specific to individual industries. Examples of industries covered by industry coverage groups would include healthcare, technology, media, government (public finance) and financial institutions. These types of groups maintain a crucial relationship with corporate players in the industry in hopes of bringing in business to the investment bank. Product coverage groups focus is on specific financial products. For example leveraged finance, asset finance and leasing, mergers and acquisitions as well as public finances are all types of financial products.
James Dondero the Investment Banker and President of Highland Capital Management
James Dondero is an investment banker with extensive knowledge and experience in the profession. James received his education at the University of Virginia. It was here that he obtained his Bachelor’s degree in Accounting and Finance. James managed an account for American Express that contained fixed income funds estimated at around 1 billion dollars. This was from 1985-1989. From there James went on to be the Chief investment officer at Protective Life’s Subsidiary, GIC. He helped the company progress from just a concept to a 2 billion dollar company in 1993. James went on from there to be a co-founder of Highland Capital Management where he is still the president today. His portfolio includes work with emerging market debt, high-yield bonds, common stocks and much more.