Courses

F506

Commercial and Investment Banking

  • 7-weeks
  • 1.5 credits
  • Prerequisite:

This course focuses on the competition between investment and commercial banks. Since F505 covers commercial banking in detail, much of this course will examine investment banking.

  • The investment banking industry: what investment banks do, who the major players are, the legal background, and why U.S investment banks have historically been so strong
  • The financing cycle of firms: venture capital and private equity
  • Equity underwriting: the mechanics of bringing an issue to market, the role of research
  • Debt securities: a comparison of loans, the private placement market, and corporate bonds; the role of the Rule 144A private placement market
  • The role of investment banks in mergers and acquisitions
  • Financial system design: an international comparison of financial systems, the impact of banks, investment banks, and the legal system on the efficiency of the financial system and economic activity

Selected cases from Harvard Business School and journal readings. K.T. Liaw, The Business of Investment Banking, Wiley & Sons, 1999.The grade will be based on grades from a final exam, a course project, cases, and class participation.