Investment Banking in India and Abroad

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For those mildly interested in AMR - ...
Jamiroquai, have you read traders, guns and money by Satyajit Das ?


Nope, that's an S&T; focused book. I love to read, but I have a billion things to do even as I write this, so certain things take precedence over the others when it comes to how I spend my time.

Which is also why you see me bitch so much about why I don't have time for profile evaluations.
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[QUOTE=Jamiroquai;3082536
This also is a 'bailout'. It prevents you from being bankrupt. When countries go bankrupt and are unable to pay their debts, their punishment is usually that they can NEVER borrow in the international markets again. Like Argentina! And the domestic investors usually don't have the kind of ability to lend like international investors do - so defaulting on your international investor is a terrible terrible thing to do

.

So whenever a central bank bailout any bank, does it always arranges money by printing them??
and when the default bank has been bailed out, does that bank has to return those money to Central bank??( though i think they have to but how d they do it)

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So whenever a central bank bailout any bank, does it always arranges money by printing them??
and when the default bank has been bailed out, does that bank has to return those money to Central bank??( though i think they have to but how d they do it)


The central bank doesn't ALWAYS have to print additional cash. But it can, if it needs to, so it never ever runs out of money.

When a bank fails, the government has a variety of options to recoup its investment. One of these is by the government taking an equity stake in the bank - something that the government is not especially fond of doing. Other significant options include allowing the bank to borrow from the government based on the full value of some of the banks assets (whereas these assets would not get full value if sold).

These are some of the ways that the government ensures that it gets its money back.
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@Jamiroquai

I dont understand one thing, if the US is bailing out its banks, then why the hell Rupee loosing its power against USD.
India is going strong, GDP growth rate is high, then the ruppee should be strengthen in the global market but its loosing its value, Why is it so??

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@Jamiroquai

I dont understand one thing, if the US is bailing out its banks, then why the hell Rupee loosing its power against USD.
India is going strong, GDP growth rate is high, then the ruppee should be strengthen in the global market but its loosing its value, Why is it so??


See the exchange rate is determined by the forces of demand and supply and presently the demand for dollar has risen because most of the world market is falling so evryone is pessimistic so they are withdrawing their money(dollar) from Indian market as they are not sure of getting returns(there are other reasons also) so they want to keep their money safe. Due to this increasing demand for dollar it has strengthen against Rupee and rupee is depreciating.
Also investors are losing their confidence in India due to several other reasons
So dollar is flowing out of India.

I am not an expert, This is what i have inferred, pls someone correct me if am wrong
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@Jamiroquai

I dont understand one thing, if the US is bailing out its banks, then why the hell Rupee loosing its power against USD.
India is going strong, GDP growth rate is high, then the ruppee should be strengthen in the global market but its loosing its value, Why is it so??


If anything, the India story is fading fast, inflation is high, the government is going slow on reform, there are no new development projects, no infrastructure, populism of the government is at an all-time high, a chance to throttle inflation by bringing in FDI in retail disappeared, there is too much corruption. GDP estimates have been dramatically decreased in the last couple of weeks and India is seeing a tremendous slowdown in exports.

India is one of the worst countries to do business in, in the world. Living conditions in the city are abysmal and foreigners need to be paid hazard pay to come work in this situation. This is all very disappointing, but it the real India story.

While I was in India, all I heard from the newspapers was that everyone was excited about India and China. But the truth is, no one's that excited about India. They're more excited about China. About a 100 times more. At business school, if there's one country that people talk about - it is China.

It is unfortunate that the only thing positive about the entire 'India Story' is the belief by Indians that there are multiple positive things. And this myth is perpetuated by the Indian newspapers. I urge you to surf on over to the US edition of the Wall Street Journal and take a look. The last front-page WSJ article on India was on how the lower castes are looking to reservation to get jobs in our country.

On the other hand, while global indicators are poor, the US is seeing a gradual , but shaky resurgence of investor confidence. Consumer confidence is rising slowly and economic indicators are increasing slowly.

As you can see, there's a difference in public perception and reality as measured by economic indicators.
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See the exchange rate is determined by the forces of demand and supply and presently the demand for dollar has risen because most of the world market is falling so evryone is pessimistic so they are withdrawing their money(dollar) from Indian market as they are not sure of getting returns(there are other reasons also) so they want to keep their money safe. Due to this increasing demand for dollar it has strengthen against Rupee and rupee is depreciating.
Also investors are losing their confidence in India due to several other reasons
So dollar is flowing out of India.

I am not an expert, This is what i have inferred, pls someone correct me if am wrong


The exchange rate is not always determined by the forces of demand and supply. There are three ways by which the exchange rate is 'managed'.

Full Float - Here the forces of demand and supply are always working to move the exchange rate around. E.g. the US

Dirty Float - Here the reserve bank intervenes to correct exchange rates once in a while when it believes that the exchange rate is not working in the country's best interests. E.g. India. Here the RBI sells dollars in the market to increase the value of the INR and vice versa. However, if the RBI sells too many dollars, it will run out of it's supply of USD which it has reserved for large economic shocks. And despite the 'growth story' we've been telling ourselves, we have a very nominal amount of USD.

Fixed - Here the reserve bank fixes the value of the currency to the USD. So as the USD moves, the currency moves - but the exchange rate never changes with respect to the USD. This is possible when the central bank has a LOT of USD. Since China has done so much trade with the US, it has the ability to do this.
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Hi Jamiroquai,

Many thanks for this informative discussion going on. I've some queries from the perspective of an investor. Lots of people would be having these concerns in such turbulent times. It will be glad to hear from you.

1) What strategy an Individual Investor should adhere to in this kind of situation? I mean there are lots of investors who can't invest in US, China or any other countries and most of their capital is tied up in either BSE or NSE, which are going only way - downwards. So how can one protect/hedge oneself from this irrational behavior?

2) What about strategy of investors who can and who are capable of investing all over the globe? From where do they pull out their funds and where do they tend to park it?

3) What strategy do FIIs, Portfolio Managers, Hedge Fund Managers, I-Bankers and many multimillionaire investors follow in this scenario, all over the world?

4) I've read that Portfolio Managers, Brokers, Fund Managers and everyone those who work in the Investment industry aren't allowed to "trade" in stocks, at least officially. So how do they manage to make money in a bear market as well as a bull market?

Thanks, in advance 😃

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i recently heard that Goldman, JP, have moved away from investment banking business.
see this video from " 14:30 to 16:00 min "
in this 1.5 min this guy said that goldman and JP are no longer investment banks, dey are now like just another citibank.

CFA 2012 Level 1- Fixed Income Part 1- Mr Kwok Wai Kong, MBA, MSc, BSc, CFA - YouTube

have dey stopped business in HK or everywhere else??

569
i recently heard that Goldman, JP, have moved away from investment banking business.
see this video from " 14:30 to 16:00 min "
in this 1.5 min this guy said that goldman and JP are no longer investment banks, dey are now like just another citibank.

CFA 2012 Level 1- Fixed Income Part 1- Mr Kwok Wai Kong, MBA, MSc, BSc, CFA - YouTube

have dey stopped business in HK or everywhere else??


that is patently untrue. JP Morgan, Goldman Sachs and Citigroup Global Markets run large and very profitable investment banking centers (though I can't say the same for their trading desks!)
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Hi Jamiroquai,

Many thanks for this informative discussion going on. I've some queries from the perspective of an investor. Lots of people would be having these concerns in such turbulent times. It will be glad to hear from you.
...

Thanks, in advance :)


This would be a job for our friend Ashmole who offered to answer questions on S
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Hi,

It will be great to hear from you on following topics.


(a) project finance (something that is really popular in India and dominates the debt-side investment banking)

(d) Everyone knows what a loan is, but do you guys get what bonds are - investment grade and high-yield bonds - these are really important in understanding how finance occurs across the world

I'm sure that everyone is aware of these - but the Indian newspapers that I've read don't even skim the surface of what is going on - even the Economic Times
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Merry Xmas everybody!

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Hi,

It will be great to hear from you on following topics.


Which is the one you'd like to hear about the most?
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Jamiroquai Says
Which is the one you'd like to hear about the most?


Hi,

Merry Christmas to you too :)

I'd like to hear about

(d) Everyone knows what a loan is, but do you guys get what bonds are - investment grade and high-yield bonds - these are really important in understanding how finance occurs across the world

Thanks, in advance 😃
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hummm... gives good insights.......

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Hi Jamiroquai,

I'd be very grateful if you can share your post "A day in the life of an Investment Banker" on this thread. I've started this thread so puyz can get some idea what it is to work in the field. Your post will be a guiding beacon for aspiring Investment Bankers. It will be glad if you can share your post on that thread.

Thanks 😃

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Hi Jamiroquai,

I'd be very grateful if you can share your post "A day in the life of an Investment Banker" on this thread. I've started this thread so puyz can get some idea what it is to work in the field. Your post will be a guiding beacon for aspiring Investment Bankers. It will be glad if you can share your post on that thread.

Thanks :)


Hey Jason Bourne :-)

I've already posted a day in the life of an investment banker here on the forum; and I've been pretty detailed as to how life goes one. Time constraints prevent me from re-typing the entire thing. Why don't you just copy paste the entire post (you have my permission to) and just like my profile to that post?
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Hey Jason Bourne :-)

I've already posted a day in the life of an investment banker here on the forum; and I've been pretty detailed as to how life goes one. Time constraints prevent me from re-typing the entire thing. Why don't you just copy paste the entire post (you have my permission to) and just like my profile to that post?


Many thanks, mate :)

Sure I'll definitely post it on that thread. Your post is indeed a detailed one. I am sure it would help many IB aspirants.
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hi jamiroquai
this is a hugely useful thread for those who only get attracted to IB looking at its sky-hi image without knowing wht it really entails.

i am from humanities background bt gt interested in numbers/finance after doing a brief stint at a leading Bank in India. Is IB for me? i understand tht u had mentioned in 1 of the posts tht fr analyst, even persons with mech engg (for example) will do as long as they pass out of IIM and the likes.

bt if a humanities student aspires to be IB, is it a bit too much?

thanx in advance