The Business of Investment Banking: A Comprehensive Overview [Hardcover]

K. Thomas Liaw (Author)

Book Description

ISBN-10: 0471739642 | ISBN-13: 978-0471739647 | Publication Date: December 30, 2005 | Edition: 2

In recent years, monumental events have altered the financial landscape, and the investment banking industry has been likewise transformed.

In the United States, deregulation has permitted new affiliations among banks, securities firms, and insurance companies, allowing them to offer a broader range of services. At the same time, deregulation overseas has spurred investment in foreign markets and accelerated a sweeping trend toward globalization. On the other hand, corporate scandals like those at Enron and WorldCom have prompted Congress to impose stringent new regulations in an effort to restore public confidence in the capital markets. Meanwhile, advances in information technology have changed the way Wall Street firms present their products to the public and have made vast informational resources available online.

Investment banks must navigate the shifting regulatory terrain and counter mounting competition, while taking full advantage of burgeoning investment banking opportunities. In meeting these challenges, timely and accurate information is a critical asset.

In The Business of Investment Banking, Dr. K. Thomas Liaw provides an inclusive, up-to-date guide to the evolving investment banking industry. In this new edition, Dr. Liaw offers a substantial revision of his bestselling text, responding to requests from educators and professionals alike.

Incorporating the most recent developments in the industry, the author describes:

• Financial holding companies, full-service investment banks, boutique investment banks, and their lines of businesses
• Strategies for risk management, such as market risk, credit risk, operating risk, reputation risk, legal risk, and funding risk
• Career opportunities in investment banking, career paths, recruitment, and the application and interview process
• Key investment banking operations, including venture capital and buyouts, M&A services, equity underwriting, debt underwriting, securitization, financial engineering, investment management, and securities services
• Fundamentals for successful trading, arbitrage strategies, and technical trading techniques
• Regulatory issues and strategies relating to the Sarbanes-Oxley Act of 2002 and analyst conflict of interest
• Ethics and professionalism

In addition, Dr. Liaw discusses investment banking opportunities in China, Japan, the EMU, and emerging markets, as well as the special challenges that come with globalization.

A staple of industry training programs and a valued reference among banking professionals in its first edition, The Business of Investment Banking, Second Edition adds a wealth of new information to an already indispensable practical resource.

Editorial Reviews

From the Inside Flap

In recent years, monumental events have altered the financial landscape, and the investment banking industry has been likewise transformed.

In the United States, deregulation has permitted new affiliations among banks, securities firms, and insurance companies, allowing them to offer a broader range of services. At the same time deregulation overseas has spurred investment in foreign markets and accelerated a sweeping trend toward globalization. On the other hand, corporate scandals like those at Enron and  WorldCom have prompted Congress to impose stringent new regulations in an effort to restore public confidence in the capital markets. Meanwhile, advances in information technology have changed the way Wall Street firms present their products to the public and have made vast information resources available online.

Investment banks must navigate the shifting regulatory terrain and counter mounting competition, while taking full advantage of burgeoning investment banking opportunities. In meeting theses challenges, timely and accurate information is a critical asset.

In the Business of Investment Banking, Dr. K. Thomas Liaw provides an inclusive, up-to-date guide to the evolving investment banking industry. In this new edition, Dr. Liaw offers a substantial revision of his bestselling text, responding to requests from educators and professionals alike.

Incorporating the most recent developments in the industry, the author describes:

• Financial holding companies, full-service investment banks, boutique investment banks, and their lines of businesses
• Strategies for risk management, such as market risk credit risk, operating risk, reputation risk, legal risk, and funding risk
• Career opportunities in investment banking, career paths, recruitment, and the application and interview process
• Key investment banking operations, including venture capital and buyouts, M& A services, equity underwriting,debt, underwriting securitization, financial engineering, investment management, and Securities Services
• Fundamentals for successful trading, arbitrage strategies, and technical trading techniques
• regulatory issues and strategies relating to the Sarbanes-Oxley Act of 2002 and analyst conflict of interest
• Ethics and professionalism

In addition, Dr. Liaw discusses investment banking opportunities in China, Japan, and the EMU, and emerging markets, as well as the special challenges that comes with globalization.

A staple of industry training programs and a valued reference among banking professionals in its first edition, The Business of Investment Banking, Second Edition adds a wealth of new information to an already indispensable practical resource.

From the Back Cover

The standard volume on investment banking, newly revised

For years, professors, graduate students, and banking professionals have relied on Dr. K. Thomas Liaw's authoritative text, The Business of Investment Banking, for complete coverage of venture capital, underwriting, mergers and acquisitions, asset securitization, financial engineering, trading, and investment management. Now, in light of major changes in the investment banking world, Dr. Liaw presents this important revision of his bestselling work. In his characteristically lucid, accessible style, Dr. Liaw explains how deregulation, new regulations, globalization, and advancements in information technology are reshaping the investment banking industry.

In this Second Edition, Dr. Liaw discusses:

• The convergence of financial services following deregulation
• The importance of establishing—and difficulties in maintaining—a global presence in today's market
• Careers in investment banking and what it takes to prosper in a dynamic industry
• Major sources of revenue in today's market environment
• Challenges and strategies under new regulations

With new chapters on business strategies, banking in China, and the pros and cons of boutique vs. full-service firms, this book has everything a newly minted analyst or MBA candidate needs to know—including tips on breaking into the industry and choosing the right path for you. A uniquely comprehensive treatment of investment banking in a single volume, this thoroughly updated version of The Business of Investment Banking will show you where the industry is today and what present trends portend for the future.

See all Editorial Reviews

Product Details

• Hardcover: 456 pages
• Publisher: Wiley; 2 edition (December 30, 2005)
• Language: English
• ISBN-10: 0471739642
• ISBN-13: 978-0471739647
• Product Dimensions: 9.9 x 7.1 x 1.4 inches
• Shipping Weight: 2.1 pounds (View shipping rates and policies)
• Average Customer Review: 3.9 out of 5 stars  See all reviews (22 customer reviews)
• Amazon Best Sellers Rank: #886,364 in Books (See Top 100 in Books)

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Customer Reviews

Most Helpful Customer Reviews

51 of 51 people found the following review helpful:

4.0 out of 5 stars Good introduction, but no details, July 5, 2000

By 

Roland Buresund - See all my reviews

This review is from: The Business of Investment Banking (Hardcover)

This is an excellent book for anyone wondering what Investment Banking is all about, but who doesn't want to learn how to price a company. It describes in sufficient detail, for the reader to understand, the concepts underlying Investment Banking and what they really do in the Investment Banking world as well as explaining in easy (relatively) terms the jargon that is used in the business.

If you want the theoretical underpinnings of the financial world, this book is not for you. If, on the other hand, you're an aspiring Investment Banker that wants to know what it is all abour or if you're just curious about what the Investment Banking business is about: buy this book as a primer/introduction and if you find it interesting, search for a more theoretical book.

18 of 20 people found the following review helpful:

1.0 out of 5 stars Disappointing and Inaccurate, February 13, 2001

By A Customer

This review is from: The Business of Investment Banking (Hardcover)

My biggest problem with this book is that it contains much misleading information on investment banking -- particularly with respect to securities law. As a former corporate and securities attorney and now investment banker, I found that at many points Liaw was at best half right and at worst completely wrong with respect to some of the finer points of the financing process. The book also contains numerous grammatical mistakes that are extremely distracting. (I would have expected more from John Wiley & Sons. Next time please hire a proofreader!) Is that too much to ask for an $80 book? In fairness, I did not get past the first 3 chapters of the book so perhaps the book gets much better later on, but I sincerely doubt it. In short, this book is not worth the money.

16 of 18 people found the following review helpful:

5.0 out of 5 stars just read the book, July 28, 1999

By A Customer

This review is from: The Business of Investment Banking (Hardcover)

I was disappointed that I could not get any discount, but I bought it anyway. I wanted to get an understanding of this particular business segment. After reading several chapters of the book, I have to say that I am glad I purchased this title. It's an excellent reading for business school students and for those interested in this business. The book does not cover everything under the sun, but it does cover many of the major business areas very well. Nice and easy reading, no nonsense mathmatical equations. A good book.