This is a division the larger banking industry that is responsible for a creation of capital for other firms. This is achieved by underwriting or in other words acting as firm’s agents in the new debt and issuance of securities. Players in this field may also assist their clients involved in mergers and acquisitions with other services, profitable to them, as trading of derivatives, market making and equity securities. Investment banking as the name suggests are undertaken by investments banks with their dedication and specialization in the field.
Investment banks are nothing to like the normal banks that we are used to business loans or depositing our paychecks. Though down in history, investment banks could have lead to the major financial meltdowns they are or they have been out to make profit, just like any other typical bank.
Their activities may range and not limited to, raising equity capital which can for example be through helping in launching an IPO or there so helping their clientele to creating special stocks that can be included to their perspective investors.
Investment banks help in issuing bonds to help the firm raise capital. On this most of them also the insure the bonds they issue by at times launching new products as credit default sweeps. With the repeal of Glass-Steagall in the 90s, investments banks can now offer off-limits services traditionally like commercial banks. They also include in their functions alongside the M&A advisory with services such as corporate treasury, financial management and not limited to risk management. The players in this industry mainly earn money from charge fees and commissions for providing these services and other kinds of advisory activities.
Competition has not spared this industry with investment banks or firms coming up each time with the same services and founded on the famous business ideology of making money. But in the midst of all this, Highland Capital Management has the experience, discipline and the boldness that each client out there is looking for. The company was founded in 1993 with an excellent co-founder James Dondero who is now the firm’s president. The firm has been in the forefront in the development of the Collaterized Loan Obligation market and a leading partner in developing credit oriented solutions for other companies worldwide.
Mr.Dondero is also the chairman of Cornerstone Healthcare, CCS Medical and Nexbank.He also serves as a member of the American Banknote and MGM boards. He is also an active philanthropist supporting initiatives in education, veteran s affairs and public policy.
All his qualifications are as a result of him graduating from the University of Virginia with highest honors (Beta Gamma Sigma, Beta Alpha PsI) from the McIntire school of Commerce with dual majors in Accounting and Finance.
With business magnet brains like that of James Dondero,the investment banking industry pride in their shadows of professionalism and quality services. This makes it easier for the clients to make better, most informed choices when out to find an investment bank.