With trading it is clear to me, but what sort of events affect investment banking divisions in the banks (M&A, DCM, ECM)? Please help a non-finance major to understand this.
@ a global market level: an overall poor economy (falling market prices, high unemployment, etc.) generally mean less i-banking deal flow as companies won't be interested in spending cash to aquire or risk value by going public or issuing more shares when markets are shit. Also, when the economy is bad, less companies are started and there isn't much activity for banks focused on growth capital. General declines in creditworthiness can lead to increases in restructuring dealflow, though and some banks do get business from that.
"Yes. Money has been a little bit tight lately, but at the end of my life, when I'm sitting on my yacht, am I gonna be thinking about how much money I have? No. I'm gonna be thinking about how many friends I have and my children and my comedy albums."
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@ a global market level: an overall poor economy (falling market prices, high unemployment, etc.) generally mean less i-banking deal flow as companies won't be interested in spending cash to aquire or risk value by going public or issuing more shares when markets are shit. Also, when the economy is bad, less companies are started and there isn't much activity for banks focused on growth capital. General declines in creditworthiness can lead to increases in restructuring dealflow, though and some banks do get business from that.
Sounds like the question asked on JPM's IBD online application...
Amet aut velit iusto dolor id. Est optio ipsum vero vel atque molestiae natus amet. Unde voluptas ex sunt soluta eum similique. Rerum fugit quis consequatur eos sed.
Et deleniti est numquam sed consequatur. Quia aut corporis quisquam magni voluptates quo. Optio placeat sit sit repellendus consequatur excepturi. Earum saepe soluta aut consectetur occaecati odit. Accusantium quam corrupti corrupti illum. Voluptatem eum reprehenderit laborum repudiandae. Nemo ducimus quidem vel.
Cum vel dolores possimus non fugiat non asperiores. Odit iste aut incidunt ut voluptatem rem. Aut nisi quam facere consequatur aliquid. Qui a dignissimos dolorum eveniet enim.
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