Corporate and Investment Banking

This module on Corporate and Investment Banking has three main aims, to:

1. examine the financial needs of companies in relation to corporate and investment banking
2. illustrate the financial services provided by corporate and investment banks and how they support companies in their business
3. analyse the structure and management of corporate and investment banks.

The module examines corporate and investment banking from the point of view of companies that require financial support, and from the perspective of the banks that provide financial solutions. In this way you will develop a broader understanding of how corporate and investment banks operate, the factors that drive the demand for their services, how banks respond to the needs of clients, and how banks develop and maintain their competitiveness.

Learning outcomes

When you have completed this module, you will be able to:

• explain the core elements of corporate and investment banking services, and how these support non-financial firms
• discuss the roles that corporate and investment banks play in the fundraising process of a company
• assess the quality of the capital structure of a company, and discuss a variety of credit solutions
• analyse working capital, money management, and money management strategies
• assess the factors that drive the internationalisation of banking
• discuss the organisation, financial strategy and performance of the largest corporate and investment banks
• discuss the main sources of risk in the financial sector
• explain and develop risk management strategies using simple derivative contracts
• analyse and assess structured finance, including securitisation, credit derivatives, project finance, and mezzanine finance
• explain the steps in an initial public offering, IPO pricing, and the role played by the IPO underwriting syndicate
• discuss the key characteristics of private equity investments
• examine the role of investment banks in mergers and acquisitions.

Tuition and assessment

Students are individually assigned an academic tutor for the duration of the module, with whom you can discuss academic queries at regular intervals during the study session.

You are required to complete two Assignments for this module, which will be marked by your tutor. Assignments are each worth 15% of your total mark. You will be expected to submit your first assignment by the Tuesday of Week 6, and the second assignment at the end of the module, on the Tuesday after Week 10. Assignments are submitted and feedback given online. In addition, queries and problems can be answered through the Virtual Learning Environment.

You will also sit a three-hour examination on a specified date in September/October, worth 70% of your total mark. An up-to-date timetable of examinations is published on the website in July each year.

Study resources

• Study guide: The module study guide is carefully structured to provide the main teaching, defining and exploring the main concepts and issues, locating these within current debate and introducing and linking the assigned readings.
• Key texts: Arnold G (2014) The Financial Times Guide to Banking. Harlow UK, Pearson Education Ltd.
• Readings: Throughout the module you will be directed to study a selection of readings, including journal articles, book extracts and case studies that are of particular relevance and interest to the topics covered in the module.
• Virtual learning environment: You will have access to the VLE, a web-accessed study centre. Via the VLE, you can communicate with your assigned academic tutor, administrators and other students on the module using discussion forums. The VLE also provides access to the module Study Guide and assignments, as well as a selection of electronic journals available on the University of London Online Library.

Study calendar 2022/23

Study calendars are subject to change.

Module overview

Unit 1 The Role of Banks in Corporate Business

• 1.1 Introduction
• 1.2 What is Banking?
• 1.3 Retail banking, Corporate banking and Investment Banking
• 1.4 The Demand for Corporate and Investment Banking
• 1.5 Conclusions

Unit 2 Corporate Banking: Lending

• 2.1 Introduction
• 2.2 Equity, Debt, and the use of Leverage
• 2.3 Optimising Capital Structure
• 2.4 Capital Raising: Debt and Bonds
• 2.5 Corporate Banking and Credit Risk Assessment
• 2.6 Conclusion

Unit 3 Money and Financial Management

• 3.1 Introduction
• 3.2 Production Cycles, Working Capital and Financial Management
• 3.3 Financial Solutions for Working Capital and Money Management
• 3.4 Domestic and Cross-border Payments
• 3.5 Cash Management and Clearing Strategies in Multinational Firms
• 3.6 Conclusion

Unit 4 International Banking

• 4.1 Introduction
• 4.2 Banking across Borders
• 4.3 National Banking Systems
• 4.4 Global Players in Corporate and Investment Banking
• 4.5 Corporate and Investment Banking: Performance and Market Share
• 4.6 Conclusion

Unit 5 Risk Management

• 5.1 Introduction
• 5.2 Risk Management in the Financial Sector
• 5.3 Main Risk Types
• 5.4 Economic and Available Capital
• 5.5 Derivatives Contracts
• 5.6 Conclusion

Unit 6 Structured Finance

• 6.1 Introduction
• 6.2 Structured Finance: Credit and Capital Market Convergence
• 6.3 Securitisation: From Originating-to-hold to Originating-to-distribute
• 6.4 Credit Derivatives
• 6.5 Project Finance
• 6.6 Mezzanine Finance
• 6.7 Conclusion

Unit 7 IPOs, Listing services and Underwriting syndicate

• 7.1 Introduction
• 7.2 Going Public: Why, When and Where?
• 7.3 What Should a Firm’s CEO and its Shareholders know before Going Public?
• 7.4 The Key Steps of the Listing Process
• 7.5 The Structure and Role of IPO Underwriting Syndicates
• 7.6 Assessing the Success of an IPO: the Cases of Facebook and Twitter
• 7.7 Conclusion

Unit 8 M&A, Private equity and Venture Capital

• 8.1 Introduction
• 8.2 Private Equity Investments: Definition, Classification and Types of Firms
• 8.3 The Private Equity Business Model
• 8.4 Mergers and Acquisitions
• 8.5 The Role of Investment Banks in Mergers and Acquisitions
• 8.6 Conclusion

Module samples

• M486 Module introduction (PDF)
• M486 Specimen examination (PDF)
• M486 Unit 1 (PDF)

Disclaimer

Important notice regarding changes to programmes and modules