How do investment banks really make money? [Video]

Welcome to our deep dive into the world of investment banking! In this video, we’ll uncover the secrets behind how investment banks really make money. If you’re curious about the mechanics of the investment banking division, equity underwriting, debt underwriting, and advisory services, this video is for you!

We begin by exploring the investment banking division and its core functions and revenue streams. Then, we dive into equity underwriting, discussing underwriting fees, the underwriting spread, and how investment banks facilitate IPOs and stock issuance. We also cover debt underwriting, where you’ll discover how investment banks underwrite bonds and other debt instruments.

In the advisory services section, we explain the importance of retainer fees and success fees, alongside the strategic advice provided by investment banks. To illustrate these concepts, we include practical examples with our Airbnb equity underwriting case study and the high-profile Microsoft and LinkedIn advisory case study.

Next, we delve into the sales and trading division, providing insights into proprietary trading and how investment banks generate profits through trading activities.

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Time stamps:
0:00 Introduction
0:43 Investment Banking (Equity and Debt underwriting)
3:18 AirBnb Case Study
4:16 Advisory Services
6:02 Microsoft Case Study
7:08 Sales and Trading

Keywords: investment banking, equity underwriting, debt underwriting, advisory services, underwriting fee, underwriting spread, retainer fee, success fee, Airbnb case study, Microsoft LinkedIn case study, sales and trading, proprietary trading, how investment banks make money, investment banking division, IPO, bond issuance, investment bank profits, financial advisory, stock issuance, trading revenue