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Morgan
Investment banking
Traditionally, banks are engaged either in commercial banking or investment banking. In commercial banking, the institution collects deposits from clients and gives direct loans to businesses and individuals. Through investment banking, an institution generates funds through various channels. (For e.g. when Mr. Rathod needed a loan to buy a car, he visited a commercial bank and when he needed to raise cash to fund an acquisition or to build more factories, he made a phone call to an investment bank). Investment Banker or Lead Manager or Merchant Banker has been defined under the Securities & Exchange Board of India (Merchant Bankers) Rules, 1992 as "any person who is engaged in the business of issue management either by making arrangements regarding selling, buying or subscribing to securities as manager, consultant, advisor or rendering corporate advisory service in relation to such issue management". A "Merchant Banker" can also be defined as "An organization that acts as an intermediary between the issuers and the ultimate purchasers of securities in the primary security market" Investment Banking is made up of lots of businesses and deal in almost in the same commodity viz. money and are structured along broadly the same lines. Investment banks have two primary roles:
Firstly, they help governments and companies to raise money through the sale of shares and bonds (a form of long-term lending). Trading securities for cash or securities (i.e., facilitating transactions, market-making), or the promotion of securities (i.e., underwriting, research, etc.) referred to as the "sell side."
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Secondly, they maintain a market in those stocks and shares (collectively known as securities) by acting as brokers, enabling their buying and selling. Dealing with pension funds, mutual funds, hedge funds, and the investing public, who use the products and services of the sell-side in order to maximize their return on their investment constituting the "buy side". To continue investment banking is what investment banks do.
This definition can be explained in the context of how investment banks have evolved in their functionality and how history and regulatory intervention have shaped such an evolution. Investment banks help companies and governments and their agencies to raise money by issuing and selling securities in the primary market. They assist public and private corporations in raising funds in the capital markets (both equity and debt), as well as in providing strategic advisory services for mergers, acquisitions and other types of financial transactions.
Definition
An individual or institution, which acts as an underwriter or agent for corporations and municipalities issuing securities. Most also maintain broker/dealer operations, maintain markets for previously issued securities, and offer advisory services to investors. Investment banks also have a large role in facilitating mergers and acquisitions, private equity placements and corporate restructuring. Unlike traditional banks, investment banks do not accept deposits from and provide loans to individuals. Also called Investment Banker.
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selling products both on behalf of the bank's clients and also for the bank itself. Banks undertake risk through proprietary trading, done by a special set of traders who do not interface with clients and through Principal Risk, risk undertaken by a trader after he or she buys or sells a product to a client and does not hedge his or her total exposure. Banks seek to maximize profitability for a given amount of risk on their balance sheet. An investment bank is split into the so-called Front Office, Middle Office and Back Office. The individual activities are described below:
1.
Front Office:
Investment Banking is the traditional aspect of investment
banks which involves helping customers raise funds in the Capital Markets and advising on mergers and acquisitions. Investment bankers prepare idea pitches that they bring to meetings with their clients, with the expectation that their effort will be rewarded with a mandate when the client is ready to undertake a transaction. Once mandated, an investment bank is responsible for preparing all materials necessary for the transaction as well as the execution of the deal, which may involve subscribing investors to a security issuance, coordinating with bidders, or negotiating with a merger target. Other terms for the Investment Banking Division include Mergers & Acquisitions (M&A) and Corporate Finance (often pronounced "corpfin"). Investment management is the professional management of various securities (shares, bonds etc) and other assets (e.g. real estate), to meet specified
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Research
Structuring.
process of market making, traders will buy and sell financial products with the goal of making an incremental amount of money on each trade. Sales is the term for the investment banks sales force, whose primary job is to call on institutional and high-net-worth investors to suggest trading ideas (on caveat emptor basis) and take orders. Sales desks then communicate their clients' orders to the appropriate trading desks, which can price and execute trades, or structure new products that fit a specific need.
2.
Middle Office:
Risk Management involves analysing the market and credit risk
that traders are taking onto the balance sheet in conducting their daily trades, and setting limits on the amount of capital that they are able to trade in order to prevent 'bad' trades having a detrimental effect to a desk overall. Another key Middle Office role is to ensure that the above mentioned economic risks are captured accurately (as per agreement of commercial terms with the counterparty) correctly (as per standardised booking models in the most appropriate systems) and on time (typically within 30 minutes of trade execution). In recent years the risk of errors has become known as "operational risk" and the assurance Middle Offices provide now include measures to address this risk. When this assurance is not in place, market and credit risk analysis can be unreliable and open to deliberate manipulation.
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Back Office:
Operations involve data-checking trades that have been
conducted, ensuring that they are not erroneous, and transacting the required transfers. While it provides the greatest job security of the divisions within an investment bank, it is a critical part of the bank that involves managing the financial information of the bank and ensures efficient capital markets through the financial reporting function. The staff in these areas are often highly qualified and need to understand in depth the deals and transactions that occur across all the divisions of the bank.
II.
New products:
Investment banking is one of the most global industries and is
hence continuously challenged to respond to new developments and innovation in the global financial markets. Throughout the history of investment banking, many have theorized that all investment banking products and services would be commoditized. New products with higher margins are constantly invented and manufactured by bankers in hopes of winning over clients and developing trading know-how in new markets. However, since these can usually not be patented or copyrighted, they are very often copied quickly by competing banks, pushing down trading margins. For example, trading bonds and equities for customers is not a commodity business but structuring and trading derivatives is highly profitable .Each OTC contract has to be uniquely structured and could involve complex pay-off and risk profiles. Listed option contracts are traded through major exchanges, such
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2.
parts of a bank, creating the potential for financial movements that could be market manipulation. Authorities that regulate investment banking (the FSA in the United Kingdom and the SEC in the United States) require that banks impose a Chinese wall which prohibits communication between investment banking on one side and research and equities on the other. Some of the conflicts of interest that can be found in investment banking are listed here: Historically, equity research firms were founded and owned by investment banks. One common practice is for equity analysts to initiate coverage on a company in order to develop relationships that lead to highly profitable investment banking business. In the 1990s, many equity researchers allegedly traded positive stock ratings directly for investment banking business. On the flip side of the coin: companies would threaten to divert investment banking business to competitors unless their stock was rated favorably. Politicians acted to pass laws to criminalize such acts. Increased pressure from regulators and a series of lawsuits, settlements, and prosecutions curbed this business to a large extent following the 2001 stock market tumble Many investment banks also own retail brokerages. Also during
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Comply with legal formalities e.g. obtaining necessary approvals from the regulators (i.e. Government / RBI) Draft the scheme of amalgamation (merger/ acquisition)
2.
Corporate counseling:
It includes a whole range of financial services provided by
an IB to a corporate with a view to ensure better performance, maintain steady growth and create a better image among investors. It covers the entire field of IB services. However it should be noted that the scope of corporate counseling is limited to suggestions and opinions leaving to the client to take corrective actions for solving its corporate problems. Basically the I-banker finds out the problem areas of an enterprise which include organisational goals, operational scales, choice of a product, expansion plans (new product launches), forecasting of a product, and restructuring of a business, if required, in order to sustain growth in the long run.
3. Project counseling:
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Preparing a project report (to procure regulatory approvals, financial assistance, conducting market studies etc)
Deciding upon a finance pattern i.e. to opt for a mix of internal and external sources (owners funds, borrowed funds, private investors or public issues) Presenting the project to potential investors
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Advise the company to appoint auditors, solicitors and BOD (board of directors)
Draft/ finalise the prospectus including price band, opening and closing date of the issue, timing the issue considering market sentiments Liaise with the registrar to the issue Application for listing with the bourses Advertise the issue Underwrite the issue Allotment /refund of subscription Calculation of underwriters liability in case of undersubscription
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10.
NRI investment and advisory servicers: In order to attract foreign investment in the primary and
secondary markets I-bankers provide investment advisory services to NRIs. i.e. Identify investment opportunities capital markets, real estate etc. Select securities Portfolio management purchase/sale of securities Provide research reports on investment opportunities Keep the client informed on RBI/FERA compliances with respect to investments and sale and return on investments.
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Investment Banking With Reference To J.P. Morgan 11. Venture capital financing:
Financing an emerging project is called venture capital financing. The I-banker checks on feasibility of the project and if viable funds the project. In this financing the I-banker is repaid by selling its stake in the company.
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Lehman
Brothers
Filed
for
come under stringent bank. Looking to purchase smaller commercial banks with huge deposits Morgan Stanley - Converted into bank. May be sold to Wachovia Corp
Investment banking-India
The economic liberalization in India has witnessed increased economic activities of foreign investors in India through investment banks. India has become one of the most preferred destinations for investors. As a matter of fact a large number of investment banks have opened shops in India to encash on the India Growth Story. Indian companies are now more research oriented than ever before. Investment Banks in India like Citigroup, Morgan Stanley, Merrill Lynch, and Deutsche Bank are selling the India story to their global clients. Investment Banks in India have posted over 50% a year returns from the equity markets in the last few years. Citigroup held the first India Investor Conference in the country, where large cap companies and many mid-cap companies made presentations to institutional investors. Deutsche Bank took their top investors to the facilities of blue-chip Indian companies. Over 150 top institutional investors of Citigroup from the US, Europe, the Asia-Pacific region, and Japan attended the conference. Merrill Lynch held investor conference, which was attended by over 150 FII clients from all over the world. The objective of these investor conferences is to help the client realize the happenings of the Indian financial market.
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Introduction to J. P. Morgan
Our aim is to be the worlds most trusted and respected financial services institution.
J.P. Morgan is a leader in financial services, offering innovative and intelligent solutions to clients in more than 100 countries with one of the most comprehensive global product platforms available. We have been helping our clients to do business and manage their wealth for more than 200 years and we keep their interests foremost in our minds at all times. This combination of product strength, intellectual capital and character sets us apart as an industry leader. J.P. Morgan is part of JPMorgan Chase & Co. (NYSE: JPM), a global financial services firm with assets of $2.0 trillion.
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J.P. Morgan is a leader in asset management, investment banking, private banking, treasury and securities services, and commercial banking. Today, the firm serves one of the largest client franchises in the world, including corporations, institutional investors, hedge funds, governments and affluent individuals in more than 100 countries. J.P. Morgan's core businesses include:
Asset Management Investment Bank Private Banking Securities Services Treasury Services Commercial Banking
Asset Management
Asset Management provides institutional, high-net-worth and individual investor clients with high quality global investment management in equities, fixed income, real assets, hedge funds, private equity and cash liquidity. By building a reputation for investment excellence and superior service, J.P. Morgan Asset Management has become one of the largest asset managers in the world. J.P. Morgan Asset Management is a leading asset manager for institutions, individuals and financial intermediaries, worldwide. Our investment professionals are located around the world providing strategies that span the full spectrum of asset classes including equity,
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Investment Banking
J.P. Morgan is committed to meeting the evolving investment banking needs of its clients and remaining in the forefront of market innovation. The firm provides clients with first-class merger and acquisition advice, debt and equity capital origination, restructuring capabilities, prime brokerage, risk management and research. It also participates in proprietary trading and investing and market-making in cash and derivative instruments around the world. As one of the world's premier investment banks, J.P. Morgan serves the needs of our clients by offering a world-class platform coupled with straightforward, intelligent advice. We attribute our longterm success to our commitment of always putting clients' interests first. Whether it's raising capital to meet growth objectives or identifying strategic business partners, J.P. Morgan offers M&A advisory, capital markets, prime brokerage, restructuring, risk and research platform of unrivaled strength and scale. We were founded more than 200 years ago and have a proud history of, in the words of one of our founders, doing "only first-class business... in a first-class way."
Private Banking
J.P. Morgan understands the complex challenges and opportunities that individuals and families of wealth face. In its advisory capacity, J.P. Morgan helps its clients to protect and grow their wealth across generations, creating the potential for them to achieve the vision they seek for themselves, their families, their businesses and their legacies. Clients benefit from a diverse range of expertise spanning investments, wealth structuring, trust and estate planning, credit, banking and risk management At J.P. Morgan, our mission is simple: first class business in a first class way. In everything we do, excellence and integrity are the guiding principles. Excellence means more than 160 years of experience and knowledge that comes from solving the complexities of significant
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Security Services
J.P. Morgan is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. J.P. Morgan leverages the firm's unparalleled scale, leading technology and deep industry expertise to service investments around the world. Worldwide Securities Services J.P. Morgan Worldwide Securities Services is a premier securities servicing provider that helps institutional investors, alternative asset managers, broker dealers and equity issuers optimize efficiency, mitigate risk and enhance revenue. Worldwide Securities Services leverages the firm's unparalleled scale, leading technology and deep industry expertise to service investments around the world. It has $13.7 trillion in assets under custody and $5.1 trillion in assets under administration.
Treasury Services
Treasury Services provides innovative payment, collection, liquidity and investment management, trade finance, commercial card and information solutions to the world's leading
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Commercial Banking
Commercial Banking provides the complete product offering of JPMorgan Chase, including lending, treasury services, investment banking and investment management to corporations, municipalities, financial institutions and not-for-profit entities with annual revenues generally ranging from $10 million to $2 billion. Commercial Banking serves more than 26,000 clients nationally, including corporations, municipalities, financial institutions and not-for-profit entities with annual revenue generally ranging from $10 million to $2 billion, and nearly 30,000 real estate investors and owners.
Commercial Banking offers its clients industry knowledge, experience, a dedicated service model, comprehensive solutions and local expertise. The firms broad platform positions us to deliver extensive product capabilities including lending, treasury services, investment banking and asset management to meet our clients U.S. and international financial needs.
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Culture
I should state that at all times the idea of doing only first class business, and that in a first class way, has been before our mind
J.P. Morgan, Jr. used these words at a Senate Sub-Committee hearing in May 1933. More than 70 years later, "first-class business in a firstclass way" continues to describe the way we work in over 50 countries around
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People
Along with our reputation, our people are most valuable asset
In an industry as dynamic, innovative and complex as financial services, we need the very best employees. We are deeply committed to cultivating an inclusive environment where everyone can succeed based on merit. We believe no barrier should inhibit an individual from performing to his or her full potential. We and our clients have experienced first-hand the benefits of being actively inclusive, operating as a meritocracy, and embracing diversity to harness the talent and experience of our best individuals. These, and other, aspects of our culture enable creativity and entrepreneurship to thrive. To help us identify individuals for positions in the firm, J.P. Morgan has relationships with university and graduate school programs located across the globe. New recruits can look forward to further leadership training
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Values
our values are reflected in the way that we conduct our business and in the first class results that we consistently achieve for our clients Our values are reflected in the way that we conduct our business and in the results that we consistently achieve for our clients. We believe that shareholders will benefit as we do the right thing for our clients and the communities we serve.
Character, Strength and Intelligence define our distinctive way of doing business. These values also make J.P. Morgan an outstanding place to start a career. When we asked our people why they joined and why they stay, these values came through in their reasons. In fact, the same six reasons came up again and again.
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J. P. Morgan in India
India is an important focus for J.P. Morgans expansion in the Asia Pacific region. The lines of business include the Investment Bank, Private Equity, Asset Management and Treasury and Securities Services. J.P. Morgan offers clients an integrated range of services that combine specialist local knowledge with leadership positions across these lines of business. Additionally, J.P. Morgan has a large Global Service Center in India that is rapidly expanding in scope and size. The service center has delivered process innovations that benefit our lines of business and support operations across the world. The firm's roots in India date back to 1930 when it started a representative office. From being a founding shareholder of ICICI in 1955, to establishing the first international investment bank in India in 1993, J.P. Morgan's commitment to India is well established. This is further illustrated by the work done by the firm in cooperation with the Ministry of Finance, Reserve Bank of India and various Ministries within the government of India.
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History
By the time you get to the end of this sentence, we'll have changed. As the markets constantly move, so do we. Our innovation and ability to stay ahead are what give our clients the edge to meet their strategic needs, today and tomorrow. Since our inception some 200 years ago, we've evolved to offer the whole spectrum of global banking and financial services - and in many cases helping to define them. It is the combination of character, product strength and intellectual capital that sets us apart as an industry leader. We invented the concept of relationship banking back in the nineteenth century and we are still doing first-class business in a first-class way. At J.P. Morgan, we have been helping our clients to do firstclass business for more than 200 years. Throughout that period, we have taken a long-term approach to client solutions - providing committed, innovative and consistent advice and execution to our clients at all times. We look forward to providing our clients with first-class service over the next 200 years
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Merger of J. P. Morgan
In July 2004, the merger of two powerful and globally renowned institutions, JPMorgan Chase & Co and Bank One, created one of the world's most dominant financial service corporations. And as the 2008 merger with Bear Stearns illustrates, J.P. Morgan continues to demonstrate market leadership. Firm-wide, we now have top-tier positions in both business-tobusiness (wholesale) and mass-market (retail) banking, alongside a more balanced earnings stream, greater scale and financial strength. Our retail businesses operate under the Chase brand. Within our wholesale businesses, it's the future of the Investment Bank, Asset Management and Treasury and Securities Services that we're shaping by hiring the very best graduates across the globe.
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Global locations
J.P. Morgan has clients in over 100 countries and offices in over 50 countries. Depending on your role, working here gives you the opportunity to have an international career. You may find yourself interacting with colleagues and clients from all over the world on a daily basis. To view J.P. Morgan's global locations, drag the map with your mouse and double-click to zoom, or use the guide to pan around the globe. Please note that not every location has programs for Analysts and Associates.
Employee Networks
J.P. Morgan has more than 70 Employee Networks, initiated by and for employees, in locations across the globe. These are groups of
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J. P. Morgan mission
At J.P. Morgan, we've been helping our clients do business for more than 200 years. From the start, we have contributed to business, society and world affairs - doing first-class business in a first class way. And this has everything to do with our people. Along with our reputation, our people are our most valuable asset. In an industry as dynamic, innovative and complex as financial services, we need the very best employees. Being a first-class firm also means doing 'good', not just doing well. J.P. Morgan has a proud tradition of being a good corporate citizen around the world. We dedicate significant financial and human capital to supporting issues and causes important to our business and our people.
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Aspire to be the best Execute superbly Build a great team and a winning culture This is what we strive for - no matter what business area or region - to
achieve world-class results. Our client-focused approach drives our innovative products and solutions, always maintaining that stamp of quality and integrity. Clear goals demand a transparent organization. And we are just that. We know a company is only as strong as its people, so you can expect to join a diverse team and an inclusive environment that operates with the highest standards of integrity. Talk to anyone at J.P. Morgan, and it won't be long before they mention the quality of the people around them and the willingness of colleagues to offer support and encouragement.
Products of J. P. Morgan
1.
Equities:
J.P. Morgan is a global leader in providing a wide range of innovative
equities solutions to investor and issuer clients from initial public offerings, secondary placements and equity-linked structures, to private placements, equity derivatives products, and block and portfolio trading services. We continually refine our product offerings to provide cutting-edge ideas, superior execution and state-of-the-art tools for today's changing markets. We offer institutional investors, corporates, distributors and affluent individuals the following products and services:
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electronic networks.
Program and special equity trading services. Transition management services across all asset classes. Sales, trading and research services on equity-based derivatives, as
pricing and complex structuring for new equity-linked issuances, innovative ways to increase conversion premiums for issuers, and sales and trading services for institutional clients.
Futures
and
options execution
and
clearing
services
on
2. Credit Markets: J.P. Morgan is a global leader in credit markets, which includes:
Structured Credit Collateralized Debt Obligations Tax-Exempt Capital Markets Prime Brokerage Transition Management
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Structured Credit:
J.P. Morgans Structured Credit team is the area with expertise
in credit derivatives, structured products and collateralized debt obligations globally. Structured credit products are used by clients to achieve many financial objectives, including yield enhancement, credit risk management, capital efficiency and benchmark outperformance.
CDOs: Collateralized Debt Obligations (CDOs) are structured fixed income securities with cash flows linked to the performance of debt instruments. Issuers of CDOs include commercial banks, insurance companies and money managers, who use the products to either gain regulatory capital relief and manage their credit exposure or lock in term funding and incremental fee income. CDOs are an emerging asset class offering value to investors and are rated by the major rating agencies accordingly.
origination for general governmental, transportation, energy, housing and corporate-backed client sectors.
National healthcare, higher education and cultural institutions Municipal Bond Sales, trading, syndicate and research Tax Exempt Derivatives
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Infrastructure Finance
3. Rate Markets:
J.P. Morgan is one of the global market leaders in fixed income providing market leading liquidity across fixed income securities and OTC derivatives. We provide our clients with a comprehensive range of products and solutions that are structured to meet their specific fixed income investment, risk management and financing requirements. Across the G10 currencies, from a government bond trade to the most complex structured interest rate note, clients are able to transact seamlessly across a full product suite including:
Sales & Marketing Electronic Trading Exotics and Hybrids Research Foreign Exchange Prime Brokerage The sales force is aligned against specific countries,
industries and clients, offering custom-tailored strategies adapted to each client's business imperatives, trading/hedging style, investment preferences and risk appetite. The design and implementation of tailored solutions extend beyond client-specific hedging issues and include bespoke advice on asset and liability management and investment. We are committed to being quick and responsive to client demand, with dynamic pricing and the ability to absorb significant risk across all regions globally.
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Electronic Trading:
J.P. Morgan has a fully integrated electronic client solutions group providing a range of products across the asset classes, including pretrade, trade and post-trade solutions to a broad client base. We deliver instant access to our liquidity and product expertise, giving our clients unparalleled access to our range of fixed income products. We offer proprietary risk management tools, enabling clients to measure, quantify and manage their financial exposure. J.P. Morgan provides access to the bank's liquidity in the fixed income space through the following electronic channels:
Trade Web Bloomberg Bond Vision Trading Screen J.P. Morgan led the ecommerce innovation in the Interest Rate Derivative OTC market via its strategic involvement in the Request for Quote (RFQ) trading protocol on the TradeWeb platform, where J.P. Morgan is the top ranked liquidity provider. We also offer an extensive suite of OTC products on our Bloomberg JPSX page with extensive pricing for OTC rates products.
structured, complex derivatives which span multiple asset classes. The group
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Research:
As part of J.P. Morgan's award winning global research group, our economic and derivative research delivers comprehensive and innovative research products to assist clients in their hedging, trading and investment decisions in Rates. The fixed-income strategy team supports the firm's clients in the fixed income securities, OTC derivative and futures and optionsmarkets. The team publishes weekly, monthly and quarterly analysis on all aspects of the fixed income markets. In addition, the team works closely with individual clients providing analysis to meet their specific needs.
MorganMarkets, the firm's research website, provides a single point allowing clients to access all of J.P. Morgan's analysis and commentary on a timely basis.
4. Foreign Exchange
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coverage - as well as all major emerging market currencies where we provide onshore and offshore capabilities.
dynamic and tailored solutions. Research J.P. Morgan's award winning global research group offers comprehensive foreign exchange, economic and derivative research and analysis to assist clients in their hedging, trading and investment decisions. The team publishes weekly, monthly and quarterly reports on all aspects of the foreign exchange
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5. Commodities
J.P. Morgans Global Commodities group is responsible for the sale of commodity financial products, as well as options and selected physical commodities, to institutional and corporate clients around the world. Products include Precious Metals, Base Metals, Agricultural Commodities and Energy. With extensive experience in creating risk management solutions, J.P. Morgan is able to meet the needs of both issuer and investor clients. J.P. Morgan is an active market maker in the traditional softs and agricultural sub-indices (GSAG, DJAIGSO) and their options. We market innovative structured baskets that revolve around the underlying products. Through our Futures and Options Desk, we have a strong presence in the various commodity exchanges: CBOT, NYBOT, NYMEX, Euronext.LIFFE, ICE, TGE, CME and TOCOM. With extensive experience in creating risk management solutions, J.P. Morgan is able to meet the needs of both issuer and investor clients. J.P. Morgan has demonstrated its innovative capabilities in:
Vendor Protection
Prime Services:
J.P. Morgan offers a comprehensive range of research, sales, execution, clearing and reporting services to clients globally. Given our demonstrated leadership and expertise, clients turn to us as a trusted partner to help them effectively run their businesses and support their clients. We are committed to delivering the extensive capabilities of the entire firm to clients across:
6. Emerging Markets
J.P. Morgan serves Emerging Markets clients across origination, derivatives, trading, foreign exchange and research. Our global approach to Emerging Markets provides maximum reach, while a local presence in each market ensures client accessibility. Our focus is on selective, strategic opportunities to participate in developing and fast-growing local markets in Brazil, Colombia, Russia, the Middle East, China and India. The Emerging Markets Research team analyzes sovereign and credit risk in Latin America, Central and Eastern Europe, Africa, the Middle East and Asia ex-Japan, and makes strategic recommendations for debt issued in both international and local capital markets.
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7. Securitized Products
The Securitized Product Group originates, underwrites / securitizes and trades Asset Backed Securities (ABS). These include:
Commercial Mortgage Backed Securities (CMBS) Real Estate Finance (REF) Asset Backed Commercial Paper Conduits (ABCP) Residential Mortgage Backed Securities (RMBS), including cash
8. Structured Products
J.P. Morgan is a leader in structured products across asset classes. Our expertise covers equities, fixed income, credit, currencies and commodities, funds and alternative investments. Structured products, also known as structured investments, can provide enhanced return and increased diversification for client portfolios, and are sold through distributors to high net
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Conclusion
At JPMorgan Chase, we believe that being profitable and doing good works for the people and the world around us aren't exclusive of each other; they're integrated goals. When our business is strong and well governed, we're in a better position to translate positive financial results into sustainable community and environmental efforts that benefit everyone. This is the essence
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Recent awards
Best Cash Management Specialist, Financial Institutions, The Asset, 2008 Best Cash Management Specialist, Liquidity Solution, The Asset, 2008 Best Bank for Liquidity Management in North America, Global Finance, 2008 Best Bank Award United States, Global Finance, 2008 Best Overall Bank for Payments and Collections in North America, Global Finance, 2008 J.P. Morgan Named One of "100 Great Supply Chain Partners" - Global
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CASE STUDIES
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January , 2008
Issue Size 260,000,000 Equity Shares of Rs.
10 each
Price Band Rs. 405 ~ Rs. 450
BOOK RUNNING LEAD MANAGERS (BRLM) / INVESTMENT BANKERS Kotak Mahindra Capital Company Limited UBS Securities India Private Limited ABN AMRO Securities (India) Private Limited Deutsche Equities India Private Limited, Enam Securities Private Limited, ICICI Securities Limited, JM Financial Consultants Private Limited and J P Morgan India Private Limited
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Macquarie India Advisory Services Private Limited and SBI Capital Markets Limited LEGAL ADVISORS Domestic Legal Counsel to the Company - Amarchand & Mangaldas & Suresh A. Shroff & Co. Domestic Legal Counsel to the Underwriters - J. Sagar Associates International Legal Counsel to the Underwriters - Cleary Gottlieb Steen & Hamilton LLP Syndicate Members/ Underwriters these are intermediaries registered with SEBI or as brokers with BSE/NSE who are eligible to act as underwriters. They are appointed by the BRLMs and CBRLMs Reliance Securities Ltd. Kotak Securities Ltd. ABN Amro Asia Equities (India) Limited JM Financial Services Private Limited Karvy Stock Broking Limited SBICAP Securities Limited
Credit Rating Agency CRISIL Limited IPO Grade 4/5 and ICRA
Limited IPO Grade - 4 Bankers to the Issue and Escrow Collection Banks
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Limited
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Investment Banking With Reference To J.P. Morgan Case study 2: Mergers & Acquisitions
Merger Bharti Vodafone Indias leading GSM players Bharti Airtel, Vodafone Essar and Idea Cellular announced the merger of their wireless infrastructure businesses in 16 circles to share 70,000 tower units and also form the worlds largest independent tower company called Indus Towers Ltd. Bharti and Vodafone will each have a 42% equity in this infrastructure firm, while Idea Cellular will hold the remaining 16%. The number of towers being merged into the new company is in proportion to the shareholding in the new company. The move will enable all three service providers to increase efficiencies and reduce expansion costs. The three companies will each merge their existing passive infrastructure assets in 16 telecom circles in India. Indus Towers will provide passive infrastructure services to all operators on a nondiscriminatory basis. Indus Towers will enable optimisation of future tower roll-out and enhanced operational efficiency leading to opex (operational expenses) and capex (capital expenditure) savings for its customers. The Indian consumer will benefit through improved network reach and quality, more choice and significantly greater access to mobile services across the country. Even amidst fierce competition, all service providers in India, the worlds fastest growing mobile market, are working towards large scale sharing of passive infrastructure to cut down on expansion costs and keep tariffs low even as they extend their footprint to rural India. Lower capex and opex are key to offsetting the low usage from new subscriber additions beyond the large towns and cities. India added over 8 million new wireless users in October, taking the countrys mobile subscriber base to over 217 million.
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Investment Banking With Reference To J.P. Morgan Case study 3: Beam Globals Successful Travel Card Program Sees Further Improvement With Corporate Card And Expense Management Integration Overview
Beam Global Spirits & Wine, Inc. is one of the world's largest premium spirits companies and the largest U.S.-based spirits company. Headquartered in Deerfield, Illinois, Beam Global's Shared Services and Treasury department manages the travel card program for four separate operations, including its U.S. corporate office, two production plants based in Ohio and Kentucky, and Future Brands LLC, its U.S. sales and distribution joint venture with the Absolut Spirits Company. More than 900 U.S. Beam Global employees travel within the U.S. and around the world.
Challenge
Even though Beam Global's travel card program had reached a successful 90 percent utilization rate significantly higher than the industry's average utilization rate of 70 percent -- the company sought to further improve program compliance and shift responsibility for expense reconciliation to their cardholders and managers, while streamlining and improving its expense reporting system. When Beam Global combined their existing J.P. Morgan Corporate Card program with an automated expense management solution from Concur, they defined the following goals:
expense reports
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existing J.P. Morgan Corporate Card program and upcoming SAP rollout
report processing
partners
Solution
Beam Global's shared services team was satisfied with the J.P. Morgan Corporate Card solution and decided to further optimize the card program by integrating it with Concur's on-demand expense management service to achieve even greater control and visibility. Through card program and expense management system integration, Beam Global could offer users a more efficient method of processing card expenses, gain complete transparency into transaction data, increase card spend, and take advantage of card float and volume incentives it had not been able to capture previously. Linking the J.P. Morgan Corporate Card program with Concur's expense management system has delivered success from both a user and backoffice perspective, owing to efficiencies it has delivered, said Mike Lippert, Senior Director, Shared Services and Treasury Operations, Beam Global. In
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Results
Beam Global has realized significant results through card integration with their expense management solution. It has enabled the company to:
associated late fees and time spent reconciling past due charges
to the automated upload of data files between J.P. Morgan and Concur
analysis reports
satisfy travelers with an efficient, easy-to-use system With detailed reporting from Concur and J.P. Morgan, Beam
Global is able to assess spend data by vendor, category, and division in order to identify questionable charges and audit for compliance. Concur's expense reporting service makes it virtually impossible to hide transactions as it
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