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are investment banks needed at all?
Poast new message in this thread
Date: October 27th, 2018 9:13 PM Author: soul-stirring party of the first part Not a financemo but They just seem like a nonessential middleman “advising” and collecting “fees” to me (kinda like some other profession I know). (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37108845) |
Date: October 27th, 2018 9:20 PM Author: effete dog poop who else would underwrite capital offerings? sounds like your not just "not a financemo" but also perhaps a retard. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37108880) |
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Date: October 31st, 2018 10:11 AM Author: soul-stirring party of the first part I'm not buying it. And show a little fucking respect, maybe if you poast better I'll let you have a moniker (seriously, why the fuck dont you have a moniker?). Anyways, "underwrite capital offerings" I mean come on man. do we really need a million bankers soaking up insane amounts of rent to "underwrite capital offerings" fuck man,do you really believe this? Could we maybe get by just fine with say 10% of this entire industry?
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Date: October 31st, 2018 10:14 AM Author: razzmatazz low-t kitchen weed whacker (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131351) |
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Date: October 31st, 2018 10:21 AM Author: charismatic indecent elastic band spot (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131392) |
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Date: October 31st, 2018 10:24 AM Author: well-lubricated deranged blood rage institution (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131410) |
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Date: November 1st, 2018 12:26 AM Author: vibrant angry hospital We need to save naive grandmother-type F500 execs from getting exploited by hand-rubbing chad i-bankers in an openly competitive marketplace? I'm not seeing the problem with their services besides people believe they make too much money and don't really understand how or why so they assume they need to be shut down. If someone can come up with an alternative service that is cheaper and same or superior quality they will instantly win the marketplace. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136306) |
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Date: October 31st, 2018 11:03 AM Author: lemon box office generalized bond Why do they need underwriters? There's this trustless thing called blockchain and smart contracts Ethereum's biggest potential use case is open finance, it's happening |
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Date: October 31st, 2018 1:44 PM Author: lemon box office generalized bond (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37132556) |
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Date: November 1st, 2018 12:17 AM Author: exciting friendly grandma What exactly do you think underwriters do and how would that be replaced by blockchain? (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136263) |
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Date: November 1st, 2018 12:20 AM Author: Abusive public bath halford cr. my thoughts exactly (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136280) |
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Date: November 1st, 2018 11:13 AM Author: Flatulent den LOL (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138241) |
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Date: November 1st, 2018 1:02 PM Author: lemon box office generalized bond Good, this way you'll never see it coming (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138822) |
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Date: November 1st, 2018 1:03 PM Author: twisted pontificating jap When moon. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138830) |
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Date: October 27th, 2018 9:23 PM Author: vibrant angry hospital In most ways investment banks behave just like car dealerships or auction houses or realtors... they connect buyers and sellers of expensive assets and take a not-insubstantial chunk out of the transaction. People have suspected for a long time that there should be a way around these middlemen, but we haven't found it yet. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37108901) |
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Date: October 31st, 2018 10:17 AM Author: Orange racy newt Best layman description in this thread. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131369) |
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Date: October 31st, 2018 10:22 AM Author: charismatic indecent elastic band spot (literally LTM) (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131397) |
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Date: November 1st, 2018 12:19 AM Author: Soggy space therapy theyre called gas chambers (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136273) |
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Date: November 1st, 2018 12:19 AM Author: stirring coldplay fan theatre (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136278) |
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Date: October 27th, 2018 9:24 PM Author: Gold stag film chad for vanilla M&A or bond/equity deals, investment banks' 'value add' is usually just providing cheap loans in the past (bulge brackets like citi, baml, etc.) that they leverage to run these sort of deals for the fees
elite boutique banks OTOH actually provide more valuable advice for corporate takeovers and such that birdbrained Chad CEOs cant figure out on their own |
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Date: October 31st, 2018 10:12 AM Author: soul-stirring party of the first part this makes sense. so how much could we shave off of the entire finance industry and still keep the same amount of professional expertise? (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131338) |
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Date: October 31st, 2018 10:48 AM Author: Gold stag film chad most of it. a lot of F500s (esp. F10s, etc.) now have their own in house corporate development teams (former bankers) to run most of the valuation analysis that banks provide. they usually get a bank and let them provide their 'advisory analysis' just to access their capital markets services to underwrite new debt/equity they need to buy X company or whatever (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131532) |
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Date: October 31st, 2018 12:28 PM Author: concupiscible trailer park juggernaut *jjc detector goes off* (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37132079) |
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Date: October 31st, 2018 10:12 AM Author: dark motley home sneaky criminal (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131336) |
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Date: October 31st, 2018 11:01 AM Author: mind-boggling field incel there's a nice legal framework built up that mandates their existence because pre-FDR companies were going buckwild selling all sorts of fraud securities to people. but yes as with most fields there is an incredible amount of waste, fraud, and abuse. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131612) |
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Date: October 31st, 2018 12:03 PM Author: dark motley home sneaky criminal (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37131941) |
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Date: October 31st, 2018 12:25 PM Author: Odious parlor persian They have a lock-down on the M&A advisory and syndication racket. So yes, they are needed.
Joe Blow from XYZ Inc. in Kansas isn't going to have access to investors, let alone undertake an offering of securities anywhere in compliance with all the different offering restrictions. They have to go through a broker.
M&A it's all about the brokering of deals, and again, bankers use their network to make this work and do valuation. It makes life a lot easier for corporates, but costs a ton in fees. |
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Date: October 31st, 2018 12:27 PM Author: Indigo flickering heaven nowag astonishingly AZN poast (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37132076) |
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Date: October 31st, 2018 12:50 PM Author: Odious parlor persian Lol OK.
I guess we all live in a world where GCs of F500s are stupid dumbasses who enjoy paying out of their asses for pointless inconsequential "service providers" like bankers when they could just do it "in house" at a fraction of the cost.
These corps are paying for IB because they are busy doing shit like making cars or selling GC shit to wagecucks like you, and don't have the time or capability to market to pension funds located halfway around the world who may not even speak English or find a buyer for their shit subsidiary located in OshKosh Oklahoma. It's just the way it is.
The alternative is to hire a whole lot more people which will end up being more expensive in the long run and create a bunch of headaches because you have to do BS training and logistics for these new drones you just hired and pay for their healthcare and shit. Bankers you just use and dump once they've done their job. |
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Date: October 31st, 2018 1:11 PM Author: concupiscible trailer park juggernaut rook. risten... (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37132338) |
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Date: October 31st, 2018 1:33 PM Author: charismatic indecent elastic band spot Hm extremely Asian poast again (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37132463) |
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Date: November 1st, 2018 12:15 AM Author: Odious parlor persian Xoxo 2018: Having to explain basic shit like specialization of labor to literal retards. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136251) |
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Date: November 1st, 2018 12:20 AM Author: exciting friendly grandma (Guy who still doesn’t get why his poast is so asian) (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136282) |
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Date: November 1st, 2018 11:00 AM Author: Odious parlor persian xoxo 2018: "yer poast sounds asian" is the default insult (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138141) |
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Date: November 1st, 2018 12:20 AM Author: Soggy space therapy sup NYUUG.
friendly reminder to the board that i am talking to myself right now |
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Date: November 20th, 2018 2:57 AM Author: awkward roommate it's true that corps need to hire outside experts bc it's not economical to have the necessary expertise in-house. it's also true that no corp is going to operate its own bond desks. lol at ford or caesar's or something directly selling securities to investors.
otoh IBs are no smarter than anyone else when out of their wheelhouse -- look at how bad they fucked up on CDO valuation and trading, causing ITE. it's reasonable to ask why IBs have such wild comp and fees; presumably you can run an advanced economy without paying howie hubler $25m to lose $9b. |
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Date: November 1st, 2018 6:36 PM Author: Underhanded Exhilarant Background Story Library What's to stop this company from growing cash reserves through private investment until cash flow positive, then doing a Spotify type direct listing to access the capital markets? (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37140906) |
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Date: November 2nd, 2018 12:04 AM Author: Odious parlor persian Private investment = issuing some form of equity or debt = securitie = pwnd.
Issuers can't directly access capital markets without an intermediary, unless they want to be directly subject to all sorts of crazy regulations and lawsuits. |
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Date: November 1st, 2018 12:18 AM Author: stirring coldplay fan theatre Pretty sure they all belong in gas chambers. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136269) |
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Date: November 1st, 2018 12:27 AM Author: adulterous hall national security agency for like 0.002% of shit (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136314) |
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Date: November 1st, 2018 12:28 AM Author: snowy idiotic stock car university Just have Jan from human resources structure the new secured airplane leasing offering and draft all the required disclosure documents. She's sharp - I'm sure she'll figure it out if we all pitch in and get her a Dunkin gift card! (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37136317) |
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Date: November 1st, 2018 11:13 AM Author: Odious parlor persian Most of the people who post on xoxo these days either never went to law school or went to some TTT and never worked biglaw so we have retarded threads like this.
"bbbbut it's just copy and paste!" said the pea brain. |
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Date: November 1st, 2018 1:03 PM Author: lemon box office generalized bond (guy desperate to make everyone believe that artificial convolution makes him essential) (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138832) |
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Date: November 1st, 2018 1:03 PM Author: stirring coldplay fan theatre (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138834) |
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Date: November 2nd, 2018 12:05 AM Author: Odious parlor persian Go back to Tulane, you're done here. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37142726) |
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Date: November 1st, 2018 1:10 PM Author: free-loading cruise ship (Xiuxiong "Frank" Chen) (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138862) |
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Date: November 2nd, 2018 12:05 AM Author: Odious parlor persian (Tulane grad working in a solo practice yet poasting on xoxo) (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37142731) |
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Date: November 2nd, 2018 2:54 PM Author: dark motley home sneaky criminal (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37145677) |
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Date: November 1st, 2018 1:17 PM Author: Sticky lay roast beef I agree with this take.
It's true that it's not rocket science, but the "basic" shit that good bankers can do they can do so fucking fast it will make your head spin.
I suspect the reason many "scholarly" types don't get this is because they don't understand the significant portion of the world that is run by "numbers" people. |
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Date: November 1st, 2018 1:08 PM Author: Sticky lay roast beef For as long as investors have more money than they have ideas on how to spend it, there will be men to sell them those ideas. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37138858) |
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Date: November 20th, 2018 3:00 AM Author: awkward roommate one of the first deals i ever worked on involved selling the residual on an auto ABS deal to PE investors, HFs and a teacher's union in a poor southern state. that's when i learned that some ppl need to make a return, aren't very sophisticated, and will invest in assets they don't understand, not once, but every day for their entire careers. it's a fucked up world. (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37268544) |
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Date: November 20th, 2018 3:01 AM Author: Hairless Lascivious Dilemma Nibblets (http://www.autoadmit.com/thread.php?thread_id=4116955&forum_id=2#37268547) |