Bank Management

Investment Banking

Integrated course, 3.00 ECTS

 

Course content

This course gives an overview of investment banking (IB) and explains the distinction between IB and classical corporate finance. Particular attention is given to M&A, corporate/acquisition finance and international capital markets.

The core contents of this course include:
[1] Overview of investment banking;
[2] M&A: motivation, mergers, friendly takeovers, hostile takeovers, poison pills, takeover codes, corporate control (link to "Corporate Governance" module), typical M&A process, acquisition finance;
[3] Financing through international capital markets: equity capital markets (IPO/SPO), debt capital markets (loan vs. bond, financial ratings), underwriting vs. book building, convertibles, hybrids, capital market investors.
Optional contents can include:
[4] Financial markets; principal investing, market making, client/principal trading.

This course may be taught in English.

Learning outcomes

Graduates of the course have an overview of the fields of the activities of an investment bank. They understand the motivation behind M&A, the basics of a typical M&A process, the role of the investment bank in this process and the possibilities of transaction financing via the capital market.
Graduates have an understanding of the characteristics of equity and debt instruments including the position of the investor in the event of a transaction. The role of the investment bank in issuing instruments in the equity and debt capital markets is clear to graduates.

Recommended or required reading and other learning resources / tools

References: Böttcher/Blattner (2013): Projektfinanzierung: Risikomanagement und Finanzierung, Oldenburg. Brost et al (2012): Corporate Banking: Zukunftsorientierte Strategien im Firmenkundengeschäft, Frankfurt School V. Hockmann/Thießen (2012): Investmentbanking, Schäffer-Poeschel. Schmoll (2006): Vertriebsstrategien im Firmenkundengeschäft, Gabler.
Academic journals: Die Bank.

Mode of delivery

3 ECTS: ILV

Prerequisites and co-requisites

Modules 1;3

Assessment methods and criteria

ILV: final exam, assessment of active course participation