What is investment banking business

The core business of investment banking is broadly categorized into three types: traditional, innovative and derivative. Traditional business includes securities underwriting, brokerage and proprietary trading, which is the most fundamental and basic business of investment banking, and also the business that has brought the industry the most lucrative profits since the emergence of investment banking. Innovative business is the development of the 1960s and 1970s, such as corporate mergers and acquisitions, restructuring and other fee-based advisory business, as well as securitization business; derived business refers to the emergence of asset management in the last 20 years and the new derivatives transactions, including swaps, covenant repudiation and other products.

With the continuous development and integration of international financial markets, the business of investment banks has gradually developed in the direction of diversification and specialization, resulting in the emergence of the so-called "financial department stores", which enable investors to meet almost any financial needs. Due to their development history and the breadth and depth of their business, investment banks have adjusted their core business structure in accordance with different historical periods in order to gain a foothold in the market. From the industry as a whole, the traditional underwriting, brokerage and other business as the core of the business composition is gradually changing, the new business to the industry to bring profits in the overall profit structure occupies an increasing proportion, and the rise of online securities trading and asset management business is a profound change in the existing trading model and market structure.