markis capital seminars: introduction to investment banking
TRANSCRIPT
2013 瑪亞學院 系列講座
Introduction to Investment Banking
解密投資銀行
蔡鴻德執行長 瑪亞投資有限公司 Markis Capital Limited
What is Investment Banking? 2
Giving Advice Raising Capital
台灣有哪些外資投行? 你認識幾家?
台灣金控體系 – ex. Fubon FHC 4
Source: Fubon FHC IR Presentation
台灣金控體系 – ex. Fubon Securities 5
Source: Fubon FHC IR Presentation
Financial Services Landscape 6
Commercial Bank
Custody
Lending
Operations
Asset Management (Buy-Side)
Investment Team
Operations
Investment Bank (Sell-Side)
Global Research
Sales & Trading
(Markets)
Investment Banking
Operations
Merchant Banking
Private Equity
Venture Capital
Insurance
Investment Team
Distribution
Front, Middle, Back Office 7
Front Office
• Investment Banking
• Markets
• Sales & Trading
• Research
• Private Wealth Management
Middle Office
• Risk Management
• Compliance
• Operational Risk analysis
Back Office
• Operations
• Technology
• HR / Training
• Finance / Treasury / Audit
常見的前台工作機會
Equity Research Research Analyst, Research Associate/Assistant
Sales & Trading Research sales, sales trader, dealer, dealer assistant
Corporate access, desk analyst
IBD: Corporate Finance, Advisory
PWM: Private Wealth Management
The "Culture" of I-Banking 9
Bonus-oriented culture – "Total Comp" basis
Prestige – Front office vs. back office, star analysts
Challenge – "only the top candidates", long hours, BSD,
"work hard, play hard"
Fame – "advisor" to major companies, front page
transactions, In-the-know, on the inside.
"Benefits" – global travel, overtime meals, overtime taxi,
training & development, etc.
The Chinese Wall 10
•Individuals
•Pension Funds
•Insurance Companies
•Asset Managers
•Corporate Treasuries
•Sovereign Wealth Funds
•Corporations
•Governments
•Municipalities
Providers of Capital
Investment Banking
Chinese Wall
Sales & Trading
Research
Users of capital
Public side Private side
Strategic advisory
Securities underwriting
Corporate Finance 11
Basic Structure 12
Investment Bank (Sell-Side)
Global Research
Economics & Investment
Strategy
Fixed Income Research
Equity Research
Quantitative Research
Sales & Trading (Markets)
Equities
Fixed Income
Commodities
FX
Investment Banking
Capital markets
Advisory
Operations
IT
Compliance
HR
Legal
Overview of Investment Banking 13
Capital Markets
o Equity capital-raising o Initial public offerings (IPOs) o Follow-on offerings o Equity-linked (convertible)
o Debt capital-raising o High-grade or investment grade o High-yield o Syndicated loans o Tax-exempt
o Mergers & Acquisitions o Buyside o Sellside o Spin-offs / Splitoffs / Carve-outs o Hostile defense o Hostile takeovers / proxy fights o Joint Ventures
o Restructuring
Capital Markets Advisory
Underwriting Process 14
Source: Financial Markets + Institutions (2006)
Corporate Finance Activities
Value Company (Financial Models)
Write Selling Memo
Conduct Due Diligence
Identify and Contact Buyers
Create Management Presentation
Negotiate with Buyers
Close Transaction
Value Company (financial
models)
Conduct Due Diligence
Draft terms and determine price
offered
Negotiate with Seller
15
Represent Companies for Sale Represent Companies Buying Other Companies
Advisory Services on M&A, Foreign Exchange, Valuation, Financial
Strategy, Issuing Debt and Equity, etc.
Industry or Product Groups
Consumer Products & Retail
Energy and Power
Financial Institutions
Healthcare
Global Industrial Group
Real Estate
Technology/Media/Telecom
Transportation & Services
Debt Capital Markets Group
Equity Capital Markets Group
Equity Corporate Finance Team
Financial Sponsors
Leveraged Finance
Global Syndicated Finance
Mergers & Acquisitions
Private Equity Placement Group
16
Industry Groups Product Groups
Investment Banking – Corporate Titles 17
Managing Director
Analyst
Executive Director
Director
Associate Director/Associate
What Does An Investment Banker Do? 18
Financial Analysis
Communication
o Management, Board of Directors
o Internal Committees
Identify Potential Investors
Negotiation / Structuring Transactions
Due Diligence
Documentation
Client Relationship Management o Ongoing dialogue on financial
markets, industry developments, new products
o Long-term relationship as advisor to Senior Management and Boards
Idea Generation and Problem
Solving
o Strategic Alternatives
o Capital Raising
o Optimizing Capital Structure
o Risk Management, Dividend Policy
Assessment Of Opportunities
Origination Execution
Banking Skill Sets 19
Financial Modeling – Intricate (LBOs, structuring) to simple (comps)
Writing/Presentations – Selling memos, management
presentations, commitment memos, Roadshows,
Prospectus (or other filings)
Research – Gathering data, understanding legal aspects,
capital markets process & procedures
Communication & "Rain-making" – bringing in business, acts
as the relationship manager and client expert.
20
Sales & Trading / Markets 21
Basic Structure 22
Investment Bank (Sell-Side)
Global Research
Economics & Investment
Strategy
Fixed Income Research
Equity Research
Quantitative Research
Sales & Trading (Markets)
Equities
Fixed Income
Commodities
FX
Investment Banking
Capital markets
Advisory
Operations
IT
Compliance
HR
Legal
外資 Sales & Trading 在台灣 架構
Foreign Institutional
Investors (FINI)
Custodian Broker
23
本國 vs. 外資券商的經營模式
Client Type
Business Scope
Product Range
Risk Control
Culture
Research Scope
Perspective
Global Resources
Internal Control
Access to FINI
本國 vs.外資券商 外資券商優勢
Securities Firm – Market Share 25
證券商 百分比 證券商 百分比
Aug-13 % Aug-13 %
1 元大寶來 13.184 26 臺銀 1.102
2 凱基 8.573 27 東方匯理 0.951
3 永豐金 5.208 28 宏遠 0.877
4 富邦 5.205 29 中國信託 0.818
5 群益 4.960 30 香港商野村 0.739
6 元富 3.583 31 大眾 0.735
7 瑞士信貸 3.413 32 合庫 0.631
8 日盛 3.385 33 大慶 0.582
9 台灣摩根士丹利 3.275 34 香港上海匯豐 0.508
10 統一 3.117 35 法銀巴黎 0.492
11 兆豐 3.039 36 大昌 0.450
12 華南永昌 2.725 37 台灣工銀 0.449
13 瑞銀 2.279 38 港商法國興業 0.443
14 國票 2.070 39 亞東 0.406
15 美林 1.851 40 台灣企銀 0.387
16 港商德意志 1.802 41 土銀 0.320
17 高盛亞洲 1.780 42 大和國泰 0.313
18 第一金 1.631 43 台灣巴克萊資本 0.306
19 玉山 1.475 44 致和 0.298
20 摩根大通 1.341 45 鑫豐 0.277
21 國泰 1.335 46 台新 0.258
22 康和 1.271 47 渣打商銀 0.246
23 新光 1.173 48 德信 0.225
24 港商麥格理 1.165 49 永興 0.184
25 花旗環球 1.162 50 高橋 0.182
直接金融:前台架構
證券公司 資產管理公司
Head of Equity/FX/Fixed Income
研究部 業務部
Head of Research Head of Sales
交易室 投資研究部
Chief Investment Officer
Analysts
Sales
Sales Traders
Dealers
Fund Manager
Sales Traders
Dealers
Analysts
開單 開單 建議股票
26
Tools of a Trader (I'm kidding) 27
Example: Commodities Org Chart
Investor
Corporate
Light structuring
Product design
Complex structuring
Commodities
Trading Structuring Sales
Proprietary Trading
Market making
Desk analysts
Research Origination
Physical deals
Private
transactions
Fundamental
analysis
Price forecasts
Product design
Mid office
Back office
Credit
Legal
Compliance
Others
Hedge Funds
Institutional Clients
Retail clients
Cash
Derivatives
Equity
Fixed Income
Credit
IBK Investor
Sales DCM, ECM
M&A
Strategic
investments
Strategic
divestments
Corporate
Sales Flow
Hedging
Budget Hedging
Prime
Brokerage
Futures and
Options
…
Others
Origination
Financing
Public
Sector
直接金融: Sell Side
證券公司
Head of Equity/FX/Fixed Income
研究部 業務部
Head of Research Head of Sales
Analysts
Sales
Sales Traders
Dealers
分析師:分析產業趨勢及公司營運狀況,提供投資建議給Buy Side分析師
業務員:提供基金經理人整個市場的看法
交易業務員:視消息面、籌碼面、技術面變化提供短線操作建議給Buy Side的Sales
Traders
交易員:收到來自Buy Side的下單,判斷股價走勢,以低買高賣為原則,分次丟單
29
直接金融: Buy Side
資產管理公司
交易室 投資研究部
Chief Investment Officer
Fund Manager
Sales Traders
Dealers
Analysts
分析師:分析產業及公司基本面,與Sell Side分析師交換意見,出具報告,提供買賣建議給基金經理人
基金經理人:基金操盤人,接受建議與報告後開單到交易室作進出
短線交易業務員:追蹤消息面、籌碼面、技術面變化,下單到交易室作進出
交易員:判斷大盤走勢,決定何時下單
30
投信/各類 基金經理人 31
32
Breadth of Hedge Fund Investment
Strategies 33
Equity Hedge
30.02%
Equity Market Neutral
2.23%
Equity Non-Hedge
4.51%
Emerging Markets (Total)
4.03%
Distressed Securities
4.70%
Convertible Arbitrage
3.32%
Event-Driven
13.77%
FI: Arbitrage 2.57%
FI: Diversified 1.78%
FI: High Yield 0.79%
FI: MBS 2.63%
FI: Convertible Bonds
0.08%
Macro 10.68%
Merger Arbitrage 1.40%
Market Timing 0.37%
Regulation D 0.24%
Sector (Total)
4.77%
Short Selling
0.30%
Relative Value Arbitrage
11.80%
Equity Research 34
Basic Structure 35
Investment Bank (Sell-Side)
Global Research
Economics & Investment
Strategy
Fixed Income Research
Equity Research
Quantitative Research
Sales & Trading (Markets)
Equities
Fixed Income
Commodities
FX
Investment Banking
Capital markets
Advisory
Operations
IT
Compliance
HR
Legal
影響股票價值之因素
企業價值
市場現
況
投資人對公司的看法
個股新
聞
營收,利潤,
未來發展
現金流
量
每股資
產淨值
36
公司
投資分析師 投資人
The Role of Research 37
提高透明度,增加資訊之提供
Sell-side 分析報告多,增加預測正確性
股票流動性↑使公司股價上升,籌資成本降低。
外資研究報告的迷思
外資研究報告 ≠ 買賣超
外資研究報告 ≠ 預見未來
外資研究報告 ≠ 實際操作
媒體及社會大眾 ≠ 客戶
目標價 = 預測值
外資研究報告 = 參考資料
外資研究部 = 研究合規 (Reg AC, Reg FD, etc.)
38
39
Equity Research Methodology 40
1. Review Public Information
2. Conversations w/ company management for detailed
information
3. Prepare 3-yr Prelim Earnings Model
4. Review Financial Assumptions
5. Assessment
6. Finalize Earnings Model
Minimum initiation requirements 41
Company description
5-year P&L, cash flow, balance sheet (2-3 years forecast)
Most recent results, commentary
Risks
Rating, price target
Compliance – analyst certification (Reg AC), editorial,
compliance review, restricted list
Report Submission Process 42
1. Submit initiation form
2. Upload model
3. Draft report
4. Research Recommendation Committee (RRC)
5. Editorial
6. Compliance
Valuation Considerations
10-15 year projection, PV versus
current
Asset-Based Valuations
P/E, P/B, EV/EBITDA, Efficiency,
Margins
ratios vs. peers
company value (multiples history)
High/low in cycle
current P/E justification
Valuation vs. TAIEX
P/E, P/BV, Div Yield, FCF Yield,
EV/EBITDA, EV/Sales
private market values for firms
individual units
break divisions as standalone
entities (sum of the parts)
calculate relative value for each
division
Arrive at blended valuation
Risk Assessment
TP over 12 months
Risk Ranking
43
Industry Analysis 44
1. Define Scope of Industry
2. Identify Key Players
3. Determine Size Metric to Use (Revenues, Market Cap, Net Income, Capacity, etc.)
4. Collect Annual Historical Data for Key Players
5. Forecast Growth for key players
6. Forecast TAM (Determine concentration ratio of key players)
7. Calculate CAGR
8. Check reasonableness of assumptions
具備條件 45
英文聽說讀寫的重要性
具備基本金融財務分析知識
抗壓性強、積極、認真負責、謹慎細心
主動具企圖心 – 維持自己的好奇心
人際關係及溝通技巧 -訓練自己的表達能力
Operations / Talent Development 46
47
Competency Model 48
Strategic Thinking
• Business Knowledge
• Innovation and Creative Thinking
Business Results
• Execution
• Analytical Ability
People Leadership
• Talent Building
• Team Leadership
• Collaboration
Personal Effectiveness
• Communication
• Energy & Drive
• Decisiveness
• Character
分析師成長的經歷 49
Research Assistant
• 收集資訊
• 資料整理
Research Associate
• 基本面分析
• 財務模型
• 市場意識
• 企業質詢
Research Analyst
• 撰寫報告
• 推薦想法
• 行業知識
• 營業員盤問
• 建立企業關係
Star Analyst
• 投資策略
• 路演活動
• 客戶關係
• 媒體關係
• 團隊培訓和指導
Training Curriculum Topics 50
New Hire Orientation - Company's Value, Principles & Leadership, brand and history,
core businesses, global/regional structure
Managing Your Time
Developing your Personal Communication Style
Collaborative Negotiations
Performance Management
Mechanics of Business Writing / Presentation Skills
7 Habits of Highly Effective People (Steven Covey)
Financial Environment
Financial Skills – Intro to Corporate Finance, Market Data and Economics, Financial
Analysis, Operational Risk, etc.
Product Knowledge – Derivatives, FI, Equities, Capital Markets, Valuation, etc.
Desktop Applications – Word, Excel, PowerPoint,
Research Applications - research website, analytics, report/model upload platform
Interesting Reading 51
Liar's Poker (1990) Michael Lewis
Monkey Business: Swinging Through the Wall Street Jungle (2001) John Rolfe and Peter Troob
The Predators' Ball: The Inside Story of Drexel Burnham and the Rise of the Junk Bond Raiders (1988) Connie Bruck
Den of Thieves (1992) James B. Stewart
The House of Morgan: An American Banking Dynasty and the Rise of Modern Finance (1990 & republished 2010) Ron Chernow
Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts (2010) James J. Valentine
改變的勇氣:楊應超的首席人生 (2013)
投機到投資谷月涵股市基本分析 (2003)
Periodicals: Institutional Investors, Asia Money, FinanceAsia, Bloomberg Markets, Bloomberg Businessweek, The Economist, Forbes, Fortune, Harvard Business Review,
Movies 52
Trading Places (1983) - Comedy
Wall Street (1987)
Barbarians at the Gate (1993)
Boiler Room (2000)
Capitalism: A Love Story (2009) – documentary
Inside Job (2010) - documentary
Wall Street: Money Never Sleeps (2010)
Margin Call (2011)
Too Big to Fail (2011)
Arbitrage (2012)
Online Resources 53
http://www.opalesque.com/ - About Hedge Funds
http://www.wallstreetoasis.com/ - Wall street forum
http://www.mergersandinquisitions.com/ - another blog
http://www.efinancialcareers.hk/ - Job Website
http://chandoo.org/wp/ - Excel modeling tips
http://www.careers-in-finance.com/ - Career website
http://www.cfasociety.org/taiwan/Pages/default.aspx - CFA
蔡鴻德 (Teddy H. Tsai) 董事暨執行長 (Director & CEO)
801 高雄市前金區大同二路20號9樓之2
電話: +886-7-241-2329 分機 123 手機: 0910723698
電子郵件: [email protected] 網站: http://www.markis.tw
Q&A
54