Chris Holden

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The Concept Of Investment Banking and James Dondero’s Contribution

by Chris Holden - October 25th, 2015.
Filed under: Financial Management.

Investment banking is a form of business that began many years ago as a form of partnership that dealt with second market offerings, underwriting security, mergers, brokerage, and acquisitions. Presently, it has grown into an entire service industry that entails proprietary trading, securities research, and investment administration. This in turn gave birth to the investment banks that are financial entities that are working towards raising corporations, governments and individuals in raising finances or capital through processes like issuance of securities and underwriting.

Investment banking presently involves FICCB services, derivatives, mergers and acquisitions and the trading of equity securities. Investment banks do not deal with receiving of deposits – it is left to the commercial or retail banking institutions. As a substitute, investment banks deal with promoting and trading securities for other securities or for money and provide advice to organizations involved with the buying of investment services. Some of the organizations include private equity funds, hedge funds, mutual funds, unit trust and insurance organizations.

Most Of the investments banking institutions are divided into two groups on functionalities – providing of private and public functions while using an information barrier to making a distinction between the two. The private sector of investment banking deals with the private and inside information that cannot be seen or heard of by the public. The public side of investment banking entails stock analysis and other forms of services and information that the general public can access.

In the United States, these advisers on investment banking must have been licensed beforehand so that they start their operation. They should also be subjected to the regulations engraved in the Financial Industry Regulatory Authority and/or the Securities and Exchange Commission.

One of the well-known and expert advisors in this area of investment banking is a man called James Dondero. He James Dondero is the co-founder and president at Highland Capital. For over three decades, this graduate of the University of Virginia, having gotten a degree in Science majoring in accounting and finance, Mr. James Dondero, has been specializing and working in credit markets. He is not just a certified managerial accountant, but also finished a training program given by JP Morgan. Between 1985 and 1989, Dondero worked together with the American Express and was at the forefront in managing fixed income funds that summed to $1 billion in assets.

James Dondero is presently on the board of Directors for the corporation called American Banknote and also Metro-Goldwyn-Meyer. He is also the chairperson of cornerstone healthcare group, NexBank, and CCS Medical. James has a very expansive knowledge, and skills in mortgage-backed securities, investment grade corporate, emerging market debts, derivatives, common and preferred stocks as well as leveraged bank loans.

James Dondero has rightfully owned the title of Chartered Fiancial Analyst due to his proficiency and acquired skills in the field of investment banking. Qualified advisors in this area of investment banking aid both small and large organizations and also the government at times with advice on investments techniques.

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