The following will be discussed in this chapter: Investment banking services; microfinance investment vehicles; understanding clients, the market, and the opportunities; the bop market up close (and personal); four critical challenges in the bop market;. | Revision 1 Investment Banking Services This Lecture takes us on a quick tour of the players. Investment bankers deepen the market not only by placing securities but also by helping investors and MFIs understand each other. If they are to reach investors, MFIs need the expertise provided by advisors, as well as the legitimacy that partnering with mainstream players provides. Investment Banking Services As for the advisors, Investment Dealers Digest puts it bluntly: “As history shows, any time a new asset class emerges, Wall Street stands to profit handsomely from underwriting new securities and selling them to brokerage clients.” Investment Banking Services The motivation behind the move into microfinance by investment banks is complex, and not purely profit-driven. Asad Mahmood of Deutsche Bank, one of the bankers who has been at this longest, insists that microfinance would not receive such corporate commitment if not for the social mission. Investment Banking Services The scale of . | Revision 1 Investment Banking Services This Lecture takes us on a quick tour of the players. Investment bankers deepen the market not only by placing securities but also by helping investors and MFIs understand each other. If they are to reach investors, MFIs need the expertise provided by advisors, as well as the legitimacy that partnering with mainstream players provides. Investment Banking Services As for the advisors, Investment Dealers Digest puts it bluntly: “As history shows, any time a new asset class emerges, Wall Street stands to profit handsomely from underwriting new securities and selling them to brokerage clients.” Investment Banking Services The motivation behind the move into microfinance by investment banks is complex, and not purely profit-driven. Asad Mahmood of Deutsche Bank, one of the bankers who has been at this longest, insists that microfinance would not receive such corporate commitment if not for the social mission. Investment Banking Services The scale of the industry is simply too small, he argues, and will remain small compared to other industries for some time. While investment banks expect to make money from the microfinance deals they design, they might make even more putting staff to work in other sectors. Investment Banking Services On the other hand, one cannot dismiss the commitments to microfinance as mere image-building or conscience-calming. Investment banks are attracted for reasons that include penetrating emerging and frontier markets, the attraction of working at a cutting edge of finance, and Investment Banking Services On the other hand, one cannot dismiss the commitments to microfinance as mere image-building or conscience-calming. Investment banks are attracted for reasons that include penetrating emerging and frontier markets, the attraction of working at a cutting edge of finance, and tapping into the growing social investment movement. Following the . financial crisis, we can add making countercyclical .
