Sale and Leaseback Transactions in Investment Banking

by Matt - February 16, 2019February 17, 20190

When people think of a sale and leaseback transaction, they think about a company that owns some real estate or equipment and then agrees to sell it to a buyer and continues to use the asset sold by leasing it back. Very simple. And because of the simplicity of this arrangement, this

Preparing for Your First Client Meeting As An Investment Banking Analyst

Career

by Matt - February 3, 20190

E. Jimmy Smith, HBA '20 His palms are sweaty, knees weak, arms are heavy There's vomit on his sweater already, mom's spaghetti He's nervous, but on the surface he looks calm and ready To drop bombs, but he keeps on forgettin' What he wrote down, the whole crowd goes so loud He opens his mouth, but

Canadian M&A Roundup Q4 2018

Mergers & Acquisitions

by Brian - January 28, 2019January 28, 20190

After a sharp increase in the deal activity in the third quarter of 2018, Canadian M&A experienced a 14.8% drop to CAD $129.75B in Q4 from $152.4B in Q3, reflecting a 14.8% Q/Q decrease, and a significant increase from $32B in Q4 2017. M&A Drivers A few drivers of M&A activity in

Compiling a Buyers List in Investment Banking

Mergers & Acquisitions

by Matt - January 20, 2019January 20, 20190

Compiling a Buyers Universe When investment bankers are looking at an asset or a corporate for sale, the natural question is who buys it. This is part of the expertise that the investment banker provides in their services offering. At a large investment bank such as JP Morgan, there are large, dedicated

Accessing Leveraged Capital Markets – Part II

by Matt - December 17, 20180

Getting a Credit Rating for High Yield Bonds When debt issuers want to issue debt in a public offering1, they will need credit ratings from the three major credit rating agencies: Moody's, S&P and Fitch Ratings. Generally, investors like to see at least two, with Moody's being the gold standard when it

Accessing Leveraged Capital Markets – Part I

by Matt - December 11, 20180

Issuing High Yield Bonds For levered companies that do not fit the investment grade bucket, there are still robust capital markets options available for debt issuance through the leveraged finance divisions of global investment banks. As discussed in other leveraged finance posts, a large suite of buyers invest in high yield bonds

Interview With A Mergers & Acquisitions Investment Banker – Part II

by Karl - December 9, 2018December 9, 20180

What sector is interesting right now? Oil and gas. Despite the current oil price environment (which is very bad), you are actually seeing a fair bit of consolidation in the space because of the efficiencies of scale in the space. The oil prices are low and there is a lot of uncertainty right

Interview with a Mergers & Acquisitions Investment Banker – Part I

by Karl - December 9, 2018December 9, 20180

Why does everyone want to do M&A? M&A is probably the most flexible group in terms of exit opportunities and gives you the broadest and most technical experience. You will get the most modelling experience in M&A, but I would caveat that it is not as interesting as people seem to think

Preferred Shares Primer

Equity Capital Markets

by Matt - December 6, 20180

When investment bankers look at quick and dirty enterprise value calculations, they generally think: EV = Net Debt (Debt - Cash) + Equity In corporate finance theory, enterprise value includes all levels of the capital stack including preferred shares ('prefs"). Preferred shares are securities that are senior to common equity and generally pay

Introduction to Green Bonds

by Jaycee - November 20, 2018November 20, 20180

Debt Capital Markets - What is a Green Bond? Green bonds are debt securities that use the proceeds to fund sustainable and environmental-friendly projects. Given today's investor focus on environmental, social and governance (ESG) factors - whether for political reasons or other ethical considerations, green bonds can be very attractive bond issuances