I have been in the financial industry for exactly eight years and for a large part in the vendor service industry. For the last couple of years, I have the privileged to work with a startup incubator and investment firm. Through these roles, I had the opportunity to work with a wide range of financial sectors in the investment banking industry; major investment banks, regional banks, sovereign wealth funds, pension funds, central banks, market makers, mutual funds, hedge funds, corporate treasury and you get the picture…
The financial industry is a complex mix of relationships that even the government and regulators are having a difficult time getting the full picture and regulating it. It’s an intertwine of equity, debt, currencies and commodities assets structured into investment securities and contracts issued for reasons such as capital raising, hedging risk and asset investment and management. It is also these underlying asset instruments that drives the functions of each of these market players. Thus, to map the industry, it is essential to understand what are these instruments and the relationship of the market players. I hope to reinforce my understanding of the industry with these write-ups and share this broad overview of the industry make-up.
Each write-up is intended to be brief and concise. I hope it can be easily understood by anyone. I have broken down my write-ups of each investment assets into three main points when sharing my personal views and opinions.
- Why is the security or contract created?
- How are the security or contract valued?
- Who are the players throughout the life cycle of the instrument?