Investment banking – additional information
The main role of an investment bank is to assist companies, governments and other market participants in raising capital. The banks take the role of a transaction underwriter, making sure that the emission of bonds or stocks is executed optimally on both buying and selling side. It means that the prices of emitted securities are not too high or too low and that there are enough investors interested in purchase of these securities. Investment banking activity also includes assistance in merger and acquisition transactions.
JP Morgan Chase and Goldman Sachs were the top leading investment banks in the world in terms of generated revenues, with 8.1 and 6.9% percent of the market share respectively in 2017. Other leading investment banks were Bank of America Merrill Lynch and Morgan Stanley. The revenues of JP Morgan amounted approximately 5.93 billion U.S. dollars in 2016, whereas Bank of America Merrill Lynch generated about 4.46 billion U.S. dollars.
With the exception of Goldman Sachs, the Debt Capital Markets and Loans segment generated majority of the leading investment banks' revenue in 2017. In that year, Morgan Stanley led the ranking in terms of total value of managed merger and acquisition deals.