Key Reasons for Engaging in Investment Banking

Investment banking is in more demand today than both retail and commercial banking. The advantages that these banks offer are responsible for their steadily increasing popularity. An investment bank assists companies and people to raise capital through engaging in the stock exchange market and making investments, a service that other banks do not offer at all.

James Dondero, the Co-Founder and President of Highland Capital Management and an experienced investment banker, through this company, is helping corporates and individuals to understand investment banking and enhance their investments and growth in portfolios. The veteran investment banker is also the Portfolio Manager of NexPoint Credit Strategies Fund. Mr. Dondero has over 30 years of experience in the investment field. Before founding Highland Capital Management in 1993, he served as the Chief Investment Officer of Protective LifeĆ­s GIC subsidiary. In between 1890 and 1993, he helped the company to grow from concept to over two billion US dollars. From 1985 to 1989, Mr. Dondero managed about one billion US dollars in fixed income funds for American Express. His portfolio management experience includes real estate, common stocks, preferred stocks, leveraged bank loans, and mortgage-backed securities, among many others.

Mr. Dondero received a Bachelor of Science Degree in Commerce, Accounting and Finance Option, from the University of Virginia. The professional is also a Chartered Financial Analyst and a Certified Managerial Accountant. The renowned investment banker currently serves on the Board of Directors for Metro-Goldwyn-Mayer and American Banknote and as the Chairman of the Board for NexBank, CCS Medical, and Cornerstone Healthcare.

Knowledgeable bankers agree that there are many reasons for engaging in investment banking. Investment banks not only act as agents for their clients, but they also underwrite and issue securities. Many companies and individuals acquire the services of these banks for the underwriting and issuance of securities every day.

Investment banks specialize in providing specific investment services such as market marking, equity securities, fixed income commodities, and trading of derivatives. These specialized banking institutions also facilitate and overlook the entire merger and acquisition processes. Informed investors will always seek them as they specialize in these investment fields.

Investment banking provides the most secure platform for investors to build and maintain their investments as they have access to well-informed professionals who offer very useful insights into the investment field, including stock exchange. These professionals, also, have the knowledge of how to find and invest in the most cost-effective products available in various industries. This means corporate bodies and individuals have an opportunity to excel in business when they engage in investment banking. Therefore, they should always seek the services and advice of investment bankers as they can benefit from the latest and adept insights on investing money and raising capital.

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