Colleagues in the equity capital markets division

Assignment Help Financial Management

Reference no: EM131964157

You are a senior equities trading manager and you are brought “over the wall” to discuss a potential $800 million block trade with your colleagues in the Equity Capital Markets division. This is a transaction where a private equity shareholder will sell out of some of their position at a fixed price to your bank shortly after market close, at a discount to the daily closing price, and the bank has all of the downside risk and upside exposure between the price at which they purchase the block and the price at which they exit it. The stock in question is one that your company provides research on, but not one that you personally are very familiar with. What questions should you ask to each of Equity Capital Markets, your research analyst and sales heads (assuming they’re wall-crossed)?

Reference no: EM131964157

Questions Cloud

Current pension plan portfolio investment mix : Given her current pension plan portfolio investment mix, she estimates a nominal annual expected return of 7.2% which translates to 0.6% monthly expected return

Personal and enterprise risk comprehensive risk management : Traditional risk management has unlimited-scope to pure loss exposure including property, liability. personal and enterprise risk comprehensive risk management

What is the total value of the bank portfolio : If the bank hedges the futures contract, what is the total value of the bank’s portfolio?

Explain the two main types of trades : Can you explain the two main types of trades he could establish that are related to chemical sector bonds, including the mechanics and pros/cons of each?

Colleagues in the equity capital markets division : You are brought “over the wall” to discuss a potential $800 million block trade with your colleagues in the Equity Capital Markets division

Explain the importance of annualizing an interest rate : Explain the importance of annualizing an interest rate the correct way for financial decision making. Provide an example.

Retirement account at the time he retires : He is planning to retire early at 55 and wants to know how how much he will have in his retirement account at the time he retires.

Comparing two different capital structures : Haskell Corp. is comparing two different capital structures. What is the price per share of equity under Plan I? Plan II?

How might this change the value of an asset or liability : How do you think today's low interest rate environment is impacting the time value of money? How might this change the value of an asset or liability?

User Account

All Pages