Companies need places where they can go to have their financial needs addressed. Your local neighborhood bank simply is not equipped to handle the size of these accounts, nor can they lend as much money as other financial institutions who focus primarily on business clients. These banks are investment banks and their scope of services focus on the large corporation in order to meet and exceed their needs.
The investment bank is able to raise the type and amount of capital that large corporations need. They can aid in generating securities that can be sold to investors on the stock market. The investment banker can also aid in performing research that will offer insight to their clients about how their company fares in the present market and the prospective outcome for their future growth.
This is exactly what James Dondero has been doing for more than 30 years. He has vast experience with credit and equity markets and is able to aid his clients in generating the capital they need to be competitive and grow. He started as a bond analyst and then moved into portfolio management. After a time dealing with clients need for wealth generation, he then went on to co-found Highland Capital Management.
Through the venue of Highland Capital Management James Dondero handles more than $21 billion in client assets. That amount continues to grow every day. While James’ specialty is credit strategies, Highland Capital Management offers many different services. Among some of the services that HCM offers include emerging markets, long and short term equties, as well as natural resources.
The very talented team of financial investment professionals have the experience and the education to grow their clients wealth exponentially. As investment professionals they perform research as well as generate the best solutions for portfolio management based on that research.
Risk management is also a large part of hat the investment banker does. They need to know how large a risk their clients can afford before offering investments that will meet their needs. Many different facets go into assessing the clients’ risk level. Some of these facets include age of the individual, income level at present time, and how much they can afford to lose if a deal does not go well.
Risk assessment can also entail looking at the liquidity of the monies that the client presently has. Are all of their monies tied up in their portfolio or do they have cash readily available to them? Depending on the client it is also prudent to take factors such as health and number of children living at home into consideration.
Investment banking concerns itself with making money for its clients. The client wants to put their money somewhere where it will grow. Wealth management seems to be a good way to explain what investment banking is. It is what James Dondero has been quite successful at for many decades. He has grown wealth and capital for many a company and personal account, and will probably continue for many years to come.