Equity capital markets что это
equity capital market
1 equity capital market
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Рынки капитала
Что такое «Рынки капитала»
Подробнее о Рынках капитала
Рынки капитала представляют собой широкую категорию рынков, облегчающих покупку и продажу финансовых инструментов. В частности, существуют две категории финансовых инструментов, являющихся основными на рынке. Это долевые ценные бумаги, которые часто называют акциями, и долговые ценные бумаги, которые также известны как облигации.
Рынки капитала контролируются различными регуляторами в зависимости от страны. В США, например, эту функцию выполняет Комиссия по ценным бумагам и биржевой деятельности. Хотя рынки капитала, в основном, сосредоточены в финансовых центрах по всему миру, большинство сделок, проходящих внутри рынков капитала, осуществляются через компьютеризированные электронные торговые системы. Некоторые из них открыты и доступны всем желающим, другие очень жестко регулируются.
Кроме вышеперечисленных различий, рынки капитала также обычно делятся на две категории рынков, первая из которых, относится к первичным рынкам. На первичных рынках, акции и облигации выпускаются непосредственно компаниями для инвесторов, бизнеса и других институтов, зачастую через андеррайтинг. Первичные рынки позволяют компаниям привлекать капитал без или до проведения первичного публичного размещения акций, что позволяет получать больше прямой прибыли. Затем компания может провести первичное публичное размещение акций, чтобы сгенерировать более ликвидный капитал. В таком случае, компания, как правило, продает свои акции нескольким инвестиционным банкам или другим фирмам.
После первичного рынка акции переходят на вторичный рынок, где инвестиционные банки, другие фирмы, частные инвесторы и множество других участников рынка перепродают свои долевые и долговые ценные бумаги инвесторам. Это происходит на фондовых рынках или на рынках облигаций, которые располагаются на биржах по всему миру, таких как Нью-Йоркская фондовая биржа или NASDAQ. Очень часто торговля осуществляется с помощью компьютеризированных торговых систем. От перепродажи ценных бумаг на вторичном рынке эмитент не получает за это денег. Однако компания-эмитент, скорее всего, будет иметь в своем распоряжении некоторое количество акций, зачастую в форме капитала.
Рынки капитала включают в себя большое количество участников, таких как индивидуальные инвесторы, институциональные инвесторы (сюда относятся пенсионные фонды и взаимные фонды), муниципалитеты и правительства, компании и организации, банки и другие финансовые институты. Некоторые из участвующих в рынках капитала групп, включая правительства, могут выпускать долговые обязательства через облигации (они называются государственными облигациями), однако правительства не могут выдавать собственный капитал за счет акций. Поставщики капитала обычно хотят получить максимально возможную отдачу при минимально возможном риске, в то время как пользователи капитала хотят увеличить его по минимально возможной стоимости.
С другой стороны, в условиях глобализации экономики, все рынки капитала связаны между собой, поэтому малейшие проблемы в одном уголке земного шара могут вызвать серьезные последствия в другом. Лучше всего подобное поведение иллюстрируется глобальным кредитным кризисом 2007-2009 гг., который был спровоцирован крахом ипотечных ценных бумаг США. Последствия этого кризиса отразились на всех мировых рынках капитала, так как банки и институты в Европе и Азии перевели триллионы долларов в эти ценные бумаги.
Люди часто путают или приравнивают рынки капитала к денежным рынкам, хотя они различаются по нескольким важным аспектам. Рынки капитала отличаются от денежных рынков тем, что они используются исключительно для среднесрочных и долгосрочных инвестиций от года или более. Денежные рынки, наоборот, ограничены торговлей финансовыми инструментами, со сроками погашения не более одного года. Денежные рынки также используют различные финансовые инструменты, чего рынки капитала не делают. В то время как рынки капитала используют капитал и долговые ценные бумаги, денежные рынки используют депозиты, кредитование под залог и векселя.
Из-за существенных различий между этими двумя видами рынков, они часто используются по-разному. Из-за более длительного периоды инвестиций, рынки капитала часто используются для покупки активов, денежные достоинства которых инвесторы смогут оценить с течением времени, получая доходы от прироста капитала, и продавая активы, как только настанет подходящее время.
Денежные рынки часто используются, в основном, для небольших по количеству капиталов или просто используются фирмами в качестве временного хранилища средств. С помощью регулярного взаимодействия с денежными рынками, компании и правительства способны поддерживать желаемый уровень ликвидности на постоянной основе. Кроме того, из-за их краткосрочного характера, денежные рынки часто считаются более безопасными, чем инвестиции, сделанные на рынке акций. Это связано с тем, что более длительные сроки трудно предсказуемы. Таким образом, капитал и долговые ценные бумаги, как правило, считаются более рисковыми инвестициям, чем инвестиции, сделанные на денежном рынке.
Equity capital markets
VTB Capital is the top equity house in Russia and the CIS region with increasing global presence, combining local expertise and execution capability with international credentials.
VTB Capital’s ECM team has an unrivalled ECM franchise in Russia and is consistently rated at the top of the Russia ECM bookrunners league tables with a considerable execution track record — having worked on over 60 equity offerings by domestic and international issuers — helping to raise over USD 62 billion of investment since 2009.
To date in 2017, VTB Capital has reinforced its № 1 position in equity offerings taking an over 20% share of the Russian/CIS ECM market (according to ThomsonReuters 3Q 2017) having led a number of landmark equity offerings including the largest IPO (USD 858 million) in the Metals & Mining sector globally since 2013 for Polyus — the 2nd largest global gold company by reserves.
In Russia VTB Capital also acted as Joint Global Coordinator / Joint Bookrunner on a number of placements including four accelerated bookbuilds and a fully marketed secondary offering with an aggregate deal value exceeding USD 1 billion.
Among 2016 highlights VTB Capital acted as a Joint Global Coordinator for the Russian Government when successfully leading a USD 812 million offering of ALROSA, the world’s largest diamond mining company.
VTB Capital is also a growing presence in the international ECM arena having acted as a Joint Bookrunner in a USD 206 million IPO of Global Ports Holding (Turkey), the largest cruise port operator in the world, VTB Capital also acted as Placing Agent in a EUR 1 billion capital increase by Bank of Cyprus, the largest banking group in the country, and in a EUR 1.5 billion rights issue by Banco Popolare, the fourth largest bank in Italy. VTB Capital also participated in a EUR 2.86 billion capital increase by Greece’s third largest bank, Eurobank Ergasias.
In addition to being the regional leader by number and volume of equity placements, VTB Capital regularly wins ‘Best Equity Offering of the Year’ awards reflecting the superior quality of the service VTB Capital provides to its clients.
Equity capital markets что это
Equity Capital Markets vs. Debt Capital Markets
Within Investment Banking, there are a variety of product and industry groups that one has the opportunity to focus on. Some summer internships offer generalist analyst programs, where one has the opportunity to explore different groups within the bank. However, other programs require analysts to be product or industry specific. Thus, it is important that one researches the different groups. Equity Capital Markets and Debt Capital Markets are examples of product groups. Both of these groups help their clients raise funds but in different ways. As implied by the name, in the Equity Capital Markets group, bankers focus on raising equity for clients. Debt Capital Markets group raise debt for clients. “Raising Equity”? “Raising Debt”? In the following paragraphs, I will discuss what those phrases mean and what makes these product groups unique.
Equity Capital Markets
The Equity Capital Markets group is a cross between sales & trading and investment banking. Being a member of this group means that one will be spending most of their time giving advice to clients about raising equity capital. Raising equity means that a company sells a certain amount of ownership in the company in exchange for cash.
The Equity Capital Market group can be broken down into three subgroups:
— Equity Origination: This group pitches companies on raising capital and financing deals such as IPOs.
— Syndicate: This team works with other banks to execute the deal. This is necessary as most of the equity deals involve multiple banks.
— Convertible Bonds: Convertible bonds are debt issuances that convert into equity once a company’s stock price reaches a certain number. So, this group works with companies to raise capital using convertible bonds.
As an analyst in the Equity Capital Markets group, one has the opportunity to perform a variety of tasks. One task involves the creation of market slides for an industry group that is pitching a client’s business. In addition, an analyst will also create slides based on previous clients that hired the bank to raise capital. An analyst can show these slides to potential clients as a way to show how their bank helped a previous client raise desired capital without giving away too much ownership. Also, one executes shareholder analysis, which entails analyzing a company’s current shareholders and the percentages the shareholders own in the company. Equity Capital Markets entails some financial modeling through valuing potential clients by comparable companies or analyzing how a company’s ownership changes after an offering.
Lastly, when working for the Equity Capital Markets, an analyst makes deals such as an initial public offering (IPO). In addition, one executes a follow-on offering, which is when the company is already public and wants to raise additional equity capital. Another type of deal is a secondary offering, where the company does not generate additional capital but rather investors sells their shares to other investors.
Debt Capital Markets
Similar to Equity Capital Markets, Debt Capital Markets is a mix between sales & trading and investment banking. However, that is the only similarity between the two. Debt Capital Markets is a type of market where companies raise funds by trading debt securities. These securities include corporate and government bonds. When a company raises debt, it means that it borrows funds and pays interest on those funds. This is different than equity because there is no decrease in ownership.
As an analyst for Debt Capital Markets, one is responsible for four main tasks:
— Executing debt issuances for clients.
— Pitching clients on debt issuances. Must be able to answer their questions.
— Updating market slides for other groups.
— Create case studies about recent deals.
Debt Capital Markets has much less financial modeling work than Equity Capital Markets. It is a higher volume business than Equity Capital Markets as the global credit markets are larger than the global equity markets. As a result, the Debt Capital Markets group works in a faster paced environment as deals occur more rapidly. In addition, the Debt Capital Markets group has less risk than the Equity Capital Markets team. Thus, Equity Capital Markets and Debt Capital Markets are two unique product groups that an analyst has the opportunity to work within.
Equity Capital Markets (ECM): The Definitive Guide
If you hear the words “Equity Capital Markets (ECM)”, you might immediately think of initial public offerings (IPOs) and companies raising billions of dollars in huge stock-market debuts.
But there’s a lot more to the group than breaking records and making headlines in the process.
Like other capital markets teams at banks, ECM groups can be described as a cross between investment banking and sales & trading.
If you’re in this group, you’ll spend most of your time advising companies that want to raise equity capital.
“Raising equity capital” means that the company sells a percentage of ownership in itself in exchange for cash – as opposed to raising debt, where the company maintains its ownership but must pay interest on the funds it raises.
There’s a surprising amount of controversy online about this group, from how “good” it is to what the true exit opportunities are.
We’ll take a look at all those points in this article, as well as recruiting, team structures, typical deal workflows, on-the-job tasks, and more:
Equity Capital Markets Interviews
In some cases, students intern in ECM and then accept full-time offers; in others, they are brought in via a placement or “sell-day” process.
Some Analysts also find their way into the group via lateral hiring, and sometimes bankers from industry coverage groups join because they’re seeking a better work/life balance.
The recruiting process and interview questions for ECM teams are quite similar to what you would receive in investment banking interviews anywhere else.
Expect questions on accounting, equity value and enterprise value, valuation approaches, DCF analysis, and transaction modeling.
For the basics, please see our tutorial on how to calculate Enterprise Value.
Questions on M&A deals and leveraged buyouts are a bit less likely since you do not work on them in ECM, but almost anything is fair game in entry-level interviews.
The main difference is that you need to show more of an interest in the markets – be able to discuss recent equity issues and trends, how indices are performing, and how IPOs and follow-ons have done recently in your region of interest.
You can follow our deal discussion examples to plan out what you’ll say for these questions.
To learn more about recent IPO filings, Renaissance Capital’s “Commentary & News” section is helpful.
It’s tougher to find information about follow-on offerings and convertible bonds, but sometimes the NY Times DealBook has good coverage.
If you’re interviewing for a convertible bonds role, you should also familiarize yourself with calls, puts, and the basics of how to value convertible bonds and create payoff diagrams.
The textbook Options, Futures, and Other Derivatives by John C. Hull can be a useful reference; we also cover convertible bond accounting and valuation in our IB Interview Guide and Financial Modeling Mastery course.
Your response to the “Walk me through your resume” question will be similar to what you would say for other groups, but you should emphasize how you like both markets and deals, so equity capital markets is the perfect combination, given your past experience, current interest, and future career goals.
For more details, please view the investment banking recruitment section of this site.
The Equity Capital Markets Team Structure: 3 or 4 Teams in 1
Most people speak about ECM as if it’s a single group, but it is actually divided into a few different subgroups at most banks:
At some banks, the ECM team might sit on the trading floor since there’s significant interaction with salespeople and traders.
As an Analyst, you might split your time between a few industry sectors within ECM, but as you become more senior, you’ll tend to specialize in one area (e.g., healthcare or technology).
Finally, some banks also have Private Placements teams, which help companies raise capital by selling equity to a small group of large investors (rather than a broad market offering).
Private Placements let companies raise significant capital without going public, and they’re especially popular among later-stage technology companies.
The Role of an Equity Capital Markets Analyst: Workstreams, Projects, and Sample Assignments
Your main job in Equity Capital Markets is to tell stories about companies’ growth potential so that the companies can raise capital from investors.
The work differs depending on which team you’re in, and it gets more technical if you cover convertible bond offerings.
On the Equity Origination side, you can expect tasks such as the following:
With convertible bonds, you’ll complete similar tasks, but for the convertible market instead. Plus:
This analysis helps you answer questions about demand for possible issuances – for example, if interest rates rise by 2%, how would demand for a convertible bond change? Should the company offer a higher or lower conversion price if that happens?
Equity Capital Markets Deals
Everyone knows about the initial public offering (IPO), but you could work on plenty of other deals in equity capital markets:
You could even help a company to repurchase its shares via an Accelerated Share Repurchase (ASR) deal.
It’s the reverse of an equity offering, and companies often do it when they have excess cash but no plans for how to use it, or when they believe their shares are undervalued, or a combination of both.
Finally, there are different roles for banks in all these deals.
For example, in an IPO, an investment bank could be either a bookrunner or a co-manager – bookrunners do most of the work, get most of the investors, and collect the highest fees, while the co-managers are less involved and earn lower fees.
Most bulge bracket banks act as bookrunners, while boutique and middle market banks tend to act as co-managers. On the biggest deals, though, even the bulge bracket banks could be assigned to act as co-managers.
In ECM, you’ll almost always work with other teams as you execute deals. Here’s an example of the workflow for different tasks in a healthcare IPO:
Equity Capital Markets Hours & Compensation
We mentioned earlier that some industry bankers move to ECM if they want a better lifestyle.
In many cases, that happens: An average day might be 7 AM – 7 PM, which may seem like long hours, but which is quite mild compared with investment banking hours in other groups.
If you’re done with your work, you can just go home; there’s far less “face time,” and all-nighters and weekend sessions are rare.
Much of your day will be taken up with “Please take 15-30 minutes to do this task” requests because you work with many different industry groups.
The hours in the convertible team can be longer because the work is more quantitative and deals can be more complex, but even there, you’ll probably work less than you would in an M&A or industry group.
At the Analyst level, equity capital markets compensation is similar to compensation in any other group.
The pay ceiling for Managing Directors and other senior bankers is lower than in other groups because the fees are split more ways, but high-six-figure to low-seven-figure compensation is still possible.
Equity Capital Markets Exit Opportunities
And now we reach the major downside of ECM teams: The exit opportunities.
The most common exits are moving to an industry group (healthcare, technology, consumer/retail, etc.), going into investor relations (IR) at a normal company, or joining a hedge fund or other buy-side firm in an IR or fundraising role.
Outside of those, it would be tough to win roles such as equity research or investment analysis at hedge funds because of the types of projects you work on as an ECM professional.
It’s not impossible to win roles in private equity or corporate development, but it is extremely difficult, and you’ll have trouble getting headhunters interested if you’re coming from capital markets.
You do work on deals, but much of your work is different and doesn’t apply to acquisitions of entire companies.
So, if you want to go that route, you’ll have to do much of the legwork yourself or move to a different group first.
If you want to make a long-term career out of banking, you could argue that ECM is a fine group since you’ll have a better lifestyle and you’ll still earn a lot.
But if you’re laser-focused on the private equity career path, this is not the group for you.
Equity Capital Markets vs. Investment Banking
We receive many questions about how ECM is “different” from investment banking.
The truth is, it is a part of investment banking, and almost all mid-sized and large banks have equity capital markets teams.
The main difference is that the group focuses exclusively on equity deals instead of debt or M&A deals, and it works across different industry verticals rather than focusing on just one.
It’s more of a markets-based role, which creates all the differences discussed in this article:
ECM: Trade-Offs and Final Thoughts
Equity Capital Markets gets a lot of hate online, primarily because most commenters assume that if you don’t make it into PE, then you are a failure as a person.
But the truth is, even if you end up in ECM, you are still working in investment banking, which is better than what
95%+ of university graduates will be doing.
The trade-offs are as described above: Somewhat better hours and solid compensation, but more specialized work and limited exit opportunities unless you transfer to a different group.
Some people claim that the work is “more boring” because you spend so much time updating slides and doing administrative tasks.
That’s true to some extent, but they fail to realize that most junior-level work in most groups is boring: Updating data rooms, creating lists of buyers and sellers, and editing documents.
The difference is that in non-capital-markets teams, you have a higher chance of exposure to deals that make for better talking points in interviews (even though you’ll still spend most of your time on grunt work).
So… to ECM or not to ECM?
If you don’t know what you want to do and you want to keep your options as open as possible, it’s not necessarily the best choice. And if you’re laser-focused on PE, it’s also not ideal.
But if your best internship or job offer is in ECM, accept it.
If you’re interested in banking for the long term and you don’t necessarily want a quick exit, ECM could also work.
And if you start out in the group and then realize it’s not for you, just switch teams – just like everyone else.