Bank of Montreal 1999 Annual Report Download - page 61

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Bank of Montreal Group of Companies 1999 Annual Report 55
Investment Banking Group
Group Description:
Following the Bank’s organizational restructuring in
1999, the Investment Banking Group (IBG) was formed
from businesses that previously resided in Investment
& Corporate Banking and Portfolio & Risk Management,
bringing together the capital-raising, advisory and invest-
ment activities that are undertaken on behalf of our larger
c
orporate, government and institutional clients. IBG
encompasses Investment & Corporate Banking, Capital
Markets group, Merchant Banking, Securitization, Equity
Research, Institutional Equities, Asset Portfolio Manage-
ment, and Governments & International Financial Insti-
tutions, including Trade Finance. IBG provides a full
range of financial products and services to institutional
investors and corporate, government and institutional
client segments.
Client Profile:
The Capital Markets group comprises Global Distri-
bution, High Yield, Foreign Exchange, International
Money Market, Fixed Income, and Global Financial
Products. The team offers financial solutions to North
American corporate and institutional clients, and pro-
vides access to the North American market for selected
European and Asian clients. Capital Markets also ser-
vicestheneedsofourretailandcommercialclientbase.
The Institutional Equities teamisthetoptraderanddis-
tributor
of Canadian equities around the world. With
over 45% of the international equity team located out-
side of Canada, the group has achieved the largest
market share in all major international markets for
Canadian equities.
The
Asset Portfolio Management
group
, through
the
application of sophisticated portfolio management
techniques, manages corporate and institutional loans
and securities portfolios, including the retained com-
ponents of originated financing. The group also sup-
ports the origination efforts of the client coverage
group, and manages credit risk taken by the Capital
Markets group in its trading activities.
The Investment and Corporate Banking group
offers
products that address the capital and advisory
needs
of our corporate, government and institutional clients.
The team offers clients financial advisory services on
issues ranging from mergers and acquisitions, divesti-
tures, public takeover bids, and takeover defense to
fairness opinions and valuations, and restructurings
and recapitalizations.
The Securitization group helps companies obtain
inexpensive, efficient and flexible financing by using
asset securitization vehicles. Some of the assets secu-
ritized include credit card receivables, oil and gas
production payments, auto loans and mortgages.
The Merchant Banking group is a private equity invest-
ment
business with other ancillary services, which
sources, structures and finances equity investments in
growing North American companies.
The Research group provides continuous fundamental
and quantitative research coverage of all sectors in
the Canadian equity market.
The
Governments & International Financial Institutions
group actively manages relationships with govern-
ment and international financial institutions segments,
and also serves the needs of those corporate clients
with international interests or Trade Finance require-
ments. The group offers products such as financing
and operating services.
Environmental Overview:
The Investment Banking Group operates in an intensely
competitive environment with an ever-increasing num-
ber of North American and global participants.
Global trends are putting increased pressure on all
players to address their treasury and fixed income strate-
gies.
Major structural changes are underway, opening up
international markets; the market environment is tight-
ening; institutional investors are becoming increasingly
sophisticated and enjoying growing market power; there
is a commoditization of vanilla products and an increas-
ing focus on credit; competition is intensifying in national
markets from global bank and niche players; and elec-
tronic delivery channels are growing.
IBG invests heavily in both technology and profes-
sional development. As IBG continues to strengthen its
specialized lines of business, the challenge is to deliver
seamless cross-border products and services to clients
in North America and selected international markets.