POLI 311 Lecture Notes - Lecture 7: Investment Fund, Fixed Income, Investment Banking
12 May 2018
School
Department
Course
Professor
Guest Lecture: Sustainable Finance
Main Players
• Private sector financial institutions (e.g. IOs)
• Public sector financial institutions
• Govt entities and regulators
Private Financial Institutions
ST Horizons:
• Commercial Banks
• Investment Banks
• Property and casualty insurance firms
LT Horizons:
• Life insurance firms
• Pension funds
• Hedge funds, private, equity, venture capital
• Pooled investment vehicles/fund managers
• Foundations/endowments
3 Major Components of Finance
1) Debt (e.g. mostly fixed income products and credit extensions)
• Lending activity (home mortgages to project/structured finance)
• Credit extensions (open lines)
• Fixed income products (a wide range)
• IPOs
2) Equity Investments (e.g. mostly common stock)
• Common stock vs debt – debt = commitment to the borrower to payback
• Common stock = betting on the stock that it will go up, no commitment to get
anyone to pay you back
• Public vs non-publicly traded companies
• Common vs preferred stock
• IPOs
• For the financer vs for their customer
3) Insurance Underwriting
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