Investment Banking Types
When you talk about investment and investment banking, the first thing that would come to your mind is business management and finance. That means that if you think that that the credit limit on your card is low you can ask your bank to increase it. The thing to remember here is that they want YOUR business and they are a lot of hanks competing for it, so they will probably be more than happy to do this for you.
As mentioned before, one of the reasons people opted for subprime loans was, because they thought that with time, their homes would appreciate and refinancing will not only help them get lower interest rate loans, but would leave enough money to pay off other expenses like credit card bills, remodeling of the home, etc.
A study directed by Luc Renneboog at Netherlands, Tilburg University estimates that the rate of growth from 1970 to 1997 to be around 4{29605dee68c1b183c971296e05b1536e8a9cef6d5d48c9b4ef1206285b877a40}. We can speculate that the long-term rate of return for investment grade art is somewhere between 2{29605dee68c1b183c971296e05b1536e8a9cef6d5d48c9b4ef1206285b877a40} and 6{29605dee68c1b183c971296e05b1536e8a9cef6d5d48c9b4ef1206285b877a40} with 4{29605dee68c1b183c971296e05b1536e8a9cef6d5d48c9b4ef1206285b877a40} probably a fairly decent estimate depending on the art today’s economy where certificates of deposit are yielding close to 0{29605dee68c1b183c971296e05b1536e8a9cef6d5d48c9b4ef1206285b877a40}, a 4{29605dee68c1b183c971296e05b1536e8a9cef6d5d48c9b4ef1206285b877a40} yield on fine art would appear attractive.
The first and least impressive was to put the million in a bank or buy government CD’s which on that amount of money would be a few percentage points above the overnight cash rate due to the bulk discount one would receive with a large investment like that.
Brokers, underwriters, and other intermediaries who operate in these markets therefore have to follow laid down professional codes of conduct embodied in the legislation applicable to such institutions as finance and insurance companies, mutual funds and pension funds.