PrefaceI. Investment BankingChapter 1. Overview of Investment BankingInvestment Banks and Their ClientsLarge CompaniesInstitutional InvestorsGlobal Investment Banking FirmsOther Investment Banking FirmsInvestment Banking Businesses and OrganizationsInvestment Banking DivisionTrading DivisionAsset ManagementWealth ManagementInvestment Banks During and After the 2007–2008 Financial CrisisChapter 2. Regulation of the Securities IndustryIntroductionUS RegulationsRecent Developments in Securities RegulationChapter 3. FinancingsCapital Markets FinancingsFinancing ConsiderationsFinancing Alternatives“Green Shoe” Overallotment OptionInternational FinancingsChapter 4. Mergers and AcquisitionsThe Core of Mergers and AcquisitionsCreating ValueStrategic RationaleSynergiesControl PremiumCredit Ratings and Acquisition CurrencyRegulatory ConsiderationsSocial and Constituent ConsiderationsRole of Investment BankersOther Merger and Acquisition ParticipantsFairness OpinionLegal Issues Faced by BoardsAcquisitionsDue Diligence and DocumentationBreakup FeeAlternative Sale ProcessesCross-Border TransactionsTax-Free ReorganizationsCorporate RestructuringsTakeover DefensesRisk ArbitrageValuationM&A Litigation TopicsChapter 5. TradingSales and TradingEquity TradingFixed Income, Currencies, and Commodities TradingProprietary TradingNew Nonbank Financial InstitutionsRisk Monitoring and ControlValue at RiskChapter 6. Asset Management, Wealth Management, and ResearchAsset ManagementWealth ManagementResearchChapter 7. Credit Rating Agencies, Exchanges, and Clearing and SettlementCredit Rating AgenciesExchanges and Other Trading VenuesDark PoolsOver-the-Counter MarketClearing and SettlementChapter 8. International BankingEuromarketsJapan’s Financial MarketChina’s Financial MarketEmerging Financial MarketsGlobal Initial Public Offering MarketAmerican Depository ReceiptInternational Financial Reporting StandardsInternational InvestorsChapter 9. Convertible Securities and Wall Street InnovationConvertible SecuritiesWall Street InnovationNikkei Put WarrantsAccelerated Share Repurchase (ASR) ProgramsChapter 10. Investment Banking Careers, Opportunities, and IssuesInvestment BankingTrading and SalesPrivate Wealth ManagementAsset ManagementResearchPrincipal and Credit InvestmentsOther Investment Banking FunctionsInvestment Banking Opportunities and IssuesII. Hedge Funds and Private EquityChapter 11. Overview of Hedge FundsThe Case for Hedge FundsRegulationLeverageGrowthComposition of InvestorsIndustry ConcentrationPerformance2008 CrisisMarket Liquidity and EfficiencyFinancial InnovationIlliquid InvestmentsLock-Ups, Gates, and Side PocketsComparison With Private Equity Funds and Mutual FundsHigh Water Marks and Hurdle RatesFund of FundsChapter 12. Hedge Fund Investment StrategiesEquity-Based StrategiesMacro StrategiesArbitrage StrategiesEvent-Driven StrategiesChapter 13. Shareholder Activism and Impact on CorporationsShareholder-Centric Versus Director-Centric Corporate GovernanceActivist Hedge Fund PerformanceActivist Hedge Fund Accumulation StrategiesCSX Versus TCIChanging Rules That Favor ActivistsDaniel Loeb and 13D LettersBill Ackman—McDonald’s, Wendy’s, Ceridian, Target, MBIA, and ValeantSummaryChapter 14. Risk, Regulation, and Organizational StructureInvestor RisksSystemic RiskRegulationOrganizational StructureChapter 15. Hedge Fund Issues and PerformanceHedge Fund PerformanceFund of FundsAbsolute ReturnTransparencyFeesHigh-Water MarkSearching for ReturnsMerging of FunctionsInternational Hedge Fund InitiativesBenefits RevisitedFuture DevelopmentsForecasts for Hedge Fund IndustryChapter 16. Overview of Private EquityCharacteristics of a Private Equity TransactionTarget Companies for Private Equity TransactionsPrivate Equity Transaction ParticipantsStructure of a Private Equity FundCapitalization of a Private Equity TransactionAssets Under ManagementHistoryFinancing BridgesCovenant-Lite Loans and Payments-in-Kind TogglesClub Transactions and Stub EquityTeaming Up With ManagementPrivate Investment in Public EquitiesLeveraged RecapitalizationsSecondary Markets for Private EquityFund of FundsPrivate Equity Goes PublicPrivate Equity Historical ResultsChapter 17. LBO Financial ModelDetermining Cash Flow Available for Debt Service and Debt SourcesDetermining Financial Sponsor Internal Rate of ReturnDetermining Purchase Price and Sale PriceLeveraged Buyout Analysis ExampleLeveraged Buyout Analysis Post–Credit CrisisChapter 18. Private Equity Impact on CorporationsPrivate Equity–Owned Companies: Management Practices and ProductivityPrivate Equity–Owned Company FailuresPrivate Equity Purchase Commitment FailuresDeal Profile for Historically Large Private Equity Portfolio CompaniesPrivate Equity Value Proposition for CorporationsCorporate Rationale for Completing Private Equity TransactionsPrivate Equity as an Alternative Model of Corporate GovernancePrivate Equity Influence on CompaniesChapter 19. Organization, Compensation, Regulation, and Limited PartnersOrganizational StructureCompensationRegulationsLimited PartnersChapter 20. Private Equity Issues and OpportunitiesPrivate Investments in Public Equities (PIPE)Equity BuyoutsDistressed AssetsM&A AdvisoryCapital Markets ActivityReal Estate, Hedge Fund, and Credit InvestmentsBoom and Bust CyclesAnnex FundsAsia-Pacific Private EquityPrivate Equity Public Share IssuesComparison of Private Equity FirmsFuture Issues and OpportunitiesThe New LandscapeIII. Case Studies1. Investment Banking in 2008 (A): Rise and Fall of the BearInvestment Banking in 2008 (B): A Brave New WorldFreeport-McMoRan: Financing an AcquisitionThe Best Deal Gillette Could Get? Procter & Gamble’s Acquisition of GilletteA Tale of Two Hedge Funds: Magnetar and PelotonKmart, Sears, and ESL: How a Hedge Fund Became One of the World’s Largest RetailersMcDonald’s, Wendy’s, and Hedge Funds: Hamburger Hedging? Hedge Fund Activism and Impact on Corporate GovernancePorsche, Volkswagen, and CSX: Cars, Trains, and DerivativesThe Toys “R” Us LBOCerberus and the US Auto IndustryH. J. Heinz M&AQuintiles IPOThe Panera Bread LBOIndex