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Here’s Everything You Need to Know About Capital Markets Services by Banks

Capital Markets Services

The financial services sector has undergone a rapid transformation in recent years with the introduction of disruptive technologies like Artificial Intelligence, the Internet of Things, Smart Contracts, and Blockchain. Large multinational organizations and small firms find this change challenging. Further, some aspects like complying with capital market regulations, asset management, shrinking revenues, and increasing costs also add to the challenges.

Clients or customers are looking for a distinguished customer experience through effective solutions. Banks and financial institutions help them with capital markets services, which include investment management services, research, asset management services, equity fund and trading, structured funding solutions, and consulting services. With these differentiated services, banks or financial institutions help clients draw a competitive advantage and sustenance in the long run.

It is crucial for a company to have access to capital to realize its financial goals, whether short-term or long-term or both. Most companies around the world use the market insights and strong capital market presence of equity and debt houses to raise capital through initial public offerings (IPO), structured finance arrangements, preferential offerings, and private placements. 

What are capital markets?

Capital markets are places where the selling and buying of securities take place. People who seek capital include individuals, institutions, businesses, and governments, while those with money to invest or lend are investors, banks, and institutions. All the savings or surplus money from investors are channelled to companies and institutions by capital markets to use productively. Capital markets typically trade long-term securities in their primary and secondary markets.

Primary markets have companies or institutions selling new stocks and bonds like an IPO. Secondary markets trade in previously issued securities, and they are supervised by the Securities and Exchange Commission (SEC).

Get to know the capital markets services banks provide

You can find several leading banks offering capital markets services like:

  1. Investment banking services

A bank’s investment banking division helps companies, institutions, and governments to raise capital through underwriting services. As an intermediary, banks connect investors and companies, which look for funds to grow or expand their business. The investment banking services include:

  • Underwriting – The underwriting and capital raising team of a bank offers a comprehensive equity platform to raise capital via an IPO. It helps companies or institutions can raise capital.
  • Trading – They match up traders of equity in the secondary market. The trading division of the bank trades in the company’s capital or acts as a trading agent for clients. Investment banks with a strong presence in different capital markets and considerable experience in the field can help you with trading.
  • Equity research – The equity research professionals can help you with deep insights into capital markets, which will help you make informed investment decisions.
  • Asset Management – Managing an array of investment styles for different types of investors like individuals, institutions, and companies.
  • Services related to the listing of REITs and Business Trusts

When it comes to addressing the issues connected with a company’s route to Real Estate Investment Trusts (REITs) and Business Trusts (BTs) status, there are not many banks or institutions to help you with solutions.

For instance, DBS offers a range of capital markets solutions to help companies in Singapore and across the world with REITs listing via IPO. Its capabilities extend to essential asset classes like retail, hospitality, logistics, office, infrastructure, industrial, shipping, and healthcare. And its professionals in capital markets can offer you valuable insights into REITs and BTs funding.

  • Fixed income services

Banks can offer you a comprehensive fixed income platform underwriting bonds in the debt capital markets in Asia. The online platform provides customized capital-markets solutions to meet the funding needs of clients. These solutions help clients harness the knowledge of the investment professionals, who understand different market cycles and raising of debts through origination, structuring, trading, syndication, credit ratings, and ESG advisory.

In short, banks or financial institutions help their clients with distinctive capital markets services to deal with increasingly complex challenges and remain competitive in the changing market conditions.


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