Investment Banking

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Kyle Bass’ Negative Career Decisions

Kyle Bass in an American investor who is best known for his accurate prediction of the 2008 worldwide financial crisis. Bass realized that many large American banks were loaning money to individuals who simply were not qualified for the loans, and bet against those individuals paying money back on their loans by investing into credit default swaps. Betting against the well-being of the investing market is kind of a sleazy thing to do, but it’s in the past now. Bass was able to earn an astounding profit from his credit default swaps despite the failure of the worldwide economy at the time.

One would think that Kyle Bass has had an outstanding career since he made that prediction in 2008, but that couldn’t be farther from the truth. Kyle Bass has made plenty of downright terrible career decisions during his tenure as a investor.

One of the most horrid, stupid things Bass has done in his once-coveted investing career is stay behind General Motors when they had a massive recalls of certain models of cars a few years ago: some tires on certain vehicles were faulty, so they had to recall all of them. Of course, General Motors did not have any knowledge of the faulty tires, but herein lies the wrongdoings of Bass: he blamed consumers of driving the car to be at fault, rather than GM.

Bass has made more bad decisions than just the previous one. Because he correctly predicted the 2008 financial crisis, major news networks have asked for his opinion on various investing and financing topics. On national television, Kyle Bass incorrectly predicted the collapse of Japan’s economy for five years in a row, from 2010 to 2014. Investors who were not sure of Kyle Bass’ inclination to make bad decisions unfortunately listened to him and lost money by investing in credit default swaps against Japan’s economy failing, which has not failed since he predicted it to.

Another blemish on Kyle Bass’ long-storied, unsuccessful career was when he short-sold the stocks of a large pharmaceutical company, then filed a lawsuit against them in court for a patent on their most profitable, landmark multiple sclerosis drug. Fortunately, Bass lost in court because his case got thrown out. Bass claimed he was trying to lower the price of prescription drugs to people who needed it, because patented drugs really can be very costly. Most people who were there in court that oversaw his case felt that Kyle Bass was there to make some money, and nothing else.

With exception to his accurate prediction of the 2008 worldwide financial crisis, Kyle Bass has had a terrible career, as far as ethics and morals go. Bass will probably have enough money to live on, forever, but he didn’t earn all of that money in good faith.

Understanding What An Investment Bank Does

Investments banks play a large role in the financial arena. They are the ground floor players hen acquisitions are being considered, as well as being the primary facet in the selling and trading of securities and equities. Investment bankers need to have a large base of knowledge and the talent to know how to best advise their clients.

Highland Capital Management is a business that deals with many of the same aspects as an investment bank does. Being global in their scope, they are able to aid with not only raising capital for their clients, but also in being an intricate part of mergers and acquisitions.

James Dondero has the experience and the knowledge to deal with many different financial needs. He has 30 years of credit and equity market experience. This aids him with offering a wide range of investing alternatives for his clients. Much of his experience lies within portfolio management and bond analyst.

Highland Capital Management, under the direction of James Dondero, offers its clientele alternatives to the usual investment strategies. They do much research in, and have the ability to direct their clients to optimal options in emerging markets. They can also aid their clients with the choosing of and investing in both long and short equities.

The use of natural resources as an investment tool can also be done through the expertise advice found at Highland Capital Management. They have the expert knowledge and the research data that will lend to well informed investment choices that will grow wealth and benefit their clients.

As an investment firm, Highland Capital Management covers all of the same areas that an investment bank does. Those areas being:

  • Raising Capital
  • Security Underwriting
  • Mergers
  • Acquisitions
  • Sales
  • Trading
  • Equity Research

The investment bank acts as the middleman in many different transactions. For instance, if a company wants to issue new securities into the market, the investment bank can help them with that. They can also aid the company connecting those new securities with the buying public. This aids the company in raising necessary capital for expansion.

The investment bank also aids with the valuation of companies. This is important especially if the company is considering offering new securities for sale. No one wants to invest in a company that is going under or cannot support its future plans.

Negotiations are also a part of what the investment bank does. They help with mergers, acquisitions and matching buyers and sellers. The investment bank, and Highland Capital Management, help with setting up the paperwork and the structure of many of the larger transactions that corporations engage in.

The investment bank handles many of the transactions that larger companies and corporations engage in. They are able to help with the issuance of new securities, as well as aiding in the generation of monies for expansion and ne technologies. The companies and brands we all know and love have probably all been handled by and investment bank.