Educational contents

Quite a topical question, but before answering it, let’s look at the fundamentals of this element. What is hydrogen and what makes it green?

An exchange-traded fund (ETF) tracks benchmark indexes like the CAC 40. ETF managers do not have to pick between different stocks; they just follow the index according to its composition. ETFs are traded on the market just like shares.

Each month, a “primary dealer” helps countries renew their debts as they reach maturity. To do this, the Ministry of Finance calls on primary dealer banks whose mission is to find investors interested in buying these debts.

Collateral management is a technique the bank uses to quickly identify what can be committed as collateral so that a transaction can be performed. When a company needs a lot of cash, to pay a supplier for instance, the bank will ask the business to commit part of its equity portfolio as collateral to secure the loan. Thanks to its expertise, the bank can...

A hedge fund is defined as more flexible than most common funds, which are usually benchmarked to an index like the CAC40 and try to outperform it. A hedge fund aims to achieve a stable performance of 10% every year by investing in currencies, bonds and other assets to avoid a loss.

M&A stands for Mergers and Acquisitions. It defines the buyout or the fusion of two companies whose activities are similar. In this case, the bank has a crucial advisory role.

An equity broker works with a team of research analysts who constantly analyze the financial health of listed companies. Clients can base their orders on their financial analysis as sent by their broker. Their broker can also help them with their orders and the terms of execution.

Mutual funds are investment vehicles and a way of pooling investments for people who want to invest in the same kind of product. This fund is managed by a professional fund manager and their team in an asset management company.

Clearing defines how banks and financial institutions guarantee the payment and delivery of securities between two parties to a transaction. When one buys financial products like shares, the order they placed is fixed and final. The clearing house will then handle or unwind the transaction.

Capital development means that, through venture capital, a company can get a bank or investment fund to buy into its capital and participate in its growth. It gives the company financial security and an outside yet unobtrusive opinion on its decisions.

A public-private partnership (PPP) is a contract by which the public sector enters into a business relationship with a private sector to build, finance, maintain, oversee and run a project.

Bonds are a security that represents a part of a debt, unlike shares that represent a part of a company. It is issued in a given currency, for a defined period of time and gives right to the payment of a fixed or variable interest. At the end of this period, the initial capital is repaid.

A green bond is a loan for which the money that is raised goes towards financing green projects which have a positive impact on society. For instance: building a wind farm or financing research and eco-friendly engines, thermal insulation, renewable energy, etc.

An Initial Public Offering (IPO) or takeover bid occurs when a company offers to buy out all the shareholders of another entity. Takeover bids can be solicited (friendly) or not (hostile). To do so, banks accompany their clients by studying the project and its feasibility, and by facilitating the IPO. Such an operation can last for months.

When a company needs money to develop a project, it can use structured finance. This customized loan is broken down into levels of guarantee so that lenders in the upper level of the structure earn low interest rates and lenders at the bottom of the structure earn higher interest rates. The lower lenders are in the structure, the less guarantee they have of...

Syndication is the process by which banks and investors join to make a loan to a company (creating a syndicate of banks). With their client, the banks define the characteristics of the loan and work on key points to enhance the project.

Derivatives allow anyone to buy a good or service that will be provided at a later date at a fixed price – despite, for example, changes in the price of raw materials or currencies (which are called "underlying assets").

Executing and clearing a financial transaction

How trading rooms play a central role in financing the economy?

Role of a corporate & investment bank