This Case is about FINANCIAL MARKETS
PUBLICATION DATE: November 29, 2007 PRODUCT #: INS350-PDF-ENG
This case deals with attempts by HSBC, among the two biggest banks on earth by market capitalization, to develop a wholesale banking franchise that can effectively challenge those of leading worldwide bank rivals like Citigroup, along with dominant “monoline” companies like Goldman Sachs and Morgan Stanley.Â It emphasizes principal trading: loan syndication and project finance, loan securitization and credit default swaps, equity capital markets, debt capital markets, secondary market trading and other investment banking services for customers, along with the crucial aspects of wholesale financial intermediation and placement. Like most players in this marketplace, HSBC had some remarkable successes and failures, but on the whole didn’t succeed in breaking into the top ranks of international investment banks despite certainly having the resources to do that. Pupils should learn an excellent deal about the competitive dynamics of this sector by recognizing what it takes to triumph.