Macroeconomic Variables Impact on GDP

The difference in interest rates between AA-rated bonds and Treasury bonds, indicating the added risk investors demand for the AA bonds.

A unit of percentage change, equal to 1/100th of a percent (0.01%).

Monetary policy that slows the growth of the money supply to control inflation, often by increasing interest rates.

Monetary policy that increases the money supply to stimulate economic growth.

Shareholders face the greatest risk in a company because their potential return is last in line behind prioritized debts and liabilities.

A financial institution that facilitates transactions between savers and borrowers.

The first sale of a company's stock to the public.

Advantages for companies that sell stock to the public, including increased capital, publicity, and potential for owner exit.

Bonds are less risky than stocks because bondholders have a contract guaranteeing repayment, while shareholders are last in line if a company fails.

A distribution of a portion of a company's profits to its shareholders.

A fixed payment made to bondholders at regular intervals by the issuing company until maturity.

Companies prefer issuing stocks to fund growth and projects, as stockholders are investors and not creditors.

Higher risk investments (like stocks) are expected to generate higher returns compared to lower risk options (like bonds).

Return on investment (ROI) from a stock is calculated by taking the total return (price change + dividends) & dividing by the initial investment cost.

A bond ROI calculation considers both coupon payments and price difference at maturity to determine overall return.

To gain financing, and distribute risk among investors - grow capital, decrease company debt compared to equity.

JP Morgan ($13,369.87M), Goldman Sachs ($11,715.04M), and Morgan Stanley ($9,316.04M) were the top three investment banks by fees in 2021.

JP Morgan's fees in 2021 were distributed as follows: 33% M&A, 24% Equity, 22% Bonds, and 21% Loans.

Goldman Sachs' fees in 2021 were distributed as follows: 42% M&A, 33% Equity, 16% Bonds, and 21% Loans.

Morgan Stanley's fees in 2021 were distributed as follows: 37% M&A, 37% Equity, 18% Bonds, and 8% Loans.

Goldman Sachs ($1.705B), JP Morgan ($1.258B), and Morgan Stanley ($1.204B) were the top three in M&A deal values in 2021.

Goldman Sachs ($134.5M), Morgan Stanley ($117.9M), and JP Morgan ($109.1M) were in top 3 for equity in 2021. A significant percentage of deals were IPOs.

JP Morgan ($596.2M), Citi ($454.4M), and BofA Securities ($453.5M) were the top three in bond deals in 2021. Investment grade bonds were prominent.

Top 3 Investment Banks loans fees in 2021 are not provided.