Innovative financing
opportunities in the global
capital markets
Presented by:
Aftab Q. Munshi
Chief Executive Officer
ALHabib Capital Market (Pvt.) Ltd.
Structure of presentation
• Identify innovative financing opportunities in
the global capital markets
• Raising funds through the global capital markets
• Global Meltdown – A quick review
• Case study from Pakistan
• Conclusion
Introduction – Innovation in
financial products
• Identify innovative financing opportunities available in
the global capital markets;
• Appreciate that these financial increased the debt
capacity of countries and firms alike;
Raising funds through the global
capital markets
(Benefits & Risks)
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•
•
•
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Equity Financing;
Debt Financing;
Hybrid Securities;
Securitizations of Assets;
Leveraged Finance;
Money Markets Products;
Remittance securitization;
Global Meltdown – Challenges &
Opportunities
• Types of mortgages:
– Prime Mortgages;
– Near-Prime Mortgages;
– Sub-Prime Mortgages;
Global Meltdown – Challenges &
Opportunities
• Root causes:– Lower lending standards;
– Easy credit;
– Providing mortgage loans to sub-prime borrowers;
– Excessive borrowing by financial institutions to
invest in structured financial products;
• Who bore the brunt?
– Private Equity;
– Investment & Commercial Banks;
Global Meltdown – Challenges &
Opportunities
• Preventing a systematic collapse:– Extra-ordinary steps taken by governments and
central banks;
Case study from Pakistan
• Economy of Pakistan
• Pakistan's linkage with the global capital markets
(Eurobond 2017, Eurobond 2036, Pakistan Islamic
Bond (Sukuk AL – Ijara), Global Depository Receipts,
Securitization of Remittances)
Conclusion
• Global capital markets are fast turning out to be a
very beneficial tool for developing countries to
address their liquidity needs and to bring themselves
on the radar of foreign investors. If implemented on
the sidelines of strict fiscal and monetary discipline, it
should allow developing countries to move on the
path of self reliance without compromising on their
economic sovereignty.
Q&A
Thank You