字級縮小
字級縮小
字級放大
字級放大

Fixed Income Business

Amid an extremely competitive environment in 2016, the Fixed Income Department demonstrated a strong and balanced performance in all business areas. With the deregulation policies of the authorities, KGI was the first among Taiwanese peers to join in the USD bond offerings of the Bank of Communications Co., Ltd. Hong Kong branch, and kicked off its underwriting business under the OSU platform in 2015. In 2016, the Department continued devoting itself to the onshore international bond market to provide domestic investors with a variety of fixed income products. Some issuers came from outside the financial sector, such as corporations like Apple, which issued its first 30-year callable bonds in Taiwan, demonstrating the wide coverage of international issuers by the Department. In addition, the Department acts as an active market maker in the secondary bond market. Furthermore, the Department also coordinates applications for non-NTD spot, forward and swap trading licenses, making KGI the first securities company to enter the foreign exchange business.
 
In 2016, divergent economic development in different regions and numerous uncertain events around the world made macro trading challenging. Although the Fed announced in 4Q 2015 that it would raise rates steadily, it closely monitored the global economy and eventually only raised rates once in 2016. The unexpected Brexit in mid-2016 also resulted in financial market volatility. The GBP fell to a new 31-year low, and the Bank of England cut rates for first time in seven years.
 
Moreover, after Hillary Clinton looked poised to win the US presidential election against Donald Trump according to polls, as Trump’s speeches and policies became unpredictable, markets all over the world were shocked by his victory. Nonetheless, KGI Securities had an excellent performance in the bond and derivatives business. In 2016, KGI was awarded the “Best Domestic Bond House” in Taiwan by FinanceAsia’s 20th Anniversary Platinum Awards and the “Triple A Country Award Best Bond House – Domestic” by The Asset. It was also named the “Top Bank in the Secondary Market in Asian Local Currency Bonds for Government Bonds” and “Top Bank in the Secondary Market in Asian Local Currency Bonds for Corporate Bonds” in Taiwan by The Asset Benchmark Research. In addition, KGI was given the “Best Government Bond Market Maker” award in 2016 by the Taipei Exchange. In addition, KGI was given the “Best Government Bond Dealer” awarded by Taiwan’s Central Bank in 2016.
 
In 2016, KGI ranked first among peers, with a 15.3% market share in the domestic and international corporate bonds underwriting business, and ranked second in the local principle guaranteed structured product market, with a 23.9% market share. Also, the convertible bond asset swap business ranked second, with a 24.6% market share.
 
KGI Securities has persistently improved its customer service and expanded its client base by providing customized products to satisfy the varied needs of clients. It continues to cultivate comprehensive talents and aggressively penetrate financial markets via product R&D and innovation. KGI Securities has maintained close cooperation with large domestic enterprises, providing them with daily bond market commentaries, as well as weekly market news on various products. It also holds investment seminars and training sessions in timely fashion to supply comprehensive financial market information. Given its extensive underwriting experience and CDF’s abundant resources in the Greater China region, KGI Securities is capable of providing all-round financial services and assisting companies in fund raising in the bond markets.
 
Going forward, KGI Securities will continue to adhere to its sound management principles. It will strive to maintain its leadership position by providing the best investment advice and products to customers, and by sticking to its core principles of integrity, professionalism and innovation, which will create the most value for its clients and shareholders.