Fixed Income Business

  • 2018/FinanceAsia, Best DCM House
  • 2018/The Asset Magazine’s Asian Local Currency Bond Benchmark Review: #1 Top Bank in Bond Research, #2 Top Taiwan’s Bank in Government Bonds, #3 Top Taiwan’s Bank in Corporate Bonds, and #2 Top Taiwan’s Bank Arrangers in Corporate Bonds

The principal activities of the KGI Securities fixed income department includes the outright or conditions-attached trading of bonds denominated in various currencies and fixed-income products, the primary-market issuance and underwriting, and the processing of the transactions of such derivatives as interest-rate-based, bond-based, credit-related, asset swaps, and other structured financial products. In addition, KGI Securities fixed income department is engaged in foreign exchange spot and derivative transactions.

In terms of business strategy, KGI Securities continues to cultivate its primary issuance business. In addition to serving domestic corporate issuers, it also introduced high-quality foreign enterprises to issue bonds in Taiwan, providing diversified investment targets to investors, and actively playing the role of market-maker in secondary bond transactions to boost market liquidity. Regarding the derivatives business, it has strengthened the function of product development and design within the KGI Securities in recent years, and cooperated with the sales unit to launch structured products linked to the domestic mutual funds, strictly selecting targets featuring better volatility and earnings performance. The goal is to enrich the product portfolio and meet the demand for various channels to enhance customer coverage. In addition, KGI Securities will continue to cultivate a full range of fixed-income talents, actively delve into the R&D and innovation of various financial products, and provide fixed-income research in the form of daily reviews and weekly reports of the Taiwan bond market, while enhancing interaction and cooperation with various domestic institutional investors.

The performance of KGI Securities’ fixed income business continued to lead the market in 2018. The underwriting amount of NT dollar-bonds in 2018 reached NT$43.9bn, and the underwriting amount of foreign currency-denominated international bonds reached US$3.32bn. Combined, the total underwriting amount of domestic and international bonds was approximately NT$145.9bn, for a market share of 9.86%, the highest among domestic peers. As for secondary-market bond market transactions, according to the statistics of the TPEx website, KGI Securities’ outright buying and selling of Taiwan’s government bonds, Taiwanese corporate bonds, and financial debentures amounted to approximately NT$178bn in 2018, with a leading market share of 10.05%. In addition, KGI Securities also received awards from the competent authorities and professional financial media, including TPEx, which selected KGI Securities as an Excellent Market Maker of Central Government Bonds in the first half of 2018, the FinanceAsia, which named KGI Securities as the Best DCM House in 2018, and the Asset Magazine, which awarded KGI Securities the Top Sellside firms in research - TWD Top Sellside firms in the secondary market - Government bonds - TWDTop arrangers – Investors’ Choice for primary issues - corporate bonds - TWD These awards indicate that KGI Securities’ commitment to providing financial professional services has been recognized.

Going forward, KGI Securities will continue to adhere to its sound management principles. We expect it 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.