Acting through our worldwide network, the Fixed Income division delivers services and financial products in both primary and secondary markets to fulfill our customers’ diverse requirements. We deal with conventional domestic and overseas bonds and their derivatives, bonds issued or guaranteed by the Japanese government, zaito bonds (fiscal institution and loan program bonds), regional government bonds and corporate bonds. We also develop and market new financial products such as hybrid products that combine multiple financial products and elements (e.g. foreign exchange, equities, and commodities) and financial instruments (e.g. interest rates). Other elements include real estate finance, leveraged loans and structured finance (e.g. securitized paper), credit default swaps and CDOs (collateralized debt obligations).

We have the unparalleled advantage of accessing customers and markets worldwide through Citigroup’s global network, with its world-leading product development and trading capabilities, in tandem with Nikko Cordial’s domestic network connecting Japanese customers and markets. Drawing on this powerful advantage, our Fixed Income department can respond to all needs and requests from financial institutions and corporations in Japan and abroad.
As one of the few global investment banks with the capability to access both international and domestic customer channels, we provide value-added financial services that receive high praise from our customers.

The Fixed Income division harnesses Citigroup’s research services, regarded as some of the best on Wall Street, including the World Government Bonds Index and World BIG Index. Customers value the provision of research reports and index data through ‘Fixed Income Direct Japan’ and our portfolio analysis service using NBA (Nikko Bond Analysis) and Yield Book. NBA offers popular portfolio management (including structured bonds and foreign bonds), as well as total risk management and analysis services. There is a high degree of interest in these tools, particularly from clients seeking advice on new BIS.

Our Sales and Trading divisions have established a leading position and achieved excellent results within the industry. For the past several years we have been recognized as ‘Best foreign bonds dealer in Japan’ from an independent rating organization. We are also ranked highly in underwriting Japanese government bonds, government guaranteed bonds, zaito bonds, regional government bonds, Japanese corporate bonds, Samurai bonds, Euro yen bonds, and others. The results of a poll by the influential economic daily Nihon Keizai Shimbun showed that issues for which we were the main underwriters received awards for best deal in the Domestic Straight Bonds and Samurai Bonds markets. Also, in a customer survey conducted by AsiaRisk magazine in 2005, we received “top in the industry” awards in the following areas: yen interest-rate swaps, yen interest-rate options, yen interest-rate exotic products, currency swaps (against yen), currency exotic products (against yen), yen credit default swaps, credit linked bonds, and synthetic CDOs.