mufg sales toolkitrepo overview mainly used to borrow cash using securities as collateral...
TRANSCRIPT
Mitsubishi UFJ Securities (USA), Inc.
A member of MUFG, a global financial group
Demystifying Repo
VICTOR HIRSCH
Director | Rates
PAUL HERMAN
Executive Director | Rates
October 1st, 2015
1
MUFG
Be the world’s most trusted financial group
2
Mitsubishi UFJ Financial Group (MUFG) is one of the world’s leading financial groups offering a diversified range of services including:
Corporate and retail banking, investment banking, and corporate trust.
Strong foundation with over
140,000
employees2
8th largest in the world with
$2.3 trillion
in total assets1
Global network with
2,257
subsidiaries, branches, agencies,
and offices3
A World of Financial Strength
1As of 5 May 2015 2As of July 2014. Source: https://www.unionbank.com/Images/QA-MUFG.pdf 3As of September 2014. Source: MUFG Fiscal 2014 Interim Results Databook
Ratings profile
A
A+
A
A+
A+
A+
Group & Operating Companies
Mitsubishi UFJ Financial Group
Bank of Tokyo-Mitsubishi UFJ
Mitsubishi UFJ Securities Holdings
Mitsubishi UFJ Securities International plc
Mitsubishi UFJ Securities (USA), Inc
Mitsubishi UFJ Trust and Banking Corp.
Moody’s S&P Fitch
A2
A1
A3
A2
-
A1
-
A
-
-
A
A
438
Americas
locations
35
EMEA
locations
1,784
APAC
locations
3
A World of Financial Strength
Loan-to-Deposit Market Cap ($mm)
101,649 72.65%
Common Equity Tier 1
10.72% 12.08%
Tier 1 Total Capital
15.27%
Largest global banks by assets & deposits
Financial key figures and ratios
c.
Bloomberg and MUFG company filings. “Market Cap” as of 29 April 2015 (source: Bloomberg). “Loan-to-Deposit ratio” as of 31 December 2014 (source: Financial
Highlights under Japanese GAAP for 3rd Quarter of Fiscal Year Ending March 31, 2015). “Common Equity Tier 1”, “Tier 1” and “Total Capital” ratios are as of 31
December 2014 (source: MUFG Summary Reports - Risk-Adjusted Capital Ratios). Assets & Deposits as of 5 May 2015 (source: Bloomberg). CDS levels as of 18
March 2015.
55
60
65
70
75
80
85
90
95
100
105
Mid
levels
(b
ps
)
Banks by 5 Year CDS
5-year CDS level vs. global peer group
Rank Bank Assets ($MM)
1 ICBC 3,320,223
2 China Construction Bank Corporation 2,697,447
3 HSBC Holdings plc 2,634,139
4 Agricultural Bank of China 2,573,405
5 JP Morgan Chase & Co. 2,573,126
6 BNP Paribas 2,514,088
7 Bank of China 2,456,968
8 Mitsubishi UFJ Financial Group, Inc. 2,329,591
9 Barclays PLC 2,115,753
10 Bank of America Corporation 2,104,534
Rank Bank Deposits ($MM)
1 ICBC 2,506,138
2 China Construction Bank Corporation 2,077,951
3 Agricultural Bank of China 2,019,106
4 Bank of China 1,753,588
5 JP Morgan Chase & Co. 1,363,427
6 HSBC Holdings plc 1,350,642
7 Mitsubishi UFJ Financial Group, Inc. 1,240,121
8 Wells Fargo & Company 1,168,310
9 Bank of America Corporation 1,118,936
10 Unicredito Italiano SpA 993,197
4
Capabilities
Our focus on business collaboration and client relationships allows us to provide a wide range of products and services.
Mitsubishi UFJ Trust and
Banking Corporation (MUTB)
• Major trust bank in Japan
• Asset management and
administration, real estate,
stock transfer agency services
Mitsubishi UFJ Securities
Holdings Co., Ltd. (MUSHD)
• Global securities franchise
• Capital markets, derivatives,
securities sales & trading,
investor relations, and
corporate advisory
• Global broker/dealer
capabilities
• USD 98+ billion credit
portfolio in the United States
• Relationships with multi-
national companies outside
Japan; Fortune 1000 client
base in the United States as
well as expansion into sub-
investment grade markets
• Largest commercial bank in
Japan
• Deposits, private consulting,
consumer lending
Bank of Tokyo-Mitsubishi UFJ (BTMU)
Mitsubishi UFJ Trust and Banking Corporation (MUTB)
MUFG Union Bank
5
Capabilities: Corporate, Retail, and Investment Banking
Rates Credit Product Structured Product
Treasuries Commercial Paper ABS
Agencies Corporate CP Consumer Credit
Repo ABCP CLOs
Municipals CP Short Corporates
The securities business of MUFG: Short Term Products
Primary market
The Capital Markets Group originates and underwrites debt and equity financing transactions
through our global platform and the Structured Products team provides primary ABS and CLO
services.
Corporate & retail
lending business
MUFG is one of the leading corporate
lending banks with global reach, backed by
its position as Japan’s largest commercial
bank.
Bank of Tokyo-Mitsubishi UFJ
MUFG Union Bank
Mitsubishi UFJ Securities Holdings Co., Ltd.
• Debt capital markets
• Equity capital markets
• Derivative solutions
• Structured products
Secondary market
With markets experience across the globe, the trading desks, sales teams and research
analysts support institutional clients with the distribution of primary products and trade
execution.
• Rates
• Credit
• Equities
• Structured products
• Loan
syndication
• Structured
finance
• Project finance
• Asset finance
• Transaction
banking
6
• Considered Japan’s major trust bank offering high quality total
financial services for a broad range of customers
• Various commercial services to retail clients as well as asset
management, real estate, and stock transfer agency services
to institutional services
• Wholly owned subsidiary of MUFG
• Headquartered in Tokyo, 77 offices worldwide and 11,535
employees
• MUTB has USD 1.5 trillion in Trust Assets
30%
18% 18%
17%
9%
6% 2% Trust Asset Business
Corporate Business
Markets & Global Business
Retail Banking Business
Stock Transfer Agency Business
Real Estate Business
Other
• Retail banking business
• Corporate business
• Trust assets business
• Real estate business
• Stock transfer agency business
• Markets and global business
Banking function
Trust function
Corporate finance
Retail banking
Banking
Trust
Asset management
Asset administration
Real estate brokerage
Stock transfer agency services
Institutional
clients
Households
Business
Institutional
investors
Individuals
Companies
Organisations
Source of cash,
securities, real
estate etc…
Use of cash,
securities, real
estate etc…
Products Products
Services Services
Corporate
clients
Capabilities: Trust Assets
Company overview
Business description
Combining trust & banking functions to service clients
Business portfolio breakdown
Mitsubishi UFJ Trust & Banking Corporation
As of 31 March 2014. Source: MUTB Company Overview
For more information about MUFG and the securities business please see page 18 of this presentation.
7
Repo
8
Repo Overview
Mainly used to borrow cash using securities as collateral
Economically equivalent to an interest-bearing cash loan against securities collateral
The US repo market is composed of 2 segments:
• Bilateral repo
• Triparty Repo
Repo allows one firm to sell a security to another firm with a simultaneous promise to buy the security
back at a later date at a specified price
Repo Market Participants1
9
Why Use Repo?
Holders of Excess Liquidity
Who are the holders of excess liquidity
• Insurance Companies
• Asset Managers
• Pension Funds
• Corporates ~ already de-levered or are cash
rich and running high liquidity ratios
• Banking Institutions ~ institutions that were
less affected by crisis, high deposit bases
Attractions of Funding Trades for holders of
liquidity
• Risk Profile, form of secured lending
• Yield pick up ~ vs current returns on cash depo
• Specifically Tailored Solutions to suit needs ~
size, duration, collateral, structure
• Standardized documentation
Large portfolio holders of
liquid assets
Receivers of Excess Liquidity
Who are the receivers of excess liquidity
• European bank entities, investment banks and
commercial banks
• US Bank broker dealer entities
• International bank entities and securities firms
Attractions of Funding Trades for holders of liquidity
• Address liquidity needs
o Structural ~ duration and diversification
o Outright ~ access for funding markets, illiquid
assets
• Fulfill on-going regulatory requirements
10
Why Use Repo?
Funding Structures
Benefits of Funding Structures
• Secured Credit Risk ~ collateralized to mitigate credit risk, collateral type and haircut parameters are pre-agreed
• Overcollateralization ~ via haircuts
• Specific tailoring to suit needs ~ maturity, collateral type, currency and interest
• Cash Investment Mechanism ~ provides yield pick up vs. cash depo
Structure Types
• Repo ~ bilateral
• Triparty
• Yield enhancement trades ~ European government bonds vs. high grade assets
• Long term repo solutions
• Cross Currency repos
Maturity Types
• Bullet maturity ~ can be bilateral or Triparty with a fixed maturity date
• Extendible ~ trades with the option to extend the maturity date at set agreed intervals
• Evergreen ~ an evergreen trade remains open until either party to the trade wishes to close it out, at which point
the trade declines in maturity from the pre-agreed number of days to zero
11
Repo Group – Funding Structures
One party sells securities with a simultaneous agreement to
buy back at a later date, at the same price plus the repo
interest
Returns ~ buyer of securities invests cash for a set term at
an agreed upon interest rate, the “repo rate”
Maturity ~ typically from overnight to 1 year; longer tenors
can be investigated and can be up to 10 years
Credit Risk ~ in addition to counterparty secured risk, over-
collateralization from haircuts, daily margin
Seller
Seller
Buyer
Buyer
Repo Agreements – Bilateral
Initial Exchange
Final Exchange
Collateral
Cash
Collateral
Cash + Repo Rate
12
Repo Group – Funding Structures
A triparty repo provides additional benefits to both parties, in
particular the Buyer
Triparty Agent ~ independent capacity fulfils role of
custodian, valuation, reporting and daily margining
Collateral ~ Triparty Agent handles substitutions in
accordance with pre agreed collateral criteria, monitoring and
margining on a daily basis
Automation ~ low administration vs bilateral trades
Seller
Seller’s
Triparty
Account
Buyer
Buyer’s
Triparty
Account
Repo Agreements – Triparty
Triparty Repo Agreement
Cash
Collateral
Triparty Agent
Flows shown are the Day 1 Exchange –
flows reverse at Final Exchange
13
Repo Market
Assets Liabilities
Reverse Repo Repo
$ billions % $ billions %
De
ale
r R
ep
o Triparty (total) 305 13% 1,839 54%
exGCF - 0% 1,534 45%
GCF 305 13% 305 9%
Fed - 0% - 0%
Bilateral 1,945 82% 1,576 46%
Dealer Total 2,250 95% 3,415 100%
No
n
de
ale
r
Re
po
Triparty (total) 127 5%
Fed 127 5%
Nondealer Total 127 5%
Grand Total 2,377 3,415
Collateral Composition in the Triparty
Repo Market ($ Billions)1
Outstanding Daily US Repo and Reverse
Repo, by Underlying Segment2
14
Legal Documentation
Repo structured legally as simultaneous agreement between counterparties to engage in a sale of securities on an initial
date, with a repurchase of the securities by the initial seller at a later date
US repo transactions typically documented with:
• SIFMA’s Master Repurchase Agreement
• SIFMA/International Capital Markets Association’s (ICMA) Global Master Repurchase Agreement
• Customized agreement
Generally, terms in repo agreement provide for certain rights of ownership to be “synthetically retained” by the seller
15
Securities Lending
16
Securities Lending Overview
Market practice by which securities are transferred temporarily from one party, a securities lender, to another, a securities
borrower, for a fee
Transfer is secured by collateral which can be cash, another security, or another form of financial commitment
Securities lenders seek out securities lending services in order to obtain incremental revenue
Securities borrowers often engage in such transactions to cover short sales, remedy failed trades, or hedge risks
Borrowed securities may be reused in other securities lending or repo trades
Attributes of securities loan:
• Counterparty
• Securities on loan
• Tenor
• Collateral type
• Haircut
• Lending or rebate fee
In the US, a Master Securities Loan Agreement (MSLA) is typically used to set out legal rights and obligations of parties in
securities lending transactions
17
Securities Lending Market
Lendable Assets Securities on Loan
Lendable Assets and Securities on Loan (As of 1Q 15)1
18
Contact Information
Victor T. Hirsch
Director | Rates
+1 212-405-7475
Paul Herman
Executive Director | Rates
+1 212-405-7478
19
MUFG
Heritage, History, and Structure
20
Heritage
2000
Bank of Tokyo-Mitsubishi, Mitsubishi Trust
Bank and Nippon Trust Bank merged into
Mitsubishi Tokyo Financial Group.
Basic agreement reached on the integration
of Sanwa Bank, Tokai Bank and Toyo Trust
Bank through the establishment of UFJ
Holdings.
2005
MUFG was formed through
the merger of Mitsubishi
Tokyo Financial Group and
UFJ Holdings.
1656
Konoike Money Exchange
(later Sanwa-Bank) was
founded in Osaka.
1927
Koyata Iwasaki founded and
led Mitsubishi Trust among
the rapidly growing Mitsubishi
group companies (electric,
heavy industries etc.) until the
ultimate Mitsubishi Holding
Company was eventually
dissolved after WWII.
1880
Yokohama Specie Bank (later: Bank of
Tokyo) was founded.
Yataro Iwasaki established the Mitsubishi
Kawase-ten, a financial exchange house. In
1885, Mitsubishi took over the management
of the 119th National Bank and formally
entered the financial services industry,
adopting the name Mitsubishi Bank in 1919.
1996
The Mitsubishi Bank, Ltd.
and The Bank of Tokyo, Ltd.
merged under the new
name of Bank of Tokyo-
Mitsubishi, Ltd.
Adapted from http://www.bk.mufg.jp/global/aboutus/origins/index.html
21
Heritage
Mitsubishi Keiretsu
The Mitsubishi Keiretsu is a large collection of independent companies, sharing a common
heritage, and in many cases carrying the Mitsubishi name and logo.
There is no controlling company, rather the individual members own shares in each other and
they will cooperate where practical to do so.
There is a monthly meeting between the top 25 members, of which MUFG provides three, as
well as one of three co-chairmen.
Top 25 members
• Asahi Glass
• The Bank of Tokyo-Mitsubishi UFJ
• Kirin Brewery
• Meiji Yasuda Life Insurance company
• Mitsubishi Corporation
• Mitsubishi Aircraft Corporation
• Mitsubishi Electric Corporation
• Mitsubishi Estate Co.
• Mitsubishi Heavy Industries
• Mitsubishi Materials Corporation
• Mitsubishi Logistics
• Mitsubishi Motors
• Mitsubishi Paper Mills
• Mitsubishi Plastics
• Mitsubishi Rayon Co.
• Mitsubishi Research Institute
• Mitsubishi Shindoh Co.
• Mitsubishi Steel
• Mitsubishi UFJ Trust and Banking
• Mitsubishi UFJ Securities Holdings
• Nikon Corporation
• Nippon Oil Corporation
• NYK Line
• P.S Mitsubishi Construction Co.
• Tokyo Marine & Nichido Fire Insurance
Founded by Yataro Iwasaki in the 19th century
and originally built around the shipping industry,
the Mitsubishi Keiretsu has grown and evolved
over the years to cover sectors as diverse as
aviation, electronics and finance.
While there is no binding obligation to maintain
friendship, the companies have continued to
work together, united by their shared history.
22
Recent history
2008
• MUFG and Morgan Stanley implemented their strategic and capital alliance, and MUFG invested USD 9
billion in Morgan Stanley
• UnionBanCal Corporation was made a wholly owned subsidiary of BTMU
2010
• MUFG bought USD 5.35 billion worth of project-finance assets from Royal Bank of Scotland
2011
• The integrated Global Business (MUFG Global) was established at MUFG
2012
• The Integrated Global Markets Business Group was established at MUFG alongside the existing four
integrated business groups for Retail Banking, Corporate Banking, Global, and Trust Assets
2013
• BTMU took a majority stake in Bank of Ayudhya Public Company Limited (Krungsri), Thailand’s fifth
largest bank in terms of assets, loans and deposits1
2014
• UnionBanCal Corporation and Union Bank were renamed as MUFG Americas Holdings Corporation and
MUFG Union Bank, N.A., respectively
2015
• Mitsubishi UFJ Asset Management Co., Ltd. and KOKUSAI Asset Management Co., Ltd. merged to form
Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
MUFG remained strong through the financial crisis and has continued to use strategic acquisitions to grow and
broaden its global reach.
Adapted from MUFG Corporate Review 2014 1Source: Bank of Ayudhya Public Company Limited Factsheet
23
Organizational Structure
24
The Securities Business of MUFG
Five key business lines:
Capital Markets
Credit
Rates
Equities
Structured Products
25
Mitsubishi UFJ Securities
Investment banking platform
U.S. (250+ professionals)
• Capital markets team of 44
professionals providing debt
capital markets (DCM) & equity
capital markets (ECM) services
• Full service institutional sales and
trading team of 92 professionals
covering credit, US interest rates,
repos and other related products
• Structured products team of 13
professionals providing primary
and secondary services in ABS
and CLO products
• An experienced capital
markets team of 41
professionals providing DCM
and derivative solutions to
EMEA issuers
• Full service institutional sales
and trading team serving the
equity, rates, repo, convertible
bond and credit markets
• Dubai: Capital markets
origination team serving issues
from the Middle East
• Full service sales and trading
team of 48 professionals
providing Asian equity, credit,
rates and structured product
• Top capability in debt capital
markets, supported by a strong
research platform
• Sydney: Capital markets
service provided across
Australia and New Zealand
New York
London
Hong Kong
Singapore
San Francisco
Dubai
Sydney
Houston
Tokyo1 Beijing3 Geneva2
1 Mitsubishi UFJ Securities Holdings & Mitsubishi UFJ Morgan Stanley Securities 2 Mitsubishi UFJ Wealth Management Bank 3 Representative office
EMEA (600+ professionals) APAC (100+ professionals)
• Global integrated securities
platform offering an
enhanced suite of products
to meet the needs of the
MUFG client base
• Five key business lines:
capital markets, credit, rates,
equities and structured
products
• Institutional sales force in
each of the key global
financial centres with access
to retail investors in Japan
and the US via MUFG Union
Bank
Business description
• Strategic partnership and
capital alliance with Morgan
Stanley (22.4% stake in Morgan
Stanley)
• Mitsubishi UFJ Morgan Stanley
Securities (MUMSS) provides
investment banking, sales and
trading, and wealth
management capabilities
• Through MUMSS, the global
platform has access to the
Japanese market
Japan (4,600+ professionals)
26
Danone
EUR 1.3 billion
FRN due 2020
1.125% Notes due 2025 Bookrunner
January 2015
Daimler Finance North
America
USD 3 billion
FRN Notes due 2017,
2018
1.650% Notes due 2018
2.250% Notes due 2020 Joint Bookrunner
February 2015
AusNet Services
EUR 560 million 1.500% Notes due 2027
Joint Bookrunner
February 2015
Golden Agri-Resources
SGD 125 million
5.5% Note due 2018 Joint Bookrunner
April 2015
Valero Energy
Corporation
USD 1.25 billion 3.650% Notes due 2025
4.900% Notes due 2045
Joint Bookrunner
March 2015
BP
EUR 2.5 billion 1.109% Notes due 2023
1.573% Notes due 2027
Joiint Bookrunner
February 2015
Africa Finance Corp.
USD 750 million
4.375% Notes due 2019 Joint Bookrunner
April 2015
IBM
USD 2 billion
FRN Notes due 2018
1.125% Notes due 2018 Joint Bookrunner
February 2015
Actavis Technology, Inc
USD 5.1 billion 5.50% Mandatory
Convertible
Co-Manager
February 2015
Actavis plc
USD 4.2 billion
Follow-on Offering
Co-Manager
February 2015
Derivative solutions
MUFG’s Derivative Solutions Group (DSG) is integrated within the
Capital Markets department and provides risk management solutions
for our corporate client base.
DSG offers both fixed income and equity solutions, and during the
past four years, MUFG has established itself as a top five market
counterparty in volume in USD swaps.
Capital Markets
Debt capital markets
MUFG is consistently a global leader in debt capital market
transactions across a variety of currencies. DCM leverages MUFG’s
strong banking relationships with corporates across industries and
services these clients’ fixed income needs.
The DCM group works with investment grade and high yield
companies to offer bespoke services and direct multi-currency access
to the international capital markets.
Equity capital markets
MUFG is a key player in the global equity and equity-linked
businesses, underwriting and executing initial public offerings of
common stock, follow-on offerings, convertible securities and flexible
offerings of equity securities.
MUFG’s global distribution platform reaches not only institutional
clients, but actively penetrates the retail marketplace for equity
offerings, with retail placement consistently exceeding underwriting
commitment.
Highlighted global capital markets transactions
27
MUFG Select Commercial Paper Mandates
28
Sales and trading
The Credit Trading & Sales team operates on a global platform with trading desks in New York, London, and
Hong Kong. Our international presence allows us to service clients globally and seamlessly over each 24-hour
trading day. MUFG has trading expertise which spans all the major liquid corporate and bank sectors. Currently,
the international securities business covers global investment grade, high yield, and emerging markets credit.
Our significant presence in electronic trading ensures consistent and timely execution of all client corporate bond
trades. The team also works closely with the Capital Markets Group to distribute primary products.
We pride ourselves on
providing high quality
market-making services to
clients in the international
credit markets.
Our trading desks, sales
teams, and research
analysts are organised
around supporting the new
issue franchise and our
investor clients.
Number of traded clients
Research / strategy
The Credit Research and Strategy team follow a wide range of debt issuers in both corporate and financial
markets. Analysis is distributed daily to counterparties in Europe, Asia, and the Americas. MUFG credit
strategists in Europe, Asia and North America maintain active views on over 500 debt issuing corporates and
financial institutions, including both investment grade and high yield issuers.
Credit
0
200
400
600
800
1000
1200
1400
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2009 2010 2011 2012 2013 2014 2015
As of 31 January 2015.
29
Rates
Sales and trading
The Rates Sales & Trading Group operates on a global
platform with trading desks in New York, London, and Hong
Kong. The team operates a multi-currency swaps desk with
quantitative and execution capability, with activity in G4
swaps and volatility products.
The desk has a host of services in cash bond desk trading in
government, agency, supranational and sovereign debt.
The Rates team also offers bespoke derivatives to enable
client-tailored solutions for corporate clients hedging through
the Derivatives Solutions Group.
The Repo desk, with wide-ranging market access, provides
funding support and collateral optimisation for the rates
business through an effective synergy.
The Rates Trading team has extensive expertise in multi- currency trading in a vast range of interest rate products including swaps,
bonds, options, and repo.
The Rates Sales team provides coverage to a variety of accounts ranging from institutional asset managers to leveraged funds, pensions,
and central banks.
Volatility
• Caps
• Floors
• Swaptions
Repo
• Buy/sell back
• Securities lending
• Financing solutions
• Triparty/bilateral
Bonds
• JPY – JGBs, Bills Euro-Yen
• USD – UST, agencies,
supranational/sovereigns
• EUR – European
governments
• GBP – Gilts
Swaps
• Vanilla interest rate
swaps
• Currency swaps
• Basis swaps
• Structured/amortizing
swaps
Product Coverage
30
Convertible bonds
With teams in London, Hong Kong, and New York, we provide high quality primary distribution for the capital
markets’ business as well as secondary execution on a wide variety of convertible bonds in multiple regions.
Our strength in trading is complimented by provision of insightful research covering equities, economics, and
strategy.
Our equities business
incorporates sales, trading,
and research capabilities
across three broad product
groups: cash equities,
convertible bonds, and
equity derivatives.
In addition to being a global
service leader in the
Japanese equity market, the
group also provides
investors with access to
other Asian, US, and
European markets.
Equity derivatives
We provide both pricing and trade management capabilities for our equity solutions business, assisting corporate
customers with their financing and hedging needs using tailored equity derivatives.
Equities
Cash equities
We provide Japanese corporates with easy access to other equity markets across the globe.
In the US we work closely with BTMU and Union Bank clients to execute corporate share buy back programmes.
We also have the capability to assist clients with at-the-market stock issuances, providing maximum flexibility
with no minimum volume restriction.
We execute and trade Asian equities, primarily for Japanese institutional investors, while offering excellent
corporate access via our extensive Asian bank network.
31
Structured Products
The Structured Products & Sales Group offers our clients a variety of structured products and tailor made financing and hedging
solutions. It operates in all regions across and is active across all major asset classes.
Structured Products
& Sales
Japan
Structured Products
Americas
Structured Financing &
Structured Products
This new team provides
tailor made solutions to
financial institutions and
investors, and
specialises in tailor
made financing
solutions across asset
classes
EMEA
Structured Financing &
Structured Products
The Japan Structured
Business group
structures cross asset
class investment
products distributed in
Japan. They arrange
Uridashi and private
placements issued
internally or by third
parties
Asia (ex. Japan)
Structured Financing &
Structured Products
The Asian Structured
Business group
provides cross asset
class investment
products to Asian
investors, as well as
tailor made financing
and hedging solutions
Americas
Securitization
The US Structured
Business group was
established in 2013 to
focus on originating,
structuring and
distributing ABS and
CLO transactions. It is
already a leading
arranger in the US.
The European
Structured Business
group provides cross
asset class investment
products to European
investors, as well as
tailor made financing
solutions across asset
classes
Structured Trading
Our Structured Trading desk plays an integral role in our Structured Products strategy by providing our international clients with structured
interest rates, FX, credit as well as cross asset class trading capabilities
32
MUFG Structured Products Team
• MUFG’s Structured Products Group is focused on
originating, structuring and distributing ABS and CLO
transactions for issuers
• Headed by Tricia Hazelwood, the group has
expanded recently through the hiring of several
key industry professionals
• The Structured Products Group’s mandate is to
focus on:
• Prime Auto - Loan, Lease, Dealer Floorplan
• Other Auto - Fleet Lease, Rental Car
• Credit Card - Bank, Retail
• Equipment - Loans and Leases for Small
and Large Ticket Equipment, Transportation,
Construction/Agricultural, Dealer Floorplan
• Big Metal - Aircraft, Container, Railcar
• Other - Utility/Energy, Cell Tower, Contract
Monetization's, Future Flows (i.e., DPR’s),
Stranded Cost, Equipment Installment Plans,
Tax Credits, Timeshare, Whole Business
• To date, MUFG has lead managed 22 ABS
transactions and 5 CLO transactions as well as
co-managed over 80 ABS transactions and 12
CLO’s
• MUFG will be an active lead and co-manager in
future ABS and CLO transactions
• The Structured Products team is comprised of
professionals who have tremendous experience in
structuring and distributing ABS and CLO products
2014-2015 YTD
Lead Managed Platforms
33
• Credit Strategy – follows a wide range of debt issuers in corporate and
financial sectors, in developed and emerging markets
• Equity Research – offers unparalleled coverage of Japan’s equity markets
• Economic Research – analyses the global economic outlook, focusing on
markets in which we are active
Research and strategy
Insight and analysis on various markets across a number of geographies.
Achievements
• Brendan Brown voted best forecasting economist for Japan in 2011
(Bloomberg LP)
• US rates strategist John Herrmann ranked number two among
forecasters of US economy and interest rates (Bloomberg LP)
• 11 Japanese equity analysts who are ranked in the top 5 of their sectors
(Nikkei Veritas, March 2014)
Our research and strategy website is an online portal enabling clients to
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Disclaimer
DISCLAIMER
This presentation has been prepared by a subsidiary of Mitsubishi UFJ Financial Group, Inc. (“MUFG”) which carries on a securities related business.
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The securities related businesses within the MUFG (together referred to in this presentation as “Mitsubishi UFJ Securities”) are: (1) MITSUBISHI UFJ SECURITIES INTERNATIONAL PLC (“MUSI”) which is authorised in the United Kingdom by
the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority (“FCA”) and the PRA (FS Registration Number 124512). MUSI has a branch office that is registered at Level 3, East Wing, The Gate, Dubai
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regulated by the Dubai Financial Services Authority (Reference Number F002623); (2) MITSUBISHI UFJ SECURITIES (USA), INC. (“MUS(USA)”) which is registered in the United States with the Securities and Exchange Commission (“SEC”)
and regulated by the Financial Industry Regulatory Authority (“FINRA”) (SEC# 8-43026; CRD# 19685); (3) MITSUBISHI UFJ SECURITIES (HK), LTD (“MUS(HK)”) which is incorporated in Hong Kong, licensed under the Hong Kong Securities
and Futures Ordinance and regulated by the Hong Kong Securities and Futures Commission (Central Entity Number AAA889). MUS(HK) has an office in Australia, Mitsubishi UFJ Securities (HK), Limited ARBN No. 169 329 453, which is
registered at Suite 16 & 52, Level 36 Gateway, One Macquarie Place, Sydney, Australia. In respect of the financial services provided to wholesale clients in Australia, MUS(HK), MUSI, MUS(USA) and Mitsubishi UFJ Securities (Singapore),
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which differ from Australian laws; and (4) MUSS which is licensed as an approved merchant bank by the Monetary Authority of Singapore.
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This presentation is for information purposes only and should not be construed as investment research or a solicitation of any offer to buy or sell any security, commodity, futures contract or related derivative (hereafter “instrument”) or to
participate in any trading strategy. This presentation does not constitute a personal recommendation and does not take into account the individual financial circumstances, needs or objectives of the recipients. Recipients should therefore seek
their own financial, legal, tax or other advice before deciding to invest in any of the instruments mentioned in this presentation.
Certain information contained in this presentation has been obtained or derived from third party sources and such information is believed to be correct and reliable but has not been independently verified. Mitsubishi UFJ Securities does not make
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information may not be current due to, among other things, changes in the financial markets or economic environment. Mitsubishi UFJ Securities has no obligation to update any such information contained in this presentation.
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Disclaimer
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criteria for these terms should act upon this presentation.
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Mitsubishi UFJ Securities also relies on local registrations or regulatory exemptions in order to undertake certain securities business in other countries. In Thailand, MUSI has a derivatives dealer registration with the Securities and Exchange
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