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Fixed Income Business

The principal activities of the KGI Securities Fixed Income Department include the trading of bonds denominated in various currencies and fixed-income products, the primary-market issuance and underwriting, and trading or market-making of derivatives such as interest-rate-based, bond-based, credit-related, convertible bond asset swaps, and other structured financial products. In addition, the 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 financial instruments 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 Brokerage Team to launch structured products linked to the domestic mutual funds, strictly selecting the underlying that features lower volatility and better earnings performance. The goal of Fixed Income Department is to enrich the product portfolio and meet the demand from 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 as well as US and China 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 2019. The underwriting amount of NT dollar-bonds in 2019 reached NT$ 39.4 billion, and the underwriting amount of foreign currency-denominated international bonds reached US$ 995 million. The underwriting team is committed to creating win-win situations for issuers and investors, and its efforts have been highly recognized by the clients, evidenced as its winning of the Best DCM House Award for 2020 from FinanceAsia, as well as the “Top Arrangers – Investors’ Choice for Primary Issues” from The Asset Benchmark Research Award in 2019. As for secondary-market bond market transactions, according to the statistics of the TPEx website, KGI Securities’ outright trading volume of Taiwan’s government bonds, Taiwanese corporate bonds, and financial debentures amounted to approximately NT$ 143.2 billion in 2019, representing one of the highest market shares among peers. In addition, KGI Securities also received awards from the competent authorities including Taiwan Central Bank and TPEx, which selected KGI Securities as The Best Primary Dealer and an Excellent Market Maker of Central Government Bonds in  2019, as well as the Asset Benchmark Research, which named KGI Securities as the Best Fixed Income Research House, Best Trader of Taiwanese Government Bonds, and Top Investment House in 2019.
 
Going forward, KGI Securities will continue to adhere to its sound management principles. KGI Securities will maintain its leadership position by providing the sound investment advice and products to customers, which will create the most value for its customers and shareholders.