HSBC's fixed-income business offers a full range of services to both investors and borrowers in international capital markets. Our philosophy is to build long-term relationships with clients so we can fully understand and comprehensively meet their needs.
HSBC trades in all classes of domestic fixed income products, as well as euroyen bonds, ranging from government bonds, government guaranteed and government enterprises/agencies, zaito bonds, local government debt obligations, bank debentures, corporate bonds, and samurai bonds. We also trade in loans, trust certificates and shibosai bonds.
In addition to our market-making activities in the secondary market, HSBC serves as an underwriter in the primary market. With a distinguished global distribution network, we can actively make markets for illiquid securities, such as privately placed local-government obligations, corporate loans or bonds.
HSBC also trades credit derivatives in Japanese names. This increases our capability to make markets in illiquid products, and to provide liquidity in credit derivative products. Leveraging our global origination network, HSBC actively seeks opportunities to assist global issuers in accessing yen-denominated capital markets.
HSBC is the only international financial institution dealing in all 13 active Asian domestic bond markets and offering 24-hour trading in Asian bonds denominated in G7 currencies. This combination of local expertise and global presence, backed by a highly respected team of economic, credit and technical analysts, enables us to give unrivalled advice, access and liquidity to investors.
HSBC is a leading house for research and execution in all major markets for US and European government bonds and government agency bonds, as well as high-grade corporate bonds denominated in US dollars, euros, and pounds sterling. We also work closely with investors to develop solutions tailored to their specific investment needs.
HSBC provides solutions to various issuers throughout the world via the market for Euro Medium Term Notes (EMTN) and by proffering access to Japanese private-placement investors. HSBC is a global leader in the EMTN business. HSBC in Japan, in particular, is a major contributor to the services provided to HSBC's global issuer clients through the delivery of reverse inquiries.
We are a leader in arranging yen-denominated EMTN and private-placement products, thanks to our experienced team of professionals and nationwide investor coverage.
We offer a wide range of structured finance solutions to local investors and play an important role in providing yen-based, fixed income product capabilities to global clients. We not only arrange and sell structured-notes products, but also create liquidity for more illiquid instruments. Leveraging our global experience and knowledge, we have introduced a number of alternative investment products in recent years.
HSBC underwrites both loans and bonds denominated in Japanese yen for customers seeking finance from the domestic bond and syndicated bank loan markets. We also cater to customers' unique debt-financing requirements by helping to design and execute structured finance solutions.
The Debt Finance team is the focal point for all debt-finance services to customers. It comprises a skilled group of professionals with a long track record in bonds, syndicated bank loans, securitisation, tax leasing, and other structured finance products. The underwriting and distribution service for these syndicated and structured debt products is handled within the same team, giving customers a one-stop shop for debt products. In addition to providing underwriting capabilities in the onshore market, we also offer bond-issuance advice for customers who wish to access offshore bond markets in such currencies as the US dollar, euro and pound sterling.
With our strong presence and hands-on expertise in Asia, HSBC also advises on capital market issues in Hongkong dollars, Singapore dollars and some other Asian currencies to customers looking for viable financing and arbitrage alternatives.
We offer a wide range of alternative products, which utilise our global reach and research and investment capabilities. Hedge funds provide a historically low correlation to the conventional asset classes and a high-performance return to investors. Products with absolute return targets offer investors greater diversification. HSBC offers a Fund of Hedge Funds, Single Manager Fund and Private Equity Fund specialising in the markets of the Pacific Basin. Our capability allows us to provide the most appropriate product to each client through our intimate understanding of the client's needs and risk/return profile.