SHINSEI SECURITIES | Products & Services

(*Notes)
Fees and other important disclosures pursuant to Financial Instruments and Exchange Law of Japan
Please be aware that there are various risks and fees may be incurred for securities investments.

— Securitization Division —

Securitization has been the core business in the Shinsei group for years and the Securitization Division is well positioned in a market to arrange new structures by utilizing high financial technology and provide added-value securitization products with investors and originators.

<Products Lineup>

Securitization of Monetary Claims (ABS):Back assets are Credit Card Loans and Lease Loans.
Residential Mortgage Backed Securities (RMBS):The cash flows come from residential debt such as residential mortgages and housing loans.
Commercial Mortgage Backed Securities (CMBS):The security its cash flow comes from non-recourse loans of commercial mortgages, offices, shopping centers, hotels and so forth.
Whole Business Securitization (WBS):Securitization of future cash flows to be generated by operating businesses.
Covered Bond:The bonds to be issued based on credit enhancement on the grounds of synergies between issuers and the pool of well performed assets.

Shinsei Covered Bonds: Concept

— Product Solutions Division —

<Products with high added value>

The Product Solutions Division utilizes derivative techniques to deliver high added-value services. We offer a broad range of products, from principal-protected to high risk and return, and structure and provide products for asset management, risk hedging, financing, and various other needs. We are facing to Financial Institutions who wish to invest in added-value products or seek to generate earnings from option and market movements, and retail customers who are interested in structured notes. We also provide corporate customers with equity related balance sheet solution.

<Products and Services>

Exchangeable Bond
Index Linked note
Equity Swap
Index or tailor-made baskets
Stock lending and borrowing

Products and Solutions

— Product Solutions Division —

< Providing Interest Rate / Foreign Exchange products through Medium Term Notes Program >

The Product Solutions Division offers solutions to institutional investors and retail customers centered on MTNs (medium-term notes), which makes it possible to issue bonds efficiently. We originate and introduce investment products that meet the needs of various customers by compounding, as needed, derivatives linked with interest rates and exchange rates into bonds issued by domestic and overseas issuers, including Shinsei Bank. We also respond to funding and the hedging needs on a case-by-case basis.

Sample Structure

— Product Solutions Division —

Our Product Solutions Division provides a wide range of mutual funds, which give investors access to various regions/markets and asset classes.

<Products lineup>

In addition to equities and fixed-income linked funds, we offer the funds that invest in alternative assets, such as hedge funds. These funds give investors access to a range of markets depending on the individual funds criteria and objectives. From among these products and given the prevailing market environment, we continually assess what best meets our customer’s investment profile.

— Product Solutions Division —

Given Shinsei’s structuring expertise, we are able to offer a wide range of competitive and attractive financial products which are targeted at investors seeking enhanced yield. We seek to make these products available to investors through establishing intermediary arrangements with Banks and other financial institutions.

Intermediation scheme

<Examples of structured financial products that we offer>

Forex linked bonds, Nikkei or Stock price linked bonds, Interest rate linked bonds, Commodities linked bonds, etc.

— Capital Markets Division —

「Comprehensive consultant for everything from financing to business strategy」
The Capital Market Division proposes ways to enhance corporate value through balance sheet solutions.

<Debt Structuring>

Backed by the Shinsei Bank Group’s know-how and a broad customer base in Japan and abroad, the Capital Markets Division has a solid foundation for underwriting publicly offered bonds, handling privately placed bonds and other financing-related operations.
Listed or non-listed, rated or non-rated, Shinsei Securities has a strong track record for restructuring the debt of companies of all sizes.

<Equity Structuring>

We are able to advise customers on developing comprehensive and long term balance sheet solutions. Our approach is timely, and our execution is speedy. We propose new scheme to meet Tax and Regulatory issues and support enhancement and improvement of corporate value through balance sheet solutions.

Solution

— Research Division —

Research Division conducts redearch and study on fixed income products including bonds and securitized assets. In order to proactively advance the provision of information to our clients, the full-scale research operations at Shinsei Securities launched in September 2006 when the "Credit Analysis Division" was renamed "Fixed Income Research Division". The division changed its name to "Research Division" in April 2011 to reflect our intention to expand research coverage.

<Profile of Head of the Division>

Yukio Egawa, Chief Strategist
Egawa has been deeply involved in the development of the Japanese securitization market since its inception in the mid-1990s. His role in the market evolved from originator, arranger/banker and credit rating analyst to sell-side research analyst specializing in securitized products. Egawa's former employers include Moody's, Credit Suisse, Deutsche Bank and the Bank of Japan. Member of the Society for the Economic Studies. Senior Advisor to the Securitization Forum of Japan. Ranked No.1 in securitization analyst section in Nikkei Analyst Poll 2008.