RBC Japan 1
Masafumi Noguchi is a manager with RBC Japan. He has quite an issue on his hand and explains it as follows. Let us say that there is a Bank A and Bank A has been buying huge amount of securitized products over the years. They have a huge portfolio of that product. Let us now image that we are at the point in time of the Global Financial Crisis (GFC). Now the client has to liquidate the portfolio. As you receive information about the client's intention to liquidate the portfolio, you notice bits and pieces of bonds being sold by the client every day, for the last two weeks. But it is a very small portion of the portfolio because the overall liquidity of the market is limited. Now you are in competition with at least two or three other dealers. You submit your price. They submit their price. If your price is best, they sell it to you. If not, they go to another deal. The situation is that if you can monetize this business or if you can change the efficiency of this business, the revenues from this client will significantly increase. So what do you want to do? Visit casenet.ca for more free, open access decision focused video teaching cases from Acadia University.
Interviewee
Masafumi Naguchi
Company
Industry
Business Activity
RBC Royal Bank of Canada
Banking
Financial and insurance activities
Headquarters
Tokyo, Japan
Size
Large
Employees
More than 10,000
Greater than $25 million
Yearly Revenue
Public Corporation
Type of Entity
Subject
Finance
Level of Difficulty
Difficult
Teaching Objectives
Learn about international financial services industry
Keywords
Asset Management
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