UBS Group AG, the Swiss multinational investment bank, has made a significant move to enhance its presence in Japan’s lucrative market for high-yield structured investments and tailored derivative products. In a strategic hiring spree, UBS’s Tokyo brokerage arm has recruited three prominent salesmen with extensive experience in the Japanese financial sector. The firm aims to capitalize on the rising demand among local financial institutions for sophisticated investment solutions.
Shuhei Sanada, a former banker at HSBC Holdings Plc, joined UBS on January 1 as the head of sales for regional financial firms. Alongside Sanada, Eiichiro Yoshida from Nissay Asset Management Corp. and Hiroaki Sato from Barclays Plc also commenced their roles on the same day, bolstering UBS’s team of seasoned professionals.
“This investment in broadening our reach underlines UBS’s commitment to the Japanese market,” remarked Naohiro Kuroda, co-head of global markets in Japan, in an emailed statement to Bloomberg News. The newly hired team is expected to play a crucial role in extending UBS’s innovative financial solutions to a wider clientele across Japan.
The recruitment drive comes at a time when international lenders are vying for a foothold in Japan’s evolving financial landscape. As domestic financial institutions grapple with narrowing lending margins, the demand for high-yield structured products and derivative-based solutions is surging. This trend has triggered fierce competition among global banks to secure top talent capable of navigating this complex market.
UBS is not alone in this endeavor. Last year, Morgan Stanley and Societe Generale SA made headlines by luring experienced bankers from rival firms, including UBS itself, to strengthen their offerings in structured products and risk management solutions. This competitive recruitment underscores the critical nature of the structured investment segment in Japan’s financial ecosystem.
Japan’s financial institutions, particularly regional banks, are facing mounting pressure to reassess and revamp their bond investment portfolios amid rising domestic interest rates. This environment presents a fertile ground for banks offering innovative financial solutions that include risk-hedging instruments and derivative products.
“People who can put together derivatives to propose a new bond portfolio are likely in high demand,” noted Hideyasu Ban, a Bloomberg Intelligence analyst. The need for such expertise is amplified as financial institutions seek to safeguard their portfolios against potential losses due to interest rate fluctuations.
Shuhei Sanada brings a wealth of experience from his tenure at HSBC Japan, where he led institutional sales in the client solutions group. His expertise in developing tailored solutions for institutional clients positions him well to lead UBS’s efforts in expanding its reach among regional financial firms.
Eiichiro Yoshida, joining as a senior sales representative, has an impressive background in managing client relationships and leading institutional product strategy at Nissay Asset Management, a subsidiary of Nippon Life Insurance Co. His deep understanding of the asset management landscape will be invaluable in navigating complex client needs.
Hiroaki Sato, previously with Barclays Plc, will focus on offering cross-asset products and solutions, further enhancing UBS’s capability to deliver diversified financial instruments. His experience in handling a broad spectrum of financial products aligns with UBS’s strategic objectives in Japan.
UBS’s recent merger with Credit Suisse has significantly bolstered its local securities unit’s capabilities in structuring and trading complex financial products. This merger not only expands UBS’s product offerings but also strengthens its competitive edge in the Japanese market.
UBS had previously brought on board Suicheng Wang, a former managing director at Goldman Sachs Group Inc., to enhance the structuring aspect of its business in Tokyo. Wang’s expertise further solidifies UBS’s position as a leading provider of sophisticated financial solutions in Japan.
