RBC Capital Markets (Japan) Ltd.
Case Writing Requirements:
1. 2 single space pages plus diagrams and appendices.
2. Written cases shall have the following sections:
? Title, Introduction: Issue and Cause Summarized, Analysis,
? Decision Criteria
? Alternatives
? Solution
? Justification for Choice of Solution and Not Others, Implications for the Organization.
? References
3. Please use APA style when citing and referencing information. http://apastyle.apa.org/

Case: RBC Capital Markets (Japan) Ltd.
Background Information:
Company: RBC Capital Markets (Japan) Ltd
Size: Small office. 50 people in Japan, they only have 3 sales teams, there is a head for each team.
Industry: Banking, flow product.
Clients: 1. Banking clients. 2: insurance clients.
Business Activity: Financial and insurance activities
Type of Entity: Public Corporation

Issue: The issue that I am facing is 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?

Cause: You have to imagine that you are not in New York where you would be working during normal market hours. You have to imagine yourself working in an offshore site such as Japan, Hong Kong or Bombay. Second, the market’s liquidity is very limited. You can only sell bits and pieces if you do not have any prior information or if you do not have connections with other clients who are willing to buy that product. The third limitation is that because you are not working in New York, your relationships with people working in New York are very limited. But on the other hand you have support from your office colleagues and senior management in Tokyo.