Large Commercial Bank Overseas Branch Bond Investment Policies And Risk Management

Since 1990, with the unceasingly deepening of the global economic integration , financial globalization and bank internationalization became an irreversible tendency gradually. Now the joint-stock commercial bank is standing in a new historical beginning. Our main challenge is how advance the international business and construct the international first-class bank. The fusion of China and world economics has greatly promoted the Chinese enterprises to export products to overseas and develop abroad, and has attracted more and more foreign companies to invest in China. Various kinds of banking business operated in foreign currencies and customers which operate their business in foreign currencies is becoming a key point of competition among the Chinese banks and the foreign banks.As a kind of the core businesses of Chinese bank's overseas branches, bond investment take an important role in the Chinese banks` strategy to make their global investment, financing, trading, settlement network, and to become one of the major players in the international money market, capital market and foreign exchange market, and serve their Chinese customers and foreign customers better, and to compete with foreign banks.This paper bases on the business background of ABC branch (a Chinese government-owned large commercial bank's Tokyo Branch) ,by analyzing its` current bond portfolio structure, investment strategy, liability, portfolio expected value and VAR, Collateralized Debt Obligations proportion, risk control system, risk control procedure, risk control approaches etc, points out the problem of its` bond investment business, and submits solutions for ABC Branch to make more reasonable investment strategy and strengthen its portfolio risk management further more ,which will help ABC Branch to take competitive advantage and keep sustainable development.