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Details of bonds and bills custodian service The bonds and bills custodian service of CTBC includes services such as custody of physical bonds and bills, custody of book-entry bonds, and custody of short-term bills. CTBC provides a broad and comprehensive line of service for you and satisfies your needs for the custody of all kinds of bonds and bills. With CTBC, you can delegate the tedious bond and bill custodian service to a professional service team that is rich in experience and operates efficiently. You can then focus on the core business of your company and seek higher revenue. Our bank has created a comprehensive bonds and bills management information system. We not only provide reliable custodian service and bond lending planning but also have the outstanding professional service staff and offer the most up-to-date online inquiry service. Additionally, CTBC has a reputation of reliability as the largest physical bond custodian bank in Taiwan. Our bank has the enthusiasm of professionalism and sincerity and is worthy of your trust! Features of bonds and bills custodian service ◎ Economic pricing: Our economic pricing lowers the operation and processing costs for your company. ◎ Maximal operational flexibility: With your operation process, we can offer a quick service. ◎ Field-service of document collection: Assisting with the sending and receiving of physical documents. ◎ Online inquiry service: 24-hour online inquiry of the balances of bonds and bills. ◎ Real-time account adjustment: The system is well-designed to accommodate account adjustment in real time. ◎ Custody slip issued off-site: Multiple locations are connected to issue custody slips off-site. Calculation of bond and bill portfolio risk value According to SFAS No. 36 - Financial Instruments: Disclosure and Presentation, beginning from January 1, 2006, corporations must offer risk information of financial instruments in financial statements, including market risk, credit risk, liquidity risk, and the cash flow risk due to interest rate changes. Among these risks, market risk includes the risk of change in fair value of financial instruments due to interest rate fluctuations. Because bonds and bills are also financial instruments governed by SFAS No. 36, corporations must abide by the regulations of this statement and disclose the risk information of the bonds and bills they hold. To help corporations cope with such a change, CTBC added evaluation service for the two following risk measurement indicators: (Value-at-risk, abbreviated as VaR hereafter) and DV01 (dollar value of a basis point). Corporations can inquire of the VaR and DV01 of its bond assets in a specific duration through its exclusive online trust banking. They can also inquire of the daily trading details and asset balances each day through the online service. (Value-at-risk, VaR): VaR reflects the greatest potential loss of the bond assets held by the corporation that could be sustained each day within a specific duration and confidence interval. VaR summarizes all possible market risks of a corporation into an easy-to-understand figure. The management can clearly understand the greatest potential loss of the bond assets that could be sustained each day and help corporations adjust asset allocation and applicable risk policies in a dynamic manner. DV01 (dollar value of a basis point): DV01 refers to the change in bond price when the interest rate fluctuates by one basis point (0.01%). It is also an important indicator for corporations to evaluate the bond asset value it holds. The professional custodian service product development team of CTBC not only provides risk information of VaR and DV01 ahead of our competitors but also provides a secure asset custodian service and comprehensive government bond lending planning. With the rich experience of our bank and the efficient service staff handling the procedures, our service can reduce transaction risks for our clients and effectively increase core competitiveness. |
