Japan's Nomura Holdings plans to beef up its interest rate and currency trading operations globally, believing increased market volatility will lift demand, a senior executive said.
I maintain my buy rating on Nomura Holdings, driven by strategic moves to reduce earnings volatility and enhance returns. The new Trust Banking division will boost recurring revenue, and unlock cross-selling opportunities across business lines. The company's acquisition of Macquarie's US asset management arm expands AUM by almost a third, which boosts long-term ROE potential.
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