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Nomura was also one of the many domestic and foreign brokers that made a bundle from selling so-called exchangeable bonds (EBs), a product whose high rates of interest are matched by an equally high risk of losing money.
It was no help to buy EBs linked to the diversified Nikkei 225.
Investors' losses have been especially big because most EBs are linked to technology or telecoms shares, such as Sony, Fujitsu and NTT DoCoMo, which have suffered horribly.
He said it sold EBs only to customers who understood the risks.Nomura's occasional testiness about its credibility with retail investors reflects a drive to strengthen this side of its business.
EBs have been a goldmine for domestic and foreign brokers alike.
AS INVESTMENTS go, so-called exchangeable bonds (EBs), until recently the hottest thing in Japanese finance, have turned out to be a painful dud.
So let's delete B from EBS.
"The government have not taken on the banks at all … How long can it take to sell one small building society, the EBS, for example.
Usually with a fairly short maturity, EBs offer rates of interest anywhere between 5% and 40%.
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The second is our efforts with the Educational Broadcasting System [EBS].
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