NOMURA News Release

South Korea Government Bond Index Offers Liquidity, Coverage

Rare Tracking Tool Increases Portfolio Returns

Hong Kong, May 23, 2011 – Nomura, the global investment bank, has launched its Korea Government Bond Index, a rare tracking tool that provides investors with both a high degree of liquidity and coverage to increase portfolio returns. Its launch follows the release of Nomura's India government bond index in March, which was the first of Nomura's Asia ex-Japan series aimed at measuring bond market performance of individual countries in the region.

"Most indices in the market are difficult to replicate since many of the bonds within them are illiquid," said Des Supple, Head of Local Market Rates Research. "Nomura's Korea index is designed to be both highly representative of the market and offer increased tradability due to a liquidity enhancement rule, applied quarterly, determining which bonds should be included in the index based on the monthly turnover of all outstanding issues."

The liquidity rule is set at a level that ensures the index is not subject to a high turnover rate, thereby minimising transaction costs. As of March 31, 2011, the index comprised 23 bonds totalling KRW 267,317bn (USD 250bn).

The index, which measures the total return performance of Korean government bonds denominated in Korean Won, posted annual total returns for 2010 of 8.47%. Its inception date is December 30, 2005.


For further information please contact:

Name Company Telephone
Rosie Slater Nomura (Hong Kong) +852 2536 1540


Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs approximately 27,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through three business divisions: retail, asset management, and wholesale (global markets and investment banking). For further information about Nomura, please visit