Bank of Montreal Strengthens Tokyo Presence with Barclays Talent
Bank of Montreal has strategically hired senior bankers from Barclays PLC to bolster its brokerage operations in Tokyo, marking a significant step in the Canadian lender's international expansion efforts. As Japan's third-largest lender, BMO aims to capitalize on growing Japanese demand for overseas securities, particularly North American products.
Strategic Hiring in Japan's Financial Hub
Ryuta Higuchi and Makoto Ohkawara have joined Bank of Montreal's Japanese securities subsidiary as directors this year, according to sources familiar with the appointments. Higuchi specializes in selling fixed income securities to institutional investors in non-yen currencies, while Ohkawara is tasked with establishing a foreign exchange and derivatives distribution team in Japan. Both bankers previously worked at Barclays before making the transition to BMO's expanding Tokyo operations.
The bank's spokesperson declined to comment on the specific hires, but industry observers note this move aligns with BMO's broader strategy to grow its global markets business across Asia.
Broader Foreign Bank Expansion in Japan
Bank of Montreal joins several international financial institutions that are expanding their Japanese operations amid increasing market transactions and record-high merger volumes. Citigroup Inc. plans to boost its investment-banking team in Japan by nearly one-third, while Goldman Sachs Group Inc. and UBS Group AG have also made key strategic hires in the region.
"The Canadian firm is betting that Japanese investors will continue seeking additional returns overseas, even as the Bank of Japan's interest-rate hikes make domestic debt more attractive," noted financial analysts. According to Bloomberg Intelligence analyst Hideyasu Ban, as Japanese money gradually shifts from deposits to investments, demand for both yen-denominated and foreign currency bonds should experience significant growth.
Japanese Investment Trends Supporting Expansion
Annual Japanese purchases of foreign bonds, stocks, and investment funds reached approximately ¥700 trillion (US$4.6 trillion) on a gross basis in each of the past two years. This figure represents the highest level in over a decade, according to Japanese finance ministry data, indicating robust demand for international investment opportunities.
Bank of Montreal obtained its brokerage license from Japan's financial regulator in 2022 and accelerated its Tokyo hiring last year as part of its international expansion strategy. The bank's local unit, BMO Japan Securities Ltd., recruited former Barclays managing director Tomohiro Mikajiri in July as Japan global markets head. Mikajiri, who previously served as Barclays' Japan macro trading chief and has extensive experience in mortgage-backed securities transactions, has been instrumental in leading the Tokyo build-out.
Building Comprehensive Institutional Platform
Tomokaze Kawachino also joined BMO from Mizuho Financial Group Inc. last year to trade securities backed by mortgages. The bank has identified particular demand in Japan for structured securities backed by pools of mortgages and ranked number one in 2024 and 2025 for U.S. agency collateralized mortgage obligations, according to Bloomberg-compiled data.
Bank of Montreal has been actively seeking to grow its global markets business throughout Asia as clients increasingly look for access to North American financial products. In Japan specifically, the bank aims to develop a comprehensive, full-coverage platform for institutional investors, according to sources familiar with the strategy.
The expansion comes as Japanese investors demonstrate sustained interest in overseas securities despite domestic monetary policy changes, creating opportunities for international financial institutions with strong North American product offerings and expertise.
