High-yield and distressed debt coverage for asset manager

Client: US-headquartered renowned fixed income asset manager

Bullets:

  • 200 Companies covered across 10 sectors
  • 10 Offshore research analysts
  • 100% Independent and dedicated structure

OPPORTUNITY:

The client had a pressing requirement of initiating coverage in the high-yield and distressed debt space, owing to severe volatility across multiple sectors. In addition to identifying and evaluating investment opportunities, the client’s team also needed support in active maintenance and coverage of the portfolio.

SOLUTION:

Based on a detailed understanding of the client’s investment research process and valuation framework, SG Analytics identified the key addressable areas and adopted the following strategic approach:

  • SG Analytics deployed a team of analysts aligned one-to-one with the onshore team to handle requests such as cash flow modeling, including demand-supply drivers, market structure, capital structure, liquidity analysis and financial forecasting
  • The SG Analytics team sourced data from various trusted sources such as company filings, loan agreements, indentures and research from rating agencies
  • SG Analytics implemented scenario analysis tools to evaluate alternative possible outcomes and performed recovery analysis to trace the reclaim value
  • SG Analytics supported the onshore team in writing credit memos and identifying key concerns/risks associated with the investment

VALUE DELIVERED: 

SG Analytics helped us accelerate our investment process to a great extent. We are now able to deploy funds well within our internal timelines due to an exceptional level of analytical sophistication by the team at SG Analytics. – Head of Asset Management

  • Improved the quality and expanse of research, optimized time utilization of onshore team
  • Assisted onshore analysts intesting the hypothesis across investment ideas
  • ~35-40% cost savings delivered during the first year alone
200
Companies covered across 10 sectors.
10
Offshore research analysts.
100%
Independent and dedicated structure.

Data sources used:

VALUE DELIVERED

►
1
Improved the quality and expanse of research, optimised time utilisation of onshore team.
►
2
Assisted onshore analysts in testing the hypothesis across investment ideas.
►
3
~35-40% cost savings delivered during the first year alone.