High-yield and distressed debt coverage for asset manager

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

Client

US-headquartered renowned fixed income asset manager.

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:
  • We 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.
  • Our team sourced data from various trusted sources such as company filings, loan agreements, indentures and research from rating agencies.
  • The team implemented scenario analysis tools to evaluate alternative possible outcomes and performed recovery analysis to trace the reclaim value.
  • We supported the onshore team in writing credit memos and identifying key concerns/risks associated with the investment.

Data sources used:

Moody's
Bloomberg
Markit
Capital IQ

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.
 

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