Fixed Income Research

 

Strong Credit DNA

 

India’s largest credit rating agency;

 

Solid parentage: S&P Global Holds 67.87%

 

Solid track record: 30+ years

of operations

Rich Experience

 

Support 22+ global asset managers

 

70 Sectors 15,000 Firms and 50,000 SMEs/Private Cos

 

Over 300 databases

managed

Talent Pool

 

Largest employer of CFAs in India

 

1,200+ Credit analysts &

SMEs

 

Home-grown talent +

Lateral hires

 

Our Capabilities

 

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corporate-hy-and-leverage-loans-img1

Corporate HY and Leverage Loans
     
- Adjusted credit models with forecasts (Private/Public)

- Opinion based credit reports 

- Capital structure & covenant analysis 

- Analyze A-to-Es and consents to credit facilities

- Recovery analysis – Asset based – EV based

- Relative valuation

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emerging-market-debt-img2

Emerging Market Debt

- Local and hard currency bond valuation

- Credit reports models on index / non-index credits

- Sovereign credit analysis

- Macro Strategy Research/Periodical

- On-the-ground expertise (Argentina / China / India)

- Local language capabilities

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banks-and-financial-institutions-research-img3

Banks and Financial Institutions Research

- CAMELS analysis for Banks

- Models with ratio and trend analysis

- Trade idea generation for covered, senior, T2, T1, CoCos

- Bond screeners

- Bankbook and databases

- Industry / Thematic reports

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private-credit-img4

Private Credit

- Screeners for filtering target firms

- Market mapping & valuation

- Cashflow / asset based company due diligence

- Capital structure, liquidity, covenant analysis

- Deal proposals, identify LPs/PE sponsors

- Portfolio maintenance, stress testing and recovery analysis

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distressed-debt-img5

Distressed Debt

- Tear sheets analyzing the credit situation

- Restructuring analysis

- Covenant analysis

- In-depth industry analysis

- Valuation & Recovery Analysis

- Daily/weekly news monitoring

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investment-grade-img6

Investment Grade

- Generate trade ideas through bond screeners

- Opinion based credit reports (long/short)

- Credit adjusted financial models

- Hybrid bond analysis

- Build and maintain databases

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Key Engagements

 

  • Onshore Analyst/PM for differentiated research
  • Complementary research support for peripheral universe
  • Augment research teams bandwidth during coverage ramp-up phase
  • Earnings maintenance support during peak load
  • Meet regulatory reporting requirements
  • In-depth research coverage for niche sectors

 

 

Key Use Cases 

 

Client :

 

Background :

UK Based Asset Management Firm

 

  • A team of Crisil GR&A analysts were designated to work cohesively with the onshore leverage loan desk to support on primary issuances and actively track the existing portfolio of leveraged loans investments
  • Developed investment recommendation on more than 50+ primary issuances and monitor a portfolio of 150+ credits

Execution Highlight

 

  • Built/maintained detailed company models with historical numbers/business drivers & forecast financial performance under different scenario with key focus on understanding credit metrics trajectory & covenant headroom under different scenarios
  • Prepared and analyzed proforma capital structure indicating debt as per seniority and highlighting leverage at every level 
  • Prepared credit proposal for primary deals with detailed  review & analysis of industry, proposed transaction and company
  • Made presentation/investment recommendation on the primary deals to the credit committee 
  • Conducted recovery analysis using Hard asset recovery and Enterprise Value recovery methods for distressed credits
  • Prepared short updates on monthly results comparing the actual performance vs budgeted results 
  • Analyzed waivers and amendments to Senior Facility agreements/ Credit agreements 
  • Closely monitored & assessed the credit impact on the  portfolio based on economic, industry and company specific news, and recommended trade ideas / internal rating changes

How Crisil GR&A Made a Difference

  • Released the bandwidth of the onshore analysts to focus on high-impactful tasks
  • Helped investment team ramp up participation in primary issuances & increase coverage by 30+ credits/onshore analyst
  • Facilitated efficient portfolio management resulting in higher portfolio returns

Client :

 

Background :

US Based Asset Management Firm

 

  • Client started engagement with Crisil to augment bandwidth of in-house research team. Currently over 20 FTEs provide support for IG, HY, Private Debt, Banks and FI coverage across US, Europe, Asia and LatAm

Execution Highlight

 

  • Crisil identified candidate with relevant skill sets from internal talent pool & started providing support on IG/HY credits 
  • A dedicated PM was assigned to ensure the smooth kick off and integration with onshore analyst.
  • Impressed by the quality of support and delivery management, the client gave us a mandate to expand the support. Using our strong credit talent base we sourced most of the talent internally and expanded team to 10 in 4 months time and based on regular feedback from client, the PM developed a customized training program for client requirements
  • Client was impressed by the quality of the talent and their ability to scale up within short time and has started utilizing the team for complementary support and made Crisil analyst responsible for the peripheral research coverage.
  • Suggested investment trade ideas and interacted with traders, PMs and sell side analysts.
  • Client saw the value in the engagement and expanded Crisil’s support to Equity & Risk team

How Crisil GR&A Made a Difference

  • Client was impressed with quick scaling up of resources
  • Also staffed two resources from Crisil’s Argentina location to cover LatAm Credits.
  • Also support CRO with preparing though leadership papers on topics like evaluating manager skills and customization of credit risk tools risk report automation.   

Client :

 

Background :

A US Based Hedge Fund

 

  • Client wanted to launch a new fixed-income fund and sought Crisil GR&A’s help in initiating coverage on a set of high-yield and distressed Credits (~60 new credits) that could present lucrative investment opportunities

Execution Highlight

 

  • Crisil GR&A assembled and deployed a team of 5 analysts with experience in credit research with in a month
  • The team identified the investment strengths and risks of the companies by preparing end-to-end credit model (including covenant, sensitivity, and recovery analysis) and developed a thorough understanding of the business & industry dynamics
  • Apart from the fundamental research, a broad study benchmarking the company’s bonds vs. other similarly rated bonds was carried out to arrive at an appropriate relative valuation view
  • A brief credit note focusing on credit summary, investment strengths and risks, relative valuation view, capital structure analysis and recovery commentary was prepared
  • Crisil GR&A performed sensitivity analysis on the financial covenants

How Crisil GR&A Made a Difference

  • The client was impressed with the output quality and speed of execution. Specifically, the client noted that the research level was very thorough and the valuation argument was well-balanced
  • The client analyst used the note to present his thoughts on the credit to the portfolio manager
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Questions?

  • For any other information,  please call or email us at:
    +1800 267 XXX
    XXXXX@crisil.com