Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

High Yield Experts

Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

Credit

Following the recent string of high-profile fraud scandals, from Luckin Coffee in China to Wirecard in Germany, our In-Focus section this month deals with our framework for discerning fraud in Asian companies. We also give an overview of common techniques used to manipulate financial information in Asian markets, and present case studies of alleged or confirmed fraud drawn from our coverage universe. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  Following the recent string of high-profile fraud scandals, from Luckin Coffee in China to Wirecard in Germany, our In-Focus section this month deals with our framework for discerning fraud in Asian companies. We also give an overview of common techniques used to manipulate financial information in Asian markets, and present case studies of alleged or confirmed fraud drawn from our coverage universe.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Framework For Discerning Fraud In Asian Companies - Lucror Analytics

The Asia HY Trade Recommendations report for the month of June includes a summary of our recommendations. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Recommendations report for the month of June includes a summary of our recommendations. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - June 2020 - Lucror Analytics

From an investor’s perspective, the month of May was dominated by two issues: the likely rate of the post-pandemic economic recovery, and mounting tensions between China and the US. In addition, China held its annual Two Sessions during the month after a delay due to COVID-19. In this report, we focus on the Government Working Report delivered at the meetings, looking for guidance on the trajectory of policy easing and the stimulus meant to drive a post-pandemic recovery. The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market.

  From an investor’s perspective, the month of May was dominated by two issues: the likely rate of the post-pandemic economic recovery, and mounting tensions between China and the US. In addition, China held its annual Two Sessions during the month after a delay due to COVID-19. In this report, we focus on the Government Working Report delivered at the meetings, looking for guidance on the trajectory of policy easing and the stimulus meant to drive a post-pandemic recovery.   The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors' understanding of the Asian USD high-yield market. 

Asia HY Monthly - Takeaways From China's Two Sessions (2020) - Lucror Analytics

The Asia HY Trade Recommendations report for the month of May includes a summary of our recommendations. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Recommendations report for the month of May includes a summary of our recommendations. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - May 2020 - Lucror Analytics

Director | Exposing Creative Accounting, Bucephalus Research Partnership

Robert Medd

Director | Exposing Creative Accounting

Exposing Creative Accounting

Bucephalus Research Partnership

Bucephalus Research Partnership Limited. Exposing Creative Accounting.

At the Bucephalus Research Partnership (BRP) we analyse financial statements using our accountant's practical experience and our own quantitative algorithms for corporate governance, accounting risk and peer performance.

Our thematic research refines our unique algorithms while our single stock research focuses on examples where we discover a significant gap between published accounts and business reality.

​Bucephalus Research Partnership:
- Is an independent fee-based research service
- Does not take proprietary positions, long or short
- Does not solicit business or fees from the corporates we review

Equity Bottom-Up

Lenovo presents itself as a dynamic IT company, well positioned to benefit from the growth in connectivity. It talks about taking share and record profits. We think the reality is quite different. Lenovo is primarily a hardware manufacturer with commodity margins that grows via acquisitions. It has branched out into data centres and some tech services, but these remain limited and possibly loss making.  The problem is that both liabilities and funding costs are rising. The new US$1bn bond cost 5.875%, exceeding last year’s 4.5% operating return and above our forecast return for FY2021. Cashflow would have been negative without the fall in receivables and the endless fund raising suggests that the cash pile is not all that it seems. SELL.<iframe src="//www.youtube.com/embed/g-kFNPSUZiE" width="640" height="360"></iframe><a href="https://youtu.be/g-kFNPSUZiE" target="_blank" rel="noopener"></a>

Lenovo presents itself as a dynamic IT company, well positioned to benefit from the growth in connectivity. It talks about taking share and record profits. We think the reality is quite different. Lenovo is primarily a hardware manufacturer with commodity margins that grows via acquisitions. It has branched out into data centres and some tech services, but these remain limited and possibly loss making.  The problem is that both liabilities and funding costs are rising. The new US$1bn bond cost 5.875%, exceeding last year’s 4.5% operating return and above our forecast return for FY2021. Cashflow would have been negative without the fall in receivables and the endless fund raising suggests that the cash pile is not all that it seems. SELL.

Sell Lenovo (992 HK) FY2020: Falling Revenue, Rising Debts

China

Lenovo Group Limited, through its subsidiaries, sells, and manufactures personal computers and handheld devices. The Company also provides Internet services and IT services, and contracting manufacturing business.

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Lenovo (992 HK)

Asia HY Monthly - Framework For Discerning Fraud In Asian Companies - Lucror Analytics

Following the recent string of high-profile fraud scandals, from Luckin Coffee in China to Wirecard in Germany, our In-Focus section this month...

Lucror Analytics

Asia HY Trade Recommendations - June 2020 - Lucror Analytics

The Asia HY Trade Recommendations report for the month of June includes a summary of our recommendations. The report also features relative-value...

Lucror Analytics

Asia HY Monthly - Takeaways From China's Two Sessions (2020) - Lucror Analytics

From an investor’s perspective, the month of May was dominated by two issues: the likely rate of the post-pandemic economic recovery, and mounting...

Lucror Analytics

Asia HY Trade Recommendations - May 2020 - Lucror Analytics

The Asia HY Trade Recommendations report for the month of May includes a summary of our recommendations. The report also features relative-value...

Lucror Analytics

Sell Lenovo (992 HK) FY2020: Falling Revenue, Rising Debts

Lenovo presents itself as a dynamic IT company, well positioned to benefit from the growth in connectivity. It talks about taking share and record...

Bucephalus Research Partnership

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