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

In this month’s “In-Focus” section, we provide an update to our 2018 analysis of returns and volatility for unrated Chinese issuers. Since our first report, the number of such issuers has increased notably. At the same time, with the Lucror Chinese Industrial index having run since 1 January 2018, we can now better compare the unrated issuers' performance relative to peers. 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.

  In this month’s “In-Focus” section, we provide an update to our 2018 analysis of returns and volatility for unrated Chinese issuers. Since our first report, the number of such issuers has increased notably. At the same time, with the Lucror Chinese Industrial index having run since 1 January 2018, we can now better compare the unrated issuers' performance relative to peers.   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 - Returns And Volatility For Unrated Chinese Issuers (2020) - Lucror Analytics

The Asia HY Trade Book for the month of October includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Book for the month of October includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - October 2020 - Lucror Analytics

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

On the 11th of September, IsZo Capital and other shareholders presented <a href="https://www.smartkarma.com/entities/nam-tai-property-inc" target="_blank" data-smartkarma-citation="entities:29275:1" rel="noopener">Nam Tai Property Inc (NTP US)</a> with certification of ownership above 30% and an official request to call a Shareholder General Meeting as per the bylaws. That started the clock ticking.The next business day, the Nam Tai CEO and Chairman of the Board Mr. Ying Chi Kwok, who happens to be the younger brother of the CEO of largest shareholder <a href="https://www.smartkarma.com/entities/kaisa-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:169:1" rel="noopener">Kaisa Group Holdings (1638 HK)</a>, <a href="https://www.sec.gov/Archives/edgar/data/829365/000156459020043351/ntp-6k_20200914.htm" target="_blank" rel="noopener">resigned</a> "for personal reasons", effective immediately. A week later, Nam Tai <a href="https://www.sec.gov/Archives/edgar/data/829365/000156459020044137/ntp-6k_20200921.htm" target="_blank" rel="noopener">named</a> Dr Lai Ling Tam, to the role of Executive Chairman, and Mr Jiabiao Wang as CEO. Both are ex-Kaisa. So much for independence. In my previous insight <a href="https://www.smartkarma.com/insights/nam-tai-property-an-interesting-activist-situation" target="_blank" data-smartkarma-citation="insights:43183" rel="noopener">Nam Tai Property - An Interesting Activist Situation</a> which introduced the activist situation, I concluded by saying... <blockquote>...where the company has just spent a lot of cash last quarter buying the Dongguan asset and now that cash is depleted, there could be a risk of a downturn so the company would need to raise cash by offering shares. A third-party placement to a strong development partner like Kaisa might be engineered. It is often the way of things. It is specifically what the activists and their supporters are trying to make sure does not happen. But they are right to be worried that it might.</blockquote>And so it did. I was trying to be gentle in my wording. It is not clear that I needed to be. <a href="https://www.smartkarma.com/entities/nam-tai-property-inc" target="_blank" data-smartkarma-citation="entities:29275:1" rel="noopener">Nam Tai Property Inc (NTP US)</a> on 5 October announced pre-open that it had raised US$170mm through a private placement (PIPE) of common shares to <a href="https://www.smartkarma.com/entities/kaisa-group-holdings-ltd" target="_blank" data-smartkarma-citation="entities:169:1" rel="noopener">Kaisa Group Holdings (1638 HK)</a>.There may be problems with this.  There may not be.More below the fold.

On the 11th of September, IsZo Capital and other shareholders presented Nam Tai Property Inc (NTP US) with certification of ownership above 30% and an official request to call a Shareholder General Meeting as per the bylaws. That started the clock ticking.The next business day, the Nam Tai CEO and Chairman of the Board Mr. Ying Chi Kwok, who happens to be the younger brother of the CEO of largest shareholder Kaisa Group Holdings (1638 HK), resigned "for personal reasons", effective immediately. A week later, Nam Tai named Dr Lai Ling Tam, to the role of Executive Chairman, and Mr Jiabiao Wang as CEO. Both are ex-Kaisa. So much for independence. In my previous insight Nam Tai Property - An Interesting Activist Situation which introduced the activist situation, I concluded by saying... ...where the company has just spent a lot of cash last quarter buying the Dongguan asset and now that cash is depleted, there could be a risk of a downturn so the company would need to raise cash by offering shares. A third-party placement to a strong development partner like Kaisa might be engineered. It is often the way of things. It is specifically what the activists and their supporters are trying to make sure does not happen. But they are right to be worried that it might.And so it did. I was trying to be gentle in my wording. It is not clear that I needed to be. Nam Tai Property Inc (NTP US) on 5 October announced pre-open that it had raised US$170mm through a private placement (PIPE) of common shares to Kaisa Group Holdings (1638 HK).There may be problems with this.  There may not be.More below the fold. 

Nam Tai Property - Equity Placement Is Awful Governance. Permanent Entrenchment Risk Exists.

In this month’s “In-Focus” section, we consider China’s new Three Red Lines leverage guidelines for developers, which have been rolled out on a limited basis. We also look at the context for the policy’s introduction and its implications on credit access for industry players at large.  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.

  In this month’s “In-Focus” section, we consider China’s new Three Red Lines leverage guidelines for developers, which have been rolled out on a limited basis. We also look at the context for the policy’s introduction and its implications on credit access for industry players at large.    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 - China's Three Red Lines - Lucror Analytics

The Asia HY Trade Book for the month of September includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.

  The Asia HY Trade Book for the month of September includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - September 2020 - Lucror Analytics

China

Kaisa Group Holdings Limited is an integrated real estate company. The Group focuses on urban development and operation. Kaisa Group's real estate business covers the planning, development and operation of large-scale residential properties and integrated commercial properties.

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Kaisa Group Holdings (1638 HK)

Asia HY Monthly - Returns And Volatility For Unrated Chinese Issuers (2020) - Lucror Analytics

In this month’s “In-Focus” section, we provide an update to our 2018 analysis of returns and volatility for unrated Chinese issuers. Since our...

Lucror Analytics

Asia HY Trade Book - October 2020 - Lucror Analytics

The Asia HY Trade Book for the month of October includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Nam Tai Property - Equity Placement Is Awful Governance. Permanent Entrenchment Risk Exists.

In the previous insight Nam Tai Property - An Interesting Activist Situation which introduced the activist situation,

Travis Lundy

Asia HY Monthly - China's Three Red Lines - Lucror Analytics

In this month’s “In-Focus” section, we consider China’s new Three Red Lines leverage guidelines for developers, which have been rolled out on a...

Lucror Analytics

Asia HY Trade Book - September 2020 - Lucror Analytics

The Asia HY Trade Book for the month of September includes a summary of our recommendations, as well as our high-conviction ideas. The report...

Lucror Analytics

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