Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

<p>Softbank's surprise announcement of a buy-back/de-leveraging program should continue to be well received and we expect that today's limit-up 19% gain can be followed by further upside tomorrow.  As opposed to the one announced ten days ago, Softbank's current buyback will be funded by selling assets that the market is discounting at 60%+ for full price, whilst de-leveraging should mitigate worries on balance sheet stress as private equity valuations fall. Memories from the collapse of the dot-com bubble and the Vodafone Japan/Lehman shock time were likely revived by a 53% share price decline in five weeks and whilst Softbank has been reluctant so far, this is the first time it had the financial firepower from its Alibaba investment to wield. That is likely what they sell to fund this program although monetization of the Sprint/TMUS shares is also possible. </p>

Softbank's surprise announcement of a buy-back/de-leveraging program should continue to be well received and we expect that today's limit-up 19% gain can be followed by further upside tomorrow.  As opposed to the one announced ten days ago, Softbank's current buyback will be funded by selling assets that the market is discounting at 60%+ for full price, whilst de-leveraging should mitigate worries on balance sheet stress as private equity valuations fall. Memories from the collapse of the dot-com bubble and the Vodafone Japan/Lehman shock time were likely revived by a 53% share price decline in five weeks and whilst Softbank has been reluctant so far, this is the first time it had the financial firepower from its Alibaba investment to wield. That is likely what they sell to fund this program although monetization of the Sprint/TMUS shares is also possible. 

Softbank Group: Implications of an Unprecedented Buyback and Asset Sale Program

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

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

<p><br/> Softbank Group (SBG) has announced plans to raise up to JPY 4.5 tn (USD 41 bn) in cash, which it will use to repurchase up to USD 18 bn of shares, buy back bonds, repay debt, and add to its cash reserves.آ Thisآ announcement is certainly equity positive on account of the substantial share buybacks, but less credit positive. Details are sketchy, and it is unclear how much of the cash raised will be used to redeem debt and repurchase bonds. The amount would likely depend on the Notes' prices as well. That said, SBG's willingness to buy back debt may support the Notes' pricing in the secondary market, despite the transaction's credit-negative aspects.<br/></p>

  Softbank Group (SBG) has announced plans to raise up to JPY 4.5 tn (USD 41 bn) in cash, which it will use to repurchase up to USD 18 bn of shares, buy back bonds, repay debt, and add to its cash reserves.آ Thisآ announcement is certainly equity positive on account of the substantial share buybacks, but less credit positive. Details are sketchy, and it is unclear how much of the cash raised will be used to redeem debt and repurchase bonds. The amount would likely depend on the Notes' prices as well. That said, SBG's willingness to buy back debt may support the Notes' pricing in the secondary market, despite the transaction's credit-negative aspects. 

Softbank Group - Event Flash - Announces Programme To Raise Up To JPY 4.5 Tn - Lucror Analytics

Leonard Law, CFA

<p>The Asia HY Trade Recommendations report for March 2020 includes a summary of our recommendations and high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. </p>

The Asia HY Trade Recommendations report for March 2020 includes a summary of our recommendations and high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - March 2020 - Lucror Analytics

Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Quantitative Analysis

<div><p>Last year was Tuesday and Wednesday. The two years before were too. The year before that was Monday and Tuesday. Five years ago was Wednesday and Thursday, as it was the year before that. </p></div><div><h2>This Year it is Friday and Monday</h2></div><div><p>What is it about Tuesday and Wednesday? The answer, as it is every year (on days such as the above), is hundreds of billions of yen of flows from people who are obliged to allocate money on these particular days.</p></div><div><p>For most, the benchmark is this upcoming Friday.</p></div><div><p></p></div>

Last year was Tuesday and Wednesday. The two years before were too. The year before that was Monday and Tuesday. Five years ago was Wednesday and Thursday, as it was the year before that. This Year it is Friday and MondayWhat is it about Tuesday and Wednesday? The answer, as it is every year (on days such as the above), is hundreds of billions of yen of flows from people who are obliged to allocate money on these particular days.For most, the benchmark is this upcoming Friday.

JAPAN DELTA III - The Annual TOPIX Dividend Trade

Expert on Japan Retail and Consumer Markets, JapanConsuming

Michael Causton

Expert on Japan Retail and Consumer Markets

Real Insight on Japanese Consumer Markets

JapanConsuming

JapanConsuming is a specialist research firm producing intelligence on Japanese retail and consumer markets. Founded in 2000, JapanConsuming has become the leading provider of insights on Japanese retailers and consumer trends to retailers, brands, government agencies and investors. As well as a highly regarded monthly report on the market, JapanConsuming produces in-depth reports on retail sectors, seminars on key trends and telephone consulting to investors on trends and retailers.

JapanConsuming was founded by Michael Causton and Roy Larke. 

Thematic (Sector/Industry)

<p>The Japanese government and larger retailers are still gung-ho about cashless payment systems. Cash, which still makes up 60-70% of all transactions in Japan, is a major cost for larger retailers but cashless systems also come with a cost in terms of technology and fees, and smaller vendors are far less impressed so far despite government incentives.</p>

The Japanese government and larger retailers are still gung-ho about cashless payment systems. Cash, which still makes up 60-70% of all transactions in Japan, is a major cost for larger retailers but cashless systems also come with a cost in terms of technology and fees, and smaller vendors are far less impressed so far despite government incentives.

Some Resistance to Cashless Payments in Japan

Japan

SoftBank Group Corp. provides telecommunication services. The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

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Softbank Group (9984 JP)

Softbank Group: Implications of an Unprecedented Buyback and Asset Sale Program

Softbank's surprise announcement of a buy-back/de-leveraging program should continue to be well received and we expect that today's limit-up 19%...

Kirk Boodry

Softbank Group - Event Flash - Announces Programme To Raise Up To JPY 4.5 Tn - Lucror Analytics

Softbank Group (SBG) has announced plans to raise up to JPY 4.5 tn (USD 41 bn) in cash, which it will use to repurchase up to USD 18 bn of shares,...

Lucror Analytics

Asia HY Trade Recommendations - March 2020 - Lucror Analytics

The Asia HY Trade Recommendations report for March 2020 includes a summary of our recommendations and high-conviction ideas. We also provide...

Lucror Analytics

JAPAN DELTA III - The Annual TOPIX Dividend Trade

Last year was Tuesday and Wednesday. The two years before were too. The year before that was Monday and Tuesday. Five years ago was Wednesday and...

Travis Lundy

Some Resistance to Cashless Payments in Japan

The Japanese government and larger retailers are still gung-ho about cashless payment systems. Cash, which still makes up 60-70% of all...

Michael Causton

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