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

<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

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

<p>Since my last insight on <a href="https://www.smartkarma.com/insights/tkp-3479-a-working-wework" target="_blank" data-smartkarma-citation="insights:35447" rel="noopener">TKP (3479) - A Working Wework?</a> published on the 27th of December 2019, the company's share price has fallen by <strong>78%</strong> with the last<strong> 24%</strong> took place yesterday. TKP's business has been badly hit by the spread of COVID-19 that made its market value halved. But the real juice came when <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> threatened to not inject more money into WeWork.</p>
<div class="content-highlight">
<p><strong>It is already trading below book value and potentially there will be some buying from BOJ thus it is recommended to cover the short at the current level. </strong></p>
<p><strong>For short term traders, there is a high chance that the share price could pop from here albeit only for a while as the business fundamental remains weak. </strong></p>
</div>

Since my last insight on TKP (3479) - A Working Wework? published on the 27th of December 2019, the company's share price has fallen by 78% with the last 24% took place yesterday. TKP's business has been badly hit by the spread of COVID-19 that made its market value halved. But the real juice came when Softbank Group (9984 JP) threatened to not inject more money into WeWork.

It is already trading below book value and potentially there will be some buying from BOJ thus it is recommended to cover the short at the current level. 
For short term traders, there is a high chance that the share price could pop from here albeit only for a while as the business fundamental remains weak. 


Managing Director, Zero One, Zero One

Vincent Fernando, CFA

Managing Director, Zero One

Zero One

Founded in 2015, Zero One produces independent investment research and provides corporate finance advisory services with a focus on both listed and private technology companies. Founder Vincent Fernando has over 20 years of experience in US and Asia capital markets.

Independent Investment Research

Private Capital Markets

<ul>
<li>
<strong>Rescue cash for Oyo.</strong> Oyo has raised US$807m of a US$1.5bn funding round according to ETtech.com and other media sources on March 17th. Funding has come from Oyo's founder (US$300m) and Softbank's Vision Fund (SVF India, US$507m). </li>
<li>
<strong>This is a sign of weakness, not strength.</strong> While one could see this as a sign that Oyo will perform better, we don't view this as a vote of confidence in the business. Funding is coming from the two most exposed parties backing Oyo and is more of a rescue line for the company. It's also reportedly at a downward valuation based on media reports.</li>
<li>
<strong>We recommend avoiding Softbank's deep discount to NAV. </strong>Deep discounts can persist or worsen when the market is worried about further NAV declines and also that management is making negative return-on-capital decisions.</li>
</ul>



Rescue cash for Oyo. Oyo has raised US$807m of a US$1.5bn funding round according to ETtech.com and other media sources on March 17th. Funding has come from Oyo's founder (US$300m) and Softbank's Vision Fund (SVF India, US$507m). 

This is a sign of weakness, not strength. While one could see this as a sign that Oyo will perform better, we don't view this as a vote of confidence in the business. Funding is coming from the two most exposed parties backing Oyo and is more of a rescue line for the company. It's also reportedly at a downward valuation based on media reports.

We recommend avoiding Softbank's deep discount to NAV. Deep discounts can persist or worsen when the market is worried about further NAV declines and also that management is making negative return-on-capital decisions.


Softbank Vision Fund Adding More Cash into Oyo in Reported Down Round, Avoid Softbank NAV Discount

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 (ADR) (SFTBY US)

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

TKP (3479): After 78% Down - What to Do?

Since my last insight on TKP (3479) - A Working Wework? published on the 27th of December 2019, the company's share price has fallen by 78% with...

Henry Soediarko

Softbank Vision Fund Adding More Cash into Oyo in Reported Down Round, Avoid Softbank NAV Discount

Rescue cash for Oyo. Oyo has raised US$807m of a US$1.5bn funding round according to ETtech.com and other media sources on March 17th. Funding...

Vincent Fernando, CFA

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52-week Range

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