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

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar. 

Lucror Analytics - Morning Views Asia - 26 Jul 2019

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

The Wall Street Journal reports that Softbank Group will approve a $40bn commitment for a second Vision Fund (SVF2) as early as today (<a href="https://www.wsj.com/articles/softbank-to-greenlight-40-billion-investment-in-second-vision-fund-11563993379" target="_blank" rel="noopener">article here, behind paywall</a>). In addition, it has reportedly picked up new limited partners in Goldman Sachs, Apple, the Kazakh government, and Standard Chartered with Microsoft also in talks to join in.  That is a good start, but considering previously discussed targets of SVF2 being as large as the original, we expect an aggressive fund-raising campaign is still ahead. At $40bn, Softbank’s contribution will be higher this time around and signals confidence that Sprint/TMUS merger approval really is at hand.

The Wall Street Journal reports that Softbank Group will approve a $40bn commitment for a second Vision Fund (SVF2) as early as today (article here, behind paywall). In addition, it has reportedly picked up new limited partners in Goldman Sachs, Apple, the Kazakh government, and Standard Chartered with Microsoft also in talks to join in.  That is a good start, but considering previously discussed targets of SVF2 being as large as the original, we expect an aggressive fund-raising campaign is still ahead. At $40bn, Softbank’s contribution will be higher this time around and signals confidence that Sprint/TMUS merger approval really is at hand.

Softbank Group: Another Step Closer to Vision Fund 2

Lucror Analytics - Morning Views Asia - 25 Jul 2019

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

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

Asia HY Trade Recommendations - July 2019 - Lucror Analytics

Equity Capital Markets

WeWork continues to progress towards an IPO that could come as early as the end of this year. It had filed a confidential prospectus with the SEC already,  is reportedly in talks to buy in its India affiliate for $1.9bn,  and is also talking to banks to raise $3-4bn in debt funding to reassure potential equity investors it has sufficient resources to reach break-even.Whilst eye-popping operating losses have generated most of the headlines, we see a path to profitability over the mid-term. The main question is whether anticipated growth supports a valuation of $20-$47bn based on previous funding rounds. We think that even the bottom of that range is too high based on our own preliminary forecasts, which generate an equity value of $12bn whilst revenue multiples suggest a value of $9-22bn.In this report we talk about the sector opportunity, provide detail on our forecasts and valuation, and have included a list of suggested topics/questions for management. The company is reportedly considering an analyst day later this month in NYC, which could go some way in clarifying outstanding issues.

WeWork continues to progress towards an IPO that could come as early as the end of this year. It had filed a confidential prospectus with the SEC already,  is reportedly in talks to buy in its India affiliate for $1.9bn,  and is also talking to banks to raise $3-4bn in debt funding to reassure potential equity investors it has sufficient resources to reach break-even.Whilst eye-popping operating losses have generated most of the headlines, we see a path to profitability over the mid-term. The main question is whether anticipated growth supports a valuation of $20-$47bn based on previous funding rounds. We think that even the bottom of that range is too high based on our own preliminary forecasts, which generate an equity value of $12bn whilst revenue multiples suggest a value of $9-22bn.In this report we talk about the sector opportunity, provide detail on our forecasts and valuation, and have included a list of suggested topics/questions for management. The company is reportedly considering an analyst day later this month in NYC, which could go some way in clarifying outstanding issues.

WeWork: Even $20bn Is a Stretch Valuation - A Deep Dive and Closer Look at Investment Issues

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)

Lucror Analytics - Morning Views Asia - 26 Jul 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Softbank Group: Another Step Closer to Vision Fund 2

The Wall Street Journal reports that Softbank Group will approve a $40bn commitment for a second Vision Fund (SVF2) as early as today (article...

Kirk Boodry

Lucror Analytics - Morning Views Asia - 25 Jul 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Asia HY Trade Recommendations - July 2019 - Lucror Analytics

The Asia HY Trade Recommendations report for July includes a summary of our recommendations, as well as our high-conviction ideas. We also...

Lucror Analytics

WeWork: Even $20bn Is a Stretch Valuation - A Deep Dive and Closer Look at Investment Issues

WeWork continues to progress towards an IPO that could come as early as the end of this year. It had filed a confidential prospectus with the SEC...

Kirk Boodry

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)