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 on Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage. 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 on Chinese developers’ JV exposure, including typical structures and the JV exposure of the companies under our coverage.    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 - Chinese Developers' JV Exposure - Lucror Analytics

Trung Nguyen

TML Holdings (TMLH) has commenced a series of investor calls to market its offering of USD RegS benchmark-sized 5NC2.5 Notes. The proposed Notes will be benchmarked against the existing TTMTIN curve. We see the need for a premium over the existing TTMTIN curve, given: [1] the weaker structure; and [2] a new-issue premium. We highlight that the TTMTIN 5.5% 24 are yielding the same as the TTMTIN 5.75%. It signals that investors see little structural difference between the Notes, even though they are issued by different entities. We expect the proposed Notes to price at c. 5.25%.

   TML Holdings (TMLH) has commenced a series of investor calls to market its offering of USD RegS benchmark-sized 5NC2.5 Notes.    The proposed Notes will be benchmarked against the existing TTMTIN curve. We see the need for a premium over the existing TTMTIN curve, given: [1] the weaker structure; and [2] a new-issue premium. We highlight that the TTMTIN 5.5% 24 are yielding the same as the TTMTIN 5.75%. It signals that investors see little structural difference between the Notes, even though they are issued by different entities.    We expect the proposed Notes to price at c. 5.25%. 

Tata Motors - Event Flash - Launches 5NC2.5 Notes Offering - Lucror Analytics

The Asia HY Trade Book for the month of May 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 May 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 - May 2021 - Lucror Analytics

The Europe HY Trade Book for May 2021 includes high-conviction trade ideas drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry.

  The Europe HY Trade Book for May 2021 includes high-conviction trade ideas drawn from our European HY coverage universe, along with relative-value scatter plots and tables by industry. 

Europe HY Trade Book - May 2021 - Lucror Analytics

Tata Motors’ Q4 and FY 2020-21 results were strong, with significant improvement in profitability thanks to the company's cost-saving programme as well as robust sales volumes across segments. The financial risk profile also improved substantially. Liquidity is sound. However, we note that Jaguar Land Rover (JLR) continued to write down its capitalised development assets, with the capitalisation cost being much higher than the industry average (e.g. BMW and Daimler). Five quarters ago, JLR wrote down GBP 3.1 bn "due to slowdown in China and Brexit uncertainties". Higher capitalised costs will bolster EBITDA (costs are understated, while depreciation is not captured). The frequent writing down of development costs suggests that some of these costs should be categorised as operating expenses instead.

  Tata Motors’ Q4 and FY 2020-21 results were strong, with significant improvement in profitability thanks to the company's cost-saving programme as well as robust sales volumes across segments. The financial risk profile also improved substantially. Liquidity is sound.   However, we note that Jaguar Land Rover (JLR) continued to write down its capitalised development assets, with the capitalisation cost being much higher than the industry average (e.g. BMW and Daimler). Five quarters ago, JLR wrote down GBP 3.1 bn "due to slowdown in China and Brexit uncertainties". Higher capitalised costs will bolster EBITDA (costs are understated, while depreciation is not captured). The frequent writing down of development costs suggests that some of these costs should be categorised as operating expenses instead. 

Tata Motors - Earnings Flash - Q4 And FY 2020-21 Results - Lucror Analytics

India

Tata Motors Limited manufactures cars and commercial automotive vehicles. The Company designs, manufactures, and sells heavy, medium, and small commercial vehicles including trucks, tankers, vans, buses, ambulances and minibuses. Tata also manufactures small cars and sports utility vehicles.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Tata Motors Ltd (TTMT IN)

Asia HY Monthly - Chinese Developers' JV Exposure - Lucror Analytics

In this month’s "In-Focus" section, we provide an update on Chinese developers’ JV exposure, including typical structures and the JV exposure of...

Lucror Analytics

Tata Motors - Event Flash - Launches 5NC2.5 Notes Offering - Lucror Analytics

TML Holdings (TMLH) has commenced a series of investor calls to market its offering of USD RegS benchmark-sized 5NC2.5 Notes. The proposed Notes...

Lucror Analytics

Asia HY Trade Book - May 2021 - Lucror Analytics

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

Lucror Analytics

Europe HY Trade Book - May 2021 - Lucror Analytics

The Europe HY Trade Book for May 2021 includes high-conviction trade ideas drawn from our European HY coverage universe, along with...

Lucror Analytics

Tata Motors - Earnings Flash - Q4 And FY 2020-21 Results - Lucror Analytics

Tata Motors’ Q4 and FY 2020-21 results were strong, with significant improvement in profitability thanks to the company's cost-saving programme...

Lucror Analytics

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)