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.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Credit

We view Fosun International as “Medium Risk” on the LARA scale. The diversified and complex investment holdco has grown rapidly since its inception, having capitalised on trends and made sound investments. Fosun's evolving nature is balanced by its founders' strong investment track records. The key risks are the group's debt-funded growth strategy, as well as regulatory and investment risks. The company is reliant on highly subordinated cash flows from its portfolio of businesses for debt servicing, albeit it has the ability to sell or publicly list assets (depending on market conditions). We feel that Fosun's financial policies place the interests of shareholders above those of creditors, as evidenced by the debt-funded growth strategy and investments in younger companies (i.e. not cash flow-generative businesses), especially in the technology space. In addition, the USD Notes have very weak covenants and are structurally subordinated. Our Credit Bias on Fosun is “Negative”, in view of the potential impact of COVID-19, especially on the tourism, consumer, banking and insurance sectors. We view Fosun’s corporate governance as “Weak” on the LAGA scale, on account of the group's opaque disclosures and complex corporate structure. The company is controlled by three of its five co-founders: Chairman Guo Guangchang (46%), ex-CEO Wang Qunbin (8%) and ex-CEO Liang Xinjun (18%).

  We view Fosun International as “Medium Risk” on the LARA scale. The diversified and complex investment holdco has grown rapidly since its inception, having capitalised on trends and made sound investments. Fosun's evolving nature is balanced by its founders' strong investment track records. The key risks are the group's debt-funded growth strategy, as well as regulatory and investment risks. The company is reliant on highly subordinated cash flows from its portfolio of businesses for debt servicing, albeit it has the ability to sell or publicly list assets (depending on market conditions).   We feel that Fosun's financial policies place the interests of shareholders above those of creditors, as evidenced by the debt-funded growth strategy and investments in younger companies (i.e. not cash flow-generative businesses), especially in the technology space. In addition, the USD Notes have very weak covenants and are structurally subordinated.   Our Credit Bias on Fosun is “Negative”, in view of the potential impact of COVID-19, especially on the tourism, consumer, banking and insurance sectors.   We view Fosun’s corporate governance as “Weak” on the LAGA scale, on account of the group's opaque disclosures and complex corporate structure. The company is controlled by three of its five co-founders: Chairman Guo Guangchang (46%), ex-CEO Wang Qunbin (8%) and ex-CEO Liang Xinjun (18%). 

Fosun International - Tear Sheet - Lucror Analytics