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

Olam: Lots of Corporate Activity in '22/'23 to Unlock Significant Value for Temasek and Minorities

Olam Unlocks Value Through the Sale of 35.4% of Olam Agri to SALIC

Senior Credit Analyst, Lucror Analytics

Leonard Law, CFA

Senior Credit Analyst

Credit

We view Olam as "High Risk" on the LARA scale. This takes into account the risks associated with the: [1] low margins that characterise the commodities supply-chain industry; [2] high working-capital needs for its trading operations; [3] weak leverage; and [4] dependence on banks to extend credit for refinancing. These are balanced by the company's long operating history and diversified business profile in the agricultural commodity industry. Although Olam has strong shareholders (e.g. Temasek Holdings and Mitsubishi Corporation), support is not guaranteed. In our view, the absence of a Change of Control clause under the indenture poses a material risk for bondholders. Our fundamental Credit Bias is "Stable". Olam has emerged relatively unscathed from the COVID-19 crisis, and earnings improved in FY 2020. Negatively, the volatile and erratic working capital movements result in unpredictable FCF generation, which weighs on the credit profile.

  We view Olam as "High Risk" on the LARA scale. This takes into account the risks associated with the: [1] low margins that characterise the commodities supply-chain industry; [2] high working-capital needs for its trading operations; [3] weak leverage; and [4] dependence on banks to extend credit for refinancing. These are balanced by the company's long operating history and diversified business profile in the agricultural commodity industry. Although Olam has strong shareholders (e.g. Temasek Holdings and Mitsubishi Corporation), support is not guaranteed. In our view, the absence of a Change of Control clause under the indenture poses a material risk for bondholders.   Our fundamental Credit Bias is "Stable". Olam has emerged relatively unscathed from the COVID-19 crisis, and earnings improved in FY 2020. Negatively, the volatile and erratic working capital movements result in unpredictable FCF generation, which weighs on the credit profile. 

Olam Group

Olam - Tear Sheet - Lucror Analytics