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

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: [1] the low margins and high volatility that characterise the commodities supply-chain industry; [2] higher working capital needs for trading; and [3] the weak financial profile, with high leverage and low visibility of cash flows. Our view also considers the company's long operating history, as well as its diversified business profile in the agricultural commodity industry. While Olam has strong shareholders such as Temasek Holdings and Mitsubishi Corporation, support is not guaranteed. In our view, the absence of a Change of Control clause under the indenture is a material risk for bondholders. Our Credit Bias is "Negative". This is due to the inherent volatility of Olam’s operating environment, which increases the risks associated with the company’s weak financial profile. We view Olam's corporate governance as “Weak” on the LAGA scale. This takes into account the: [1] large and unwieldy Board, whose members lack agricultural trading experience; [2] aggressive accounting policies; and [3] poor regulatory oversight, given its listing on the Singapore Exchange (SGX). These factors are partly mitigated by Olam's long operating track record since its listing in 2005. In addition, we note that the company’s investor engagement and level of disclosure have improved over the past 4-5 years.

  We view Olam as "High Risk" on the LARA scale. This takes into account the risks associated with: [1] the low margins and high volatility that characterise the commodities supply-chain industry; [2] higher working capital needs for trading; and [3] the weak financial profile, with high leverage and low visibility of cash flows. Our view also considers the company's long operating history, as well as its diversified business profile in the agricultural commodity industry. While Olam has strong shareholders such as Temasek Holdings and Mitsubishi Corporation, support is not guaranteed. In our view, the absence of a Change of Control clause under the indenture is a material risk for bondholders.   Our Credit Bias is "Negative". This is due to the inherent volatility of Olam’s operating environment, which increases the risks associated with the company’s weak financial profile.   We view Olam's corporate governance as “Weak” on the LAGA scale. This takes into account the: [1] large and unwieldy Board, whose members lack agricultural trading experience; [2] aggressive accounting policies; and [3] poor regulatory oversight, given its listing on the Singapore Exchange (SGX). These factors are partly mitigated by Olam's long operating track record since its listing in 2005. In addition, we note that the company’s investor engagement and level of disclosure have improved over the past 4-5 years. 

Olam Group

Olam - Tear Sheet - Lucror Analytics