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

Adani Ports & Special Economic Zone / Credit

Adani Ports and Special Economic Zone operates a shipping port on the west coast of India.  The Company's port provides services for bulk and container cargo, crude oil, and railway and other added services.

Adani Ports & Special Economic Zone (ADSEZ IN)

<ul>
<li>The US indictment of key executives is a material credit negative for the Adani Group, with the allegations being more serious than those from Hindenburg Research’s short-sell report in January 2023.</li>
<li>In the near term, the US indictment is likely to constrain the group’s access to financing, particularly in the offshore market.</li>
<li>We note that the Justice Department's charges are directed at the individual executives, not at Adani Green Energy or other group entities.</li>
</ul>


The US indictment of key executives is a material credit negative for the Adani Group, with the allegations being more serious than those from Hindenburg Research’s short-sell report in January 2023.
In the near term, the US indictment is likely to constrain the group’s access to financing, particularly in the offshore market.
We note that the Justice Department's charges are directed at the individual executives, not at Adani Green Energy or other group entities.


Adani Ports - Event Flash - US Charges Gautam Adani And 2 AGEL Executives - Lucror Analytics

China Vanke Co., Ltd. operates real estate development businesses.  The Company provides housing renovation, housing loans, real estate brokerage, and other businesses. China Vanke also operates logistics, material supply, and other businesses.

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Gajah Tunggal, ReNew Energy, Adani Green Energy, Bharti Airtel, UPL Limited</li>
<li>Treasuries fell yesterday, with yields up 1-3 bps across the curve following a soft auction of 20Y notes.</li>
<li>The yield on the 2Y UST rose 3 bps to 4.32%, while that on the 10Y UST was up 1 bp at 4.41%.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: China Vanke, Gajah Tunggal, ReNew Energy, Adani Green Energy, Bharti Airtel, UPL Limited
Treasuries fell yesterday, with yields up 1-3 bps across the curve following a soft auction of 20Y notes.
The yield on the 2Y UST rose 3 bps to 4.32%, while that on the 10Y UST was up 1 bp at 4.41%.


Xiaomi Corporation manufactures communication equipment and parts. The Company produces and sells mobile phones, smart phone software,  set-top boxes, and related accessories. Xiaomi markets its products worldwide.

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&amp;H), Yinson Production, Xiaomi Corp, ReNew Energy</li>
<li>In the US, October housing starts declined 3.1% m-o-m to an annualised 1.31 mn units (-1.5% e / -1.9% revised p), the slowest pace in three months as builders put off projects in the wake of hurricanes Helene and Milton.</li>
<li>Meanwhile, October building permits (a proxy for future construction) eased 0.6% m-o-m to an annualised 1.42 mn units.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Health and Happiness (H&amp;H), Yinson Production, Xiaomi Corp, ReNew Energy
In the US, October housing starts declined 3.1% m-o-m to an annualised 1.31 mn units (-1.5% e / -1.9% revised p), the slowest pace in three months as builders put off projects in the wake of hurricanes Helene and Milton.
Meanwhile, October building permits (a proxy for future construction) eased 0.6% m-o-m to an annualised 1.42 mn units.


PT Gajah Tunggal Tbk manufactures goods made of rubber, primarily tires and tubes for vehicles. Through its subsidiaries, the Company also manufactures nylon cords, polyesters, ethylene glycol, petrochemical, nylon filament yarns, polyester-chips as raw material for nylon cords and tire yarns as well as synthetic rubber and rims. Gajah Tunggal also trades car accessories.

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Gajah Tunggal, Lenovo</li>
<li>In the US, advance retail sales came in slightly above expectations at 0.4% m-o-m in October (0.3% e / 0.8% revised p), driven by higher auto sales. In addition, retail sales growth for September was revised upwards to 0.8% (from 0.4%). Retail sales excluding auto expanded 0.1% m-o-m (0.3% e / 1.0% revised p).</li>
<li>Separately, industrial production fell 0.3% m-o-m in October (-0.4% e / -0.5% revised p), owing to the Boeing machinist strike and lingering impact from hurricanes Milton and Helene.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Gajah Tunggal, Lenovo
In the US, advance retail sales came in slightly above expectations at 0.4% m-o-m in October (0.3% e / 0.8% revised p), driven by higher auto sales. In addition, retail sales growth for September was revised upwards to 0.8% (from 0.4%). Retail sales excluding auto expanded 0.1% m-o-m (0.3% e / 1.0% revised p).
Separately, industrial production fell 0.3% m-o-m in October (-0.4% e / -0.5% revised p), owing to the Boeing machinist strike and lingering impact from hurricanes Milton and Helene.


Wynn Macau, Limited owns and operates Wynn Macau, a destination casino resort currently featuring hotel rooms and suites, a casino, casual and fine dining restaurants, retail space and leisure amenities.

<ul>
<li>US services-sector activity unexpectedly surged in October, reaching its highest level in over two years, with employment also showing notable improvement.</li>
<li>The ISM non-manufacturing PMI rose to 56.0 in October, from 54.9 in September and above the consensus projection of 53.8.</li>
<li>The US trade deficit soared to its highest level in nearly two and a half years in September, as businesses increased imports to satisfy strong domestic demand and prepare for anticipated higher tariffs on goods. </li>
</ul>


US services-sector activity unexpectedly surged in October, reaching its highest level in over two years, with employment also showing notable improvement.
The ISM non-manufacturing PMI rose to 56.0 in October, from 54.9 in September and above the consensus projection of 53.8.
The US trade deficit soared to its highest level in nearly two and a half years in September, as businesses increased imports to satisfy strong domestic demand and prepare for anticipated higher tariffs on goods. 


Lucror Analytics - Morning Views Asia - November 6, 2024

Based in Singapore, Leonard covers Asian high yield and crossover corporate credits. Prior to joining Lucror in 2017, he was an Associate Analyst with Moody’s Investors Service for three years, where he was responsible for credit analysis and research for a portfolio of South and Southeast Asian corporates. Previously, Leonard spent two years in ANZ Banking Group’s graduate program, where he held a number of roles, including credit risk.

Leonard holds a Bachelor of Business Administration from the National University of Singapore and is a Chartered Financial Analyst.