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 look at agency ratings for Asian issuers. 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 look at agency ratings for Asian issuers.    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 - Agency Ratings For Asian Issuers - Lucror Analytics

The Asia HY Trade Recommendations report for January includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index.

   The Asia HY Trade Recommendations report for January includes a summary of our recommendations, as well as our high-conviction ideas. We also provide relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Recommendations - January 2019 - Lucror Analytics

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Equity Bottom-Up

<ul>
<li>Low correlation to the Thai market, low correlation with Western stock markets, and cheap on a PE basis relative to its sector</li>
<li>Stable cash flow from new contract for FGEN’s San Gabriel plant to sell its entire capacity of 414 MW to Meralco <a href="https://www.smartkarma.com/entities/3527" target="_blank" data-smartkarma-citation="entities:3527:1">Manila Electric Company (MER PM)</a>  until 2024</li>
<li>Geothermal-energy producer EDC has been delisted through a share buyback tender offer, FGEN to benefit from higher equity stake (47% vs 42%) and more control over the firm to implement longer-term strategies</li>
<li>Trades at discount to ASEAN Utilities at 19CE* 6.5x PE and offers much better EPS growth</li>
<li>Risks: Facility breakdowns, uncertainty regarding plans for LNG facility</li>
</ul>* Consensus Estimates


Low correlation to the Thai market, low correlation with Western stock markets, and cheap on a PE basis relative to its sector
Stable cash flow from new contract for FGEN’s San Gabriel plant to sell its entire capacity of 414 MW to Meralco Manila Electric Company (MER PM)  until 2024
Geothermal-energy producer EDC has been delisted through a share buyback tender offer, FGEN to benefit from higher equity stake (47% vs 42%) and more control over the firm to implement longer-term strategies
Trades at discount to ASEAN Utilities at 19CE* 6.5x PE and offers much better EPS growth
Risks: Facility breakdowns, uncertainty regarding plans for LNG facility
* Consensus Estimates

FGEN (FGEN PM): New Contract with Meralco to Support Cash Flow

In this month’s “In-Focus” section, we discuss Corporate Governance in Chinese Companies. Specifically, we highlight: [1] the nascent development of the Chinese corporate governance regime; [2] the lack of strong external examination/review; [3] different types of Chinese public companies; and [4] Lucror’s approach to assessing corporate governance. 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 discuss Corporate Governance in Chinese Companies. Specifically, we highlight: [1] the nascent development of the Chinese corporate governance regime; [2] the lack of strong external examination/review; [3] different types of Chinese public companies; and [4] Lucror’s approach to assessing corporate governance.    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 - Corporate Governance In Chinese Companies - Lucror Analytics

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Energy Development Corporation / Event-Driven

<div>
Yesterday, <a href="https://www.smartkarma.com/entities/4456" target="_blank" data-smartkarma-citation="entities:4456:1">Energy Development (EDC PM)</a>'s Board of Directors approved the voluntary delisting of EDC from the Philippine Stock Exchange (PSE), at a Tender Offer price of P7.25/share for up to 2,040,006,713 shares or 10.9% of issued shares. EDC's major shareholders, <a href="https://www.smartkarma.com/entities/162" target="_blank" data-smartkarma-citation="entities:162:1">First Gen (FGEN PM)</a> and Philippines Renewable Energy Holdings Corporation (a GIC/Macquarie Infrastructure vehicle), will not participate in the Tender Offer.
The Tender Offer price is a 46% premium to the last close and a 30% premium…
</div>


Yesterday, Energy Development (EDC PM)'s Board of Directors approved the voluntary delisting of EDC from the Philippine Stock Exchange (PSE), at a Tender Offer price of P7.25/share for up to 2,040,006,713 shares or 10.9% of issued shares. EDC's major shareholders, First Gen (FGEN PM) and Philippines Renewable Energy Holdings Corporation (a GIC/Macquarie Infrastructure vehicle), will not participate in the Tender Offer.
The Tender Offer price is a 46% premium to the last close and a 30% premium…


Philippines

First Gen Corporation is an independent electric utility company in the Philippines, primarily involved in power generation and distribution. The company operates a diverse portfolio of power plants utilizing natural gas, geothermal, hydro, solar, and wind energy sources. Headquartered in Pasig, Philippines, the company was founded in 1993.

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First Gen (FGEN PM)

Asia HY Monthly - Agency Ratings For Asian Issuers - Lucror Analytics

In this month’s “In-Focus” section, we look at agency ratings for Asian issuers. The Asia Monthly focuses on providing updates on recent events,...

Lucror Analytics

Asia HY Trade Recommendations - January 2019 - Lucror Analytics

The Asia HY Trade Recommendations report for January includes a summary of our recommendations, as well as our high-conviction ideas. We also...

Lucror Analytics

FGEN (FGEN PM): New Contract with Meralco to Support Cash Flow

Low correlation to the Thai market, low correlation with Western stock markets, and cheap on a PE basis relative to its sector Stable cash flow...

A. Stotz Investment Research

Asia HY Monthly - Corporate Governance In Chinese Companies - Lucror Analytics

In this month’s “In-Focus” section, we discuss Corporate Governance in Chinese Companies. Specifically, we highlight: [1] the nascent development...

Lucror Analytics

Energy Development's Voluntary Delisting

Yesterday, Energy Development (EDC PM)'s Board of Directors approved the voluntary delisting of EDC from the Philippine Stock Exchange (PSE), at a...

David Blennerhassett

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