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 discuss variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults. 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 variable interest entities (VIEs) in China, including recent developments in China and the US that may complicate the future use of VIEs. We also give an overview of recent bond defaults.   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 - Chinese Variable Interest Entities - Lucror Analytics

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Equity Bottom-Up

Olam, Frencken, YZJ, First Resources & UMS Led Most Actives in August

Olam’s H1/21 earnings were robust, with strong EBIT growth at OFI and OGA. Leverage has weakened temporarily due to the Olde Thompson acquisition. That said, we expect leverage to improve, given the cash infusion from the July rights issuance and earnings contribution from the newly acquired business. Going forward, the key credit consideration will be the re-organisation of Olam’s debt structure for its three operating entities. Management highlighted that this is still a work in progress, though it should be finalised by end-2021. We revise our LARA to "Medium Risk" from "High Risk", as we expect Temasek to remain the majority shareholder of Olam, as well as of OFI and OGA after their separate listings. We believe the Temasek ownership is critical as it will allow the company to maintain strong access to financing, which is the lifeblood of Olam's trading-oriented business model.

  Olam’s H1/21 earnings were robust, with strong EBIT growth at OFI and OGA. Leverage has weakened temporarily due to the Olde Thompson acquisition. That said, we expect leverage to improve, given the cash infusion from the July rights issuance and earnings contribution from the newly acquired business.   Going forward, the key credit consideration will be the re-organisation of Olam’s debt structure for its three operating entities. Management highlighted that this is still a work in progress, though it should be finalised by end-2021.   We revise our LARA to "Medium Risk" from "High Risk", as we expect Temasek to remain the majority shareholder of Olam, as well as of OFI and OGA after their separate listings. We believe the Temasek ownership is critical as it will allow the company to maintain strong access to financing, which is the lifeblood of Olam's trading-oriented business model. 

Olam International - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

In this month’s "In-Focus" section, we discuss Chinese developers’ urban redevelopment businesses, including local governments' role in urban renewal projects and the various redevelopment models, as well as the impact of such projects on companies' financials. We also give an overview of recent bond defaults. 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 Chinese developers’ urban redevelopment businesses, including local governments' role in urban renewal projects and the various redevelopment models, as well as the impact of such projects on companies' financials. We also give an overview of recent bond defaults.   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 - Chinese Developers’ Urban Redevelopment Businesses - Lucror Analytics

Key Singapore Market Moves and Flows in July

Singapore

Olam Group Limited is a global food and agri-business that sources, processes, packages, and merchandises agricultural products. It offers a wide range of food ingredients, feed, and fiber, including cocoa, coffee, nuts, spices, grains, and edible oils, as well as packaged foods. The company was founded in 1989 and is headquartered in Singapore.

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Olam (OLG SP)

Asia HY Monthly - Chinese Variable Interest Entities - Lucror Analytics

In this month’s "In-Focus" section, we discuss variable interest entities (VIEs) in China, including recent developments in China and the US that...

Lucror Analytics

Olam, Frencken, YZJ, First Resources & UMS Led Most Actives in August

Singapore’s 100 most traded stocks over the past eight months represent 70% of the total market value of all stocks listed on the exchange....

Singapore Exchange Ltd (SGX)

Olam International - Earnings Flash - H1 FY 2021 Results - Lucror Analytics

Olam’s H1/21 earnings were robust, with strong EBIT growth at OFI and OGA. Leverage has weakened temporarily due to the Olde Thompson...

Lucror Analytics

Asia HY Monthly - Chinese Developers’ Urban Redevelopment Businesses - Lucror Analytics

In this month’s "In-Focus" section, we discuss Chinese developers’ urban redevelopment businesses, including local governments' role in urban...

Lucror Analytics

Key Singapore Market Moves and Flows in July

The STI’s 1.2% gain in July brought its price gain over the first seven months to 11.4%, with dividends boosting the total return to 13.2%,...

Singapore Exchange Ltd (SGX)

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