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

<p><br/> The Asia HY Trade Book for the month of November includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.<br/></p>

  The Asia HY Trade Book for the month of November includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index. 

Asia HY Trade Book - November 2021 - Lucror Analytics

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

<ul>
<li>Paytm (PAYTM IN) raised around US$2.5bn via selling a mix of primary and secondary shares in its India IPO.</li>
<li>The company is backed by <a href="https://www.smartkarma.com/entities/ant-group-co-ltd" target="_blank" data-smartkarma-citation="entities:24240:1" rel="noopener">Ant Financial Services Group (6688 HK)</a>, <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a> and counts <a href="https://www.smartkarma.com/entities/berkshire-hathaway-inc-cl-a" target="_blank" data-smartkarma-citation="entities:1044:1" rel="noopener">Berkshire Hathaway Inc Cl A (BRK/A US)</a> among its investors.</li>
<li>In this note, we will talk about the subscription levels and the trading dynamics.</li>
</ul>


Paytm (PAYTM IN) raised around US$2.5bn via selling a mix of primary and secondary shares in its India IPO.
The company is backed by Ant Financial Services Group (6688 HK), Softbank Group (9984 JP) and counts Berkshire Hathaway Inc Cl A (BRK/A US) among its investors.
In this note, we will talk about the subscription levels and the trading dynamics.


Paytm IPO Trading - Largest IPO with Lowest Coverage, Skipped by Domestics

Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Last Week in Event SPACE: Softbank, Sydney Airports, SPH, SingTel, Oil Search, Japex/Inpex, Nippo

Trung Nguyen

<p><br/> In our view, Softbank Group's (SBG) Q2/21-22 results were weak due to the sell-off in Chinese tech stocks. The group's new share buyback programme will likely weaken the credit further. LTV is increasing, but remains below the company’s 25% threshold. SBG has assets yet to be monetised, including the remaining Alibaba and T-Mobile stakes (c. JPY 1,700 bn), the winding down of SB Northstar, and the sale of Arm Ltd to Nvidia Corp. Thus, liquidity should suffice to service the group's debt and fund the share buyback programme.<br/></p>

  In our view, Softbank Group's (SBG) Q2/21-22 results were weak due to the sell-off in Chinese tech stocks. The group's new share buyback programme will likely weaken the credit further. LTV is increasing, but remains below the company’s 25% threshold. SBG has assets yet to be monetised, including the remaining Alibaba and T-Mobile stakes (c. JPY 1,700 bn), the winding down of SB Northstar, and the sale of Arm Ltd to Nvidia Corp. Thus, liquidity should suffice to service the group's debt and fund the share buyback programme. 

Softbank Group - Earnings Flash - Q2 FY 2021-22 Results - Lucror Analytics

Travis Lundy

<p>Today with its earnings report (<a href="https://group.softbank/system/files/pdf/ir/financials/financial_reports/financial-report_q2fy2021_01_en.pdf" target="_blank" rel="noopener">report</a>, and 49MB pdf <a href="https://group.softbank/system/files/pdf/ir/presentations/2021/earnings-presentation_q2fy2021_01_en.pdf" target="_blank" rel="noopener">presentation</a>), <a href="https://www.smartkarma.com/entities/softbank-group-corp" target="_blank" data-smartkarma-citation="entities:315:1" rel="noopener">Softbank Group (9984 JP)</a><a href="https://group.softbank/system/files/news/press/2021/20211108/pdf/20211108_en.pdf" target="_blank" rel="noopener">announced a buyback</a>. It is ¥1 trillion or <em>nine billlyun dollars.</em> </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/240/432/original/billiondollarsdrevilgif.gif?1636379447" class="editor-image img-responsive" data-smartkarma-image-id="240432"></figure><p></p></section><p>I will let <a href="https://www.smartkarma.com/profiles/kirk-boodry" target="_blank" data-smartkarma-citation="accounts:1920" rel="noopener">Kirk Boodry</a> comment on earnings after the press conference. He has written in <a href="https://www.smartkarma.com/insights/softbank-group-q2-21-results-reaction-softbank-may-intend-to-use-arm-proceeds-for-buyback" target="_blank" data-smartkarma-citation="insights:60343" rel="noopener"><em>Softbank Group Q2 21 Results Reaction: Softbank May Intend to Use ARM Proceeds for Buyback</em></a>.  I urge you to check his piece both for a comment on Q2 earnings - much of which he has already previewed in discussion comments* - and for an updated look at the Discount to NAV calculations (I have my own which at this point exactly matches his, but his chart is much prettier).</p><div class="content-remarks"><p>* Yeah, those are really useful on occasion, and I urge Smartkarma readers to tailor their watchlists (people, tickers, and "verticals" to follow) and to use the appreciate button on insights you find valuable (which will get you a notification when the author adds a discussion comment to the bottom of the insight).</p></div><h3>The Buyback</h3><p>The buyback programme as announced is to spend up to ¥1 trillion buying back up to 250,000,000 shares. Whichever limit is reached first is the limit for the programme. Of course, Softbank has a history of announcing new programmes before the old one is even finished if it has not had the appropriate effect. </p><p>In this case, the appropriate effect would be a narrowing of the Discount to NAV. </p><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/240/412/original/Screenshot+2021-11-08+at+7.50.26+PM.png?1636372255" class="editor-image img-responsive" data-smartkarma-image-id="240412"></figure></section><p>The buybacks in summer and winter of 2020 saw ¥500bn bought in a quarter where this one suggests a ¥1 trillion buyback could take a year. </p><p>There are reasons for that. Some obvious, some less so.</p><p>And it is important to look at the modalities. </p>

Today with its earnings report (report, and 49MB pdf presentation), Softbank Group (9984 JP)announced a buyback. It is ¥1 trillion or nine billlyun dollars. I will let Kirk Boodry comment on earnings after the press conference. He has written in Softbank Group Q2 21 Results Reaction: Softbank May Intend to Use ARM Proceeds for Buyback.  I urge you to check his piece both for a comment on Q2 earnings - much of which he has already previewed in discussion comments* - and for an updated look at the Discount to NAV calculations (I have my own which at this point exactly matches his, but his chart is much prettier).* Yeah, those are really useful on occasion, and I urge Smartkarma readers to tailor their watchlists (people, tickers, and "verticals" to follow) and to use the appreciate button on insights you find valuable (which will get you a notification when the author adds a discussion comment to the bottom of the insight).The BuybackThe buyback programme as announced is to spend up to ¥1 trillion buying back up to 250,000,000 shares. Whichever limit is reached first is the limit for the programme. Of course, Softbank has a history of announcing new programmes before the old one is even finished if it has not had the appropriate effect. In this case, the appropriate effect would be a narrowing of the Discount to NAV. The buybacks in summer and winter of 2020 saw ¥500bn bought in a quarter where this one suggests a ¥1 trillion buyback could take a year. There are reasons for that. Some obvious, some less so.And it is important to look at the modalities. 

Softbank Buyback - $9 Biiiilllyun Dollars

Japan

SoftBank Group Corp provides telecommunication services.  The Company also operates ADSL (Asymmetric Digital Subscriber Line) and fiber optic high-speed Internet connection, e-Commerce businesses, and Internet based advertising and auction businesses.

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Softbank Group (ADR) (SFTBY US)

Asia HY Trade Book - November 2021 - Lucror Analytics

The Asia HY Trade Book for the month of November includes a summary of our recommendations, as well as our high-conviction ideas. The report also...

Lucror Analytics

Paytm IPO Trading - Largest IPO with Lowest Coverage, Skipped by Domestics

Paytm (PAYTM IN) raised around US$2.5bn via selling a mix of primary and secondary shares in its India IPO. In this note, we will talk about the...

Sumeet Singh

Last Week in Event SPACE: Softbank, Sydney Airports, SPH, SingTel, Oil Search, Japex/Inpex, Nippo

The weekend is here! Pour yourself a coffee, grab a comfortable seat, and sift through a brief summary of insights on various events discussed...

David Blennerhassett

Softbank Group - Earnings Flash - Q2 FY 2021-22 Results - Lucror Analytics

In our view, Softbank Group's (SBG) Q2/21-22 results were weak due to the sell-off in Chinese tech stocks. The group's new share buyback...

Lucror Analytics

Softbank Buyback - $9 Biiiilllyun Dollars

Nine Biiilllyun Dollars. That is a big buyback. It is smaller than last year's but there is less float to buy back than there was last year. And a...

Travis Lundy

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