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

The Asia HY Trade Recommendations report for June 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 June 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 - June 2019 - Lucror Analytics

Telco/Internet specialist

Kirk Boodry

Redex Research

Equity Bottom-Up

We thought it might be interesting to take a closer look at Softbank's aspirational targets for investments of up to ¥200 trillion (US$ 1.8 trillion) in twenty years. That would be a 10x return on TWO vision funds over 20 years and implies a net present value for investments above ¥20K/share.  If this target was set twenty years ago, Softbank would need to own Apple and Amazon outright or 30% of all the major Internet companies.  It would have been technically possible but there are challenges (investing at the right time and avoiding failed companies or investments that do not grow) that make it unlikely. Recent listings for Slack (43% from reference price, +73% for VF) and Uber (flat from IPO, +28% for VF) highlight the potential upside and challenges.  We also think Softbank's publication of a valuation target is consistent with recent news flow on a second Vision Fund and/or an IPO of Vision Fund I.

We thought it might be interesting to take a closer look at Softbank's aspirational targets for investments of up to ¥200 trillion (US$ 1.8 trillion) in twenty years. That would be a 10x return on TWO vision funds over 20 years and implies a net present value for investments above ¥20K/share.  If this target was set twenty years ago, Softbank would need to own Apple and Amazon outright or 30% of all the major Internet companies.  It would have been technically possible but there are challenges (investing at the right time and avoiding failed companies or investments that do not grow) that make it unlikely. Recent listings for Slack (43% from reference price, +73% for VF) and Uber (flat from IPO, +28% for VF) highlight the potential upside and challenges.  We also think Softbank's publication of a valuation target is consistent with recent news flow on a second Vision Fund and/or an IPO of Vision Fund I. 

Softbank G: Unpacking the ¥200 Trillion, 20-Year Investment Value Target; Slack IPO Adds ¥30/Share

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar. 

Lucror Analytics - Morning Views Asia - 24 Jun 2019

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

As per media reports, <a href="https://www.smartkarma.com/entities/alibaba-group-holding-ltd" target="_blank" data-smartkarma-citation="entities:787:1">Alibaba Group Holding (BABA US)</a> plans to raise around US$20bn via a secondary listing in Hong Kong. 
Since most people investing in Asia will already be familiar with the company, I'm not going to spend time looking at the rationale. If the listing happens, it will be more of a placement rather than an IPO, thus, I'll instead focus on the flows from stock connect and the impact that the listing might have in terms of index inclusion/changes to the MSCI and HSI set of indices.

As per media reports, Alibaba Group Holding (BABA US) plans to raise around US$20bn via a secondary listing in Hong Kong. 
Since most people investing in Asia will already be familiar with the company, I'm not going to spend time looking at the rationale. If the listing happens, it will be more of a placement rather than an IPO, thus, I'll instead focus on the flows from stock connect and the impact that the listing might have in terms of index inclusion/changes to the MSCI and HSI set of indices.

Alibaba IPO/Secondary Listing - The Real IPO Only Begins on the 11th Day Post Listing

Softbank held its annual shareholders' meeting yesterday with most of the commentary centered on the company's investment focus and a second Vision Fund.  The company had no comment on the DoJ ruling for Sprint/TMUS which is expected soon even as press reports indicate a potential deal to sell assets to DISH could be near.

Softbank held its annual shareholders' meeting yesterday with most of the commentary centered on the company's investment focus and a second Vision Fund.  The company had no comment on the DoJ ruling for Sprint/TMUS which is expected soon even as press reports indicate a potential deal to sell assets to DISH could be near. 

Softbank Group: A Few Relevant Comments from Shareholders' Meeting

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 (9984 JP)

Asia HY Trade Recommendations - June 2019 - Lucror Analytics

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

Lucror Analytics

Lucror Analytics - Morning Views Asia - 24 Jun 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Alibaba IPO/Secondary Listing - The Real IPO Only Begins on the 11th Day Post Listing

As per media reports, Alibaba Group Holding (BABA US) plans to raise around US$20bn via a secondary listing in Hong Kong. Since most people...

Sumeet Singh

Softbank Group: A Few Relevant Comments from Shareholders' Meeting

Softbank held its annual shareholders' meeting yesterday with most of the commentary centered on the company's investment focus and a second Vision...

Kirk Boodry

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Asia HY Trade Recommendations - June 2019 - Lucror Analytics

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

Lucror Analytics

Softbank G: Unpacking the ¥200 Trillion, 20-Year Investment Value Target; Slack IPO Adds ¥30/Share

We thought it might be interesting to take a closer look at Softbank's aspirational targets for investments of up to ¥200 trillion (US$ 1.8...

Kirk Boodry

Lucror Analytics - Morning Views Asia - 24 Jun 2019

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region,...

Lucror Analytics

Alibaba IPO/Secondary Listing - The Real IPO Only Begins on the 11th Day Post Listing

As per media reports, Alibaba Group Holding (BABA US) plans to raise around US$20bn via a secondary listing in Hong Kong. Since most people...

Sumeet Singh

Softbank Group: A Few Relevant Comments from Shareholders' Meeting

Softbank held its annual shareholders' meeting yesterday with most of the commentary centered on the company's investment focus and a second Vision...

Kirk Boodry