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

As in 2018, Brexit and US-China trade relations took centre stage in 2019. With a phase-one trade deal between the US and China reached and an uncontrolled Brexit averted for the time being, almost all asset classes recorded strong performance during the year, including European HY. Going forward, Brexit and US-China trade relations may well remain major market drivers. Other potential drivers include the coronavirus outbreak in China, tensions in the Middle East and the development of US-EU trade relations. Our HY investment outlook opens with a discussion on the key macro developments that defined 2019, and the outlook for 2020. We then provide an overview of the HY market performance, and offer our top trade ideas for the year. Finally, we zoom in on the developments for key sectors and companies in our coverage universe, including outlooks and trade recommendations.

   As in 2018, Brexit and US-China trade relations took centre stage in 2019. With a phase-one trade deal between the US and China reached and an uncontrolled Brexit averted for the time being, almost all asset classes recorded strong performance during the year, including European HY. Going forward, Brexit and US-China trade relations may well remain major market drivers. Other potential drivers include the coronavirus outbreak in China, tensions in the Middle East and the development of US-EU trade relations.    Our HY investment outlook opens with a discussion on the key macro developments that defined 2019, and the outlook for 2020. We then provide an overview of the HY market performance, and offer our top trade ideas for the year. Finally, we zoom in on the developments for key sectors and companies in our coverage universe, including outlooks and trade recommendations. 

European High Yield Outlook 2020 - Lucror Analytics

Differentiated global TMT & Internet Research

New Street Research Insights

New Street Research

Research is provided by our team of experienced analysts. Our work is idea driven, based on independence of thought, sector expertise, and firmly focused on fundamentals and valuation of telecoms and internet names globally. New Street is headquartered in London with offices in New York, Singapore and Australia. 

New Street Research is an independent, partner-owned, research firm specialising in equity and debt research. Our equity research embraces the following sectors:

Pan European Telecom Services and Cable
US Telecoms, Cable, Satellite and Towers
Global Emerging Market Telecoms
Japan Telecoms
Asian Internet
Pan European Healthcare
US Healthcare
Japanese Healthcare

We also provide debt research on:
Pan European Telecom Services and Cable

Event-Driven

There has been renewed speculation about a sale of <a href="https://www.smartkarma.com/entities/1111" target="_blank" data-smartkarma-citation="entities:1111:1">CJ Hello (037560 KS)</a> to <a href="https://www.smartkarma.com/entities/1113" target="_blank" data-smartkarma-citation="entities:1113:1">LG Uplus (032640 KS)</a> as noted by <a href="https://www.smartkarma.com/profiles/354" target="_blank" data-smartkarma-citation="accounts:354">Sanghyun Park</a> on this site recently. This speculation comes and goes, but <a href="https://www.smartkarma.com/profiles/1918" target="_blank" data-smartkarma-citation="accounts:1918">Alastair Jones</a> points out below that there are large synergies available if it does proceed. Sanghyun went into detail in <a href="https://www.smartkarma.com/insights/cj-hello-sale-to-lg-uplus-backstory-forestory-checkup" target="_blank" data-smartkarma-citation="insights:21548">CJ Hello Sale to LG Uplus Backstory &amp; Forestry Checkup</a> about regulatory issues which now opens the way for either LG Uplus or <a href="https://www.smartkarma.com/entities/395" target="_blank" data-smartkarma-citation="entities:395:1">SK Telecom (017670 KS)</a> to bid. SKT is unlikely to bid given its past attempt. 
This note looks at how investors should value the synergies in the event a deal is done. We think the rumored bid price (KRW20,000/share) makes sense given the scale of the synergies. However, such a high premium could be viewed negatively by the market.
Pay TV market share in Korea (%). A chance at the big time for LG Uplus
<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/068/783/original/korea%20pay%20tv%20share.jpg?1541401038" class="editor-image img-responsive" data-smartkarma-image-id="68783"></figure>
<div class="content-caption">Source: New Street Research</div>

There has been renewed speculation about a sale of CJ Hello (037560 KS) to LG Uplus (032640 KS) as noted by Sanghyun Park on this site recently. This speculation comes and goes, but Alastair Jones points out below that there are large synergies available if it does proceed. Sanghyun went into detail in CJ Hello Sale to LG Uplus Backstory &amp; Forestry Checkup about regulatory issues which now opens the way for either LG Uplus or SK Telecom (017670 KS) to bid. SKT is unlikely to bid given its past attempt. 
This note looks at how investors should value the synergies in the event a deal is done. We think the rumored bid price (KRW20,000/share) makes sense given the scale of the synergies. However, such a high premium could be viewed negatively by the market.
Pay TV market share in Korea (%). A chance at the big time for LG Uplus

Source: New Street Research

LG Uplus: Buying CJ Hello Could Deliver Large Synergies but May Struggle with Market Acceptance

Belgium

Telenet Group Holding NV provides telephone and internet services through a network of fiber-optic and coaxial cable.  The company offers customized packages to businesses and individual clients in Belgium.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Telenet Group Holding NV (TNET BB)

European High Yield Outlook 2020 - Lucror Analytics

As in 2018, Brexit and US-China trade relations took centre stage in 2019. With a phase-one trade deal between the US and China reached and an...

Lucror Analytics

LG Uplus: Buying CJ Hello Could Deliver Large Synergies but May Struggle with Market Acceptance

There has been renewed speculation about a sale of CJ Hello (037560 KS) to LG Uplus (032640 KS) as noted by Sanghyun Park on this site recently....

New Street Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)