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

<ul>
<li>UST yields rose on Friday, in a continuation of Thursday’s increase following the weak 30Y notes auction.</li>
<li>In addition, there were no macro catalysts, ahead of Tuesday’s CPI data release (which may alter market expectations for the rate cuts currently priced in).</li>
<li>The yield on the 2Y UST rose 3 bps to 3.76%, while that on the 10Y UST was up 3 bps at 4.28%. </li>
</ul>


UST yields rose on Friday, in a continuation of Thursday’s increase following the weak 30Y notes auction.
In addition, there were no macro catalysts, ahead of Tuesday’s CPI data release (which may alter market expectations for the rate cuts currently priced in).
The yield on the 2Y UST rose 3 bps to 3.76%, while that on the 10Y UST was up 3 bps at 4.28%. 


<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau</li>
<li>In the US, the FOMC has unanimously voted to maintain the Fed funds target rate at 4.25-4.50%, in line with market expectations. In its statement, the FOMC noted that "uncertainty about the economic outlook has increased further", adding that "risks of higher unemployment and higher inflation have risen".</li>
<li>Still, officials noted that although swings in net exports have affected the data, recent indicators suggest that economic activity has continued expanding at a solid pace and labour market conditions have remained strong. Meanwhile, inflation is "somewhat elevated".</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau
In the US, the FOMC has unanimously voted to maintain the Fed funds target rate at 4.25-4.50%, in line with market expectations. In its statement, the FOMC noted that "uncertainty about the economic outlook has increased further", adding that "risks of higher unemployment and higher inflation have risen".
Still, officials noted that although swings in net exports have affected the data, recent indicators suggest that economic activity has continued expanding at a solid pace and labour market conditions have remained strong. Meanwhile, inflation is "somewhat elevated".


<ul>
<li>In today's Convertibles Brief publication we comment on developments of the following high yield issuers: Wynn Macau</li>
<li>Credit markets narrowed last Friday, with the iTraxx X-Over decreasing 2 bps to 279 bps. European bourses were mostly down 0.1- 0.8%, except for the CAC 40 (+0.2%), IBEX 35 (+0.2%) and FTSE MIB (+0.2%).</li>
<li>In the US, the S&amp;P 500 was flat, while the Nasdaq rose 0.4%. In Asia this morning, the Nikkei and Hang Seng are both up 0.1%. US equity futures are mostly higher. WTI is trading at USD 70.8/bbl, and Brent at USD 74.8/bbl.</li>
</ul>


In today's Convertibles Brief publication we comment on developments of the following high yield issuers: Wynn Macau
Credit markets narrowed last Friday, with the iTraxx X-Over decreasing 2 bps to 279 bps. European bourses were mostly down 0.1- 0.8%, except for the CAC 40 (+0.2%), IBEX 35 (+0.2%) and FTSE MIB (+0.2%).
In the US, the S&amp;P 500 was flat, while the Nasdaq rose 0.4%. In Asia this morning, the Nikkei and Hang Seng are both up 0.1%. US equity futures are mostly higher. WTI is trading at USD 70.8/bbl, and Brent at USD 74.8/bbl.


<ul>
<li>In the US, January advance retail sales came in weaker than expected, declining 0.9% m-o-m (-0.2% e / 0.7% revised p).</li>
<li>The retail sales control group (which feeds into the government’s goods spending calculation for GDP) decreased 0.8% (0.3% e / 0.8% revised p), the lowest level since March 2023.</li>
<li>Separately, January 2025 industrial production rose 0.5% (0.3% e / 1.0% revised p), with capacity utilisation edging up to 77.8% (77.7% e / 77.5% p).</li>
</ul>


In the US, January advance retail sales came in weaker than expected, declining 0.9% m-o-m (-0.2% e / 0.7% revised p).
The retail sales control group (which feeds into the government’s goods spending calculation for GDP) decreased 0.8% (0.3% e / 0.8% revised p), the lowest level since March 2023.
Separately, January 2025 industrial production rose 0.5% (0.3% e / 1.0% revised p), with capacity utilisation edging up to 77.8% (77.7% e / 77.5% p).


Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Melco International Development / Event-Driven

<ul>
<li>At an 8% discount to NAV, <strong><a href="https://www.smartkarma.com/entities/melco-international-development-ltd" target="_blank" data-smartkarma-citation="entities:809:1" rel="noopener">Melco International Development (200 HK)</a></strong> is trading too tight for what is a simple holding company structure.</li>
<li>Preceding my comments on Melco are the current setup/unwind tables for Asia-Pacific Holdcos.</li>
<li>These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.</li>
</ul>


At an 8% discount to NAV, Melco International Development (200 HK) is trading too tight for what is a simple holding company structure.
Preceding my comments on Melco are the current setup/unwind tables for Asia-Pacific Holdcos.
These relationships trade with a minimum liquidity of US$1mn, and a % market capitalisation &gt;20%.


Macau

Wynn Macau, Limited develops, owns, and operates integrated destination casino resorts in Macau. The company's properties, including Wynn Macau and Wynn Palace, offer casino gaming, luxury hotel accommodations, diverse dining, high-end retail, and entertainment facilities. It was incorporated in 2009 and is headquartered in Macau.

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Wynn Macau (1128 HK)

Lucror Analytics - Morning Views Asia

UST yields rose on Friday, in a continuation of Thursday’s increase following the weak 30Y notes auction. In addition, there were no macro...

Lucror Analytics

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau In the US, the FOMC has...

Lucror Analytics

Lucror Analytics - Convertibles Brief

In today's Convertibles Brief publication we comment on developments of the following high yield issuers: Wynn Macau Credit markets narrowed last...

Lucror Analytics

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Wynn Macau. In the US, January advance retail...

Lucror Analytics

StubWorld: Melco Is Trading Too Tight

At an 8% discount to NAV, Melco International Development (200 HK) is trading too tight for what is a simple holding company structure.

David Blennerhassett

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