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

Yuexiu Real Estate Investment Trust / Credit

<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources, Nickel Industries</li>
<li>The UST curve twisted slightly steeper yesterday, with the front-end continuing to be supported by the prospect of Fed rate cuts against the backdrop of a looming US government shutdown.</li>
<li>The yield on the 2Y UST fell 1 bp to 3.61%, while that on the 10Y UST was up 1 bp at 4.15%. Equities climbed for the third day, with the S&amp;P 500 and Nasdaq up 0.4% and 0.3%, respectively.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources, Nickel Industries
The UST curve twisted slightly steeper yesterday, with the front-end continuing to be supported by the prospect of Fed rate cuts against the backdrop of a looming US government shutdown.
The yield on the 2Y UST fell 1 bp to 3.61%, while that on the 10Y UST was up 1 bp at 4.15%. Equities climbed for the third day, with the S&amp;P 500 and Nasdaq up 0.4% and 0.3%, respectively.


<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources</li>
<li>UST yields declined for a fourth straight day yesterday, in a continuation of the trend following the releases of weak JOLTS and nonfarm payroll data last week. The UST curve bull-flattened for a second day. The yield on the 2Y UST declined 2 bps to 3.49%, while the yield on the 10Y UST fell 4 bps to 4.04%. Equities climbed, with the S&amp;P 500 and Nasdaq up 0.2% and 0.5%, respectively.</li>
<li>In the US, the New York Fed one-year inflation expectations rose to 3.20% (3.09% p).</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources
UST yields declined for a fourth straight day yesterday, in a continuation of the trend following the releases of weak JOLTS and nonfarm payroll data last week. The UST curve bull-flattened for a second day. The yield on the 2Y UST declined 2 bps to 3.49%, while the yield on the 10Y UST fell 4 bps to 4.04%. Equities climbed, with the S&amp;P 500 and Nasdaq up 0.2% and 0.5%, respectively.
In the US, the New York Fed one-year inflation expectations rose to 3.20% (3.09% p).


<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT</li>
<li>UST yields rose 1-2 bps yesterday, with limited major catalysts ahead of Fed Chairman Jerome Powell’s Jackson Hole appearance later this week. The yield on the 2Y UST inched up 1 bp to 3.77%, while that on the 10Y UST was up 2 bps at 4.33%.</li>
<li>Equities were flat, with the S&amp;P 500 and Nasdaq stable at 6,449 and 21,630, respectively.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT
UST yields rose 1-2 bps yesterday, with limited major catalysts ahead of Fed Chairman Jerome Powell’s Jackson Hole appearance later this week. The yield on the 2Y UST inched up 1 bp to 3.77%, while that on the 10Y UST was up 2 bps at 4.33%.
Equities were flat, with the S&amp;P 500 and Nasdaq stable at 6,449 and 21,630, respectively.


<ul>
<li>In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Cikarang Listrindo, Nickel Industries</li>
<li>In the US, the import price index rose 0.4% m-o-m (0.0% e / 0.4% revised p) in February. Separately, industrial production came in above estimates at 0.7% m-o-m (0.2% e / 0.3% revised p), with capacity utilisation up at 78.2% (77.8% e / 77.7% revised p).</li>
<li>Meanwhile, housing starts grew 11.2% m-o-m (1.4% e / -11.5% p) in February to 1.50 mn units, rebounding from the decline in January, which had been driven by cold weather. The February (preliminary) building permits fell 1.2% m-o-m (-1.4% e / -0.6% p) to 1.46 mn units.</li>
</ul>


In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Cikarang Listrindo, Nickel Industries
In the US, the import price index rose 0.4% m-o-m (0.0% e / 0.4% revised p) in February. Separately, industrial production came in above estimates at 0.7% m-o-m (0.2% e / 0.3% revised p), with capacity utilisation up at 78.2% (77.8% e / 77.7% revised p).
Meanwhile, housing starts grew 11.2% m-o-m (1.4% e / -11.5% p) in February to 1.50 mn units, rebounding from the decline in January, which had been driven by cold weather. The February (preliminary) building permits fell 1.2% m-o-m (-1.4% e / -0.6% p) to 1.46 mn units.


IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>Bloomberg <a href="https://news.bloomberglaw.com/mergers-and-acquisitions/esr-bidders-said-to-weigh-bringing-in-more-investors-for-buyout" target="_blank" rel="noopener">reports</a> that the bidding consortium is in talks to bring in other partners, such as QIA, PIF, and CPP Investment Board, to aid in privatising <a href="https://www.smartkarma.com/entities/esr-group-ltd" target="_blank" data-smartkarma-citation="entities:27983:1" rel="noopener">ESR Group (1821 HK)</a>.</li>
<li>Warburg Pincus and OMERS have blocking stakes for a Cayman scheme. Warburg Pincus is seemingly supportive, and the consortium’s expansion talks suggest confidence in meeting OMERS’ price expectations.</li>
<li>Our best guess is that an offer is around HK$14.00. ESR’s current valuation is undemanding, with its forward EV/EBITDA multiple at a 40% discount compared to the median peers’ multiple.</li>
</ul>


Bloomberg reports that the bidding consortium is in talks to bring in other partners, such as QIA, PIF, and CPP Investment Board, to aid in privatising ESR Group (1821 HK).
Warburg Pincus and OMERS have blocking stakes for a Cayman scheme. Warburg Pincus is seemingly supportive, and the consortium’s expansion talks suggest confidence in meeting OMERS’ price expectations.
Our best guess is that an offer is around HK$14.00. ESR’s current valuation is undemanding, with its forward EV/EBITDA multiple at a 40% discount compared to the median peers’ multiple.


ESR Group (1821 HK): Consortium’s Expansion Talks Suggest Progress

Hong Kong

Yuexiu Real Estate Investment Trust invests in a diverse portfolio of income producing properties which are used primarily for office, retail, and other commercial purposes in China.

Yuexiu Real Estate Investment Trust (405 HK)

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Yuexiu Real Estate Investment Trust (405 HK)

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources, Nickel Industries

Lucror Analytics

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Vedanta Resources

Lucror Analytics

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT UST yields rose 1-2 bps...

Lucror Analytics

Lucror Analytics - Morning Views Asia

In today's Morning Views publication we comment on developments of the following high yield issuers: Yuexiu REIT, Cikarang Listrindo, Nickel...

Lucror Analytics

ESR Group (1821 HK): Consortium’s Expansion Talks Suggest Progress

The probability of an offer remains high, and the latest Bloomberg reports suggest progress towards a binding proposal. Our best guess is that an...

Arun George

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