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.

High Yield Experts

Credit Analyst, Lucror Analytics

Chuanyi Zhou

Credit Analyst

Credit

Yesterday, China Evergrande provided an update on its latest developments, including the engagement of Houlihan Lokey and Admiralty Harbour as joint financial advisors. The hiring of financial advisors could be a precursor to a debt restructuring. Evergrande is in talks with onshore banks and financial institutions, as well as retail investors on repayment options. A restructuring plan with bondholders may be inevitable. Evergrande’s situation is worse than we had expected. It appears that the company's key channels for cash inflows are faring poorly, with weakening contracted sales, and no progress on asset sales or the addition of strategic investors. The off-balance-sheet wealth management investors might be repaid ahead of bondholders, regardless of their seniority in terms of payment. Such an outcome is possible on account of the social instability caused by the retail investors’ protests, which could pressure the government and in turn push the company to act. We continue to believe a liquidation is an unlikely outcome, given Evergrande's size and the number of stakeholders involved. Beijing has never underestimated the company's systemic importance, with the government apparently urging the company to prioritise the interests of home buyers, suppliers and employees. That said, regulators are leaning towards a “market led” solution for Evergrande's debt.

  Yesterday, China Evergrande provided an update on its latest developments, including the engagement of Houlihan Lokey and Admiralty Harbour as joint financial advisors. The hiring of financial advisors could be a precursor to a debt restructuring. Evergrande is in talks with onshore banks and financial institutions, as well as retail investors on repayment options. A restructuring plan with bondholders may be inevitable.   Evergrande’s situation is worse than we had expected. It appears that the company's key channels for cash inflows are faring poorly, with weakening contracted sales, and no progress on asset sales or the addition of strategic investors. The off-balance-sheet wealth management investors might be repaid ahead of bondholders, regardless of their seniority in terms of payment. Such an outcome is possible on account of the social instability caused by the retail investors’ protests, which could pressure the government and in turn push the company to act.   We continue to believe a liquidation is an unlikely outcome, given Evergrande's size and the number of stakeholders involved. Beijing has never underestimated the company's systemic importance, with the government apparently urging the company to prioritise the interests of home buyers, suppliers and employees. That said, regulators are leaning towards a “market led” solution for Evergrande's debt. 

China Evergrande - Event Flash - Update On Recent Developments - Lucror Analytics