Buy-side crossover and high yield research support
About Client:
Investment management arm of a global insurance giant, based in the US. The investments were majorly in the US crossover and high yield bonds.
Business Problem:
Client wanted to maximize the returns by increasing originations across US crossover and high yield opportunities, keep optimal focus on active fund management, save senior bandwidth and keep the expense ratio low.
ValueAdd Solution:
ValueAdd staffed a six-analyst credit research team supported by a Delivery Manager, for initiation of new credit issuers for ramping up the origination. Performed a detailed requirement gathering to finalize credit modelling specifications including financials, capital structure analysis, financial adjustments, templates (models/memos), writing styles, and formatting guidelines.
Quick initiation & ramp-up:
- Initiated 90 credits across ten broad sectors within agreed timelines & budgets
- Successfully implemented the planned ramp-up of names.
Regular Maintenance:
- Currently, three-analyst team to monitor & update the coverage for earnings, credit event/corporate actions, and daily news.
Benefits Delivered:
- Significantly saved client’s senior bandwidth for more impactful functions
- Relatively quicker coverage initiation than the DIY option
- Ongoing monitoring and coverage updates of credit issuers for credit events, news, and earnings updates, help assess opportunities and risks
- Cost-effective credit research support