Fixed Income & Credit Research

Aranca’s fixed income and credit research practice services reputed and large global banks, sell-side firms, buy-side firms, and independent research and data providers across the globe. We offer research and analytical support across rating categories, products, regions and fixed income areas, helping investment decision makers worldwide. Aranca’s customer-centric approach, highly customized research solutions, experienced team and top quality service standards have won us accolades from clients.

We provide assistance to clients in their investment research process across the lifecycle - from idea generation through active surveillance. By taking on heavy lifting tasks, we help our clients redirect their bandwidth for more value-added initiatives such as focused idea generation, more in-depth research, frequent meetings with company management, effective client servicing, and optimal risk management. In addition, we offer cost effective research solutions, with in-built flexibility, and the same or different time zone advantage.

We provide research and analytics support across major areas of credit research including corporate credit (investment/non-investment grade, distressed, and leveraged loans), macro strategy (sovereign/municipals), structured finance (CMBS/RMBS/ABS), fixed income (interest rates, debt securities), currency (spot/forward exchange rates analytics), and commodities.

We support clients with a range of modelling and report writing services. These range from credit notes / tearsheets, cash flow forecast models, coverage maintenance, shadow rating analysis, covenants analysis, relative valuation, screening and news updates to services such as surveillance and risk monitoring/reporting and counterparty risk analysis.

Our experience spans all major sectors including industrials, banks and financials, consumer, energy/utilities, basic materials, telecom, technology, and others.

On the corporate credit side, our services cover the entire investment research process of a buy/sell-side firm, from screening new ideas to deep-dives, through monitoring corporate credits for earnings, corporate actions, credit events, and material news updates. We provide support across the debt structure or rating categories - investment grade, high yield, distressed debt, and leveraged loans.

Investment grade research

We provide support on investment grade securities by building and maintaining cash flow models and credit notes across developed and emerging markets and across sectors. The cash flow models and credit notes/ tearsheets/ profiles typically include:

  • Detailed historical and projected three-statement financials
  • Organization structure and capital structure (as per structural subordination)
  • Liquidity, financial covenants, and headroom analysis
  • Credit overview and summary
  • Key credit positives and negatives, key risks and mitigants
  • Business description, segmental overview, and key operating metrics
  • Financial, debt structure, liquidity, and covenants analysis
  • Relative valuation (peer comps) and financial tables

The level of detail and the nature of analysis is customized to each client’s specific requirement.

High yield research

We provide focused, deep-dive research support for high yield which commands more active monitoring of credits in terms of regular news monitoring, credit event updates, and timely earnings updates. Our services cater to both buy-side as well as sell-side teams. We assist clients with detailed cash flow models, notes/tearsheets/profiles, organization and capital structure, relative valuation (peer comps) and bond comps. Further, our analysis also covers aspects such as deleveraging, financial / negative covenants analysis and stress testing for both public and private companies.

In addition to issuer analysis, we also provide support on security analysis, in terms of preparing bond/loan term sheets with summary of key terms and conditions, summary of key affirmative and negative covenants, and indenture screening.

Distressed debt research

Our distressed debt research team provides support in identifying and analyzing stressed and distressed investment ideas in the global markets, through in-depth bankruptcy and recovery analysis. We provide support across credit situations such as non-performing loans/assets, business or/and financial restructuring cases, debtor in possession (DIP), 363 sale, etc and at various stages of the investment process. Typically, this is done through services such as:

  • Quantitative and qualitative screening of ideas (stressed, or near stressed, or distressed)
  • Crisp insightful tearsheets,
  • Deep-dive financial models/analysis
  • Detailed distressed debt and recovery analysis using waterfall model
  • News and events monitoring + impact analysis

Leveraged loans research

Our leveraged loan team typically supports managers on the asset side of a CLO vehicle. The team provides support services related to the surveillance/maintenance of the credit portfolio’s exposure and new/drive-by deals.

We support the following functions:

  • Quarterly/annual earnings updates and earnings blurbs
  • Amendment blotters
  • One-pager updates (re-financing, re-pricings, A-to-E and covenant waiver transactions)
  • Credit memos (new/drive-by deals).

Our analysts are well versed with syndication websites (i.e. Intralinks/SyndTrak/Debt Domain) and comfortable working on different portfolio asset management platforms (proprietary and third-party).

Securitized (ABS/CMBS/RMBS) research

Our structured finance team has extensive experience in analyzing a gamut of structured finance products including ABS (auto loans, student loans, credit cards etc), and MBS (including RMBS and CMBS), and wrapped structures across the globe. For a number of our clients, we build and maintain cash flow waterfall models, conduct trigger tests, prepare monthly/quarterly structured summary reports/cheat-sheets, analyze collateral performance, and prepare counterparty risk assessment reports and regulatory updates.

Our analysts have hands-on experience on various proprietary and third-party databases such as Intex, ABSNet, S&P and Moody’s products, etc.

Sovereign research

Aranca’s sovereign reports, primers, update reports, economic updates, newsletters, and news analysis help clients keep track of developments, monitor and control sovereign risks. Our sovereign debt research support services include:,

  • Screening sovereign debt opportunities (from investment grade to distressed sovereign debt),
  • Assessing various factors responsible for sovereign risk
  • Opinionated credit notes on sovereign investment opportunities
  • Arriving at shadow ratings on sovereigns
  • Assessing recovery prospects of distressed sovereign situations

Municipal research

We offer high quality research on US and international municipal issuances, including general obligation and revenue bonds, across sectors: state government bodies, municipalities, universities, educational institutions and healthcare. Our strong team of municipal analysts provides support on,

  • Writing detailed analytical research notes
  • Preparing tearsheets in a short turnaround time
  • Tracking new issuances, building database of economic statistics, and
  • Capturing material news including regulations, politics, banking, and trade and economics

Aranca has a strong track record of supporting global sell-side firms on their fixed income research requirements. Our cutting-edge fixed income and credit research support has helped clients leverage “research” as their unique selling proposition in the market. Our experienced and trained team of professionals develops innovative research solutions in corporate credit, macro strategy and structured finance. We provide customized services to deliver optimum value to each market participant from a large investment banks to boutique advisory firms.

Debt capital market (DCM)

Our DCM research support across ratings, products and geographies has helped DCM groups originate, underwrite and market sizeable fixed income deals globally. We provide services related to deal origination, deal marketing and market intelligence/analysis for corporate bonds, leveraged loans, sovereigns, municipals and MBS/ABS.

Sell Side Fixed Income & Credit Research

Aranca’s research support for Debt Capital Markets (DCM) across ratings, products and geographies, has helped bankers originate/underwrite/market sizeable deals globally

DEBT CAPITAL MARKETS: RESEARCH SUPPORT
INVESTMENT GRADE, HIGH YIELD, LEVERAGED LOANS, SOVEREIGN/ MUNICIPALS
SECURITIZED CREDIT
DEAL
ORIGINATION
  • Opportunities screening
  • New issuance grading/analysis
  • Shadow rating modeling
  • Optimal capital structure analysis
  • Leveraged loans tearsheets/Credit Memos
  • Security analysis
  • Cash flow modeling
DEAL
MARKETING
  • Credit pitchbooks
  • Credit assessment report/deck on the issuer for road shows
  • Credit comps (issuer/security)
  • Writing standard sections of information memorandums
  • Security’s term sheet and covenants summary
  • Industry report
  • Sensitivity and scenario analysis
MARKET INTELLIGENCE/ANALYSIS
  • Tracking new deals, pricing trends and market and sector trends
  • Maintenance of deal and comps database
  • News monitoring and impact analysis
  • Benchmarking and competitor analysis
  • Economic/regulatory updates
DCM SUPPORT FOR SECURITIZED CREDIT
  • Deal structuring, underwriting and distribution support
  • Cash flow models for pre-payments, interest rates, default/recovery scenarios
  • Deal analysis; loan and property/ tenants review
  • Calculation of VaR, WAFF, WALS and WARR
  • Updating deal performance
  • Deal marketing support

Proprietary trading desks (prop-desks)

We specialize in providing prop-desk research support services, primarily in global high-yield and distressed debt research. Leveraging the expertise of its team, Aranca has built a strong track record in this domain. Our services related to trading idea generation support and continuous monitoring of stressed and distressed credits have enabled clients to increase their proprietary funds multi-fold.

Debt advisory

Our services for debt advisory functions cover insightful and analytical research on live advisory deals. The research objectives include advising end clients (corporates and banks/financial institutions) on:

  • Optimal capital structure
  • Restructuring/refinancing of debt
  • Capital raising decisions (equity/debt/mezzanine) and
  • Distressed debt/asset investments.

Institutional research

We offer an embedded engagement model for effective institutional research support to mid-to-large fixed income focused and multi-asset brokerage firms. We provide detailed research coverage maintenance support across the capital structure, regions, and sectors.

Institutional Fixed Income & Credit Research

Aranca’s fixed income research support for sell-side teams enables clients to focus on higher value-added activities and to expand coverage on more issuers

SALES/TRADING RESEARCH SUPPORT
INVESTMENT GRADE, HIGH YIELD, LEVERAGED LOANS, SOVEREIGN/ MUNICIPALS
SECURITIZED CREDIT
RESEARCH COVERAGE MAINTENANCE
  • Opinionated credit notes
  • Forecasted cash flow models
  • Earnings/credit events updates
  • Debt structure analysis
  • Sensitivity analysis
  • Negative covenants analysis
  • Peer comp/securities comp
IDEA
GENERATION
  • Screening of companies across regions, sectors, and rating categories
  • Credit profiles/tear sheets on opportunities
  • Deep-dive credit analysis of shortlisted companies
  • Gathering/updating street consensus
  • Querying/maintaining financial databases
NEWS UPDATE AND COMMENTARIES
  • Regular news update for traders
  • Morning meeting notes
  • After-market trade commentaries
  • News and impact analysis
  • Updating sector monitors
RESEARCH/ANALYTICS/
SURVEILLANCE
  • Cash flow models for pre-payments, interest rates, and default/recovery scenarios
  • Analysis of MBS/ABS/CDO/CLO deals and constituents
  • Research publication support
  • Commercial real estate analysis
  • Reporting deal performance and highlighting key changes in deals and constituents

Trading desks

We focus on providing quick, accurate and crisp research on issuers and securities, through work products such as:

  • Debt screeners
  • Tearsheets/Credit profiles
  • Cashflow models
  • Peer-comps
  • Bond/loan-comps
  • Bond/loan term sheets
  • Summary of negative covenants
  • News support and trading commentaries

Private wealth managers (PWMs)

We provide customized credit research support to PWMs to suit the specific requirements of the end-clients i.e. high net-worth individuals (HNIs). Our services enable discretionary wealth managers to take effective investment decisions. Our support also helps non-discretionary wealth managers and relationship managers with more bandwidth for providing excellent customer service to their clients. Our services help research teams with complete research solutions including:

  • Idea screening
  • Daily news monitoring support,
  • Publishing white-labeled reports
  • Proprietary product support and
  • Address customized client research requests

 

"That’s a very good job, have covered all the aspects in this credit very well!! Thank you for your help, much appreciated!"
--- A Senior Desk Analyst at a Sell-side arm of a UK-based global bank
"Thanks very much for sending this. It was very timely indeed. Greatly appreciate the efforts you guys are putting in and for being so pro-active on these situations. Very much appreciate it"
--- A Senior Analyst (Managing Director) of a Distressed Debt Prop Desk of a Global Bank

Asset Managers/Hedge Funds/Alternative Asset Managers

Our expertise in providing buy-side support has helped multi-billion dollar and multi-strategy funds in creating 'alpha' in these times of ‘chase for higher yields’. Our most reliable and high speed research delivery methodologies have been leveraged by a range of asset management clients including:

  • Multi-strategy funds
  • Fixed income focused funds (investment grade/high-yield/distressed debt/leveraged loans)
  • Emerging market funds
  • Macro strategy funds (rates, sovereign, sub-sovereigns and municipals)
  • Asset management arms of insurance companies
  • Structured credit focused funds

Our research offerings address multiple client objectives including:

  • Expanding the coverage universe
  • Maintaining the coverage universe updated for credit events/earnings
  • Making investment decisions on credit/issuers
  • Presenting to the investment committee
  • Using as a back-up document for internal/statutory/client audits
Buy Side Fixed Income & Credit Research

Our experience spans a range of fixed income products and different research areas
for global asset managers

INVESTMENT GRADE, HIGH YIELD/LEVERAGED LOANS, DISTRESSED DEBT, SECURITISED CREDIT, SOVEREIGN/US MUNICIPALS

MODELS
 
  • Cash flow models Shadow credit rating
  • Forecasted cash flow models Shadow credit rating Lev. Loan/ LBO models
  • Forecasted cash flow models Recovery models Trade claims reviews
  • Cash flow models Waterfall models Commercial real estate or REIT models
  • Financial spreading Economic data tables and charts
REPORTS OR
NOTES
  • Opinionated credit notes
  • Detailed credit notes with recommendations Tear sheets Credit Memos
  • Detailed notes with credit views Tear sheets
  • Reports on deals, trading ideas and sectors; thematic research
  • Initiating reports on General Obligation and Revenue Obligation Municipal bonds Sovereign reports
ANALYSIS
 
  • Capital structure analysis Financial covenants
  • Negative covenants analysis Peer/bond/loan comp A to E, Covenants, Restructuring, Waivers
  • Indenture screening Distressed debt screens Sensitivity analysis Regulatory study
  • Deal analysis Constituents analysis Commercial real estate analysis
  • Comparative analysis Economic analysis Country risk analysis Distressed analysis
NEWS
MONITORING
  • Daily news monitoring
  • Daily news monitoring Capturing flex activity Company guidance monitoring
  • Distressed debt monitor Regulatory news
  • Region-wise ABS/MBS news updates Real estate monitors
  • Economic updates Regulatory updates Impact analysis News monitoring
DATABASE AND SURVEILLANCE
  • Database of financials and regular updates
  • Database of converts Database of financials and regular updates
  • History of distressed situations
  • Updating deal performance Monitoring changes in tranche/constituents Tracking new deal and competitor intelligence
  • New issuance monitoring Economic, banking and financial database

In addition to research offerings, our front and mid-office support to asset managers includes portfolio analytics, risk management and corporate compliance services, and fund sales and marketing support services.

 

"This is exactly what I wanted to see in my model and the report. Thx for the good work."
--- A Senior Portfolio Manager at a US-based large asset management firm
"Many thanks for the model with detailed forecasts…. Liked the covenants summary and the tearsheet….and the operating metrics laid out"
--- A Senior Portfolio Manager at a US-based large asset management firm

Sell-side Assignment Examples

  1. New issuance research, pitchbook support, modeling and roadshow support for a US-based DCM team for issuances across sovereign, investment grade and high yield bonds across the globe
  2. Pitchbook support for a UK-based DCM client focused on EMEA; services entailed preparing global and regional capital market updates and company profiles, assessing investment opportunities and preparing daily news updates
  3. Stressed/distressed debt research support for 300+ names across the globe; services included preparing credit profiles, building detailed distressed debt and recovery models, conducting covenant analysis, and preparing screeners and weekly newsletters
  4. Capital structure research support to the debt advisory arm of a UK-based investment bank; services included preparing optimal capital structures, debt restructuring, indenture screening, debt screeners, and capital market news updates
  1. Initiation and maintenance coverage support (credit notes and models) for over 200 credits across investment grade, cross-over and high yield areas for the fixed income brokerage arm of a UK-based global bank
  2. Initiation and maintenance of 60+ European banks and financials for the financials trading desk of a global bank
  3. Leveraged loans research support for 90+ private names across sectors for the leveraged loans trading desk of a global bank based in the US
  4. Detailed high-yield cash flow modeling support for a US-based institutional research team of a brokerage firm

Buy-side Assignment Examples

  1. Support for the launch of a new high yield fund by a UK-based asset manager, covering ~125 credits across key sectors including telecom, automotive, media, real estate, retail and technology
  2. US corporate credit support (covering cross overs and high yield credits) for a US-based multi-billion dollar hedge fund
  3. Leveraged loans research support to a US-focused CLO fund; services included new deal/drive-by analysis, new credit initiation, amendments/waivers assessment, refinancing/re-pricing analysis and news updates
  4. Sovereign debt research support for ~100 sovereigns across the US, EMEA and Asia-Pacific, covering credit notes, updates or event notes, economic data gathering and news support
  5. Investment grade research/modeling support for 120+ names for the asset management arm of a global insurance company
  6. Stressed and distressed credit research support to a fund manager focused on US and European distressed credits across sectors; services included finding stressed/distressed opportunities by regular screening, distressed debt and recovery modeling, capital structure and covenant analysis, and monitoring news updates
  7. US municipals support for a US-based asset manager for over 85 general obligation and revenue bonds issued across sectors including state governments, municipal corporations, education, and healthcare
Project:
Sales/Trading Support: Investment grade and high-yield research support to a global brokerage house

Client:
The client required dedicated research support on its investment grade and high yield coverage

Project:
Private Wealth Manager Support: Credit report and model initiation and maintenance support for the private wealth management division of a large European bank

Client:
The client required research support to build and maintain models and analytical credit reports to be circulated to their clientele

Project:
Debt Capital Markets Support: Debt capital markets and proprietary desk research support for a global investment bank

Client:
The client needed high-quality, customized and cost-effective credit research

Project:
Debt Capital Markets Support: Issuer shadow credit rating analysis for a global investment bank

Client:
The client wanted to generate shadow credit ratings for its target companies

Project:
Asset Manager Support: Credit research monitoring support for a global insurance giant based out of Europe

Client:
A large European insurer/reinsurer solicited support in maintenance and monitoring of credit models

Project:
Asset Manager (APAC) Support: A complete research back-up support to a Singapore-based asset manager

Client:
A regional asset manager needed a fund launch and regular coverage support for Asian high-yield bonds

Project:
CLO Support: Credit research coverage support to a CLO manager

Client:
A credit hedge fund investing through its CLO funds solicited research and surveillance support

Focus on new ideas,
engage clients better
Request more information, work samples or a no-obligation consultation
Email us or Call +1 212-995-5890
Fixed Income Credit Research
“Thorough and insightful research .”
- Portfolio Manager,
US-based mid-sized asset manager