Outsourced Credit Research | Outsourced Fixed Income Research
Capability Overview
Sell-Side Research
Sell-Side Credit Research Services Outsourcing
We combine both our deep domain expertise across industries and geographies, and strong understanding of the economic variables on credit metrics that shapes credit investment recommendations as well as the analyst’s opinion on a company’s credit rating and expected changes to those ratings.
Corporate Credit Research & Modeling
Aranca provides comprehensive outsourced credit research support-from preparing initial credit recommendations notes to ongoing maintenance research. These include tracking movements and trends in the corporate debt market, development of detailed financial projections and credit metrics evaluation, maintaining credit models on an ongoing basis, various short notes and periodic updates.
Sector and Economic Research
Aranca supports clients’ sell-side credit analysts with back ground research on key sector / economic trends that have bearing on company’s credit metrics and hence on a company’s credit rating and expected changes to those ratings. These include periodic tracking of key indicators, and commentary on key developments and implications for markets and major companies.
Buy-Side Research
Buy-Side Credit Research Services Outsourcing
We combine our deep domain expertise across industries and geographies, and strong understanding of the economic variables to provide high quality outsourced credit and fixed income research to a broad spectrum of buy-side clients, including leading asset management firms, hedge funds, private investment funds and insurance companies.
Our services include:
Screening
Aranca provides comprehensive screening and database solutions across bonds class – including leverage loan, high yield, investment grade and distressed assets. These databases have in-depth operational and credit metrics related data points on peer companies in sector & geographies to help asset managers conduct rich/cheap analysis and screen investment candidates. We also provide ongoing maintenance support.
Modeling
Aranca provides comprehensive modeling support for fixed income securities evaluation. These include development of detailed financial projections and credit metrics evaluation, maintaining credit models on an ongoing basis.
Investment Analysis
Aranca provides succinct investment analysis and notes on fixed income securities to help investment decisions. These include tracking movements and trends in the corporate debt market, screening new issues prospectus, credit metrics evaluation notes and periodic updates on corporate performance.
Economic Research
As part of the outsourced economic research services for buy-side, Aranca develops and maintains background research on key economic trends that have bearing on companies’ credit metrics.
Assignment Examples
- Credit evaluation notes on 300+ companies in the US / Europe for a large insurance company
- New issue review notes on 120+ high yield bond offerings in the US for a leading investment manager in the US
- Analysis of the new issues including terms of the transaction, size, maturity, coupon, covenants and other related provisions for full service securities brokerage and investment banking firm in the US
- Creation and maintenance of a relative value database on 500+ high yield corporate bonds in the US
- Creation and maintenance of a database on high yield bonds in emerging markets for one of the largest institutional asset managers in US
- Credit recommendation note on 80+ corporate for a US based brokerage
- Credit model maintenance support on quarterly basis to a North America based brokerage
- Credit recommendation notes on 40+ sukuks (Islamic bond) for a MENA based investment bank
- Issuer credit rating on 60+ corporate and banks for a fund manager in the MENA region
- Corporate credit rating analysis for a large asset manager in the GCC to assist them in investment decision making
- Covered debt instruments of a company and analyzed the company’s capacity to honor its commercial commitments, for a large institutional asset manager in Europe
- Analysis of debt covenants of high yield bonds to aid to his investment decision making for a large fixed income focused asset manager in the US
- Measuring a company’s ability to manage financial/operational risks and impact on credit metrics for a leading insurance broker in the US; Aranca prepared a corporate risk tolerance model using company’s operational / financial key performance indicators and then performing stress test on these parameters.
- Macroeconomic research solutions including forecasting, database building and analyzing currencies and commodities for a leading bank in the GCC
