Aranca

 

Credit & Fixed Income Research Services

Capability Overview

Aranca provides a wide range of credit research and fixed income research and analytics outsourcing solutions to both buy-side and sell-side clients, helping them identify and evaluate potential investment opportunities, and control their costs. We support our clients in credit modelling, initiating coverage, maintenance research, preparing and maintaining relative value databases, conducting analysis, portfolio tracking and several other activities thus freeing up their valuable time for revenue generating and client facing activities.
 
Aranca adopts a process-driven approach and rigorous training to provide consistent and scalable fixed income research solutions to our clients. Since inception, we have worked with several fixed income sell-side and buy-side firms across all major geographies. For sell-side, we have prepared credit models and note (initiation and updates) on over 400 companies. For buy-side, we have tracked 1000+ securities and maintained relative value database on 750 HY securities in the US.
 

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

Case Studies

Project:
Preparation of credit evaluation notes

Client:
One of the largest institutional asset managers in Europe wanted to cover debt instruments of a company from a view of evaluating the company’s capacity to honor its commercial commitments

Project:
New issues analysis

Client:
A full service securities brokerage and investment banking firm in US with a focus on the below-investment-grade debt markets for institutional clients

Project:
High yield bonds analysis

Client:
A leading investment manager in the US looking for analysis of the high yield bonds

Project:
Creation and maintenance of a database on high yield bonds in emerging markets

Client:
One of the largest institutional asset managers in US wanted to create and maintain a database on high yield bonds in emerging markets. The objective was to track these bonds on a daily basis and help fund manager in making investment decisions.

Project:
Analysis of debt covenants of high yield bonds to aid to his investment decision making

Client:
A fixed income focused asset manager in US wanted to analyze debt covenants of HY bonds to aid to his investment decision making. The objective was to ascertain whether companies are likely to breach their debt covenant terms and if yes, when

Project:
Corporate credit rating analysis

Client:
One of the largest asset managers in GCC wanted to generate credit ratings for GCC companies to help him in making investment decisions.

Project:
Corporate risk tolerance modeling

Client:
One of the largest insurance brokers in US wanted to measure a company’s ability to manage financial/operational risks and impact on credit metrics

Project:
Macroeconomic Research

Client:
Aranca helps its clients, primarily banks, brokerages and investment banks, with macroeconomic forecasting, database creationand maintenance, periodic reviews of key economic indicators, and analysis of policy and major themes/ sectors