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Analysis for a Fixed Income Fund
Our client, a Middle-East based debt asset management company, requested our support to make an investment decision in a United Arab Emirates (UAE) based industrial company based on its current yields and foreseeable credit risk. Our deliverable was a detailed credit note, financial model with quarterly projections for next three years, and an independent risk rating computation across industry specific ratios.
Methodology:
The project was executed by a team of one associate and one associate, guided by a Vice President.
Process:
- Understanding the Company’s business operations and historical financial performance, arriving at independent credit ratings using ratings methodology jointly developed by TresVista and the client
- Analyzing business operations, break even prices for convertible bonds, and current yields with comparable risk adjusted bonds
- Running sensitivities to arrive at different recovery scenarios in case of forced liquidation
Result:
The client has extended the relationship to a long term partnership where a team of three Analysts and an Associate work across corporate debt portfolios and also helps analyze and pitch new sovereign bond investments.
