Sutherland Credit Research

Credit Research

Sutherland's Fixed Income research department caters to Investment Banks, Hedge Funds and Pension Funds across diverse strategies. We cover more than 4,200 credits from the established and emerging credit markets spanning multitude of industries and asset classes, including investment grade (IG), high yield (HY), distressed debt, leveraged loans, convertibles, CDOs / CLOs, and other structured products like ABS and MBS.

Our services include fundamental analysis, cash flow modeling, relative value analysis, earnings release / event-driven updates, scenario analysis, de-leveraging analysis, ratings action analysis, covenants analysis, distressed credit modeling and analysis, recovery analysis and credit scoring.

We help clients in their decision-making process by providing detailed credit research reports, financial / cash flow models, investment proposals, investment monitors, earnings snapshot, industry outlook, comp sheets with key market indicators, etc.

	5 Areas of Support

Corporate Credit
Sovereign
Structured Finance
FX and Interest Rate
Emerging Market

Generate trade ideas and identify potential investment opportunities for clients through theme-based studies and regular monitoring of key market trends
Build / maintain credit models and monitor business & financial risks
Prepare short / extensive credit notes and sector-specific reports
Monitor industry trends, regulations, earnings releases, news flow and corporate actions

Work closely with the research and trading folks at the clients' end, assisting in opportunity identification and detailed single-name credit research
Build and maintain credit models, including forecasts, and give investment recommendations across asset classes (cash, synthetics, etc.)
Prepare event flash reports and quick news updates through ongoing monitoring of earnings releases and news stories, conference calls and management meetings
Carry out a thorough scenario testing and covenant & market indicators monitoring to prepare relative comp sheets and screeners

Build and maintain detailed credit models and forecast with revenue equations and cost assumptions
Analyze bondholder profiles, capital structures, covenants, de-leveraging potential, asset coverages, and liquidity and debt maturities
Distressed / Chapter 11 cash flow modeling and recovery analysis under various stress scenarios
Sector screening on the basis of financial covenant compliance status and real-time tracking of news and events

Work with the portfolio manager and help him/her in monitoring debt issued by sovereigns across the developed & emerging market
Prepare detailed fundamental sovereign reports by analyzing factors covering institutional effectiveness, corporate governance, economic, external, fiscal policy and monetary policy
Prepare specific screens and market monitors to capture periodic updates
Prepare policy interpretation reports covering unemployment, inflation, central bank meeting notes, fiscal policy review, interest rates, industrial production; and event-driven political or economic analysis reports

Support analysis and periodic performance review across asset classes, including RMBS, CMBS, CLOs, CDOs and ABS
Prepare investment memos on primary deals through a detailed cash flow analysis, modeling, shadow and ratings
Carry out stress testing through calculation of PDs, LGDs, EAD and running multiple simulations on key indications, including interest rate, loss curve, prepayments, etc.
Provide updates through flash reports on significant events in portfolio companies such as refinancing lawsuits, acquisitions, etc.

Conduct a detailed research and thematic study to prepare daily / weekly / monthly publications including building and updating chart book, tables and running commentary
Support in building and monitoring trading strategies through statistical tools and analysis
Monitor daily events, market moves, economic indicators and market data, including Govt. issuances, vols, spreads, etc. and generate trade ideas
Assist in ideation, back-testing and maintenance of FX models

Work closely with EM analysts to identify trade opportunities covering both hard & local currency securities
Follow both bottom-up fundamental analysis and the top-down macroeconomic approach along with relative value analysis
Carry out cash flow forecasting, capital structure analysis, covenant analysis, stress testing and scenario analysis
Cover operational risks, sovereign and political risk, corporate governance issues and regional nuances to assess evolution of credit profile of a company

Credit Research

Equity Research

Investment Banking Research

Case Studies

Annual Credit Update F&B ABC Breweries April 2014

Annual Credit Update Banking XYZ Plc September 2014

Case Study Creation of Capital Structure Tool

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Testimonials

“I would like to thank you for all your hard work and top quality work produced. I have enjoyed speaking to you about credits and it has been very useful.”

Senior Research Analyst
one of Europe's largest asset management companies

“It was a pleasure; I really enjoyed working with you on this project. You made the whole thing so much easier, and did a splendid job. You deserve all the praise and should be very proud of yourself.”

Senior Credit Analyst
privately-owned investment manager

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Testimonials

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"Thank you very much for compiling this summary - it is a fantastic overview and saves us a lot of time. I particularly liked the quotes that you pulled from the transcripts; they were exactly what we were looking for."

Analyst, Canada-based Investment Bank

"Your model building and reconstruction is remarkable for its accuracy and speed, and you saved me several weeks of work, which I greatly appreciate."

Star Analyst, US-based Investment Bank

"Sutherland's analyst is diligent, accurate, technical and thoughtful with all of his work. He is a very thorough researcher and can find difficult statistics. He stays on top of long term projects and will continue to try to complete if unsuccessful. He continues to be a huge asset to our team."

Senior Banker, Mid-Market Investment Bank

"Sutherland's analyst is an invaluable resource to me and my team. We can count on him to generate thorough, accurate materials quickly. I am impressed with Sutherland's analysts' ability to perfectly capture what it is we were looking for, having only received limited instructions via email."

Senior Banker, Large Investment Bank

"I would like to mention that we had a really good week with 4 out of 8 meetings already reaching the "hot" category. Great progression with the type and kind of companies we are meeting with."
Keep up the hard work.

Business Development Manager, A Global Business and Financial Centre based out of the GCC

"This is a small note to say that it has been great working with you. Projects have been:
1- Delivered on time.
2- Delivered to top standards.
3- Not once there has been a delay (if there has been it has been discussed prior)
4- You have also gone beyond work hours in accommodating our special requests from time to time.
5- Particularly want to mention Fruit Trees study where your role was very key and well positioned in dealing with our "end client". This was truly outstanding.
Full marks.
We value this partnership and you have treated it beyond a client/supplier relationship.
Please keep up the good work.

Director, A leading Consulting Group in the Middle East and Africa

We have never had many policies in the database, and until recently our process was to reach out to advisors for that plan. Our Michigan team had precious few medical policies as well. I wanted to call out the Sutherland team for their amazing work in adding over a hundred new policies-not just PA forms, but fully-developed medical policies as well. Many of these were dated 2016 and earlier, so they had been missed for years.
Our Mumbai team is struggling with our conventions, working all day with Excel, and large workloads. Every plan they've pulled this month has been brand-new to them. These are plans we've researched multiple times this year alone, and they still manage to dig up all kinds of new information. This is not something we gather statistics on, but anecdotally, I've been reading a lot of new (previously-missed) policies in the last two weeks.
I'm very glad to have this kind of ingenuity on our side, enhancing our product a few plans at a time. If you've had a similar experience, I ask you to please give the Mumbai team that feedback as well.
Thanks,

Project Manager, A leading global health insights provider

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