US-based asset manager with assets under management of over $800 billion
The client’s challenges
Bandwidth
Security selection and active portfolio monitoring are tedious and time-consuming processes
Each client-side analyst covering ~100 companies is required to maintain up-to-date internal credit ratings for invested securities
Coverage expansion
Lack of credit research support may result in an opportunity cost
Bandwidth constraint limits portfolio expansion
Our solution
Dedicated FTE support:
Mapped a dedicated FTE to respective client-side analysts
Active portfolio monitoring:
Provided support in -
Updating financial models, including projections, drafting investment theses and reviewing quarterly earnings
Tracking the news for merger and acquisition (M&A) announcements, regulatory/policy changes and other corporate events
Reviewing each credit rating at least once in 12 months
Coverage expansion:
Provided credit research support to identify new investment opportunities (non-covered issuers).
Ad hoc tasks:
Provided extensive support in -
Building credit rating models for financial institutions and covered bonds
Creating an environmental, social and governance model framework
Conducting capital structure analysis for financial institutions
Performing a tariff sensitivity analysis
Preparing client presentations, getting ready for sell-side hosted conference meetings, data mining and preparing investor call notes during M&A announcements or new issuances
Impact and results
Security selection:
Expanded coverage pool and improved security selection across sectors and geographies.
Portfolio allocation:
Improved accuracy of investment decisions and portfolio allocation.
Efficiency:
Allowed client to focus on other analytical tasks like sector reviews as a result of a more efficient credit research process.
Sector expertise:
Better process integration and nuanced credit views with sector expertise.