Fixed Income & Credit Research

Capability Overview

Sell-Side Research

Buy-Side Research

Assignment Examples

Case Studies

Arancas fixed income and credit research practice services reputed and large global banks, sellside firms, buy-side firms, and independent research and data providers across the globe. We
offer research and analytical support across rating categories, products, regions and fixed income
areas, helping investment decision makers worldwide. Arancas customer-centric approach,
highly customized research solutions, experienced team and top quality service standards have
won us accolades from clients.
We provide assistance to clients in their investment research process across the lifecycle - from
idea generation through active surveillance. By taking on heavy lifting tasks, we help our clients
redirect their bandwidth for more value-added initiatives such as focused idea generation, more
in-depth research, frequent meetings with company management, effective client servicing, and
optimal risk management. In addition, we offer cost effective research solutions, with in-built
flexibility, and the same or different time zone advantage.
We provide research and analytics support across major areas of credit research including
corporate credit (investment/non-investment grade, distressed, and leveraged loans), macro
strategy (sovereign/municipals), structured finance (CMBS/RMBS/ABS), fixed income (interest
rates, debt securities), currency (spot/forward exchange rates analytics), and commodities.
We support clients with a range of modelling and report writing services. These range from credit
notes / tearsheets, cash flow forecast models, coverage maintenance, shadow rating analysis,
covenants analysis, relative valuation, screening and news updates to services such as
surveillance and risk monitoring/reporting and counterparty risk analysis.
Our experience spans all major sectors including industrials, banks and financials, consumer,
energy/utilities, basic materials, telecom, technology, and others.
Corporate Credit Research
On the corporate credit side, our services cover the entire investment research process of a
buy/sell-side firm, from screening new ideas to deep-dives, through monitoring corporate credits
for earnings, corporate actions, credit events, and material news updates. We provide support

across the debt structure or rating categories - investment grade, high yield, distressed debt, and
leveraged loans.

Investment grade research

We provide support on investment grade securities by building and maintaining cash flow
models and credit notes across developed and emerging markets and across sectors. The cash
flow models and credit notes/ tearsheets/ profiles typically include:

Detailed historical and projected three-statement financials

Organization structure and capital structure (as per structural subordination)

Liquidity, financial covenants, and headroom analysis

Credit overview and summary

Key credit positives and negatives, key risks and mitigants

Business description, segmental overview, and key operating metrics

Financial, debt structure, liquidity, and covenants analysis

Relative valuation (peer comps) and financial tables

The level of detail and the nature of analysis is customized to each clients specific requirement.

High yield research

We provide focused, deep-dive research support for high yield which commands more active
monitoring of credits in terms of regular news monitoring, credit event updates, and timely
earnings updates. Our services cater to both buy-side as well as sell-side teams. We assist clients
with detailed cash flow models, notes/tearsheets/profiles, organization and capital structure,
relative valuation (peer comps) and bond comps. Further, our analysis also covers aspects such
as deleveraging, financial / negative covenants analysis and stress testing for both public and
private companies.
In addition to issuer analysis, we also provide support on security analysis, in terms of preparing
bond/loan term sheets with summary of key terms and conditions, summary of key affirmative
and negative covenants, and indenture screening.

Distressed debt research

Our distressed debt research team provides support in identifying and analyzing stressed and
distressed investment ideas in the global markets, through in-depth bankruptcy and recovery

analysis. We provide support across credit situations such as non-performing loans/assets,

business or/and financial restructuring cases, debtor in possession (DIP), 363 sale, etc and at
various stages of the investment process. Typically, this is done through services such as:

Quantitative and qualitative screening of ideas (stressed, or near stressed, or distressed)

Crisp insightful tearsheets,

Deep-dive financial models/analysis

Detailed distressed debt and recovery analysis using waterfall model

News and events monitoring + impact analysis

Leveraged loans research

Our leveraged loan team typically supports managers on the asset side of a CLO vehicle. The
team provides support services related to the surveillance/maintenance of the credit portfolios
exposure and new/drive-by deals.
We support the following functions:

Quarterly/annual earnings updates and earnings blurbs

Amendment blotters

One-pager updates (re-financing, re-pricings, A-to-E and covenant waiver transactions)

Credit memos (new/drive-by deals).

Our analysts are well versed with syndication websites (i.e. Intralinks/SyndTrak/Debt Domain)
and comfortable working on different portfolio asset management platforms (proprietary and
third-party).
Structured Finance or Securitization Credit Research
Macro Strategy Research