Credit Research Case Study

Client Background: The resources of an automotive credit analyst at the North American branch of a bulge bracket bank were becoming stretched in trying to continuously monitor and appraise its portfolio of covered stocks. As a result, the analyst sought flexible support to help monitor his research universe together with all significant events affecting the overall industry. In response, Copal was able to provide a team of three industry professionals with specialist knowledge of his industry to collect and analyze information as it became available and to support the analyst in briefing his credit research clients on the implications of the most significant developments within the automotive industry.

Service Offerings: The Copal team was able to utilize the experience of its existing global automotive industry specialists whose expertise ab initio provided the analyst with an in-depth understanding of the market and developments. Services provided included financial ratio analysis, covenant and indenture tracking, comparable debt analysis, off-balance sheet exposure analysis, and risk profiling. In addition, Copal created a watch list of major suppliers and competitors at risk of default.

Results: The client was better able to keep track of industry developments including time-sensitive identification of risks and opportunities. The client was also able to avoid hiring additional full time staff, saving his firm valuable recruiting time and expense. Copal’s involvement allowed the client to satisfy its current needs on a short-term basis and significantly increase the quality of its research offerings to its credit clients.

Contact us: investment.research@copalpartners.com