You are a portfolio manager or you run a family office ?
ALGOSAVE offers to credit investors high-yielding and risk-return efficient bond issues and credit portfolios.
Bundled with peace of mind and BANG ON investors’ risk-return target.
Read it all : here.
ALGOSAVE ISSUER DATABASE is a user-friendly tool that lets you easily check if your bond investments are aligned with your client risk appetite.
It also allows you to increase you risk-return while staying within the boundaries of your investment constraints.
Use ALGOSAVE ISSUER DATABASE to increase your investment performance with peace of mind.
ALGOSAVE ISSUER DASHBOARD
With ALGOSAVE ISSUER DASHBOARD, you are sure that your bond investments are ALWAYS in line with your client’s risk constraints.
For instance, you are sure that you can hold on to that your 5-year BP Plc bond in your conservative client portfolio. For now.
Indeed, ALGOSAVE ISSUER DASHBOARD shows you that, in a stressed macro-economic scenario – the purple diamond in the graph – BP plc live – credit rating drops from its current AA- to BBB in 2-years time but remains investment grade, above BBB-, over the next 5 years.
However, ALGOSAVE ISSUER DASHBOARD also show that BP credit rating plunges to BB+ in 2-years time in ALGOSAVE stressed macro-economic scenario (see the red circle). So, let’s keep an eye on this bond investment. This required attention is also reinforced by 2 other metrics : The high average Loss Given Default (LGD) in stressed macro-economic scenario and the heavily left-hand tailed issuer asset value – EV – Distribution.
Now let’s assume that BP PLC. is issuing a new 5-year deeply subordinated bonds which will offer an additional 350 Bps compared to your current senior unsecured bond holding. Should you go for it ? Is the risk reward worth it ?
This table shows that in stressed macro-economic scenarios, BP PLC. 5-year cumulative default probability shoots up to 38.4% – from its current 3.6%.
At the same time the average 5-year unsecured Loss Given Default increases from benign-scenario 59% to stressed-scenario 81%.
Knowing that the Loss Given Default on the proposed BP PLC. deeply subordinated bond is 100%, the additional loss is (38.4%-3.6%) x (100%-81%) = 6.6%.
Assuming a 4-year spread duration for this 5-year bond, the minimum additional required credit spread is 6.6% / 4 = 1.65%.
The risk return of the new BP PLC. bond offering – which yields an additional 3.50% – flies high above this 1.65% break-even. Switching from your current senior unsecured bond to BP PLC. proposed subordinated bond is definitively worthwhile.
Also with ALGOSAVE issuer Issuer Database, with ALGOSAVE ISSUER DATABASE, build high-yielding AND risk/return efficient credit portfolio.
With peace of mind and BANG ON target.