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Extend the reach of Debt Capital Markets with Deep Credit Insights

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Extend the reach of Debt Capital Markets with Deep Credit Insights

A large South East Asian investment bank with a presence in commercial banking and related financial services for individuals, retail, corporate, and institutional clients. The bank’s investment banking services include corporate finance, equity and debt capital markets (DCM), and derivatives — plus retail and institutional securities brokerage businesses.

Pain Points:

The bank wanted to expand into new markets, including those where it did not have any corporate banking presence or relationships. However, it had a limited ability to originate leads on “capital markets worthy” clients in territories with which it was unfamiliar.

Solution:

A critical goal for the bank, as it attempted to improve its DCM rankings, was to stay ahead of competition, both in terms of lead origination and deal execution.

Summary of Key Performance Indicators (KPIs):

1. Boost volume of transactions it originates, structures, and executes for clients;

2. Better understand the extent of market opportunities in new territories;

3. Increase market share in bonds denominated in foreign currencies;

4. Access tools to facilitate idea generation and stay ahead of competition.

The three main workflows in the capital markets division for which S&P Global Market Intelligence is able to provide solutions: Bond Origination; Ratings Advisory; and Loan Syndication.

Bond Origination

  • The S&P Capital IQ platform: screening of fundamentals, financials, and news to assist lead generation and assess a client’s funding needs.
  • RatingsDirect®: ratings, research, and ratings action information from S&P Global Ratings to form views on pricing vis-a-vis rated peers for similar issuances.
  • Credit Analytics: statistical tools to arrive at a credit score, in a limited financial data environment, to screen for potential issuers.

Ratings Advisory

  • The S&P Capital IQ platform: insights into fundamentals, financials, and news to assist in detailed financial, credit, and scenario analyses.
  • RatingsDirect®: a mix of ratings, research, ratings action, ratings criteria, industry views, and macro-economic research from S&P Global Ratings to enable in-depth views and analysis.
  • Scorecards: an excel-based framework that assists in detailed credit assessment, including expert judgement and qualitative aspects.

Loan Syndication

  • The S&P Capital IQ platform: screening of fundamentals, financials, and news to assist in generating leads and assessing a client’s funding needs.
  • RatingsDirect®: applying ratings, research, ratings action, industry views, and macro-economic research from S&P Global Ratings to assess appetite for exposure.
  • Credit Analytics: enabling the use of credit scoring, proprietary data inputs, imputation, and industry and country benchmark scores.
  • Scorecards: an excel-based framework that assists in detailed credit assessment, including expert judgement and qualitative aspects to decide on the hold or sell-down strategy.
  • Leveraged Commentary & Data (LCD): access to real-time news and trend analysis on U.S. and European leveraged loan, high yield bond, distressed debt, and corporate markets. From the large syndicated market through the middle market, LCD publishes real-time stories on key milestones, from inception through trading, so that the client was able to react to deals and developing trends.

Client Support

Most importantly, from streamlined onboarding to ongoing support, the team was able to access dedicated assistance to respond to questions that might arise:

  • Training sessions at the client’s site helped get the team up to speed quickly
  • A dedicated relationship manager with knowledge of the bank’s industry is available
  • A global secondary support group could be reached whenever needed

Key Benefits:

By bringing together several core elements of the S&P Capital IQ platform and product suite, the bank not only gained access to data and a workflow solution to power greater efficiency. The combination of timely quantitative and qualitative data, as well as automation, has helped the team become more productive, and enabled them to spend more time on structuring, pricing, and executing transactions.

Finally, these improvements had benefits not only for its home market, but across the region where it needed to identify new opportunities to expand.

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