Just is in the process of internalising the management of a portion of its public bonds, including fundamental credit coverage. As such, the credit team is expected to grow and play a major role in order to make internal management successful. The majority of the credit analyst’s time will be dedicated to internally managed assets. It is worth noting that the majority of the public bonds will still be managed by external asset managers (EAM), requiring the analyst to engage with them on a regular basis to ensure the assets are performing as expected.
As a member of the investment team, the credit analyst (the analyst) will be assisting the credit specialist in (1) monitoring existing bond exposure (internally and externally managed), (2) performing fundamental credit analysis on new investment opportunities (sourced internally and externally) and (3) articulating executable investment recommendations for all public bonds and private loans. The analyst is expected to cover between 20 and 40 investment grade issuers across two to four sectors.
Internally managed assets – public corporate bonds
•Formulating fundamental credit recommendations for each existing exposure and new bond investment
•Maintaining an updated and standardised 1-pager for each asset within the portfolio
•Keeping financial models up to date and updating the team after each earnings release
•Maintaining an up to date buy list, including fundamental credit recommendation (internal rating view), relative value assessment, preferred tenors and positioning within the capital and corporate structure
•Maintaining an updated watchlist and informing the team of any news that may change a fundamental credit recommendation
•Writing sector and issuer reports to be presented to some of the committees the CIO and DCIO attend to
•Assisting other members of the Investments Team or any other team in matters related to bond exposure
Externally managed assets
•Public bonds – the fundamental credit work is expected to be performed by EAM. As such, the analyst is expected to form, under a relatively tight timeframe, a credit view on issuers. In that context, the focus would be on assessing attractiveness of the sector and credit rating stability. The analyst will be encourage to engage with EAM
•Private loans – although the fundamental credit work will be done by EAM, more flexible timeframe means that the analyst is expected to have a deeper involvement and engage more extensively with EAM. The analyst will form a view in terms of current and expected credit rating, issuers’ business plans, and structure of transactions (e.g. security and covenant packages)