S&P Capital IQ for Fixed Income Professionals

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1 S&P Capital IQ for Fixed Income Professionals As a credit professional you rely on accurate and timely information to help you better evaluate credit quality and monitor the ongoing financial, operating, and market performance of issuers, issues, and counterparties in your portfolios. Credit analysts use S&P Capital IQ for deep market and fixed income research, and to enhance their processes of generating fundamental credit and relative value opinions. COMPREHENSIVE AND TRANSPARENT FUNDAMENTALS PROPRIETARY RATINGS, RESEARCH & CREDIT ANALYTICS ROBUST EXCEL CAPABILITIES RESEARCH & CONTENT Fundamental Data for Public and Private Companies Debt Capital Structure & Detailed Security Information Credit Ratings and Research Updates from Standard & Poor s Ratings Services Investment Research and Estimates Leveraged Commentary & Data (LCD) Credit Default Swaps, Rates, Indices and Macroeconomic Data TOOLS & ANALYTICS Excel Plug-In & Templates Company and Security Screening Comparison against Industry Peers and Benchmarks Short-, Medium- and Long-Term Credit Risk Indicators Templates for Credit Analysis and Credit Surveillance

2 Research & Content for Understanding Corporate Credit Our Fixed Income Summary page provides a detailed view of a company s debt profile and allows for easy navigation through its credit structure. View ratings from Standard & Poor s Rating Services and Moody s Maturity schedule Key credit ratios Latest issuance Idea Generation Screening and Research FIXED INCOME SECURITIES* REGION CORPORATE & GOVERNMENT STRUCTURED FINANCE MUNICIPAL U.S. and Canada 102, ,886 1,512,897 Europe 53, Asia-Pacific 24, Latin America 7,812 7,008 Africa and Middle East 1,634 2 Total 190, ,427 1,512,897 *Data as of December In-Depth Analysis Modeling and Auditability Surveillance Detailed Credit Risk Monitoring 2

3 Fundamental Data for Public and Private Companies Benefit from one of the largest data sets of company financial information available. This includes coverage for more than 60,000 public companies and over 590,000 private companies globally. For public companies, we collect more than 5,000 unique financial data items and 2,500 industry specific terms. A click-through feature traces adjustments and line item level details back to source documents. In addition, all the financials are fully integrated with our Excel Plug-In for cash flow modeling needs. A single click to export all the financials to Excel Audit all financials back to filings View Security Details Source information for all global securities, terms and conditions and pricing in one place. Access security details including issuer, parent, pricing, coupon information, seniority, redemption features, S&P Ratings and Moody s Ratings, CUSIP/ISIN/SEDOL, covenants and advisors. You can also easily locate indentures, prospectuses and credit agreements through the Key Documents tab. 3

4 Debt Capital Structure Access detailed components of the debt capital structure for public companies and private companies with public debt regardless of the size of the issuer. Asset classes include commercial paper, bank facilities, senior and secured debt, as well as 40+ aggregate totals by type, additional supplemental data, credit ratios, and the fixed payment schedules. CAPITAL STRUCTURE* REGION # OF COMPANIES U.S. and Canada 27,765 Europe 13,819 Asia-Pacific 26,456 Latin America 2,542 Africa and Middle East 2,912 Total 73,494 *Data as of December Access to source filings, indentures and agreements 4

5 RatingsDirect is available on the S&P Capital IQ platform Credit Ratings and Research Updates from Standard & Poor s Ratings Services Get a direct view of the fixed-income markets that spans industries, companies and securities with RatingsDirect. You can access Standard & Poor's credit ratings and research, obtain aggregated intelligence at the sector, sub-sector, industry and company level, and conduct in-depth analysis at the instrument and security level. In addition, CreditStats Direct TM provides direct access to credit-adjusted financial statement information for more than 600 global banks and 2,800 corporates and utilities rated by Standard & Poor s Ratings Services with robust comparison tools, customized filters and financial data reports. Access research on the go with S&P Capital IQ mobile apps Investment Research and Estimates Keep up with the latest reports from leading brokers and independent research firms, including deep analysis of credit ratings and trends across sectors, issuers and securities globally. S&P Capital IQ Estimates provide detailed and consensus estimates from over 650 leading investment banks and research firms, helping you drill down on the parent company of securities you follow. [ ] S&P Capital IQ presents over 40 estimates data points such as: per share items, statement items, industry-specific estimates, guidance, commodity estimates Get Unique Insight from Leveraged Commentary & Data (LCD) For over 20 years, S&P Capital IQ LCD has brought together analytics and research to help you quickly compile the latest new-issue and secondary market news, as well as insights on the credit decision with relevant benchmarks and market information. LCD provides real-time coverage of the U.S. and European leveraged loan and high-yield bond markets from deal inception through the secondary market. Distressed market news, pricing, trend analysis, credit statistics, default analysis, as well as in-depth distressed analysis on recovery scenarios and enterprise valuation for high-profile names, are also available. Get latest news and key developments on the S&P Capital IQ platform 600,000+ public and private companies across the globe 30,000+ stories delivered daily 5

6 Credit Default Swaps (CDS) Analyze credit risk using CDS data with comprehensive bid/mid/ask pricing data on a company s senior and subordinate credit default swaps. View over 1,400 global CDS entities. View Interest Rates and Yield Curves Over 800+ interest rates including government and interbank rates are available over the platform. Search the Rate page by country, rate type, and term. Graph information using the interactive chart graphics. Interest rate and yield curve data is fully integrated with our Excel Plug-In. Access Index Performance Monitor the index level, OAS, yield to worst, modified duration and returns for nearly 1,000 Barclay s Global Fixed Income indices through Charting and our Excel Plug-In. Access CDS Index pricing for major bond and loan CDS indices, including the CDX indices in North America and Emerging Markets, as well as the ITRAXX indices in Europe and Asia. 6

7 Get Detailed Historical and Forecast Macroeconomic Data Easily access over 5,500 historical and forecast series of macroeconomic data that is fully integrated with the S&P Capital IQ platform, Excel Plug-In and charting tools. Our macroeconomic data covers major economic indicators, including inflation, employment, GDP, balance of payments, trade, retail and industrial indicators, as well as currency data. Additionally, you can monitor all of the macroeconomic events and announcements through our economic calendar in the platform as well as sync these events to your Outlook calendar with our Outlook Plug-In. Tools and Analytics for Identifying Opportunities and Assessing Issuers and Securities Excel Plug-In Easily build and maintain financial models using the S&P Capital IQ Excel Plug-In. Build cash flow models or comparable analyses and quickly populate spreadsheets with financials, valuation multiples, and company and security information. Utilize pre-built model templates to jump-start your analysis and tailor them to fit your needs. The Formula Builder will help you create fixed income models and our experienced Modeling Team is available to help you further optimize the power of the platform. Screening Identify fixed income securities that meet your investment criteria and further filter your list by combining financials, company information, securities pricing, covenants, terms and conditions, bankruptcy details, and key developments around thousands of other financial and qualitative screening items. 7

8 Peer Comparison and Industry Benchmark Capabilities Use Credit Health Panel to analyze the relative credit quality of exposures and customizable comps with 24 credit-oriented financial metrics per company. Operational, solvency and liquidity scores, as well as an overall company score, are provided for over 200,000 rated and unrated, public and private corporate entities globally. The advanced search process enables you to screen by not only the 24 financial metrics, but also by geography, sector, credit score and Standard & Poor's Rating Services credit rating. In addition, you can use the Excel template to adjust the weights assigned to each of the metrics. Credit risk indicators Credit specific ratios Custom comps Credit Risk Indicators A unique set of quantitative tools provides timely information for identifying weakening credit and fortifying surveillance for both rated and unrated entities in the short-, medium- and long-term. S&P Capital IQ Family of Credit Risk Indicators FUNDAMENTAL CREDIT HEALTH PANEL PD MODEL FUNDAMENTALS CREDITMODEL CREDIT RATINGS SHORT-TERM (Point-in-time) PD MARKET SIGNALS PD MDS CDS SPREAD LONG-TERM (Through-the-cycle) CDS MDS Note: Includes qualitative assessments 8 MARKET

9 SHORT-TERM MEASURES Probability of Default (PD) Model Market Signals use a cutting-edge statistical framework to provide a point-in-time view of credit risk for public corporations that acts as a potential early-warning signal of default between financial reporting periods. The PDs are based on an enhanced Merton-type model. The PDs are expressed as a percentage and are updated daily for more than 38,000 companies. Eastman Kodak Co. PD spike Credit rating downgrade Bankruptcy filing Credit Default Swap-Based Market Derived Signals (MDS), developed by Standard & Poor's Rating Services, are based on a statistical model that evaluates five-year CDS spreads for approximately 1,300 entities globally. The CDS-Based Signals capture the market s daily view on the risk of issuers, industries and sectors in the form of a lower case rating. J.C. Penney Company, Inc. Credit rating downgrade CDS-based MDS decline 9

10 Probability of Default-Based Market Derived Signals, developed by Standard & Poor's Rating Services, are derived from an estimate of a firm s two-year PD for corporates and U.S. bank holding companies, excluding utilities. The model relies on a number of fundamental credit ratios, macroeconomic variables and a distance to default indicator for each company. The PD is then transformed into a lower case rating for approximately 1,900 entities, which takes into account the company s rating, sector, and region. Exide Technologies PD-based MDS decline Credit rating downgrade Bankruptcy filing MEDIUM-TERM MEASURES Probability of Default Model Fundamentals provide an innovative approach to assessing potential default that separates credit risk into two components financial risk and business risk. The PDs are applicable for any public or private company and provide a short- to medium-term view of credit risk. They are based purely on fundamental data financial ratios and macro factors and are updated when new financials are released or there is a change in the macro factors. The PDs are expressed as a percentage and cover nearly 370,000 companies. Patriot Coal Corporation Credit rating downgrade PD increase Bankruptcy filing 10

11 LONG-TERM MEASURES CreditModel is a proprietary suite of statistical models available for over 65,000 corporations globally. The quantitative models use financial statement information to create lower case credit scores, which enable you to quickly evaluate the long-term creditworthiness of thousands of public and private midcap and large firms. Six Flags Entertainment Corporation CreditModel score increase Credit rating upgrade Analytic and Surveillance Templates These templates utilize an Excel Plug-In to combine fundamental data and quantitative measures of credit risk into one single application for a holistic view of credit risk. The templates can also be used to set alerts to identify potentially troubled companies. Customizable timeframe Find biggest movers in credit quality 11

12 Interactive Credit Scoring Our analytic engines allow you to run scenarios and sensitivity analysis on credit analytic outputs. This allows you to analyze potential impacts to quantitative metrics based upon changes in issuer fundamentals. Customize the range of scenarios Analyze 49 scenarios at once S&P Capital IQ is analytically and editorially independent from S&P Ratings Services. CreditModel and PD Market Signals (and various Market Derived Signals) are analytical tools but are not credit ratings. Neither CreditModel, PD Market Signals nor credit ratings should be considered to be investment advice. A credit rating from Standard & Poor's Ratings Services is an opinion of the rated organization's creditworthiness and involves both qualitative and quantitative characteristics. CreditModel and PD Scores are based on but differ significantly from Standard & Poor's Ratings Services criteria and do not include a qualitative assessment or opinion. CreditModel and PD Market Signal scores are represented by lowercase nomenclature to differentiate them from S&P Ratings Services credit ratings. Charts, graphs and screenshots are provided for illustrative purposes only. Copyright 2014 by Standard & Poor s Financial Services LLC (S&P), a part of McGraw Hill Financial. All rights reserved. STANDARD & POOR S and S&P are registered trademarks of Standard & Poor s Financial Services LLC. CAPITAL IQ is a registered trademark of Capital IQ, Inc. ipad is a trademark of Apple Inc., registered in the U.S. and other countries. Microsoft, Excel, PowerPoint, and Outlook are registered trademarks of Microsoft Corporation in the United States and/or other countries. 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