European Credit Research

High Yield - Convertible - Cross Over
Integrating ESG factors into
fundamental credit research and
investment recommendations

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Codere tries again to shore up liquidity – IFR

[...]"I do not believe that Codere's capital structure is unsustainable," said Mateo Salcedo, credit analyst at Spread Research. "The problem is that the company's Ebitda has been highly impacted [by the pandemic], so it does not have enough money to make interest payments. However, I believe that creditors will accept the liquidity raise to allow the company to pay interest and avoid default – and then hope for circumstances to improve in the summer, which I believe they will, assuming the vaccination rollout goes as expected."[...]

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German Luxury Retailer Douglas Signs $2.8 Billion Rescue Deal – Bloomberg

[...]“I would have expected a double-digit coupon given its junior ranking in the capital structure, but the market is hunting for yield,” said Solweig Pierronnet, senior credit analyst at Spread Research in Lyon, France [...]Despite the challenges it faces, Douglas persuaded investors to look beyond the pandemic to assess the company’s financials, and how much debt it can carry. The company’s adjusted earnings predictions are “very aggressive,” according to Pierronnet. “Investors usually don’t like to price the future, but that’s a reflection of the current environment,” Spread’s Pierronnet said.[...].

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Euro High-Yield Credit Shrugs Off Slow Vaccine Rollout — Market Talk DJN

European high-yield corporate bonds have so far brushed off the slow vaccine rollout in Europe, says Spread Research, which has been exacerbated by some countries pausing the administration of the AstraZeneca jab on concerns over possible side effects. "Political nervousness related to the AstraZeneca vaccine being halted in most continental European countries is likely to delay the bloc's economic recovery," the independent credit research firm says. However, the euro high-yield credit markets have been broadly insensitive to this," with spreads neither widening or tightening, it says. The Euro high-yield market has remained stuck with flattish spreads at 368 basis points versus the benchmark government debt and zero returns, leaving the year-to-date total return at 1.6%, it says.

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Europe’s Debt Markets Boom With Deals Across Risk Spectrum Range – Bloomberg

[...]Despite overwhelming demand for new transactions as investors clamor for yield, CGG’s deal also showed how investors were able to maintain discipline on pricing, according to analysts at Spread Research. “The deal demonstrated that investors have maintained pricing power in pricing a troubled oil and gas company, as the yield offered was much higher than market indexes for comparable ratings,” the analysts said.[...]

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Hertz thrashes out euro bond restructuring – Refinitiv

[...]"I see the treatment that investors are getting now and don't think it's bad for them," said Mateo Salcedo, credit analyst at Spread Research. "Hertz before the crisis was highly leveraged. Their recovery prospects were good - because of their assets - but when the crisis came they were not in a good position to face it. This restructuring programme will allow Hertz to return with a leaner structure. Before, they had a huge amount of debt but now they are looking to repay the fleet debt. Post-restructuring, the bondholders will have 70% of cash recovery and the new bonds, which are secured."[...]

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Les émetteurs « high yield » se ruent sur le marché – Market Blog – L’Agefi

[...]"Le marché primaire HY ressemble de plus en plus au marché primaire investment grade (IG) pendant la période 2010-2015, lorsque certains investisseurs achetaient systématiquement les nouvelles émissions car tout était en hausse", note Benjamin Sabahi, responsable de la recherche chez SpreadResearch.[...]

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Europe Debt Risk Falls as Investors Clamor for Higher Yields – Bloomberg

[...]“The pricing of the new Kloeckner Pentaplast notes says a lot about investors’ appetite for fresh paper and risks,” Benjamin Sabahi, head of research at Spread Research in Lyon, France, wrote in a note to clients on Friday.[...]

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Biogroup Inaugural Bond 9x Oversubscribed, Spread Research Says – Bloomberg

Biogroup’s bond sale attracted more than twice as much interest as the average European HY deal in 2019 and 2020, according to a report by the independent credit research company [...]

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Les émissions de dette high yield vont rester soutenues – L’Agefi

[...]Benjamin Sabahi, responsable de la recherche crédit chez Spread Research [...] prévoit 126 milliards d’euros d’émissions bruts (86 milliards nets) [...]

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Investors to Extend Hunt for Yield in Riskier Corporate Debt – Dow Jones

- Investors are likely to continue to scour riskier euro-denominated corporate bond markets in an effort to rack up positive returns within a low-yield environment, says Spread Research [...]

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ESG Integration


Spread Research has been a pioneer in Credit Research for the last 15 years. Rightly anticipating the new paradigm implied by the ESG upheaval, we have been working for 2 years to integrate ESG factors into our fundamental credit analysis. To achieve this timely and consistently, we have tied-up with EthiFinance, the leading sustainability rating agency with 15 years expertise under its belt. To back-up this effort, we have been fuelled by leading institutional investors such as Aviva and French insurance companies. In effect, for most institutional investors , investing in credit without taking stock of ESG is not an option any longer.


The result of our work, performed with a joint ESG/Credit team of ca. 25 analysts, is a first-class, innovative process of consistently embedding ESG into our financial analysis. Circa 45 ESG relevant criteria have been selected with a view to specifically enhance our credit view.


This new service is available as a bundle (e.g. for our coverage, enhanced credit analysis plus ESG analysis). Our proprietary ESG analysis is also available on a stand-alone basis (ESG score plus E, S and G subscores and granular information supporting these scores). Choosing Spread Research gives you an edge, even more than before. Because you are certain that you get the best, most comprehensive and holistic assessment of a given issuer’s credit risk in the European High Yield, Convertible and Cross-over segments. There is just simply no other independent provider offering this service at present. Something your management, your clients and your clients’ clients (not to mention your kids!) are asking for more and more loudly as everyone is seeking to enhance his or her Socially Responsible / Sustainable / Impact investment profile.

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