European Credit Research

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

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Spread Research in the News


Bonds Linked to Good Deeds Lure Yield Chasers Indifferent to ESG – Bloomberg

[...]Benjamin Sabahi, head of credit research at Spread Research, described the targets as “part of the greenwashing trend we see in the euro high-yield market.” [...]

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Le marché « high yield » commence à tanguer – L’Agefi

[...]"C'est un nouveau signe de la nervosité croissante entourant les actifs risqués et de l'indigestion du marché>>, relève Benjamin Sabahi, responsable de la recherche crédit chez SpreadResearch.[...]

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Scope Ratings, Qivalio, Inbonis : trois agences de notation alternatives qui montent – Les Echos

[...]Ces dernières années, de nombreux acteurs de la notation ESG sont passés sous capitaux anglo-saxons. Pas Qivalio, détenue majoritairement depuis juillet 2020 par Andromède, le family office de la famille Hériard-Dubreuil, actionnaire de Rémy Cointreau.[...]

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Here’s What to Watch in European High-Yield Bonds This Week – Bloomberg

Faurecia will join the growing pipeline of high-yield deals slated for later in the year after agreeing to acquire German automotive supplier Hella. The transaction will be financed by a 5.5 billion euro ($6.5 billion) committed bridge facility, which will be taken out with term loans and high-yield bonds, according a company statement. It will also raise 800 million euros of equity. The deal will have a major impact on the group’s credit metrics, with the reported net leverage substantially above 2.0x proforma the transaction, compared to 1.5x previously, analysts at Spread Research said in a note to clients.

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Car Rental Punts Are Turning Into Big Profits for Bond Traders – Bloomberg

[..]Revenues are underpinned by a “continued mismatch between the fleet levels and demand,” according to analysts at Spread Research, who have an overweight rating on Avis’ longer-dated eurobonds.[...]

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Hedge Fund Owners of Europcar to Double Their Money With VW Deal – Bloomberg

“For the funds that took part in the restructuring, it is a great business,” said Mateo Salcedo, a credit analyst at Spread Research-Qivalio Group. “They got a high valuation due to the good moment the industry is going through, and the acquisition removes the uncertainty of what’s going to happen with the travel industry in 2022.”

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Three Deals That Show the Junk Bond Bonanza May Have Hit a Wall – Bloomberg

[...]“The pricing still doesn’t compensate for the risks that the company poses,” said Malick Donval, credit analyst at Spread Research, who issued a sell recommendation to its clients on the new bonds (Ideal Standard) citing the company’s 1 billion euro loan partly due in 2024.[...]

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Here’s What to Watch in European High-Yield Bonds This Week – Bloomberg

[...]In a note published Monday, analysts at Spread Research said they remained cautious on the company’s already weak cash generation and significantly higher leverage and recommended clients sell their exposure.[...]

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Le marché high yield est en pleine forme – L’Agéfi

[..]«Les obligations sont devenues très attractives par rapport aux leverage loans, comme l’a montrée l’augmentation de la taille de l’émission de Nobian», ajoute Benjamin Sabahi, responsable de la recherche crédit chez Spread Research. [...]

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Picard Tries Bond Market Again, Two Months After Rejection – Bloomberg

[...]convincing investors of the firm’s growth outlook remains key, Solweig Pierronnet, senior analyst at Spread Research, said. “Picard will have to reassure investors on growth prospects and measures implemented to control operating costs over the long term as, like all food retailers, we believe that Picard is at the top of a cycle,” Pierronnet said.

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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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