< The 2014 All-Europe Fixed-Income Research Team
Newcomer Daniel Vaun of J.P. Morgan captures second place in this sector, which has not previously generated sufficient support to warrant publishing. “Dan is a sharp up-and-coming star,” proclaims one British portfolio manager. Initiating coverage in January 2013, he hit the ground running and now covers 50 bond issuers from his London base, while keeping an eye on an additional 20. One name he has favored is Southern Water Services, a U.K.-based regulated water and sewage provider whose parent is Greensands Holdings, also of the U.K. In May, Vaun upgraded the company from neutral to overweight, citing a series of management changes and rapid deleveraging. The Southern Water (Greensands) sterling notes maturing in April 2019 with an 8.5 percent coupon were trading at 530 basis points over gilts and by year-end had narrowed to 400 basis points. For 2014, however, Vaun advises investors to “adopt a cautious and considered approach,” particularly in light of likely regulatory actions that could “deteriorate the sector’s risk profile,” he says. |