< The 2014 All-Europe Fixed-Income Research Team
After three years at No. 1, Richard Phelan and his Deutsche Bank trio slip to second place. Based in London and tracking approximately 100 issuers, the team has grown by one member over the past year. Among the researchers’ recent standout calls are a pair of well-judged negative positions. In November 2012 they advised clients to sell the February 2014 8.5 percent senior secured notes of Zlomrex International Finance, a subsidiary of Polish steel producer Cognor. Disappointing quarterly results led them to believe that refinancing risk was increasing. Five months later, with the credits down from €80 to €75, they discontinued coverage, on the expectation that Zlomrex would default. Sure enough, in December it sought bankruptcy protection, and by year’s end the notes had collapsed to €59. In June they initiated coverage on Netherlands-based coal producer New World Resources with a sell rating on its 7.875 percent senior unsecured notes due in 2021, largely on soft coking-coal prices. Through December the notes plunged from €58 to €38. “Rich is the most experienced analyst following these credits,” attests one portfolio manager. Phelan also leads a team that warrants a runner-up position in High-Yield Manufacturing/General Industrials. |