DEBT AND EQUITY ANALYSES

קבוצת אנטרופי » Debt and Equity Analyses

DEBT AND EQUITY ANALYSES

In recent years there have been significant permutations in the scope and composition of business credit, particularly, as it relates to the accelerated development of the off-bank credit market and the role of institutional investors in such market. The compelling increase in investments by institutional investors in company issued debentures and bonds resulted in the institutional investors becoming a substantial and dominant player in the corporate bond market.

The Hodak Committeee whose conclusions were submitted in February 2010, motivated the institutional investors to apply better supervision and controls over debentures and bonds they acquire for the public savers. Within it, recommendations were made, that include among others, stipulating contractual conditions and financial covenants in issuances, expanding the basis of holding negotiations between the financial institutions and the issuing companies, and preparing a written analysis prior to partaking in issuances and debenture or bond acquisitions in the secondary market.

Entropy Financial Research Services provides bond and debt research services that are adapted to the guidelines issued by the Hodak Committee for institutional investors in the capital market. Our research department conducts thorough examinations of the bonds and debentures prior to their issuance as well as an ongoing follow-up of the conduct of the company issuing the bonds or debentures until their full repayment. Our research department reviews most of the issuers in Israel, be it tradable or non-tradable debt, as the same gets updated from time to time according to the Hodak Committee guidelines.

The debt research conducted by Entropy Financial Research Services is of the highest professional level, and it enables the institutional investors, in addition to meeting the regulatory demands, to improve and make their bond or debt investment process more efficient.

For more information, please contact Noa Zvi, +972-3-5377730, ext. 130 email: noa.ziv@entropy.co.il

DEBT AND EQUITY REVIEWS FOR FUND MANAGERS

Entropy Financial Research Services performs debt and equity reviews for mutual fund managers, according to regulations published by the Israeli Securities Authority pertaining to the disclosure of the choice of investment policy and its management process amongst mutual fund companies and portfolio managers. These regulations were published following the Hodak Committee’s instructions pertaining to the implementation of the latter. The analysis work includes the characteristics of the company, an analysis of the business environment, recent developments in the company’s activities, analysis of risk factors, the company’s financial profile, balance sheet, cash flow, profit and loss statements, and a three-year forward looking forecast of sources and applications (in the case of a debt analysis), or valuation (in the case of an equity review). The database of reviews and analyses covered by Entropy Financial Research Services includes more than 200 companies that are regularly reviewed.

For more information, please contact Noa Zvi, +972-3-5377730, ext. 130 email: noa.ziv@entropy.co.il

Amendment No. 20 of the Israeli Companies Law, 5759-1999 (“Amendment 20”) – Application and Highlights

Providing an opinion on the matter of implementation of compensation and employment terms of senior office holders in public companies is based on a quantitive review in reference to the scope of the compensation package, as well as a qualitative review of its terms. Our review examines whether the offered compensation package could be considered as a tool to promote and achieve the company’s goals and targets. This is a fundamental principle in the policy of Entropy Financial Research Services, deeming it vital for there to be a correlation between the compensation package of the senior office holders and the company’s medium-long term performance, and for there to be an alignment of interests between the senior office holders’, the company and its performance. We note that this stands as the basis of Amendment 20 that aimed at closing the lack of correlation and alignment that existed between the actual compensation and the performance of the companies in the years preceding the amendment.