Xtract Research LLC, has officially launched its Credit Agreement Service as a follow on to its widely used Indenture Service.
This service provides access to a highly organised database of Credit Agreements, Amendments, Cross Collateral Agreements and other public loan documents. Xtract’s analysts bookmark critical key terms of the loans, key covenants, default events, leverage ratios, liens, pledge agreements and more, to provide easy navigation and fast analysis.
In addition, users have the ability to add notes, highlights or bookmarks to the document as well as upload additional documents to create their own virtual proprietary database. The investor can focus on the value added analytical process, not on searching for documents. Xtract’s Indenture service is widely used by institutional investors in the fixed income markets, particularly convertible bonds.
“As the credit crisis contagion has spread from subprime and seized the corporate debt markets, access to key documents and the ability to efficiently navigate them is critical. This is not a time when people can get away with not doing the work and not reviewing these critical documents,” says Michael Knox, founder of Xtract Research and a former High Yield and Convertible hedge fund manager.
Xtract Research also captures amendments and supplemental indentures critical to timely credit analysis. It is the amendment that often erodes or enhances investor protections.
Nervous corporate investors are re-examining investments made in LBO debt, covenant-lite 2nd liens, leveraged loans and high yield debt. Savvy investors examine indentures and credit agreements, the legal governing documents of their investments, to avoid the disasters that befell the mortgage backed market and certain areas of the loan market.
“Recent events have driven home the point that the devil is in the detail when doing credit research. It has never been more important to have the ability to quickly access and navigate critical corporate documents,” says Michael Murphy, Xtract’s Head of Global Sales.