NEW YORK and LONDON, Dec. 21, 2015 /PRNewswire/ -- Confidence is sinking over the current market volatility with the uncertain stage of the economy cycle. Now a surging number of global investors are turning to new types of deep fundamentally analyzed bond opportunities. Take the US struggling retailer, JCPenney (JCP – get report), which is showing signs of operational improvement in recent quarters. It looks a quality company to pick and buy in the high yield retail sector, concealing a double-digit ROI potential in 2016.
The next wave in the value cycle will highlight the importance of stressed and distressed credit and high-yield bond opportunities for investors needing assured income. In response, The Edge Group LLC announced earlier this month the introduction of The Edge Stressed Credit*, a third "next-level" research product presenting global credit investors with alpha-generating stressed and distressed bond opportunities with yields to maturity up to 20%.
"JCP's a great portfolio candidate. In the next year, we see bond returns of 14% for JCP Senior Unsecured Notes, and 17% on a bull case scenario. They're notably attractive compared to those of the peer set including Macy's, Kohl's Corp, Nordstrom, and especially Sears Holdings" said Jim Osman, CEO of The Edge.
"There's no near-term maturities, upbeat guidance led by the new CEO, Marvin Ellison, strong deleveraging backed by lower margin levers, robust liquidity and for comfort there's limited default risk backed by stronger recovery and refinancing", Osman continued.
Albeit straight-talking from Osman, analyst team's 40 page research note could have further sponsor in their argument as all three major rating agencies are positive on the JCP upturn story. The Edge now serves more than 120 leading asset managers and is annually subscribed to for its track record of accurately predicting future valuations of global mid and large-cap companies likely to break up or experience a merger or acquisition.
*The product formally launches on January 4, 2016. The Edge is offering an exclusive free trial period to the first 50 inquiries from globally registered funds, subject to certain conditions that apply. For instant access, please visit http://www.edgecgroup.com/#contact and enter quote "CREDIT2016".
SOURCE The Edge Consulting Group