Debt and Equity Analysis

In recent years there have been substantial changes in the volume and composition of business credit, especially with regard to the accelerated development of the non-bank credit market and the share of institutional bodies in this market. The significant growth in the scope of investments of institutional bodies in bonds issued by companies turned the institutional bodies into a very dominant factor in the corporate debt market.The Hodak Committee,whose conclusions were submitted in February 2010, prompted the institutional bodies to seek better control on the bonds they purchase on behalf of their public of savers. In this context, recommendations have been formulated accordingly and they included, among other things, defining contractual stipulations and financial criteria in issuances, extending the infrastructure enabling negotiations between the institutional bodies and the issuing companies, and preparing a written analysis prior to participation in issuances and bond purchases in the secondary market.Entropy Financial Research Services provides debt research services to institutional bodies in the capital market, according to the guidelines of the Hodak Committee. The firm’s Research Department conducts an in-depth examination of the bonds prior to their issuance, and operates an ongoing monitoring process on the company issuing the bonds, until their final maturity date. The Research Department reviews most of the issuers in Israel, as well as marketable and non-marketable debts, and periodically updates this data according to the Hodak Committee guidelines.

Debt research at Entropy Financial Research Services is conducted on a highly professional level, enabling institutional bodies, in addition to meeting regulatory requirements, to improve and streamline the bond investment process.

Entropy reviews about 300 companies on an ongoing basis. For the list of issuers, click here.

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