Alerts and Opportunities Reports

by Merritt Research Services, LLC


Purpose

The primary objective of the Alerts and Opportunities (A&O) reports is to identify data outliers or unique events that fall outside the normal or expected parameters for a particular credit sector.

  • Selected data elements will identify interesting situations that may lead the subscriber to reassess a credit through further investigation.
  • Commentary will be brief and may not be inclusive of all factors deemed to be important.
  • Report is intended to be a quantitative and qualitative filter designed to enhance the surveillance process.

What is Included

The summary report will focus on the following questions for each credit selected:

  • What outliers triggered the analysis?
  • What are the relevant data observations that reinforce, explain, or bear a relationship to the outlier elements or unique conditions?
  • Are there conditions that offset, mitigate or exacerbate an outlier factor?
  • What insight or implication is suggested by the outlier finding that suggests either a cautionary warning or tip-off of a potential opportunity?

How are the Credits Selected?

The initial beta test list of sample credits have been identified from update lists spanning the last four months. If and when the product is launched, future A&O reports will normally be selected by using a variety of quantitative and qualitative data filters that are chosen based on the most recent set of audit reports released by Merritt Research Services LLC each Monday. 

Credits are likely to be considered as candidates for A&O reports based on the size of total debt outstanding or if they are considered to be widely held by the municipal bond market. Selected credits are drawn from standard data sectors covered by Merritt Research Services LLC.

There is no defined or automatic formula used to select the credits or the specific data elements and conditions that are identified as triggers for an A&O report. Analysts involved in the project apply a combination of conventional and intuitive approaches to spotlight interesting anomalies. 

Users will find these reports useful in enhancing and broadening their surveillance efforts and will also find the reports instructive to their understanding of some of the data fields, nuances and capabilities of the CreditScope product.


Frequency

On Monday, April 23rd, Merritt Research Services and Investortools will begin providing Alerts and Opportunities reports in .pdf format to the select few clients that have been invited to, and have confirmed their participation in, this beta program. During the Beta phase, A&O reports will be delivered to your inbox 3-5 times per week for approximately 4 weeks. 

These valuable reports are free of charge and we only ask that you be willing to answer a few follow-up questions half-way through and at the end of the program.


Fine Print

 

 

 

  • The Alerts and Opportunities Reports are confidential and should not be redistributed.
  • The Alerts and Opportunities Reports are not intended to provide a comprehensive review of all factors that are critical to final evaluation or credit assessment. Consequently, A&O reports are not intended to be a buy, sell, or hold recommendation to users. An Alerts and Opportunities report is intended to enhance an investor's surveillance program but not be an end product for investment purposes. Investors should look at the report as a first step to identifying notable factors that might influence current or credit standing. Insights are interpretations base on an opinion. No one should rely solely on the report to make a final investment conclusion.