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J.P. Morgan’s Global Index Research is a market leader in fixed income indices with over 30 years of experience as thought leaders developing indices in emerging and developed markets. The team creates index solutions through our markets-aligned approach by integrating J.P. Morgan’s top-rated research franchise to provide first-class client service. Our objectives are to provide knowledgeable insights, bespoke products and informed index management decisions that clients can rely on.

Since the launch of our first fixed income index in 1989, our business has evolved to meet the diverse needs of our clients in an increasingly complex and data-driven market environment. Our product suite now incorporates multiple asset classes including ESG, CLOs, Rates, Sovereign, Credit and more amongst Emerging and Developed Markets.

Broad coverage across fixed-income markets

Part of Award-Winning Fixed Income Global Research

Global Client Reach

The J.P. Morgan Index Advantage

As part of J.P. Morgan’s top rated Global Fixed-Income Research franchise , the J.P. Morgan Index Research group:

partners closely with Research analysts to provide the best-in-class benchmark methodology and insights

offers rules-based market representative indices that investors can select as part of their active or passive fund management processes

provides custom benchmark services working alongside our dedicated index research specialist(s) to tailor your own index strategy

For the J.P. Morgan Index Research Group,  investor engagement is key to shaping the fixed-income index landscape :

Leveraging the knowledge and experience of the wider J.P. Morgan franchise

Providing transparent discourse and partnership for clients to effectively manage their exposure to our indices

Soliciting feedback via annual governance consultation meetings

To assist our clients in their journey to adopt ESG practices in their investment decision making , since the initial launch of our JESG index family in 2018, we have focused on developing a full suite of ESG Index products which:

Uses a balanced application of ESG factors

Provides clients the flexibility to have bespoke index solutions using our ESG framework

Offers unique insight and consultations with our dedicated ESG index specialists

As Development Finance Structuring Agent (DFSA), we assist corporate and sovereign clients in preparing disclosures of the anticipated development impact of their intended projects or activities in emerging markets. We provide a development impact assessment, a report that applies our methodology to the transaction, produces an intensity score, and provides a framework for reporting on the impact of the transaction over its time.

The JPM DFI assists investors to identify investment opportunities in transactions with anticipated contributions to the UN SDGs.

The JPM DFI collaborates with ODIs (such as national and multilateral development banks) on transactions with sustainable development impact. For example, J.P. Morgan may serve as a bond underwriter for the ODIs and may work with DFIs that act as an anchor investor in a transaction.

JESG Green Bond Index

Jamie Dimon: Today the world is facing a number of significant environmental, social, and governance challenges. As a global financial institution, JPMorgan Chase recognizes, that our business decisions have the potential to impact the environment, and surrounding communities. Climate change is one of the priorities we are addressing. We are growing our capabilities, to help clients raise the capital they need, to invest in projects and initiatives, intended to achieve positive environmental and social outcomes. And we are calling for coordinated policy solutions that can help all of us effectively confront this threat. In 2020, we are aiming to facilitate $200 billion dollars in financing, to drive action on climate change, and advance the objectives of the United Nations Sustainable Development Goals. There are numerous ESG initiatives the firm is undertaking and we'll continue to expand our commitment to sustainable business practices to better serve our clients, customers, employees, and our local communities. Thank you.

Marilyn Cece: J.P. Morgan is proud to be one of the original co-authors of the Green Bond Principles. And to continue to serve on its executive committee, we are pleased our involvement has given rise to the further development and expansion of the sustainable debt capital markets, including the social bond principles, sustainability bond guidelines, and the most recently the sustainability linked bond principles, providing the market best practice guidance. Our firm's approach to ESG has facilitated partnerships across various lines of business at J.P. Morgan enabling us to better serve our issuer and investor clients.

Gloria Kim: Responsible investing is increasingly being integrated into our index business and in J.P. Morgan's research overall. We recognize there's an opportunity, but also a responsibility, to better serve and support our clients, as they advance in their own ESG capabilities. With this in mind, our index team launched the J.P. Morgan ESG Suite of Indices. It's designed to provide investors with a foundational framework to incorporate ESG discipline within their investment process, regardless of where they are in their ESG journey. Since the launch in 2018, the assets managed against the J.P. Morgan ESG indices have grown exponentially. Our latest edition to the ESG index lineup will be a green bond index, with the support of Climate Bonds Initiative. It will explicitly contain green bonds as determined by CBI. This index is unique in that it rewards certified green bonds that are aligned with the Paris Agreement of two degrees warming verses just general green bond issuances. And we believe this will help promote the transparency and vigor the green bond market needs to achieve scale. Thank you for your continued partnership and support for J.P. Morgan's global index research offerings and we will continue to service you with more innovative products. Thank you.

Environmental, Social, and Governance (ESG)

The J.P. Morgan ESG (JESG) Index Suite builds upon our flagship fixed-income indices implementing an ESG risk mitigation methodology while still adhering to the core risk-reward profile of the underlying asset class The JESG Index Suite offers coverage across multiple asset classes, including:

• Credit bonds universe tracked by the JESG Global Corporate Index (JESG GCI) , JESG Corporate Emerging Markets Bond Index (JESG CEMBI) , JESG Asia Credit Index (JESG JACI)
• Sovereign bonds tracked by JESG Emerging Markets Bond Index (JESG EMBI) and JESG Government Bond Index – Emerging Markets Index (JESG GBI-EM)
• The JESG Green, Social, and Sustainability Bond Index (JESG GESSIE) and JESG Green Bond Index (JESG GENIE) track global issuance of labeled debt instruments.
• JESG GBI-EM
• JESG GESSIE

The J.P. Morgan sovereign indices offer extensive coverage across developed and emerging markets local currency bonds:

• Developed market local currency bonds are tracked by the J.P. Morgan Government Bond Index (GBI) , complimented by the J.P. Morgan US TIPS Index (JUSTINE) , the J.P. Morgan Euro Linker Securities Index (ELSI) , and the J.P. Morgan Gilt Inflation Linked Local Index (GILLI)
• The J.P. Morgan Government Bond Index Emerging Markets (GBI-EM) covers emerging market domestic sovereign bonds
• The GBI Aggregate Index (GBI-AGG) tracks sovereign local currency bonds across developed and emerging markets, while GBI-Cross Markets Index (GBI-CM) primarily tracks fixed-rate developed market local government bonds with exposure to advanced emerging markets
• Region-specific indices include European Monetary Union Index (EMU), China Aggregate Index , and the J.P. Morgan Asia Diversified Index (JADE) family exclusively covers local currency bonds within the Asia region
• GBI Aggregate / Diversified
• GBI Cross-Markets
• JADE Global Diversified
• JADE Broad Diversified

Developed Markets

Inflation linkers, emerging markets.

• GBI-EM Global Diversified
• GBI-EM Broad Diversified
• GBI-EM Narrow Diversified
• China Aggregate

Within the credit space, we offer a broad suite of indices covering both developed and emerging markets universe:

• Our flagship J.P. Morgan Emerging Markets Bond Index (EMBI®) family covers hard-currency denominated sovereign bonds, while Next Generation Market Index (NEXGEM) focuses on the frontier economies
• Emerging markets corporate bonds are tracked by the Corporate Emerging Market Bond Index (CEMBI) , the J.P. Morgan Asia (JACI) suite, the Central America and Caribbean (CACI) , and the Middle East Composite (MECI) indices
• The J.P. Morgan Global Corporate Index (GCI) suite of indices tracks corporate bonds across developed and emerging markets

Global Corporates

• EMBI® Global / Diversified
• EURO EMBIG / Diversified
• CEMBI Broad / Diversified
• CEMBI Narrow / Diversified
• CEMBI+ IG / HY
• JACI / Diversified

Securitized

The J.P. Morgan Securitized suite of indices provides a wide range of coverage within the securitized space:

• The J.P. Morgan Collateralized Loan Obligation Index (CLOIE) is the first rule-based total return benchmark designed to track the USD-denominated, broadly syndicated, arbitrage US CLO market
• The J.P. Morgan Asset Backed Securities Index (ABS) represents US dollar denominated tradeable ABS instruments.
• The J.P. Morgan MBS Agency Index (MAX) is an in-depth measure of the US Mortgage-Backed Securities fixed-rate agency market

Products within the rates & FX space:

• The Emerging Local Markets Index Plus (ELMI+) tracks total returns for local currency denominated money market instruments in emerging market countries
• The J.P. Morgan Cash Index serves as a reliable performance benchmark for a fund’s cash component and are offered in multiple tenors
• Cash Index - Euro / Global

Cross-Asset

Within the Cross-Asset space:

• The J.P. Morgan Global Aggregate Bond Index (GABI) unifies all core J.P. Morgan bond indices under a single platform, leveraging flagship indices such as the EMBI ® , GBI, and CLOIE which are industry standards in their respective asset classes
• Complementing the global benchmark is the US-only GABI - the GABI US is a holistic gauge for the entire US fixed income market capturing all USD denominated debt within the GABI
• The J.P. Morgan Emerging Markets Blended (JEMB) suite of indices is an aggregate EM fixed income benchmark that blends US dollar and local currency denominated sovereign, quasi-sovereign, and corporate bonds

Bespoke Solutions

The J.P. Morgan Index Research team offers a custom benchmark experience where clients work alongside a dedicated index research specialist to tailor their index strategies across various asset classes.

• Custom indices and ETF benchmarks – tailored solutions for portfolio management and risk assessment for asset owners, asset managers, sovereign wealth funds, ETF issuers, and more
• The J.P. Morgan Index Research Replication Strategy (IRR) offers durable cash-based passive indexing strategies for investors looking to efficiently replicate the performance of the J.P. Morgan EM fixed income suite of indices. The IRR platform aims to optimize both execution and coverage
• Custom Indices
• Replication

Introducing the J.P. Morgan EM Credit Core Index

Introducing GBI-EM Net-of-Tax Index Return Series

Are European CLOs ready for a benchmark?

Investing for the Future J.P. Morgan ESG Fixed Income Suite of Indices

Introducing the J.P. Morgan ESG Global Corporate Index

Partner with our Global Index Research team to design your bespoke index solution

Access to JPM Indices

A global franchise with teams located across Asia, Europe and the United States offering convenient Index access via:

J.P. Morgan Markets

Index Manager

Direct Distributions Web-based application or API All major third-party vendors

For platform access, contact Index Licensing at [email protected]

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For more information, speak to a member of our team:

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Student Loan Debt: Who is Paying it Down?

Evidence from administrative banking data, credit bureau student loan data, and public records on race

2020-08-10T00:00:00.000+05:30

Expanded Unemployment Benefits and the Impact of Inaction

2020-07-31T00:00:00.000-05:00

Data Dialogue: The Initial Impact of COVID-19 on Consumer Spending and Local Economies

2020-07-22T00:00:00.000+05:30

Small Business Owner Race, Liquidity, and Survival

Racial Gaps in Small Business Outcomes

2020-07-20T00:00:00.000-04:00

Small Business Financial Outcomes during the COVID-19 Pandemic

2020-07-16T00:00:00.000-05:00

Report Consumption Effects of Unemployment Insurance during the COVID-19 Pandemic

2020-07-15T00:00:00.000-05:00

Consumption Effects of Unemployment Insurance during the COVID-19 Pandemic

2020-07-01T00:00:00.000-05:00

The Early Impact of COVID-19 on Local Commerce Report

Changes in Spend Across Neighborhoods and Online

2020-07-01T00:00:00.000+05:30

Fed watchers now turn their attention to September

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The Housing Wealth Effect in the Post-Great Recession Period

Evidence from Big Data

2020-06-25T00:00:00.000+05:30

Initial Impacts of the Pandemic Reflect that Families Changed their Saving and Spending Behavior

2020-06-24T00:00:00.000+05:30

Small Business Financial Outcomes during the Onset of COVID-19

2020-06-03T00:00:00.000+05:30

Data Dialogue: National Urban League, PolicyLink, and the Joint Center for Political and Economic Studies Discuss Racial, Economic, and Social Equity

The Early Impact of COVID-19 on Local Commerce

2020-05-29T00:00:00.000+05:30

Data Dialogue: The Economic Impacts of COVID-19 on Small Business

2020-05-27T00:00:00.000-04:00

The Initial Household Spending Response to COVID-19 Part 2

Evidence from Credit Card Transactions - Part 2

2020-05-20T00:00:00.000-04:00

Tracking Spillovers During the Taper Tantrum

Evidence from Institutional Investor Transactions in Emerging Markets

2020-05-14T00:00:00.000-04:00

The Initial Household Spending Response to COVID-19

Evidence from Credit Card Transactions

2020-05-04T00:00:00.000-04:00

How COVID-19 is impacting local economies and small businesses

A Cash Flow Perspective on the Small Business Sector

2020-04-20T00:00:00.000+05:30

Racial Gaps in Financial Outcomes

Big Data Evidence

2020-04-16T00:00:00.000-04:00

How COVID-19 could widen racial gaps in financial outcomes

2020-04-09T00:00:00.000-04:00

Forbearance for mortgages a short-term solution; savings programs for the long term

2020-04-01T00:00:00.000-04:00

Small Business Cash Liquidity in 25 Metro Areas

2020-03-31T00:00:00.000-05:00

Expanded unemployment insurance may lessen impact of layoffs

JPMorgan Chase Institute take

2020-03-31T00:00:00.000-04:00

Who benefits from a tax-payment deadline extension?

2020-03-24T00:00:00.000-04:00

Coronavirus may impact workers' income volatility

2020-03-20T00:00:00.000-04:00

Quick liquidity to small businesses could mitigate impacts from coronavirus

2020-03-06T00:00:00.000-05:00

Tax Refunds and Household Spending

2020-03-01T00:00:00.000-05:00

The potential economic impacts of COVID-19 on families, small businesses, and communities

Insights from five years of big data research

2019-12-04T00:00:00.000-05:00

Small Business Financial Outcomes in Miami Communities

2019-11-21T00:00:00.000-05:00

The Gender Gap: Exploring Consumer and Small Business Financial Health

2019-11-05T00:00:00.000-05:00

Financial and Physical Health in a Changing Healthcare Market

2019-10-31T00:00:00.000-04:00

Bridging the Gap

How Families Use the Online Platform Economy to Manage their Cash Flow

2019-10-23T00:00:00.000-04:00

Weathering Volatility 2.0

A Monthly Stress Test to Guide Savings

2019-09-30T00:00:00.000-04:00

Place Matters

Small Business Financial Health in Urban Communities

2019-09-26T00:00:00.000-04:00

In Conversation: Experts on Student Loan Payments and JPMC Institute Research

2019-08-12T00:00:00.000-04:00

Facing Uncertainty

Small Business Cash Flow Patterns in 25 U.S. Cities

2019-07-31T00:00:00.000+05:30

Data and Collaboration for Good

The JPMorgan Chase Institute 2nd Annual Conference on Economic Research

2019-07-01T00:00:00.000-04:00

Student Loan Payments

Evidence from 4 Million Families

2019-06-01T00:00:00.000-04:00

Trading Equity for Liquidity

Bank Data on the Relationship Between Liquidity and Mortgage Default

The San Francisco Economy

Household and Small Business Financial Outcomes

2019-05-09T00:00:00.000-04:00

How Data Can Improve the Financial Health of U.S. Small Businesses

2019-05-01T00:00:00.000-04:00

The Small Business Sector in Urban America

Growth and Vitality in 25 Cities

2019-04-01T00:00:00.000-05:00

The Online Platform Economy in 27 Metro Areas

The Experience of Drivers and Lessors

2019-03-22T00:00:00.000-05:00

Technology and the Future of Work

2019-03-01T00:00:00.000-05:00

How Families Manage Tax Refunds and Payments

2019-02-01T00:00:00.000-05:00

Gender, Age, and Small Business Financial Outcomes

2019-01-15T00:00:00.000-05:00

Does the Timing of Central Bank Announcements Matter?

Trade-Level Data on Hedge Fund Behavior Before Swiss National Bank Meetings

2018-12-04T00:00:00.000-05:00

Local Commerce Index

The Local Commerce Index (LCI) is a measure of the monthly year-over-year growth rate of everyday debit and credit card spending by over 64 million de-identified Chase customers across 14 metro areas in the US. The LCI is an alternative view of the health and vibrancy of the US consumer.

Estimating Family Income from Administrative Banking Data

A Machine Learning Approach

2018-12-01T00:00:00.000-05:00

Deferred Care

How Tax Refunds Enable Healthcare Spending

Shopping Near and Far: Local Commerce in the Digital Age

Insights from 4 Billion Transactions across the United States

2018-10-23T00:00:00.000-05:00

Measuring the Online Platform Economy

How Banking and Survey Data Compare

2018-10-01T00:00:00.000-04:00

Falling Behind

Bank Data on the Role of Income and Savings in Mortgage Default

On the Rise

Out-of-Pocket Healthcare Spending in 2017

2018-09-01T00:00:00.000-05:00

The Online Platform Economy in 2018

Drivers, Workers, Sellers, and Lessors

2018-08-29T00:00:00.000-04:00

JPMorgan Chase Institute 2018 Inaugural Conference on Economic Research

2018-07-01T00:00:00.000-04:00

Growth, Vitality, and Cash Flows

High-Frequency Evidence from 1 Million Small Businesses

2018-06-20T00:00:00.000-05:00

Where are all the Contingent Workers?

2018-06-12T00:00:00.000-04:00

FX Markets Move on Surprise News

Institutional Investor Trading Behavior around Brexit, the U.S. Election, and the Swiss Franc Floor

2018-04-01T00:00:00.000-04:00

Filing Taxes Early, Getting Healthcare Late

Insights from 1.2 Million Households

2018-03-15T00:00:00.000-04:00

Healthcare When It’s Needed

How to Mitigate High Costs and Deferred Care

2018-03-01T00:00:00.000-05:00

The Commercial Vibrancy of Chicago Neighborhoods, 2016

2018-02-01T00:00:00.000-05:00

Bend, Don’t Break

Small Business Financial Resilience After Hurricanes Harvey and Irma

Weathering the Storm

The Financial Impacts of Hurricanes Harvey and Irma on One Million Households

Local Consumer Commerce in the Wake of a Hurricane

2017-12-14T00:00:00.000-05:00

Institute Insights for Open Enrollment

2017-12-01T00:00:00.000-05:00

Mortgage Modifications after the Great Recession

New Evidence and Implications for Policy

2017-11-01T00:00:00.000-04:00

Paying a Premium

Dynamics of the Small Business Owner Health Insurance Market

2017-10-10T00:00:00.000-04:00

Younger and Lower Income Consumers Drive Small Business Spending

2017-09-06T00:00:00.000-04:00

Coping with Medical Costs through Life

2017-09-01T00:00:00.000-04:00

Paying Out-of-Pocket

The Healthcare Spending of 2 Million U.S. Families

Mapping Segments in the Small Business Sector

2017-05-01T00:00:00.000-04:00

The Gender Gap in Financial Outcomes

The Impact of Medical Payments

2017-04-20T00:00:00.000-04:00

The Consumer Spending Response to Mortgage Resets

2017-04-01T00:00:00.000-04:00

The Consumer Spending Response to Mortgage Resets Report

Microdata on Monetary Policy

2017-03-17T00:00:00.000-04:00

The Monthly Stress-Test on Family Finances

2017-03-01T00:00:00.000-05:00

Consumption Inequality

What’s in Your Shopping Basket?

Going the Distance

Big Data on Resident Access to Everyday Goods

Seniors Lead the Slowdown in Local Consumer Commerce

2017-02-09T00:00:00.000-05:00

Why Managing Expenses Is Not an Easy Task

2017-02-01T00:00:00.000-05:00

Coping with Costs

Big Data on Expense Volatility and Medical Payments

2017-01-18T00:00:00.000-05:00

The Ups and Downs of Small Business Employment

2017-01-01T00:00:00.000-05:00

The Ups and Downs of Small Business Employment Report

Big Data on Payroll Growth and Volatility

2016-11-15T00:00:00.000-05:00

Is the Online Platform Economy the Future of Work?

2016-11-01T00:00:00.000-05:00

The Online Platform Economy

Has Growth Peaked?

2016-11-01T00:00:00.000-04:00

Shedding Light on Daylight Saving Time

2016-09-21T00:00:00.000-04:00

For Small Businesses: Cash is King

2016-09-09T00:00:00.000-04:00

Big Spend on the Weekend:

The Local Consumer Commerce Index declined in May

2016-09-01T00:00:00.000-04:00

Cash is King: Flows, Balances, and Buffer Days

Evidence from 600,000 Small Businesses

2016-08-18T00:00:00.000-05:00

Past 65 and Still Working

Big Data Insights on Senior Citizens’ Financial Lives

2016-07-14T00:00:00.000-04:00

A Year of Low Gas Prices: The Consumer Response in 15 Metro Areas

2016-07-11T00:00:00.000-04:00

The Consumer Response to Lower Gas Prices

2016-07-01T00:00:00.000-04:00

The Consumer Response to a Year of Low Gas Prices

Evidence From 1 Million People

2016-06-29T00:00:00.000-04:00

Good Things Come in Small (Business) Packages

2016-05-05T00:00:00.000-05:00

The Online Platform Economy: Who earns the most?

2016-04-13T00:00:00.000-04:00

Taking the Financial Stress Out of Tax Time

2016-03-29T00:00:00.000-04:00

The Local Consumer Commerce Index

How did everyday spending fare in December 2015?

2016-02-18T00:00:00.000-05:00

Understanding Income Volatility and the Role of the Online Platform Economy

2016-02-09T00:00:00.000-05:00

Dining Out or Eating In: Where does your city rank?

Spending Growth at Restaurants

2016-02-08T00:00:00.000-05:00

Consumption Inequality: Where does your city rank?

Spending by the Top Income Quintile

2016-02-04T00:00:00.000-05:00

Travel for Business or Pleasure: Where does your city rank?

Share of Spending by Visitors to the Metro Area

2016-02-01T00:00:00.000-05:00

Paychecks, Paydays, and the Online Platform Economy

Big Data on Income Volatility

The Online Platform Economy Trajectory

What is the growth trajectory?

2016-01-31T00:00:00.000-05:00

Recovering from Job Loss

The Role of Unemployment Insurance

2016-01-18T00:00:00.000-05:00

Economic Contributions by Seniors

Spending by Consumers 65 years and Older

2016-01-07T00:00:00.000-05:00

Big Data to Build Sharper Profiles of Consumer Commerce at the City Level

2016-01-01T00:00:00.000-05:00

Boutiques or Big Box Stores: Where does your city rank?

Share of Spending at Small and Medium Enterprises

2015-12-01T00:00:00.000-05:00

Profiles of Local Consumer Commerce

Insights from 12 Billion Transactions in 15 U.S. Metro Areas

2015-10-01T00:00:00.000-04:00

How Falling Gas Prices Fuel the Consumer

Evidence From 25 Million People

2015-05-01T00:00:00.000-04:00

Weathering Volatility

Big Data on the Financial Ups and Downs of U.S. Individuals

Small Business Data Resources

Diverse Ownership

Business Dynamism

Regional Employment

Economic Activity

Where did recent gas price declines affect consumers the most?

JPMCI HOSP Geographic Data Visualization Tool

Major Market Events Data Visualization Tool

Infographic: How Falling Gas Prices Fuel the Consumer

Infographic: Weathering Volatility

Small Business Data Dashboard

Small businesses are an economically important component of the US economy and a key driver of production, employment, and growth.

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What’s in an Equity Research Report?

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Even though you can easily find real equity research reports via the magical tool known as “Google,” we’ve continued to get questions on this topic.

Whenever I see the same question over and over again, you know what I do: I bash my head in repeatedly and contemplate jumping off a building…

…and then I write an article to answer the question.

To understand an equity research report, you must understand what goes into a  stock pitch first.

The idea is similar, but an ER report is a “watered-down” version of a stock pitch.

But banks have some very solid reasons for publishing equity research reports:

Why Do Equity Research Reports Matter?

You might remember from previous articles that equity research teams do not spend that much time writing these reports .

Most of their time is spent speaking with management teams and institutional investors and sharing their views on sectors and companies.

However, equity research reports are still important because:

• You do still spend some time doing the required modeling work (~15%) and writing the reports (~20%).
• You might have to write a research report as part of the interview process.

For example, if you apply to an equity research role or an equity research internship , especially in an off-cycle process, you might be asked to draft a short report on a company.

And then in roles outside of ER, you need to know how to interpret reports quickly and extract the key information.

Equity Research Reports: Myth vs. Reality

If you want to understand equity research reports, you have to understand first why banks publish them: to earn higher commissions from trading activity.

A bank wants to encourage institutional investors to buy more shares of the companies it covers.

Doing so generates more trading volume and higher commissions for the bank.

This is why you rarely, if ever, see “Sell” ratings, and why “Hold” ratings are far less common than “Buy” ratings.

Different Types of Equity Research Reports

One last point before getting into the tutorial: There are many different types of research reports.

“Initiating Coverage” reports tend to be long – 50-100 pages or more – and have tons of industry research and data.

“Sector Reports” on entire industries are also very long. And there are other types, which you can read about here .

In this tutorial, we’re focusing on the “Company Update” or “Company Note”-type reports, which are the most common ones.

The Full Tutorial, Video, and Sample Equity Research Reports

For our full walk-through of equity research reports, please see the video below:

Table of Contents:

• 1:43: Part 1: Stock Pitches vs. Equity Research Reports
• 6:00: Part 2: The 4 Main Differences in Research Reports
• 12:46: Part 3: Sample Reports and the Typical Sections
• 20:53: Recap and Summary

You can get the reports and documents referenced in the video here:

• Equity Research Report – Jazz Pharmaceuticals [JAZZ] – OUTPERFORM [BUY] Recommendation [PDF]
• Equity Research Report – Shawbrook [SHAW] – NEUTRAL [HOLD] Recommendation [PDF]
• Equity Research Reports vs. Stock Pitches – Slides [PDF]

If you want the text version instead, keep reading:

Watered-Down Stock Pitches

You should think of equity research reports as “watered-down stock pitches.”

If you’ve forgotten, a hedge fund or asset management stock pitch ( sample stock pitch here ) has the following components:

• Part 1: Recommendation
• Part 2: Company Background
• Part 3: Investment Thesis
• Part 4: Catalysts
• Part 5: Valuation
• Part 6: Investment Risks and How to Mitigate Them
• Part 7: The Worst-Case Scenario and How to Avoid It

In a stock pitch, you’ll spend most of your time and energy on the Catalysts, Valuation, and Investment Risks because you want to express a VERY different view of the company .

For example, the company’s stock price is $100, but you believe it’s worth only $50 because it’s about to report earnings 80% lower than expectations.

Therefore, you recommend shorting the stock. You also recommend purchasing call options at an exercise price of $125 to limit your losses to 25% if the stock moves in the opposite direction.

In an equity research report, you’ll still express a view of the company that’s different from the consensus, but your view won’t be dramatically different.

You’ll spend more time on the Company Background and Valuation sections, and far less time and space on the Catalysts and Risk Factors. And you won’t even write a Worst-Case Scenario section.

If a company seems overvalued by 50%, a research analyst would probably write a “Hold” recommendation, say that there’s “uncertainty around several customers,” and claim that the company’s current market value is appropriate.

Oh, and by the way, one risk factor is that the company might report lower-than-expected earnings.

The Four Main Differences in Equity Research Reports

The main differences are as follows:

1) There’s More Emphasis on Recent Results and Announcements

For example, how does a recent product announcement, clinical trial result, or earnings report impact the company?

You’ll almost always see recent news and updates on the first page of a research report:

These factors may play a role in hedge fund stock pitches as well, but more so in short recommendations since timing is more important there.

2) Far-Outside-the-Mainstream Views Are Less Common

One comical example of this trend is how all 15 equity research analysts covering Enron rated it a “buy” right before it collapsed :

Sell-side analysts are far less likely to point out that the emperor has no clothes than buy-side analysts.

3) Research Reports Give “Target Prices” Rather Than Target Price Ranges

For example, the company is trading at $50.00 right now, but we expect its price to increase to exactly $75.00 in the next twelve months.

This idea is completely ridiculous because valuation is always about the range of possible outcomes, not a specific outcome.

Despite horrendously low accuracy , this practice continues.

To be fair, many analysts do give target prices in different cases, which is an improvement:

4) The Investment Thesis, Catalysts, and Risk Factors Are “Looser”

These sections tend to be “afterthoughts” in most reports.

For example, the bank might give a few reasons why it expects the company’s share price to rise: the company will capture more market share than expected, it will be able to increase its product prices more rapidly than expected, and a competitor is about to go bankrupt.

However, the sell-side analyst will not tie these factors to specific share-price impacts as a buy-side analyst would.

Similarly, the report might mention catalysts and investment risks, but there won’t be a link to a specific valuation impact from each factor.

So the typical stock pitch logic (“We think there’s a 50% chance of gaining 80% and a 50% chance of losing 20%”) won’t be spelled out explicitly:

Your Sample Equity Research Reports

To illustrate these concepts, I’m sharing two equity research reports from our financial modeling courses :

The first one is from the valuation case study in our Advanced Financial Modeling course , and the second one is from the main case study in our Bank Modeling course .

These are comprehensive examples, backed by industry data and outside research, but if you want a shorter/simpler example you can recreate in a few hours, the Core Financial Modeling course has just that.

In each case, we started by creating traditional HF/AM stock pitches and valuations and then made our views weaker in the research reports.

The Typical Sections of an Equity Research Report

So let’s briefly go through the main sections of these reports, using the two examples above:

Page 1: Update, Rating, Price Target, and Recent Results

The first page of an “Update” report states the bank’s recommendation (Buy, Hold, or Sell, sometimes with slightly different terminology), and gives recent updates on the company.

For example, in both these reports we reference recent earnings results from the companies and expectations for the next fiscal year:

We also give a “target price,” explain where it comes from, and give our estimates for the company’s key financial metrics.

We mention catalysts in both reports, but we don’t link anything to a specific valuation impact.

One problem with providing a specific “target price” is that it must be based on specific multiples and specific assumptions in a DCF or DDM.

So with Jazz, we explain that the $170.00 target is based on 20.7x and 15.3x EV/EBITDA multiples for the comps, and a discount rate of 8.07% and Terminal FCF growth rate of 0.3% in the DCF.

Next: Operations and Financial Summary

Next, you’ll see a section with lots of graphs and charts detailing the company’s financial performance, market share, and important metrics and ratios.

For a pharmaceutical company like Jazz, you might see revenue by product, pricing and # of patients per product per year, and EBITDA margins.

For a commercial bank like Shawbrook, you might see loan growth, interest rates, interest income and net income, and regulatory capital figures such as the Common Equity Tier 1 (CET 1) and Tangible Common Equity (TCE) ratios:

This section of the report explains how the analyst or equity research associate forecast the company’s performance and came up with the numbers used in the valuation.

The valuation section is the one that’s most similar in a research report and a stock pitch.

In both fields, you explain how you arrived at the company’s implied value, which usually involves pasting in a DCF or DDM analysis and comparable companies and transactions.

The methodologies are the same, but the assumptions might differ substantially.

In research, you’re also more likely to point to specific multiples, such as the 75 th percentile EV/EBITDA multiple, and explain why they are the most meaningful ones.

For example, you might argue that since the company’s growth rates and margins exceed the medians of the set, it deserves to be valued at the 75 th percentile multiples rather than the median multiples:

Investment Thesis, Catalysts, and Risks

This section is short, and it is more of an afterthought than anything else.

We do give reasons for why these companies might be mis-priced, but the reasoning isn’t that detailed.

For example, in the Shawbrook report we state that the U.K. mortgage market might slow down and that regulatory changes might reduce the market size and the company’s market share:

Those are legitimate catalysts, but the report doesn’t explain their share-price impact in the same way that a stock pitch would.

Finally, banks present Investment Risks mostly so they can say, “Well, we warned you there were risks and that our recommendation might be wrong.”

By contrast, buy-side analysts present Investment Risks so they can say, “There is a legitimate chance we could lose 50% – let’s hedge against that risk with options or other investments so that our fund does not collapse .”

How These Reports Both Differ from the Corresponding Stock Pitches

The Jazz equity research report corresponds to a “Long” pitch that’s much stronger:

• We estimate its intrinsic value as $180 – $220 / share , up from $170 in the report.
• We estimate the per-share impact of each catalyst: price increases add 15% to the share price, more patients from marketing efforts add 10%, and later-than-expected generics competition adds 15%.
• We also estimate the per-share impact from the risk factors and conclude that in the worst case , the company’s share price might decline from $130 to $75-$80. But in all likelihood, even if we’re wrong, the company is simply valued appropriately at $130.
• And then we explain how to hedge against these risks with put options.

The same differences apply to the Shawbrook research report vs. the stock pitch, but the stock pitch there is a “Short” recommendation where we claim that the company is overvalued by 30-50%.

And that sums up the differences perfectly: A Short recommendation with 30-50% downside in a stock pitch turns into a “Hold” recommendation with roughly equal upside and downside in a sell-side research report.

I’ve been harsh on equity research here, but I don’t want to disparage it too much.

There are many positives: You do get more creativity than in IB, it might be better for hedge fund or asset management exits, and it’s more fun to follow companies than to grind through grunt work on deals.

But no matter how you slice it, most equity research reports are watered-down stock pitches.

So, make sure you understand the “strong stuff” first before you downgrade – even if your long-term goal is equity research.

You might be interested in:

• The Equity Research Analyst Career Path: The Best Escape from a Ph.D. Program, or a Pathway into the Abyss?
• Private Equity Regulation : 2023 Changes and Impact on Finance Careers
• Stock Pitch Guide: How to Pitch a Stock in Interviews and Win Offers

About the Author

Brian DeChesare is the Founder of Mergers & Inquisitions and Breaking Into Wall Street . In his spare time, he enjoys lifting weights, running, traveling, obsessively watching TV shows, and defeating Sauron.

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Read below or Add a comment

15 thoughts on “ What’s in an Equity Research Report? ”

Hi Brian, what softwares are available to publish Research Reports?

We use Word templates. Some large banks have specialized/custom programs, but not sure how common they are.

Is it possible if you can send me a template in word of an equity report? It will help the graduate stock management fund a lot at Umass Boston.

We only have PDF versions for these, but Word should be able to open any PDF reasonably well.

Do you also provide a pre constructed version of an ER in word?

We have editable examples of equity research reports in Word, but we generally only share PDF versions on this site.

Hey Brian Can you please help me with coverage initiated reports on oil companies. I could not find them on the net. I need to them to get equity research experience, after which only I will be able to get into the field. I searched but reports could not be found even for a price. Thanks

We have an example of an oil & gas stock pitch on this site… do a search…

https://mergersandinquisitions.com/oil-gas-stock-pitch/

Beyond that, sorry, we cannot look for reports and then share them with you or we’d be inundated with requests to do that every day.

No worries. Thanks!

Hi! Brian! Do u know how investment bankers design and layout an equity research? the software they use. like MS Word, Adobe Indesign or something…? And how to create and layout one? Thanks

where can I get free equity research report? I am a Chinese student and now study in Australia. Is the Morning Star a good resource for research report?

Get a TD Ameritrade to access free reports there for certain companies.

How do you view the ER industry since the trading commission has been down 50% since 2007. And there are new in coming regulation governing the ER reports have to explicitly priced and funds need to pay for the report explicity rather than as a service comes free with brokerage?

In addition the whole S&T environment is becoming highly automated.

People have been predicting the death of equity research for over a decade, but it’s still here. It may not be around in 100 years, but it will still be around in another 10 years, though it will be smaller and less relevant.

Yes, things are becoming more automated, but the actual job of an equity research analyst or associate hasn’t changed dramatically. A machine can’t speak with investors to assess their sentiment on a company – only humans can do that.

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Stock Market Concentration: How Much Is Too Much?

• Stock market concentration has increased sharply over the past decade, creating a challenging environment for active managers and also raising unease about the loss of diversification, the valuations of the largest stocks, and the effect of flows into index funds.
• In this report, we look at concentration over the past 75 years to see where we stand today and to reflect on what it means for active equity managers.
• We examine which companies have had the largest stock market capitalizations and how that population has changed.
• We ask whether there is a correct level of concentration, both by comparing the U.S. to other global markets and by presenting the possibility that concentration was too low in the past.
• We then seek to determine whether fundamental corporate performance supports the current increase in concentration.

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DEFINITIONS Market Capitalization is the total dollar market value of all of a company's outstanding shares.

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