Street Diligence Charts Explained

When drilling into a specific term captured within a document, you may be wondering what information each of the charts is displaying. In this article, we will take a deep dive into the meanings of our most commonly used charts including:

Depending on which term or tag you are drilling into, several charts give a visual image of the presenting data. We are going to look into a few terms to help further explain the meaning of each chart you will come across in the platform.

First, we will jump into the Capital Lease Basket for a public credit agreement by clicking on the icon next to the term we want to further analyze (displayed in the red box below). This is found within the Analysis Tab of the document view.

Moving Average Trendline Graph

The first graph that you will see on this page will look something like this –

This shows us, over a seven-year time period, where this deal sits relative to the average of the data set. The gold line, shown in the graph above, represents the 365-day moving average with one standard deviation above and below. The green dot shows where the currently selected deal sits among all underlying data points. The grey dots represent all other "accessible instruments" within the data set. These are documents you have permission to view, including public documents that fall within the data set.

or, it could look like this (Example here is for Hard Call (Repricing) Protection) -

Depending on which term you are looking at, the y and x axes will display relevant values over a given period. This allows the users to see how their deal terms stack up against the selected data set (default or otherwise specified using filters).

Density Graph

Typically, the second graph you will come across will be a nice density graph that looks like so –

The density graph provides a visual representation of how borrower or lender-friendly a term is for the particular deal you are looking at. The underlying data is based on either the default data set (all public and private deals) or a data set of your choosing using the filter located at the top of the drill-in analysis screen. The yellow line represents the median of the data set. The green line represents the term within the document/deal you are viewing. The grey lines represent the 20th and 80th percentile within the data set.

In this example above, we are looking at the density of the Capital Lease Basket for our chosen deal (represented in green). Here, we see that the median in the data set (represented in yellow) is around 25% of EBITDA, with much of the data falling between 0 and 50% of EBITDA. At the top of the graph, are indications of which direction leans more borrower or lender-friendly. Above, we can see that the data is lender-friendly and the selected instrument is slightly more lender-friendly than the median.

Histogram Graph

Similar to the density graph, the histogram graph represents where your deal lies relative to the average. In the example below, you can see that most of the data is more favorable to the borrower in comparison to where the currently selected deal, in green, sits.

Again, we are looking at the Capital Lease Basket which is represented by the frequency the basket is used based on the percentage of EBITDA. We can see here that the most frequently used values (y-axis) lie between 0 and 50% of EBITDA, which is where the selected instrument lies. The second most frequently used values are from 50 and 100% of EBITDA. From 100% of EBITDA on are points seldom used in the selected data set.

Existence Trendline Graph

Next up is the Existence Trendline graph. This graph showcases what percentage of documents within the applied or default filter set returned a value for the given concept you are looking at over 7 years. In the example below, we are looking at the existence of the Capital Lease Basket for a filtered data set. The yellow line represents the 365-day average and the green dot is the currently selected deal. We can see that from 2018, the average percentage of deals that contain a capital lease basket has been steady at the 88-93% range.

For any additional questions on Street Diligence's charts and graphs, please reach out to support@streetdiligence.com.