Boards - What do capital markets think of them? The unfiltered perspective of a credit analyst

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In an era marked by rapid change, technological disruption, geopolitical uncertainty, and economic volatility, understanding how analysts perceive boards is more important than ever. We turned to an analyst who operates independently of major financial institutions for a truly candid perspective.

In this episode of the Better Boards Podcast Series, Dr Sabine Dembkowski, Founder and Managing Partner of Better Boards, speaks with Anke Richter, a seasoned credit analyst and strategist with nearly 30 years of experience in the bond markets. Based in London, Anke has held positions at JP Morgan, Deutsche Bank, and Moody’s, and brings a unique vantage point shaped by her work on both the buy-side and sell-side, as well as in a rating agency. She holds both the CFA Charter and CIMA accountancy qualification.

A Two-Step Approach to Company Analysis

According to Anke, the fundamentals of analysing a company haven’t changed:
“What you do when analysing a company is always the same.”

Step one involves scrutinising the company’s fundamentals—numbers, valuations, and performance indicators. Step two involves examining red flags in leadership or governance. Common issues include overly dominant founders in small firms or boards where everyone shares the same surname, particularly in family-run conglomerates in emerging markets.

Anke notes that although she doesn’t always request formal board evaluations, she views them as a missed opportunity for many firms. Proper board assessments and clear investor communication allow companies to spotlight their governance strengths and strategic priorities.

Bridging the Knowledge Gap Between Boards and Investors

Anke frequently observes significant knowledge gaps in how boards interact with capital markets. “We always find that people are sometimes not aware of how certain things are done or how things are perceived.”

Lack of familiarity with investor expectations can seriously handicap a company’s position. To mitigate this, Anke advocates for including individuals with capital markets expertise on the board. This experience ensures the board understands key market dynamics and investor sentiment.

Fixing Investor Relations: Easier Than You Think

Investor relations, Anke believes, is an area where companies can quickly improve.
“This is something you can, as a company, very easily fix.”

Improvements don’t require massive budgets. What’s often lacking is not money but human resources and awareness. Clear communication, a well-maintained website, an accessible IR team, and informative roadshows are foundational but frequently overlooked.

Anke also points out two critical missteps:

1. Inconsistent messaging between equity and debt stakeholders—this discrepancy doesn’t go unnoticed.

2. Combative attitudes from executives during investor meetings can irreparably harm trust.

Beyond the Numbers: The Human Element

Anke acknowledges that while financial metrics are clear-cut, evaluating leadership is far more nuanced. “If I have an opportunity, I always want to meet management, but one also has to be realistic about whether you can assess whether they are good at running the company.”

Good marketing can mask weak fundamentals, and vice versa. Successful investor relations require a balance: numbers must align with consistent messaging and credible leadership behaviour.

Top 3 Takeaways for Effective Boards

1. Include Capital Markets Experience: Ensure that at least one board member brings direct market experience to guide strategy and communication.

2. Maintain Message Consistency: Align messaging for equity and debt investors. Mismatched narratives create confusion and erode trust.

3. Perception Is Reality: Be proactive in mana

Boards - What do capital markets think of them? The unfiltered perspective of a credit analyst

The Better Boards Podcast Series

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