What is The First Marblehead Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, The First Marblehead's Probability of Financial Distress (%) is 0.00%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of The First Marblehead's Probability of Financial Distress (%)
For the Credit Services subindustry, The First Marblehead's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The First Marblehead's Probability of Financial Distress (%) Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, The First Marblehead's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where The First Marblehead's Probability of Financial Distress (%) falls into.
The First Marblehead Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | 0.00 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.00% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
The First Marblehead (The First Marblehead) Business Description
Traded in Other Exchanges
N/A
Address
The First Marblehead Corp was formed as a limited partnership in 1991 and was incorporated in Delaware in August 1994. It is a specialty finance company focused on the education financing marketplace in the United States. It provides loan programs on behalf of its lender clients for K-12, undergraduate and graduate students and for college graduates seeking to refinance private education loan obligations, as well as tuition planning, tuition billing, refund management and payment technology services. It provides a fully integrated suite of services through its Monogram loan product service platform, which it refer to as its Monogram platform, as well as certain services on a stand-alone, fee-for-service basis. These loan programs are designed to be marketed to prospective student borrowers and their families directly or through educational institutions and to generate portfolios which might be held by the originating lender or financed in the capital markets. It offers a fully integrated suite of services, including its new Monogram loan product, as well as certain services on a standalone, fee-for-service basis. In addition, it provides administrative and other services to securitization trusts that it has facilitated and asset servicing to the third-party owner of certain securitization trusts. The Company's bank subsidiary, Union Federal Savings Bank is a federally chartered thrift that offers residential and commercial mortgage loans, and certain other banking products. Through its Monogram product offering, it enables lenders to offer borrowers private education loans with competitive terms and clear pricing alternatives, but which are also structured to align product options made available to qualified applicants with their credit risk. The Monogram product integrates all of its service offerings, including program design, marketing support, loan origination and portfolio management. The product enables its lender clients to customize their loan programs to meet their risk control and return objectives without a third-party guaranty. Specifically, the client could customize the range of loan terms offered to their qualified applicants, such as repayment options, loan limits and borrower pricing. The Monogram product is based on its proprietary origination risk score model, which was independently reviewed by a credit bureau. It helps clients design their private education loan programs. The Company's design approach begins with a standard set of pricing options, legal agreements and third-party relationships that it could then customize for its clients in order to satisfy their particular needs. The Company's systems have been designed to provide applicants with consumer protection disclosures required by law and regulation, as well as information helpful for making informed decisions about private education loans. It operates in a competitive environment.FIRSTMARBLEHEAD, the checkered logo, MONOGRAM, MONTICELLO STUDENT LOA
Executives
| William Dean Hansen |
director |
|
| John Carter Risley |
10 percent owner |
757 BEDFORD HIGHWAY, BEDFORD A5 B4A3Z7 |
| Peter S Drotch |
director |
|
| Second Curve Capital Llc |
10 percent owner |
150 N RADNOR CHESTER ROAD, SUITE F120, RADNOR PA 19087 |
| Thomas K Brown |
10 percent owner |
C/O SECOND CURVE CAPITAL, LLC, 237 PARK AVENUE, 9TH FLOOR, NEW YORK NY 10017 |
| Cameron Dort A Iii |
director |
|
| George G Daly |
director |
C/O STERN SCHOOL OF BUSINESS NYU, 44 WEST 4TH ST SUITE 8-69, NEW YORK NY 10012 |
| William R Berkley |
director |
165 MASON STREET, GREENWICH CT 06830 |
| Michael Joseph Plunkett |
officer: Managing Director |
C/O ALPHATEC HOLDINGS, INC., 5818 EL CAMINO REAL, CARLSBAD CA 92008 |
| Ryan Randall Brenneman |
officer: Managing Director |
C/O EYEGATE PHARMACEUTICALS, INC., 271 WAVERLEY OAKS ROAD, SUITE 108, WALTHAM MA 02452 |
| Henry Cornell |
director |
1099 18TH STREET, SUITE 2300, DENVER CO 80202 |
| Jack L Kopnisky |
director, officer: CEO, President and COO |
C/O STERLING NATIONAL BANK, 400 RELLA BOULEVARD, MONTEBELLO NY 10901 |
The First Marblehead (The First Marblehead) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FMD has been successfully added to your