What is Advent Convertible &ome Fund 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, Advent Convertible &ome Fund's Probability of Financial Distress (%) is 0.05%.
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 Advent Convertible &ome Fund's Probability of Financial Distress (%)
For the Asset Management subindustry, Advent Convertible &ome Fund'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.
Advent Convertible &ome Fund's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Advent Convertible &ome Fund's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Advent Convertible &ome Fund's Probability of Financial Distress (%) falls into.
Advent Convertible &ome Fund 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 |
| = | -7.70 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.05% |
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 banks, 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).
Advent Convertible &ome Fund (Advent Convertible &ome Fund) Business Description
Traded in Other Exchanges
N/A
Address
888 Seventh Avenue, 31st Floor, New York, NY, USA, 10019
Advent Convertible & Income Fund is a diversified, closed-end management investment company. The fund's investment objective is to provide total return through a combination of capital appreciation and current income. The Fund invests in various sectors, such as communications, utilities, energy, industrial, technology, and others.
Executives
| Tracy V Maitland |
officer: President, other: Trustee |
10865 AVENUE OF THE AMERICAS,, 31ST FLOOR, NEW YORK NY 10018 |
| Nancy E. Stuebe |
director, other: Trustee |
227 W MONROE STREET, CHICAGO IL 60606 |
| Advent Capital Management /de/ |
other: Investment Manager |
888 SEVENTH AVENUE, 31ST FLOOR, NEW YORK NY 10019 |
| Stephen Ellwood |
officer: CCO & Secretary |
888 SEVENTH STREET, 31ST FLOOR, NEW YORK NY 10019 |
| Olin Kathleen Capital Management |
officer: CCO and Secretary |
888 7TH AVENUE 31ST FLOOR, NEW YORK NY 10019 |
| Randall C Barnes |
director, other: Trustee |
2455 CORPORATE WEST DRIVE, LISLE IL 60187 |
| Gerald L Seizert |
director, other: Trustee |
10865 AVENUE OF THE AMERICAS,, 31ST FLOOR, NEW YORK NY 10018 |
| Michael A Smart |
other: Trustee |
10865 AVENUE OF THE AMERICAS,, 31ST FLOOR, NEW YORK NY 10018 |
| Derek Medina |
director |
ABC NEWS, 47 WEST 66TH STREET, NEW YORK NY 100123 |
| Tony Huang |
officer: V.P. & Assistant Secretary |
227 WEST MONROE STREET, CHICAGO IL 60606 |
| Saba Capital Management, L.p. |
10 percent owner |
405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174 |
| Boaz Weinstein |
10 percent owner |
405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174 |
| Daniel Black |
director, other: Trustee |
C/O ADVENT CAPITAL MANAGEMENT, LLC, 1065 AVENUE OF THE AMERICAS, 31ST FLOOR, NEW YORK NY 10018 |
| Ronald Nyberg |
director |
10865 AVENUE OF THE AMERICAS,, 31ST FLOOR, NEW YORK NY 10018 |
| Doug Teresko |
other: Managing Director |
1271 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10020 |
Advent Convertible &ome Fund (Advent Convertible &ome Fund) Headlines
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AVK has been successfully added to your