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, Nuveen S&P 500 Buy-Writeome Fund's Probability of Financial Distress (%) is 50.00%.
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.
Nuveen S&P 500 Buy-Writeome Fund (NYSE:BXMX) Probability of Financial Distress (%) Explanation
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk in the upcoming year. 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.
Nuveen S&P 500 Buy-Writeome Fund Probability of Financial Distress (%) Related Terms
BXMX vs CET, GAM, ECAT: Probability of Financial Distress (%) Comparison
For the Asset Management subindustry, Nuveen S&P 500 Buy-Writeome 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.
Nuveen S&P 500 Buy-Writeome Fund Probability of Financial Distress (%) vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Nuveen S&P 500 Buy-Writeome Fund's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Nuveen S&P 500 Buy-Writeome Fund's Probability of Financial Distress (%) falls into.
Nuveen S&P 500 Buy-Writeome 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
=
0.00
The Probability of Financial Distress (%) (PFD) was then obtianed by:
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).
What does a Probability of Financial Distress (%) of 50.00% mean?
Nuveen S&P 500 Buy-Writeome Fund (BXMX) has a Probability of Financial Distress (%) of 50.00% as of Jun. 30, 2026.
Is Nuveen S&P 500 Buy-Writeome Fund's Probability of Financial Distress (%) too high?
Nuveen S&P 500 Buy-Writeome Fund's current Probability of Financial Distress (%) is 50.00%. Overall, Nuveen S&P 500 Buy-Writeome Fund has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does Nuveen S&P 500 Buy-Writeome Fund's Probability of Financial Distress (%) compare to CET and GAM?
Nuveen S&P 500 Buy-Writeome Fund's Probability of Financial Distress (%) of 50.00% can be compared against companies in the Asset Management industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Probability of Financial Distress (%) for an Asset Management company?
A good Probability of Financial Distress (%) depends on the Asset Management industry context. However, Probability of Financial Distress (%) should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Probability of Financial Distress (%) mean?
A high Probability of Financial Distress (%) can signal that a stock is expensive relative to its fundamentals. Nuveen S&P 500 Buy-Writeome Fund's current Probability of Financial Distress (%) is 50.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nuveen S&P 500 Buy-Writeome Fund stock overvalued right now?
Nuveen S&P 500 Buy-Writeome Fund (BXMX) has a current Probability of Financial Distress (%) of 50.00%. The stock's GF Value™ is $12.90, compared to a current price of $15.03 — trading 16.5% above its estimated fair value. The current Probability of Financial Distress (%) is 50.00%. Nuveen S&P 500 Buy-Writeome Fund's overall GF Score™ is 34/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Probability of Financial Distress (%) calculated?
Probability of Financial Distress (%) is calculated from a company's financial statements. For Nuveen S&P 500 Buy-Writeome Fund (BXMX), the current Probability of Financial Distress (%) is 50.00% as of Jun. 30, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nuveen S&P 500 Buy-Writeome Fund (BXMX) Overvalued in 2026?
Based on GuruFocus' analysis, Nuveen S&P 500 Buy-Writeome Fund stock appears to be overvalued.
The current stock price of $15.03 is trading 16.5% above its estimated GF Value™ of $12.90.
Key valuation signals for BXMX:
Probability of Financial Distress (%): 50.00%
GF Value™: $12.90 vs. price of $15.03 (16.5% above fair value)
No single metric tells the full story. See the BXMX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nuveen S&P 500 Buy-Writeome Fund Business Description
Nuveen S&P 500 Buy-Write Income Fund is a diversified closed-ended management investment company based in the United States. Its investment objective is to seek attractive total returns with less volatility. The fund invests its managed assets in a diversified equity portfolio that seeks to substantially replicate price movements of the S&P 500 Index. It also uses an index options of writing index call options in seeking to moderate the volatility of returns relative to an all-equity portfolio. Its revenue is generated mainly from interest and dividend income.
34GF Score
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