What is New America Highome 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, New America Highome Fund'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 New America Highome Fund's Probability of Financial Distress (%)
For the Asset Management subindustry, New America Highome 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.
New America Highome Fund's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, New America Highome Fund's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where New America Highome Fund's Probability of Financial Distress (%) falls into.
New America Highome 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 |
| = | -10.42 |
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 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).
New America Highome Fund (New America Highome Fund) Business Description
Traded in Other Exchanges
N/A
Address
33 Broad Street, Boston, MA, USA, 02109
New America High Income Fund Inc is a diversified, closed?end management investment company. Its investment objective is to provide high current income while seeking to preserve stockholder capital by investing in a diversified portfolio of high-yield fixed-income securities. The fund invests primarily in fixed-maturity corporate debt securities that are rated less than the investment grade. Its portfolio of investment consists of investments in different sectors such as energy, financial, cable operators, healthcare, and others.
Executives
| Luis M Viceira |
director |
THE NEW AMERICA HIGH INCOME FUND, INC., 33 BROAD STREET, BOSTON MA 02109 |
| Marguerite A Piret |
director |
C/O NEWBURY PIRET AND CO., 200 STATE STREET 12TH FLOOR, BOSTON MA 02109 |
| Joseph I Bower |
director |
32 WIGGINS AVENUE, BEDFORD MA 01730 |
| Bernard J Korman |
director |
OMEGA HEALTHCARE INVESTORS INC, ANN ARBOR MI 48108 |
| Ellen E Terry |
officer: Vice President and Treasurer |
33 BTROAD STREET, BOSTON MA 02109 |
| Oleg M Pohotsky |
director |
C/O HAMBRECHT & QUIST CAPITAL MANAGEMENT, 2 LIBERTY SQUARE, 9TH FLOOR, BOSTON MA 02109 |
| Stuart A Mcfarland |
director |
C/O FORTRESS INVESTMENT GROUP, 1345 AVE OF THE AMERICAS 46TH FL, NEW YORK NY 10105 |
| Bank Of America Na |
10 percent owner |
100 N. TRYON STREET, CHARLOTTE NC 28255 |
| Blue Ridge Investments, L.l.c. |
10 percent owner |
ONE BRYANT PARK, NEW YORK NY 10036 |
| Bank Of America Corp /de/ |
10 percent owner |
BANK OF AMERICA CORPORATE CENTER, 100 N TRYON ST, CHARLOTTE NC 28255 |
| Merrill Lynch, Pierce, Fenner & Smith Inc. |
10 percent owner |
4 WORLD FINANCIAL CENTER, NORTH TOWER, NEW YORK NY 10080 |
| Merrill Lynch & Co., Inc. |
10 percent owner |
4 WORLD FINANCIAL CTR, NEW YORK NY 10080 |
| Robert F Birch |
director, officer: President |
C/O HYPERION BROOKFIELD ASSET MANAGEMENT, THREE WORLD FINANCIAL CENTER, 200 VESEY STREET, 10TH FLOOR NY 10281-1010 |
| Ernest E Monrad |
director |
|
| Richard E Floor |
director, officer: Secretary |
C/O GOODWIN PROCTER LLP EXCHANGE PLACE, 26TH FLOOR, BOSTON MA 02109 |
New America Highome Fund (New America Highome Fund) Headlines
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