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Western Asset Global High Fd Probability of Financial Distress (%)

: 0.00% (As of Today)
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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, Western Asset Global High Fd'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

For the Asset Management subindustry, Western Asset Global High Fd'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.

   

Western Asset Global High Fd Probability of Financial Distress (%) Distribution

For the Asset Management industry and Financial Services sector, Western Asset Global High Fd's Probability of Financial Distress (%) distribution charts can be found below:

* The bar in red indicates where Western Asset Global High Fd's Probability of Financial Distress (%) falls into.



Western Asset Global High Fd 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
=-10.78

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

NIMTAAVG=Net Income / Market Total Assets
=Net Income / (Market Cap + Total Liabilities)

*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

TLMTA=Total Liabilities / Market Total Assets

3. CASHMTA = Cash to Market Total Assets

For banks, CASHMTA is measured as:

CASHMTA=(Cash and cash equivalents + Money Market Investments) / Market Total Assets

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).


Western Asset Global High Fd  (NYSE:EHI) 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.


Western Asset Global High Fd Probability of Financial Distress (%) Related Terms

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Western Asset Global High Fd Business Description

Western Asset Global High Fd logo
Industry
Financial Services » Asset Management NAICS : 523930 SIC : 6282
Traded in Other Exchanges
N/A
Address
620 Eighth Avenue, 49th Floor, New York, NY, USA, 10018
Western Asset Global High Inc Fd Inc is a non-diversified, closed-end management investment company. Its investment objective is high current income and total return by investing in a global portfolio of securities. The fund invests in various sectors such as Consumer Discretionary, Energy, Healthcare, Industrials, materials, and others.
Executives
Fergerson Laura F other: Manager/Investment Manager 3310 QUALITY DRIVE 2ND FLOOR RANCHO CORDOVA CA 95670
Eakes Brian other: Manager/Investment Manager 100 INTERNATIONAL DRIVE BALTIMORE MD 21202
Hoyt George P. officer: Secretary and Ch Lgl Officer C/O FRANKLIN TEMPLETON 100 FIRST STAMFORD PLACE STAMFORD CT 06902
Nicholls Matthew other: Director of Sub-Adviser ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Bolt Jennifer J other: Director of Sub-Adviser C/O FRANKLIN RESOURCES, INC. ONE FRANKLIN PARKWAY SAN MATEO CA 94403-1906
Plafker Jed A. other: Director of Sub-Adviser ONE FRANKLIN PARKWAY SAN MATEO CA 94403
Saba Capital Management, L.p. 10 percent owner 405 LEXINGTON AVENUE 58TH FLOOR NEW YORK NY 10174
Weinstein Boaz 10 percent owner 405 LEXINGTON AVENUE 58TH FLOOR NEW YORK NY 10174
Jensen Fred Steven officer: Chief Compliance Officer LEGG MASON 620 EIGHTH AVENUE, 49TH FLOOR NEW YORK NY 10018
Cronin Daniel P director 235 EAST 42ND ST NEW YORK NY 10017
Hutchinson William R director 535 N MICHIGAN STE 1012 CHICAGO IL 60611
Berarducci Christopher officer: Treas/Principal Finan Officer LEGG MASON 620 EIGHTH AVENUE NEW YORK NY 10018
Kumar Nisha director 1735 MARKET STREET 32ND FLOOR PHILADELPHIA PA 19103
Berg Jennifer S officer: Treasurer 100 INTERNATIONAL DRIVE 7TH FLOOR BALTIMORE MD 21202
Kuehl Todd F officer: Chief Compliance Officer 1555 PEACHTREE STREET NE ATLANTA 2Q 30309

Western Asset Global High Fd Headlines

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