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 0.09%.
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 |
| = | -6.98 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.09% |
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).
Western Asset Global High Fd (Western Asset Global High Fd) Business Description
Traded in Other Exchanges
N/A
Address
620 Eighth Avenue, 47th 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
| Oliveira Marc De |
officer: Secretary/Chief Legal Officer |
C/O LEGG MASON & CO. LLC, ONE FIRST STAMFORD PLACE, STAMFORD CT 06902 |
| Hoffmann Courtney A. |
other: Secretary/GC Subadviser |
WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101 |
| Andrew J. Bowden |
other: COO/Subadviser |
WESTERN ASSET MANAGEMENT COMPANY, LLC, 385 EAST COLORADO BOULEVARD, PASADENA CA 91101 |
| Daniel P Cronin |
director |
235 EAST 42ND ST, NEW YORK NY 10017 |
| Brian Eakes |
other: Manager/Investment Manager |
100 INTERNATIONAL DRIVE, BALTIMORE MD 21202 |
| Laura F Fergerson |
other: Manager/Investment Manager |
3310 QUALITY DRIVE, 2ND FLOOR, RANCHO CORDOVA CA 95670 |
| George P. Hoyt |
officer: Secretary and Ch Lgl Officer |
C/O FRANKLIN TEMPLETON, 100 FIRST STAMFORD PLACE, STAMFORD CT 06902 |
| Matthew Nicholls |
other: Director of Sub-Adviser |
ONE FRANKLIN PARKWAY, SAN MATEO CA 94403 |
| Jed A. Plafker |
other: Director of Sub-Adviser |
ONE FRANKLIN PARKWAY, SAN MATEO CA 94403 |
| Jennifer M Johnson |
other: Director of Sub-Adviser |
C/O FRANKLIN RESOURCES, INC., ONE FRANKLIN PARKWAY, SAN MATEO CA 94403-1906 |
| Saba Capital Management, L.p. |
10 percent owner |
405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174 |
| Fred Steven Jensen |
officer: Chief Compliance Officer |
LEGG MASON, 620 EIGHTH AVENUE, 49TH FLOOR, NEW YORK NY 10018 |
| William R Hutchinson |
director |
535 N MICHIGAN STE 1012, CHICAGO IL 60611 |
| Christopher Berarducci |
officer: Treas/Principal Finan Officer |
LEGG MASON, 620 EIGHTH AVENUE, NEW YORK NY 10018 |
| Nisha Kumar |
director |
1735 MARKET STREET, 32ND FLOOR, PHILADELPHIA PA 19103 |
Western Asset Global High Fd (Western Asset Global High Fd) Headlines
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