What is OFS Credit Co 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, OFS Credit Co's Probability of Financial Distress (%) is 0.03%.
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 OFS Credit Co's Probability of Financial Distress (%)
For the Asset Management subindustry, OFS Credit Co'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.
OFS Credit Co's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, OFS Credit Co's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where OFS Credit Co's Probability of Financial Distress (%) falls into.
OFS Credit Co 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 |
| = | -7.99 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.03% |
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).
OFS Credit Co Business Description
Traded in Other Exchanges
Address
10 South Wacker Drive, Suite 2500, Chicago, IL, USA, 60606
OFS Credit Co Inc is a non-diversified, closed-end management investment company. Its investment objective is to generate current income, with a secondary objective to generate capital appreciation. The company invests in floating rate credit instruments and other structured credit investments, including; collateralized loan obligation (CLO) debt and subordinated (i.e., residual or equity) securities; traditional corporate credit investments, including leveraged loans and high yield bonds; opportunistic credit investments, including stressed and distressed credit situations and long/short credit investments; and other credit-related instruments.
Executives
| Kyle Spina |
officer: Chief Accounting Officer |
10 S. WACKER DR, SUITE 2500, CHICAGO IL 60606 |
| Orchard First Source Asset Management Holdings, Llc |
other: Parent of Investment Adviser |
10 SOUTH WACKER, SUITE 2500, CHICAGO IL 60606 |
| Ross Teune |
officer: Chief Accounting Officer |
150 SOUTH WACKER DRIVE, SUITE 800, CHICAGO IL 60606 |
| Eagle Point Cif Gp I Llc |
10 percent owner |
600 STEAMBOAT ROAD, SUITE 202, GREENWICH CT 06830 |
| Eagle Point Dif Gp I Llc |
10 percent owner |
600 STEAMBOAT ROAD, SUITE 202, GREENWICH CT 06830 |
| Eagle Point Credit Management Llc |
10 percent owner |
600 STEAMBOAT RD, SUITE 202, GREENWICH CT 06830 |
| Catherine Mary Fitta |
director |
100 JAY STREET, #10D, BROOKLYN NY 11201 |
| Oi3 2019 Trust |
10 percent owner |
4700 WILSHIRE BOULEVARD, LOS ANGELES CA 90010 |
| Oi3, Llc |
10 percent owner |
4700 WILSHIRE BOULEVARD, LOS ANGELES CA 90010 |
| Robert J Cresci |
director |
|
| Richard S Ressler |
10 percent owner |
C/O J2 GLOBAL COMMUNICATIONS, INC., 6922 HOLLYWOOD BLVD, 5TH FLOOR, LOS ANGELES CA 90028 |
| Orchard First Source Asset Management, Llc |
other: Parent of Investment Adviser |
10 SOUTH WACKER DRIVE, SUITE 2500, CHICAGO IL 60606 |
| Bilal Rashid |
director, officer: President, Director and CEO |
10 SOUTH WACKER DRIVE, SUITE 2500, CHICAGO IL 60606 |
| Romita Shetty |
director |
70 E 55TH STREET, FLOOR 21, NEW YORK NY 10022 |
| Wolfgang Schubert |
director |
10 S. WACKER DRIVE, SUITE 2500, CHICAGO IL 60606 |
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