What is Pioneer Floating Rate Trust 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, Pioneer Floating Rate Trust'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 Pioneer Floating Rate Trust's Probability of Financial Distress (%)
For the Asset Management subindustry, Pioneer Floating Rate Trust'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.
Pioneer Floating Rate Trust's Probability of Financial Distress (%) Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Pioneer Floating Rate Trust's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Pioneer Floating Rate Trust's Probability of Financial Distress (%) falls into.
Pioneer Floating Rate Trust 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 |
| = | -10.03 |
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).
Pioneer Floating Rate Trust (Pioneer Floating Rate Trust) Business Description
Traded in Other Exchanges
N/A
Address
60 State Street, Boston, MA, USA, 02109
Pioneer Floating Rate Trust is a diversified fund. It seeks a high level of current income by investing primarily in floating-rate loans. Its investment objective is to provide a high level of current income and seek the preservation of capital.
Executives
| Yana Karalnik |
officer: CHIEF COMPLIANCE OFFICER |
60 STATE STREET, BOSTON MA 02109 |
| Michael Melnick |
officer: Assistant Treasurer |
60 STATE STREET, BOSTON MA 02109 |
| Koenig Anthony J Jr |
officer: Treasurer |
60 STATE STREET, BOSTON MA 02109 |
| Craig C Mackay |
officer: Trustee |
75 WEST 125TH STREET, NEW YORK NY 10027 |
| Saba Capital Management, L.p. |
10 percent owner |
405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174 |
| Diane Durnin |
other: Trustee |
60 STATE STREET, BOSTON MA 02109 |
| Boaz Weinstein |
10 percent owner |
405 LEXINGTON AVENUE, 58TH FLOOR, NEW YORK NY 10174 |
| Baumgardner John E Jr. |
other: Trustee |
60 STATE STREET, BOSTON MA 02109 |
| John Michael Malone |
officer: Chief Compliance Officer |
60 STATE STREET, BOSTON MA 02019 |
| Lorraine H Monchak |
other: Trustee |
60 STATE STREET, PIONEER INVESTMENTS, BOSTON MA 02109 |
| Fred J Ricciardi |
other: Trustee |
60 STATE STREET, BOSTON MA 02109 |
| Lisa Jones |
officer: Chief Executive Officer |
60 STATE STREET, PIONEER INVESTMENTS, BOSTON MA 02109 |
| Mark Goodwin |
officer: Executive Vice President |
PIONEER INVESTMENTS, 60 STATE STREET, BOSTON MA 02109 |
| Kenneth Taubes |
other: Trustee |
|
| Marc O Mayer |
other: Trustee |
C/O ALLIANCE CAPITAL, 1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105 |
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