Aberdeen Income Credit Boeing Bond
| ACP Fund | USD 6.42 0.01 0.16% |
Aberdeen Income Credit holds a debt-to-equity ratio of 0.435. . Aberdeen Income's financial risk is the risk to Aberdeen Income stockholders that is caused by an increase in debt.
Aberdeen |
Given the importance of Aberdeen Income's capital structure, the first step in the capital decision process is for the management of Aberdeen Income to decide how much external capital it will need to raise to operate in a sustainable way. Once the amount of financing is determined, management needs to examine the financial markets to determine the terms in which the company can boost capital. This move is crucial to the process because the market environment may reduce the ability of Aberdeen Income Credit to issue bonds at a reasonable cost.
| Popular Name | Aberdeen Income Boeing Co 2196 |
| Specialization | High Yield Bond |
| Equity ISIN Code | US0030571063 |
| Bond Issue ISIN Code | US097023DG73 |
| S&P Rating | Others |
| Maturity Date | 4th of February 2026 |
| Issuance Date | 4th of February 2021 |
| Coupon | 2.196 % |
Aberdeen Income Credit Outstanding Bond Obligations
| Boeing Co 2196 | US097023DG73 | Details | |
| HSBC Holdings PLC | US404280DR76 | Details |
Understaning Aberdeen Income Use of Financial Leverage
Aberdeen Income's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Aberdeen Income's current equity. If creditors own a majority of Aberdeen Income's assets, the company is considered highly leveraged. Understanding the composition and structure of Aberdeen Income's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
Abrdn Income Credit Strategies Fund is a closed-ended fixed income fund launched and managed by Aberdeen Asset Managers Limited. Abrdn Income Credit Strategies Fund was formed on October 12, 2010 and is domiciled in the United States. Abrnd Income is traded on New York Stock Exchange in the United States. Please read more on our technical analysis page.
Pair Trading with Aberdeen Income
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Aberdeen Income position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aberdeen Income will appreciate offsetting losses from the drop in the long position's value.Moving together with Aberdeen Fund
| 0.66 | TTP | Tortoise Pipeline And | PairCorr |
| 0.78 | PEO | Adams Natural Resources | PairCorr |
| 0.65 | ERH | Allspring Utilities And | PairCorr |
Moving against Aberdeen Fund
| 0.67 | MRK | Merck Company Fiscal Year End 6th of February 2025 | PairCorr |
| 0.59 | KO | Coca Cola Aggressive Push | PairCorr |
| 0.58 | JNJ | Johnson Johnson Fiscal Year End 28th of January 2025 | PairCorr |
| 0.49 | BA | Boeing Fiscal Year End 29th of January 2025 | PairCorr |
| 0.4 | PFE | Pfizer Inc Aggressive Push | PairCorr |
The ability to find closely correlated positions to Aberdeen Income could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Aberdeen Income when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Aberdeen Income - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Aberdeen Income Credit to buy it.
The correlation of Aberdeen Income is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Aberdeen Income moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Aberdeen Income Credit moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Aberdeen Income can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Other Information on Investing in Aberdeen Fund
Aberdeen Income financial ratios help investors to determine whether Aberdeen Fund is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Aberdeen with respect to the benefits of owning Aberdeen Income security.
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.