Voya Emerging Markets AerCap Bond
| IHD Fund | USD 5.18 0.06 1.17% |
Voya Emerging's financial leverage is the degree to which the firm utilizes its fixed-income securities and uses equity to finance projects. Companies with high leverage are usually considered to be at financial risk. Voya Emerging's financial risk is the risk to Voya Emerging stockholders that is caused by an increase in debt. In other words, with a high degree of financial leverage come high-interest payments, which usually reduce Earnings Per Share (EPS).
Voya |
Given the importance of Voya Emerging's capital structure, the first step in the capital decision process is for the management of Voya Emerging 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 Voya Emerging Markets to issue bonds at a reasonable cost.
| Popular Name | Voya Emerging AerCap Global Aviation |
| Specialization | Derivative Income |
| Equity ISIN Code | US92912P1084 |
| Bond Issue ISIN Code | US00773HAA59 |
| S&P Rating | Others |
| Maturity Date | 15th of June 2045 |
| Issuance Date | Others |
| Coupon | 6.5 % |
Voya Emerging Markets Outstanding Bond Obligations
| Boeing Co 2196 | US097023DG73 | Details | |
| HSBC Holdings PLC | US404280DR76 | Details | |
| VMC 715 30 NOV 37 | US929160AG40 | Details | |
| VULCAN MATLS 45 | US929160AV17 | Details | |
| VULCAN MATLS 39 | US929160AT60 | Details | |
| VULCAN MATLS 45 | US929160AS87 | Details | |
| MGM Resorts International | US552953CD18 | Details | |
| VULCAN MATLS 47 | US929160AY55 | Details | |
| AerCap Global Aviation | US00773HAA59 | Details |
Understaning Voya Emerging Use of Financial Leverage
Voya Emerging's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Voya Emerging's total debt position, including all outstanding debt obligations, and compares it with Voya Emerging's equity. Financial leverage can amplify the potential profits to Voya Emerging's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Voya Emerging is unable to cover its debt costs.
Voya Emerging Markets High Dividend Equity Fund is a closed-ended equity mutual fund launched by Voya Investment Management LLC. The fund is co-managed by ING Investment Management Advisors B.V. and Voya Investments, LLC. It invests in public equity markets of emerging market countries across the globe. The fund seeks to invest in stocks of companies operating across diversified sectors. It primarily invests in dividend paying stocks of companies. The fund also invests through derivatives having economic characteristics similar to the equity securities, such as call options on selected ETFs, andor international, regional or country indices of equity securities. It employs both fundamental and quantitative analysis with a bottom-up stock selection process to create its portfolio. The fund benchmarks the performance of its portfolio against the MSCI Emerging Markets Index. It was formerly known as ING Emerging Markets High Dividend Equity Fund. Voya Emerging Markets High Dividend Equity Fund was formed on April 26, 2011 and is domiciled in the United States. Please read more on our technical analysis page.
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Voya Emerging financial ratios help investors to determine whether Voya 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 Voya with respect to the benefits of owning Voya Emerging security.
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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.