Federated Premier FEDEX Bond
FMN Fund | USD 11.34 0.09 0.80% |
Federated Premier holds a debt-to-equity ratio of 0.747. With a high degree of financial leverage come high-interest payments, which usually reduce Federated Premier's Earnings Per Share (EPS).
Federated |
Given the importance of Federated Premier's capital structure, the first step in the capital decision process is for the management of Federated Premier 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 Federated Premier Municipal to issue bonds at a reasonable cost.
Popular Name | Federated Premier FEDEX P 495 |
Specialization | Muni National Long |
Equity ISIN Code | US31423P1084 |
Bond Issue ISIN Code | US31428XBS45 |
S&P Rating | Others |
Maturity Date | Others |
Issuance Date | Others |
Coupon | 4.95 % |
Federated Premier Outstanding Bond Obligations
FEDEX P | US31428XCA28 | Details | |
FEDEX P | US31428XBZ87 | Details | |
FEDEX P | US31428XBV73 | Details | |
FEDEX P 42 | US31428XBR61 | Details | |
FEDEX P 405 | US31428XBQ88 | Details | |
FEDEX P 495 | US31428XBS45 | Details | |
FEDEX P | US31428XCD66 | Details | |
FEDEX P | US31428XCE40 | Details | |
MPLX LP 4125 | US55336VAK61 | Details | |
MPLX LP 52 | US55336VAL45 | Details | |
CCDJ 57 14 MAR 28 | US31429KAK97 | Details | |
CCDJ 455 23 AUG 27 | US31429KAH68 | Details | |
CCDJ 44 23 AUG 25 | US31429KAG85 | Details | |
CCDJ 205 10 FEB 25 | US31429KAD54 | Details | |
FEDERATED RETAIL HLDGS | US314275AC25 | Details | |
MGM Resorts International | US552953CD18 | Details | |
FEDEX P 51 | US31428XAW65 | Details | |
FEDEX P 49 | US31428XAX49 | Details | |
FEDEX P 3875 | US31428XAT37 | Details | |
FEDEX P 41 | US31428XAU00 | Details | |
FEDEX P 44 | US31428XBN57 | Details | |
FEDEX P 34 | US31428XBP06 | Details | |
FEDEX P 45 | US31428XBD75 | Details | |
FEDEX P 475 | US31428XBE58 | Details | |
FEDEX P 325 | US31428XBF24 | Details | |
FEDEX P 455 | US31428XBG07 | Details | |
FEDEX P 39 | US31428XBA37 | Details | |
FEDEX P 41 | US31428XBB10 | Details |
Understaning Federated Premier Use of Financial Leverage
Leverage ratios show Federated Premier's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of Federated Premier's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
Federated Premier Municipal Income Fund is a closed-ended fixed income mutual fund launched by Federated Investors, Inc. The fund is managed by Federated Investment Management Company. It invests in fixed income markets of United States. The fund primarily invests in tax-exempt municipal bonds of GO state, GO local, special tax, hospital, transportation, pre-refunded, senior care, water and sewer, education, electric and gas, and public power sectors. It benchmarks the performance of its portfolio against SP Municipal Bond Index. Federated Premier Municipal Income Fund was formed on December 20, 2002 and is domiciled in United States. Please read more on our technical analysis page.
Other Information on Investing in Federated Fund
Federated Premier financial ratios help investors to determine whether Federated 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 Federated with respect to the benefits of owning Federated Premier 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.