Small Pany Growth 61747YEM3 Bond

MSSMX Fund  USD 10.93  0.14  1.26%   
Small Company'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. Small Company's financial risk is the risk to Small Company 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).
  
Check out the analysis of Small Company Fundamentals Over Time.
View Bond Profile
Given the importance of Small Company's capital structure, the first step in the capital decision process is for the management of Small Company 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 Small Pany Growth to issue bonds at a reasonable cost.
Popular NameSmall Company MS 263 18 FEB 26
SpecializationLarge
Equity ISIN CodeUS61744J6148
Bond Issue ISIN CodeUS61747YEM30
View All Small Company Outstanding Bonds

Small Pany Growth Outstanding Bond Obligations

Dana 575 percentUS235822AB96Details
Boeing Co 2196US097023DG73Details
US61745VAB99US61745VAB99Details
US61745EX638US61745EX638Details
US61745EY479US61745EY479Details
MORGAN STANLEY 725US617446HD43Details
MORGAN STANLEY 5US6174467X10Details
MORGAN STANLEY 435US6174467Y92Details
US617482TM68US617482TM68Details
US61745E7D72US61745E7D72Details
MORGAN STANLEY 625US61746BCY02Details
Morgan Stanley 4431US6174468G77Details
MORGAN STANLEY MTNUS6174468N29Details
Morgan Stanley 2699US6174468L62Details
MORGAN STANLEY 4US6174468C63Details
MORGAN STANLEYUS6174468X01Details
BNP Paribas FRNUSF1R15XK367Details
MORGAN STANLEY MTNUS6174468Y83Details
MORGAN STANLEYUS6174468P76Details
MORGAN STANLEY MTNUS6174468Q59Details
MORGAN STANLEYUS6174468V45Details
MORGAN STANLEY MTNUS6174468U61Details
MORGAN STANLEY 3875US61746BDZ67Details
MORGAN STANLEY 6375US617482V925Details
MORGAN STANLEY 4375US61746BEG77Details
MORGAN STANLEY 3625US61746BEF94Details
Morgan Stanley 3591US61744YAK47Details
MORGAN STANLEY MTNUS61747YED31Details
MORGAN STANLEY MTNUS61747YEC57Details
MS 791 22 JAN 25US61747YEB74Details
Morgan Stanley 3971US61744YAL20Details
Morgan Stanley 4457US61744YAR99Details
MORGAN STANLEY 43US61747YDY86Details
Morgan Stanley 3772US61744YAP34Details
MS 263 18 FEB 26US61747YEM30Details
MS 4889 20 JUL 33US61747YEU55Details
MS 4679 17 JUL 26US61747YET82Details
MS 5297 20 APR 37US61747YES00Details
MS 421 20 APR 28US61747YER27Details
MS 2511 20 OCT 32US61747YEH45Details
MS 2484 16 SEP 36US61747YEF88Details
MS 2943 21 JAN 33US61747YEL56Details
MS 2475 21 JAN 28US61747YEK73Details
MS 5948 19 JAN 38US61747YFB65Details
MS 5123 01 FEB 29US61747YFA82Details
MS 6342 18 OCT 33US61747YEY77Details
MS 6138 16 OCT 26US61747YEX94Details
MS 6296 18 OCT 28US61747YEV39Details
MS 505 28 JAN 27US61747YEZ43Details
US61747YFR18US61747YFR18Details
AerCap Global AviationUS00773HAA59Details

Understaning Small Company Use of Financial Leverage

Understanding the structure of Small Company's debt obligations provides insight if it is worth investing in it. Financial leverage can amplify the potential profits to Small Company's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its cost of debt.
The fund will, under normal circumstances, seek to achieve its investment objective by investing primarily in established and emerging companies with capitalizations within the range of companies included in the Russell 2000 Growth Index. The Adviser emphasizes a bottom-up stock selection process, seeking attractive investments on an individual company basis. The Adviser may invest up to 25 percent of the funds total assets in foreign securities.
Please read more on our technical analysis page.

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Other Information on Investing in Small Mutual Fund

Small Company financial ratios help investors to determine whether Small Mutual 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 Small with respect to the benefits of owning Small Company security.
Portfolio Dashboard
Portfolio dashboard that provides centralized access to all your investments
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity

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.
By borrowing funds, the firm incurs a debt that must be paid. But, this debt is paid in small installments over a relatively long period of time. This frees funds for more immediate use in the stock market. For example, suppose a company can afford a new factory but will be left with negligible free cash. In that case, it may be better to finance the factory and spend the cash on hand on inputs, labor, or even hold a significant portion as a reserve against unforeseen circumstances.

The Risk of Financial Leverage

The most obvious and apparent risk of leverage is that if price changes unexpectedly, the leveraged position can lead to severe losses. For example, imagine a hedge fund seeded by $50 worth of investor money. The hedge fund borrows another $50 and buys an asset worth $100, leading to a leverage ratio of 2:1. For the investor, this is neither good nor bad -- until the asset price changes. If the asset price goes up 10 percent, the investor earns $10 on $50 of capital, a net gain of 20 percent, and is very pleased with the increased gains from the leverage. However, if the asset price crashes unexpectedly, say by 30 percent, the investor loses $30 on $50 of capital, suffering a 60 percent loss. In other words, the effect of leverage is to increase the volatility of returns and increase the effects of a price change on the asset to the bottom line while increasing the chance for profit as well.