Lmp Capital And 50201DAD5 Bond
| SCD Fund | USD 17.78 0.05 0.28% |
Lmp Capital And holds a debt-to-equity ratio of 0.222. . Lmp Capital's financial risk is the risk to Lmp Capital stockholders that is caused by an increase in debt.
Lmp |
Given the importance of Lmp Capital's capital structure, the first step in the capital decision process is for the management of Lmp Capital 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 Lmp Capital And to issue bonds at a reasonable cost.
| Popular Name | Lmp Capital US50201DAD57 |
| Specialization | Large Value |
| Equity ISIN Code | US50208A1025 |
| Bond Issue ISIN Code | US50201DAD57 |
| S&P Rating | Others |
| Maturity Date | Others |
| Issuance Date | Others |
| Coupon | 5.125 % |
Lmp Capital And Outstanding Bond Obligations
| Dana 575 percent | US235822AB96 | Details | |
| Boeing Co 2196 | US097023DG73 | Details | |
| Leo Cable 675 | US50201DAA19 | Details | |
| US50201DAD57 | US50201DAD57 | Details | |
| LLPLCA 6875 04 FEB 39 | US50201PAA49 | Details | |
| CINCON 3797 31 DEC 57 | US50203UAA16 | Details | |
| BNP Paribas FRN | USF1R15XK367 | Details | |
| US50203TAA43 | US50203TAA43 | Details | |
| AerCap Global Aviation | US00773HAA59 | Details |
Understaning Lmp Capital Use of Financial Leverage
Lmp Capital's financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures Lmp Capital's total debt position, including all outstanding debt obligations, and compares it with Lmp Capital's equity. Financial leverage can amplify the potential profits to Lmp Capital's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if Lmp Capital is unable to cover its debt costs.
LMP Capital and Income Fund Inc. is a closed ended balanced mutual fund launched and managed by Legg Mason Partners Fund Advisor, LLC. It is co-managed by Clearbridge Investments, LLC, Western Asset Management Company Limited, and Western Asset Management Company. The fund invests in public equity and fixed income markets across the globe. It seeks to invest in securities of companies operating across diversified sectors. The fund primarily invests in stocks of large-cap companies, intermediate period corporate bonds and notes rated at least A-, energy and non-energy master limited partnerships, and real estate investment trusts. It focuses on such factors as economic, market, or political conditions, fiscal and monetary policy, and security valuation to create its portfolio. The fund benchmarks the performance of its portfolio against the U.S. Aggregate Index and SP 500 Index. It was formerly known as Salomon Brothers Capital and Income Fund Inc. LMP Capital and Income Fund Inc. was formed on November 12, 2003 and is domiciled in the United States. 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 Lmp Fund
Lmp Capital financial ratios help investors to determine whether Lmp 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 Lmp with respect to the benefits of owning Lmp Capital security.
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |
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.