T Rowe Price TAISEM Bond
TOTR Etf | USD 40.43 0.01 0.02% |
T Rowe'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. T Rowe's financial risk is the risk to T Rowe 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).
TOTR |
Given the importance of T Rowe's capital structure, the first step in the capital decision process is for the management of T Rowe 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 T Rowe Price to issue bonds at a reasonable cost.
Popular Name | T Rowe TAISEM 4125 22 APR 29 |
Equity ISIN Code | US87283Q8006 |
Bond Issue ISIN Code | US872898AG66 |
T Rowe Price Outstanding Bond Obligations
Dana 575 percent | US235822AB96 | Details | |
Volcan Compania Minera | USP98047AC08 | Details | |
Boeing Co 2196 | US097023DG73 | Details | |
MPLX LP 4875 | US55336VAG59 | Details | |
MPLX LP 4125 | US55336VAK61 | Details | |
MPLX LP 52 | US55336VAL45 | Details | |
TAISEM 225 23 APR 31 | US872882AK19 | Details | |
TAISEM 125 23 APR 26 | US872882AH89 | Details | |
TAISEM 25 25 OCT 31 | US872898AC52 | Details | |
TAISEM 175 25 OCT 26 | US872898AA96 | Details | |
Morgan Stanley 3591 | US61744YAK47 | Details | |
TAISEM 45 22 APR 52 | US872898AJ06 | Details | |
TAISEM 425 22 APR 32 | US872898AH40 | Details | |
TAISEM 4125 22 APR 29 | US872898AG66 | Details | |
TAISEM 3875 22 APR 27 | US872898AF83 | Details | |
TAISEM 325 25 OCT 51 | US872898AE19 | Details | |
TAISEM 3125 25 OCT 41 | US872898AD36 | Details | |
Morgan Stanley 3971 | US61744YAL20 | Details | |
MGM Resorts International | US552953CD18 | Details | |
Valero Energy Partners | US91914JAA07 | Details |
Understaning T Rowe Use of Financial Leverage
T Rowe's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to T Rowe's current equity. If creditors own a majority of T Rowe's assets, the company is considered highly leveraged. Understanding the composition and structure of T Rowe's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
The fund invests in a diversified portfolio of bonds and other debt instruments. T Rowe is traded on NYSEARCA Exchange in the United States. Please read more on our technical analysis page.
Pair Trading with T Rowe
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 T Rowe 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 T Rowe will appreciate offsetting losses from the drop in the long position's value.Moving together with TOTR Etf
1.0 | IUSB | iShares Core Total | PairCorr |
0.98 | FIXD | First Trust TCW | PairCorr |
1.0 | FBND | Fidelity Total Bond | PairCorr |
0.99 | TOTL | SPDR DoubleLine Total | PairCorr |
0.99 | HTRB | Hartford Total Return | PairCorr |
Moving against TOTR Etf
The ability to find closely correlated positions to T Rowe could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace T Rowe 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 T Rowe - 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 T Rowe Price to buy it.
The correlation of T Rowe 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 T Rowe moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if T Rowe Price 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 T Rowe 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.Check out the analysis of T Rowe Fundamentals Over Time. You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
The market value of T Rowe Price is measured differently than its book value, which is the value of TOTR that is recorded on the company's balance sheet. Investors also form their own opinion of T Rowe's value that differs from its market value or its book value, called intrinsic value, which is T Rowe's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because T Rowe's market value can be influenced by many factors that don't directly affect T Rowe's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between T Rowe's value and its price as these two are different measures arrived at by different means. Investors typically determine if T Rowe is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, T Rowe's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
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.