CTP NV Morgan Bond
| CTPNV Stock | CZK 378.40 4.40 1.18% |
CTP NV holds a debt-to-equity ratio of 0.936. . CTP NV's financial risk is the risk to CTP NV stockholders that is caused by an increase in debt.
CTP |
Given the importance of CTP NV's capital structure, the first step in the capital decision process is for the management of CTP NV 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 CTP NV to issue bonds at a reasonable cost.
| Popular Name | CTP NV Morgan Stanley 3971 |
| Equity ISIN Code | NL00150006R6 |
| Bond Issue ISIN Code | US61744YAL20 |
| S&P Rating | Others |
| Maturity Date | 22nd of July 2038 |
| Issuance Date | 24th of July 2017 |
| Coupon | 3.971 % |
CTP NV Outstanding Bond Obligations
| Boeing Co 2196 | US097023DG73 | Details | |
| Morgan Stanley 3591 | US61744YAK47 | Details | |
| Morgan Stanley 3971 | US61744YAL20 | Details |
Understaning CTP NV Use of Financial Leverage
CTP NV's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to CTP NV's current equity. If creditors own a majority of CTP NV's assets, the company is considered highly leveraged. Understanding the composition and structure of CTP NV's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
CTP N.V. engages in the development and rental of commercial and industrial real estate properties in Central and Eastern Europe. The company was founded in 1998 and is based in Amsterdam, the Netherlands. CTP N is traded on Commodity Exchange in Exotistan. Please read more on our technical analysis page.
Pair Trading with CTP NV
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 CTP NV 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 CTP NV will appreciate offsetting losses from the drop in the long position's value.Moving together with CTP Stock
Moving against CTP Stock
The ability to find closely correlated positions to CTP NV could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace CTP NV 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 CTP NV - 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 CTP NV to buy it.
The correlation of CTP NV 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 CTP NV moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if CTP NV 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 CTP NV 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.Additional Tools for CTP Stock Analysis
When running CTP NV's price analysis, check to measure CTP NV's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy CTP NV is operating at the current time. Most of CTP NV's value examination focuses on studying past and present price action to predict the probability of CTP NV's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move CTP NV's price. Additionally, you may evaluate how the addition of CTP NV to your portfolios can decrease your overall portfolio volatility.
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.