Direxion Daily SP 254687EH5 Bond

DRIP Etf  USD 9.98  0.59  6.28%   
Direxion Daily'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. Direxion Daily's financial risk is the risk to Direxion Daily 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 Direxion Daily Fundamentals Over Time.
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Given the importance of Direxion Daily's capital structure, the first step in the capital decision process is for the management of Direxion Daily 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 Direxion Daily SP to issue bonds at a reasonable cost.
Popular NameDirexion Daily WALT DISNEY CO
Equity ISIN CodeUS25460G6585
Bond Issue ISIN CodeUS254687EH59
S&P Rating
Others
Maturity DateOthers
Issuance DateOthers
View All Direxion Daily Outstanding Bonds

Direxion Daily SP Outstanding Bond Obligations

DIS 85 23 FEB 25US254687DB98Details
US254687DD54US254687DD54Details
DIS 77 30 OCT 25US254687DF03Details
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DISNEY WALT NEWUS25468PCR55Details
US254687DH68US254687DH68Details
Dana 575 percentUS235822AB96Details
DISNEY WALT NEWUS25468PBW59Details
DIRECTV HLDGS LLCUS25460CAA18Details
WALT DISNEY COUS254687FL52Details
WALT DISNEY COUS254687FM36Details
WALT DISNEY COUS254687FN19Details
US254687FB70US254687FB70Details
US254687EV44US254687EV44Details
US254687EX00US254687EX00Details
US254687EZ57US254687EZ57Details
US254687ER32US254687ER32Details
US254687ET97US254687ET97Details
US254687EF93US254687EF93Details
WALT DISNEY COUS254687EH59Details
DISNEY WALT NEWUS25468PDV58Details
DISNEY WALT NEWUS25468PDK93Details
WALT DISNEY COUS254687EB89Details
DISNEY WALT NEWUS25468PDM59Details
DISNEY WALT NEWUS25468PDN33Details
US254687DR41US254687DR41Details
US254687DT07US254687DT07Details
US254687DV52US254687DV52Details
DISNEY WALT NEWUS25468PDB94Details
US254687DX19US254687DX19Details
DISNEY WALT NEWUS25468PDF09Details
WALT DISNEY COUS254687DZ66Details
US254687DK97US254687DK97Details
DIS 7125 08 APR 28US254687DM53Details
DISNEY WALT NEWUS25468PCX24Details
DIS 73 30 APR 28US254687DP84Details
US25466AAJ07US25466AAJ07Details
US25466AAE10US25466AAE10Details
US25466AAR23US25466AAR23Details
DISCOVER BK NEWUS25466AAP66Details
US25466AAN19US25466AAN19Details
WALT DISNEY COUS254687FX90Details
WALT DISNEY COUS254687FY73Details
WALT DISNEY COUS254687FZ49Details
WALT DISNEY COUS254687GA88Details
US254687FP66US254687FP66Details
WALT DISNEY COUS254687FQ40Details
WALT DISNEY COUS254687FR23Details
WALT DISNEY COUS254687FS06Details
The Walt DisneyUS254687FV35Details
WALT DISNEY COUS254687FW18Details
BNP Paribas FRNUSF1R15XK367Details
US25461LAA08US25461LAA08Details

Understaning Direxion Daily Use of Financial Leverage

Direxion Daily's financial leverage ratio measures its total debt position, including all of its outstanding liabilities, and compares it to Direxion Daily's current equity. If creditors own a majority of Direxion Daily's assets, the company is considered highly leveraged. Understanding the composition and structure of Direxion Daily's outstanding bonds gives an idea of how risky it is and if it is worth investing in.
The fund invests in swap agreements, futures contracts, short positions or other financial instruments that, in combination, provide inverse or short leveraged exposure to the index equal to at least 80 percent of the funds net assets . SP Oil is traded on NYSEARCA Exchange in the United States.
Please read more on our technical analysis page.

Pair Trading with Direxion Daily

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 Direxion Daily 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 Direxion Daily will appreciate offsetting losses from the drop in the long position's value.

Moving together with Direxion Etf

  0.79SH ProShares Short SP500PairCorr
  0.75PSQ ProShares Short QQQPairCorr
  0.8SPXU ProShares UltraPro ShortPairCorr
  0.79SDS ProShares UltraShortPairCorr
  0.79SPXS Direxion Daily SPPairCorr

Moving against Direxion Etf

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The ability to find closely correlated positions to Direxion Daily could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Direxion Daily 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 Direxion Daily - 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 Direxion Daily SP to buy it.
The correlation of Direxion Daily 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 Direxion Daily moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Direxion Daily SP 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 Direxion Daily 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.
Pair CorrelationCorrelation Matching
When determining whether Direxion Daily SP is a strong investment it is important to analyze Direxion Daily's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Direxion Daily's future performance. For an informed investment choice regarding Direxion Etf, refer to the following important reports:
Check out the analysis of Direxion Daily Fundamentals Over Time.
You can also try the Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
The market value of Direxion Daily SP is measured differently than its book value, which is the value of Direxion that is recorded on the company's balance sheet. Investors also form their own opinion of Direxion Daily's value that differs from its market value or its book value, called intrinsic value, which is Direxion Daily'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 Direxion Daily's market value can be influenced by many factors that don't directly affect Direxion Daily'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 Direxion Daily's value and its price as these two are different measures arrived at by different means. Investors typically determine if Direxion Daily is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Direxion Daily'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.
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.