Unknown Bond Profiles

Asset symbol is not found or was delisted

We are unable to locate this entity at this time. If you believe the symbol you are trying to look up is valid, please let us know, and we will check it out. Check all delisted instruments across multiple markets.

Other Suggestions

Y AlleghanyCompany
YI 111 IncCompany
YCBD-PA CbdMD IncCompany
YACKX Amg Yacktman FundMutual Fund
YAO InvescoETF
YGG Yield Guild GamesCryptocurrency
Y00130VS3 ADSEZ 42 04 AUG 27Corporate Bond
YMUSD Mini Dow JonesCommodity

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.

Trending Themes

If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment.
Investor Favorites Idea
Investor Favorites
Invested few shares
Adviser Favorites Idea
Adviser Favorites
Invested a lot of shares
Impulse Idea
Impulse
Invested over 100 shares
Macroaxis Index Idea
Macroaxis Index
Invested few shares
Warren Buffett Holdings Idea
Warren Buffett Holdings
Invested over 40 shares
Artificial Intelligence Idea
Artificial Intelligence
Invested few shares
Hedge Favorites Idea
Hedge Favorites
Invested few shares
Disruptive Technologies Idea
Disruptive Technologies
Invested over 100 shares
Momentum Idea
Momentum
Invested over 70 shares
Millennials Best Idea
Millennials Best
Invested over 30 shares
ESG Investing Idea
ESG Investing
Invested a lot of shares
Computers Idea
Computers
Invested over 50 shares
Software Idea
Software
Invested few shares
Information Technology ETFs Idea
Information Technology ETFs
Invested few shares
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.

Other Complementary Tools

Pattern Recognition
Use different Pattern Recognition models to time the market across multiple global exchanges
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
ETFs
Find actively traded Exchange Traded Funds (ETF) from around the world
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Stocks Directory
Find actively traded stocks across global markets
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences

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.