JP Morgan Bonds

JPM -  USA Stock  

USD 150.64  0.29  0.19%

JP Morgan'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. JP Morgan's financial risk is the risk to JP Morgan 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).
Please see the analysis of JP Morgan Fundamentals Over Time.

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JP Morgan Long Term Debt is relatively stable at the moment as compared to the past year. The company's current value of Long Term Debt is estimated at 308.35 Billion. Issuance Repayment of Debt Securities is expected to hike to about 10.4 B this year, although the value of Total Debt will most likely fall to nearly 510.8 B.

JP Morgan Current Financial Burden

JP Morgan's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. JP Morgan's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps JP Morgan Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect JP Morgan's stakeholders.

Asset vs Debt

Equity vs Debt

Given that JP Morgan's debt-to-equity ratio measures a company's obligations relative to the value of its net assets, it is usually used by traders to estimate the extent to which JP Morgan is acquiring new debt as a mechanism of leveraging its assets. A high debt-to-equity ratio is generally associated with increased risk, implying that it has been aggressive in financing its growth with debt. Another way to look at debt-to-equity ratios is to compare the overall debt load of JP Morgan to its assets or equity, showing how much of the company assets belong to shareholders vs. creditors. If shareholders own more assets, JP Morgan is said to be less leveraged. If creditors hold a majority of JP Morgan's assets, the company is said to be highly leveraged.

JP Morgan Quarterly Debt to Equity Ratio

12.143Share
Given the importance of JP Morgan's capital structure, the first step in the capital decision process is for the management of JP Morgan 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 JP Morgan Chase to issue bonds at a reasonable cost.

JP Morgan Bond Ratings

JP Morgan Chase bond ratings play a critical role in determining how much JP Morgan have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for JP Morgan's borrowing costs.
Overall Bond Rating
Tolerable
Average S&P Rating
BBB-
Piotroski F Score
3  Frail
Beneish M Score

JP Morgan Chase Debt to Cash Allocation

As JP Morgan Chase follows its natural business cycle, the capital allocation decisions will not magically go away. JP Morgan's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors. Many companies eventually find out that there is only so much market out there to be conquered, and adding the next product or service is only half as profitable per unit as their current endeavors. Eventually, the company will reach a point where cash flows are strong, and extra cash is available but not fully utilized. In this case, the company may start buying back its stock from the public or issue more dividends.
The company has 765.76 B in debt with debt to equity (D/E) ratio of 8.5, demonstrating that the company may be unable to create cash to meet all of its financial commitments.

JP Morgan Long Term Debt Over Time

JP Morgan Assets Financed by Debt

The debt-to-assets ratio shows the degree to which JP Morgan uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.

JP Morgan Debt Ratio

    
  15.74   
It appears without question that most of the JP Morgan's assets are financed through equity. Typically, companies with high debt-to-asset ratios are said to be highly leveraged. The higher the ratio, the greater risk will be associated with the JP Morgan's operation. In addition, a high debt-to-assets ratio may indicate a low borrowing capacity of JP Morgan, which in turn will lower the firm's financial flexibility. Like all other financial ratios, a JP Morgan debt ratio should be compared their industry average or other competing firms.
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JP Morgan Corporate Bonds Issued

JP Morgan issues bonds to finance its operations. Corporate bonds make up one of the most significant components of the U.S. bond market and are considered the world's largest securities market. JP Morgan Chase uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most JP Morgan bonds can be classified according to their maturity, which is the date when JP Morgan Chase has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Issue DateMaturityCouponRef Coupon  Rating
BANC ONE CORP07/25/199507/15/20257.752.25
A-
BANC ONE CORP10/29/199610/15/20267.6252.25
A-
BANC ONE CORP04/29/199704/29/20278.02.25
A-
JP Morgan 0901203008/30/200009/01/20308.755.375
BBB-
JP Morgan 0715202307/17/200307/15/20235.252.25
A
JP Morgan 0715202307/24/200307/15/20235.152.25
A
JP Morgan 0715202307/31/200307/15/20235.572.25
A
JP Morgan 0915202309/05/200309/15/20236.02.25
A
JP Morgan 0915202309/11/200309/15/20236.052.25
A
JP Morgan 0915202309/18/200309/15/20235.852.25
A
JP Morgan 0915202309/25/200309/15/20235.82.25
A
JP Morgan 1015202310/02/200310/15/20235.772.25
A
JP Morgan 1015202310/09/200310/15/20235.72.25
A
JP Morgan 1015202310/30/200310/15/20235.752.25
NA
JP Morgan 1115202311/06/200311/15/20235.652.25
A
JP Morgan 1115202311/14/200311/15/20235.652.25
A
JP Morgan 1115202311/20/200311/15/20235.62.25
A
JP Morgan 0215202402/05/200402/15/20245.752.25
A
JP Morgan 0215202402/12/200402/15/20245.622.25
A
JP Morgan 0215202402/20/200402/15/20245.622.25
A
JP Morgan 0215202402/26/200402/15/20245.552.25
A
JP Morgan 0315202403/04/200403/15/20245.552.25
A
JP Morgan 0315202403/11/200403/15/20245.42.25
A
JP Morgan 0315202403/18/200403/15/20245.262.25
A
JP Morgan 0315202403/25/200403/15/20245.252.25
A

JP Morgan Chase Historical Liabilities

While analyzing the current debt level is an essential aspect of forecasting the current year budgeting needs of JP Morgan, understanding its historical liability is critical in projecting JP Morgan's future earnings, especially during periods of low and high inflation and deflation. Many analysts look at the trend in assets and liabilities and evaluate how JP Morgan uses its financing power over time.

Understaning JP Morgan Use of Financial Leverage

JP Morgan financial leverage ratio helps in determining the effect of debt on the overall profitability of the company. It measures JP Morgan's total debt position, including all of outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of JP Morgan assets, the company is considered highly leveraged. Understanding the composition and structure of overall JP Morgan debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business and if it is worth investing in it.
Please read more on our technical analysis page.
Last ReportedProjected for 2021
Long Term Debt285.1 B308.3 B
Total Debt542.1 B510.8 B
Issuance Repayment of Debt Securities9.6 B10.4 B
Debt to Equity Ratio 11.12  10.03 
JPMorgan Chase Co. operates as a financial services company worldwide. JPMorgan Chase Co. was founded in 1799 and is headquartered in New York, New York. JP Morgan operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 259350 people.

JP Morgan Investors Sentiment

The influence of JP Morgan's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in JP Morgan. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Current Sentiment - JPM

JP Morgan Chase Investor Sentiment

Predominant part of Macroaxis users are currently bullish on JP Morgan Chase. What is your judgment towards investing in JP Morgan Chase? Are you bullish or bearish?
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Bearish
98% Bullish
2% Bearish
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Please see the analysis of JP Morgan Fundamentals Over Time. Note that the JP Morgan Chase information on this page should be used as a complementary analysis to other JP Morgan's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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The market value of JP Morgan Chase is measured differently than its book value, which is the value of JP Morgan that is recorded on the company's balance sheet. Investors also form their own opinion of JP Morgan's value that differs from its market value or its book value, called intrinsic value, which is JP Morgan'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 JP Morgan's market value can be influenced by many factors that don't directly affect JP Morgan Chase underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between JP Morgan's value and its price as these two are different measures arrived at by different means. Investors typically determine JP Morgan value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JP Morgan'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.