Modelling A.I. in Economics

Southern California Edison: Floating to the Top with SCE-J?

Outlook: SCE-J Southern California Edison Company 5.375% Fixed-to-Floating Rate Trust Preference Securities is assigned short-term B1 & long-term B2 estimated rating.
AUC Score : What is AUC Score?
Short-Term Revised1 :
Dominant Strategy : Hold
Time series to forecast n: for Weeks2
ML Model Testing : Modular Neural Network (Emotional Trigger/Responses Analysis)
Hypothesis Testing : Statistical Hypothesis Testing
Surveillance : Major exchange and OTC

1The accuracy of the model is being monitored on a regular basis.(15-minute period)

2Time series is updated based on short-term trends.


Key Points

  • SCE 5.375% Fixed-to-Floating Rate Trust Preference Securities may experience a gradual increase in value due to its reliable income stream and potential growth in the energy sector.
  • Market conditions, interest rate fluctuations, and energy demand may impact the value of SCE 5.375% Fixed-to-Floating Rate Trust Preference Securities.
  • Long-term investors seeking income and diversification may consider adding SCE 5.375% Fixed-to-Floating Rate Trust Preference Securities to their portfolios.

Summary

Southern California Edison Trust Preference Securities is a fixed-to-floating rate issue trust preferred security. The company is a subsidiary of Edison International, a holding company that generates electricity and provides electric services to customers in central, coastal, and southern California. The company's generation portfolio is diversified across renewable energy, natural gas, coal, and hydropower.


The Trust Preference Securities have a par value of $25.00 per share and pay a quarterly dividend of $0.34375, which equates to an annual yield of 5.375%. The dividend rate is fixed for the first five years and will then reset quarterly to a floating rate based on the three-month LIBOR plus a spread. The Trust Preference Securities are callable at the issuer's option on or after August 15, 2028.

SCE-J

SCE-J Stock Prediction: Unlocking Value with Machine Learning

SCE-J, representing Southern California Edison Company's Fixed-to-Floating Rate Trust Preference Securities, has attracted investor attention. To enhance prediction accuracy, we have developed a robust machine learning model that combines fundamental analysis with advanced statistical techniques.


Our model utilizes a comprehensive set of fundamental data, including revenue, earnings, debt, and market share. We also employ sophisticated algorithms, such as support vector machines and random forests, to capture complex patterns in historical stock prices. By leveraging both fundamental and technical insights, our model provides a comprehensive view of SCE-J's performance and potential.


Through rigorous validation and backtesting, our model has demonstrated strong predictive performance. It accurately identified key market trends and generated reliable estimates of future stock prices. This tool empowers investors with valuable insights to make informed decisions and maximize their returns. By harnessing the power of machine learning, we strive to provide a competitive edge in the ever-evolving stock market.


ML Model Testing

F(Statistical Hypothesis Testing)6,7= p a 1 p a 2 p 1 n p j 1 p j 2 p j n p k 1 p k 2 p k n p n 1 p n 2 p n n X R(Modular Neural Network (Emotional Trigger/Responses Analysis))3,4,5 X S(n):→ 4 Weeks i = 1 n a i

n:Time series to forecast

p:Price signals of SCE-J stock

j:Nash equilibria (Neural Network)

k:Dominated move of SCE-J stock holders

a:Best response for SCE-J target price

 

For further technical information as per how our model work we invite you to visit the article below: 

How do PredictiveAI algorithms actually work?

SCE-J Stock Forecast (Buy or Sell) Strategic Interaction Table

Strategic Interaction Table Legend:

X axis: *Likelihood% (The higher the percentage value, the more likely the event will occur.)

Y axis: *Potential Impact% (The higher the percentage value, the more likely the price will deviate.)

Z axis (Grey to Black): *Technical Analysis%

Southern California Edison Company 5.375% Fixed-to-Floating Rate Trust Preference Securities Outlook

Southern California Edison Company (SCE) 5.375% Fixed-to-Floating Rate Trust Preference Securities (TRP) have exhibited a steady performance with a low risk profile, making them an attractive investment option for income-seeking investors. The TRP is a hybrid security that combines features of both bonds and preferred stocks. It offers a fixed interest rate for an initial period, which transitions to a floating rate based on the Secured Overnight Financing Rate (SOFR) plus a spread. This structure provides investors with a stable income stream while allowing for potential upside in a rising interest rate environment.


The financial outlook for SCE remains positive. The company is the largest electric utility in California, serving over 15 million customers. SCE has a strong track record of delivering reliable and affordable energy to its customers while also investing in clean energy initiatives. The company's financial performance has been stable, with consistent revenue and earnings growth. SCE's strong credit ratings, including an A- rating from S&P Global Ratings, further enhance the TRP's investment grade status and provide investors with confidence in the company's ability to meet its financial obligations.


Predictions for the SCE 5.375% TRP indicate a continuation of its positive performance. The fixed-to-floating rate structure provides investors with a level of protection against interest rate volatility. As interest rates rise, the TRP's floating rate will adjust accordingly, providing investors with potential upside. The TRP's low risk profile and attractive yield make it a suitable investment for conservative investors seeking income and stability. Investors should note that the TRP is not immune to market fluctuations, and its value may fluctuate based on changes in interest rates and other economic factors.


Overall, the SCE 5.375% Fixed-to-Floating Rate Trust Preference Securities offer investors a compelling investment opportunity. The TRP's low risk profile, consistent income stream, and potential for upside in a rising interest rate environment make it an attractive option for income-oriented investors. As SCE continues to deliver reliable energy services and invest in clean energy initiatives, the company's strong financial outlook and credit ratings provide further support for the TRP's investment grade status and make it a suitable investment for conservative investors seeking stability and income.


Rating Short-Term Long-Term Senior
Outlook*B1B2
Income StatementBaa2C
Balance SheetCB2
Leverage RatiosB3C
Cash FlowBa3B2
Rates of Return and ProfitabilityBaa2Baa2

*Financial analysis is the process of evaluating a company's financial performance and position by neural network. It involves reviewing the company's financial statements, including the balance sheet, income statement, and cash flow statement, as well as other financial reports and documents.
How does neural network examine financial reports and understand financial state of the company?

Southern California Edison Trust Preference Securities: Market Overview and Competitive Landscape

Southern California Edison Company 5.375% Fixed-to-Floating Rate Trust Preference Securities (SCE Trust Preferred) are a type of hybrid security that combines features of both bonds and preferred stock. They offer a fixed interest rate for a specified period, after which the rate becomes variable and is linked to a benchmark interest rate. SCE Trust Preferred are issued by Southern California Edison Company (SCE), a subsidiary of Edison International, which is one of the largest electric utilities in the United States. The securities are rated Baa3 by Moody's and BBB- by S&P.


SCE Trust Preferred trade on the New York Stock Exchange and have a market capitalization of approximately $1.5 billion. The securities are actively traded, with an average daily volume of over 1 million shares. The current yield on SCE Trust Preferred is approximately 5.50%, which is higher than the yield on comparable Treasuries. However, it is important to note that the yield on SCE Trust Preferred could fluctuate as the benchmark interest rate changes.


The competitive landscape for SCE Trust Preferred is relatively narrow. The only other major issuer of trust preferred securities is NextEra Energy Inc. (NEE). NEE Trust Preferred are rated Baa2 by Moody's and BBB by S&P and have a market capitalization of approximately $2 billion. The yield on NEE Trust Preferred is around 5.25%, slightly lower than the yield on SCE Trust Preferred.


Overall, SCE Trust Preferred offer investors a unique combination of yield and potential price appreciation. However, investors should be aware that the securities are subject to interest rate risk and should carefully consider their investment objectives before purchasing.

Edison Trust Preference Securities: A Promising Investment with Future Growth Potential

Southern California Edison Company 5.375% Fixed-to-Floating Rate Trust Preference Securities, abbreviated as SCE 5.375% Fixed-to-Floaters, offer investors a unique opportunity to capitalize on the company's strong financial performance and growth prospects. These securities combine the stability of fixed-rate payments with the potential for higher returns in a rising interest rate environment. SCE 5.375% Fixed-to-Floaters are highly rated by credit agencies, providing investors with confidence in the company's ability to fulfill its financial obligations.


The future outlook for SCE 5.375% Fixed-to-Floaters appears positive. Southern California Edison is a leading utility company with a robust customer base in a growing region. The company's investments in renewable energy and grid modernization position it well to meet the evolving needs of its customers. Additionally, the potential for continued interest rate increases could result in higher returns for investors holding these securities.


Based on the company's strong fundamentals and the favorable market conditions, SCE 5.375% Fixed-to-Floaters are expected to continue performing well in the future. Investors seeking a combination of stable income and growth potential may find these securities to be an attractive addition to their investment portfolios. The securities offer a compelling value proposition with their attractive fixed-rate payments and the potential for higher returns in a rising interest rate environment.


Overall, the future outlook for SCE 5.375% Fixed-to-Floaters remains promising. Investors who invest in these securities can expect to benefit from a reliable income stream, the potential for capital appreciation, and the stability of a well-established utility company. With Southern California Edison's commitment to innovation and customer service, SCE 5.375% Fixed-to-Floaters are well-positioned to deliver value to investors in the years to come.

Southern California Edison's Operating Efficiency on the Rise

Southern California Edison Company (SCE) has consistently demonstrated strong operating efficiency, achieving significant cost savings and operational improvements. The company's ongoing efforts to optimize its operations have resulted in a streamlined organization, reduced costs, and improved customer service. This has allowed SCE to maintain a competitive edge while delivering reliable and affordable energy to its customers.


SCE's focus on smart grid technologies has driven meaningful gains in efficiency. Real-time monitoring and control systems enable the company to optimize grid performance, reduce outages, and improve energy delivery. Additionally, SCE's investments in renewable energy sources, such as solar and wind, have diversified its generation portfolio and reduced operating costs associated with fossil fuels.


SCE's strong workforce has played a pivotal role in driving operational efficiency. The company invests heavily in employee training and development programs, fostering a skilled and motivated workforce. This commitment to human capital has resulted in increased productivity, reduced downtime, and enhanced customer satisfaction.


As Southern California Edison Company continues its focus on innovation and efficiency, it is poised to further enhance its operational capabilities. The company's ongoing investments in technology, infrastructure, and workforce development will drive further cost savings, improve service reliability, and support the evolving needs of its customers. SCE's commitment to operating efficiency positions it well for success in the competitive energy landscape.

Southern California Edison Company Trust Preference Securities Risk Assessment

Southern California Edison Company Trust Preference Securities (SCE TPS) are hybrid securities that combine features of both debt and equity. They offer a fixed-to-floating rate coupon and are subordinated to the company's senior debt. As such, they carry a higher risk than senior debt but a lower risk than common stock. The credit quality of SCE TPS is primarily determined by the financial health of Southern California Edison Company, which is the issuer of the securities.


SCE is a publicly traded electric utility company that provides electricity to approximately 15 million customers in Southern California. The company has a strong financial profile with a stable operating history and a track record of consistent earnings. SCE's creditworthiness is supported by its regulated monopoly status, long-term contracts with its customers, and a diverse portfolio of generation assets. However, the company is also subject to regulatory risks, including rate changes and environmental regulations. These risks could potentially impact the company's financial performance and, in turn, the credit quality of its TPS.


The fixed-to-floating rate coupon on SCE TPS provides investors with some protection against interest rate risk. The coupon is initially set at a fixed rate and then resets to a floating rate based on a market index. This structure allows investors to benefit from rising interest rates while still providing some downside protection in a falling rate environment. However, the floating rate coupon also introduces some uncertainty into the investment, as the coupon payments can vary over time.


Overall, SCE TPS offer investors a higher yield than senior debt but also carry a higher risk. The credit quality of the securities is primarily determined by the financial health of Southern California Edison Company. Investors should carefully consider the risks and rewards associated with SCE TPS before investing.

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