JPM High Yield Industria 2011-12-01 736416

North America Credit Research
01 December 2011
High Yield Industrials Monthly

Sector Recommendations; Huntington Ingalls 4Q11
AFL Pick
High Yield Industrials
We are maintaining our Neutral recommendation on the Industrials sector. Based

on valuation, we are downgrading the Aerospace and Defense subsector to
Underweight from Neutral. We are also reiterating our Neutral recommendation
on the Manufacturing subsector. Additionally, we reiterate our Overweight
recommendation on Huntington Ingalls, our 4Q11 Analyst Focus List pick.
Yilma Abebe
AC
(1-212) 270-3265
yilma.abebe@jpmorgan.com
Ryan P. Dean
(1-212) 270-9566
ryan.p.dean@jpmorgan.com
J.P. Morgan Securities LLC
Weekly Movers
Price
23-Nov-11
Week/Week
Change
YTW
STW
YTW Date
99.25
97.50
1.75
10.07%
966bp
1-Aug-14
104.50
103.00
1.50
8.40%
815bp
1-Nov-13
96.00
95.00
1.00
7.94%
673bp
1-Apr-18
15-Jun-13
100.53
100.02
0.51
5.93%
574bp
15-Jun-13
8.125%
15-Mar-18
104.50
104.00
0.50
6.89%
612bp
15-Mar-16
8.500%
1-Nov-20
102.00
101.50
0.50
8.11%
678bp
1-Nov-18
Masonite Corp.
8.250%
15-Apr-21
93.75
93.25
0.50
9.26%
740bp
15-Apr-21
Mueller Water Products
8.750%
1-Sep-20
106.00
105.50
0.50
7.59%
629bp
1-Sep-18
Triumph Group
8.000%
15-Nov-17
106.50
106.00
0.50
6.12%
543bp
15-Nov-15
AS Americas
10.750%
15-Jan-16
67.00
70.00
(3.00)
23.71%
2,298bp
15-Jan-16
General Cable
7.125%
1-Apr-17
99.25
102.00
(2.75)
7.29%
630bp
1-Apr-17
Thermadyne Holdings
9.000%
15-Dec-17
100.00
102.00
(2.00)
9.00%
806bp
15-Dec-16
Building Materials
6.875%
15-Aug-18
100.00
101.75
(1.75)
6.87%
601bp
15-Aug-16
Texas Industries
9.250%
15-Aug-20
82.25
84.00
(1.75)
12.67%
1,095bp
15-Aug-20
Alion Science and Technology
12.000%
1-Nov-14
90.50
92.00
(1.50)
13.94%
1,348bp
1-Nov-14
Bombardier
6.125%
15-May-21
93.50
95.00
(1.50)
7.08%
484bp
15-May-21
Bombardier
7.750%
15-Mar-20
107.00
108.50
(1.50)
6.64%
500bp
15-Mar-20
Columbus McKinnon
7.875%
1-Feb-19
101.00
102.50
(1.50)
7.63%
667bp
1-Feb-17
Coupon
Maturity
USG
9.750%
1-Aug-14
Allison Transmission
11.000%
1-Nov-15
Griffon Corporation
7.125%
1-Apr-18
Vulcan Materials
6.300%
AMSTED Industries
Manitowoc
Issuer
30-Nov-11
Top weekly gainers
Top weekly declines
Source: J.P. Morgan
See page 34 for analyst certification and important disclosures.

J.P. Morgan does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may
have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their
investment decision.
www.morganmarkets.com

01 December 2011
Yilma Abebe
(1-212) 270-3265
Industrials
Sector recommendation: Neutral
Aerospace and Defense.......Underweight
Manufacturing..........................Neutral
We are maintaining our Neutral recommendation on the Industrials sector.
While it is difficult to generalize this sector, earnings are highly correlated to
economic activity and we think credit quality for most companies in our universe
will remain unchanged or modestly improve in 2012 in a ~3% global GDP growth
(JPMs forecast) environment. However, we think yields already reflect improving
credit fundamentals, stabilizing end market demand, and earnings growth
expectations and feel the appropriate weighting is a Neutral. We do not think current
valuations leave much room for error considering the range of macro risks (for
example global growth, sovereign fiscal concerns, weak housing data) to warrant an
Overweight rating.
Aerospace and Defense

We are downgrading the Aerospace and Defense sector to Underweight from
Neutral. The change in recommendation is based on valuations. With an average
yield of 7.1%, compared to 8.6% for the overall high-yield market, we think the
sector is likely to underperform in 2012. We think credits in this sector are not good
shorts, though, due to above average M&A risk. We continue to be constructive on
commercial aerospace demand trends due to higher OEM production rates next year.
In Defense, we believe event risk will likely be a focus in 2012 given uncertain
defense budgets, election year, and budget cuts (Budget Control Act of 2011).
We think we are at the beginning of a multi-year cyclical expansion in
commercial aviation. Aircraft deliveries from Boeing and Airbus are likely to
remain strong in 2012. J.P. Morgan's Aerospace and Defense equity analyst Joseph
Nadol estimates 15% delivery growth in 2012 and 7% growth in 2013. The
International Air Transport Association (IATA) decreased its profitability outlook
for FY2012 to $4.9 billion from $6.9 billion in 2011 primarily on account of higher
fuel costs. Even if airline profitability declines from 2011 levels next year, air traffic
and capacity growth should support healthy earnings growth at OEM suppliers and
aftermarket service and parts providers in our universe.
Commercial Deliveries
2005
2006
2007
2008
2009
2010
2011E
2012E
2013E
2014E
2015E
Boeing
290
398
441
375
481
462
488
603
662
739
766
Airbus
378
434
453
483
498
510
538
589
624
633
658
E190/5
CSeries
Subtotal
12
0
12
43
0
43
78
0
78
92
0
92
82
0
82
75
0
75
92
0
92
99
0
99
100
1
101
90
30
120
85
50
135
Total
680
875
972
950
1,061
1,047
1,118
1,291
1,387
1,492
1,559
Other
Source: Company reports and estimates by J.P. Morgan Equity Research Senior Analyst Joe Nadol.
The business jet market will likely remain at low levels next year. Historically,
demand for business jets has lagged overall corporate profit growth by about two
years. In the current downturn, even though corporate profitability has recovered,
business jet manufacturers have tempered their outlooks for 2012. Honeywells 2011
2

01 December 2011
Yilma Abebe
(1-212) 270-3265
delivery forecast of 600-650 new business jets is ~15% below the 732 business jets
delivered in 2010. In 2012, Honeywell forecasts deliveries to be slightly above 2010
levels but still below 700. In 2011 large business jet manufacturers have fared better
than the small/medium business jet manufacturers and we expect similar relative
performance in 2012.
We expect budget reduction efforts to pressure profitability in the defense
sector. We also expect headline risk to be above average especially news flow
related to the Budget Control Act of 2011. For most of 2012, we expect uncertainty
on how this Act will impact defense programs. When investing in this sector, we
think it is key to focus on companies that are on diverse platforms and not dependent
on any one large program. Additionally, we expect increased M&A activity as
defense contractors seek revenue/profitability growth in an environment of a
declining defense budget.
Manufacturing
We are reiterating our Neutral recommendation. Credit fundamentals of
manufacturing companies should modestly improve in the 2012 with expected ~3%
global GDP growth. We expect credit profiles to remain stable in 2012, primarily
due to healthy backlogs, strong free cash flow generation, and right-sized cost
structures. We continue to favor companies that have exposure to agriculture,
mining, and energy end markets. On the other hand, credits that have significant end
market exposure to non-residential and residential construction could face earnings
headwinds.
Macroeconomic indicators are stabilizing. Earnings in the Manufacturing sector
are highly correlated to economic activity. J.P. Morgan economists are forecasting
1.8% growth for U.S. GDP in 2012. In October the U.S. Capacity Utilization rate
improved to 77.8%, still below its long-term average of ~80.5% but up 210bp y/y.
Trends in the ISM index have been mixed with the November reading at 52.7 down
5.5 points y/y. While it is difficult to generalize our manufacturing sector, most
management teams are cautiously optimistic on the outlook for 2012 and have openly
discussed on 3Q11 earnings calls the disconnect between current order rates and
recessionary fears reported in the press.
q/q, %saar
Real GDP (U.S.)
1Q11
0.4%
2Q11
1.3%
3Q11
2.0%
Quarterly
4Q11E
1Q12E
3.0%
0.5%
2Q12E
1.5%
3Q12E
2.5%
4Q12E
2.5%
Annual
FY2012E
1.8%
Source: J.P. Morgan economic research, Michael Feroli
U.S. Capacity Utilization
60.0
Expanding
50.0
80.0%
77.0%
40.0
74.0%
30.0
71.0%
68.0%
10.0
65.0%
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
0.0
ISM Manufacturing Index
Jan-09
Mar-09
May-09
Jul-09
Sep-09
Nov-09
Jan-10
Mar-10
May-10
Jul-10
Sep-10
Nov-10
Jan-11
Mar-11
May-11
Jul-11
Sep-11
20.0
Source: Federal Reserve
Source: Institute of Supply Management
Yilma Abebe
(1-212) 270-3265

01 December 2011
AFL Pick: Huntington Ingalls (HII)

Buy HII 7.125% Senior Notes due 3/15/2021
Credit and Investment Highlights:
Established market leader in a consolidated industry. Huntington Ingalls and
General Dynamics built 232 of the U.S. Navys current 286 ships. The company
is the exclusive builder of nuclear-powered aircraft carriers and maintains a sole
source position providing refueling and maintenance services. Huntington Ingalls
is one of two companies building nuclear-powered submarines. It also builds
Amphibious ships, Destroyers, and the National Security Cutter.
High visibility of revenue and cash flow due to long life cycle of ships and
submarines. For example, the company is uniquely positioned to generate
revenue from each phase of aircraft carrier building, which includes construction
and planning, refueling and complex overhaul (RCOH) services, and inactivation.
The life cycle of an aircraft carrier is 50 years.
Solid backlog. As of 3Q11, HII had a backlog of $17.3 billion, of which $11.8
billion was funded backlog.
Why This Pick Should Outperform:
We are comfortable with the companys credit risk and feel valuations are
compelling. We think the Budget Control Act of 2011 has placed some pressure
on HII bonds and other defense credits. Failure of the super-committee has caused
even more uncertainty with how the act may impact defense programs. While this
is an important risk, we think this credit has ample margin for error to weather a
difficult defense budget environment. The credit should fare better than other
defense companies because the U.S. is a maritime nation and HIIs businesses are
aligned with national priorities.
We think downside risk from a credit perspective at HII is limited due to
long life cycle of products. Management provided three different time frames to
think about when analyzing Huntington Ingalls. Management noted that in the
first time frame (0 to 5 years) contracts are in the backlog of the company or are
being negotiated presently. The FY2013 budget discussions impact the second
time frame, which consists of the next 5 to 10 years. Lastly, the third time frame
is a debate over what type of Navy the country wants to have in 10 to 50 years.
Attractive on a relative value basis. We think HII bonds yielding ~7.5% in the
tightly trading Aerospace & Defense universe are attractive. We see HII as BB
risk and feel its bonds should reflect BB valuation. Our fair value target yield for
HIII bonds is in line with the BB Aerospace & Defense universe, or about 7%.
HII Relative Value
Ticker
HII
ATK
MANT
SPR
Rating
Ba3/B+
Ba3/BBBa2/BB+
Ba3/BB-
Sources: J.P. Morgan, Moodys, and S&P.

4
Coupon
7.125%
6.875%
7.25%
6.75%
Maturity
2021
2020
2018
2020
Price
98.50
102.50
104.00
103.50
YTW
7.35%
6.41%
6.19%
6.13%
STW
546bp
495bp
543bp
459bp
Yilma Abebe
(1-212) 270-3265

01 December 2011
Huntington Ingalls, Inc.

FINANCIAL SUMMARY ($ mn)
Fiscal year-end December
Income statement data
Actual
Full year
FYE-2007
Actual
Full year
FYE-2008
Actual
Full year
FYE-2009
Pro forma
Full year
FYE-2010
Estimated
Full year
FYE-2011
Estimated
Full year
FYE-2012
Estimated
Full year
FYE-2013
Actual
LTM
30-Sep-11
Net sales
y/y growth
$5,692
$6,189
8.7%
$6,292
1.7%
$6,723
6.8%
$6,583
-2.1%
$6,555
-0.4%
$6,592
0.6%
$6,576
Cost of sales
Gross profit
Gross margin
$4,604
$1,088
19.1%
$5,489
$700
11.3%
$5,442
$850
13.5%
$5,812
$911
13.6%
$5,596
$987
15.0%
$5,539
$1,016
15.5%
$5,550
$1,042
15.8%
$5,525
$1,051
16.0%
Total Operating Expenses
$641
$564
$639
$663
$604
$599
$591
$661
Memo item: adjustments to EBITDA

AMSEC* reorganization
LHD 8 charges / recovery
Hurricane Ike
Hurricane Katrina recovery
LPD 22-25 charges
Avondale wind-down LPD-23 and LPD-25 impacts
Other income / (expense)
Post spin corp. costs
($23)
$55
$0
($62)
$0
$0
$6
$0
$0
$263
$16
$0
$0
$0
$0
$0
$0
($54)
$0
$0
$171
$0
$1
$0
$0
$30
($17)
$0
$0
$113
($2)
$7
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($2)
$7
$593
10.4%
$589
9.5%
$515
8.2%
$562
8.4%
$581
8.8%
$614
9.4%
$648
9.8%
$573
8.7%
Depreciation and amortization
$170
$174
$186
$183
$197
$197
$198
$178
Adjusted EBIT
EBIT margin
$423
7.4%
$415
6.7%
$329
5.2%
$379
5.6%
$384
5.8%
$417
6.4%
$450
6.8%
$395
6.0%
Adjusted EBITDA
EBITDA Margin
Interest Expense, Net
$42
$40
$35
$120
$103
$114
$114
$165
Adjusted EBT
Income tax provision
$381
$133
$375
$131
$294
$103
$259
$91
$281
$98
$303
$106
$336
$118
$230
$81
Adjusted net income
$248
$244
$191
$168
$183
$197
$219
$150
Capital Expenditures
$246
$218
$181
$191
$197
$180
$181
$214
Free cash flow

EBITDA
-Interest Expense
-Cash taxes
-Working capital (use)
-Restructuring
-Pension contribution
Operating cash flow
$593
($42)
($133)
$188
$0
($58)
$548
$589
($40)
($131)
$68
$0
($114)
$372
$515
($35)
($103)
($387)
$0
($201)
($211)
$562
($120)
($91)
($75)
$0
$0
$276
$581
($103)
($98)
($75)
($90)
($10)
$205
$614
($114)
($106)
($50)
($90)
($90)
$164
$648
($114)
($118)
($50)
($90)
($10)
$266
-Capital Expenditures
Free cash flow
($246)
$302
($218)
$154
($181)
($392)
($191)
$85
($197)
$8
($180)
($17)
($181)
$85
107%
54%
-138%
5%
0%
-1%
5%
FCF/Total Debt
Source: J.P. Morgan and Company Reports
* AMSEC is a subsidiary of Huntington Ingalls that provides fleet and miantenance services.
Yilma Abebe
(1-212) 270-3265

01 December 2011
Huntington Ingalls, Inc.

FINANCIAL SUMMARY ($ mn)
Actual
Full year
FYE-2007
Actual
Full year
FYE-2008
Cash & Cash Equivalents

Secured & Bank Debt
Total Debt
$0
$0
$283
$0
$0
$283
Credit Statistics
Adj. EBITDA
Interest expense, net
$593
$42
EBITDA / Interest Expense

EBITDA - CapEx / Interest Expense
Secured & Bank debt/EBITDA
Total Debt/EBITDA
Net Debt/EBITDA
14.1x
8.3x
0.0x
0.5x
0.5x
Balance Sheet Data
Actual
Full year
FYE-2009
Pro forma
Full year
FYE-2010
Estimated
Full year
FYE-2011
$0
$0
$283
$300
$575
$1,881
$536
$560
$1,865
$519
$560
$1,865
$519
$475
$1,780
$536
$561
$1,866
$589
$40
$515
$35
$562
$120
$581
$103
$614
$114
$648
$114
$573
$165
14.7x
9.3x
0.0x
0.5x
0.5x
14.3x
9.3x
0.0x
0.5x
0.5x
4.7x
3.1x
1.0x
3.3x
2.8x
5.7x
3.7x
1.0x
3.2x
2.3x
Estimated
Full year
FYE-2012
5.4x
3.8x
0.9x
3.0x
2.2x
Estimated
Full year
FYE-2013
5.7x
4.1x
0.7x
2.7x
1.9x
CAPITALIZATION
LIQUIDITY
JPM Est.
30-Sep-11
$536
% total
$650mln revolving loan facility due 2016

$575mln term loan facility due 2016
Total bank debt
$0
$561
$561
0%
19%
19%
6.875% $600mln senior notes due 2018

7.125% $600mln senior notes due 2021
Ingalls IRBs
GOZone Bonds
Total debt
$600
$600
$84
$21
$1,866
20%
20%
3%
1%
62%
Shareholders' Equity
$1,155
38%
Total capitalization
$3,021
100%
($ mn)
($ mn)

Line of credit
Credit usage
Letters of credit
Net availability
Current portion of long-term debt
Total liquidity
JPM Est.
30-Sep-11
$536
$650
$0
($121)
$529
($29)
$1,036
MARKET VALUATION
($ mn)
Share price
Number of shares ($ mn)
Market value of equity
Enterprise value
DEBT AMORTIZATION SCHEDULE

As of
30-Nov-11
$31.75
48.8
$1,549.5
$2,879.5
($ mn)
2011
2012
2013
2014
Thereafter
Enterprise value/LTM EBITDA

Enterprise value/2011E EBITDA
5.0x
5.0x
Debt/enterprise value
Debt/total capitalization
65%
62%
Actual
30-Sep-11
$28.8
$28.8
$57.5
$86.5
$1,664.5
Actual
LTM
30-Sep-11
3.5x
2.2x
1.0x
3.3x
2.3x

01 December 2011
Yilma Abebe
(1-212) 270-3265
Relative Value: Aerospace and Defense

Date:
December 1, 2011
Coupon
Description
Rec
Ratings
Amount
Moody's
Out.
Equity
Maturity
S&P
($ mn)
Bid
Ytw
Spread
Recent Quotes
Next Call Data

YTW Date
Date
Price
LTM
Debt/
Sr. Sec./
Net Debt/
EBITDA/
Total Debt/
TEV/
Mkt
EBITDA
EBITDA
EBITDA
LTM EBITDA
Int. Exp
TEV
LTM EBITDA
Cap
Alliant Techsystems (ATK)

6.750%
Sr Sub Nts
Hold
1-Apr-16
Ba3/BB-
$400.0
101.75
5.93%
560bp
1-Apr-14
1-Apr-12
102.25
$634
2.5x
0.6x
1.8x
6.6x
50%
5.0x
$1,988.1
6.875%
Sr Sub Nts
Hold
15-Sep-20
Ba3/BB-
$350.0
101.50
6.59%
525bp
15-Sep-18
15-Sep-15
103.44
$634
2.5x
0.6x
1.8x
6.6x
50%
5.0x
$1,988.1
8.500%
Sr Nts
Hold
1-Jul-18
Ba2/BB
$600.0
108.00
5.72%
553bp
1-Jul-13
1-Jul-13
104.25
$459
2.7x
0.0x
2.3x
4.0x
25%
10.8x
$3,896.3
6.875%
Sr Nts
Hold
1-Oct-20
Ba2/BB
$650.0
107.00
5.62%
471bp
1-Oct-16
1-Oct-15
103.44
$459
2.7x
0.0x
2.3x
4.0x
25%
10.8x
$3,896.3
6.750%
Sr Nts
NR
1-May-12
Ba2/BB+
$151.1
100.75
4.83%
480bp
1-May-12
nc
nc
$1,518
3.3x
0.0x
1.2x
2.1x
54%
6.1x
$7,453.6
6.300%
Sr Nts
NR
1-May-14
Ba2/BB+
$162.0
104.75
4.20%
386bp
1-May-14
nc
nc
$1,518
3.3x
0.0x
1.2x
2.1x
54%
6.1x
$7,453.6
7.250%
Sr Nts
NR
15-Nov-16
Ba2/BB+
$785.0
103.00
6.12%
561bp
15-Nov-14
15-Nov-12
102.42
$1,518
3.3x
0.0x
1.2x
2.1x
54%
6.1x
$7,453.6
7.500%
Sr Nts
NR
15-Mar-18
Ba2/BB+
$650.0
106.25
6.28%
505bp
15-Mar-18
nc
nc
$1,518
3.3x
0.0x
1.2x
2.1x
54%
6.1x
$7,453.6
7.750%
Sr Nts
NR
15-Mar-20
Ba2/BB+
$850.0
107.00
6.63%
496bp
15-Mar-20
nc
nc
$1,518
3.3x
0.0x
1.2x
2.1x
54%
6.1x
$7,453.6
6.125%
Sr Nts
NR
15-May-21
Ba2/BB+
$780.0
94.00
7.00%
485bp
15-May-21
nc
nc
$1,518
3.3x
0.0x
1.2x
2.1x
54%
6.1x
$7,453.6
7.450%
Sr Nts
NR
1-May-34
Ba2/BB+
$250.0
98.75
7.57%
490bp
1-May-34
nc
nc
$1,518
3.3x
0.0x
1.2x
2.1x
54%
6.1x
$7,453.6
Sr Nts
NR
15-Nov-17
Caa1/B-
$250.0
73.00
15.94%
1479bp
15-Nov-17
15-Nov-13
104.38
$23
nm
nm
nm
nm
na
na
na
Sr Nts
NR
1-Jul-17
B2/B-
$455.0
87.00
13.79%
1272bp
1-Jul-17
1-Jul-14
105.19
$220
4.7x
2.6x
4.4x
3.0x
na
na
na
BE Aerospace (BEAV)
Bombardier (BOMB)
Colt Defense (CLTDEF)

8.750%
DynCorp (DYNCRP)
10.375%
Esterline Technologies (ESL)

6.625%
Sr Nts
Hold
1-Mar-17
Ba3/BB
$173.7
102.00
5.93%
540bp
1-Mar-15
1-Mar-12
103.31
$343
2.9x
0.7x
2.6x
8.1x
37%
7.8x
$1,776.5
7.000%
Sr Nts
NR
1-Aug-20
Ba3/BB
$250.0
103.50
6.34%
503bp
1-Aug-18
1-Aug-15
103.50
$343
2.9x
0.7x
2.6x
8.1x
37%
7.8x
$1,776.5
Hawker Beechcraft (HAWKER)

8.500%
Sr Nts
Hold
1-Apr-15
Ca/CCC-
$182.9
25.00
67.74%
6718bp
1-Apr-15
1-Apr-12
102.13
$96
nm
nm
nm
nm
na
na
na
9.750%
Sr Sub Nts
Hold
1-Apr-17
Ca/CCC-
$145.1
15.50
75.93%
7491bp
1-Apr-17
1-Apr-12
104.88
$96
nm
nm
nm
nm
na
na
na
8.875%
Sr Toggle Nts
Hold
1-Apr-15
Ca/CCC-
$302.6
25.00
68.73%
6817bp
1-Apr-15
1-Apr-12
102.22
$96
nm
nm
nm
nm
na
na
na
Sr Sub Nts
Hold
1-Feb-15
B1/BB+
$75.0
101.38
4.96%
498bp
1-Feb-12
1-Feb-12
101.13
$199
1.7x
1.3x
1.1x
8.6x
12%
13.8x
$2,527.5
6.875%
Sr Nts
Buy
15-Mar-18
Ba3/B+
$600.0
98.00
7.27%
605bp
15-Mar-18
15-Mar-15
103.44
$570
3.3x
1.0x
2.6x
3.9x
64%
5.1x
$1,425.0
7.125%
Sr Nts
Buy
15-Mar-21
Ba3/B+
$600.0
98.00
7.42%
553bp
15-Mar-21
15-Mar-16
103.56
$570
3.3x
1.0x
2.6x
3.9x
64%
5.1x
$1,425.0
Hold
15-Oct-15
Ba1/BB+
$1,000.0
102.13
5.04%
494bp
15-Oct-12
15-Oct-12
101.06
$2,191
1.9x
0.0x
1.6x
8.2x
38%
5.5x
$7,217.5
Sr Nts
NR
15-Apr-18
Ba2/BB+
$200.0
102.50
6.58%
578bp
15-Apr-16
15-Apr-14
103.63
$262
0.8x
0.0x
0.5x
16.9x
13%
5.7x
$1,360.6
6.250%
Sr Sub Nts
NR
15-Jan-15
Ba3/B+
$187.0
100.50
5.77%
565bp
15-Jan-13
15-Jan-12
101.04
$333
2.2x
1.0x
1.8x
8.9x
30%
7.2x
$1,768.5
7.250%
Sr Sub Nts
NR
15-Jun-18
Ba3/B+
$191.6
101.75
6.79%
596bp
15-Jun-16
15-Jun-13
103.63
$333
2.2x
1.0x
1.8x
8.9x
30%
7.2x
$1,768.5
7.500%
Sr Nts
NR
1-Oct-17
Ba3/BB-
$300.0
106.25
5.66%
498bp
1-Oct-15
1-Oct-13
103.75
$462
2.6x
1.3x
2.3x
6.3x
33%
7.9x
$2,605.7
6.750%
Guar Nts
NR
15-Dec-20
Ba3/BB-
$300.0
102.25
6.35%
495bp
15-Dec-18
15-Dec-15
103.38
$462
2.6x
1.3x
2.3x
6.3x
33%
7.9x
$2,605.7
Sr Sub Nts
Hold
15-Dec-18
B3/B-
$1,600.0
103.00
7.13%
596bp
15-Dec-17
15-Dec-14
103.88
$611
5.1x
2.5x
4.7x
3.1x
42%
12.2x
$4,566.8
8.000%
Sr Sub Nts
NR
15-Nov-17
B1/B+
$175.0
106.50
6.12%
542bp
15-Nov-15
15-Nov-13
104.00
$465
2.7x
1.2x
2.6x
4.9x
31%
8.7x
$2,826.7
8.625%
Sr Nts
NR
15-Jul-18
Ba3/B+
$350.0
109.00
6.33%
571bp
15-Jul-15
15-Jul-14
104.31
$465
2.7x
1.2x
2.6x
4.9x
31%
8.7x
$2,826.7
Sr Sub Nts
NR
1-Apr-18
Caa2/B-
$175.0
96.25
11.34%
1010bp
1-Apr-18
1-Apr-14
105.25
na
na
na
na
na
na
na
na
Hexcel (HXL)
6.750%
Huntington Ingalls (HII)
L-3 Communications (LLL)

6.375%
Sr Sub Nts
ManTech International (MANT)

7.250%
Moog (MOG)
Spirit Aerosystems (SPR)
Transdigm (TDG)*
7.750%
Triumph Group (TGI)**
Wyle Services (WYLE)*

10.500%
Source: J.P. Morgan and company reports.

*Pro forma for recently completed acquisitions.
**Pro forma for Vought acquisition.

01 December 2011
Yilma Abebe
(1-212) 270-3265
Relative Value: Industrials

Date:
December 1, 2011
Coupon
Description
Ratings
Amount
Moody's
Out.
Equity
Recent Quotes
LTM
Debt/
Net Debt/
Sr. Sec./
EBITDA/
Total Debt/
TEV/
Mkt
EBITDA
EBITDA
LTM EBITDA
EBITDA
Int. Exp
TEV
LTM EBITDA
Cap
106.09
$80
3.8x
1.9x
2.7x
4.1x
55%
6.9x
$404.6
nc
$158
1.4x
1.2x
0.0x
6.0x
24%
6.0x
$760.9
na
na
na
na
na
na
na
na
Next Call Data
Rec
Maturity
S&P
($ mn)
Bid
Ytw
Spread
YTW Date
Date
NR
1-Dec-16
B1/BB-
$210.0
103.75
7.03%
632bp
1-Dec-15
1-Dec-12
NR
15-Dec-20
Ba3/BB
$225.0
101.00
6.72%
489bp
15-Dec-20
nc
NR
1-May-16
B2/B
$185.0
100.00
12.24%
1189bp
1-May-14
1-May-13
Price
Altra Holdings (AIMC)

8.125%
Sr Sec Nts
Briggs & Stratton (BGG)

6.875%
Sr Nts
Cleaver-Brooks (CLEAVB)
12.250%
Sr Sec Nts (1st Lien)
106.13
CNH Global (CNH)1

7.750%
Sr Nts
Buy
1-Sep-13
Ba2/BB+
$1,000.0
105.00
4.71%
450bp
1-Sep-13
nc
nc
$1,366
3.2x
nm
1.0x
3.2x
51%
6.1x
$8,455.2
7.250%
Sr Nts
Buy
15-Jan-16
Ba2/BB+
$254.0
106.00
5.59%
485bp
15-Jan-16
nc
nc
$1,366
3.2x
nm
1.0x
3.2x
51%
6.1x
$8,455.2
6.250%
Sr Nts
NR
1-Nov-16
Ba2/BB
$500.0
99.75
6.31%
538bp
1-Nov-16
nc
nc
$1,366
3.2x
nm
1.0x
3.2x
51%
6.1x
$8,455.2
7.875%
Sr Nts
Buy
1-Dec-17
Ba2/BB+
$1,500.0
109.50
5.97%
480bp
1-Dec-17
nc
nc
$1,366
3.2x
nm
1.0x
3.2x
51%
6.1x
$8,455.2
NR
1-Feb-19
B1/B+
$150.0
101.00
7.63%
665bp
1-Feb-17
1-Feb-15
103.94
$34
4.7x
3.3x
0.2x
2.5x
42%
11.0x
$262.1
NR
15-Jul-19
B2/B
$350.0
93.25
10.56%
903bp
15-Jul-19
15-Jul-15
104.63
na
na
na
na
na
na
na
na
Sr Nts
Hold
1-Apr-17
Ba3/B+
$200.0
99.25
7.29%
628bp
1-Apr-17
1-Apr-12
103.56
$342
3.2x
2.0x
0.9x
4.2x
49%
6.5x
$1,541.0
Sr Sub Nts
Hold
1-Dec-15
B2/B+
$204.0
99.25
8.22%
751bp
1-Dec-15
1-Dec-12
101.33
$41
5.1x
2.5x
0.0x
1.7x
47%
10.8x
$337.0
NR
15-Nov-18
B2/BB
$300.0
103.00
6.28%
535bp
15-Nov-16
15-Nov-13
105.25
$102
2.9x
2.2x
0.0x
5.0x
41%
7.2x
$513.1
Sr Nts
Buy
15-Mar-14
B3/B
$198.8
99.75
8.86%
855bp
15-Mar-14
15-Mar-12
100.00
$33
6.3x
4.5x
0.1x
1.9x
na
na
na
7.125%
Sr Nts
Hold
1-Nov-13
B3/B+
$150.0
100.00
7.12%
688bp
1-Nov-13
$328
6.4x
6.1x
2.7x
1.9x
59%
10.8x
$1,529.6
9.500%
Sr Nts
Buy
15-Feb-18
B3/B+
$400.0
103.25
8.55%
780bp
15-Feb-16
15-Feb-14
104.75
$328
6.4x
6.1x
2.7x
1.9x
59%
10.8x
$1,529.6
8.500%
Sr Nts
Buy
1-Nov-20
B3/B+
$600.0
102.00
8.11%
675bp
1-Nov-18
1-Nov-15
104.25
$328
6.4x
6.1x
2.7x
1.9x
59%
10.8x
$1,529.6
Columbus McKinnon (CMCO)

7.875%
Sr Sub Nts
Dynacast International (DYNCST)

9.250%
Sr Sec Nts (2nd Lien)
General Cable (BGC)

7.125%
Gibraltar (ROCK)
8.000%
Interline Brands (IBI)

7.000%
Sr Sub Nts
JB Poindexter (JBPOIN)
8.750%
Manitowoc (MTW)
Mueller Water (MWA)

7.375%
Sr Sub Nts
NR
1-Jun-17
Caa2/CCC+
$420.0
87.63
10.39%
934bp
1-Jun-17
1-Jun-12
103.69
$106
6.5x
6.1x
0.5x
1.5x
62%
10.4x
$459.0
8.750%
Sr Nts
NR
1-Sep-20
B2/B+
$225.0
106.13
7.57%
624bp
1-Sep-18
1-Sep-15
104.38
$106
6.5x
6.1x
0.5x
1.5x
62%
10.4x
$459.0
8.250%
Sr Nts
NR
1-Mar-17
B2/BB
$250.0
100.75
8.03%
726bp
1-Mar-16
1-Mar-14
104.13
$822
1.4x
1.1x
0.7x
7.5x
42%
3.2x
$1,934.0
8.500%
Sr Nts
NR
1-Mar-20
B2/BB
$250.0
100.50
8.39%
717bp
1-Mar-18
1-Mar-15
104.25
$822
1.4x
1.1x
0.7x
7.5x
42%
3.2x
$1,934.0
Sr Nts
NR
1-Apr-21
B3/CCC+
$250.0
97.50
8.52%
661bp
1-Apr-21
1-Apr-16
104.06
$72
4.9x
4.1x
1.4x
3.0x
74%
6.7x
$186.6
Sr Nts
NR
15-Nov-17
B3/B
$365.0
102.50
6.89%
596bp
15-Nov-16
15-Nov-13
105.63
$225
3.2x
2.8x
1.6x
5.5x
25%
12.7x
$2,238.6
8.500%
Sr Nts
Buy
1-May-18
Caa1/B-
$1,145.0
102.50
7.81%
701bp
1-May-16
1-May-14
104.25
$349
6.4x
5.7x
2.2x
2.0x
na
na
na
11.750%
Sr Sub Nts
Buy
1-Aug-16
Caa2/CCC+
$300.0
104.00
9.98%
958bp
1-Aug-14
1-Aug-12
103.92
$349
6.4x
5.7x
2.2x
2.0x
na
na
na
7.625%
Sr Nts
NR
15-Dec-14
Ba2/BB+
$500.0
107.88
4.80%
431bp
15-Dec-14
nc
nc
$555
2.2x
1.5x
0.0x
6.0x
34%
6.6x
$2,822.3
6.875%
Guar Nts
NR
1-Sep-17
Ba2/BB+
$600.0
105.00
5.83%
473bp
1-Sep-17
nc
nc
$555
2.2x
1.5x
0.0x
6.0x
34%
6.6x
$2,822.3
8.000%
Sr Sub Nts
Hold
15-Nov-17
Caa1/B
$800.0
97.25
8.60%
744bp
15-Nov-17
15-Nov-12
104.00
$101
NM
NM
NM
NM
66%
NM
$1,820.5
10.875%
Sr Nts
Hold
1-Jun-16
B2/BB-
$300.0
111.00
6.54%
636bp
1-Jun-13
1-Jun-13
105.44
$101
NM
NM
NM
NM
66%
NM
$1,820.5
#N/A
NR
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
$704
4.5x
3.8x
2.8x
2.2x
na
na
na
Oshkosh (OSK)
Park Ohio Industries (PKOH)

8.125%
Polypore (PPO)
7.500%
Rexnord (REX)
SPX Corp (SPW)
Terex Corp. (TEX)
Tomkins (PINFOR)
#N/A
#N/A
TriMas (TRS)
9.750%
NR
15-Dec-17
B2/B-
$250.0
106.50
7.84%
712bp
15-Dec-15
15-Dec-13
104.88
$161
3.0x
2.9x
3.0x
3.3x
43%
7.0x
$651.7
Sr Nts
NR
15-May-17
B3/B
$275.0
101.00
9.23%
788bp
15-May-15
15-May-13
104.75
na
na
na
na
na
na
na
na
Sr Nts
Hold
31-Jul-13
Ba1/BB+
$150.0
103.50
4.65%
444bp
31-Jul-13
nc
$246
1.7x
0.8x
1.1x
23.8x
12%
14.2x
$3,312.4
Wire Co. (WIREWG)

9.500%
Wabtec (WAB)
6.875%

1. Leverage stats exclude finance arm subsidiary, although Enterprise Value calculations are on a consolidated basis.
nc

01 December 2011
Yilma Abebe
(1-212) 270-3265
Relative Value: Building Materials

Date:
December 1, 2011
Coupon
Ratings
Amount
Moody's
Out.
Description
Rec
Maturity
S&P
($ mn)
Sr Sec Nts
NR
1-Nov-17
B3/B
$730.0
Sr Sub Nts
Hold
1-Dec-15
B2/B+
Sr Sub Nts
NR
15-Nov-18
8.750%
Sr Nts
NR
7.375%
Sr Sub Nts
NR
6.300%
Sr Nts
9.750%
Sr Nts
7.750%
8.375%
Equity
Recent Quotes
Bid
Next Call Data

Price
LTM
EBITDA
Debt/
Net Debt/
Sr. Sec./
EBITDA/
Total Debt/
TEV/
Mkt
EBITDA LTM EBITDA EBITDA
Int. Exp
TEV
LTM EBITDA
Cap
Ytw
Spread
YTW Date
Date
84.63
12.92%
1177bp
1-Nov-17
1-Nov-13
106.84
$108
7.9x
7.9x
1.6x
1.8x
na
na
na
$204.0
99.25
8.22%
751bp
1-Dec-15
1-Dec-12
101.33
$41
5.6x
5.0x
0.4x
2.2x
42%
13.2x
$334.9
B2/BB
$300.0
103.00
6.28%
535bp
15-Nov-16
15-Nov-13
105.25
$102
2.9x
2.2x
0.0x
5.0x
41%
7.2x
$510.6
1-Sep-20
B2/B+
$225.0
106.13
7.57%
624bp
1-Sep-18
1-Sep-15
104.38
$106
6.5x
6.1x
0.5x
1.5x
62%
10.5x
$459.0
1-Jun-17
Caa2/CCC+
$420.0
87.63
10.39%
934bp
1-Jun-17
nc
nc
$106
6.5x
6.1x
0.5x
1.5x
62%
10.5x
$459.0
NR
15-Nov-16
Caa2/B-
$500.0
75.75
13.12%
1218bp
15-Nov-16
nc
nc
NM
NM
NM
NM
NM
88%
NM
$1,045.5
NR
1-Aug-14
B2/BB-
$300.0
100.00
9.74%
934bp
1-Aug-14
nc
nc
NM
NM
NM
NM
NM
88%
NM
$1,045.5
Sr Nts
NR
15-Jan-18
Caa2/B-
$500.0
81.25
12.18%
1099bp
15-Jan-18
nc
nc
NM
NM
NM
NM
NM
88%
NM
$1,045.5
Sr Nts
NR
15-Oct-18
B2/BB-
$350.0
88.25
10.84%
948bp
15-Oct-18
15-Oct-14
104.19
NM
NM
NM
NM
NM
88%
NM
$1,045.5
Associated Materials (SIDE)

9.125%
Gibraltar (ROCK)
8.000%
Interline Brands (IBI)
7.000%
Mueller Water (MWA)
USG Corp (USG)

01 December 2011
Yilma Abebe
(1-212) 270-3265
Bond universe: alphabetical list

High-yield Industrials universe by alphabetical listing
November 30, 2011
Price
Issuer
Rec rating
Description
Coupon
Maturity
Outstanding
Moody's
S&P
30-Nov-11
YTW
STW
YTW Date
Actuant
NR
Sr Nts
6.875%
15-Jun-17
250
Ba3
BB-
101.00
101.50
(0.50)
6.55%
595bp
15-Jun-15
6.66%
0.02%
ADS Tactical
NR
Sr Sec Nts
11.000%
1-Apr-18
275
B3
97.50
98.50
(1.00)
11.56%
1,035bp
1-Apr-18
11.56%
0.03%
5.05%
AGY Holding Corp
NR
11.000%
15-Nov-14
172
Caa3
CCC+
62.50
63.00
(0.50)
31.37%
3,090bp
15-Nov-14
31.37%
0.05%
-19.45%
NR
Sr Nts
10.250%
1-Feb-15
245
Caa2
CCC-
59.50
60.00
(0.50)
31.27%
3,076bp
1-Feb-15
31.27%
0.05%
-11.15%
NR
12.000%
1-Nov-14
320
B2
B-
90.50
92.00
(1.50)
13.94%
1,348bp
1-Nov-14
13.94%
-0.55%
-0.79%
Alliant Techsystems
NR
Sr Sub Nts
6.750%
1-Apr-16
400
Ba3
BB-
101.00
101.75
(0.75)
6.28%
595bp
1-Apr-14
6.48%
-0.71%
3.33%
Alliant Techsystems
NR
Sr Sub Nts
6.875%
15-Sep-20
350
Ba3
BB-
101.50
101.75
(0.25)
6.59%
528bp
15-Sep-18
6.64%
0.26%
4.64%
NR
Sr Nts
11.000%
1-Nov-15
438
Caa1
CCC+
104.50
103.00
1.50
8.40%
815bp
1-Nov-13
9.59%
0.51%
4.95%
NR
Sr Nts
7.125%
15-May-19
500
Caa1
CCC+
94.00
94.00
8.22%
676bp
15-May-19
8.22%
0.02%
-1.92%
Altra Holdings
NR
Sr Sec Nts
8.125%
1-Dec-16
210
B1
BB-
104.00
103.75
0.25
6.96%
626bp
1-Dec-15
7.16%
0.02%
5.04%
American Railcar Industries
NR
Sr Nts
7.500%
1-Mar-14
275
Caa1
B+
99.75
99.75
7.61%
730bp
1-Mar-14
7.61%
0.27%
4.62%
AMSTED Industries
NR
Sr Nts
8.125%
15-Mar-18
500
B1
BB-
104.50
104.00
0.50
6.89%
612bp
15-Mar-16
7.22%
0.97%
5.30%
Anixter
NR
Sr Nts
5.950%
1-Mar-15
200
Ba2
BB
99.50
99.50
6.12%
558bp
1-Mar-15
6.12%
0.02%
Anixter
NR
Sr Nts
10.000%
15-Mar-14
30
Ba2
BB
113.75
114.00
(0.25)
3.67%
335bp
15-Mar-14
3.67%
0.02%
6.87%
Aquilex Holdings
NR
Sr Nts
11.125%
15-Dec-16
225
48.00
49.00
(1.00)
32.94%
3,201bp
15-Dec-16
32.94%
-1.33%
-42.35%
AS Americas
NR
10.750%
15-Jan-16
188
Caa1
67.00
70.00
(3.00)
23.71%
2,298bp
15-Jan-16
23.71%
-0.66%
-23.65%
Associated Materials
NR
Sr Sec Nts
9.125%
1-Nov-17
730
B3
84.50
85.25
(0.75)
12.95%
1,183bp
1-Nov-17
12.95%
-0.55%
-10.98%
BE Aerospace
Hold
Sr Nts
8.500%
1-Jul-18
600
Ba2
BB
107.00
107.50
(0.50)
6.37%
617bp
1-Jul-13
7.15%
-0.09%
4.77%
BE Aerospace
Hold
Sr Nts
6.875%
1-Oct-20
650
Ba2
BB
106.00
106.25
(0.25)
5.80%
448bp
1-Oct-18
5.99%
0.25%
8.54%
Belden
NR
Sr Sub Nts
9.250%
15-Jun-19
200
Ba2
B+
105.00
105.88
(0.88)
8.11%
707bp
15-Jun-17
8.34%
-0.43%
3.43%
Belden CDT
NR
Sr Sub Nts
7.000%
15-Mar-17
350
Ba2
B+
99.50
100.50
(1.00)
7.11%
612bp
15-Mar-17
7.11%
-0.47%
4.46%
Bombardier
NR
Sr Nts
6.750%
1-May-12
151
Ba2
BB+
100.75
100.75
4.87%
483bp
1-May-12
4.87%
0.02%
2.74%
Bombardier
NR
Sr Nts
6.300%
1-May-14
162
Ba2
BB+
104.75
105.00
(0.25)
4.21%
386bp
1-May-14
4.21%
0.02%
5.91%
Bombardier
NR
Sr Nts
7.250%
15-Nov-16
785
Ba2
BB+
103.00
104.00
(1.00)
6.12%
546bp
15-Nov-14
6.53%
-0.70%
3.84%
Bombardier
NR
Sr Nts
7.450%
1-May-34
250
Ba2
BB+
98.75
99.00
(0.25)
7.57%
497bp
1-May-34
7.57%
0.02%
7.57%
Bombardier
NR
Sr Nts
6.125%
15-May-21
780
Ba2
BB+
93.50
95.00
(1.50)
7.08%
484bp
15-May-21
7.08%
-0.51%
2.37%
Bombardier
NR
Sr Nts
7.750%
15-Mar-20
850
Ba2
BB+
107.00
108.50
(1.50)
6.64%
500bp
15-Mar-20
6.64%
-0.89%
5.72%
Bombardier
NR
Sr Nts
7.500%
15-Mar-18
650
Ba2
BB+
106.25
107.00
(0.75)
6.28%
508bp
15-Mar-18
6.28%
0.02%
5.31%
Briggs & Stratton
NR
Sr Nts
6.875%
15-Dec-20
225
Ba3
BB
101.00
101.00
6.72%
493bp
15-Dec-20
6.72%
0.02%
5.13%
Building Materials
NR
Sr Nts
7.500%
15-Mar-20
325
Ba3
BB+
103.75
103.75
6.75%
555bp
15-Mar-18
6.90%
-0.22%
8.47%
Building Materials
NR
Sr Nts
6.875%
15-Aug-18
450
Ba3
BB+
100.00
101.75
(1.75)
6.87%
601bp
15-Aug-16
6.87%
-0.95%
7.13%
Building Materials
NR
7.000%
15-Feb-20
250
Ba1
BB+
103.38
103.25
0.13
6.33%
514bp
15-Feb-18
6.46%
0.14%
6.63%
Building Materials
NR
Sr Nts
6.750%
1-May-21
1,010
Ba3
BB+
99.50
100.13
(0.63)
6.82%
495bp
1-May-21
6.82%
0.02%
4.43%
Case
Buy
Sr Nts
7.250%
15-Jan-16
254
Ba2
BB+
106.00
106.00
5.60%
487bp
15-Jan-16
5.60%
0.02%
4.12%
Case New Holland
Buy
Sr Nts
7.875%
1-Dec-17
1,500
Ba2
BB+
108.75
109.00
(0.25)
6.11%
497bp
1-Dec-17
6.11%
0.25%
6.05%
Case New Holland
Buy
Sr Nts
7.750%
1-Sep-13
1,000
Ba2
BB+
105.00
105.50
(0.50)
4.73%
451bp
1-Sep-13
4.73%
0.02%
4.12%
Cleaver-Brooks
NR
12.250%
1-May-16
185
B2
99.00
99.00
12.54%
1,175bp
1-May-16
12.54%
0.03%
3.70%
CNH Capital Inc
NR
Sr Nts
6.250%
1-Nov-16
500
Ba2
BB
99.75
100.50
(0.75)
6.31%
540bp
1-Nov-16
6.31%
-0.23%
0.24%
Coleman Cable
NR
Sr Nts
9.000%
15-Feb-18
275
B3
99.75
100.00
(0.25)
9.05%
786bp
15-Feb-18
9.05%
-0.22%
4.14%
Colt Defense
NR
Sr Nts
8.750%
15-Nov-17
250
Caa1
B-
73.50
74.50
(1.00)
15.77%
1,464bp
15-Nov-17
15.77%
0.03%
9.91%
Columbus McKinnon
NR
Sr Sub Nts
7.875%
1-Feb-19
150
B1
B+
101.00
102.50
(1.50)
7.63%
667bp
1-Feb-17
7.69%
0.02%
9.31%
Commercial Vehicle
NR
Sr Sec Nts
7.875%
15-Apr-19
250
B2
B-
95.00
96.50
(1.50)
8.81%
737bp
15-Apr-19
8.81%
0.02%
-0.27%
CPI International Acquisition
NR
Sr Nts
8.000%
15-Feb-18
215
B3
CCC+
85.00
85.00
11.44%
1,025bp
15-Feb-18
11.44%
0.03%
-8.53%
CPM Holdings
NR
Sr Sec Nts
10.625%
1-Sep-14
200
B2
B+
106.38
106.50
(0.13)
6.69%
647bp
1-Sep-13
7.98%
-0.09%
8.16%
DAE Aviation
NR
Sr Nts
11.250%
1-Aug-15
325
Caa2
CCC
104.00
105.00
(1.00)
8.60%
839bp
1-Aug-13
9.91%
0.03%
9.90%
Ducommun Inc
NR
Sr Nts
9.750%
15-Jul-18
200
B3
B-
103.25
103.25
8.99%
794bp
15-Jul-17
9.08%
0.03%
7.42%
Dynacast International
NR
9.250%
15-Jul-19
350
B2
93.25
93.25
10.56%
907bp
15-Jul-19
10.56%
0.03%
-3.33%
DynCorp
NR
Sr Nts
10.375%
1-Jul-17
455
B2
B-
87.00
88.00
(1.00)
13.78%
1,273bp
1-Jul-17
13.78%
0.03%
-5.92%
Esterline Technologies
Hold
Sr Nts
6.625%
1-Mar-17
174
Ba3
BB
102.00
102.50
(0.50)
5.93%
540bp
1-Mar-15
6.17%
0.02%
6.80%
NR
Sr Nts
7.000%
1-Aug-20
250
Ba3
BB
104.00
105.38
(1.38)
6.25%
497bp
1-Aug-18
6.39%
-0.91%
6.95%
Fleetpride Corp
NR
Sr Nts
11.500%
1-Oct-14
150
B3
B-
102.88
102.88
7.83%
773bp
1-Oct-12
10.29%
0.03%
18.10%
GenCorp
NR
Sr Sub Nts
9.500%
15-Aug-13
75
Ba3
CCC+
100.00
100.00
9.48%
927bp
15-Aug-13
9.48%
0.03%
5.78%
General Cable
Hold
Sr Nts
7.125%
1-Apr-17
200
Ba3
B+
99.25
102.00
(2.75)
7.29%
630bp
1-Apr-17
7.29%
-2.65%
2.60%
Gibraltar Industries Inc
Hold
Sr Sub Nts
8.000%
1-Dec-15
204
B2
B+
99.00
99.00
8.30%
760bp
1-Dec-15
8.30%
0.02%
5.44%
Griffon Corporation
NR
Sr Nts
7.125%
1-Apr-18
550
Ba3
BB-
96.00
95.00
1.00
7.94%
673bp
1-Apr-18
7.94%
0.02%
1.05%
Hawker Beechcraft
NR
Sr Nts
8.500%
1-Apr-15
183
Ca
CCC-
25.00
25.00
67.61%
6,706bp
1-Apr-15
67.61%
0.09%
-54.30%
Source: J.P. Morgan, Company Reports, and Rating Agencies.
10
23-Nov-11 W/W Change
YTM Weekly Total Return YTD Total Return

4.87%
4.68%

01 December 2011
Yilma Abebe
(1-212) 270-3265
November 30, 2011
Price
Issuer
Rec rating
Description
Coupon
Maturity
Outstanding
Moody's
S&P
30-Nov-11
YTW
STW
YTW Date
Hawker Beechcraft
NR
Sr Sub Nts
9.750%
1-Apr-17
145
Ca
CCC-
15.50

15.50
75.89%
7,489bp
1-Apr-17
75.89%
0.16%
-54.62%
Hawker Beechcraft
NR
Sr Toggle Nts
8.875%
1-Apr-15
303
Ca
CCC-
25.00
25.00
68.61%
6,805bp
1-Apr-15
68.61%
0.09%
-54.68%
Hexcel
NR
Sr Sub Nts
6.750%
1-Feb-15
75
B1
BB+
101.38
101.38
5.04%
504bp
1-Feb-12
6.26%
0.02%
5.25%
Hillman Group
NR
Guar Nts
10.875%
1-Jun-18
200
B3
CCC+
101.00
101.00
10.59%
977bp
1-Jun-16
10.66%
0.03%
1.02%
Hillman Group
NR
Sr Nts
10.875%
1-Jun-18
50
B3
CCC+
101.00
101.00
10.59%
977bp
1-Jun-16
10.66%
0.03%
2.43%
Huntington Ingalls Industries
Buy
Sr Nts
6.875%
15-Mar-18
600
Ba3
B+
98.00
99.25
(1.25)
7.27%
607bp
15-Mar-18
7.27%
0.02%
2.99%
Buy
Sr Nts
7.125%
15-Mar-21
600
Ba3
B+
98.00
99.25
(1.25)
7.42%
558bp
15-Mar-21
7.42%
0.02%
3.17%
Interface
NR
Sr Nts
7.625%
1-Dec-18
275
B2
BB
103.00
103.50
(0.50)
6.90%
598bp
1-Dec-16
7.07%
0.02%
6.43%
Interline Brands
NR
Sr Sub Nts
7.000%
15-Nov-18
300
B2
BB
103.00
103.25
(0.25)
6.28%
537bp
15-Nov-16
6.46%
0.02%
7.67%
International Wire Group
NR
9.750%
15-Apr-15
117
B3
101.50
101.38
0.13
9.14%
869bp
15-Oct-14
9.21%
0.03%
5.49%
J.B. Poindexter
Buy
Sr Nts
8.750%
15-Mar-14
199
B3
98.94
98.88
0.06
9.26%
895bp
15-Mar-14
9.26%
-0.78%
6.45%
Jeld-Wen
NR
12.250%
15-Oct-17
460
B3
B-
102.50
102.75
(0.25)
11.55%
1,065bp
15-Oct-16
11.64%
0.03%
7.28%
JohnsonDiversey Inc
NR
Sr Nts
8.250%
15-Nov-19
260
B3
124.50
124.50
0.57%
10bp
15-Nov-14
4.54%
0.02%
21.43%
JohnsonDiversey Inc
NR
Sr Toggle Nts
10.500%
15-May-20
175
Caa1
B-
136.50
136.50
1.58%
89bp
15-Nov-15
5.12%
0.02%
26.65%
Kratos Defense & Security Solutions
NR
10.000%
1-Jun-17
625
B3
B+
101.25
101.50
(0.25)
9.65%
884bp
1-Jun-16
9.70%
0.03%
-0.37%
L-3 Communications
NR
Sr Sub Nts
6.375%
15-Oct-15
1,000
Ba1
BB+
102.13
102.00
0.13
5.05%
495bp
15-Oct-12
5.75%
0.02%
4.71%
Manitowoc
NR
Sr Nts
7.125%
1-Nov-13
150
B3
B+
100.00
100.00
7.12%
688bp
1-Nov-13
7.12%
0.02%
5.48%
Manitowoc
NR
Sr Nts
8.500%
1-Nov-20
600
B3
B+
102.00
101.50
0.50
8.11%
678bp
1-Nov-18
8.18%
-0.22%
3.22%
Manitowoc
NR
Sr Nts
9.500%
15-Feb-18
400
B3
B+
103.25
103.00
0.25
8.56%
781bp
15-Feb-16
8.80%
0.02%
2.11%
ManTech International
NR
Sr Nts
7.250%
15-Apr-18
200
Ba2
BB+
101.75
103.00
(1.25)
6.78%
599bp
15-Apr-16
6.90%
0.02%
3.62%
Masonite Corp.
NR
Sr Nts
8.250%
15-Apr-21
275
B3
B+
93.75
93.25
0.50
9.26%
740bp
15-Apr-21
9.26%
0.02%
-1.05%
Mohawk Industries
NR
Sr Nts
7.200%
15-Apr-12
336
Ba2
BB+
101.75
101.50
0.25
2.40%
236bp
15-Apr-12
2.40%
0.02%
2.13%
Mohawk Industries
NR
Sr Nts
6.125%
15-Jan-16
900
Ba2
BB+
106.75
107.38
(0.63)
4.32%
359bp
15-Jan-16
4.32%
0.02%
4.60%
Moog
NR
Sr Sub Nts
6.250%
15-Jan-15
187
Ba3
B+
100.50
100.50
5.77%
564bp
15-Jan-13
6.07%
0.02%
4.98%
Moog
NR
Sr Sub Nts
7.250%
15-Jun-18
192
Ba3
B+
101.75
102.25
(0.50)
6.79%
597bp
15-Jun-16
6.91%
0.02%
3.66%
NR
Sr Sub Nts
7.375%
1-Jun-17
420
Caa2
CCC+
87.00
88.00
(1.00)
10.55%
952bp
1-Jun-17
10.55%
0.02%
-2.88%
NR
Sr Nts
8.750%
1-Sep-20
225
B2
B+
106.00
105.50
0.50
7.59%
629bp
1-Sep-18
7.79%
0.25%
3.04%
Navistar International
NR
Sr Nts
8.250%
1-Nov-21
900
B1
BB-
103.00
104.13
(1.13)
7.61%
648bp
1-Nov-17
7.81%
0.02%
2.75%
New Enterprise Stone & Lime
NR
Sr Nts
11.000%
1-Sep-18
250
Caa2
B-
79.25
80.00
(0.75)
16.15%
1,484bp
1-Sep-18
16.15%
0.04%
-5.80%
Norcraft Companies/Finance
NR
10.500%
15-Dec-15
240
B3
93.50
94.00
(0.50)
12.60%
1,189bp
15-Dec-15
12.60%
0.03%
-3.00%
Nortek
NR
Sr Nts
10.000%
1-Dec-18
250
Caa1
92.50
92.50
11.59%
1,024bp
1-Dec-18
11.59%
-0.77%
-1.59%
Nortek
NR
Sr Nts
8.500%
15-Apr-21
500
Caa1
81.25
81.50
(0.25)
11.86%
1,000bp
15-Apr-21
11.86%
-1.47%
-13.65%
Ormat Funding
NR
8.250%
30-Dec-20
132
NR
NR
92.50
92.50
9.50%
770bp
30-Dec-20
9.50%
0.02%
3.48%
Oshkosh Corporation
NR
Sr Nts
8.250%
1-Mar-17
250
B2
BB
100.50
100.50
8.10%
734bp
1-Mar-16
8.13%
0.02%
-0.67%
Oshkosh Corporation
NR
Sr Nts
8.500%
1-Mar-20
250
B2
BB
100.50
100.50
8.39%
720bp
1-Mar-18
8.41%
0.02%
-1.35%
Park-Ohio Industries
NR
Sr Nts
8.125%
1-Apr-21
250
B3
CCC+
97.00
97.50
(0.50)
8.60%
674bp
1-Apr-21
8.60%
-0.48%
2.30%
Pinafore Inc
NR
9.000%
1-Oct-18
1,035
B1
B+
107.00
7.25%
636bp
1-Oct-16
7.66%
0.37%
6.50%
Ply Gem Industries
NR
8.250%
15-Feb-18
800
Caa1
B-
86.00
15-Feb-18
11.46%
-0.54%
-7.39%
Ply Gem Industries
NR
Sr Sub Nts
13.125%
15-Jul-14
150
Caa3
CCC
Polypore
NR
Sr Nts
7.500%
15-Nov-17
365
B3
Rexnord
NR
Sr Sub Nts
11.750%
1-Aug-16
300
Caa2
CCC+
Rexnord
NR
Sr Nts
8.500%
1-May-18
1,145
Caa1
Roofing Supply Group
NR
8.625%
1-Dec-17
225
Sequa
NR
Sr Nts
11.750%
1-Dec-15
Sequa
NR
Sr Nts
13.500%
Spirit Aerosystems
NR
Guar Nts
Spirit Aerosystems
NR
SPX
#N/A
#N/A
87.13
(1.13)
11.46%
1,027bp
95.00
95.50
(0.50)
15.50%
1,510bp
15-Jul-14
15.50%
-1.44%
0.61%
102.25
102.50
(0.25)
6.95%
604bp
15-Nov-16
7.03%
0.51%
6.87%
103.00
103.00
10.42%
1,001bp
1-Aug-14
10.90%
0.26%
5.73%
B-
101.75
103.00
(1.25)
8.02%
722bp
1-May-16
8.14%
0.27%
2.99%
B3
B+
100.50
100.50
8.50%
757bp
1-Dec-16
8.52%
0.52%
5.12%
500
Caa2
CCC
105.75
105.75
8.53%
841bp
1-Dec-12
9.99%
0.03%
8.72%
1-Dec-15
258
Caa2
CCC
106.75
106.75
9.59%
947bp
1-Dec-12
11.37%
0.04%
9.96%
6.750%
15-Dec-20
300
Ba3
BB-
102.25
102.50
(0.25)
6.35%
498bp
15-Dec-18
6.42%
-0.22%
8.04%
Sr Nts
7.500%
1-Oct-17
300
Ba3
BB-
106.00
106.75
(0.75)
5.73%
506bp
1-Oct-15
6.25%
-0.68%
8.32%
NR
Sr Nts
7.625%
15-Dec-14
500
Ba2
BB+
107.00
107.00
5.11%
462bp
15-Dec-14
5.11%
-0.21%
4.74%
SPX
NR
Guar Nts
6.875%
1-Sep-17
600
Ba1
BB+
104.00
104.00
6.04%
495bp
1-Sep-17
6.04%
0.02%
3.67%
Stanadyne Automotive
NR
Sr Sub Nts
10.000%
15-Aug-14
160
Caa1
CCC
90.50
90.50
14.34%
1,393bp
15-Aug-14
14.34%
0.03%
-1.58%
NR
Sr Disc Nts
0.000%/12.000%
15-Feb-15
100
Caa3
CCC-
95.00
95.00
13.97%
1,344bp
15-Feb-15
13.97%
0.03%
11.50%
Terex
NR
Sr Sub Nts
8.000%
15-Nov-17
800
Caa1
96.50
96.50
8.77%
763bp
15-Nov-17
8.77%
-0.49%
2.71%
Terex
NR
Sr Nts
10.875%
1-Jun-16
300
B2
BB-
110.25
110.75
(0.50)
7.05%
687bp
1-Jun-13
8.11%
-0.20%
3.42%
Texas Industries
NR
Sr Nts
9.250%
15-Aug-20
650
Caa2
B-
82.25
84.00
(1.75)
12.67%
1,095bp
15-Aug-20
12.67%
-0.26%
-14.18%
Thermadyne Holdings
NR
9.000%
15-Dec-17
260
B3
B-
100.00
102.00
(2.00)
9.00%
806bp
15-Dec-16
9.00%
-1.86%
4.86%
11

01 December 2011
Yilma Abebe
(1-212) 270-3265
High-yield Industrials universe by alphabetical listing (continued)

November 30, 2011
Price
Issuer
Rec rating
Description
Coupon
Maturity
Outstanding
Moody's
S&P
30-Nov-11
YTW
STW
YTW Date
Thermon Industries
NR
9.500%
1-May-17
139
B1
B+
104.00
104.50
(0.50)
8.39%
760bp
1-May-16
8.56%
0.03%
5.67%
Titan International
NR
7.875%
1-Oct-17
200
B1
B+
103.88
104.00
(0.13)
6.91%
602bp
1-Oct-16
7.05%
0.02%
5.14%
Transdigm
NR
Sr Sub Nts
7.750%
15-Dec-18
1,600
B3
B-
102.00
102.00
7.33%
618bp
15-Dec-17
7.38%
-0.22%
5.33%
Trimas Corp
NR
9.750%
15-Dec-17
250
B2
B-
106.50
107.00
(0.50)
7.84%
713bp
15-Dec-15
8.36%
0.02%
5.32%
Triumph Group
NR
Sr Nts
8.625%
15-Jul-18
350
Ba3
B+
109.00
109.25
(0.25)
6.34%
572bp
15-Jul-15
6.91%
0.02%
6.66%
Triumph Group
NR
Sr Sub Nts
8.000%
15-Nov-17
175
B1
B+
106.50
106.00
0.50
6.12%
543bp
15-Nov-15
6.66%
0.02%
9.29%
Tutor Perini
NR
Guar Nts
7.625%
1-Nov-18
300
Ba3
BB-
92.50
92.25
0.25
9.11%
777bp
1-Nov-18
9.11%
0.29%
-1.05%
USG
NR
Sr Nts
7.750%
15-Jan-18
500
Caa2
B-
82.00
82.50
(0.50)
11.98%
1,081bp
15-Jan-18
11.98%
-2.28%
-7.90%
USG
NR
Sr Nts
6.300%
15-Nov-16
500
Caa2
B-
75.50
76.00
(0.50)
13.19%
1,227bp
15-Nov-16
13.19%
-1.28%
-7.10%
USG
NR
Sr Nts
8.375%
15-Oct-18
350
B2
BB-
87.25
87.00
0.25
11.07%
974bp
15-Oct-18
11.07%
0.03%
-3.16%
USG
NR
Sr Nts
9.750%
1-Aug-14
300
B2
BB-
99.25
97.50
1.75
10.07%
966bp
1-Aug-14
10.07%
0.03%
2.38%
Vulcan Materials
NR
Sr Nts
10.375%
15-Dec-18
250
Ba2
BB
110.13
110.00
0.13
8.44%
707bp
15-Dec-18
8.44%
0.35%
Vulcan Materials
NR
Sr Nts
10.125%
15-Dec-15
150
Ba2
BB
109.38
109.38
7.39%
668bp
15-Dec-15
7.39%
0.13%
Vulcan Materials
NR
Sr Nts
7.150%
30-Nov-37
250
Ba2
BB
95.50
95.50
7.55%
478bp
30-Nov-37
7.55%
0.02%
Vulcan Materials
NR
Sr Nts
7.000%
15-Jun-18
400
Ba2
BB
95.50
95.25
0.25
7.89%
664bp
15-Jun-18
7.89%
0.02%
Vulcan Materials
NR
Sr Nts
6.400%
30-Nov-17
350
Ba2
BB
93.75
94.25
(0.50)
7.72%
658bp
30-Nov-17
7.72%
0.02%
Vulcan Materials
NR
Sr Nts
6.300%
15-Jun-13
140
Ba2
BB
100.53
100.02
0.51
5.93%
574bp
15-Jun-13
5.93%
0.02%
Vulcan Materials
NR
Sr Nts
5.600%
30-Nov-12
135
Ba2
BB
100.02
100.01
0.01
5.58%
547bp
30-Nov-12
5.58%
0.02%
Vulcan Materials
NR
Sr Nts
6.500%
1-Dec-16
500
Ba2
BB
96.00
96.75
(0.75)
7.47%
655bp
1-Dec-16
7.47%
0.02%
-0.97%
Vulcan Materials
NR
Sr Nts
7.500%
15-Jun-21
600
Ba2
BB
97.00
97.09
(0.09)
7.95%
605bp
15-Jun-21
7.95%
0.02%
0.50%
WESCO Distribution
NR
Sr Sub Nts
7.500%
15-Oct-17
150
B1
101.50
101.75
(0.25)
6.63%
639bp
15-Oct-13
7.18%
0.02%
7.00%
Westinghouse Air Brake
NR
Sr Nts
6.875%
31-Jul-13
150
Ba1
BB+
104.00
104.50
(0.50)
4.35%
414bp
31-Jul-13
4.35%
-0.45%
4.86%
WireCo WorldGroup
NR
Sr Nts
9.500%
15-May-17
425
B2
102.00
102.00
8.81%
823bp
15-May-15
9.03%
0.03%
4.80%
Wyle Services
NR
Sr Sub Nts
10.500%
1-Apr-18
175
Caa2
B-
96.25
96.50
(0.25)
11.34%
1,013bp
1-Apr-18
11.34%
0.03%
8.54%
12

01 December 2011
Yilma Abebe
(1-212) 270-3265
Bond universe: ranked by YTW

High-yield Industrials universe ranked by YTW
November 30, 2011
Price
Weekly
YTW Date Total Return
YTD Total
Return
Issuer
Rec rating
Description
Coupon
Maturity
Outstanding
Moody's
S&P
30-Nov-11
YTW
STW
Hawker Beechcraft
NR
Sr Sub Nts
9.750%
1-Apr-17
145
Ca
CCC-
15.50
75.89%
7,489bp
1-Apr-17
0.16%
-54.62%
Hawker Beechcraft
NR
Sr Toggle Nts
8.875%
1-Apr-15
303
Ca
CCC-
25.00
68.61%
6,805bp
1-Apr-15
0.09%
-54.68%
Hawker Beechcraft
NR
Sr Nts
8.500%
1-Apr-15
183
Ca
CCC-
25.00
67.61%
6,706bp
1-Apr-15
0.09%
-54.30%
Aquilex Holdings
NR
Sr Nts
11.125%
15-Dec-16
225
48.00
32.94%
3,201bp
15-Dec-16
-1.33%
-42.35%
AGY Holding Corp
NR

11.000%
15-Nov-14
172
Caa3
CCC+
62.50
31.37%
3,090bp
15-Nov-14
0.05%
-19.45%
NR
Sr Nts
10.250%
1-Feb-15
245
Caa2
CCC-
59.50
31.27%
3,076bp
1-Feb-15
0.05%
-11.15%
AS Americas
NR
Sr Sec Nts (1st Lien)10.750%
15-Jan-16
188
Caa1
67.00
23.71%
2,298bp
15-Jan-16
-0.66%
-23.65%
NR
Sr Nts
11.000%
1-Sep-18
250
Caa2
B-
79.25
16.15%
1,484bp
1-Sep-18
0.04%
-5.80%
Colt Defense
NR
Sr Nts
8.750%
15-Nov-17
250
Caa1
B-
73.50
15.77%
1,464bp
15-Nov-17
0.03%
9.91%
Ply Gem Industries
NR
Sr Sub Nts
13.125%
15-Jul-14
150
Caa3
CCC
95.00
15.50%
1,510bp
15-Jul-14
-1.44%
0.61%
NR
Sr Sub Nts
10.000%
15-Aug-14
160
Caa1
CCC
90.50
14.34%
1,393bp
15-Aug-14
0.03%
-1.58%
NR
Sr Disc Nts
0.000%/12.000%
15-Feb-15
100
Caa3
CCC-
95.00
13.97%
1,344bp
15-Feb-15
0.03%
11.50%
NR
1-Nov-14
320
B2
B-
90.50
13.94%
1,348bp
1-Nov-14
-0.55%
-0.79%
DynCorp
NR
Sr Nts
10.375%
1-Jul-17
455
B2
B-
87.00
13.78%
1,273bp
1-Jul-17
0.03%
-5.92%
USG
NR
Sr Nts
6.300%
15-Nov-16
500
Caa2
B-
75.50
13.19%
1,227bp
15-Nov-16
-1.28%
-7.10%
NR
Sr Sec Nts
9.125%
1-Nov-17
730
B3
84.50
12.95%
1,183bp
1-Nov-17
-0.55%
-10.98%
Texas Industries
NR
Sr Nts
9.250%
15-Aug-20
650
Caa2
B-
82.25
12.67%
1,095bp
15-Aug-20
-0.26%
-14.18%
NR

10.500%
15-Dec-15
240
B3
93.50
12.60%
1,189bp
15-Dec-15
0.03%
-3.00%
Cleaver-Brooks
NR
1-May-16
185
B2
99.00
12.54%
1,175bp
1-May-16
0.03%
3.70%
USG
NR
Sr Nts
7.750%
15-Jan-18
500
Caa2
B-
82.00
11.98%
1,081bp
15-Jan-18
-2.28%
-7.90%
Nortek
NR
Sr Nts
8.500%
15-Apr-21
500
Caa1
81.25
11.86%
1,000bp
15-Apr-21
-1.47%
-13.65%
Nortek
NR
Sr Nts
10.000%
1-Dec-18
250
Caa1
92.50
11.59%
1,024bp
1-Dec-18
-0.77%
-1.59%
ADS Tactical
NR
Sr Sec Nts
11.000%
1-Apr-18
275
B3
97.50
11.56%
1,035bp
1-Apr-18
0.03%
5.05%
Jeld-Wen
NR

12.250%
15-Oct-17
460
B3
B-
102.50
11.55%
1,065bp
15-Oct-16
0.03%
7.28%
Ply Gem Industries
NR
15-Feb-18
800
Caa1
B-
86.00
11.46%
1,027bp
15-Feb-18
-0.54%
-7.39%
NR
Sr Nts
8.000%
15-Feb-18
215
B3
CCC+
85.00
11.44%
1,025bp
15-Feb-18
0.03%
-8.53%
Wyle Services
NR
Sr Sub Nts
10.500%
1-Apr-18
175
Caa2
B-
96.25
11.34%
1,013bp
1-Apr-18
0.03%
8.54%
USG
NR
Sr Nts
8.375%
15-Oct-18
350
B2
BB-
87.25
11.07%
974bp
15-Oct-18
0.03%
-3.16%
Hillman Group
NR
Guar Nts
10.875%
1-Jun-18
200
B3
CCC+
101.00
10.59%
977bp
1-Jun-16
0.03%
1.02%
Hillman Group
NR
Sr Nts
10.875%
1-Jun-18
50
B3
CCC+
101.00
10.59%
977bp
1-Jun-16
0.03%
2.43%
NR

9.250%
15-Jul-19
350
B2
93.25
10.56%
907bp
15-Jul-19
0.03%
-3.33%
NR
Sr Sub Nts
7.375%
1-Jun-17
420
Caa2
CCC+
87.00
10.55%
952bp
1-Jun-17
0.02%
-2.88%
Rexnord
NR
Sr Sub Nts
11.750%
1-Aug-16
300
Caa2
CCC+
103.00
10.42%
1,001bp
1-Aug-14
0.26%
5.73%
USG
NR
Sr Nts
9.750%
1-Aug-14
300
B2
BB-
99.25
10.07%
966bp
1-Aug-14
0.03%
2.38%
NR
1-Jun-17
625
B3
B+
101.25
9.65%
884bp
1-Jun-16
0.03%
-0.37%
Sequa
NR
Sr Nts
1-Dec-15
258
Caa2
CCC
106.75
9.59%
947bp
1-Dec-12
0.04%
9.96%
Ormat Funding
NR
30-Dec-20
132
NR
NR
92.50
9.50%
770bp
30-Dec-20
0.02%
3.48%
GenCorp
NR
Sr Sub Nts
9.500%
15-Aug-13
75
Ba3
CCC+
100.00
9.48%
927bp
15-Aug-13
0.03%
5.78%
J.B. Poindexter
Buy
Sr Nts
8.750%
15-Mar-14
199
B3
98.94
9.26%
895bp
15-Mar-14
-0.78%
6.45%
Masonite Corp.
NR
Sr Nts
8.250%
15-Apr-21
275
B3
B+
93.75
9.26%
740bp
15-Apr-21
0.02%
-1.05%
NR

9.750%
15-Apr-15
117
B3
101.50
9.14%
869bp
15-Oct-14
0.03%
5.49%
Tutor Perini
NR
Guar Nts
7.625%
1-Nov-18
300
Ba3
BB-
92.50
9.11%
777bp
1-Nov-18
0.29%
-1.05%
Coleman Cable
NR
Sr Nts
9.000%
15-Feb-18
275
B3
99.75
9.05%
786bp
15-Feb-18
-0.22%
4.14%
Thermadyne Holdings
NR
15-Dec-17
260
B3
B-
100.00
9.00%
806bp
15-Dec-16
-1.86%
4.86%
Ducommun Inc
NR
Sr Nts
9.750%
15-Jul-18
200
B3
B-
103.25
8.99%
794bp
15-Jul-17
0.03%
7.42%
WireCo WorldGroup
NR
Sr Nts
9.500%
15-May-17
425
B2
102.00
8.81%
823bp
15-May-15
0.03%
4.80%
Commercial Vehicle
NR
Sr Sec Nts
7.875%
15-Apr-19
250
B2
B-
95.00
8.81%
737bp
15-Apr-19
0.02%
-0.27%
Terex
NR
Sr Sub Nts
8.000%
15-Nov-17
800
Caa1
96.50
8.77%
763bp
15-Nov-17
-0.49%
2.71%
DAE Aviation
NR
Sr Nts
11.250%
1-Aug-15
325
Caa2
CCC
104.00
8.60%
839bp
1-Aug-13
0.03%
9.90%
NR
Sr Nts
8.125%
1-Apr-21
250
B3
CCC+
97.00
8.60%
674bp
1-Apr-21
-0.48%
2.30%
Manitowoc
NR
Sr Nts
9.500%
15-Feb-18
400
B3
B+
103.25
8.56%
781bp
15-Feb-16
0.02%
2.11%
Sequa
NR
Sr Nts
11.750%
1-Dec-15
500
Caa2
CCC
105.75
8.53%
841bp
1-Dec-12
0.03%
8.72%
NR
1-Dec-17
225
B3
B+
100.50
8.50%
757bp
1-Dec-16
0.52%
5.12%
Vulcan Materials
NR
Sr Nts
10.375%
15-Dec-18
250
Ba2
BB
110.13
8.44%
707bp
15-Dec-18
0.35%
NR
Sr Nts
11.000%
1-Nov-15
438
Caa1
CCC+
104.50
8.40%
815bp
1-Nov-13
0.51%
4.95%
Thermon Industries
NR
1-May-17
139
B1
B+
104.00
8.39%
760bp
1-May-16
0.03%
5.67%
13.500%
13

01 December 2011
Yilma Abebe
(1-212) 270-3265
High -yield Industrials universe ranked by YTW (continued)

November 30, 2011
Price
YTD Total
Return
Rec rating
Description
Coupon
Maturity
Moody's
S&P
30-Nov-11
YTW
STW
Oshkosh Corporation
NR
Sr Nts
8.500%
1-Mar-20
250
B2
BB
100.50
8.39%
720bp
1-Mar-18
0.02%
-1.35%

Hold
NR
Sr Sub Nts
Sr Nts
8.000%
7.125%
1-Dec-15
15-May-19
204
500
B2
Caa1
B+
CCC+
99.00
94.00
8.30%
8.22%
760bp
676bp
1-Dec-15
15-May-19
0.02%
0.02%
5.44%
-1.92%
Manitowoc
NR
Sr Nts
8.500%
1-Nov-20
600
B3
B+
102.00
8.11%
678bp
1-Nov-18
-0.22%
3.22%
Belden
NR
Sr Sub Nts
9.250%
15-Jun-19
200
Ba2
B+
105.00
8.11%
707bp
15-Jun-17
-0.43%
3.43%
Oshkosh Corporation
NR
Sr Nts
8.250%
1-Mar-17
250
B2
BB
100.50
8.10%
734bp
1-Mar-16
0.02%
-0.67%
Rexnord
Vulcan Materials
NR
NR
Sr Nts
Sr Nts
8.500%
7.500%
1-May-18
15-Jun-21
1,145
600
Caa1
Ba2
BBB
101.75
97.00
8.02%
7.95%
722bp
605bp
1-May-16
15-Jun-21
0.27%
0.02%
2.99%
0.50%
Griffon Corporation
NR
Sr Nts
7.125%
1-Apr-18
550
Ba3
BB-
96.00
7.94%
673bp
1-Apr-18
0.02%
1.05%
Vulcan Materials
NR
Sr Nts
7.000%
15-Jun-18
400
Ba2
BB
95.50
7.89%
664bp
15-Jun-18
0.02%
Trimas Corp
NR

9.750%
15-Dec-17
250
B2
B-
106.50
7.84%
713bp
15-Dec-15
0.02%
5.32%
Fleetpride Corp
Vulcan Materials
NR
NR
Sr Nts
Sr Nts
11.500%
6.400%
1-Oct-14
30-Nov-17
150
350
B3
Ba2
BBB
102.88
93.75
7.83%
7.72%
773bp
658bp
1-Oct-12
30-Nov-17
0.03%
0.02%
18.10%
Columbus McKinnon
NR
Sr Sub Nts
7.875%
1-Feb-19
150
B1
B+
101.00
7.63%
667bp
1-Feb-17
0.02%
9.31%
NR
Sr Nts
7.500%
1-Mar-14
275
Caa1
B+
99.75
7.61%
730bp
1-Mar-14
0.27%
4.62%
NR
Sr Nts
8.250%
1-Nov-21
900
B1
BB-
103.00
7.61%
648bp
1-Nov-17
0.02%
2.75%

Bombardier
NR
NR
Sr Nts
Sr Nts
8.750%
7.450%
1-Sep-20
1-May-34
225
250
B2
Ba2
B+
BB+
106.00
98.75
7.59%
7.57%
629bp
497bp
1-Sep-18
1-May-34
0.25%
0.02%
3.04%
7.57%
Vulcan Materials
NR
Sr Nts
7.150%
30-Nov-37
250
Ba2
BB
95.50
7.55%
478bp
30-Nov-37
0.02%
Vulcan Materials
NR
Sr Nts
6.500%
1-Dec-16
500
Ba2
BB
96.00
7.47%
655bp
1-Dec-16
0.02%
-0.97%

Vulcan Materials
Buy
NR
Sr Nts
Sr Nts
7.125%
10.125%
15-Mar-21
15-Dec-15
600
150
Ba3
Ba2
B+
BB
98.00
109.38
7.42%
7.39%
558bp
668bp
15-Mar-21
15-Dec-15
0.02%
0.13%
3.17%
Transdigm
NR
Sr Sub Nts
7.750%
15-Dec-18
1,600
B3
B-
102.00
7.33%
618bp
15-Dec-17
-0.22%
5.33%
General Cable
Hold
Sr Nts
7.125%
1-Apr-17
200
Ba3
B+
99.25
7.29%
630bp
1-Apr-17
-2.65%
2.60%
Buy
Sr Nts
6.875%
15-Mar-18
600
Ba3
B+
98.00
7.27%
607bp
15-Mar-18
0.02%
2.99%
Pinafore Inc
Manitowoc
NR
NR

9.000%
Sr Nts
7.125%
1-Oct-18
1-Nov-13
1,035
150
B1
B3
B+
B+
107.00
100.00
7.25%
7.12%
636bp
688bp
1-Oct-16
1-Nov-13
0.37%
0.02%
6.50%
5.48%
Belden CDT
NR
Sr Sub Nts
7.000%
15-Mar-17
350
Ba2
B+
99.50
7.11%
612bp
15-Mar-17
-0.47%
4.46%
Bombardier
NR
Sr Nts
6.125%
15-May-21
780
Ba2
BB+
93.50
7.08%
484bp
15-May-21
-0.51%
2.37%
Terex
NR
Sr Nts
10.875%
1-Jun-16
300
B2
BB-
110.25
7.05%
687bp
1-Jun-13
-0.20%
3.42%
Altra Holdings
Polypore
NR
NR
Sr Sec Nts
Sr Nts
8.125%
7.500%
1-Dec-16
15-Nov-17
210
365
B1
B3
BBB
104.00
102.25
6.96%
6.95%
626bp
604bp
1-Dec-15
15-Nov-16
0.02%
0.51%
5.04%
6.87%
Titan International
NR
1-Oct-17
200
B1
B+
103.88
6.91%
602bp
1-Oct-16
0.02%
5.14%
Interface
NR
Sr Nts
7.625%
1-Dec-18
275
B2
BB
103.00
6.90%
598bp
1-Dec-16
0.02%
6.43%
AMSTED Industries
NR
Sr Nts
8.125%
15-Mar-18
500
B1
BB-
104.50
6.89%
612bp
15-Mar-16
0.97%
5.30%
Building Materials
Building Materials
NR
NR
Sr Nts
Sr Nts
6.875%
6.750%
15-Aug-18
1-May-21
450
1,010
Ba3
Ba3
BB+
BB+
100.00
99.50
6.87%
6.82%
601bp
495bp
15-Aug-16
1-May-21
-0.95%
0.02%
7.13%
4.43%
Moog
NR
Sr Sub Nts
7.250%
15-Jun-18
192
Ba3
B+
101.75
6.79%
597bp
15-Jun-16
0.02%
3.66%
NR
Sr Nts
7.250%
15-Apr-18
200
Ba2
BB+
101.75
6.78%
599bp
15-Apr-16
0.02%
3.62%
Building Materials
NR
Sr Nts
7.500%
15-Mar-20
325
Ba3
BB+
103.75
6.75%
555bp
15-Mar-18
-0.22%
8.47%
Briggs & Stratton

CPM Holdings
NR
NR
Sr Nts
Sr Sec Nts
6.875%
10.625%
15-Dec-20
1-Sep-14
225
200
Ba3
B2
BB
B+
101.00
106.38
6.72%
6.69%
493bp
647bp
15-Dec-20
1-Sep-13
0.02%
-0.09%
5.13%
8.16%
Bombardier
NR
Sr Nts
7.750%
15-Mar-20
850
Ba2
BB+
107.00
6.64%
500bp
15-Mar-20
-0.89%
5.72%
WESCO Distribution
Alliant Techsystems
NR
NR
Sr Sub Nts
Sr Sub Nts
7.500%
6.875%
15-Oct-17
15-Sep-20
150
350
B1
Ba3
B
BB-
101.50
101.50
6.63%
6.59%
639bp
528bp
15-Oct-13
15-Sep-18
0.02%
0.26%
7.00%
4.64%
Actuant
NR
Sr Nts
6.875%
15-Jun-17
250
Ba3
BB-
101.00
6.55%
595bp
15-Jun-15
0.02%
4.87%
BE Aerospace
Hold
Sr Nts
8.500%
1-Jul-18
600
Ba2
BB
107.00
6.37%
617bp
1-Jul-13
-0.09%
4.77%
Spirit Aerosystems
Triumph Group
NR
NR
Guar Nts
Sr Nts
6.750%
8.625%
15-Dec-20
15-Jul-18
300
350
Ba3
Ba3
BBB+
102.25
109.00
6.35%
6.34%
498bp
572bp
15-Dec-18
15-Jul-15
-0.22%
0.02%
8.04%
6.66%
Building Materials
NR
15-Feb-20
250
Ba1
BB+
103.38
6.33%
514bp
15-Feb-18
0.14%
6.63%
CNH Capital Inc
NR
Sr Nts
6.250%
1-Nov-16
500
Ba2
BB
99.75
6.31%
540bp
1-Nov-16
-0.23%
0.24%
Interline Brands
NR
Sr Sub Nts
7.000%
15-Nov-18
300
B2
BB
103.00
6.28%
537bp
15-Nov-16
0.02%
7.67%
Bombardier
Alliant Techsystems
NR
NR
Sr Nts
Sr Sub Nts
7.500%
6.750%
15-Mar-18
1-Apr-16
650
400
Ba2
Ba3
BB+
BB-
106.25
101.00
6.28%
6.28%
508bp
595bp
15-Mar-18
1-Apr-14
0.02%
-0.71%
5.31%
3.33%
NR
Sr Nts
7.000%
1-Aug-20
250
Ba3
BB
104.00
6.25%
497bp
1-Aug-18
-0.91%
6.95%
Bombardier
NR
Sr Nts
7.250%
15-Nov-16
785
Ba2
BB+
103.00
6.12%
546bp
15-Nov-14
-0.70%
3.84%
14
Outstanding
Weekly
Issuer

01 December 2011
Yilma Abebe
(1-212) 270-3265
High -yield Industrials universe ranked by YTW (continued)

January 0, 1900
Price
Issuer
Rec rating
Description
Coupon
Maturity
Outstanding
Triumph Group
NR
Sr Sub Nts
8.000%
15-Nov-17
175
Anixter
NR
Sr Nts
5.950%
1-Mar-15
200
Case New Holland
Buy
Sr Nts
7.875%
1-Dec-17
1,500
SPX
NR
Guar Nts
6.875%
1-Sep-17
Hold
Sr Nts
6.625%
Vulcan Materials
NR
Sr Nts
6.300%
BE Aerospace
Hold
Sr Nts
Moog
Spirit Aerosystems
NR
NR
Sr Sub Nts
Sr Nts
Case
Buy
Sr Nts
Vulcan Materials
NR
Sr Nts
SPX
NR
L-3 Communications
NR
Hexcel
Moody's
Weekly
YTD Total
Return
S&P
30-Nov-11
YTW
STW
B1
B+
106.50
6.12%
543bp
15-Nov-15
0.02%
9.29%
Ba2
BB
99.50
6.12%
558bp
1-Mar-15
0.02%
4.68%
Ba2
BB+
108.75
6.11%
497bp
1-Dec-17
0.25%
6.05%
600
Ba1
BB+
104.00
6.04%
495bp
1-Sep-17
0.02%
3.67%
1-Mar-17
174
Ba3
BB
102.00
5.93%
540bp
1-Mar-15
0.02%
6.80%
15-Jun-13
140
Ba2
BB
100.53
5.93%
574bp
15-Jun-13
0.02%
6.875%
1-Oct-20
650
Ba2
BB
106.00
5.80%
448bp
1-Oct-18
0.25%
8.54%
6.250%
7.500%
15-Jan-15
1-Oct-17
187
300
Ba3
Ba3
B+
BB-
100.50
106.00
5.77%
5.73%
564bp
506bp
15-Jan-13
1-Oct-15
0.02%
-0.68%
4.98%
8.32%
7.250%
15-Jan-16
254
Ba2
BB+
106.00
5.60%
487bp
15-Jan-16
0.02%
4.12%
5.600%
30-Nov-12
135
Ba2
BB
100.02
5.58%
547bp
30-Nov-12
0.02%
Sr Nts
7.625%
15-Dec-14
500
Ba2
BB+
107.00
5.11%
462bp
15-Dec-14
-0.21%
4.74%
Sr Sub Nts
6.375%
15-Oct-15
1,000
Ba1
BB+
102.13
5.05%
495bp
15-Oct-12
0.02%
4.71%
NR
Sr Sub Nts
6.750%
1-Feb-15
75
B1
BB+
101.38
5.04%
504bp
1-Feb-12
0.02%
5.25%
Bombardier
NR
Sr Nts
6.750%
1-May-12
151
Ba2
BB+
100.75
4.87%
483bp
1-May-12
0.02%
2.74%
Case New Holland
Buy
Sr Nts
7.750%
1-Sep-13
1,000
Ba2
BB+
105.00
4.73%
451bp
1-Sep-13
0.02%
4.12%
NR
Sr Nts
6.875%
31-Jul-13
150
Ba1
BB+
104.00
4.35%
414bp
31-Jul-13
-0.45%
4.86%
Mohawk Industries
NR
Sr Nts
6.125%
15-Jan-16
900
Ba2
BB+
106.75
4.32%
359bp
15-Jan-16
0.02%
4.60%
Bombardier
NR
Sr Nts
6.300%
1-May-14
162
Ba2
BB+
104.75
4.21%
386bp
1-May-14
0.02%
5.91%
Anixter
NR
Sr Nts
10.000%
15-Mar-14
30
Ba2
BB
113.75
3.67%
335bp
15-Mar-14
0.02%
6.87%
Mohawk Industries
JohnsonDiversey Inc
NR
NR
Sr Nts
Sr Toggle Nts
7.200%
10.500%
15-Apr-12
15-May-20
336
175
Ba2
Caa1
BB+
B-
101.75
136.50
2.40%
1.58%
236bp
89bp
15-Apr-12
15-Nov-15
0.02%
0.02%
2.13%
26.65%
JohnsonDiversey Inc
NR
Sr Nts
8.250%
15-Nov-19
260
B3
124.50
0.57%
10bp
15-Nov-14
0.02%
21.43%
15

01 December 2011
Yilma Abebe
(1-212) 270-3265
Bond universe: ranked by YTD Total Return

High-yield Industrials universe ranked by YTD Total Return
November 30, 2011
Price
Issuer
Rec rating
Description
Coupon
Maturity
Outstanding
Moody's
S&P
30-Nov-11
YTW
STW
Weekly
JohnsonDiversey Inc
NR
Sr Toggle Nts
10.500%
15-May-20
175
Caa1
B-
136.50
1.58%
89bp
15-Nov-15
0.02%
26.65%
JohnsonDiversey Inc
NR
Sr Nts
8.250%
15-Nov-19
260
B3
124.50
0.57%
10bp
15-Nov-14
0.02%
21.43%
Fleetpride Corp
NR
Sr Nts
11.500%
1-Oct-14
150
B3
B-
102.88
7.83%
773bp
1-Oct-12
0.03%
18.10%
NR
Sr Disc Nts
0.000%/12.000%
15-Feb-15
100
Caa3
CCC-
95.00
13.97%
1,344bp
15-Feb-15
0.03%
11.50%
Sequa
NR
Sr Nts
13.500%
1-Dec-15
258
Caa2
CCC
106.75
9.59%
947bp
1-Dec-12
0.04%
9.96%
Colt Defense
NR
Sr Nts
8.750%
15-Nov-17
250
Caa1
B-
73.50
15.77%
1,464bp
15-Nov-17
0.03%
9.91%
DAE Aviation
NR
Sr Nts
11.250%
1-Aug-15
325
Caa2
CCC
104.00
8.60%
839bp
1-Aug-13
0.03%
9.90%
Columbus McKinnon
NR
Sr Sub Nts
7.875%
1-Feb-19
150
B1
B+
101.00
7.63%
667bp
1-Feb-17
0.02%
9.31%
Triumph Group
NR
Sr Sub Nts
8.000%
15-Nov-17
175
B1
B+
106.50
6.12%
543bp
15-Nov-15
0.02%
9.29%
Sequa
NR
Sr Nts
11.750%
1-Dec-15
500
Caa2
CCC
105.75
8.53%
841bp
1-Dec-12
0.03%
8.72%
Wyle Services
NR
Sr Sub Nts
10.500%
1-Apr-18
175
Caa2
B-
96.25
11.34%
1,013bp
1-Apr-18
0.03%
8.54%
BE Aerospace
Hold
Sr Nts
6.875%
1-Oct-20
650
Ba2
BB
106.00
5.80%
448bp
1-Oct-18
0.25%
8.54%
Building Materials
NR
Sr Nts
7.500%
15-Mar-20
325
Ba3
BB+
103.75
6.75%
555bp
15-Mar-18
-0.22%
8.47%
Spirit Aerosystems
NR
Sr Nts
7.500%
1-Oct-17
300
Ba3
BB-
106.00
5.73%
506bp
1-Oct-15
-0.68%
8.32%
CPM Holdings
NR
Sr Sec Nts
10.625%
1-Sep-14
200
B2
B+
106.38
6.69%
647bp
1-Sep-13
-0.09%
8.16%
Spirit Aerosystems
NR
Guar Nts
6.750%
15-Dec-20
300
Ba3
BB-
102.25
6.35%
498bp
15-Dec-18
-0.22%
8.04%
Interline Brands
NR
Sr Sub Nts
7.000%
15-Nov-18
300
B2
BB
103.00
6.28%
537bp
15-Nov-16
0.02%
7.67%
Bombardier
NR
Sr Nts
7.450%
1-May-34
250
Ba2
BB+
98.75
7.57%
497bp
1-May-34
0.02%
7.57%
Ducommun Inc
NR
Sr Nts
9.750%
15-Jul-18
200
B3
B-
103.25
8.99%
794bp
15-Jul-17
0.03%
7.42%
Jeld-Wen
NR
Sr Sec Nts (2nd Lien)12.250%
15-Oct-17
460
B3
B-
102.50
11.55%
1,065bp
15-Oct-16
0.03%
7.28%
Building Materials
NR
Sr Nts
6.875%
15-Aug-18
450
Ba3
BB+
100.00
6.87%
601bp
15-Aug-16
-0.95%
7.13%
WESCO Distribution
NR
Sr Sub Nts
7.500%
15-Oct-17
150
B1
101.50
6.63%
639bp
15-Oct-13
0.02%
7.00%
NR
Sr Nts
7.000%
1-Aug-20
250
Ba3
BB
104.00
6.25%
497bp
1-Aug-18
-0.91%
6.95%
Polypore
NR
Sr Nts
7.500%
15-Nov-17
365
B3
102.25
6.95%
604bp
15-Nov-16
0.51%
6.87%
Anixter
NR
Sr Nts
10.000%
15-Mar-14
30
Ba2
BB
113.75
3.67%
335bp
15-Mar-14
0.02%
6.87%
Hold
Sr Nts
6.625%
1-Mar-17
174
Ba3
BB
102.00
5.93%
540bp
1-Mar-15
0.02%
6.80%
Triumph Group
NR
Sr Nts
8.625%
15-Jul-18
350
Ba3
B+
109.00
6.34%
572bp
15-Jul-15
0.02%
6.66%
Building Materials
NR
15-Feb-20
250
Ba1
BB+
103.38
6.33%
514bp
15-Feb-18
0.14%
6.63%
Pinafore Inc
NR
1-Oct-18
1,035
B1
B+
107.00
7.25%
636bp
1-Oct-16
0.37%
6.50%
J.B. Poindexter
Buy
Sr Nts
8.750%
15-Mar-14
199
B3
98.94
9.26%
895bp
15-Mar-14
-0.78%
6.45%
Interface
NR
Sr Nts
7.625%
1-Dec-18
275
B2
BB
103.00
6.90%
598bp
1-Dec-16
0.02%
6.43%
Case New Holland
Buy
Sr Nts
7.875%
1-Dec-17
1,500
Ba2
BB+
108.75
6.11%
497bp
1-Dec-17
0.25%
6.05%
Bombardier
NR
Sr Nts
6.300%
1-May-14
162
Ba2
BB+
104.75
4.21%
386bp
1-May-14
0.02%
5.91%
GenCorp
NR
Sr Sub Nts
9.500%
15-Aug-13
75
Ba3
CCC+
100.00
9.48%
927bp
15-Aug-13
0.03%
5.78%
Rexnord
NR
Sr Sub Nts
11.750%
1-Aug-16
300
Caa2
CCC+
103.00
10.42%
1,001bp
1-Aug-14
0.26%
5.73%
Bombardier
NR
Sr Nts
7.750%
15-Mar-20
850
Ba2
BB+
107.00
6.64%
500bp
15-Mar-20
-0.89%
5.72%
Thermon Industries
NR
1-May-17
139
B1
B+
104.00
8.39%
760bp
1-May-16
0.03%
5.67%
NR
15-Apr-15
117
B3
101.50
9.14%
869bp
15-Oct-14
0.03%
5.49%
Manitowoc
NR
Sr Nts
7.125%
1-Nov-13
150
B3
B+
100.00
7.12%
688bp
1-Nov-13
0.02%
5.48%
Hold
Sr Sub Nts
8.000%
1-Dec-15
204
B2
B+
99.00
8.30%
760bp
1-Dec-15
0.02%
5.44%
Transdigm
NR
Sr Sub Nts
7.750%
15-Dec-18
1,600
B3
B-
102.00
7.33%
618bp
15-Dec-17
-0.22%
5.33%
Trimas Corp
NR
15-Dec-17
250
B2
B-
106.50
7.84%
713bp
15-Dec-15
0.02%
5.32%
Bombardier
NR
Sr Nts
7.500%
15-Mar-18
650
Ba2
BB+
106.25
6.28%
508bp
15-Mar-18
0.02%
5.31%
AMSTED Industries
NR
Sr Nts
8.125%
15-Mar-18
500
B1
BB-
104.50
6.89%
612bp
15-Mar-16
0.97%
5.30%
Hexcel
NR
Sr Sub Nts
6.750%
1-Feb-15
75
B1
BB+
101.38
5.04%
504bp
1-Feb-12
0.02%
5.25%
Titan International
NR
1-Oct-17
200
B1
B+
103.88
6.91%
602bp
1-Oct-16
0.02%
5.14%
Briggs & Stratton
NR
Sr Nts
6.875%
15-Dec-20
225
Ba3
BB
101.00
6.72%
493bp
15-Dec-20
0.02%
5.13%
NR
1-Dec-17
225
B3
B+
100.50
8.50%
757bp
1-Dec-16
0.52%
5.12%
ADS Tactical
NR
Sr Sec Nts
1-Apr-18
275
B3
97.50
11.56%
1,035bp
1-Apr-18
0.03%
5.05%
11.000%
16
YTD Total
Return

01 December 2011
Yilma Abebe
(1-212) 270-3265
High-yield Industrials universe ranked by YTD Total Return (continued)

November 30, 2011
Price
Issuer
Rec rating
Description
Coupon
Altra Holdings
NR
Sr Sec Nts
8.125%
1-Dec-16
Moog
NR
Sr Sub Nts
6.250%
15-Jan-15
NR
Sr Nts
11.000%
Actuant
NR
Sr Nts
NR
Sr Nts
Thermadyne Holdings
Outstanding
Weekly
YTD Total
Return
Moody's
S&P
30-Nov-11
YTW
STW
210
B1
BB-
104.00
6.96%
626bp
1-Dec-15
0.02%
5.04%
187
Ba3
B+
100.50
5.77%
564bp
15-Jan-13
0.02%
4.98%
1-Nov-15
438
Caa1
CCC+
104.50
8.40%
815bp
1-Nov-13
0.51%
4.95%
6.875%
15-Jun-17
250
Ba3
BB-
101.00
6.55%
595bp
15-Jun-15
0.02%
4.87%
6.875%
31-Jul-13
150
Ba1
BB+
104.00
4.35%
414bp
31-Jul-13
-0.45%
4.86%
NR
15-Dec-17
260
B3
B-
100.00
9.00%
806bp
15-Dec-16
-1.86%
4.86%
WireCo WorldGroup
NR
Sr Nts
9.500%
15-May-17
425
B2
102.00
8.81%
823bp
15-May-15
0.03%
4.80%
BE Aerospace
Hold
Sr Nts
8.500%
1-Jul-18
600
Ba2
BB
107.00
6.37%
617bp
1-Jul-13
-0.09%
4.77%
SPX
NR
Sr Nts
7.625%
15-Dec-14
500
Ba2
BB+
107.00
5.11%
462bp
15-Dec-14
-0.21%
4.74%
L-3 Communications
NR
Sr Sub Nts
6.375%
15-Oct-15
1,000
Ba1
BB+
102.13
5.05%
495bp
15-Oct-12
0.02%
4.71%
Anixter
NR
Sr Nts
5.950%
1-Mar-15
200
Ba2
BB
99.50
6.12%
558bp
1-Mar-15
0.02%
4.68%
Alliant Techsystems
NR
Sr Sub Nts
6.875%
15-Sep-20
350
Ba3
BB-
101.50
6.59%
528bp
15-Sep-18
0.26%
4.64%
NR
Sr Nts
7.500%
1-Mar-14
275
Caa1
B+
99.75
7.61%
730bp
1-Mar-14
0.27%
4.62%
Mohawk Industries
NR
Sr Nts
6.125%
15-Jan-16
900
Ba2
BB+
106.75
4.32%
359bp
15-Jan-16
0.02%
4.60%
Belden CDT
NR
Sr Sub Nts
7.000%
15-Mar-17
350
Ba2
B+
99.50
7.11%
612bp
15-Mar-17
-0.47%
4.46%
Building Materials
NR
Sr Nts
6.750%
1-May-21
1,010
Ba3
BB+
99.50
6.82%
495bp
1-May-21
0.02%
4.43%
Coleman Cable
NR
Sr Nts
9.000%
15-Feb-18
275
B3
99.75
9.05%
786bp
15-Feb-18
-0.22%
4.14%
Case New Holland
Buy
Sr Nts
7.750%
1-Sep-13
1,000
Ba2
BB+
105.00
4.73%
451bp
1-Sep-13
0.02%
4.12%
Case
Buy
Sr Nts
7.250%
15-Jan-16
254
Ba2
BB+
106.00
5.60%
487bp
15-Jan-16
0.02%
4.12%
Bombardier
NR
Sr Nts
7.250%
15-Nov-16
785
Ba2
BB+
103.00
6.12%
546bp
15-Nov-14
-0.70%
3.84%
Cleaver-Brooks
NR
1-May-16
185
B2
99.00
12.54%
1,175bp
1-May-16
0.03%
3.70%
SPX
NR
Guar Nts
6.875%
1-Sep-17
600
Ba1
BB+
104.00
6.04%
495bp
1-Sep-17
0.02%
3.67%
Moog
NR
Sr Sub Nts
7.250%
15-Jun-18
192
Ba3
B+
101.75
6.79%
597bp
15-Jun-16
0.02%
3.66%
NR
Sr Nts
7.250%
15-Apr-18
200
Ba2
BB+
101.75
6.78%
599bp
15-Apr-16
0.02%
3.62%
Ormat Funding
NR
30-Dec-20
132
NR
NR
92.50
9.50%
770bp
30-Dec-20
0.02%
3.48%
Belden
NR
Sr Sub Nts
9.250%
15-Jun-19
200
Ba2
B+
105.00
8.11%
707bp
15-Jun-17
-0.43%
3.43%
Terex
NR
Sr Nts
10.875%
1-Jun-16
300
B2
BB-
110.25
7.05%
687bp
1-Jun-13
-0.20%
3.42%
Alliant Techsystems
NR
Sr Sub Nts
6.750%
1-Apr-16
400
Ba3
BB-
101.00
6.28%
595bp
1-Apr-14
-0.71%
3.33%
Manitowoc
NR
Sr Nts
8.500%
1-Nov-20
600
B3
B+
102.00
8.11%
678bp
1-Nov-18
-0.22%
3.22%
Buy
Sr Nts
7.125%
15-Mar-21
600
Ba3
B+
98.00
7.42%
558bp
15-Mar-21
0.02%
3.17%
NR
Sr Nts
8.750%
1-Sep-20
225
B2
B+
106.00
7.59%
629bp
1-Sep-18
0.25%
3.04%
Rexnord
NR
Sr Nts
8.500%
1-May-18
1,145
Caa1
B-
101.75
8.02%
722bp
1-May-16
0.27%
2.99%
Buy
Sr Nts
6.875%
15-Mar-18
600
Ba3
B+
98.00
7.27%
607bp
15-Mar-18
0.02%
2.99%
NR
Sr Nts
8.250%
1-Nov-21
900
B1
BB-
103.00
7.61%
648bp
1-Nov-17
0.02%
2.75%
Bombardier
NR
Sr Nts
6.750%
1-May-12
151
Ba2
BB+
100.75
4.87%
483bp
1-May-12
0.02%
2.74%
Terex
NR
Sr Sub Nts
8.000%
15-Nov-17
800
Caa1
96.50
8.77%
763bp
15-Nov-17
-0.49%
2.71%
General Cable
Hold
Sr Nts
7.125%
1-Apr-17
200
Ba3
B+
99.25
7.29%
630bp
1-Apr-17
-2.65%
2.60%
Hillman Group
NR
Sr Nts
10.875%
1-Jun-18
50
B3
CCC+
101.00
10.59%
977bp
1-Jun-16
0.03%
2.43%
USG
NR
Sr Nts
9.750%
1-Aug-14
300
B2
BB-
99.25
10.07%
966bp
1-Aug-14
0.03%
2.38%
Bombardier
NR
Sr Nts
6.125%
15-May-21
780
Ba2
BB+
93.50
7.08%
484bp
15-May-21
-0.51%
2.37%
NR
Sr Nts
8.125%
1-Apr-21
250
B3
CCC+
97.00
8.60%
674bp
1-Apr-21
-0.48%
2.30%
Mohawk Industries
NR
Sr Nts
7.200%
15-Apr-12
336
Ba2
BB+
101.75
2.40%
236bp
15-Apr-12
0.02%
2.13%
Manitowoc
NR
Sr Nts
9.500%
15-Feb-18
400
B3
B+
103.25
8.56%
781bp
15-Feb-16
0.02%
2.11%
Griffon Corporation
NR
Sr Nts
7.125%
1-Apr-18
550
Ba3
BB-
96.00
7.94%
673bp
1-Apr-18
0.02%
1.05%
Hillman Group
NR
Guar Nts
10.875%
1-Jun-18
200
B3
CCC+
101.00
10.59%
977bp
1-Jun-16
0.03%
1.02%
Ply Gem Industries
NR
Sr Sub Nts
13.125%
15-Jul-14
150
Caa3
CCC
95.00
15.50%
1,510bp
15-Jul-14
-1.44%
0.61%
Vulcan Materials
NR
Sr Nts
7.500%
15-Jun-21
600
Ba2
BB
97.00
7.95%
605bp
15-Jun-21
0.02%
0.50%
CNH Capital Inc
NR
Sr Nts
6.250%
1-Nov-16
500
Ba2
BB
99.75
6.31%
540bp
1-Nov-16
-0.23%
0.24%
Commercial Vehicle
NR
Sr Sec Nts
7.875%
15-Apr-19
250
B2
B-
95.00
8.81%
737bp
15-Apr-19
0.02%
-0.27%
NR
1-Jun-17
625
B3
B+
101.25
9.65%
884bp
1-Jun-16
0.03%
-0.37%
Oshkosh Corporation
NR
Sr Nts
1-Mar-17
250
B2
BB
100.50
8.10%
734bp
1-Mar-16
0.02%
-0.67%
NR
1-Nov-14
320
B2
B-
90.50
13.94%
1,348bp
1-Nov-14
-0.55%
-0.79%
Vulcan Materials
NR
Sr Nts
6.500%
1-Dec-16
500
Ba2
BB
96.00
7.47%
655bp
1-Dec-16
0.02%
-0.97%
Masonite Corp.
NR
Sr Nts
8.250%
15-Apr-21
275
B3
B+
93.75
9.26%
740bp
15-Apr-21
0.02%
-1.05%
Tutor Perini
NR
Guar Nts
7.625%
1-Nov-18
300
Ba3
BB-
92.50
9.11%
777bp
1-Nov-18
0.29%
-1.05%
Oshkosh Corporation
NR
Sr Nts
8.500%
1-Mar-20
250
B2
BB
100.50
8.39%
720bp
1-Mar-18
0.02%
-1.35%
8.250%
Maturity
17

01 December 2011
Yilma Abebe
(1-212) 270-3265
High-yield Industrials universe ranked by YTD Total Return (continued)

January 0, 1900
Price
YTD Total
Return
Rec rating
Description
Coupon
Maturity
Moody's
S&P
30-Nov-11
YTW
STW
NR
Sr Sub Nts
10.000%
15-Aug-14
160
Caa1
CCC
90.50
14.34%
1,393bp
15-Aug-14
0.03%
-1.58%
Nortek
NR
NR
Sr Nts
Sr Nts
10.000%
7.125%
1-Dec-18
15-May-19
250
500
Caa1
Caa1
B
CCC+
92.50
94.00
11.59%
8.22%
1,024bp
676bp
1-Dec-18
15-May-19
-0.77%
0.02%
-1.59%
-1.92%
NR
Sr Sub Nts
7.375%
1-Jun-17
420
Caa2
CCC+
87.00
10.55%
952bp
1-Jun-17
0.02%
-2.88%
USG
NR
NR

10.500%
Sr Nts
8.375%
15-Dec-15
15-Oct-18
240
350
B3
B2
B
BB-
93.50
87.25
12.60%
11.07%
1,189bp
974bp
15-Dec-15
15-Oct-18
0.03%
0.03%
-3.00%
-3.16%
NR
NR

9.250%
Sr Nts
11.000%
15-Jul-19
1-Sep-18
350
250
B2
Caa2
B
B-
93.25
79.25
10.56%
16.15%
907bp
1,484bp
15-Jul-19
1-Sep-18
0.03%
0.04%
-3.33%
-5.80%
DynCorp
NR
Sr Nts
USG
Ply Gem Industries
NR
NR
Sr Nts
6.300%
USG
NR
Sr Nts

NR
NR
Sr Nts
Sr Sec Nts

Nortek
NR
NR
Texas Industries
AGY Holding Corp
AS Americas
10.375%
Outstanding
Weekly
Issuer
1-Jul-17
455
B2
B-
87.00
13.78%
1,273bp
1-Jul-17
0.03%
-5.92%
15-Nov-16
15-Feb-18
500
800
Caa2
Caa1
BB-
75.50
86.00
13.19%
11.46%
1,227bp
1,027bp
15-Nov-16
15-Feb-18
-1.28%
-0.54%
-7.10%
-7.39%
7.750%
15-Jan-18
500
Caa2
B-
82.00
11.98%
1,081bp
15-Jan-18
-2.28%
-7.90%
8.000%
9.125%
15-Feb-18
1-Nov-17
215
730
B3
B3
CCC+
B
85.00
84.50
11.44%
12.95%
1,025bp
1,183bp
15-Feb-18
1-Nov-17
0.03%
-0.55%
-8.53%
-10.98%
Sr Nts
Sr Nts
10.250%
8.500%
1-Feb-15
15-Apr-21
245
500
Caa2
Caa1
CCCB
59.50
81.25
31.27%
11.86%
3,076bp
1,000bp
1-Feb-15
15-Apr-21
0.05%
-1.47%
-11.15%
-13.65%
NR
Sr Nts
9.250%
15-Aug-20
650
Caa2
B-
82.25
12.67%
1,095bp
15-Aug-20
-0.26%
-14.18%
NR
NR

11.000%
15-Nov-14
15-Jan-16
172
188
Caa3
Caa1
CCC+
B
62.50
67.00
31.37%
23.71%
3,090bp
2,298bp
15-Nov-14
15-Jan-16
0.05%
-0.66%
-19.45%
-23.65%
Aquilex Holdings
NR
Sr Nts
11.125%
15-Dec-16
225
48.00
32.94%
3,201bp
15-Dec-16
-1.33%
-42.35%
Hawker Beechcraft
Hawker Beechcraft
NR
NR
Sr Nts
Sr Sub Nts
8.500%
9.750%
1-Apr-15
1-Apr-17
183
145
Ca
Ca
CCCCCC-
25.00
15.50
67.61%
75.89%
6,706bp
7,489bp
1-Apr-15
1-Apr-17
0.09%
0.16%
-54.30%
-54.62%
Hawker Beechcraft
NR
Sr Toggle Nts
8.875%
1-Apr-15
303
Ca
CCC-
25.00
68.61%
6,805bp
1-Apr-15
0.09%
-54.68%
18

01 December 2011
Yilma Abebe
(1-212) 270-3265
New Issuance YTD

Date:
Issue Date
November 30, 2011

Issuer
Amount Outstanding (USD)
Coupon
Description
Maturity
Ratings
Moody's
S&P
1/4/2011
1/13/2011
CEMEX
Columbus McKinnon
$1,650.0
$150.0
9.000%
7.875%
Sr Sec Nts
Sr Sub Nts
1/11/2018
2/1/2019
NR/BB1/B+
Building Materials
Industrials
1/13/2011
AS Americas
$187.5
10.750%
1/15/2016
Caa1/B
Building Materials
1/19/2011
2/3/2011
West China Cement

$400.0
$215.0
7.500%
8.000%
Sr Nts
Sr Nts
1/25/2016
2/15/2018
Ba3/BBB3/CCC+
Building Materials
Industrials
2/9/2011
Ply Gem Industries
$800.0
8.250%
2/15/2018
Caa1/B-
Building Materials
3/4/2011
3/4/2011

$600.0
$600.0
6.875%
7.125%
Sr Nts
Sr Nts
3/15/2018
3/15/2021
Ba3/B+
Ba3/B+
Building Materials
Building Materials
Industry
3/11/2011
Hillman Group
$50.0
10.875%
Sr Nts
6/1/2018
B3/CCC+
Industrials
3/14/2011
Griffon Corporation
$550.0
7.125%
Sr Nts
4/1/2018
Ba3/BB-
Industrials
3/18/2011
3/22/2011
Boart Longyear Management

ADS Tactical
$300.0
$275.0
7.000%
11.000%
Sr Nts
Sr Sec Nts
4/1/2021
4/1/2018
Ba2/BBB3/B
Building Materials
Aerospace / Defense
3/31/2011
$250.0
8.125%
Sr Nts
4/1/2021
B3/CCC+
Industrials
4/7/2011
4/8/2011
Kion Finance
Masonite Corp.
$325.0
$275.0
7.875%
8.250%
Sr Sec Nts
Sr Nts
4/15/2018
4/15/2021
B2/B
B3/B+
Industrials
Building Materials
4/12/2011
Nortek
$500.0
8.500%
Sr Nts
4/15/2021
Caa1/B
Building Materials
4/13/2011
4/19/2011
Commercial Vehicle
Dematic SAS
$250.0
$300.0
7.875%
8.750%
Sr Sec Nts
4/15/2019
5/1/2016
B2/BB3/B
Industrials
Industrials
4/26/2011
China Liansu Group Holdings
$300.0
7.875%
Sr Nts
5/13/2016
Ba2/NR
Industrials
4/26/2011
4/27/2011
Building Materials
$1,010.0
$500.0
6.750%
7.125%
Sr Nts
Sr Nts
5/1/2021
5/15/2019
Ba3/BB+
Caa1/CCC+
Building Materials
Industrials
5/2/2011
Heckler & Koch GMBH
$295.0
9.500%
Sr Sec Nts
5/15/2018
Caa1/CCC+
Aerospace / Defense
5/5/2011
5/6/2011
Fosun International
Sensata Technologies
$300.0
$700.0
7.500%
6.500%
Sr Nts
Sr Sec Nts
5/12/2016
5/15/2019
Ba2/BB+
B3/B
Industrials
Industrials
5/6/2011
Cimento Tupi SA
$100.0
9.750%
Sr Nts
5/11/2018
NR/B
Building Materials
5/18/2011
5/24/2011
China Shanshui Cement

Rexel SA
$400.0
$500.0
8.500%
7.000%
Sr Nts
Sr Nts
5/25/2016
12/17/2018
NR/BBBa3/BB
Building Materials
Building Materials
5/26/2011
Lonking Holdings
$350.0
8.500%
Sr Nts
6/3/2016
Ba3/BB
Industrials
5/26/2011
Xefin Lux SCA
$300.0
8.000%
Sr Sec Nts
6/1/2018
Ba3/B+
Building Materials
6/3/2011
6/3/2011
Vulcan Materials
Vulcan Materials
$500.0
$600.0
6.500%
7.500%
Sr Nts
Sr Nts
12/1/2016
6/15/2021
Ba2/BB
Ba2/BB
Building Materials
Building Materials
6/23/2011
Ducommun Inc
$200.0
9.750%
Sr Nts
7/15/2018
B3/B-
7/12/2011
11/1/2011
CNH Capital Inc
$350.0
$500.0
9.250%
6.250%

Sr Nts
7/15/2019
11/1/2016
B2/B
Ba2/BB
Aerospace / Defense
Industrials
Industrials
19

01 December 2011
Yilma Abebe
(1-212) 270-3265
Stock performance tracker

Price History
2 weeks
11/15
11/22
4 weeks
11/1
3 weeks
11/8
56.18
36.61
53.69
23.83
28.45
34.19
36.18
16.04
90.15
53.82
61.24
39.98
58.63
24.8
30.1
34.28
40.12
19.29
98.51
56
60.27
38.76
57.66
25.05
31.66
33.69
40.12
19.93
98.4
58.37
Wabtec
35.75
22.31
10.44
14.46
10.85
2.7
20.11
50
51.7
15.59
18.31
8.31
65.59
40.86
27.97
12.74
13.97
12.2
2.45
21.92
56.59
60.84
17.17
19.15
9.21
68.57
S&P 500
1218.28
1275.92
Last five trading days

11/23
11/25
11/28
11/29
56.61
36.62
51.36
22.99
29.6
31.62
38.32
18.61
92.82
54.9
54.6
35.33
49.12
22.46
29.3
31.11
36.98
18.08
90.83
52.97
54.31
35.37
48.66
22.18
29.45
30.61
36.46
18.01
91.17
52.65
56.22
37.31
51.2
23.61
30.63
31.96
38.34
18.64
92.98
55.67
57.17
37.16
50.62
23.44
31
31.64
39.01
18.7
92.57
54.94
39.59
27.16
13.05
14.84
11.69
2.21
21.9
58.14
59.41
16.45
21.06
9.39
68.05
37.02
24.69
12.2
14.67
9.69
2.16
19.43
51.74
59.08
14.11
18.98
8.4
63.93
35.47
23.91
11.39
14.2
9.14
2.05
18.34
50.7
57.3
13.1
18.02
7.91
62.32
35.37
23.16
11.27
14.22
8.88
2.01
18.13
50.27
56.71
12.67
18.21
7.99
61.24
37.53
25.09
12.22
14.72
9.71
2.03
19.29
51.95
58.99
13.77
19.34
8.6
63.55
37.18
24.98
12.74
14.72
9.63
2.03
19.17
48.53
60.08
13.81
18.83
8.93
64.14
1257.81
1188.04
1161.79
5 days
Price Performance
Change
2 weeks
3 weeks
4 weeks
AEROSPACE/DEFENSE
ATK
BE Aerospace
Esterline
Hexcel
Huntington Ingalls
Moog
Spirit Aerosystems
Transdigm
Triumph Group
1.0%
1.5%
outperf
outperf
-5.1%
-4.1%
in line
outperf
-6.6%
-7.1%
underperf
underperf
1.8%
1.5%
outperf
outperf
-1.4%
underperf
-12.2%
underperf
-13.7%
underperf
-5.7%
underperf
2.0%
4.7%
0.1%
1.8%
0.5%
-0.3%
0.1%
outperf
outperf
underperf
outperf
in line
underperf
underperf
-6.4%
-2.1%
-6.1%
-2.8%
-6.2%
-5.9%
-5.9%
underperf
outperf
underperf
outperf
underperf
underperf
underperf
-5.5%
3.0%
-7.7%
-2.8%
-3.1%
-6.0%
-1.9%
outperf
outperf
underperf
outperf
outperf
outperf
outperf
-1.6%
9.0%
-7.5%
7.8%
16.6%
2.7%
2.1%
outperf
outperf
underperf
outperf
outperf
outperf
outperf
0.4%
1.2%
in line
outperf
-6.1%
-8.0%
underperf
underperf
-9.0%
-10.7%
underperf
underperf
4.0%
12.0%
outperf
outperf
4.4%
0.3%
-0.6%
outperf
underperf
underperf
-2.4%
-0.8%
-17.6%
outperf
outperf
underperf
0.0%
5.4%
-21.1%
outperf
22.0%
outperf
1.8%
underperf -11.2%
outperf
outperf
underperf
-6.0%
underperf
-8.1%
underperf
-17.1%
underperf -24.8%
underperf
-1.3%
underperf
-12.5%
underperf
-12.5%
underperf
-4.7%
underperf
-6.2%
underperf
-16.5%
underperf
-14.2%
underperf
-2.9%
underperf
1.7%
-2.1%
-0.8%
6.3%
0.3%
outperf
underperf
underperf
outperf
underperf
1.1%
-16.0%
-10.6%
-4.9%
-5.7%
INDUSTRIALS
CNH
General Cable
Gibraltar
Interline Brands
Manitowoc
Mueller Water
Oshkosh
Polypore
SPX
Terex
Trimas
USG
Source: Bloomberg
20
1158.67 1192.55
1195.19
last 5 days
0.6%
outperf
-1.2%
outperf
16.2%
outperf
underperf
-19.6% underperf -11.4% underperf
underperf
-1.7%
outperf
2.8%
outperf
in line
-3.0%
outperf
7.5%
outperf
underperf
-6.5%
in line
-2.2% underperf
Change
last 2 weeks
last 3 weeks
last 4 weeks
-5.0%
-6.3%
-1.9%

01 December 2011
Yilma Abebe
(1-212) 270-3265
Industrials sector performance

J.P. Morgan HY Industrials Index vs. J.P. Morgan HY Index
JPMorgan Indices STW

1850
1650
Spread to Worst (bps)
1450
1250
1050
November 29, 2011

Index
STW
Global HY Index
HY Industrials Index
793bp
731bp
850
650
Monthly STW Changes
450
J.P. Morgan HY Index
11/5/2011
7/5/2011
3/5/2011
11/5/2010
7/5/2010
3/5/2010
11/5/2009
7/5/2009
3/5/2009
11/5/2008
7/5/2008
3/5/2008
11/5/2007
7/5/2007
3/5/2007
250
October 31, 2011 November 29, 2011 Change

719bp
793bp
-74bp
681bp
731bp
-50bp
Industrials Index
J.P. Morgan HY Industrials Index vs. J.P. Morgan HY Index
JPMorgan Indices YTW
820
800
Spread to Worst (bps)
Global HY Index
780
760
740
720
November 29, 2011

Index
YTW
Global HY Index
8.98%
8.21%
700
680
660
Monthly YTW Changes
640
620
11/1/2011
11/8/2011
11/15/2011
J.P. Morgan HY Index
11/22/2011
Industrials Index
11/29/2011
Global HY Index
October 29, 2011 November 29, 2011 Change

8.22%
8.98%
-76bp
768.00%
821.00%
-1bp
Source for all charts on this page: J.P. Morgan, Bloomberg.
21

01 December 2011
Yilma Abebe
(1-212) 270-3265
Economic overview
1Q11
0.4%
7.1%
q/q, %saar
Real GDP (U.S.)
Industrial production (U.S.)
2Q11
1.3%
0.0%
3Q11
2.0%
4.3%
Jan-11
74.2
Feb-11
77.5
Quarterly
4Q11E 1Q12E
3.0%
0.5%
4.0%
0.0%
2Q12E
1.5%
1.5%
3Q12E
2.5%
3.0%
4Q12E
2.5%
3.0%
FY2010
3.0%
5.4%
May-11
74.3
Jun-11
71.5
Jul-11
63.7
Aug-11
55.7
Annual
FY2011E
FY2012E
1.8%
1.8%
4.4%
2.1%
FY2013E
2.4%
2.9%
Source: J.P. Morgan economic research, Michael Feroli
Dec-10
74.5
Consumer confidence
Mar-11
67.5
Apr-11
69.8
Sep-11
59.4
Source: University of Michigan
GDP and Industrial Production, 1Q11 - 4Q12E
Consumer confidence survey
q/q, %saar
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
1Q11
2Q11
3Q11
4Q11E
1Q12E
Real GDP (U.S.)
Source for all charts on this page: J.P. Morgan, University of Michigan.
22
85.0
80.0
75.0
70.0
65.0
60.0
55.0
50.0
2Q12E
3Q12E
4Q12E
Industrial production (U.S.)
Oct-11
60.9
Nov-11
55.7
Yilma Abebe
(1-212) 270-3265

01 December 2011
Economic overview continued

ISM Manufacturing
ISM Non-Manufacturing
Nov-10
58.2
56.0
Dec-10
58.5
57.1
Jan-11
60.8
59.4
Feb-11
61.4
59.7
Mar-11
61.2
57.3
Apr-11
60.4
52.8
May-11
53.5
54.6
Jun-11
55.3
53.3
Jul-11
50.9
52.7
Aug-11
50.6
53.3
Sep-11
51.6
53.0
Oct-11
50.8
52.9
Source: Institute of Supply Management
American Institute of Architects Billings
Nov-10
52.0
Dec-10
53.9
Jan-11
50.0
Feb-11
50.6
Mar-11
50.5
Apr-11
47.6
May-11
47.2
Jun-11
46.3
Jul-11
45.1
Aug-11
51.4
Sep-11
46.9
Oct-11
49.4
Source: American Institute of Architects
American Institute of Architects Billings Index
ISM Non-Manufacturing Index
55.0
60.0
50.0
55.0
45.0
50.0
40.0
45.0
35.0
40.0
30.0
35.0
ISM Manufacturing Index

65.0
60.0
55.0
50.0
45.0
40.0
Source for all charts on this page: J.P. Morgan, ISM, and American Institute of Architects.
23
Yilma Abebe
(1-212) 270-3265

01 December 2011
Housing industry overview
Housing Starts (single family)

Existing Home Sales Forecast
55.0%
45.0%
35.0%
25.0%
15.0%
5.0%
-5.0%
-15.0%
-25.0%
3Q11E
4Q11E
Ho using starts
(single family)
FY2011E
Existing single
h o me sales
FY2012E
Oct-11
Sep-11
Aug-11
Jul-11
Existing single
h o me sales
May-11
17.2%
4.6%
1.0%
4.3%
Apr-11
4,888 *
4,965 *
4,955 *
5,169 *
Mar-11
-27.7%
-3.2%
5.1%
-2.1%
-6.7%
-13.4%
-15.4%
-6.3%
21.5%
20.7%
11.7%
13.8%
Feb-11
4,080
4,580
4,700
4,280
4,440
4,380
4,240
4,290
4,120
4,490
4,310
4,380
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
-10.0%
-20.0%
-30.0%
-40.0%
-50.0%
-60.0%
Jan-11
-0.2%
3.1%
5.5%
9.7%
9.7%
4.4%
-8.5%
-12.8%
-13.1%
4.9%
-4.8%
Housing starts
(single family)
Jun-11
y-o-y %
5,174
5,336
5,631
6,178
6,778
7,076
6,478
5,652
4,913
5,156
4,907
Source for all graphs on this page: U.S. Census, NAR.

*Existing home sales forecast Includes single family, coops and condos.
24
Housing Starts (single family)

and Existing Home Sales, LTM
Dec-10
Existing single
home sales
Nov-10
Housing industry data

Housing starts
in thousands, SAAR (single family) y-o-y %
Annual
2000
1,231
-5.5%
2001
1,273
3.4%
2002
1,359
6.7%
2003
1,499
10.3%
2004
1,611
7.4%
2005
1,716
6.5%
2006
1,465
-14.6%
2007
1,046
-28.6%
2008
622
-40.5%
2009
445
-28.4%
2010
471
5.8%
Last twelve months
Nov-10
455
-9.7%
Dec-10
421
-13.4%
Jan-11
437
-14.5%
Feb-11
388
-26.4%
Mar-11
418
-21.9%
Apr-11
411
-27.0%
May-11
416
-9.4%
Jun-11
449
-0.2%
Jul-11
430
0.7%
Aug-11
425
-1.6%
Sep-11
414
-7.4%
Oct-11
430
-0.7%
Forecast
3Q11E
423
-2.7%
4Q11E
401
-8.0%
FY2011E
416
-11.7%
FY2012E
480
15.5%

01 December 2011
Yilma Abebe
(1-212) 270-3265
Construction industry overview

SAAR, % change y-o-y
Total Construction Spending
Oct-10
801,995
Nov-10
802,980
Dec-10
782,880
Jan-11
771,982
Feb-11
764,198
Mar-11
762,557
Apr-11
768,226
May-11
787,396
Jun-11
799,568
Jul-11
773,296
Aug-11
786,024
Sep-11
787,211
y-o-y change
-7.8%
-5.6%
-6.0%
-5.1%
-3.9%
-5.5%
-6.3%
-2.9%
-1.3%
-2.0%
-0.7%
-1.3%
Residential Construction Spending
245,891
246,530
239,361
247,327
242,369
235,809
247,042
257,200
252,273
232,925
234,701
236,320
y-o-y change
-6.3%
-4.8%
-5.9%
-5.9%
-3.6%
-6.9%
-5.8%
0.9%
0.4%
-5.2%
-1.9%
-1.1%
Non-residential Construction Spending
556,104
556,450
543,519
524,655
521,830
526,748
521,184
530,196
547,295
540,371
551,323
550,892
y-o-y change
-8.4%
-5.9%
-6.0%
-4.7%
-4.1%
-4.8%
-6.5%
-4.7%
-2.1%
-0.5%
-0.2%
-1.3%
Source: U.S. Census Bureau
SAAR - Total Construction Spending
Total Construction Spending (2000 - Present)

1,300,000
810,000
790,000
780,000
770,000
760,000
1,200,000
Total Spending ($ in Billions)
1,100,000
1,000,000
900,000
800,000
700,000
600,000
750,000
740,000
500,000
Jan-00
Jun-00
Nov-00
Apr-01
Sep-01
Feb-02
Jul-02
Dec-02
May-03
Oct-03
Mar-04
Aug-04
Jan-05
Jun-05
Nov-05
Apr-06
Sep-06
Feb-07
Jul-07
Dec-07
May-08
Oct-08
Mar-09
Aug-09
Jan-10
Jun-10
Nov-10
Apr-11
Total Spending ($ in Billions)
800,000
Source: U.S. Census Bureau
Source for all charts on this page: U.S. Census Bureau
25
Yilma Abebe
(1-212) 270-3265

01 December 2011
Agriculture and construction equipment overview

Agricultural equipment industry volume trends
Tractors - world wide
North America
-Under 40 horsepower
-Over 40 horsepower
Europe Africa Middle East & Commonwealth of Independent States
Latin America
Asia Pacific (APAC)
Combines - world wide
North America
Latin America
Asia Pacific (APAC)
FY2010
14.0%
3.0%
4.0%
2.0%
6.0%
32.0%
18.0%
1.0%
9.0%
-17.0%
29.0%
-8.0%
1Q11
10.0%
5.0%
6.0%
3.0%
35.0%
1.0%
7.0%
25.0%
37.0%
40.0%
-2.0%
6.0%
2Q11
13.0%
-3.0%
-1.0%
-5.0%
30.0%
-5.0%
15.0%
17.0%
-14.0%
30.0%
58.0%
Flat
3Q11 FY2011E
12.0% ~+10%
Flat
Flat
-2.0%
Flat
3.0%
(0-5%)
25.0% 20-25%
-9.0% (5-10%)
14.0% ~+10%
16.0% 15-20%
-15.0%
0-5%
85.0% 35-40%
56.0% 15-20%
36.0% 20-25%
Source: CNH estimates
Construction equipment industry volume trends

Light equipment * - world wide
North America
Latin America
Asia Pacific (APAC)
FY2010
39.0%
21.0%
34.0%
88.0%
52.0%
1Q11
44.0%
47.0%
48.0%
46.0%
40.0%
2Q11
29.0%
37.0%
31.0%
30.0%
20.0%
3Q11
28.0%
39.0%
26.0%
25.0%
21.0%
FY2011E
25-30%
~+35%
25-30%
20-25%
15-20%
61.0%
16.0%
49.0%
96.0%
69.0%
51.0%
49.0%
63.0%
33.0%
50.0%
20.0%
37.0%
39.0%
25.0%
14.0%
4.0%
29.0%
33.0%
16.0%
-9.0%
15-20%
25-30%
~+40%
15-20%
10-15%
*Includes both loader backhoes

and skid steer loaders.
Heavy equipment - world wide

North America
Latin America
Asia Pacific (APAC)
Source: CNH estimates
26

01 December 2011
Yilma Abebe
(1-212) 270-3265
Airline/aerospace industry overview

Airline Industry: RPM and RASM, 1Q10 - FY2012E
20.0%
15.0%
10.0%
5.0%
FY2012E
FY2011E
3Q11E
-10.0%
4Q11E
2Q11
1Q11
4Q10
0.0%
-5.0%
3Q10
RASM
8.8%
16.9%
13.2%
7.9%
-7.1%
8.2%
8.6%
RASM
10.0%
8.7%
1.0%
2Q10
RPM
3.0%
4.5%
4.8%
7.2%
-9.7%
2.6%
0.7%
RPM
-1.5%
1.2%
-0.1%
1Q10
Airline industry data

% change y-o-y
Quarterly
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11E
Forecast
4Q11E
FY2011E
FY2012E
-15.0%
-20.0%
RPM
RASM
Source: ATA, JPMorgan equity research, Senior Analyst Jamie Baker

Note: RPM = Revenue Passenger Miles, a proxy for passenger traffic.
RASM = Revenue per Available Seat Miles, proxy for airline profitability.
Source for charts: ATA, J.P. Morgan equity research, Senior Analyst Jamie Baker.
27

01 December 2011
Yilma Abebe
(1-212) 270-3265
OEM aircraft deliveries

2005
2006
2007
2008
2009
2010
2011E
2012E
2013E
2014E
2015E
13
212
13
2
10
40
0
290
5
302
14
0
12
65
0
398
0
330
16
0
12
83
0
441
0
290
14
0
10
61
0
375
0
372
8
0
13
88
0
481
0
376
0
0
12
74
0
462
0
378
15
0
20
74
6
493
0
420
20
0
24
84
55
603
0
438
20
0
24
100
80
662
0
492
18
0
24
100
105
739
0
504
18
0
24
100
120
766
9
289
80
0
0
378
9
339
86
0
0
434
6
367
79
0
1
453
0
386
85
0
12
483
0
402
86
0
10
498
0
401
91
0
18
510
0
425
90
0
23
538
0
460
100
0
29
589
0
483
105
1
35
624
0
483
105
10
35
633
0
483
90
50
35
658
E190/5
CSeries
Subtotal
12
0
12
43
0
43
78
0
78
92
0
92
82
0
82
75
0
75
94
0
94
96
0
96
100
1
101
90
30
120
85
60
145
Total
680
875
972
950
1,061
1,047
1,125
1,288
1,387
1,492
1,569
Boeing
717
737
747
757
767
777
787
Subtotal
Airbus
300/310
A320 Family
330/340
350
380
Subtotal
Other
Source: Company reports, J.P. Morgan equity research, Senior Analyst Joe Nadol.
28

01 December 2011
Yilma Abebe
(1-212) 270-3265
Business jet deliveries

(Number of Units)
1997
Bombardier
Challenger 600 Series
Global Express
Global 5000
Learjet 40
Learjet 45 / 45X
Learjet 60/60XR
Learjet 85
Discontinued Models
Total
1998
1999
2000
2001
2002
2003
2004
34
24
36
7
32
42
32
43
32
38
35
71
35
41
30
63
29
31
17
27
17
24
1
14
17
12
21
79
22
100
24
173
28
207
17
180
9
101
63
28
90
181
64
15
30
91
200
59
39
36
82
216
56
8
6
79
37
66
252
61
41
37
85
34
48
306
Dassault
Falcon 50/EX
Falcon 900/B/C
Falcon 900DX
Falcon 900EX\LX
Falcon 2000/2000S
10
7
16
18
13
5
15
14
11
8
16
34
18
6
23
26
Falcon 2000EX
Falcon 2000LX
Falcon 7X
Discontinued Series
51
Calender Years
2006
2007
2005
2008
2009
2010
2011E
2012E
2013E
2
70
29
28
20
4
17
22
9
129
36
50
5
13
17
21
28
18
188
29
55
18
22
18
26
30
15
213
35
51
12
25
23
23
34
23
226
44
60
17
27
25
21
27
26
247
36
33
7
25
26
13
20
13
173
38
29
6
25
24
6
10
12
150
34
31
7
24
26
6
10
13
151
34
35
11
29
29
12
12
14
176
40
45
15
30
30
20
20
12
6
218
30
86
36
81
31
41
305
22
56
21
48
18
31
196
20
27
6
24
55
9
15
25
181
18
23
48
17
62
46
14
21
249
1
25
37
72
14
73
57
12
18
309
45
34
44
78
23
82
65
17
388
101
20
56
88
28
80
77
16
466
125
14
21
40
5
44
33
7
289
73
3
17
20
19
5
22
16
3
178
45
2
15
25
37
5
25
18
7
179
45
18
25
37
5
25
18
7
180
50
26
26
33
30
21
9
195
13
6
21
35
10
4
17
35
8
3
10
12
5
3
15
11
5
1
2
16
6
4
16
6
10
18
1
4
19
3
1
17
1
3
21
18
20
21
16
29
21
30
33
18
23
30
20
23
26
21
32
41
27
30
33
47
69
73
75
66
49
63
51
61
70
72
77
95
65
73
80
13
13
14
2
2
5
5
13
13
14
27
27
35
35
33
35
3
18
93
1
115
8
10
100
26
144
3
12
45
35
95
4
13
50
40
107
5
17
65
40
127
Gulfstream (General Dynamics)

G100 / G150
6
G200
G280
G300/350
G400 / Gulfstream IV / IVSP

22
G550 / Gulfstream V
29
G650
Discontinued Models
Total
57
14
32
29
75
9
1
39
31
80
11
6
37
34
88
5
25
36
35
101
9
15
29
32
85
5
19
8
13
29
74
9
13
5
19
32
78
12
14
12
14
37
89
20
22
12
16
43
113
32
27
13
20
46
138
39
30
12
20
55
156
11
8
30
45
94
13
11
31
44
99
14
4
36
44
10
108
16
15
32
44
20
127
25
20
28
42
33
148
HawkerBeechcraft
Premier I/A/Hawker 200
Beechjet 400XP
Hawker 800/850XP/900XP
Hawker 4000
Discontinued Models
Total
43
33
2
78
43
48
91
45
55
100
51
67
118
18
25
55
98
29
19
46
94
29
24
47
100
37
28
50
115
30
53
58
141
23
53
64
140
54
41
67
162
31
35
88
6
160
16
11
51
20
98
11
12
34
16
73
34
11
54
38
15
59
10
5
45
18
78
Grand Total w/o VLJs

% change
446
37%
513
15%
638
24%
740
16%
765
3%
659
-14%
502
-24%
579
15%
732
26%
862
18%
974
13%
1,033
6%
628
-39%
566
-10%
562
-1%
627
12%
731
17%
Grand Total w/ VLJs

% change
446
37%
513
15%
638
24%
740
16%
765
3%
659
-14%
502
-24%
579
15%
732
26%
863
18%
1,019
18%
1,136
11%
846
-26%
739
-13%
652
-12%
722
11%
866
20%
Cessna (Textron)
Citation Mustang
Citation Jet/CJ1+
Citation Jet/CJ2/Bravo
Citation Jet/CJ3
Citation Jet/CJ4
Citation V/Ultra/Encore+
Citation Excel/XLS/XLS+
Citation Sovereign
Citation X
Discontinued Models
Total
Total
Embraer
Lineage 1000
Legacy 600/650
Legacy 450
Legacy 500
Phenom 100
Phenom 300
Discontinued Models
Total
Source: Company reports, J.P. Morgan equity research, Senior Analyst Joe Nadol.
29
Yilma Abebe
(1-212) 270-3265

01 December 2011
Defense industry overview

J.P. Morgan Equity Research Defense Budget Estimates
$ in billions
FY08
FY09
FY10
Base US Defense Budget
$480
$513
$528
Growth
Base US Investment Acct Budget
$177
Growth
Supplemental Investment Acct Budget $67

Growth
Total US Investment Acct Budget
$245
Growth
Source: DoD, J.P. Morgan equity senior analyst Joe Nadol.
30
FY11
$529
FY12E
$526
FY13E
$508
-3.4%
6.9%
2.9%
0.2%
-0.6%
$180
$182
$177
$174
$164
1.7%
1.1%
-2.7%
-1.7%
-5.7%
$35
$34
$26
$15
$10
-47.8%
-2.9%
-23.5%
-42.3%
-33.3%
$215
$216
$203
$190
$174
-12.2%
0.5%
-6.0%
-6.4%
-8.4%

01 December 2011
Yilma Abebe
(1-212) 270-3265
Commodities and raw materials overview

$/lb
Copper
Aluminum
$/US ton
Steel (flat roll)
2007
12/31
3.01
1.07
1Q08
3/31
3.86
1.33
2Q08
6/30
3.94
1.39
3Q08
9/30
2.90
1.08
4Q08
12/31
1.38
0.68
1Q09
3/31
1.82
0.61
2Q09
6/30
2.24
0.72
3Q09
9/30
2.79
0.84
4Q09
12/31
3.33
1.00
1Q10
3/31
3.52
1.04
2Q10
6/30
2.94
0.89
3Q10
9/30
3.63
1.05
4Q10
12/31
4.38
1.12
1Q11
3/31
4.27
1.19
2Q11
6/30
4.27
1.14
3Q11
9/30
3.17
0.96
4 wks 3 wks 2 wks

11/2
11/8 11/15 11/22
3.57
3.53
3.48
3.31
0.95
0.96
0.95
0.93
Last 5 trading days

11/23 11/25 11/28
3.27
3.27
3.39
0.91
0.90
0.92
540
580
530
530
580
410
335
555
505
615
625
535
535
723
763
763
650
688
688
688
688
688
11/29
3.39
0.90
4Q11
3.29
1.00
1Q12
3.74
1.07
688
688
n/a
n/a
Forecasts
2Q12 3Q12
3.86
4.20
1.11
1.16
n/a
4Q12
4.08
1.18
n/a
n/a
$/barrell
Crude oil (WTI)
95.98 101.58 140.00 100.64 44.60
49.66
69.89
70.61
70.36
83.76
75.63
79.97
91.38 106.72 95.42
79.20
92.51
96.80
99.37
98.01
96.17
96.77
98.21
99.79
4Q11
82.17
1Q12
90.00
2Q12 3Q12 4Q12

90.00 100.00 110.00
$/bushel
Corn
Wheat
Soybean
4.56
8.85
9.95
4.05
5.33
8.86
3.48
5.11
12.37
3.44
4.58
8.66
4.15
5.42
9.42
3.45
4.51
7.97
3.54
4.65
8.68
4.96
6.74
9.06
6.29
7.94
11.11
5.93
6.09
9.14
6.45
6.24
9.32
6.61
6.57
9.23
6.46
6.33
9.04
5.99
5.94
8.76
5.89
5.79
8.48
5.83
5.75
8.48
5.92
5.75
8.63
5.98
5.95
8.58
4Q11
6.40
6.50
12.70
1Q12
6.70
6.90
13.10
2Q12
7.00
7.20
13.40
5.67
9.29
9.67
7.25
8.44
13.02
4.88
6.80
8.38
4.07
6.11
9.02
6.93
7.63
11.12
6.29
5.85
9.97
3Q12
6.80
7.10
13.20
4Q12
6.30
7.30
12.70
Source: London Metals Exchange, American Metal Association, New York Mercantile Exchange, Chicago Board of Trade, Bloomberg. Forecast by J.P. Morgan Senior Analysts Lewis Hagedorn, Michael Jansen, J.P. Morgan Energy Strategy.
31
Yilma Abebe
(1-212) 270-3265

01 December 2011
Commodities and raw materials charts

Copper prices ($/lb)
5.00
Aluminum prices ($/lb)

1.50
1.30
3.75
1.10
0.90
2.50
0.70
1.25
0.50
0.00
Crude oil prices ($/barrel)

Hot-Rolled Steel prices, 2001 - Today
US$/ton
120.00
1260
1140
1020
900
780
660
540
420
300
180
60
-60
32
100.00
80.00
60.00
40.00
20.00
0.00
Yilma Abebe
(1-212) 270-3265

01 December 2011
Commodities and raw materials charts continued

Wheat prices ($/bushel)
Corn prices ($/bushel)

9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
Soybean prices ($/bushel)

5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
33
Yilma Abebe
(1-212) 270-3265

01 December 2011
Analyst Certification: The research analyst(s) denoted by an AC on the cover of this report certifies (or, where multiple research
analysts are primarily responsible for this report, the research analyst denoted by an AC on the cover or within the document
individually certifies, with respect to each security or issuer that the research analyst covers in this research) that: (1) all of the views
expressed in this report accurately reflect his or her personal views about any and all of the subject securities or issuers; and (2) no part of
any of the research analyst's compensation was, is, or will be directly or indirectly related to the specific recommendations or views
expressed by the research analyst(s) in this report.
Conflict of Interest
This research contains the views, opinions and recommendations of J.P. Morgan credit research analysts. Research analysts
routinely consult with J.P. Morgan trading desk personnel in formulating views, opinions and recommendations in preparing
research. Trading desks may trade, or have traded, as principal on the basis of the research analyst(s) views and report(s).
Therefore, this research may not be independent from the proprietary interests of J.P. Morgan trading desks which may conflict
with your interests. In addition, research analysts receive compensation based, in part, on the quality and accuracy of their
analysis, client feedback, trading desk and firm revenues and competitive factors. As a general matter, J.P. Morgan and/or its
affiliates normally make a market and trade as principal in fixed income securities discussed in research reports.
Important Disclosures
Lead or Co-manager: J.P. Morgan acted as lead or co-manager in a public offering of equity and/or debt securities for Huntington
Ingalls Industries, Inc. within the past 12 months.
Explanation of Credit Research Ratings:
Ratings System: J.P. Morgan uses the following sector/issuer portfolio weightings: Overweight (over the next three months, the
recommended risk position is expected to outperform the relevant index, sector, or benchmark), Neutral (over the next three months, the
recommended risk position is expected to perform in line with the relevant index, sector, or benchmark), and Underweight (over the next
three months, the recommended risk position is expected to underperform the relevant index, sector, or benchmark). J.P. Morgan's
Emerging Market research uses a rating of Marketweight, which is equivalent to a Neutral rating.
Valuation & Methodology: In J.P. Morgan's credit research, we assign a rating to each issuer (Overweight, Underweight or Neutral)
based on our credit view of the issuer and the relative value of its securities, taking into account the ratings assigned to the issuer by credit
rating agencies and the market prices for the issuer's securities. Our credit view of an issuer is based upon our opinion as to whether the
issuer will be able service its debt obligations when they become due and payable. We assess this by analyzing, among other things, the
issuer's credit position using standard credit ratios such as cash flow to debt and fixed charge coverage (including and excluding capital
investment). We also analyze the issuer's ability to generate cash flow by reviewing standard operational measures for comparable
companies in the sector, such as revenue and earnings growth rates, margins, and the composition of the issuer's balance sheet relative to
the operational leverage in its business.
Other Disclosures
J.P. Morgan ("JPM") is the global brand name for J.P. Morgan Securities LLC ("JPMS") and its affiliates worldwide. J.P. Morgan Cazenove is a marketing
name for the U.K. investment banking businesses and EMEA cash equities and equity research businesses of JPMorgan Chase & Co. and its subsidiaries.
QIB Only
Options related research: If the information contained herein regards options related research, such information is available only to persons who have
received the proper option risk disclosure documents. For a copy of the Option Clearing Corporation's Characteristics and Risks of Standardized Options,
please contact your J.P. Morgan Representative or visit the OCC's website at http://www.optionsclearing.com/publications/risks/riskstoc.pdf
Legal Entities Disclosures
U.S.: JPMS is a member of NYSE, FINRA, SIPC and the NFA. JPMorgan Chase Bank, N.A. is a member of FDIC and is authorized and regulated in the
UK by the Financial Services Authority. U.K.: J.P. Morgan Securities Ltd. (JPMSL) is a member of the London Stock Exchange and is authorized and
regulated by the Financial Services Authority. Registered in England & Wales No. 2711006. Registered Office 125 London Wall, London EC2Y 5AJ.
South Africa: J.P. Morgan Equities Limited is a member of the Johannesburg Securities Exchange and is regulated by the FSB. Hong Kong: J.P. Morgan
Securities (Asia Pacific) Limited (CE number AAJ321) is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission in
Hong Kong. Korea: J.P. Morgan Securities (Far East) Ltd, Seoul Branch, is regulated by the Korea Financial Supervisory Service. Australia: J.P. Morgan
Australia Limited (ABN 52 002 888 011/AFS Licence No: 238188) is regulated by ASIC and J.P. Morgan Securities Australia Limited (ABN 61 003 245
234/AFS Licence No: 238066) is a Market Participant with the ASX and regulated by ASIC. Taiwan: J.P.Morgan Securities (Taiwan) Limited is a
participant of the Taiwan Stock Exchange (company-type) and regulated by the Taiwan Securities and Futures Bureau. India: J.P. Morgan India Private
Limited, having its registered office at J.P. Morgan Tower, Off. C.S.T. Road, Kalina, Santacruz East, Mumbai - 400098, is a member of the National Stock
Exchange of India Limited (SEBI Registration Number - INB 230675231/INF 230675231/INE 230675231) and Bombay Stock Exchange Limited (SEBI
Registration Number - INB 010675237/INF 010675237) and is regulated by Securities and Exchange Board of India. Thailand: JPMorgan Securities
(Thailand) Limited is a member of the Stock Exchange of Thailand and is regulated by the Ministry of Finance and the Securities and Exchange
Commission. Indonesia: PT J.P. Morgan Securities Indonesia is a member of the Indonesia Stock Exchange and is regulated by the BAPEPAM LK.
Philippines: J.P. Morgan Securities Philippines Inc. is a member of the Philippine Stock Exchange and is regulated by the Securities and Exchange
Commission. Brazil: Banco J.P. Morgan S.A. is regulated by the Comissao de Valores Mobiliarios (CVM) and by the Central Bank of Brazil. Mexico: J.P.
34
Yilma Abebe
(1-212) 270-3265

01 December 2011
Morgan Casa de Bolsa, S.A. de C.V., J.P. Morgan Grupo Financiero is a member of the Mexican Stock Exchange and authorized to act as a broker dealer
by the National Banking and Securities Exchange Commission. Singapore: This material is issued and distributed in Singapore by J.P. Morgan Securities
Singapore Private Limited (JPMSS) [MICA (P) 025/01/2011 and Co. Reg. No.: 199405335R] which is a member of the Singapore Exchange Securities
Trading Limited and is regulated by the Monetary Authority of Singapore (MAS) and/or JPMorgan Chase Bank, N.A., Singapore branch (JPMCB
Singapore) which is regulated by the MAS. Malaysia: This material is issued and distributed in Malaysia by JPMorgan Securities (Malaysia) Sdn Bhd
(18146-X) which is a Participating Organization of Bursa Malaysia Berhad and a holder of Capital Markets Services License issued by the Securities
Commission in Malaysia. Pakistan: J. P. Morgan Pakistan Broking (Pvt.) Ltd is a member of the Karachi Stock Exchange and regulated by the Securities
and Exchange Commission of Pakistan. Saudi Arabia: J.P. Morgan Saudi Arabia Ltd. is authorized by the Capital Market Authority of the Kingdom of
Saudi Arabia (CMA) to carry out dealing as an agent, arranging, advising and custody, with respect to securities business under licence number 35-07079
and its registered address is at 8th Floor, Al-Faisaliyah Tower, King Fahad Road, P.O. Box 51907, Riyadh 11553, Kingdom of Saudi Arabia. Dubai:
JPMorgan Chase Bank, N.A., Dubai Branch is regulated by the Dubai Financial Services Authority (DFSA) and its registered address is Dubai
International Financial Centre - Building 3, Level 7, PO Box 506551, Dubai, UAE.
Country and Region Specific Disclosures
U.K. and European Economic Area (EEA): Unless specified to the contrary, issued and approved for distribution in the U.K. and the EEA by JPMSL.
Investment research issued by JPMSL has been prepared in accordance with JPMSL's policies for managing conflicts of interest arising as a result of
publication and distribution of investment research. Many European regulators require a firm to establish, implement and maintain such a policy. This
report has been issued in the U.K. only to persons of a kind described in Article 19 (5), 38, 47 and 49 of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (all such persons being referred to as "relevant persons"). This document must not be acted on or relied on by persons
who are not relevant persons. Any investment or investment activity to which this document relates is only available to relevant persons and will be
engaged in only with relevant persons. In other EEA countries, the report has been issued to persons regarded as professional investors (or equivalent) in
their home jurisdiction. Australia: This material is issued and distributed by JPMSAL in Australia to "wholesale clients" only. JPMSAL does not issue or
distribute this material to "retail clients". The recipient of this material must not distribute it to any third party or outside Australia without the prior written
consent of JPMSAL. For the purposes of this paragraph the terms "wholesale client" and "retail client" have the meanings given to them in section 761G of
the Corporations Act 2001. Germany: This material is distributed in Germany by J.P. Morgan Securities Ltd., Frankfurt Branch and J.P.Morgan Chase
Bank, N.A., Frankfurt Branch which are regulated by the Bundesanstalt fr Finanzdienstleistungsaufsicht. Hong Kong: The 1% ownership disclosure as of
the previous month end satisfies the requirements under Paragraph 16.5(a) of the Hong Kong Code of Conduct for Persons Licensed by or Registered with
the Securities and Futures Commission. (For research published within the first ten days of the month, the disclosure may be based on the month end data
from two months prior.) J.P. Morgan Broking (Hong Kong) Limited is the liquidity provider/market maker for derivative warrants, callable bull bear
contracts and stock options listed on the Stock Exchange of Hong Kong Limited. An updated list can be found on HKEx website: http://www.hkex.com.hk.
Japan: There is a risk that a loss may occur due to a change in the price of the shares in the case of share trading, and that a loss may occur due to the
exchange rate in the case of foreign share trading. In the case of share trading, JPMorgan Securities Japan Co., Ltd., will be receiving a brokerage fee and
consumption tax (shouhizei) calculated by multiplying the executed price by the commission rate which was individually agreed between JPMorgan
Securities Japan Co., Ltd., and the customer in advance. Financial Instruments Firms: JPMorgan Securities Japan Co., Ltd., Kanto Local Finance Bureau
(kinsho) No. 82 Participating Association / Japan Securities Dealers Association, The Financial Futures Association of Japan, Type II Financial
Instruments Firms Association and Japan Securities Investment Advisers Association. Korea: This report may have been edited or contributed to from
time to time by affiliates of J.P. Morgan Securities (Far East) Ltd, Seoul Branch. Singapore: JPMSS and/or its affiliates may have a holding in any of the
securities discussed in this report; for securities where the holding is 1% or greater, the specific holding is disclosed in the Important Disclosures section
above. India: For private circulation only, not for sale. Pakistan: For private circulation only, not for sale. New Zealand: This material is issued and
distributed by JPMSAL in New Zealand only to persons whose principal business is the investment of money or who, in the course of and for the purposes
of their business, habitually invest money. JPMSAL does not issue or distribute this material to members of "the public" as determined in accordance with
section 3 of the Securities Act 1978. The recipient of this material must not distribute it to any third party or outside New Zealand without the prior written
consent of JPMSAL. Canada: The information contained herein is not, and under no circumstances is to be construed as, a prospectus, an advertisement, a
public offering, an offer to sell securities described herein, or solicitation of an offer to buy securities described herein, in Canada or any province or
territory thereof. Any offer or sale of the securities described herein in Canada will be made only under an exemption from the requirements to file a
prospectus with the relevant Canadian securities regulators and only by a dealer properly registered under applicable securities laws or, alternatively,
pursuant to an exemption from the dealer registration requirement in the relevant province or territory of Canada in which such offer or sale is made. The
information contained herein is under no circumstances to be construed as investment advice in any province or territory of Canada and is not tailored to
the needs of the recipient. To the extent that the information contained herein references securities of an issuer incorporated, formed or created under the
laws of Canada or a province or territory of Canada, any trades in such securities must be conducted through a dealer registered in Canada. No securities
commission or similar regulatory authority in Canada has reviewed or in any way passed judgment upon these materials, the information contained herein
or the merits of the securities described herein, and any representation to the contrary is an offence. Dubai: This report has been issued to persons regarded
as professional clients as defined under the DFSA rules.
General: Additional information is available upon request. Information has been obtained from sources believed to be reliable but JPMorgan Chase & Co.
or its affiliates and/or subsidiaries (collectively J.P. Morgan) do not warrant its completeness or accuracy except with respect to any disclosures relative to
JPMS and/or its affiliates and the analyst's involvement with the issuer that is the subject of the research. All pricing is as of the close of market for the
securities discussed, unless otherwise stated. Opinions and estimates constitute our judgment as of the date of this material and are subject to change
without notice. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any
financial instrument. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not
intended as recommendations of particular securities, financial instruments or strategies to particular clients. The recipient of this report must make its own
independent decisions regarding any securities or financial instruments mentioned herein. JPMS distributes in the U.S. research published by non-U.S.
affiliates and accepts responsibility for its contents. Periodic updates may be provided on companies/industries based on company specific developments or
announcements, market conditions or any other publicly available information. Clients should contact analysts and execute transactions through a J.P.
Morgan subsidiary or affiliate in their home jurisdiction unless governing law permits otherwise.
"Other Disclosures" last revised September 30, 2011.
35
Yilma Abebe
(1-212) 270-3265

01 December 2011
Copyright 2011 JPMorgan Chase & Co. All rights reserved. This report or any portion hereof may not be reprinted, sold or
redistributed without the written consent of J.P. Morgan. #$J&098$#*P
36

JPM High Yield Industria 2011-12-01 736416

Загружено:

Сведения о документе

Исходное описание:

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

JPM High Yield Industria 2011-12-01 736416

Загружено:

Авторское право:

Доступные форматы

North America Credit Research

High Yield Industrials Monthly

We are maintaining our Neutral recommendation on the Industrials sector. Based

Mueller Water Products

Alion Science and Technology

Top weekly gainers

Top weekly declines

Source: J.P. Morgan

See page 34 for analyst certification and important disclosures.

North America Credit Research

Aerospace and Defense

North America Credit Research

Source: J.P. Morgan economic research, Michael Feroli

U.S. Capacity Utilization

ISM Manufacturing Index

Source: Federal Reserve

Source: Institute of Supply Management

North America Credit Research

AFL Pick: Huntington Ingalls (HII)

Sources: J.P. Morgan, Moodys, and S&P.

North America Credit Research

Huntington Ingalls, Inc.

Total Operating Expenses

Memo item: adjustments to EBITDA

Depreciation and amortization

Interest Expense, Net

Adjusted net income

Free cash flow

North America Credit Research

Huntington Ingalls, Inc.

Cash & Cash Equivalents

EBITDA / Interest Expense

Balance Sheet Data

Source: J.P. Morgan and Company Reports

$650mln revolving loan facility due 2016

6.875% $600mln senior notes due 2018

Cash & Cash Equivalents

Cash & Cash Equivalents

Source: J.P. Morgan and Company Reports

Source: J.P. Morgan and Company Reports

DEBT AMORTIZATION SCHEDULE

Enterprise value/LTM EBITDA

Source: J.P. Morgan and Company Reports

North America Credit Research

Relative Value: Aerospace and Defense

Next Call Data

Alliant Techsystems (ATK)

Colt Defense (CLTDEF)

Esterline Technologies (ESL)

Hawker Beechcraft (HAWKER)

L-3 Communications (LLL)

ManTech International (MANT)

Spirit Aerosystems (SPR)

Wyle Services (WYLE)*

Source: J.P. Morgan and company reports.

North America Credit Research

Relative Value: Industrials

Next Call Data

Altra Holdings (AIMC)

Briggs & Stratton (BGG)

Sr Sec Nts (1st Lien)

CNH Global (CNH)1