债券投资建议

7月25日

研究推荐以下几个美国High Yield债券（垃圾债）：

1。Ventas Cap Corp

票面年利率 9.0%

到期日5/1/2012

评级 Ba2

最差年殖利率: 7.07%

CUSIP: 92276MAD

2。Reliant Res Inc

票面年利率 9.5%

到期日 7/15/2013

评级 B2

最差年殖利率: 8.99%

CUSIP: 75952BAJ

3。Allis Chalmers Corp

票面年利率 9.0%

到期日 1/15/2014

评级 B3

最差年殖利率: 8.989%

CUSIP: 019645AB

4。Saxon Cap Inc

票面年利率 12.0%

到期日 5/1/2014

评级 B2

最差年殖利率: 11.7%

CUSIP: 80556PAA


8月10日

Issue Recommendation (Media, communication and technology sector)

1. Anixter International Inc. (AXE) 03/01/2015 Sr. Nts

Rating: Ba1

CUSIP 035287AB

Current Price: $91.50

OAS: 240bp

Yield: 7.30%

Offering date: 02/24/2005

Coverage: 2006(YTD) 2005 2004 2003

Total Debt/EBITDA 2.55 3.02 2.64 2.14

EBITDA/Interest Expense 8.85 7.62 11.30 8.75

EBIT/Interest Expense 8.10 6.83 9.92 7.21

Leverage:

Total Debt/Shareholders’ equity 46.0%

AXE is engaged in the distribution of communications and specialty wire and cable products, and fasteners and other small parts.

The company has very strong growth with its second quarter EPS at $1.15, 40% over the consensus. Its EBITDA/Int. increased to 8.85x from 7.62x, a sign of very good credit protection for a Ba1 issue.

The company noted that growth was particularly strong in the electrical and electronic wire & cable market due to strong end-market customer demand, global expansion of the markets served and higher copper prices. I believe this trend will continue for the rest of the year and carry forward into 2007.

2. Flextronics Intl Ltd (FLEX) 6.5% 05/15/2013 Sr. Sub Nts

Rating: Ba2

CUSIP 33938EAJ

Current Price: $97.00

OAS: 211bp

Yield: 7.06%

Offering date: 10/03/2003

FLEX is a Singapore-based company providing electronics manufacturing services (EMS) to original equipment manufacturers (OEMs) in industries, such as computing; mobile; consumer digital; industrial, semiconductor and white goods; automotive, marine and aerospace; infrastructure, and medical. It operates in Asia, Europe and Americas.

FLEX is very successful to use its global presence combining the cheaper labor manufacturing costs it can obtain in Asia and South America with its advanced engineering and supply chain management expertise. This company is a big beneficiary of the booming outsourcing trends in Asia and South America.

FLEX has its current Debt/EBITDA at 2.1x, Cash & short-term investment/Debt at 54% and Net Operating cashflow/Debt at 22.9%. I foresee a stable to positive outlook on its creditworthiness ahead.

回顾一下7月25日推荐的债券的表现，4家债券均为上涨，特别值得一提的是，Saxon Cap Inc 12%的债券在公司将被摩根斯坦利收购的消息刺激下，从买入时的101.25美元上涨至8月10日的125.00美元，将近25%的涨幅在债券市场是极为罕见的。