Analysis of high yield issuance for 2006

Total year-to-date issuance: $157.259 billion in 396 deals

Columns are amounts in billions of dollars, count of deals and percentage by dollar value.

Yield

	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
Less than 6%	0.209	0	0	0	0	0	0	0	0	0	0	0
6%-6.99%	1.415	1.346	4.194	1.346	1.047	0.072	0	0.497	1.620	0.620	0	0.994
7%-7.99%	7.216	1.674	1.299	2.138	4.927	1.751	0.500	2.451	1.257	4.602	4.582	3.200
8%-8.99%	4.668	0.369	1.750	1.970	0.742	2.002	1.030	0	3.020	0.771	8.550	4.306
9%-9.99%	0.160	0.672	0.382	2.007	1.354	4.230	1.585	2.887	1.402	5.125	10.095	3.328
10%-10.99%	0.440	0.682	1.130	0.625	0.937	1.630	0.707	2.425	1.050	1.000	2.530	0.860
11% and higher	1.009	0.300	0.953	1.380	0.725	2.604	0.855	1.195	0.772	2.053	1.321	0.609
Floater	0.200	0.650	0.300	3.520	0.427	2.456	0.250	1.540	0.700	2.200	2.725	3.136
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
Less than 6%	0.209	1	0	0	0	0	0	0	0.209	1	0.209	1	0.13%
6%-6.99%	6.955	17	2.465	7	2.117	5	1.614	3	13.152	32	13.152	32	8.36%
7%-7.99%	10.189	20	8.816	28	4.208	13	12.384	23	35.596	84	35.596	84	22.64%
8%-8.99%	6.787	16	4.714	16	4.051	11	13.627	21	29.179	64	29.179	64	18.55%
9%-9.99%	1.213	7	7.591	20	5.874	13	18.548	27	33.227	67	33.227	67	21.13%
10%-10.99%	2.252	8	3.192	13	4.182	11	4.390	10	14.017	42	14.017	42	8.91%
11% and higher	2.262	10	4.709	18	2.822	11	3.983	16	13.776	55	13.776	55	8.76%
Floater	1.150	4	6.403	16	2.490	9	8.061	22	18.105	51	18.105	51	11.51%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%
Versus Talk
	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
Lower	0.300	0	0	1.308	0	0.084	0.250	0.185	0	1.940	4.070	0.100
Low end	4.947	1.714	0.798	4.265	1.227	0.654	1.847	1.692	3.120	3.453	7.900	7.651
Middle	7.492	2.900	3.544	4.675	4.479	5.860	0.990	5.746	4.566	4.674	8.775	4.945
High end	1.684	0.150	3.879	1.044	2.706	4.457	0	2.665	0.490	3.175	5.015	1.525
Higher	0.684	0	0.840	1.022	0.340	1.429	1.540	0.417	0.694	1.950	3.788	1.258
NA	0.209	0.930	0.946	0.671	1.408	2.262	0.300	0.289	0.952	1.178	0.254	0.955
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
Lower	0.300	1	1.392	5	0.435	2	6.110	9	8.237	17	8.237	17	5.24%
Low end	7.460	18	6.145	19	6.659	18	19.003	32	39.268	87	39.268	87	24.97%
Middle	13.936	33	15.014	38	11.302	28	18.395	38	58.647	137	58.647	137	37.29%
High end	5.713	15	8.207	22	3.155	6	9.715	16	26.789	59	26.789	59	17.03%
Higher	1.524	6	2.791	9	2.651	11	6.996	13	13.962	39	13.962	39	8.88%
NA	2.085	10	4.342	25	1.542	8	2.388	14	10.356	57	10.356	57	6.59%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%
Upsized?
	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
Yes	4.144	1.449	4.228	6.126	2.465	1.007	0.626	7.307	3.343	2.347	2.841	6.863
No	9.739	3.979	4.870	4.646	6.978	10.303	3.516	3.403	5.785	12.304	24.264	7.696
Downsized	1.434	0.265	0.910	2.214	0.717	3.435	0.785	0.285	0.694	1.720	2.698	1.875
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	9.821	24	9.598	23	11.276	25	12.050	25	42.746	97	42.746	97	27.18%
No	18.588	51	21.927	74	12.704	42	44.264	84	97.482	251	97.482	251	61.99%
Downsized	2.609	8	6.366	21	1.764	6	6.293	13	17.032	48	17.032	48	10.83%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%
Quick Sale?
	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
Yes	5.357	2.666	5.090	3.839	2.488	2.868	0.700	5.208	1.213	3.135	3.695	6.637
No	9.959	3.028	4.918	9.147	7.672	11.877	4.227	5.788	8.608	13.235	26.108	9.797
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
Yes	13.112	33	9.195	30	7.121	18	13.467	26	42.895	107	42.895	107	27.28%
No	17.905	50	28.696	88	18.623	55	49.140	96	114.364	289	114.364	289	72.72%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%
Seniority
	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
mortgage	0.209	0	0.819	0	0.249	0.184	0	0	0	0	0	0
senior secured	0.267	0.719	0.637	0.167	2.993	0.540	0.775	2.800	1.675	4.026	8.180	0.960
secured	0	0	0.100	0	0	0	0	0	0	0	0.049	0
senior	13.219	4.359	6.702	10.519	5.806	12.835	2.972	6.679	7.472	10.042	19.018	13.639
senior subordinated	1.621	0.564	1.750	2.225	1.112	1.187	0.880	1.310	0.622	1.450	2.555	1.410
subordinated	0	0.052	0	0.075	0	0	0.300	0.206	0.052	0.852	0	0.425
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
mortgage	1.029	4	0.433	3	0	0	0	0	1.462	7	1.462	7	0.93%
senior secured	1.623	6	3.699	12	5.250	14	13.166	19	23.738	51	23.738	51	15.09%
secured	0.100	1	0	0	0	0	0.049	1	0.149	2	0.149	2	0.09%
senior	24.280	59	29.160	85	17.123	45	42.699	84	113.262	273	113.262	273	72.02%
senior subordinated	3.934	12	4.524	17	2.812	11	5.415	13	16.686	53	16.686	53	10.61%
subordinated	0.052	1	0.075	1	0.558	3	1.277	5	1.962	10	1.962	10	1.25%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%
Moody's Rating
	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
Ba1	0.709	0.300	0.848	2.147	1.391	0.883	0.300	0.206	1.548	1.992	0	0.994
Ba2	1.694	1.198	2.895	2.300	2.339	0.690	0	1.341	0.984	2.681	1.185	1.150
Ba3	1.815	1.372	1.100	1.599	0.663	2.653	0	5.365	1.200	0.465	2.506	1.850
B	0	0	0	0	0	0	0	0	0	0	0	0.220
B1	5.247	0	0	0.875	1.664	0	0.900	0	2.947	2.240	6.675	4.656
B2	2.070	0.470	2.560	1.597	0.745	2.422	1.050	0.292	0.947	3.025	12.505	3.799
B3	1.002	1.494	1.146	0.433	0.925	5.619	1.850	2.430	0.298	1.475	4.073	2.418
Caa1	2.779	0	0.587	1.728	1.177	2.067	0.580	1.175	0.175	2.133	1.795	0.820
Caa2	0	0	0.336	0.800	0.297	0.147	0	0	0	1.750	0.914	0.227
NR	0	0.859	0.536	1.507	0.960	0.265	0.247	0.185	1.723	0.609	0.150	0.300
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
Ba1	1.857	6	4.421	12	2.055	6	2.987	5	11.319	29	11.319	29	7.20%
Ba2	5.787	14	5.328	11	2.326	7	5.016	8	18.457	40	18.457	40	11.74%
Ba3	4.287	10	4.915	11	6.565	13	4.821	10	20.589	44	20.589	44	13.09%
B	0	0	0	0	0	0	0.220	1	0.220	1	0.220	1	0.14%
B1	5.247	7	2.539	9	3.847	9	13.572	19	25.204	44	25.204	44	16.03%
B2	5.101	15	4.763	15	2.289	7	19.329	27	31.481	64	31.481	64	20.02%
B3	3.641	15	6.977	23	4.578	16	7.966	27	23.162	81	23.162	81	14.73%
Caa1	3.366	8	4.973	16	1.930	8	4.748	15	15.016	47	15.016	47	9.55%
Caa2	0.336	1	1.244	4	0	0	2.890	5	4.470	10	4.470	10	2.84%
NR	1.396	7	2.731	17	2.155	7	1.059	5	7.341	36	7.341	36	4.67%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%
Use of Proceeds
	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
Acquisition	7.245	0.150	2.396	0.456	1.891	7.009	0	1.265	1.409	2.045	0	1.960
Capex	0.248	0.420	0.725	0.075	0.125	0.305	0.154	1.750	0	0.600	0.049	0.245
Dividend/recap	0	0.052	0.336	0	0.297	0.593	0	0.442	0.160	1.000	3.716	1.145
GCP	0	0.200	1.178	0.200	0	0.174	0	3.368	0.350	0.370	0.200	3.951
LBO	0.684	1.405	0.525	1.714	1.497	0.362	2.060	2.175	1.350	6.394	14.298	1.300
Redeem notes	2.693	0.324	2.299	1.816	3.073	0.669	0.690	0	0.273	1.050	2.850	1.031
Refinance	1.027	0.969	0.350	3.357	0.674	1.316	1.097	0	2.440	1.500	0.450	2.008
Repay bank debt	1.968	1.726	0.799	2.111	1.482	1.247	0.926	1.994	1.421	0.375	1.450	1.800
Multiple/Other/NA	1.450	0.447	1.400	3.257	1.122	3.071	0	0	2.419	3.037	6.790	2.994
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
Acquisition	9.791	16	9.356	17	2.674	10	4.005	8	25.826	51	25.826	51	16.42%
Capex	1.394	7	0.505	3	1.904	5	0.894	3	4.697	18	4.697	18	2.99%
Dividend/recap	0.388	2	0.890	5	0.602	3	5.860	12	7.741	22	7.741	22	4.92%
GCP	1.378	5	0.374	2	3.718	8	4.521	6	9.991	21	9.991	21	6.35%
LBO	2.614	10	3.573	16	5.585	16	21.992	27	33.763	69	33.763	69	21.47%
Redeem notes	5.316	12	5.557	19	0.963	5	4.931	14	16.767	50	16.767	50	10.66%
Refinance	2.347	7	5.347	15	3.537	7	3.958	11	15.189	40	15.189	40	9.66%
Repay bank debt	4.493	14	4.840	19	4.342	12	3.625	10	17.300	55	17.300	55	11.00%
Multiple/Other/NA	3.297	10	7.449	22	2.419	7	12.821	31	25.986	70	25.986	70	16.52%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%
Industry Sector (by SIC code)
	1/2006	2/2006	3/2006	4/2006	5/2006	6/2006	7/2006	8/2006	9/2006	10/2006	11/2006	12/2006
Agriculture (0xxx)	0.300	0.150	0	0.125	0	0	0.300	0	0	0	0	0.225
Mining (1xxx)	0	0.400	0	0	0	0.175	0	1.650	0	0.897	0.400	0.325
Oil and gas (13xx)	0.825	0	1.050	0.869	0.445	2.158	0.126	0.445	0	0.200	0.650	1.410
Construction (15xx)	0	0.300	0.298	0.400	0	0.525	0	0	0	0	0	0
Manufacturing (2xxx, 3xxx)	2.686	1.358	3.031	3.517	4.011	3.079	1.925	5.224	5.587	5.711	15.358	7.862
Transportation (4xxx)	0	0.300	0.200	0.583	0.130	0	0.200	0.100	0	0	0.598	0.298
Communications (48xx)	3.357	0.382	0.868	2.323	0.880	5.418	0.704	0.935	1.538	2.350	0.500	1.946
Electric, gas, sanitary services (49xx)	4.034	0.449	1.299	0.399	1.880	0.954	1.047	0.391	0.177	2.553	3.132	1.370
Wholesale (5xxx)	0.550	0.650	0.685	1.409	0	0.380	0	0.250	0.150	2.083	1.831	0.893
Finance, insurance, real estate (6xxx)	0.500	0.996	0	1.698	1.377	0	0	0	1.494	0.555	6.200	0.150
Services (7xxx)	2.716	0.709	2.575	1.662	0.502	0.886	0.625	2.000	0.660	2.021	1.135	1.955
Health services (8xxx)	0.347	0	0	0	0.935	1.171	0	0	0.215	0	0	0
Total	15.316	5.694	10.008	12.986	10.160	14.745	4.927	10.995	9.821	16.370	29.803	16.434
	Q1/2006	Count	Q2/2006	Count	Q3/2006	Count	Q4/2006	Count	YTD	Count	Total	Count	YTD Share
Agriculture (0xxx)	0.450	2	0.125	1	0.300	1	0.225	1	1.100	5	1.100	5	0.70%
Mining (1xxx)	0.400	1	0.175	1	1.650	3	1.622	5	3.847	10	3.847	10	2.45%
Oil and gas (13xx)	1.876	6	3.472	11	0.571	4	2.260	5	8.179	26	8.179	26	5.20%
Construction (15xx)	0.598	2	0.925	4	0	0	0	0	1.523	6	1.523	6	0.97%
Manufacturing (2xxx, 3xxx)	7.075	21	10.607	31	12.736	28	28.931	47	59.349	127	59.349	127	37.74%
Transportation (4xxx)	0.500	2	0.713	4	0.300	2	0.896	5	2.409	13	2.409	13	1.53%
Communications (48xx)	4.608	13	8.621	15	3.176	8	4.796	11	21.200	47	21.200	47	13.48%
Electric, gas, sanitary services (49xx)	5.783	10	3.233	14	1.616	7	7.055	13	17.687	44	17.687	44	11.25%
Wholesale (5xxx)	1.885	5	1.789	9	0.400	2	4.806	14	8.881	30	8.881	30	5.65%
Finance, insurance, real estate (6xxx)	1.496	2	3.075	8	1.494	6	6.905	9	12.970	25	12.970	25	8.25%
Services (7xxx)	6.000	17	3.050	14	3.285	11	5.111	12	17.447	54	17.447	54	11.09%
Health services (8xxx)	0.347	2	2.106	6	0.215	1	0	0	2.668	9	2.668	9	1.70%
Total	31.017	83	37.891	118	25.744	73	62.607	122	157.259	396	157.259	396	100.00%

Criteria

• The tables include all underwritten dollar-denominated offerings sold in the U.S. as public or Rule 144A deals reported to Prospect News.

• Offerings are included in the time period in which they price.

• Issues maturing in 397 days or less are excluded.

• Convertibles, trust preferreds, capital securities and preferred stock are excluded.

• Fixed-rate medium-term notes with a face value above $100 million are included. All other MTNs are excluded.

• Deals rated investment-grade by either Standard & Poor's or Moody's Investors Service are excluded but deals not rated by both are included.

• Amounts are based on the total sales price (face amount multiplied by the offering price

• Units made up of a bond and a warrant are included; other units are excluded.

• Sovereign issues are excluded.

• Each tranche is counted as a separate deal.

• Passthroughs, collateral trust and equipment trust certificates are included.

• Best efforts and non-underwritten deals are excluded as are remarketings.

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