(February 2012)The Sealed Air Corp (SEE) does. Have you ever opened up a box a found it filled with plastic clear pillows filled with air? Then you are familiar with the company.
Today, we will be looking at the paper and packaging industry. Janney, a respected mid-tier brokerage firm, recently upgraded its opinion of bonds from paper and packaging companies to “overweight” – the equivalent of buy.
Paper / Forest Products bonds, a sub-category of Manufacturing are yielding significantly more than investment grade bonds in general and its broad category of manufacturing. (Yield to Worst Data from Yield Book)
|Industry||Yield To Worst||1 YR ago – Yield To Worst|
|All Investment Grade||3.31%||4.05%|
|Paper / Forest Products||4.41%||5.25%|
Why does Janney think that paper and packaging bonds represent value?
Janney did not recommend any particular companies or debt issues. However, Dortmar (UFS), Sealed Air Corp (SEE), Boise Inc (BZ) have bonds yielding between 5 -7 %. Please note, these bonds are a little below investment grade.