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CREDIT SUISSE HIGH YIELD CREDIT FUND

Regulatory Filings Sep 15, 2017

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N-Q 1 d246083dnq.htm CS HIGH YIELD BOND FUND CS HIGH YIELD BOND FUND

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-08777

CREDIT SUISSE HIGH YIELD BOND FUND

(Exact name of registrant as specified in charter)

c/o Credit Suisse Asset Management, LLC

One Madison Avenue

New York, New York 10010

(Address of principal executive offices) (Zip code)

John G. Popp

One Madison Avenue

New York, New York 10010

(Name and address of agent for service)

Registrant’s telephone number, including area code: (212) 325-2000
Date of fiscal year-end: October 31st
Date of reporting period: May 1, 2017 to July 31, 2017

Item 1: Schedule of Investments

Credit Suisse High Yield Bond Fund

Schedule of Investments

July 31, 2017 (unaudited)

Par (000) Ratings† (S&P/Moody’s) Value
CORPORATE BONDS (113.0%)
Advertising (3.2%)
$ 885 Clear Channel Worldwide Holdings, Inc., Series A, Global Company Guaranteed Notes (Callable
11/15/17 @ 103.25) (B, B2) 11/15/22 6.500 $ 915,975
2,414 Clear Channel Worldwide Holdings, Inc., Series B, Global Company Guaranteed Notes (Callable
11/15/17 @ 103.25) (B, B2) 11/15/22 6.500 2,513,578
1,800 Nexstar Broadcasting, Inc., Rule 144A, Company Guaranteed Notes (Callable 02/15/18 @ 103.06) (1),(2) (B+, B3) 02/15/22 6.125 1,890,000
3,600 Southern Graphics, Inc., Rule 144A, Company Guaranteed Notes (Callable 08/31/17 @ 104.19) (1) (CCC+, Caa1) 10/15/20 8.375 3,654,000
8,973,553
Air Transportation (0.4%)
1,150 United Continental Holdings, Inc., Company Guaranteed Notes (BB-, Ba3) 02/01/24 5.000 1,170,125
Auto Parts & Equipment (1.3%)
850 Adient Global Holdings Ltd., Rule 144A, Company Guaranteed Notes (Callable 08/15/21 @ 102.44) (1) (BB, Ba3) 08/15/26 4.875 866,363
2,650 Cooper-Standard Automotive, Inc., Rule 144A, Company Guaranteed Notes (Callable 11/15/21 @
102.81) (1) (B+, B2) 11/15/26 5.625 2,679,812
3,546,175
Banking (0.5%)
1,450 AssuredPartners, Inc., Rule 144A, Senior Unsecured Notes (Callable 08/15/20 @ 103.50) (1) (CCC+, Caa2e) 08/15/25 7.000 1,464,500
Brokerage (2.7%)
1,400 Jefferies Finance LLC, Rule 144A, Senior Unsecured Notes (Callable 08/31/17 @ 105.16) (1) (B, B1) 04/15/22 6.875 1,414,000
2,950 Jefferies Finance LLC, Rule 144A, Senior Unsecured Notes (Callable 10/15/17 @ 105.63) (1) (B, B1) 04/15/21 7.500 3,082,750
2,925 LPL Holdings, Inc., Rule 144A, Company Guaranteed Notes (Callable 03/15/20 @ 104.31) (1) (B+, B2) 09/15/25 5.750 3,071,250
7,568,000
Building & Construction (0.5%)
1,275 Rialto Corp., Rule 144A, Company Guaranteed Notes (Callable 08/31/17 @ 101.75) (1) (B, B1) 12/01/18 7.000 1,297,313
Building Materials (8.2%)
1,900 Airxcel, Inc., Rule 144A, Senior Secured Notes (Callable 02/15/19 @ 104.25) (1) (B, B2) 02/15/22 8.500 2,018,750
1,150 American Builders & Contractors Supply Co., Inc., Rule 144A, Senior Unsecured
Notes (Callable 12/15/18 @ 104.31) (1) (B+, B3) 12/15/23 5.750 1,224,750
1,525 Eagle Materials, Inc., Company Guaranteed Notes (Callable 08/01/21 @ 102.25) (BBB, Baa3) 08/01/26 4.500 1,601,250
3,925 FBM Finance, Inc., Rule 144A, Senior Secured Notes (Callable 08/15/18 @ 104.13) (1) (B+, B3) 08/15/21 8.250 4,229,187
1,860 NCI Building Systems, Inc., Rule 144A, Company Guaranteed Notes (Callable 01/15/18 @ 106.19) (1) (BB, B3) 01/15/23 8.250 2,018,100
3,650 Omnimax International, Inc., Rule 144A, Senior Secured Notes (Callable 02/15/18 @ 109.00) (1) (B-, Caa1) 08/15/20 12.000 3,996,750
2,875 PriSo Acquisition Corp., Rule 144A, Senior Unsecured Notes (Callable 05/15/18 @ 104.50) (1) (CCC+, Caa1) 05/15/23 9.000 3,061,875
1,000 Summit Materials Finance Corp., Global Company Guaranteed Notes (Callable 04/15/19 @
104.25) (BB-, B3) 04/15/22 8.500 1,130,000
1,075 Summit Materials Finance Corp., Global Company Guaranteed Notes (Callable 07/15/18 @
103.06) (BB-, B3) 07/15/23 6.125 1,131,437
975 U.S. Concrete, Inc., Global Company Guaranteed Notes (Callable 06/01/19 @ 104.78) (BB-, B2) 06/01/24 6.375 1,045,688
1,600 USG Corp., Rule 144A, Company Guaranteed Notes (Callable 06/01/22 @ 102.44) (1) (BB+, Ba2) 06/01/27 4.875 1,656,000
23,113,787
Cable & Satellite TV (10.6%)
2,065 Altice Financing S.A., Rule 144A, Senior Secured Notes (Callable 02/15/18 @ 104.97) (1) (BB-, B1) 02/15/23 6.625 2,192,772
2,300 Altice Financing S.A., Rule 144A, Senior Secured Notes (Callable 05/15/21 @ 103.75) (1) (BB-, B1) 05/15/26 7.500 2,555,990
1,200 Altice U.S. Finance I Corp., Rule 144A, Senior Secured Notes (Callable 07/15/18 @ 104.03) (1) (BB, Ba3) 07/15/23 5.375 1,263,000
4,000 Block Communications, Inc., Rule 144A, Senior Unsecured Notes (Callable 02/15/20 @ 103.44) (1) (BB-, Ba3) 02/15/25 6.875 4,320,000
1,315 CSC Holdings LLC, Global Senior Unsecured Notes (B, B2) 06/01/24 5.250 1,368,915
Par (000) Ratings† (S&P/Moody’s) Value
CORPORATE BONDS (continued)
Cable & Satellite TV
$ 525 CSC Holdings LLC, Rule 144A, Company Guaranteed Notes (Callable 04/15/22 @ 102.75) (1) (BB, Ba1) 04/15/27 5.500 $ 560,438
800 CSC Holdings LLC, Rule 144A, Company Guaranteed Notes (Callable 10/15/20 @ 103.31) (1) (BB, Ba1) 10/15/25 6.625 884,000
840 CSC Holdings LLC, Rule 144A, Senior Unsecured Notes (Callable 10/15/20 @ 105.44) (1) (B, B2) 10/15/25 10.875 1,050,000
3,750 Midcontinent Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 08/15/18 @ 105.16) (1) (B, B3) 08/15/23 6.875 4,083,375
650 SFR Group S.A., Rule 144A, Senior Secured Notes (Callable 05/01/21 @ 103.69) (1) (B+, B1) 05/01/26 7.375 706,062
2,800 SFR Group S.A., Rule 144A, Senior Secured Notes (Callable 05/15/19 @ 103.13) (1) (B+, B1) 05/15/24 6.250 2,968,000
1,700 SFR Group S.A., Rule 144A, Senior Secured Notes (Callable 08/31/17 @ 104.50) (1) (B+, B1) 05/15/22 6.000 1,780,716
1,000 Virgin Media Finance PLC, Rule 144A, Company Guaranteed Notes (Callable 04/15/18 @ 103.50) (1),(3) (B, B2) 04/15/23 7.000 1,412,282
1,000 Virgin Media Secured Finance PLC, Rule 144A, Senior Secured Notes (Callable 04/15/22 @ 102.50) (1),(3) (BB-, Ba3) 04/15/27 5.000 1,380,347
3,250 Ziggo Secured Finance B.V., Rule 144A, Senior Secured Notes (Callable 01/15/22 @ 102.75) (1) (BB-, Ba3) 01/15/27 5.500 3,371,875
29,897,772
Chemicals (4.2%)
2,650 A Schulman, Inc., Global Company Guaranteed Notes (Callable 06/01/18 @ 105.16) (B, B3) 06/01/23 6.875 2,782,500
2,100 Alpha U.S. Bidco, Inc., Rule 144A, Company Guaranteed Notes (Callable 02/01/20 @ 103.13) (1) (CCC+, Caa1) 02/01/25 6.250 2,173,500
975 GCP Applied Technologies, Inc. Rule 144A, Company Guaranteed Notes (Callable 02/01/19 @ 104.75) (1) (B+, B1) 02/01/23 9.500 1,112,719
575 Nufarm Australia Ltd., Rule 144A, Company Guaranteed Notes (Callable 08/31/17 @ 103.19) (1) (B+, B1) 10/15/19 6.375 590,094
1,100 PQ Corp., Rule 144A, Senior Secured Notes (Callable 05/15/19 @ 103.38) (1) (B+, B2) 11/15/22 6.750 1,194,072
272 Reichhold Industries, Inc., Rule 144A, Senior Secured Notes (Callable 08/31/17 @ 100.00) (1),(4),(5),(6) (NR, NR) 05/01/18 9.000 9,779
2,200 Tronox Finance LLC, Global Company Guaranteed Notes (Callable 08/31/17 @ 101.59) (B-, Caa1) 08/15/20 6.375 2,216,500
1,000 Valvoline, Inc., Rule 144A, Company Guaranteed Notes (Callable 07/15/19 @ 104.13) (1) (BB, Ba3) 07/15/24 5.500 1,062,500
675 Versum Materials, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/30/21 @ 102.75) (1) (BB, Ba3) 09/30/24 5.500 718,875
11,860,539
Consumer/Commercial/Lease Financing (2.7%)
4,500 Infinity Acquisition Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 08/16/17 @
103.63) (1) (CCC+, Caa2) 08/01/22 7.250 4,297,500
2,450 Ladder Capital Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 09/15/21 @ 100.00) (1) (B+, Ba3) 03/15/22 5.250 2,532,687
775 Lincoln Finance Ltd., Rule 144A, Senior Secured Notes (Callable 04/15/18 @ 103.69) (1) (BB+, B1) 04/15/21 7.375 822,469
7,652,656
Diversified Capital Goods (0.9%)
2,050 Anixter, Inc., Global Company Guaranteed Notes (BB, Ba3) 03/01/23 5.500 2,206,313
360 EnerSys, Rule 144A, Company Guaranteed Notes (Callable 01/30/23 @ 100.00) (1) (BB+, Ba2) 04/30/23 5.000 371,250
2,577,563
Electronics (0.6%)
261 Microsemi Corp., Rule 144A, Company Guaranteed Notes (Callable 01/15/19 @ 106.84) (1) (B+, B2) 04/15/23 9.125 300,803
1,325 NXP Funding LLC, Rule 144A, Company Guaranteed Notes (1) (BBB-, Ba1) 06/01/23 4.625 1,434,551
1,735,354
Energy - Exploration & Production (2.7%)
1,925 Oasis Petroleum, Inc., Company Guaranteed Notes (Callable 08/31/17 @ 103.25) (2) (B+, B3) 11/01/21 6.500 1,910,562
1,981 Stone Energy Corp., Secured Notes (Callable 05/31/20 @ 105.63) (NR, NR) 05/31/22 7.500 1,896,574
Par (000) Ratings† (S&P/Moody’s) Value
CORPORATE BONDS (continued)
Energy - Exploration & Production
$ 3,000 W&T Offshore, Inc., Global Company Guaranteed Notes (Callable 08/31/17 @
100.00) (CC, Ca) 06/15/19 8.500 $ 2,122,500
1,700 Whiting Petroleum Corp., Company Guaranteed Notes (Callable 12/15/20 @ 100.00) (2) (BB-, B3) 03/15/21 5.750 1,619,250
7,548,886
Food - Wholesale (3.4%)
1,425 B&G Foods, Inc., Company Guaranteed Notes (Callable 04/01/20 @ 103.94) (B+, B3) 04/01/25 5.250 1,489,125
1,850 Clearwater Seafoods, Inc., Rule 144A, Senior Unsecured Notes (Callable 05/01/20 @ 105.16) (1) (B+, B3) 05/01/25 6.875 1,979,500
1,100 Lamb Weston Holdings, Inc., Rule 144A, Company Guaranteed Notes (Callable 11/01/21 @ 102.31) (1) (BB, Ba3) 11/01/24 4.625 1,153,625
1,000 Lamb Weston Holdings, Inc., Rule 144A, Company Guaranteed Notes (Callable 11/01/21 @ 102.44) (1) (BB, Ba3) 11/01/26 4.875 1,050,410
750 Post Holdings, Inc., Rule 144A, Company Guaranteed Notes (Callable 03/01/20 @ 104.13) (1) (B, B3) 03/01/25 5.500 793,125
1,350 Post Holdings, Inc., Rule 144A, Company Guaranteed Notes (Callable 03/01/22 @ 102.88) (1) (B, B3) 03/01/27 5.750 1,437,750
1,550 U.S. Foods, Inc., Rule 144A, Company Guaranteed Notes (Callable 06/15/19 @ 102.94) (1) (B+, B3) 06/15/24 5.875 1,625,562
9,529,097
Gaming (1.8%)
1,500 Gateway Casinos & Entertainment Ltd., Rule 144A, Secured Notes (Callable 03/01/20 @
104.13) (1) (CCC+, Caa1) 03/01/24 8.250 1,563,750
2,200 Jacobs Entertainment, Inc., Rule 144A, Secured Notes (Callable 02/01/20 @ 105.91) (1) (B, B2) 02/01/24 7.875 2,392,500
990 Safari Holding Verwaltungs GmbH, Rule 144A, Senior Secured Notes (Callable 08/30/17 @ 104.13) (1),(7) (B, B2) 02/15/21 8.250 1,217,680
5,173,930
Gas Distribution (2.9%)
3,469 Energy Transfer Equity LP, Senior Secured Notes (BB-, Ba2) 10/15/20 7.500 3,937,315
2,750 Genesis Energy Finance Corp., Company Guaranteed Notes (Callable 06/15/19 @ 102.81) (B+, B1) 06/15/24 5.625 2,667,500
1,450 Genesis Energy Finance Corp., Global Company Guaranteed Notes (Callable 08/31/17 @
102.88) (B+, B1) 02/15/21 5.750 1,471,750
8,076,565
Health Facilities (3.7%)
2,625 Care Capital Properties LP, Global Company Guaranteed Notes (Callable 05/15/26 @
100.00) (BBB-, Baa3) 08/15/26 5.125 2,681,540
2,200 HCA, Inc., Senior Secured Notes (BBB-, Ba1) 03/15/24 5.000 2,340,800
1,500 Surgery Center Holdings, Inc., Rule 144A, Company Guaranteed Notes (Callable 07/01/20 @ 103.38) (1) (CCC+, Caa2) 07/01/25 6.750 1,545,000
2,100 Tenet Healthcare Corp., Global Senior Unsecured Notes (CCC+, Caa1) 04/01/22 8.125 2,264,850
1,500 Tenet Healthcare Corp., Rule 144A, Secured Notes (Callable 05/01/20 @ 102.56) (1),(2) (B-, Ba3) 05/01/25 5.125 1,513,125
10,345,315
Health Services (1.2%)
1,000 AMN Healthcare, Inc., Rule 144A, Company Guaranteed Notes (Callable 10/01/19 @ 103.84) (1) (B+, Ba3) 10/01/24 5.125 1,030,000
2,375 CareTrust Capital Corp., Company Guaranteed Notes (Callable 06/01/20 @ 103.94) (BB-, B1) 06/01/25 5.250 2,443,281
3,473,281
Hotels (1.1%)
3,000 ESH Hospitality, Inc., Rule 144A, Company Guaranteed Notes (Callable 05/01/20 @ 102.63) (1) (BB-, B2) 05/01/25 5.250 3,142,500
Insurance Brokerage (2.7%)
2,100 Hub Holdings Finance, Inc., 8.125% Cash, 8.875% PIK, Rule 144A, Senior Unsecured
Notes (Callable 08/31/17 @ 100.00) (1),(8) (CCC+, Caa2) 07/15/19 17.000 2,102,625
2,450 HUB International Ltd., Rule 144A, Senior Unsecured Notes (Callable 08/31/17 @ 105.91) (1) (CCC+, Caa2) 10/01/21 7.875 2,566,375
Par (000) Ratings† (S&P/Moody’s) Value
CORPORATE BONDS (continued)
Insurance Brokerage
$ 2,975 NFP Corp., Rule 144A, Senior Unsecured Notes (Callable 07/15/20 @ 103.44) (1) (CCC+, Caa2) 07/15/25 6.875 $ 3,034,128
7,703,128
Investments & Misc. Financial Services (1.0%)
2,750 Orchestra Co-Issuer, Inc., Rule 144A (Callable
06/15/19 @ 103.38) (1) (B-, NR) 06/15/22 6.750 2,894,375
Machinery (1.6%)
1,575 Terex Corp., Rule 144A, Company Guaranteed Notes (Callable 02/01/20 @ 104.22) (1) (BB, B2) 02/01/25 5.625 1,643,906
2,625 Vertiv Intermediate Holding Corp., 12.000% Cash, 13.000% PIK, Rule 144A, Senior Unsecured
Notes (Callable 02/15/19 @ 106.00) (1),(8) (B-, Caa1) 02/15/22 25.000 2,897,344
4,541,250
Media - Diversified (1.4%)
1,000 National CineMedia LLC, Global Senior Secured Notes (Callable 08/31/17 @ 103.00) (B+, Ba3) 04/15/22 6.000 1,032,500
2,870 National CineMedia LLC, Global Senior Unsecured Notes (Callable 08/15/21 @ 102.88) (B-, B3) 08/15/26 5.750 2,769,550
3,802,050
Media Content (2.9%)
2,125 EMI Music Publishing Group North America Holdings, Inc., Rule 144A, Company Guaranteed
Notes (Callable 06/15/19 @ 105.72) (1) (B, B3) 06/15/24 7.625 2,364,063
550 Netflix, Inc., Global Senior Unsecured Notes (B+, B1) 03/01/24 5.750 606,375
750 Netflix, Inc., Global Senior Unsecured Notes (B+, B1) 02/15/25 5.875 841,875
525 Nexstar Broadcasting, Inc., Rule 144A, Company Guaranteed Notes (Callable 08/01/19 @ 104.22) (1) (B+, B3) 08/01/24 5.625 544,031
1,710 Sinclair Television Group, Inc., Global Company Guaranteed Notes (Callable 10/01/17 @
103.06) (B+, B1) 10/01/22 6.125 1,778,400
900 The EW Scripps Co., Rule 144A, Company Guaranteed Notes (Callable 05/15/20 @ 103.84) (1) (BB, Ba2) 05/15/25 5.125 933,750
1,000 WMG Acquisition Corp., Rule 144A, Senior Secured Notes (Callable 11/01/19 @ 103.66) (1) (B+, Ba3) 11/01/24 4.875 1,032,500
8,100,994
Metals & Mining - Excluding Steel (3.8%)
2,300 Eldorado Gold Corp., Rule 144A, Company Guaranteed Notes (Callable 08/31/17 @ 103.06) (1) (B+, B1) 12/15/20 6.125 2,357,500
2,000 Kaiser Aluminum Corp., Global Company Guaranteed Notes (Callable 05/15/19 @ 104.41) (BB+, Ba3) 05/15/24 5.875 2,130,000
4,525 Noranda Aluminum Acquisition Corp., Global Company Guaranteed Notes (Callable 08/31/17 @
102.75) (4),(5) (NR, NR) 06/01/19 11.000 272
550 Peabody Energy Corp., Rule 144A, Senior Secured Notes (Callable 03/31/19 @ 103.00) (1) (B+, Ba3) 03/31/22 6.000 563,062
2,000 Peabody Energy Corp., Rule 144A, Senior Secured Notes (Callable 03/31/20 @ 104.78) (1) (B+, Ba3) 03/31/25 6.375 2,027,500
3,750 Taseko Mines Ltd., Rule 144A, Senior Secured Notes (Callable 06/15/19 @ 104.38) (1),(2) (B-, B3) 06/15/22 8.750 3,735,937
10,814,271
Non - Electric Utilities (0.2%)
675 CD&R Waterworks Merger Sub LLC, Rule 144A, Senior Unsecured Notes (Callable 08/15/20 @
103.06) (1) (B-, Caa1) 08/15/25 6.125 690,188
Oil Field Equipment & Services (5.9%)
3,330 FTS International, Inc., Global Senior Secured Notes (Callable 08/31/17 @ 104.69) (CCC, Ca) 05/01/22 6.250 2,905,425
2,000 KCA Deutag UK Finance PLC, Rule 144A, Senior Secured Notes (Callable 04/01/20 @ 109.88) (1),(2) (CCC+, Caa1) 04/01/22 9.875 2,020,000
585 Nor Offshore SPV Ltd., PIK, Senior Secured Notes (Callable 08/30/17 @ 100.00) (8) (NR, NR) 02/04/20 8.400 208,728
1,575 Pacific Drilling V Ltd., Rule 144A, Senior Secured Notes (Callable 08/28/17 @ 100.00) (1) (NR, Ca) 12/01/17 7.250 767,813
2,050 Parker Drilling Co., Global Company Guaranteed Notes (Callable 01/15/18 @ 103.38) (B-, Caa1) 07/15/22 6.750 1,593,875
200 Parker Drilling Co., Global Company Guaranteed Notes (Callable 08/31/17 @ 101.88) (B-, Caa1) 08/01/20 7.500 174,000
Par (000) Ratings† (S&P/Moody’s) Value
CORPORATE BONDS (continued)
Oil Field Equipment & Services
$ 1,105 Pioneer Energy Services Corp., Global Company Guaranteed Notes (Callable 08/31/17 @
104.59) (B-, Ca) 03/15/22 6.125 $ 895,050
1,500 Shelf Drilling Holdings Ltd., Rule 144A, Secured Notes (Callable 08/31/17 @ 102.16) (1) (B-, B2) 11/01/18 8.625 1,500,000
2,865 Shelf Drilling Holdings Ltd., Rule 144A, Secured Notes (Callable 08/31/17 @ 104.31) (1) (B-, B2) 11/02/20 9.500 2,836,127
1,390 Sidewinder Drilling, Inc. (5),(6) (NR, NR) 02/14/20 12.000 1,292,831
1,600 Transocean, Inc., Global Company Guaranteed Notes (Callable 07/15/22 @ 100.00) (2) (B+, Caa1) 10/15/22 5.800 1,518,208
850 Trinidad Drilling Ltd., Rule 144A, Company Guaranteed Notes (Callable 02/15/20 @ 104.97) (1) (BB-, Caa1) 02/15/25 6.625 805,375
16,517,432
Oil Refining & Marketing (1.9%)
1,000 CITGO Petroleum Corp., Rule 144A, Senior Secured Notes (Callable 08/31/17 @ 104.69) (1) (B+, B3) 08/15/22 6.250 1,022,500
4,100 Coffeyville Finance, Inc., Global Company Guaranteed Notes (Callable 11/01/17 @
103.25) (BB-, B1) 11/01/22 6.500 4,182,000
5,204,500
Packaging (2.6%)
1,000 Ardagh Holdings U.S.A., Inc., Rule 144A, Company Guaranteed Notes (Callable 02/15/20 @ 104.50) (1) (B, B3) 02/15/25 6.000 1,067,500
1,250 Ardagh Holdings U.S.A., Inc., Rule 144A, Company Guaranteed Notes (Callable 05/15/19 @ 105.44) (1) (B, B3) 05/15/24 7.250 1,384,375
1,150 Ardagh Holdings U.S.A., Inc., Rule 144A, Senior Secured Notes (Callable 05/15/19 @ 102.31) (1) (BB, Ba3) 05/15/23 4.625 1,180,188
2,200 Flex Acquisition Co., Inc., Rule 144A, Senior Unsecured Notes (Callable 01/15/20 @ 103.44) (1) (CCC+, Caa1) 01/15/25 6.875 2,314,125
1,050 SIG Combibloc Holdings S.C.A., Rule 144A, Senior Secured Notes (Callable 02/15/18 @ 103.88) (1),(7) (B-, Caa1) 02/15/23 7.750 1,317,365
7,263,553
Personal & Household Products (1.3%)
1,250 First Quality Finance Co., Inc., Rule 144A, Company Guaranteed Notes (Callable 07/01/20 @
103.75) (1) (BB-, B1) 07/01/25 5.000 1,293,500
2,000 High Ridge Brands Co., Rule 144A, Company Guaranteed Notes (Callable 03/15/20 @ 104.44) (1) (CCC+, Caa1) 03/15/25 8.875 1,995,000
300 Prestige Brands, Inc., Rule 144A, Company Guaranteed Notes (Callable 03/01/19 @ 104.78) (1) (B-, Caa1) 03/01/24 6.375 323,625
3,612,125
Pharmaceuticals (3.6%)
1,850 AMAG Pharmaceuticals, Inc., Rule 144A, Company Guaranteed Notes (Callable 09/01/18 @ 105.91) (1) (BB-, Ba3) 09/01/23 7.875 1,831,500
1,350 Endo Finance LLC, Rule 144A, Senior Secured Notes (Callable 04/15/20 @ 102.94) (1),(2) (BB, Ba2) 10/15/24 5.875 1,404,000
1,100 Valeant Pharmaceuticals International, Inc., Rule 144A, Company Guaranteed Notes (Callable
04/15/20 @ 103.06) (1) (B-, Caa1) 04/15/25 6.125 940,500
3,050 Valeant Pharmaceuticals International, Inc., Rule 144A, Company Guaranteed Notes (Callable
05/15/18 @ 102.94) (1) (B-, Caa1) 05/15/23 5.875 2,638,250
205 Valeant Pharmaceuticals International, Inc., Rule 144A, Company Guaranteed Notes (Callable
08/15/17 @ 100.00) (1),(2) (B-, Caa1) 08/15/18 6.750 205,307
2,850 Valeant Pharmaceuticals International, Inc., Rule 144A, Senior Secured Notes (Callable 03/15/20
@ 103.50) (1) (BB-, Ba3) 03/15/24 7.000 3,042,375
10,061,932
Real Estate Investment Trusts (4.4%)
1,400 iStar, Inc., Senior Unsecured Notes (Callable 04/01/19 @ 103.00) (B+, B2) 04/01/22 6.000 1,452,500
4,400 iStar, Inc., Senior Unsecured Notes (Callable 08/31/17 @ 101.25) (B+, B2) 07/01/19 5.000 4,460,500
1,825 QCP SNF West/Central/East/AL REIT LLC, Rule 144A, Secured Notes (Callable 11/01/19 @ 104.06) (1) (B+, Caa2) 11/01/23 8.125 1,875,187
2,500 QTS Finance Corp., Global Company Guaranteed Notes (Callable 08/31/17 @ 104.41) (BB, B1) 08/01/22 5.875 2,621,875
1,800 Starwood Property Trust, Inc., Global Senior Unsecured Notes (Callable 09/15/21 @
100.00) (BB-, Ba3e) 12/15/21 5.000 1,881,000
12,291,062
Par (000) Ratings† (S&P/Moody’s) Value
CORPORATE BONDS (continued)
Recreation & Travel (2.7%)
$ 3,000 ClubCorp Club Operations, Inc., Rule 144A, Company Guaranteed Notes (Callable 12/15/18 @
106.19) (1) (B-, B3) 12/15/23 8.250 $ 3,360,000
600 Six Flags Entertainment Corp., Rule 144A, Company Guaranteed Notes (Callable 04/15/22 @ 102.75) (1) (BB-, B2) 04/15/27 5.500 621,750
2,150 Six Flags Entertainment Corp., Rule 144A, Company Guaranteed Notes (Callable 07/31/19 @ 103.66) (1) (BB-, B2) 07/31/24 4.875 2,193,000
1,320 Speedway Motorsports, Inc., Global Company Guaranteed Notes (Callable 02/01/18 @
103.84) (BB+, Ba2) 02/01/23 5.125 1,359,600
7,534,350
Restaurants (0.3%)
925 Pizza Hut Holdings LLC, Rule 144A, Company Guaranteed Notes (Callable 06/01/22 @ 102.38) (1) (BB, B1) 06/01/27 4.750 956,219
Software - Services (3.8%)
900 CDK Global, Inc., Rule 144A, Senior Unsecured Notes (Callable 06/01/22 @ 102.44) (1) (BB+, Ba1) 06/01/27 4.875 927,000
1,825 First Data Corp., Rule 144A, Secured Notes (Callable 01/15/19 @ 102.88) (1) (B, B3) 01/15/24 5.750 1,934,500
1,450 Infor Software Parent, Inc., 7.125% Cash, 7.875% PIK, Rule 144A, Company Guaranteed
Notes (Callable 08/31/17 @ 103.56) (1),(8) (CCC, Caa2) 05/01/21 15.000 1,508,000
900 j2 Global Co-Obligor, Inc., Rule 144A, Company
Guaranteed Notes (Callable 07/15/20 @ 104.55) (1) (BB, Ba3) 07/15/25 6.000 941,625
1,050 NeuStar, Inc., Global Company Guaranteed Notes (Callable 01/15/18 @ 102.25) (B, B2) 01/15/23 4.500 1,081,500
3,692 Syniverse Foreign Holdings Corp., Rule 144A, Company Guaranteed Notes (Callable 01/15/19 @
104.56) (1) (B, Caa3) 01/15/22 9.125 3,719,690
639 Syniverse Holdings, Inc., Global Company Guaranteed Notes (Callable 08/31/17 @ 100.00) (CCC+, Caa3) 01/15/19 9.125 626,220
10,738,535
Specialty Retail (1.4%)
3,920 Penske Automotive Group, Inc., Global Company Guaranteed Notes (Callable 10/01/17 @
102.88) (B+, B1) 10/01/22 5.750 4,067,000
Steel Producers/Products (1.0%)
450 Commercial Metals Co., Senior Unsecured Notes (Callable 07/15/22 @ 102.69) (BB+, Ba2) 07/15/27 5.375 470,250
2,000 Zekelman Industries, Inc., Rule 144A, Senior Secured Notes (Callable 06/15/19 @ 104.94) (1) (B, Caa1) 06/15/23 9.875 2,270,000
2,740,250
Support - Services (8.5%)
3,100 Avison Young Canada, Inc., Rule 144A, Senior Secured Notes (Callable 12/15/19 @ 104.75) (1) (B+, B3) 12/15/21 9.500 3,134,875
3,000 Brand Energy & Infrastructure Services, Inc., Rule 144A, Senior Unsecured
Notes (Callable 07/15/20 @ 106.34) (1) (CCC+, Caa2) 07/15/25 8.500 3,202,500
2,550 Gartner, Inc., Rule 144A, Company Guaranteed Notes (Callable 04/01/20 @ 103.84) (1) (BB-, B1) 04/01/25 5.125 2,703,000
3,262 H&E Equipment Services, Inc., Global Company Guaranteed Notes (Callable 09/01/17 @
103.50) (BB-, B3) 09/01/22 7.000 3,392,480
1,800 Infor U.S., Inc., Company Guaranteed Notes (Callable 05/15/18 @ 102.88) (7) (CCC+, Caa1) 05/15/22 5.750 2,226,189
1,450 KAR Auction Services, Inc., Rule 144A, Company Guaranteed Notes (Callable 06/01/20 @ 103.84) (1) (B, B3) 06/01/25 5.125 1,515,250
3,050 Tempo Acquisition Finance Corp., Rule 144A, Senior Unsecured Notes (Callable 06/01/20 @ 103.38) (1) (CCC+, Caa1) 06/01/25 6.750 3,170,231
1,000 United Rentals North America, Inc., Company Guaranteed Notes (Callable 05/15/22 @
102.75) (BB-, Ba3) 05/15/27 5.500 1,057,500
650 United Rentals North America, Inc., Senior Unsecured Notes (Callable 01/15/23 @
102.44) (BB-, Ba3) 01/15/28 4.875 653,250
2,505 Xerox Business Services LLC, Rule 144A, Company Guaranteed Notes (Callable 12/15/20 @ 105.25) (1) (B+, B2) 12/15/24 10.500 2,937,112
23,992,387
Tech Hardware & Equipment (2.5%)
550 CDW Finance Corp., Company Guaranteed Notes (Callable 03/01/20 @ 103.75) (BB-, Ba3) 09/01/25 5.000 577,159
950 CommScope Technologies LLC, Rule 144A, Company Guaranteed Notes (Callable 03/15/22 @ 102.50) (1) (BB-, Ba3) 03/15/27 5.000 954,750
1,950 CommScope Technologies LLC, Rule 144A, Company Guaranteed Notes (Callable 06/15/20 @ 103.00) (1) (BB-, Ba3) 06/15/25 6.000 2,106,000
Par (000) Ratings† (S&P/Moody’s) Value
CORPORATE BONDS (continued)
Tech Hardware & Equipment
$ 2,385 Riverbed Technology, Inc., Rule 144A, Company Guaranteed Notes (Callable 03/01/18 @ 104.44) (1),(2) (CCC+, Caa1) 03/01/23 8.875 $ 2,376,056
800 Western Digital Corp., Rule 144A, Senior Secured Notes (Callable 04/01/19 @ 103.69) (1) (BBB-, Ba1) 04/01/23 7.375 880,000
6,893,965
Telecom - Satellite (1.6%)
3,000 Hughes Satellite Systems Corp., Global Company Guaranteed Notes (BB-, B3) 06/15/21 7.625 3,453,750
1,000 Hughes Satellite Systems Corp., Global Senior Secured Notes (BBB-, Ba2) 08/01/26 5.250 1,052,500
4,506,250
Telecom - Wireless (0.6%)
1,400 T-Mobile U.S.A., Inc., Global Company Guaranteed Notes
(Callable 01/15/21 @ 103.25) (BB, Ba3) 01/15/26 6.500 1,561,000
Telecom - Wireline Integrated & Services (2.2%)
700 CyrusOne Finance Corp., Rule 144A, Company Guaranteed Notes (Callable 03/15/22 @ 102.69) (1) (BB, Ba3) 03/15/27 5.375 741,125
725 Equinix, Inc., Senior Unsecured Notes (Callable 05/15/22 @ 102.69) (BB+, B1) 05/15/27 5.375 785,719
1,175 GTT Communications, Inc., Rule 144A, Company Guaranteed Notes (Callable 12/31/19 @ 105.91) (1) (B-, Caa1) 12/31/24 7.875 1,266,063
1,000 Zayo Capital, Inc., Global Company Guaranteed Notes (Callable 04/01/18 @ 104.50) (B, B3) 04/01/23 6.000 1,058,750
2,175 Zayo Capital, Inc., Rule 144A, Company Guaranteed Notes (Callable 01/15/22 @ 102.88) (1) (B, B3) 01/15/27 5.750 2,310,937
6,162,594
Theaters & Entertainment (2.5%)
500 AMC Entertainment Holdings, Inc., Global Company Guaranteed Notes (Callable 05/15/22 @ 103.06) (2) (B+, B2) 05/15/27 6.125 515,575
1,600 AMC Entertainment Holdings, Inc., Global Company Guaranteed Notes (Callable 08/31/17 @
104.41) (B+, B2) 02/15/22 5.875 1,670,000
855 AMC Entertainment Holdings, Inc., Global Company Guaranteed Notes (Callable 11/15/21 @
102.94) (B+, B2) 11/15/26 5.875 874,152
1,475 Carmike Cinemas, Inc., Rule 144A, Secured Notes (Callable 06/15/18 @ 104.50) (1) (BB, Ba1) 06/15/23 6.000 1,567,188
2,200 Live Nation Entertainment, Inc., Rule 144A, Company Guaranteed Notes (Callable 11/01/19 @
103.66) (1) (B+, B3) 11/01/24 4.875 2,260,500
6,887,415
TOTAL CORPORATE BONDS (Cost $308,803,825) 317,683,736
BANK LOANS (21.1%)
Aerospace& Defense (0.7%)
1,950 Sequa Mezzanine Holdings LLC (9) (B-, B3) 11/28/21 6.814 1,970,668
Auto Parts & Equipment (1.0%)
740 Dayco Products LLC (9) (B+, B2) 05/19/23 6.234 745,550
2,800 Jason, Inc. (5),(9) (CCC+, Caa3) 06/30/22 9.296 2,152,258
2,897,808
Beverages (0.7%)
2,000 The Winebow Group, Inc. (5),(9) (CCC, Caa1) 12/31/21 8.734 1,870,000
Chemicals (3.6%)
2,118 Ascend Performance Materials Operations
LLC (9) (B-, B2) 08/12/22 6.796 2,141,898
1,000 ASP Chromaflo Intermediate Holdings,
Inc. (9) (CCC, Caa2) 11/14/24 9.234 998,750
1,000 SK Spice Sarl (9) (NR, Caa1) 07/11/25 9.474 1,015,000
2,500 Solenis International LP (9) (B-, Caa1) 07/31/22 7.952 2,513,025
3,500 Vantage Specialty Chemicals,
Inc. (5),(9) (CCC, Caa1) 02/05/22 9.984 3,517,500
10,186,173
Diversified Capital Goods (0.7%)
2,045 Dynacast International LLC (9) (B-, Caa1) 01/30/23 9.796 2,055,225
Electronics (0.4%)
1,000 CPI International, Inc. (9) (CCC+, Caa2) 07/25/25 10.500 1,005,000
Energy - Exploration & Production (1.2%)
1,750 Chief Exploration & Development
LLC (9) (NR, NR) 05/16/21 7.932 1,709,172
Par (000) Ratings† (S&P/Moody’s) Value
BANK LOANS (continued)
Energy - Exploration & Production
$ 2,000 W&T Offshore, Inc. (9) (CCC, Caa2) 05/15/20 9.000 $ 1,710,000
3,419,172
Gaming (1.4%)
3,000 The Intertain Group
Ltd. (3),(5),(9) (B, Caa1) 12/16/22 10.000 3,994,600
Health Facility (0.4%)
1,173 Western Dental Services, Inc. (9) (B-, B3) 06/23/23 6.484 1,181,446
Insurance Brokerage (0.7%)
1,995 Acrisure LLC (9) (B, B2) 11/22/23 6.296 2,024,925
Investments & Misc. Financial Services (1.1%)
3,000 Mergermarket U.S.A., Inc. (9) (CCC+, Caa2) 02/04/22 7.723 3,000,000
Machinery (1.9%)
2,750 CPM Holdings, Inc. (5),(9) (B-, Caa1) 04/10/23 10.476 2,805,000
2,475 WireCo WorldGroup, Inc. (9) (B-, Caa2) 09/30/24 10.202 2,495,889
5,300,889
Media Content (0.4%)
1,000 DLG Acquisitions Ltd. (7),(9) (CCC+, Caa2) 06/30/22 8.250 1,192,117
Oil Refining & Marketing (0.9%)
2,902 Philadelphia Energy Solutions
LLC (9) (B+, B3) 04/04/18 6.257 2,625,871
Personal & Household Products (1.4%)
1,990 ABG Intermediate Holdings 2
LLC (5),(9) (CCC+, Caa1) 05/27/22 9.796 2,014,875
2,300 Comfort Holding LLC (9) (CCC-, Caa1) 01/17/25 11.135 1,966,500
3,981,375
Recreation & Travel (1.1%)
3,000 Legendary Pictures Funding
LLC (5),(9) (NR, NR) 04/22/20 7.296 3,003,750
Software - Services (2.1%)
1,309 Almonde, Inc. (9) (CCC+, Caa2) 06/13/25 8.459 1,347,951
2,590 Aricent Technologies (9) (CCC, Caa2) 04/14/22 9.724 2,617,519
1,250 Eze Castle Software, Inc. (9) (CCC+, Caa1) 04/05/21 7.796 1,253,125
741 LDiscovery LLC (9) (B+, B2) 12/09/22 7.055 697,113
5,915,708
Support - Services (0.5%)
500 Pike Corp. (9) (CCC+, Caa1) 09/02/24 9.240 508,750
2,671 Sprint Industrial Holdings
LLC (5),(9) (CC, Caa3) 11/14/19 13.546 734,534
1,243,284
Telecom - Wireline Integrated & Services (0.8%)
2,250 Omnitracs, Inc. (9) (CCC+, Caa1) 05/25/21 9.050 2,261,250
Theaters & Entertainment (0.1%)
320 NEG Holdings LLC (5),(6),(9) (NR, NR) 10/17/22 9.296 237,173
TOTAL BANK LOANS (Cost $58,691,825) 59,366,434
Number of Shares
COMMON STOCKS (1.8%)
Auto Parts & Equipment (0.5%)
109,693 UCI International,
Inc. (5),(6),(10) 1,371,163
Building & Construction (0.0%)
13 White Forest Resources,
Inc. (5),(6),(10) 161
Building Materials (0.0%)
619 Dayton Superior
Corp. (5),(6),(10) —
Chemicals (0.0%)
4,893 Huntsman Corp. (5) 130,252
Oil Field Equipment & Services (0.4%)
26 Sidewinder Drilling, Inc., Series
A (5),(6),(10) 1,009,362
Oil, Gas & Consumable Fuels (0.6%)
5,416 Bonanza Creek Energy,
Inc. (10) 157,281
Number of Shares
COMMON STOCKS (continued)
Oil, Gas & Consumable Fuels
71,901 Stone Energy Corp. (10) $ 1,551,623
1,708,904
Support - Services (0.3%)
2,100 LTR Holdings LLC (10) 798,000
692 Sprint Industrial Holdings LLC,
Class G (6),(10) —
63 Sprint Industrial Holdings LLC,
Class H (6),(10) —
153 Sprint Industrial Holdings LLC,
Class I (6),(10) —
798,000
Theaters & Entertainment (0.0%)
40 NEG Holdings LLC, Litigation Trust
Units (5),(6),(10) —
TOTAL COMMON STOCKS (Cost $7,103,613) 5,017,842
PREFERRED STOCK (0.0%)
Building Materials (0.0%)
688 Dayton Superior Corp. (5),(6),(10) (Cost
$250,835) —
SHORT-TERM INVESTMENTS (6.5%)
10,207,713 State Street Navigator Securities Lending Government Money Market Portfolio, 0.99% (11) 10,207,713
Par (000) Maturity Rate%
$ 8,021 State Street Bank and Trust Co. Euro Time Deposit 08/01/17 0.120 8,020,511
TOTAL SHORT-TERM INVESTMENTS (Cost $18,228,224) 18,228,224
TOTAL INVESTMENTS AT VALUE (142.4%) (Cost $393,078,322) 400,296,236
LIABILITIES IN EXCESS OF OTHER ASSETS (-42.4%) (119,131,468 )
NET ASSETS (100.0%) $ 281,164,768

† Credit ratings given by the Standard & Poor’s Division of The McGraw-Hill Companies, Inc. (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) are unaudited.

(1) Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2017, these securities amounted to a value of $213,928,850 or 76.1% of net assets.

(2) Security or portion thereof is out on loan.

(3) This security is denominated in British Pound.

(4) Bond is currently in default.

(5) Illiquid security (unaudited).

(6) Not readily marketable security; security is valued at fair value as determined in good faith by, or under the direction of, the Board of Trustees.

(7) This security is denominated in Euro.

(8) PIK: Payment-in-kind security for which part of the income earned may be paid as additional principal.

(9) Variable rate obligation — The interest rate shown is as of July 31, 2017.

(10) Non-income producing security.

(11) Represents security purchased with cash collateral received for securities on loan. The rate shown is the annualized one-day yield at July 31, 2017.

Forward Foreign Currency Contracts

| Forward Currency to be Purchased (Local) — EUR | 1,700,000 | Forward Currency to be Sold
(Local) — USD | 1,841,544 | Expiration Date — 12/15/17 | Counterparty — Morgan Stanley | Value on Settlement Date — $ 1,841,544 | $ | 2,019,050 | $ | 177,506 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| GBP | 1,405,650 | USD | 1,794,614 | 10/13/17 | Morgan Stanley | 1,794,614 | | 1,857,594 | | 62,980 | |
| USD | 7,617,123 | EUR | 6,786,500 | 10/13/17 | Morgan Stanley | (7,617,123 | ) | (8,032,238 | ) | (415,115 | ) |
| USD | 139,592 | EUR | 128,500 | 12/15/17 | Morgan Stanley | (139,592 | ) | (152,616 | ) | (13,024 | ) |
| USD | 6,857,738 | GBP | 5,552,750 | 10/13/17 | Morgan Stanley | (6,857,738 | ) | (7,338,072 | ) | (480,334 | ) |
| USD | 1,521,393 | GBP | 1,201,250 | 12/15/17 | Morgan Stanley | (1,521,393 | ) | (1,590,686 | ) | (69,293 | ) |
| | | | | | | | | | $ | (737,280 | ) |

Currency Abbreviations:

EUR = Euro

GBP = British Pound

USD = United States Dollar

SECURITY VALUATION — The net asset value of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the “Exchange”) on each day the Exchange is open for business. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. These pricing services generally price fixed income securities assuming orderly transactions of an institutional “round lot” size, but some trades occur in smaller “odd lot” sizes which may be effected at lower prices than institutional round lot trades. Structured note agreements are valued in accordance with a dealer-supplied valuation based on changes in the value of the underlying index. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Forward contracts are valued at the London closing spot rates and the London closing forward point rates on a daily basis. The currency forward contract pricing model derives the differential in point rates to the expiration date of the forward and calculates its present value. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The Fund may utilize a service provided by an independent third party which has been approved by the Board of Trustees (the “Board”) to fair value certain securities. When fair value pricing is employed, the prices of securities used by the Fund to calculate its net asset value may differ from quoted or published prices for the same securities. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the investment adviser to be unreliable, the market price may be determined by the investment adviser using quotations from one or more brokers/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved and established by the Board.

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

Accounting principles generally accepted in the United States of America (“GAAP”) established a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at each measurement date. These inputs are summarized in the three broad levels listed below:

Level 1–quoted prices in active markets for identical investments

Level 2–other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3–significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of July 31, 2017 in valuing the Fund’s assets and liabilities carried at fair value:

Assets Level 1 Level 2 Level 3 Total
Investments in Securities
Corporate Bonds $ — $ 316,381,125 $ 1,302,611 $ 317,683,736
Bank Loans — 35,555,267 23,811,167 59,366,434
Common Stocks 1,839,156 798,000 2,380,686 (1) 5,017,842 (1)
Preferred Stocks — — 0 (1) 0 (1)
Short-term Investments — 18,228,224 — 18,228,224
$ 1,839,156 $ 370,962,616 $ 27,494,464 (1) $ 400,296,236 (1)
Other Financial Instruments*
Forward Foreign Currency Contracts $ — $ 240,486 $ — $ 240,486
Liabilities Level 1 Level 2 Level 3 Total
Other Financial Instruments*
Forward Foreign Currency Contracts $ — $ 977,766 $ — $ 977,766

(1) Includes zero valued securities.

  • Other financial instruments include unrealized appreciation (depreciation) on forward foreign currency contracts.

The following is a reconciliation of investments as of July 31, 2017 for which significant unobservable inputs were used in determining value. All transfers, if any, are assumed to occur at the end of the reporting period.

Balance as of October 31, 2016 Corporate Bonds — $ 2,880,737 Bank Loans — $ 20,702,208 $ 1,131,580 (1) Preferred Stock — $ 0 (1) Total — $ 24,714,525 (1)
Accrued discounts (premiums) (18,008 ) 85,255 — — 67,247
Purchases 1,285,736 9,558,898 3,213,284 — 14,057,918
Sales (3,580,986 ) (8,144,856 ) (287,500 ) — (12,013,342 )
Realized gain (loss) (1,222,659 ) 141,565 (90,000 ) — (1,171,094 )
Change in unrealized appreciation (depreciation) 1,957,791 616,199 (788,678 ) — 1,785,312
Transfers into Level 3 — 3,851,898 — — 3,851,898
Transfers out of Level 3 — (3,000,000 ) (798,000 ) — (3,798,000 )
Balance as of July 31, 2017 $ 1,302,611 $ 23,811,167 $ 2,380,686 (1) $ 0 (1) $ 27,494,464 (1)
Net change in unrealized appreciation (depreciation) from investments still held as of
July 31, 2017 $ (5,351 ) $ 265,266 $ (832,778 ) $ — $ (572,863 )

(1) Includes zero valued securities.

Quantitative Disclosure About Significant Unobservable Inputs

Asset Class Fair Value at 7/31/2017 Valuation Techniques Unobservable Input Range (Weighted Average) (per share)
Corporate Bonds $ 9,780 Income Approach Expected Remaining Distribution NA
$ 1,292,831 Market Approach Comparable Bond Price NA
Bank Loans $ 237,173 Market Approach Discount For Illiquidity NA
$ 23,573,994 Vendor Pricing Single Broker Quote $0.86 – $1.02 ($0.99)
Common Stocks $ 161 Market Approach Discount For Illiquidity $0.00 – $12.69 ($0.24)
$ 1,009,362 Market Approach Comparable Bond Price $0.00 – $39,426.66 ($1,080.70)
$ 1,371,163 Vendor Pricing Single Broker Quote NA
Preferred Stock $ 0 Market Approach Discount For Illiquidity NA

Each fair value determination is based on a consideration of relevant factors, including both observable and unobservable inputs. Observable and unobservable inputs that Credit Suisse Asset Management, LLC, the Fund’s investment adviser (“Credit Suisse” or the “Adviser”) considers may include (i) the existence of any contractual restrictions on the disposition of securities; (ii) information obtained from the company, which may include an analysis of the company’s financial statements, the company’s products or intended markets or the company’s technologies; (iii) the price of the same or similar security negotiated at arm’s length in an issuer’s completed subsequent round of financing; (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies; or (v) a probability and time value adjusted analysis of contractual term. Where available and appropriate, multiple valuation methodologies are applied to confirm fair value. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, determining fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for investments categorized in Level 3. In some circumstances, the inputs used to measure fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the least observable input that is significant to the fair value measurement. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different from the valuations used at the date of these financial statements.

During the period ended July 31, 2017, there were no transfers between Level 1 and Level 2, but there was $3,851,898 transferred from Level 2 to Level 3 due to a lack of a pricing source supported by observable inputs and $3,798,000 transferred from Level 3 to Level 2 as a result of the availability of a pricing source supported by observable inputs. All transfers, if any, are assumed to occur at the end of the reporting period.

Other information regarding the Fund is available in the most recent Report to Shareholders. This information is also available on the Fund’s website at www.credit-suisse.com/us/funds, as well as on the website of the Securities and Exchange Commission at www.sec.gov.

Item 2: Controls and Procedures

(a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)), were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3: Exhibits

  1. The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

CREDIT SUISSE HIGH YIELD BOND FUND

/s/John G. Popp

Name: John G. Popp

Title: Chief Executive Officer and President

Date: September 15, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

/s/John G. Popp

Name: John G. Popp

Title: Chief Executive Officer and President

Date: September 15, 2017

/s/Laurie Pecha

Name: Laurie Pecha

Title: Chief Financial Officer

Date: September 15, 2017

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