N-CSRS 1 d469220dncsrs.htm WESTERN ASSET PREMIER BOND FUND WESTERN ASSET PREMIER BOND FUND

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-10603

 

 

Western Asset Premier Bond Fund

(Exact name of registrant as specified in charter)

 

 

620 Eighth Avenue, 47th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

 

 

Marc A. De Oliveira.

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (888) 777-0102

Date of fiscal year end: December 31

Date of reporting period: June 30, 2021

 

 

 


ITEM 1.

REPORT TO STOCKHOLDERS.

The Semi-Annual Report to Stockholders is filed herewith.


LOGO

 

Semi-Annual Report   June 30, 2021

WESTERN ASSET

PREMIER BOND FUND

(WEA)

 

 

 

The Fund intends to no longer mail paper copies of the Fund’s shareholder reports like this one, unless you specifically request paper copies of the reports from the Fund or from your financial intermediary (such as a broker-dealer or bank). Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

If you invest through a financial intermediary and you already elected to receive shareholder reports electronically (“e-delivery”), you will not be affected by this change and you need not take any action. If you have not already elected e-delivery, you may elect to receive shareholder reports and other communications from the Fund electronically by contacting your financial intermediary.

You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account at that financial intermediary. If you are a direct shareholder with the Fund, you can call the Fund at 1-888-888-0151, or write to the Fund by regular mail at P.O. Box 505000, Louisville, KY 40233 or by overnight delivery to Computershare, 462 South 4th Street, Suite 1600, Louisville, KY 40202 to let the Fund know you wish to continue receiving paper copies of your shareholder reports. That election will apply to all Legg Mason Funds held in your account held directly with the fund complex.

 

LOGO

 

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE


Fund objective

The Fund’s investment objective is to provide current income and capital appreciation by investing primarily in a diversified portfolio of investment grade bonds.

Under normal market conditions, the Fund expects to invest substantially all (but at least 80%) of its total managed assets in bonds, including corporate bonds, U.S. government and agency securities and mortgage-related securities, and at least 65% of its total managed assets in bonds that, at the time of purchase, are of investment grade quality. The Fund may invest up to 35% of its total managed assets in bonds of below investment grade quality (commonly referred to as “junk bonds”) at the time of purchase. The Fund may invest in securities or instruments other than bonds (including preferred stock) and may invest up to 10% of its total managed assets in instruments denominated in currencies other than the U.S. dollar. The Fund may invest in a variety of derivative instruments for investment or risk management purposes. The Fund expects that the average effective duration of its portfolio will range between 3.5 and seven years, although this target duration may change from time to time. Trust preferred interests and capital securities are considered bonds and not preferred stock for purposes of the foregoing guidelines.

 

What’s inside      
Letter from the president     III  
Performance review     IV  
Fund at a glance     1  
Schedule of investments     2  
Statement of assets and liabilities     21  
Statement of operations     22  
Statements of changes in net assets     23  
Statement of cash flows     24  
Financial highlights     25  
Notes to financial statements     27  
Additional shareholder information     43  
Dividend reinvestment plan     44  

 

 

II

   Western Asset Premier Bond Fund


Letter from the president

 

LOGO

 

Dear Shareholder,

We are pleased to provide the semi-annual report of Western Asset Premier Bond Fund for the six-month reporting period ended June 30, 2021. Please read on for Fund performance information during the Fund’s reporting period.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.lmcef.com. Here you can gain immediate access to market and investment information, including:

 

 

Fund prices and performance,

 

 

Market insights and commentaries from our portfolio managers, and

 

 

A host of educational resources.

We look forward to helping you meet your financial goals.

Sincerely,

 

LOGO

Jane Trust, CFA

President and Chief Executive Officer

July 30, 2021

 

Western Asset Premier Bond Fund  

 

III


Performance review

 

For the six months ended June 30, 2021, Western Asset Premier Bond Fund returned 1.91% based on its net asset value (“NAV”)i and 6.78% based on its New York Stock Exchange (“NYSE”) market price per share. The Fund’s unmanaged benchmarks, the Bloomberg Barclays U.S. Corporate High Yield Indexii and the Bloomberg Barclays U.S. Credit Indexiii, returned 3.62% and -1.28%, respectively, for the same period. The Lipper Corporate BBB-Rated Debt Closed-End Funds (Leveraged) Category Averageiv returned 2.81% over the same time frame. Please note that Lipper performance returns are based on each fund’s NAV.

During this six-month period, the Fund made distributions to shareholders totaling $0.40 per share. As of June 30, 2021, the Fund estimates that all of the distributions were sourced from net investment income.* The performance table shows the Fund’s six-month total return based on its NAV and market price as of June 30, 2021. Past performance is no guarantee of future results.

 

Performance Snapshot as of June 30, 2021 (unaudited)  
Price Per Share   6-Month
Total Return**
 
$14.73 (NAV)     1.91 %† 
$14.72 (Market Price)     6.78 %‡ 

All figures represent past performance and are not a guarantee of future results. Performance figures for periods shorter than one year represent cumulative figures and are not annualized.

** Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

† Total return assumes the reinvestment of all distributions, including returns of capital, if any, at NAV.

‡ Total return assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

Looking for additional information?

The Fund is traded under the symbol “WEA” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available online under the symbol “XWEAX” on most financial websites. Barron’s and The Wall Street Journal’s Monday edition both carry closed-end fund tables that provide additional information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.lmcef.com (click on the name of the Fund).

 

*

This estimate is not for tax purposes. The Fund will issue a Form 1099 with final composition of the distributions for tax purposes after year-end. A return of capital is not taxable and results in a reduction in the tax basis of a shareholder’s investment. For more information about a distribution’s composition, please refer to the Fund’s distribution press release or, if applicable, the Section 19 notice located in the press release section of our website, www.lmcef.com (click on the name of the Fund).

 

 

IV

   Western Asset Premier Bond Fund


In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund’s current NAV, market price and other information.

Thank you for your investment in Western Asset Premier Bond Fund. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund’s investment goals.

Sincerely,

LOGO

Jane Trust, CFA

President and Chief Executive Officer

July 30, 2021

RISKS: The Fund is a diversified closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objective. The Fund’s common stock is traded on the New York Stock Exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Diversification does not assure against market loss. The Fund’s investments are subject to a number of risks, including credit, inflation and interest rate risks. As interest rates rise, bond prices fall, reducing the value of a fixed income investment’s price. The Fund may invest in high-yield bonds (commonly referred to as “junk” bonds), which are rated below investment grade and carry more risk than higher-rated securities. To the extent that the Fund invests in asset-backed, mortgage-backed or mortgage-related securities, its exposure to prepayment and extension risks may be greater than if it invested in other fixed income securities. Leverage may result in greater volatility of NAV and the market price of common shares and increases a shareholder’s risk of loss. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations, and social, political, and economic uncertainties which could result in significant volatility. These risks are magnified in emerging or developing markets. Emerging market countries tend to have economic, political, and legal systems that are less developed and are less stable than those of more developed countries. The Fund may make significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The Fund may also invest in money market funds, including funds affiliated with the Fund’s investment adviser and subadvisers. For more information on Fund risks, see Summary of information regarding the Fund - Principal Risk Factors in the Fund’s most recent annual report.

 

Western Asset Premier Bond Fund  

 

V


 

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

 

 

 

i 

Net asset value (“NAV”) is calculated by subtracting total liabilities and outstanding preferred stock (if any) from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the common shares outstanding. The NAV fluctuates with changes in the market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Fund’s market price as determined by supply of and demand for the Fund’s shares.

 

ii 

The Bloomberg Barclays U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment grade debt, including corporate and non-corporate sectors. Pay-in-kind (“PIK”) bonds, Eurobonds and debt issues from countries designated as emerging markets are excluded, but Canadian and global bonds (SEC registered) of issuers in non-emerging market countries are included. Original issue zero coupon bonds, step-up coupon structures and 144-A securities are also included.

 

iii

The Bloomberg Barclays U.S. Credit Index is an index composed of corporate and non-corporate debt issues that are investment grade (rated Baa3/BBB- or higher).

 

iv 

Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the six-month period ended June 30, 2021, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 9 funds in the Fund’s Lipper category.

 

 

VI

    Western Asset Premier Bond Fund


Fund at a glance (unaudited)

 

Investment breakdown (%) as a percent of total investments

 

LOGO

 

The bar graph above represents the Fund’s portfolio as of June 30, 2021 and December 31, 2020 and does not include derivatives, such as forward foreign currency contracts. The Fund’s portfolio is actively managed. As a result, the composition of its portfolio holdings and sectors is subject to change at any time.

‡ Represents less than 0.1%.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

 1 

 


Schedule of investments (unaudited)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  
Corporate Bonds & Notes — 108.5%                                
Communication Services — 15.1%                                

Diversified Telecommunication Services — 2.5%

                               

Altice France Holding SA, Senior Secured Notes

    10.500     5/15/27       450,000     $ 500,632  (a) 

Altice France SA, Senior Secured Notes

    7.375     5/1/26       754,000       785,050  (a) 

Altice France SA, Senior Secured Notes

    8.125     2/1/27       430,000       469,023  (a)  

Lumen Technologies Inc., Senior Secured Notes

    4.000     2/15/27       1,050,000       1,072,312  (a) 

Orange SA, Senior Notes

    9.000     3/1/31       600,000       944,629  

Verizon Communications Inc., Senior Notes

    4.329     9/21/28       500,000       582,122  

Total Diversified Telecommunication Services

                            4,353,768  

Entertainment — 1.1%

                               

Netflix Inc., Senior Notes

    5.875     11/15/28       410,000       503,773  

Netflix Inc., Senior Notes

    6.375     5/15/29       310,000       396,374  

TWDC Enterprises 18 Corp., Senior Notes

    3.000     2/13/26       500,000       543,182  

Walt Disney Co., Senior Notes

    8.875     4/26/23       400,000       460,083  

Total Entertainment

                            1,903,412  

Media — 8.0%

                               

CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes

    5.125     5/1/27       350,000       367,553  (a)  

CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes

    5.000     2/1/28       410,000       430,500  (a)  

Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., Senior Secured Notes

    4.200     3/15/28       1,000,000       1,133,183  

Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., Senior Secured Notes

    2.300     2/1/32       1,500,000       1,443,998  

Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., Senior Secured Notes

    6.384     10/23/35       420,000       562,299  

Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., Senior Secured Notes

    6.484     10/23/45       1,130,000       1,558,857  

Comcast Corp., Senior Notes

    3.700     4/15/24       1,000,000       1,084,905  

Comcast Corp., Senior Notes

    7.050     3/15/33       1,000,000       1,454,080  

DISH DBS Corp., Senior Notes

    5.875     11/15/24       1,160,000       1,247,000  

DISH DBS Corp., Senior Notes

    7.750     7/1/26       1,180,000       1,337,825  

DISH DBS Corp., Senior Notes

    5.125     6/1/29       890,000       879,925  (a)  

 

See Notes to Financial Statements.

 

2     Western Asset Premier Bond Fund 2021 Semi-Annual Report


 

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  

Media — continued

                               

Time Warner Cable LLC, Senior Secured Notes

    7.300     7/1/38       720,000     $ 1,052,835  

Univision Communications Inc., Senior Secured Notes

    9.500     5/1/25       470,000       519,780  (a)  

Virgin Media Secured Finance PLC, Senior Secured Notes

    5.500     8/15/26       770,000       795,603  (a)  

Total Media

                            13,868,343  

Wireless Telecommunication Services — 3.5%

                               

CSC Holdings LLC, Senior Notes

    6.500     2/1/29       560,000       620,962  (a)  

Sprint Capital Corp., Senior Notes

    6.875     11/15/28       420,000       539,175  

Sprint Capital Corp., Senior Notes

    8.750     3/15/32       30,000       45,637  

Sprint Communications Inc., Senior Notes

    11.500     11/15/21       280,000       290,790  

Sprint Corp., Senior Notes

    7.875     9/15/23       760,000       864,368  

T-Mobile USA Inc., Senior Secured Notes

    2.550     2/15/31       1,250,000       1,267,500  

VEON Holdings BV, Senior Notes

    5.950     2/13/23       570,000       607,258  (a)  

VEON Holdings BV, Senior Notes

    3.375     11/25/27       600,000       605,340  (a)  

Vmed O2 UK Financing I PLC, Senior Secured Notes

    4.750     7/15/31       730,000       742,775  (a)(b)  

Vodafone Group PLC, Senior Notes

    4.375     5/30/28       500,000       582,104  

Total Wireless Telecommunication Services

                            6,165,909  

Total Communication Services

                            26,291,432  
Consumer Discretionary — 12.6%                                

Auto Components — 1.4%

                               

Adient Global Holdings Ltd., Senior Notes

    4.875     8/15/26       580,000       597,678  (a)  

Adient US LLC, Senior Secured Notes

    9.000     4/15/25       360,000       397,433  (a)  

American Axle & Manufacturing Inc., Senior Notes

    6.500     4/1/27       600,000       637,200  

JB Poindexter & Co. Inc., Senior Notes

    7.125     4/15/26       790,000       836,073  (a)  

Total Auto Components

                            2,468,384  

Automobiles — 3.4%

                               

Daimler Finance North America LLC, Senior Notes

    8.500     1/18/31       1,000,000       1,517,680  

Ford Motor Co., Senior Notes

    8.500     4/21/23       440,000       491,568  

Ford Motor Co., Senior Notes

    9.000     4/22/25       580,000       715,804  

Ford Motor Credit Co. LLC, Senior Notes

    4.250     9/20/22       200,000       207,058  

General Motors Co., Senior Notes

    5.400     10/2/23       100,000       110,175  

General Motors Co., Senior Notes

    6.125     10/1/25       130,000       153,985  

General Motors Co., Senior Notes

    4.200     10/1/27       750,000       837,233  

 

See Notes to Financial Statements.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

 3 

 


Schedule of investments (unaudited) (cont’d)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  

Automobiles — continued

                               

General Motors Co., Senior Notes

    6.600     4/1/36       140,000     $ 192,414  

Nissan Motor Co. Ltd., Senior Notes

    4.810     9/17/30       1,570,000       1,774,150  (a)  

Total Automobiles

                            6,000,067  

Diversified Consumer Services — 1.1%

                               

Carriage Services Inc., Senior Notes

    4.250     5/15/29       800,000       799,848  (a)  

WW International Inc., Senior Secured Notes

    4.500     4/15/29       1,020,000       1,029,032  (a)  

Total Diversified Consumer Services

                            1,828,880  

Hotels, Restaurants & Leisure — 5.4%

                               

1011778 BC ULC/New Red Finance Inc., Senior Secured Notes

    5.750     4/15/25       250,000       265,430  (a)  

Carnival Corp., Senior Notes

    7.625     3/1/26       310,000       337,125  (a)  

Carrols Restaurant Group Inc., Senior Notes

    5.875     7/1/29       390,000       385,612  (a)  

IRB Holding Corp., Senior Secured Notes

    7.000     6/15/25       430,000       465,269  (a)  

Marston’s Issuer PLC, Secured Notes (3 mo. GBP LIBOR + 2.550%)

    2.633     7/16/35       540,000  GBP      588,062  (c)(d)  

NCL Corp. Ltd., Senior Secured Notes

    12.250     5/15/24       920,000       1,112,266  (a)  

NCL Corp. Ltd., Senior Secured Notes

    10.250     2/1/26       840,000       978,579  (a)  

Royal Caribbean Cruises Ltd., Senior Notes

    5.500     4/1/28       840,000       880,782  (a)  

Saga PLC, Senior Notes

    3.375     5/12/24       910,000  GBP      1,246,290  (c)  

Viking Cruises Ltd., Senior Notes

    5.875     9/15/27       130,000       128,629  (a)  

VOC Escrow Ltd., Senior Secured Notes

    5.000     2/15/28       980,000       992,740  (a)  

Wynn Macau Ltd., Senior Notes

    5.125     12/15/29       1,000,000       1,032,590  (a)  

Wynn Resorts Finance LLC/Wynn Resorts

                               

Capital Corp., Senior Notes

    7.750     4/15/25       990,000       1,069,131  (a)  

Total Hotels, Restaurants & Leisure

                            9,482,505  

Household Durables — 0.7%

                               

Lennar Corp., Senior Notes

    5.000     6/15/27       430,000       500,234  

Lennar Corp., Senior Notes

    4.750     11/29/27       250,000       289,280  

Newell Brands Inc., Senior Notes

    4.875     6/1/25       420,000       465,805  

Total Household Durables

                            1,255,319  

Specialty Retail — 0.3%

                               

Party City Holdings Inc., Senior Secured Notes

    8.750     2/15/26       480,000       513,000  (a)   

Textiles, Apparel & Luxury Goods — 0.3%

                               

Hanesbrands Inc., Senior Notes

    4.875     5/15/26       450,000       486,562  (a)   

Total Consumer Discretionary

 

    22,034,717  

 

See Notes to Financial Statements.

 

4     Western Asset Premier Bond Fund 2021 Semi-Annual Report


 

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  
Consumer Staples — 3.4%                                

Beverages — 1.0%

                               

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., Senior Notes

    4.700     2/1/36       540,000     $ 663,337  

Anheuser-Busch InBev Worldwide Inc., Senior Notes

    4.000     4/13/28       1,000,000       1,139,287  

Total Beverages

                            1,802,624  

Food & Staples Retailing — 1.0%

                               

CVS Pass-Through Trust

    5.789     1/10/26       214,121       234,950  (a)  

CVS Pass-Through Trust

    7.507     1/10/32       317,503       402,409  (a)  

CVS Pass-Through Trust, Secured Trust

    5.880     1/10/28       273,927       314,958  

CVS Pass-Through Trust, Secured Trust

    6.943     1/10/30       303,560       369,397  

CVS Pass-Through Trust, Senior Secured Trust

    6.036     12/10/28       289,162       338,773  

Total Food & Staples Retailing

                            1,660,487  

Food Products — 0.9%

                               

Kraft Heinz Foods Co., Senior Notes

    3.950     7/15/25       126,000       140,212  

Kraft Heinz Foods Co., Senior Notes

    5.500     6/1/50       340,000       442,232  

Pilgrim’s Pride Corp., Senior Notes

    5.875     9/30/27       920,000       980,996  (a)  

Total Food Products

                            1,563,440  

Tobacco — 0.5%

                               

Altria Group Inc., Senior Notes

    4.800     2/14/29       500,000       580,047  

Reynolds American Inc., Senior Notes

    5.850     8/15/45       260,000       318,857  

Total Tobacco

                            898,904  

Total Consumer Staples

                            5,925,455  
Energy — 22.5%                                

Oil, Gas & Consumable Fuels — 22.5%

                               

Anadarko Finance Co., Senior Notes

    7.500     5/1/31       570,000       655,509  

Chevron USA Inc., Senior Notes

    5.050     11/15/44       500,000       671,880  

Conoco Phillips Canada Funding Co., Senior Notes

    7.400     12/1/31       450,000       664,468  

Continental Resources Inc., Senior Notes

    3.800     6/1/24       560,000       592,900  

Continental Resources Inc., Senior Notes

    4.375     1/15/28       210,000       232,909  

Continental Resources Inc., Senior Notes

    4.900     6/1/44       250,000       283,445  

Devon Energy Corp., Senior Notes

    8.250     8/1/23       210,000       239,371  (a)  

Diamondback Energy Inc., Senior Notes

    3.500     12/1/29       400,000       428,570  

Ecopetrol SA, Senior Notes

    5.875     9/18/23       45,000       48,700  

Ecopetrol SA, Senior Notes

    5.375     6/26/26       750,000       827,888  

Ecopetrol SA, Senior Notes

    5.875     5/28/45       2,510,000       2,692,602  

 

See Notes to Financial Statements.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

 5 

 


Schedule of investments (unaudited) (cont’d)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  

Oil, Gas & Consumable Fuels — continued

                               

Energy Transfer LP, Junior Subordinated Notes (6.500% to 11/15/26 then 5 year Treasury Constant Maturity Rate + 5.694%)

    6.500     11/15/26       100,000     $ 102,200  (d)(e) 

EOG Resources Inc., Senior Notes

    3.150     4/1/25       2,250,000       2,424,804  

EQT Corp., Senior Notes

    3.900     10/1/27       1,050,000       1,126,125  

EQT Corp., Senior Notes

    5.000     1/15/29       760,000       848,426  

KazMunayGas National Co. JSC, Senior Notes

    4.750     4/19/27       770,000       880,087  (a)  

Kinder Morgan Inc., Senior Notes

    7.750     1/15/32       190,000       272,816  

Kinder Morgan Inc., Senior Notes

    5.550     6/1/45       1,500,000       1,945,075  

Lukoil International Finance BV, Senior Notes

    4.750     11/2/26       1,000,000       1,128,330  (a) 

NGPL PipeCo LLC, Senior Notes

    7.768     12/15/37       490,000       702,072  (a)  

Oasis Petroleum Inc., Senior Notes

    6.375     6/1/26       330,000       344,513  (a)  

Occidental Petroleum Corp., Senior Notes

    6.200     3/15/40       250,000       283,215  

Petrobras Global Finance BV, Senior Notes

    4.375     5/20/23       310,000       329,180  

Petrobras Global Finance BV, Senior Notes

    5.999     1/27/28       1,460,000       1,679,051  

Petrobras Global Finance BV, Senior Notes

    5.750     2/1/29       1,000,000       1,142,650  

Petrobras Global Finance BV, Senior Notes

    6.750     1/27/41       920,000       1,092,495  

Petroleos del Peru SA, Senior Notes

    5.625     6/19/47       1,270,000       1,355,407  (a) 

Qatar Petroleum, Senior Notes

    2.250     7/12/31       1,250,000       1,236,713  (a)(b) 

Range Resources Corp., Senior Notes

    5.000     3/15/23       280,000       290,524  

Range Resources Corp., Senior Notes

    4.875     5/15/25       190,000       196,888  

Range Resources Corp., Senior Notes

    9.250     2/1/26       1,645,000       1,816,491  

Range Resources Corp., Senior Notes

    8.250     1/15/29       300,000       338,630  (a)  

Rockies Express Pipeline LLC, Senior Notes

    7.500     7/15/38       350,000       388,715  (a)  

Sabine Pass Liquefaction LLC, Senior Secured Notes

    5.750     5/15/24       440,000       494,015  

Sabine Pass Liquefaction LLC, Senior Secured Notes

    5.000     3/15/27       1,850,000       2,138,543  

Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes

    6.500     7/15/27       250,000       271,715  

Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes

    6.875     1/15/29       20,000       22,573  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

    7.850     2/1/26       1,000,000       1,271,228  

Transportadora de Gas del Peru SA, Senior Notes

    4.250     4/30/28       1,750,000       1,879,762  (a) 

 

See Notes to Financial Statements.

 

6     Western Asset Premier Bond Fund 2021 Semi-Annual Report


 

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  

Oil, Gas & Consumable Fuels — continued

                               

Transportadora de Gas del Sur SA, Senior Notes

    6.750     5/2/25       300,000     $ 281,628  (a) 

Western Midstream Operating LP, Senior Notes

    5.300     2/1/30       2,200,000       2,470,314  

Western Midstream Operating LP, Senior Notes

    5.300     3/1/48       100,000       106,912  

Western Midstream Operating LP, Senior Notes

    6.500     2/1/50       1,680,000       1,949,850  

Williams Cos. Inc., Senior Notes

    4.550     6/24/24       60,000       66,124  

Williams Cos. Inc., Senior Notes

    7.500     1/15/31       443,000       614,391  

Williams Cos. Inc., Senior Notes

    8.750     3/15/32       39,000       59,998  

YPF SA, Senior Notes

    8.500     7/28/25       630,000       499,433  (a)  

Total Energy

                            39,389,135  
Financials — 26.2%                                

Banks — 18.0%

                               

Bank of America Corp., Junior Subordinated Notes (5.875% to 3/15/28 then 3 mo. USD LIBOR + 2.931%)

    5.875     3/15/28       350,000       401,033  (d)(e)  

Bank of America Corp., Subordinated Notes

    4.250     10/22/26       2,200,000       2,485,747  

Barclays Bank PLC, Subordinated Notes

    7.625     11/21/22       1,159,000       1,264,524  

Barclays PLC, Junior Subordinated Notes (8.000% to 6/15/24 then 5 year Treasury Constant Maturity Rate + 5.672%)

    8.000     6/15/24       550,000       625,969  (d)(e)  

Barclays PLC, Subordinated Notes

    5.200     5/12/26       1,000,000       1,144,765  

BBVA Bancomer SA, Subordinated Notes (5.125% to 1/17/28 then 5 year Treasury Constant Maturity Rate + 2.650%)

    5.125     1/18/33       950,000       992,465  (a)(d)  

BNP Paribas SA, Junior Subordinated Notes (7.375% to 8/19/25 then USD 5 year ICE Swap Rate + 5.150%)

    7.375     8/19/25       510,000       594,821  (a)(d)(e) 

BPCE SA, Subordinated Notes

    5.150     7/21/24       1,000,000       1,114,651  (a)  

CIT Group Inc., Senior Notes

    5.250     3/7/25       312,000       351,905  

Citigroup Inc., Junior Subordinated Notes (5.950% to 5/15/25 then 3 mo. USD LIBOR + 3.905%)

    5.950     5/15/25       900,000       987,255  (d)(e)  

Citigroup Inc., Junior Subordinated Notes (6.300% to 5/15/24 then 3 mo. USD LIBOR + 3.423%)

    6.300     5/15/24       500,000       539,100  (d)(e)  

Citigroup Inc., Subordinated Notes

    3.500     5/15/23       500,000       527,298  

Citigroup Inc., Subordinated Notes

    4.125     7/25/28       800,000       901,979  

 

See Notes to Financial Statements.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

 7 

 


Schedule of investments (unaudited) (cont’d)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security    Rate      Maturity
Date
     Face
Amount†
     Value  

Banks — continued

                                   

Citigroup Inc., Subordinated Notes

     6.625      6/15/32        1,000,000      $ 1,364,791  

Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year ICE Swap Rate + 6.185%)

     8.125      12/23/25        1,080,000        1,315,830  (a)(d)(e) 

HSBC Holdings PLC, Junior Subordinated Notes (6.000% to 5/22/27 then USD 5 year ICE Swap Rate + 3.746%)

     6.000      5/22/27        400,000        445,000  (d)(e)  

HSBC Holdings PLC, Junior Subordinated Notes (6.500% to 3/23/28 then USD 5 year ICE Swap Rate + 3.606%)

     6.500      3/23/28        1,130,000        1,298,093  (d)(e) 

Intesa Sanpaolo SpA, Subordinated Notes

     5.017      6/26/24        1,320,000        1,436,952  (a)  

Intesa Sanpaolo SpA, Subordinated Notes

     5.710      1/15/26        2,070,000        2,342,903  (a)  

JPMorgan Chase & Co., Junior Subordinated Notes (6.000% to 8/1/23 then 3 mo. USD LIBOR + 3.300%)

     6.000      8/1/23        2,600,000        2,765,750  (d)(e) 

JPMorgan Chase & Co., Junior Subordinated Notes (6.100% to 10/1/24 then 3 mo. USD LIBOR + 3.330%)

     6.100      10/1/24        400,000        437,750  (d)(e)  

JPMorgan Chase & Co., Subordinated Notes

     4.950      6/1/45        500,000        663,800  

Lloyds Banking Group PLC, Subordinated Notes

     4.650      3/24/26        1,500,000        1,699,665  

Natwest Group PLC, Junior Subordinated Notes (8.625% to 8/15/21 then USD 5 year ICE Swap Rate + 7.598%)

     8.625      8/15/21        450,000        454,295  (d)(e)  

Natwest Group PLC, Subordinated Notes

     6.000      12/19/23        150,000        168,304  

Natwest Group PLC, Subordinated Notes

     5.125      5/28/24        1,330,000        1,477,676  

NatWest Markets NV, Subordinated Notes

     7.750      5/15/23        140,000        156,992  

Santander UK Group Holdings PLC, Subordinated Notes

     5.625      9/15/45        1,000,000        1,298,665  (a)  

UniCredit SpA, Subordinated Notes (7.296% to 4/2/29 then USD 5 year ICE Swap Rate + 4.914%)

     7.296      4/2/34        740,000        890,642  (a)(d)  

Wells Fargo & Co., Senior Notes

     3.000      10/23/26        1,250,000        1,349,267  

Total Banks

                                31,497,887  

Capital Markets — 3.9%

                                   

Credit Suisse Group AG, Junior Subordinated Notes (7.250% to 9/12/25 then USD 5 year ICE Swap Rate + 4.332%)

     7.250      9/12/25        1,350,000        1,527,113  (a)(d)(e) 

Goldman Sachs Group Inc., Senior Notes

     5.250      7/27/21        800,000        802,791  

Goldman Sachs Group Inc., Senior Notes

     3.500      11/16/26        1,750,000        1,904,486  

 

See Notes to Financial Statements.

 

8     Western Asset Premier Bond Fund 2021 Semi-Annual Report


 

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  

Capital Markets — continued

                               

Morgan Stanley, Senior Notes (4.431% to 1/23/29 then 3 mo. USD LIBOR + 1.628%)

    4.431     1/23/30       1,000,000     $ 1,171,787  (d) 

UBS Group AG, Junior Subordinated Notes (7.000% to 1/31/24 then USD 5 year ICE Swap Rate + 4.344%)

    7.000     1/31/24       1,250,000       1,377,431  (a)(d)(e) 

Total Capital Markets

                            6,783,608  

Diversified Financial Services — 3.8%

                               

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

    4.450     12/16/21       680,000       690,400  

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

    4.625     7/1/22       230,000       239,225  

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

    4.625     10/15/27       1,360,000       1,524,372  

Ahold Lease USA Inc. Pass-Through-Trust, Senior Secured Notes, Step bond (8.620% to 7/2/21 then 0.000%)

    8.620     1/2/25       294,306       324,497  

Allied Universal Holdco LLC/Allied Universal Finance Corp., Senior Notes

    6.000     6/1/29       430,000       436,497  (a)  

Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, Senior Secured Notes

    4.625     6/1/28       200,000       200,972  (a)  

GE Capital International Funding Co. Unlimited Co., Senior Notes

    4.418     11/15/35       500,000       600,121  

Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)

    6.500     9/15/24       1,696,626       1,707,272  (a)(f) 

Huarong Finance 2019 Co. Ltd., Senior Notes

    2.500     2/24/23       200,000       154,559  (c)  

International Lease Finance Corp., Senior Notes

    5.875     8/15/22       700,000       740,980  

Total Diversified Financial Services

                            6,618,895  

Insurance — 0.5%

                               

MetLife Inc., Junior Subordinated Notes

    10.750     8/1/39       500,000       866,010  

Total Financials

                            45,766,400  
Health Care — 7.1%                                

Biotechnology — 0.3%

                               

AbbVie Inc., Senior Notes

    3.800     3/15/25       500,000       547,200  

Health Care Providers & Services — 2.7%

                               

Centene Corp., Senior Notes

    4.250     12/15/27       240,000       253,200  

Centene Corp., Senior Notes

    4.625     12/15/29       370,000       407,377  

HCA Inc., Senior Secured Notes

    4.500     2/15/27       1,000,000       1,131,233  

 

See Notes to Financial Statements.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

 9 

 


Schedule of investments (unaudited) (cont’d)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  

Health Care Providers & Services — continued

                               

HCA Inc., Senior Secured Notes

    4.125     6/15/29       550,000     $ 619,790  

Humana Inc., Senior Notes

    3.950     3/15/27       1,200,000       1,347,881  

Legacy LifePoint Health LLC, Senior Secured Notes

    6.750     4/15/25       330,000       352,513  (a)  

Magellan Health Inc., Senior Notes

    4.900     9/22/24       515,000       573,934  

Total Health Care Providers & Services

                            4,685,928  

Pharmaceuticals — 4.1%

                               

Bausch Health Cos. Inc., Senior Notes

    6.125     4/15/25       1,444,000       1,481,905  (a)  

Bristol-Myers Squibb Co., Senior Notes

    3.400     7/26/29       780,000       875,031  

Bristol-Myers Squibb Co., Senior Notes

    4.625     5/15/44       250,000       326,766  

Teva Pharmaceutical Finance Co. BV, Senior Notes

    2.950     12/18/22       575,000       579,629  

Teva Pharmaceutical Finance IV BV, Senior Notes

    3.650     11/10/21       330,000       332,914  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

    2.200     7/21/21       1,550,000       1,549,767  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

    2.800     7/21/23       1,046,000       1,043,636  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

    6.000     4/15/24       760,000       807,827  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

    3.150     10/1/26       180,000       171,450  

Total Pharmaceuticals

                            7,168,925  

Total Health Care

                            12,402,053  
Industrials — 12.4%                                

Aerospace & Defense — 2.7%

                               

Boeing Co., Senior Notes

    3.250     2/1/28       750,000       795,946  

Boeing Co., Senior Notes

    3.200     3/1/29       1,650,000       1,733,307  

Boeing Co., Senior Notes

    6.125     2/15/33       600,000       760,694  

Boeing Co., Senior Notes

    3.750     2/1/50       500,000       516,658  

TransDigm Inc., Senior Secured Notes

    8.000     12/15/25       920,000       996,627  (a)  

Total Aerospace & Defense

                            4,803,232  

Airlines — 4.8%

                               

Delta Air Lines Inc., Senior Notes

    3.625     3/15/22       460,000       466,563  

Delta Air Lines Inc., Senior Notes

    3.800     4/19/23       1,100,000       1,142,215  

Delta Air Lines Inc., Senior Notes

    2.900     10/28/24       310,000       315,609  

Delta Air Lines Inc., Senior Notes

    7.375     1/15/26       260,000       305,273  

Delta Air Lines Inc., Senior Secured Notes

    7.000     5/1/25       1,490,000       1,739,833  (a)  

Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes

    4.750     10/20/28       340,000       378,272  (a)  

 

See Notes to Financial Statements.

 

10     Western Asset Premier Bond Fund 2021 Semi-Annual Report


 

 

Western Asset Premier Bond Fund

 

Security   Rate    

Maturity

Date

    Face
Amount†
    Value  

Airlines — continued

                               

Hawaiian Brand Intellectual Property Ltd./ HawaiianMiles Loyalty Ltd., Senior Secured Notes

    5.750     1/20/26       260,000     $ 279,464  (a)  

Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes

    6.500     6/20/27       920,000       1,014,070  (a) 

Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes

    8.000     9/20/25       1,169,999       1,325,609  (a)  

United Airlines Inc., Senior Secured Notes

    4.625     4/15/29       280,000       290,150  (a)  

United Airlines Pass-Through Trust

    4.750     4/11/22       159,595       162,286  

United Airlines Pass-Through Trust

    4.875     1/15/26       892,860       948,238  

Total Airlines

                            8,367,582  

Building Products — 1.4%

                               

Standard Industries Inc., Senior Notes

    5.000     2/15/27       1,870,000       1,938,956  (a)  

Standard Industries Inc., Senior Notes

    4.750     1/15/28       511,000       535,503  (a)  

Total Building Products

                            2,474,459  

Commercial Services & Supplies — 0.4%

                               

CoreCivic Inc., Senior Notes

    8.250     4/15/26       640,000       664,928  

Industrial Conglomerates — 0.1%

                               

General Electric Co., Junior Subordinated Notes (3 mo. USD LIBOR + 3.330%)

    3.449     9/15/21       260,000       255,125  (d)(e)   

Professional Services — 0.6%

                               

IHS Markit Ltd., Senior Notes

    5.000     11/1/22       1,000,000       1,049,084  (a)   

Trading Companies & Distributors — 2.4%

                               

Ashtead Capital Inc., Senior Notes

    4.125     8/15/25       1,950,000       1,999,969  (a)  

H&E Equipment Services Inc., Senior Notes

    3.875     12/15/28       250,000       246,312  (a)  

United Rentals North America Inc., Secured Notes

    3.875     11/15/27       1,500,000       1,577,970  

United Rentals North America Inc., Senior Notes

    5.500     5/15/27       160,000       169,800  

United Rentals North America Inc., Senior Notes

    4.875     1/15/28       110,000       116,793  

Total Trading Companies & Distributors

                            4,110,844  

Total Industrials

                            21,725,254  
Information Technology — 2.2%                                

Communications Equipment — 0.1%

                               

CommScope Inc., Senior Notes

    8.250     3/1/27       170,000       181,908  (a)   

IT Services — 0.4%

                               

DXC Technology Co., Senior Notes

    7.450     10/15/29       500,000       647,472  

 

See Notes to Financial Statements.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

11

 


Schedule of investments (unaudited) (cont’d)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security   Rate    

Maturity

Date

    Face
Amount†
    Value  

Semiconductors & Semiconductor Equipment — 0.3%

 

                       

Broadcom Corp./Broadcom Cayman Finance Ltd., Senior Notes

    3.125     1/15/25       500,000     $ 534,060  

Software — 0.2%

                               

Helios Software Holdings Inc./ION Corporate Solutions Finance Sarl, Senior Secured Notes

    4.625     5/1/28       420,000       412,390  (a)   

Technology Hardware, Storage & Peripherals — 1.2%

 

                       

Seagate HDD Cayman, Senior Notes

    4.750     1/1/25       1,220,000       1,344,849  

Seagate HDD Cayman, Senior Notes

    4.875     6/1/27       260,000       286,989  

Western Digital Corp., Senior Notes

    4.750     2/15/26       430,000       478,375  

Total Technology Hardware, Storage & Peripherals

 

                    2,110,213  

Total Information Technology

                            3,886,043  
Materials — 4.6%                                

Chemicals — 0.7%

                               

Braskem America Finance Co., Senior Notes

    7.125     7/22/41       920,000       1,147,534  (c)   

Containers & Packaging — 0.0%††

                               

Pactiv LLC, Senior Notes

    7.950     12/15/25       50,000       56,375  

Metals & Mining — 3.1%

                               

Anglo American Capital PLC, Senior Notes

    4.125     9/27/22       210,000       218,734  (a)  

ArcelorMittal SA, Senior Notes

    7.250     10/15/39       430,000       608,126  

First Quantum Minerals Ltd., Senior Notes

    7.250     4/1/23       210,000       214,332  (a)  

Freeport-McMoRan Inc., Senior Notes

    5.400     11/14/34       220,000       266,015  

Freeport-McMoRan Inc., Senior Notes

    5.450     3/15/43       580,000       709,723  

Fresnillo PLC, Senior Notes

    4.250     10/2/50       1,750,000       1,782,226  (a) 

Teck Resources Ltd., Senior Notes

    6.000     8/15/40       210,000       269,052  

Vale Overseas Ltd., Senior Notes

    6.875     11/10/39       940,000       1,316,254  

Total Metals & Mining

                            5,384,462  

Paper & Forest Products — 0.8%

                               

Suzano Austria GmbH, Senior Notes

    5.750     7/14/26       950,000       1,118,844  (a) 

Suzano Austria GmbH, Senior Notes

    3.125     1/15/32       350,000       347,067  (b)  

Total Paper & Forest Products

                            1,465,911  

Total Materials

                            8,054,282  
Real Estate — 1.1%                                

Equity Real Estate Investment Trusts (REITs) — 1.1%

 

                       

Diversified Healthcare Trust, Senior Notes

    9.750     6/15/25       240,000       266,116  

MPT Operating Partnership LP/MPT Finance Corp., Senior Notes

    5.000     10/15/27       1,500,000       1,592,010  

Total Real Estate

                            1,858,126  

 

See Notes to Financial Statements.

 

12     Western Asset Premier Bond Fund 2021 Semi-Annual Report


 

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  
Utilities — 1.3%                                

Electric Utilities — 0.8%

                               

FirstEnergy Corp., Senior Notes

    7.375     11/15/31       700,000     $ 959,777  

Pampa Energia SA, Senior Notes

    7.500     1/24/27       480,000       430,857  (a)  

Total Electric Utilities

                            1,390,634  

Independent Power and Renewable Electricity Producers — 0.5%

 

       

Minejesa Capital BV, Senior Secured Notes

    4.625     8/10/30       810,000       859,775  (a)  

Total Utilities

 

            2,250,409  

Total Corporate Bonds & Notes (Cost — $163,701,457)

 

            189,583,306  
Sovereign Bonds — 10.8%                                

Argentina — 0.3%

                               

Argentine Republic Government International Bond, Senior Notes

    1.000     7/9/29       43,394       16,541  

Argentine Republic Government International Bond, Senior Notes, Step bond (0.125% to 7/9/21 then 0.500%)

    0.125     7/9/30       418,900       151,101  

Provincia de Buenos Aires, Senior Notes

    9.950     6/9/21       410,000       195,779  *(a)(g) 

Provincia de Cordoba, Senior Notes, Step bond (5.000% to 6/1/22 then 6.990%)

    5.000     6/1/27       310,000       212,353  (a)  

Total Argentina

                            575,774  

Chile — 1.6%

                               

Chile Government International Bond, Senior Notes

    2.550     1/27/32       2,750,000       2,817,375  

Indonesia — 3.1%

                               

Indonesia Government International Bond, Senior Notes

    4.125     1/15/25       300,000       331,705  (a)  

Indonesia Government International Bond, Senior Notes

    3.850     7/18/27       300,000       334,854  (a)  

Indonesia Government International Bond, Senior Notes

    3.500     1/11/28       2,420,000       2,647,486  

Indonesia Government International Bond, Senior Notes

    1.850     3/12/31       1,000,000       980,353  

Indonesia Treasury Bond

    8.250     7/15/21       2,696,000,000  IDR      186,230  

Indonesia Treasury Bond

    7.000     5/15/22       14,227,000,000  IDR      1,011,952  

Total Indonesia

                            5,492,580  

Mexico — 1.7%

                               

Mexican Bonos, Senior Notes

    7.750     11/23/34       23,740,000  MXN      1,257,741  

Mexico Government International Bond, Senior Notes

    3.750     1/11/28       1,500,000       1,636,313  

Total Mexico

                            2,894,054  

 

See Notes to Financial Statements.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

13

 


Schedule of investments (unaudited) (cont’d)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  

Panama — 1.1%

 

       

Panama Government International Bond, Senior Notes

    2.252     9/29/32       1,900,000     $ 1,825,995  

Peru — 1.8%

 

               

Peruvian Government International Bond, Senior Notes

    2.783     1/23/31       1,340,000       1,368,488  

Peruvian Government International Bond, Senior Notes

    1.862     12/1/32       1,900,000       1,767,656  

Total Peru

                            3,136,144  

Russia — 1.2%

                               

Russian Federal Bond — OFZ

    7.750     9/16/26       61,630,000  RUB      875,420  

Russian Federal Bond — OFZ

    6.900     5/23/29       94,950,000  RUB      1,293,644  

Total Russia

 

            2,169,064  

Total Sovereign Bonds (Cost — $18,385,209)

 

            18,910,986  
Senior Loans — 8.2%                                
Communication Services — 2.8%                                

Diversified Telecommunication Services — 0.8%

 

                       

Level 3 Financing Inc., 2027 Term Loan B (1 mo. USD LIBOR + 1.750%)

    1.854     3/1/27       1,418,664       1,400,044  (d)(h)(i)  

Media — 2.0%

                               

Charter Communications Operating LLC, Term Loan B1 (1 mo. USD LIBOR + 1.750%)

    1.860     4/30/25       3,005,564       3,003,514  (d)(h)(i) 

Charter Communications Operating LLC, Term Loan B2 (1 mo. USD LIBOR + 1.750%)

    1.860     2/1/27       492,481       489,219  (d)(h)(i) 

Total Media

 

            3,492,733  

Total Communication Services

 

            4,892,777  
Consumer Discretionary — 3.1%                                

Hotels, Restaurants & Leisure — 3.1%

                               

Hilton Worldwide Finance LLC, Refinance Term Loan B2 (1 mo. USD LIBOR + 1.750%)

    1.842     6/22/26       4,863,291       4,828,946  (d)(h)(i) 

Royal Caribbean Cruises Ltd., First Lien Term Loan A

          4/5/22       690,000       672,750  (j)(k) 

Total Consumer Discretionary

 

            5,501,696  
Financials — 0.4%                                

Capital Markets — 0.4%

                               

Finco I LLC, 2020 Term Loan (1 mo. USD LIBOR + 2.500%)

    2.604     6/27/25       674,799       673,745  (d)(h)(i)  

 

See Notes to Financial Statements.

 

14     Western Asset Premier Bond Fund 2021 Semi-Annual Report


 

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  
Industrials — 1.9%                                

Airlines — 1.9%

 

                       

Delta Air Lines Inc., Initial Term Loan (the greater of 3 mo. USD LIBOR or 1.000% + 3.750%)

    4.750     10/20/27       650,000     $ 687,294  (d)(h)(i) 

Mileage Plus Holdings LLC, Initial Term Loan (the greater of 3 mo. USD LIBOR or 1.000% + 5.250%)

    6.250     6/21/27       1,770,000       1,891,825  (d)(h)(i) 

United Airlines Inc., Term Loan B (the greater of 3 mo. USD LIBOR or 0.750% + 3.750%)

    4.500     4/21/28       648,375       657,638  (d)(h)(i) 

Total Industrials

 

            3,236,757  

Total Senior Loans (Cost — $14,066,955)

 

            14,304,975  
U.S. Government & Agency Obligations — 7.3%                                

U.S. Government Obligations — 7.3%

                               

U.S. Treasury Notes

    1.625     5/31/23       1,250,000       1,283,252  (l)  

U.S. Treasury Notes

    2.750     8/31/23       1,400,000       1,474,813  (l)  

U.S. Treasury Notes

    2.875     9/30/23       2,500,000       2,644,873  (l)  

U.S. Treasury Notes

    2.125     3/31/24       1,500,000       1,570,723  (l)  

U.S. Treasury Notes

    0.750     3/31/26       2,000,000       1,991,328  (l)  

U.S. Treasury Notes

    0.750     4/30/26       350,000       348,264  

U.S. Treasury Notes

    0.500     5/31/27       1,500,000       1,452,539  (l)  

U.S. Treasury Notes

    1.250     4/30/28       2,000,000       2,006,562  (l)  

Total U.S. Government & Agency Obligations (Cost — $12,417,043)

 

            12,772,354  
Asset-Backed Securities — 2.2%                                

American Home Mortgage Investment Trust, 2007-A 4A (1 mo. USD LIBOR + 0.900%)

    0.992     7/25/46       449,289       187,475  (a)(d)  

Bayview Financial Asset Trust, 2007-SR1A M1 (1 mo. USD LIBOR + 0.800%)

    0.892     3/25/37       412,897       396,731  (a)(d)  

Bayview Financial Asset Trust, 2007-SR1A M4 (1 mo. USD LIBOR + 1.500%)

    1.592     3/25/37       42,713       42,545  (a)(d)  

Bear Stearns Asset Backed Securities Trust, 2006-SD3 1PO, STRIPS, PO

    0.000     8/25/36       203,971       160,192  

CWABS Asset Backed Notes Trust, 2007- SEA2 1A1 (1 mo. USD LIBOR + 1.000%)

    1.092     8/25/47       3,814       3,837  (a)(d)  

Financial Asset Securities Corp. AAA Trust, 2005-1A 1A3B (1 mo. USD LIBOR + 0.410%)

    0.506     2/27/35       203,098       188,378  (a)(d)  

GSAMP Trust, 2003-SEA2 A1

    5.421     7/25/33       513,813       519,754  

Indymac Manufactured Housing Contract Pass-Through Certificates, 1997-1 A5

    6.970     2/25/28       17,097       17,253  

 

See Notes to Financial Statements.

 

Western Asset Premier Bond Fund 2021 Semi-Annual Report    

 

 

15

 


Schedule of investments (unaudited) (cont’d)

June 30, 2021

 

Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  
Asset-Backed Securities — continued                                

Morgan Stanley ABS Capital I Inc. Trust, 2004-HE7 M1 (1 mo. USD LIBOR + 0.900%)

    0.992     8/25/34       1,024,155     $ 1,018,019  (d) 

Morgan Stanley ABS Capital I Inc. Trust Series, 2003-SD1 A1 (1 mo. USD LIBOR + 1.000%)

    1.092     3/25/33       6,663       6,599  (d)  

Oakwood Mortgage Investors Inc., 2002-B A3

    6.060     6/15/32       37,073       38,357  (d)  

Origen Manufactured Housing Contract Trust, 2006-A A2

    2.238     10/15/37       542,781       529,558  (d)  

Origen Manufactured Housing Contract Trust, 2007-A A2

    2.757     4/15/37       729,012       702,411  (d)  

Total Asset-Backed Securities (Cost — $3,245,171)

 

            3,811,109  
Collateralized Mortgage Obligations (m) —0.9%                                

Banc of America Funding Trust, 2004-B 6A1

    2.206     12/20/34       168,589       151,592  (d)  

Bear Stearns ALT-A Trust, 2004-3 A1 (1 mo. USD LIBOR + 0.640%)

    0.732     4/25/34       81,106       83,688  (d)  

CHL Mortgage Pass-Through Trust, 2005-7 1A1 (1 mo. USD LIBOR + 0.540%)

    0.632     3/25/35       280,488       273,545  (d)  

Fannie Mae Trust, 2004-W15 1A2

    6.500     8/25/44       73,815       86,185  

Impac CMB Trust Series, 2004-10 2A (1 mo. USD LIBOR + 0.640%)

    0.732     3/25/35       77,086       74,260  (d)  

Impac CMB Trust Series, 2005-2 2A2 (1 mo. USD LIBOR + 0.800%)

    0.892     4/25/35       26,177       25,790  (d)  

MAFI II Remic Trust, 1998-BI B1

    6.272     11/20/24       174,442       164,490  (d)  

MERIT Securities Corp., 2011PA 3A1 (1 mo. USD LIBOR + 0.620%)

    0.715     4/28/27       24,278       23,493  (a)(d)  

MERIT Securities Corp., 2011PA B3 (1 mo. USD LIBOR + 2.250%)

    2.345     9/28/32       471,562       452,178  (a)(d) 

Prime Mortgage Trust, 2005-2 2XB, IO

    1.743     10/25/32       1,103,151       80,619  (d)  

Prime Mortgage Trust, 2005-5 1X, IO

    1.113     7/25/34       1,581,092       52,889  (d)  

RAMP Series Trust, 2005-SL2 APO, STRIPS, PO

    0.000     2/25/32       2,322       2,062  

Regal Trust IV, 1999-1 A (11th District Cost of Funds + 1.500%)

    1.908     9/29/31       1,444       1,417  (a)(d)  

Sequoia Mortgage Trust, 2003-2 A2 (6 mo. USD LIBOR + 0.680%)

    0.864     6/20/33       6,543       6,452  (d)  

Sequoia Mortgage Trust, 2004-10 A1A (1 mo. USD LIBOR + 0.620%)

    0.713     11/20/34       5,946       5,883  (d)  

Structured Asset Securities Corp., 1998-RF2 A

    4.739     7/15/27       79,836       79,448  (a)(d)  

 

See Notes to Financial Statements.

 

16     Western Asset Premier Bond Fund 2021 Semi-Annual Report


Western Asset Premier Bond Fund

 

Security   Rate     Maturity
Date
    Face
Amount†
    Value  
Collateralized Mortgage Obligations (m) — continued

 

                       

Structured Asset Securities Corp. Mortgage Pass-Through Certificates, 2003-9A 2A2

    2.288     3/25/33       42,290     $ 44,254  (d)  

WaMu Mortgage Pass-Through Certificates Series Trust, 2004-AR6 A (1 mo. USD LIBOR + 0.840%)

    0.932     5/25/44       46,522       47,018  (d) 

Washington Mutual MSC Mortgage Pass- Through Certificates Trust, 2004-RA1 2A

    7.000     3/25/34       5,405       5,750  

Total Collateralized Mortgage Obligations (Cost — $1,299,830)

 

            1,661,013  
Convertible Bonds & Notes — 0.8%                                
Communication Services — 0.8%                                

Media — 0.8%

                               

DISH Network Corp., Senior Notes (Cost — $1,147,243)

    3.375     8/15/26       1,370,000       1,401,510  
                   Shares         
Convertible Preferred Stocks — 0.4%