WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| CORPORATE BONDS & NOTES - 111.1% | ||||||||||||||||
| COMMUNICATION SERVICES - 12.1% | ||||||||||||||||
| Diversified Telecommunication Services - 3.8% |
||||||||||||||||
| Altice Financing SA, Senior Secured Notes |
5.000 | % | 1/15/28 | 420,000 | $ | 359,219 | (a) | |||||||||
| Altice Financing SA, Senior Secured Notes |
5.750 | % | 8/15/29 | 590,000 | 484,277 | (a) | ||||||||||
| Altice France Holding SA, Senior Notes |
6.000 | % | 2/15/28 | 620,000 | 307,483 | (a) | ||||||||||
| Altice France Holding SA, Senior Secured Notes |
10.500 | % | 5/15/27 | 710,000 | 443,797 | (a) | ||||||||||
| Altice France SA, Senior Secured Notes |
5.125 | % | 7/15/29 | 200,000 | 142,481 | (a) | ||||||||||
| Lumen Technologies Inc., Senior Notes |
7.600 | % | 9/15/39 | 1,050,000 | 316,124 | (b) | ||||||||||
| Orange SA, Senior Notes |
9.000 | % | 3/1/31 | 600,000 | 709,063 | |||||||||||
| Telecom Italia SpA, Senior Notes |
5.303 | % | 5/30/24 | 250,000 | 246,042 | (a) | ||||||||||
| Verizon Communications Inc., Senior Notes |
3.875 | % | 2/8/29 | 1,670,000 | 1,530,171 | |||||||||||
| Verizon Communications Inc., Senior Notes |
2.355 | % | 3/15/32 | 500,000 | 381,622 | |||||||||||
|
|
|
|||||||||||||||
| Total Diversified Telecommunication Services |
|
4,920,279 | ||||||||||||||
|
|
|
|||||||||||||||
| Entertainment - 0.5% |
||||||||||||||||
| Banijay Entertainment SASU, Senior Secured Notes |
8.125 | % | 5/1/29 | 340,000 | 337,697 | (a) | ||||||||||
| Netflix Inc., Senior Notes |
6.375 | % | 5/15/29 | 310,000 | 320,418 | |||||||||||
|
|
|
|||||||||||||||
| Total Entertainment |
|
658,115 | ||||||||||||||
|
|
|
|||||||||||||||
| Interactive Media & Services - 0.1% |
||||||||||||||||
| Match Group Holdings II LLC, Senior Notes |
3.625 | % | 10/1/31 | 200,000 | 158,015 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Media - 4.2% |
||||||||||||||||
| CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes |
4.250 | % | 1/15/34 | 800,000 | 589,862 | (a)(b) | ||||||||||
| Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., Senior Secured Notes |
6.384 | % | 10/23/35 | 420,000 | 391,587 | (b) | ||||||||||
| Charter Communications Operating LLC/ Charter Communications Operating Capital Corp., Senior Secured Notes |
6.484 | % | 10/23/45 | 1,130,000 | 987,503 | (b) | ||||||||||
| Comcast Corp., Senior Notes |
7.050 | % | 3/15/33 | 1,000,000 | 1,092,109 | (b) | ||||||||||
| DirecTV Financing LLC/DirecTV Financing Co-Obligor Inc., Senior Secured Notes |
5.875 | % | 8/15/27 | 760,000 | 672,942 | (a)(b) | ||||||||||
| DISH DBS Corp., Senior Notes |
5.875 | % | 11/15/24 | 70,000 | 65,267 | |||||||||||
| DISH DBS Corp., Senior Notes |
7.375 | % | 7/1/28 | 620,000 | 391,694 | |||||||||||
| DISH DBS Corp., Senior Notes |
5.125 | % | 6/1/29 | 990,000 | 550,316 | (b) | ||||||||||
| Time Warner Cable LLC, Senior Secured Notes |
5.875 | % | 11/15/40 | 720,000 | 597,043 | |||||||||||
|
|
|
|||||||||||||||
| Total Media |
|
5,338,323 | ||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
1 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Wireless Telecommunication Services - 3.5% |
||||||||||||||||
| CSC Holdings LLC, Senior Notes |
11.250 | % | 5/15/28 | 900,000 | $ | 897,761 | (a) | |||||||||
| CSC Holdings LLC, Senior Notes |
5.750 | % | 1/15/30 | 230,000 | 129,206 | (a) | ||||||||||
| CSC Holdings LLC, Senior Notes |
4.625 | % | 12/1/30 | 1,130,000 | 602,209 | (a) | ||||||||||
| CSC Holdings LLC, Senior Notes |
5.000 | % | 11/15/31 | 310,000 | 166,535 | (a) | ||||||||||
| Millicom International Cellular SA, Senior Notes |
4.500 | % | 4/27/31 | 500,000 | 357,523 | (a) | ||||||||||
| Sprint Capital Corp., Senior Notes |
6.875 | % | 11/15/28 | 420,000 | 434,016 | (b) | ||||||||||
| Sprint Capital Corp., Senior Notes |
8.750 | % | 3/15/32 | 30,000 | 34,732 | (b) | ||||||||||
| T-Mobile USA Inc., Senior Notes |
3.500 | % | 4/15/31 | 1,140,000 | 965,077 | (b) | ||||||||||
| Vmed O2 UK Financing I PLC, Senior Secured Notes |
4.500 | % | 7/15/31 | 500,000 | GBP | 479,665 | (a) | |||||||||
| Vmed O2 UK Financing I PLC, Senior Secured Notes |
4.750 | % | 7/15/31 | 540,000 | 436,897 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Wireless Telecommunication Services |
4,503,621 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL COMMUNICATION SERVICES |
15,578,353 | |||||||||||||||
|
|
|
|||||||||||||||
| CONSUMER DISCRETIONARY - 17.5% | ||||||||||||||||
| Automobile Components - 2.5% |
||||||||||||||||
| Adient Global Holdings Ltd., Senior Notes |
4.875 | % | 8/15/26 | 580,000 | 547,691 | (a) | ||||||||||
| American Axle & Manufacturing Inc., Senior Notes |
6.500 | % | 4/1/27 | 900,000 | 855,441 | (b) | ||||||||||
| American Axle & Manufacturing Inc., Senior Notes |
5.000 | % | 10/1/29 | 350,000 | 283,548 | |||||||||||
| JB Poindexter & Co. Inc., Senior Notes |
7.125 | % | 4/15/26 | 1,320,000 | 1,285,620 | (a)(b) | ||||||||||
| ZF North America Capital Inc., Senior Notes |
7.125 | % | 4/14/30 | 280,000 | 274,700 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Automobile Components |
3,247,000 | |||||||||||||||
|
|
|
|||||||||||||||
| Automobiles - 3.7% |
||||||||||||||||
| Ford Motor Co., Senior Notes |
3.250 | % | 2/12/32 | 1,700,000 | 1,311,794 | (b) | ||||||||||
| General Motors Co., Senior Notes |
6.125 | % | 10/1/25 | 130,000 | 129,915 | (b) | ||||||||||
| General Motors Co., Senior Notes |
4.200 | % | 10/1/27 | 750,000 | 699,532 | (b) | ||||||||||
| General Motors Co., Senior Notes |
6.600 | % | 4/1/36 | 140,000 | 136,166 | (b) | ||||||||||
| Mercedes-Benz Finance North America LLC, Senior Notes |
8.500 | % | 1/18/31 | 1,000,000 | 1,185,163 | |||||||||||
| Nissan Motor Acceptance Co. LLC, Senior Notes |
2.750 | % | 3/9/28 | 1,570,000 | 1,315,353 | (a)(b) | ||||||||||
|
|
|
|||||||||||||||
| Total Automobiles |
4,777,923 | |||||||||||||||
|
|
|
|||||||||||||||
| Broadline Retail - 0.5% |
||||||||||||||||
| Marks & Spencer PLC, Senior Notes |
7.125 | % | 12/1/37 | 650,000 | 613,074 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Distributors - 0.5% |
||||||||||||||||
| Ritchie Bros Holdings Inc., Senior Notes |
7.750 | % | 3/15/31 | 610,000 | 619,913 | (a) | ||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
|
2 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Diversified Consumer Services - 1.4% |
||||||||||||||||
| APCOA Parking Holdings GmbH, Senior Secured Notes |
4.625 | % | 1/15/27 | 130,000 | EUR | $ | 125,605 | (c) | ||||||||
| APCOA Parking Holdings GmbH, Senior Secured Notes |
4.625 | % | 1/15/27 | 910,000 | EUR | 879,232 | (a) | |||||||||
| Carriage Services Inc., Senior Notes |
4.250 | % | 5/15/29 | 310,000 | 265,488 | (a) | ||||||||||
| StoneMor Inc., Senior Secured Notes |
8.500 | % | 5/15/29 | 340,000 | 280,517 | (a) | ||||||||||
| WW International Inc., Senior Secured Notes |
4.500 | % | 4/15/29 | 320,000 | 225,283 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Diversified Consumer Services |
1,776,125 | |||||||||||||||
|
|
|
|||||||||||||||
| Hotels, Restaurants & Leisure - 8.3% |
||||||||||||||||
| 888 Acquisitions Ltd., Senior Secured Notes |
7.558 | % | 7/15/27 | 600,000 | EUR | 586,792 | (a) | |||||||||
| Carnival PLC, Senior Notes |
1.000 | % | 10/28/29 | 1,210,000 | EUR | 821,613 | ||||||||||
| Carrols Restaurant Group Inc., Senior Notes |
5.875 | % | 7/1/29 | 150,000 | 126,040 | (a) | ||||||||||
| IRB Holding Corp., Senior Secured Notes |
7.000 | % | 6/15/25 | 430,000 | 430,593 | (a) | ||||||||||
| Las Vegas Sands Corp., Senior Notes |
3.900 | % | 8/8/29 | 2,610,000 | 2,230,724 | (b) | ||||||||||
| Marston’s Issuer PLC, Secured Notes (SONIA + 2.669%) |
7.819 | % | 7/16/35 | 540,000 | GBP | 485,588 | (c)(d) | |||||||||
| NCL Corp. Ltd., Senior Notes |
3.625 | % | 12/15/24 | 860,000 | 826,563 | (a)(b) | ||||||||||
| NCL Corp. Ltd., Senior Notes |
7.750 | % | 2/15/29 | 130,000 | 120,802 | (a) | ||||||||||
| NCL Finance Ltd., Senior Notes |
6.125 | % | 3/15/28 | 700,000 | 618,565 | (a) | ||||||||||
| Royal Caribbean Cruises Ltd., Senior Notes |
5.375 | % | 7/15/27 | 1,150,000 | 1,065,402 | (a)(b) | ||||||||||
| Royal Caribbean Cruises Ltd., Senior Notes |
5.500 | % | 4/1/28 | 720,000 | 660,842 | (a) | ||||||||||
| Saga PLC, Senior Notes |
5.500 | % | 7/15/26 | 140,000 | GBP | 136,296 | (c) | |||||||||
| Sands China Ltd., Senior Notes |
3.100 | % | 3/8/29 | 410,000 | 339,536 | |||||||||||
| Sands China Ltd., Senior Notes |
4.875 | % | 6/18/30 | 240,000 | 207,413 | |||||||||||
| Sands China Ltd., Senior Notes |
3.500 | % | 8/8/31 | 1,340,000 | 1,061,467 | |||||||||||
| Wheel Bidco Ltd., Senior Secured Notes |
6.750 | % | 7/15/26 | 250,000 | GBP | 255,244 | (a) | |||||||||
| Wynn Macau Ltd., Senior Notes |
5.625 | % | 8/26/28 | 200,000 | 173,609 | (a) | ||||||||||
| Wynn Macau Ltd., Senior Notes |
5.125 | % | 12/15/29 | 620,000 | 512,272 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Hotels, Restaurants & Leisure |
10,659,361 | |||||||||||||||
|
|
|
|||||||||||||||
| Household Durables - 0.5% |
||||||||||||||||
| Lennar Corp., Senior Notes |
5.000 | % | 6/15/27 | 430,000 | 418,528 | |||||||||||
| Lennar Corp., Senior Notes |
4.750 | % | 11/29/27 | 250,000 | 240,982 | |||||||||||
|
|
|
|||||||||||||||
| Total Household Durables |
659,510 | |||||||||||||||
|
|
|
|||||||||||||||
| Specialty Retail - 0.1% |
||||||||||||||||
| Michaels Cos. Inc., Senior Notes |
7.875 | % | 5/1/29 | 190,000 | 124,304 | (a) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL CONSUMER DISCRETIONARY |
22,477,210 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
3 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| CONSUMER STAPLES - 3.2% | ||||||||||||||||
| Beverages - 1.1% |
||||||||||||||||
| Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., Senior Notes |
4.700 | % | 2/1/36 | 1,540,000 | $ | 1,412,403 | (b) | |||||||||
|
|
|
|||||||||||||||
| Food Products - 1.4% |
||||||||||||||||
| Bellis Acquisition Co. PLC, Senior Secured Notes |
3.250 | % | 2/16/26 | 140,000 | GBP | 148,886 | (c) | |||||||||
| JBS USA LUX SA/JBS USA Food Co./JBS USA Finance Inc., Senior Notes |
3.750 | % | 12/1/31 | 500,000 | 400,950 | |||||||||||
| Kraft Heinz Foods Co., Senior Notes |
5.500 | % | 6/1/50 | 340,000 | 310,284 | (b) | ||||||||||
| Pilgrim’s Pride Corp., Senior Notes |
5.875 | % | 9/30/27 | 920,000 | 933,961 | (a)(b) | ||||||||||
|
|
|
|||||||||||||||
| Total Food Products |
1,794,081 | |||||||||||||||
|
|
|
|||||||||||||||
| Tobacco - 0.7% |
||||||||||||||||
| Altria Group Inc., Senior Notes |
2.450 | % | 2/4/32 | 1,000,000 | 754,879 | |||||||||||
| Reynolds American Inc., Senior Notes |
5.850 | % | 8/15/45 | 260,000 | 215,642 | |||||||||||
|
|
|
|||||||||||||||
| Total Tobacco |
970,521 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CONSUMER STAPLES |
4,177,005 | |||||||||||||||
|
|
|
|||||||||||||||
| ENERGY - 21.0% | ||||||||||||||||
| Energy Equipment & Services - 0.6% |
||||||||||||||||
| Noble Finance II LLC, Senior Notes |
8.000 | % | 4/15/30 | 280,000 | 283,918 | (a) | ||||||||||
| Sunnova Energy Corp., Senior Notes |
11.750 | % | 10/1/28 | 500,000 | 482,062 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Energy Equipment & Services |
765,980 | |||||||||||||||
|
|
|
|||||||||||||||
| Oil, Gas & Consumable Fuels - 20.4% |
||||||||||||||||
| Anadarko Finance Co., Senior Notes |
7.500 | % | 5/1/31 | 570,000 | 572,718 | |||||||||||
| Burlington Resources LLC, Senior Notes |
7.400 | % | 12/1/31 | 450,000 | 503,121 | |||||||||||
| Cheniere Energy Partners LP, Senior Notes |
4.000 | % | 3/1/31 | 500,000 | 428,000 | |||||||||||
| Continental Resources Inc., Senior Notes |
3.800 | % | 6/1/24 | 560,000 | 551,122 | |||||||||||
| Continental Resources Inc., Senior Notes |
4.375 | % | 1/15/28 | 210,000 | 194,879 | |||||||||||
| Continental Resources Inc., Senior Notes |
4.900 | % | 6/1/44 | 250,000 | 183,939 | |||||||||||
| Diamondback Energy Inc., Senior Notes |
3.500 | % | 12/1/29 | 400,000 | 355,238 | |||||||||||
| Ecopetrol SA, Senior Notes |
4.625 | % | 11/2/31 | 750,000 | 573,279 | |||||||||||
| Ecopetrol SA, Senior Notes |
5.875 | % | 5/28/45 | 390,000 | 257,347 | |||||||||||
| Ecopetrol SA, Senior Notes |
5.875 | % | 11/2/51 | 2,400,000 | 1,531,716 | |||||||||||
| Energy Transfer LP, Junior Subordinated Notes (6.625% to 2/15/28 then 3 mo. USD LIBOR + 4.155%) |
6.625 | % | 2/15/28 | 490,000 | 392,350 | (d)(e) | ||||||||||
| EOG Resources Inc., Senior Notes |
3.150 | % | 4/1/25 | 2,250,000 | 2,170,136 | (b) | ||||||||||
| EQM Midstream Partners LP, Senior Notes |
4.500 | % | 1/15/29 | 230,000 | 204,941 | (a) | ||||||||||
| EQM Midstream Partners LP, Senior Notes |
7.500 | % | 6/1/30 | 280,000 | 281,499 | (a) | ||||||||||
| EQT Corp., Senior Notes |
3.900 | % | 10/1/27 | 1,050,000 | 972,036 | (b) | ||||||||||
See Notes to Schedule of Investments.
|
4 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Oil, Gas & Consumable Fuels - (continued) |
||||||||||||||||
| EQT Corp., Senior Notes |
5.000 | % | 1/15/29 | 1,260,000 | $ | 1,185,597 | (b) | |||||||||
| KazMunayGas National Co. JSC, Senior Notes |
3.500 | % | 4/14/33 | 1,120,000 | 840,140 | (a) | ||||||||||
| Kinder Morgan Inc., Senior Notes |
7.750 | % | 1/15/32 | 190,000 | 206,167 | |||||||||||
| Kinder Morgan Inc., Senior Notes |
5.550 | % | 6/1/45 | 1,500,000 | 1,290,703 | (b) | ||||||||||
| NGPL PipeCo LLC, Senior Notes |
7.768 | % | 12/15/37 | 490,000 | 505,067 | (a) | ||||||||||
| Occidental Petroleum Corp., Senior Notes |
6.200 | % | 3/15/40 | 250,000 | 238,580 | |||||||||||
| Petrobras Global Finance BV, Senior Notes |
5.999 | % | 1/27/28 | 710,000 | 705,168 | |||||||||||
| Petrobras Global Finance BV, Senior Notes |
6.750 | % | 1/27/41 | 920,000 | 861,656 | |||||||||||
| Petroleos del Peru SA, Senior Notes |
4.750 | % | 6/19/32 | 1,270,000 | 898,851 | (a) | ||||||||||
| Petroleos Mexicanos, Senior Notes |
5.500 | % | 6/27/44 | 360,000 | 199,210 | |||||||||||
| Range Resources Corp., Senior Notes |
4.875 | % | 5/15/25 | 190,000 | 184,448 | |||||||||||
| Range Resources Corp., Senior Notes |
8.250 | % | 1/15/29 | 300,000 | 307,809 | |||||||||||
| Rockies Express Pipeline LLC, Senior Notes |
7.500 | % | 7/15/38 | 350,000 | 331,016 | (a) | ||||||||||
| Sabine Pass Liquefaction LLC, Senior Secured Notes |
5.000 | % | 3/15/27 | 1,850,000 | 1,795,619 | (b) | ||||||||||
| Southern Natural Gas Co. LLC, Senior Notes |
4.800 | % | 3/15/47 | 800,000 | 614,287 | (a) | ||||||||||
| Summit Midstream Holdings LLC/Summit Midstream Finance Corp., Secured Notes |
9.000 | % | 10/15/26 | 280,000 | 269,227 | (a) | ||||||||||
| Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes |
6.500 | % | 7/15/27 | 250,000 | 252,177 | |||||||||||
| Targa Resources Partners LP/Targa Resources Partners Finance Corp., Senior Notes |
6.875 | % | 1/15/29 | 20,000 | 20,037 | |||||||||||
| Transcontinental Gas Pipe Line Co. LLC, Senior Notes |
7.850 | % | 2/1/26 | 1,000,000 | 1,040,038 | (b) | ||||||||||
| Transportadora de Gas del Peru SA, Senior Notes |
4.250 | % | 4/30/28 | 750,000 | 709,384 | (a) | ||||||||||
| Venture Global LNG Inc., Senior Secured Notes |
8.375 | % | 6/1/31 | 250,000 | 246,011 | (a) | ||||||||||
| Western Midstream Operating LP, Senior Notes |
4.050 | % | 2/1/30 | 2,200,000 | 1,925,401 | (b) | ||||||||||
| Western Midstream Operating LP, Senior Notes |
5.300 | % | 3/1/48 | 100,000 | 78,176 | |||||||||||
| Western Midstream Operating LP, Senior Notes |
5.250 | % | 2/1/50 | 1,680,000 | 1,310,701 | (b) | ||||||||||
| Williams Cos. Inc., Senior Notes |
4.550 | % | 6/24/24 | 60,000 | 59,365 | |||||||||||
| Williams Cos. Inc., Senior Notes |
7.500 | % | 1/15/31 | 443,000 | 472,005 | |||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
5 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Oil, Gas & Consumable Fuels - (continued) |
||||||||||||||||
| Williams Cos. Inc., Senior Notes |
8.750 | % | 3/15/32 | 39,000 | $ | 44,379 | ||||||||||
| YPF SA, Senior Notes |
8.500 | % | 7/28/25 | 630,000 | 563,623 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Oil, Gas & Consumable Fuels |
26,327,163 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL ENERGY |
27,093,143 | |||||||||||||||
|
|
|
|||||||||||||||
| FINANCIALS - 27.8% | ||||||||||||||||
| Banks - 19.4% |
||||||||||||||||
| Banco Mercantil del Norte SA, Junior Subordinated Notes (6.625% to 1/24/32 then 10 year Treasury Constant Maturity Rate + 5.034%) |
6.625 | % | 1/24/32 | 490,000 | 384,772 | (a)(d)(e) | ||||||||||
| Bank of America Corp., Subordinated Notes |
4.250 | % | 10/22/26 | 1,000,000 | 950,325 | (b) | ||||||||||
| 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 | 542,152 | (b)(d)(e) | ||||||||||
| Barclays PLC, Subordinated Notes |
5.200 | % | 5/12/26 | 1,000,000 | 963,750 | (b) | ||||||||||
| 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 | 300,000 | 258,543 | (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 | 1,010,000 | 990,289 | (a)(d)(e) | ||||||||||
| BPCE SA, Subordinated Notes |
5.150 | % | 7/21/24 | 1,000,000 | 984,343 | (a) | ||||||||||
| Citigroup Inc., Junior Subordinated Notes (5.950% to 5/15/25 then 3 mo. Term SOFR + 4.167%) |
5.950 | % | 5/15/25 | 900,000 | 859,852 | (b)(d)(e) | ||||||||||
| Citigroup Inc., Subordinated Notes |
4.125 | % | 7/25/28 | 800,000 | 728,392 | (b) | ||||||||||
| Citigroup Inc., Subordinated Notes |
6.625 | % | 6/15/32 | 1,000,000 | 1,010,293 | (b) | ||||||||||
| Comerica Bank, Senior Notes |
2.500 | % | 7/23/24 | 410,000 | 392,595 | |||||||||||
| 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 | 1,075,405 | (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 | 356,640 | (d)(e) | ||||||||||
| HSBC Holdings PLC, Senior Notes (3.973% to 5/22/29 then 3 mo. Term SOFR + 1.872%) |
3.973 | % | 5/22/30 | 1,130,000 | 994,362 | (d) | ||||||||||
| HSBC Holdings PLC, Subordinated Notes |
||||||||||||||||
| (8.113% to 11/3/32 then SOFR + 4.250%) |
8.113 | % | 11/3/33 | 700,000 | 736,712 | (d) | ||||||||||
| Intesa Sanpaolo SpA, Subordinated Notes |
5.017 | % | 6/26/24 | 1,120,000 | 1,093,604 | (a) | ||||||||||
| Intesa Sanpaolo SpA, Subordinated Notes |
5.710 | % | 1/15/26 | 1,260,000 | 1,203,481 | (a) | ||||||||||
See Notes to Schedule of Investments.
|
6 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Banks - (continued) |
||||||||||||||||
| Intesa Sanpaolo SpA, Subordinated Notes (4.198% to 6/1/31 then 1 year Treasury Constant Maturity Rate + 2.600%) |
4.198 | % | 6/1/32 | 810,000 | $ | 597,528 | (a)(d) | |||||||||
| JPMorgan Chase & Co., Junior Subordinated Notes (3 mo. Term SOFR + 3.562%) |
8.934 | % | 11/1/23 | 2,600,000 | 2,615,319 | (b)(d)(e) | ||||||||||
| JPMorgan Chase & Co., Junior Subordinated Notes (6.100% to 10/1/24 then 3 mo. Term SOFR + 3.592%) |
6.100 | % | 10/1/24 | 400,000 | 395,540 | (b)(d)(e) | ||||||||||
| JPMorgan Chase & Co., Subordinated Notes |
4.950 | % | 6/1/45 | 500,000 | 428,029 | (b) | ||||||||||
| Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 9/27/25 then USD 5 year ICE Swap Rate + 4.496%) |
7.500 | % | 9/27/25 | 500,000 | 468,388 | (d)(e) | ||||||||||
| Lloyds Banking Group PLC, Subordinated Notes |
4.650 | % | 3/24/26 | 1,500,000 | 1,436,848 | |||||||||||
| NatWest Group PLC, Subordinated Notes |
6.000 | % | 12/19/23 | 150,000 | 149,612 | |||||||||||
| PNC Financial Services Group Inc., Senior Notes |
2.550 | % | 1/22/30 | 750,000 | 609,055 | |||||||||||
| PNC Financial Services Group Inc., Senior Notes (5.812% to 6/12/25 then SOFR + 1.322%) |
5.812 | % | 6/12/26 | 750,000 | 744,224 | (d) | ||||||||||
| Santander UK Group Holdings PLC, Subordinated Notes |
5.625 | % | 9/15/45 | 1,000,000 | 730,334 | (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 | 880,000 | 829,694 | (a)(b)(d) | ||||||||||
| Wells Fargo & Co., Junior Subordinated Notes |
5.900 | % | 6/15/24 | 2,500,000 | 2,456,138 | (b)(d)(e) | ||||||||||
|
|
|
|||||||||||||||
| Total Banks |
24,986,219 | |||||||||||||||
|
|
|
|||||||||||||||
| Capital Markets - 4.6% |
||||||||||||||||
| Charles Schwab Corp., Junior Subordinated Notes (4.000% to 12/1/30 then 10 year Treasury Constant Maturity Rate + 3.079%) |
4.000 | % | 12/1/30 | 2,000,000 | 1,413,642 | (b)(d)(e) | ||||||||||
| Credit Suisse AG AT1 Claim |
— | 1/1/50 | 2,560,000 | 0 | *(f)(g)(h) | |||||||||||
| Credit Suisse AG, Senior Notes |
7.500 | % | 2/15/28 | 400,000 | 418,622 | |||||||||||
| Goldman Sachs Group Inc., Senior Notes (2.640% to 2/24/27 then SOFR + 1.114%) |
2.640 | % | 2/24/28 | 2,000,000 | 1,784,116 | (d) | ||||||||||
| UBS Group AG, Junior Subordinated Notes (6.875% to 8/7/25 then USD 5 year ICE Swap Rate + 4.590%) |
6.875 | % | 8/7/25 | 680,000 | 643,548 | (c)(d)(e) | ||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
7 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Capital Markets - (continued) |
||||||||||||||||
| 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 | 820,000 | $ | 810,061 | (a)(b)(d)(e) | |||||||||
| UBS Group AG, Senior Notes (6.537% to 8/12/32 then SOFR + 3.920%) |
6.537 | % | 8/12/33 | 770,000 | 761,481 | (a)(d) | ||||||||||
|
|
|
|||||||||||||||
| Total Capital Markets |
5,831,470 | |||||||||||||||
|
|
|
|||||||||||||||
| Financial Services - 3.3% |
||||||||||||||||
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes |
3.400 | % | 10/29/33 | 2,500,000 | 1,935,081 | |||||||||||
| Ahold Lease USA Inc. Pass-Through-Trust, Senior Secured Notes |
8.620 | % | 1/2/25 | 45,508 | 46,333 | |||||||||||
| Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK) |
6.500 | % | 9/15/24 | 2,049,728 | 1,955,553 | (a)(i) | ||||||||||
| GTCR W-2 Merger Sub LLC, Senior Secured Notes |
7.500 | % | 1/15/31 | 220,000 | 220,589 | (a)(j) | ||||||||||
| GTCR W-2 Merger Sub LLC/GTCR W Dutch Finance Sub BV, Senior Secured Notes |
8.500 | % | 1/15/31 | 100,000 | GBP | 124,900 | (a)(j) | |||||||||
|
|
|
|||||||||||||||
| Total Financial Services |
4,282,456 | |||||||||||||||
|
|
|
|||||||||||||||
| Insurance - 0.5% |
||||||||||||||||
| MetLife Inc., Junior Subordinated Notes |
10.750 | % | 8/1/39 | 500,000 | 639,577 | |||||||||||
|
|
|
|||||||||||||||
| TOTAL FINANCIALS |
35,739,722 | |||||||||||||||
|
|
|
|||||||||||||||
| HEALTH CARE - 7.8% | ||||||||||||||||
| Biotechnology - 0.4% |
||||||||||||||||
| AbbVie Inc., Senior Notes |
2.950 | % | 11/21/26 | 500,000 | 464,205 | |||||||||||
|
|
|
|||||||||||||||
| Health Care Providers & Services - 5.5% |
||||||||||||||||
| Centene Corp., Senior Notes |
3.375 | % | 2/15/30 | 2,940,000 | 2,455,509 | (b) | ||||||||||
| CVS Health Corp., Senior Notes |
3.750 | % | 4/1/30 | 1,000,000 | 884,320 | (b) | ||||||||||
| CVS Pass-Through Trust |
5.789 | % | 1/10/26 | 114,394 | 112,533 | (a) | ||||||||||
| CVS Pass-Through Trust |
7.507 | % | 1/10/32 | 267,805 | 274,523 | (a)(b) | ||||||||||
| CVS Pass-Through Trust, Secured Trust |
5.880 | % | 1/10/28 | 191,718 | 186,449 | |||||||||||
| CVS Pass-Through Trust, Secured Trust |
6.943 | % | 1/10/30 | 240,412 | 240,760 | (b) | ||||||||||
| CVS Pass-Through Trust, Senior Secured Trust |
6.036 | % | 12/10/28 | 214,096 | 211,894 | (b) | ||||||||||
| HCA Inc., Senior Notes |
4.500 | % | 2/15/27 | 1,000,000 | 955,013 | (b) | ||||||||||
| HCA Inc., Senior Notes |
3.500 | % | 9/1/30 | 1,000,000 | 846,392 | |||||||||||
| Legacy LifePoint Health LLC, Senior Secured Notes |
4.375 | % | 2/15/27 | 360,000 | 310,039 | (a) | ||||||||||
| Tenet Healthcare Corp., Secured Notes |
6.250 | % | 2/1/27 | 670,000 | 648,941 | |||||||||||
|
|
|
|||||||||||||||
| Total Health Care Providers & Services |
7,126,373 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
|
8 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Pharmaceuticals - 1.9% |
||||||||||||||||
| Par Pharmaceutical Inc., Senior Secured Notes |
7.500 | % | 4/1/27 | 330,000 | $ | 235,614 | *(a)(k) | |||||||||
| Teva Pharmaceutical Finance Netherlands III BV, Senior Notes |
6.000 | % | 4/15/24 | 760,000 | 756,926 | (b) | ||||||||||
| Teva Pharmaceutical Finance Netherlands III BV, Senior Notes |
3.150 | % | 10/1/26 | 780,000 | 695,846 | |||||||||||
| Teva Pharmaceutical Finance Netherlands III BV, Senior Notes |
5.125 | % | 5/9/29 | 846,000 | 765,736 | |||||||||||
|
|
|
|||||||||||||||
| Total Pharmaceuticals |
2,454,122 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL HEALTH CARE |
10,044,700 | |||||||||||||||
|
|
|
|||||||||||||||
| INDUSTRIALS - 13.0% | ||||||||||||||||
| Aerospace & Defense - 4.4% |
||||||||||||||||
| Avolon Holdings Funding Ltd., Senior Notes |
3.250 | % | 2/15/27 | 750,000 | 668,589 | (a) | ||||||||||
| Avolon Holdings Funding Ltd., Senior Notes |
2.750 | % | 2/21/28 | 1,000,000 | 848,291 | (a) | ||||||||||
| Boeing Co., Senior Notes |
3.200 | % | 3/1/29 | 750,000 | 659,151 | (b) | ||||||||||
| Boeing Co., Senior Notes |
3.625 | % | 2/1/31 | 2,550,000 | 2,204,207 | (b) | ||||||||||
| Boeing Co., Senior Notes |
6.125 | % | 2/15/33 | 600,000 | 604,640 | (b) | ||||||||||
| Boeing Co., Senior Notes |
3.750 | % | 2/1/50 | 500,000 | 340,244 | (b) | ||||||||||
| Bombardier Inc., Senior Notes |
7.500 | % | 2/1/29 | 310,000 | 294,580 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Aerospace & Defense |
5,619,702 | |||||||||||||||
|
|
|
|||||||||||||||
| Building Products - 0.8% |
||||||||||||||||
| Standard Industries Inc., Senior Notes |
4.375 | % | 7/15/30 | 1,278,000 | 1,059,774 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Commercial Services & Supplies - 0.7% |
||||||||||||||||
| CoreCivic Inc., Senior Notes |
8.250 | % | 4/15/26 | 930,000 | 944,340 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Machinery - 0.5% |
||||||||||||||||
| Cellnex Finance Co. SA, Senior Notes |
2.000 | % | 2/15/33 | 500,000 | EUR | 408,777 | (c) | |||||||||
| Titan International Inc., Senior Secured Notes |
7.000 | % | 4/30/28 | 210,000 | 196,472 | |||||||||||
|
|
|
|||||||||||||||
| Total Machinery |
605,249 | |||||||||||||||
|
|
|
|||||||||||||||
| Passenger Airlines - 4.6% |
||||||||||||||||
| American Airlines Group Inc., Senior Notes |
3.750 | % | 3/1/25 | 570,000 | 540,582 | (a)(b) | ||||||||||
| American Airlines Inc./AAdvantage Loyalty IP |
||||||||||||||||
| Ltd., Senior Secured Notes |
5.500 | % | 4/20/26 | 394,167 | 385,319 | (a)(b) | ||||||||||
| American Airlines Inc./AAdvantage Loyalty IP |
||||||||||||||||
| Ltd., Senior Secured Notes |
5.750 | % | 4/20/29 | 550,000 | 511,981 | (a)(b) | ||||||||||
| Delta Air Lines Inc., Senior Notes |
2.900 | % | 10/28/24 | 310,000 | 298,226 | (b) | ||||||||||
| Delta Air Lines Inc., Senior Notes |
7.375 | % | 1/15/26 | 260,000 | 263,422 | (b) | ||||||||||
| Delta Air Lines Inc., Senior Secured Notes |
7.000 | % | 5/1/25 | 1,490,000 | 1,506,693 | (a)(b)(l) | ||||||||||
| Mileage Plus Holdings LLC/Mileage Plus Intellectual Property Assets Ltd., Senior Secured Notes |
6.500 | % | 6/20/27 | 690,000 | 684,340 | (a)(b) | ||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
9 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Passenger Airlines - (continued) |
||||||||||||||||
| Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes |
8.000 | % | 9/20/25 | 1,169,999 | $ | 1,170,451 | (a)(b) | |||||||||
| Spirit Loyalty Cayman Ltd./Spirit IP Cayman Ltd., Senior Secured Notes |
8.000 | % | 9/20/25 | 220,000 | 220,100 | (a) | ||||||||||
| United Airlines Pass-Through Trust |
4.875 | % | 1/15/26 | 433,155 | 419,656 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Passenger Airlines |
6,000,770 | |||||||||||||||
|
|
|
|||||||||||||||
| Trading Companies & Distributors - 2.0% |
||||||||||||||||
| Ashtead Capital Inc., Senior Notes |
2.450 | % | 8/12/31 | 1,230,000 | 934,393 | (a) | ||||||||||
| H&E Equipment Services Inc., Senior Notes |
3.875 | % | 12/15/28 | 750,000 | 641,261 | (a)(b) | ||||||||||
| United Rentals North America Inc., Secured Notes |
3.875 | % | 11/15/27 | 1,000,000 | 906,195 | (b) | ||||||||||
| United Rentals North America Inc., Senior Notes |
5.500 | % | 5/15/27 | 80,000 | 77,825 | |||||||||||
|
|
|
|||||||||||||||
| Total Trading Companies & Distributors |
2,559,674 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INDUSTRIALS |
16,789,509 | |||||||||||||||
|
|
|
|||||||||||||||
| INFORMATION TECHNOLOGY - 2.0% | ||||||||||||||||
| Communications Equipment - 0.2% |
||||||||||||||||
| CommScope Inc., Senior Notes |
7.125 | % | 7/1/28 | 20,000 | 12,000 | (a) | ||||||||||
| CommScope Inc., Senior Secured Notes |
4.750 | % | 9/1/29 | 10,000 | 7,369 | (a) | ||||||||||
| CommScope Technologies LLC, Senior Notes |
5.000 | % | 3/15/27 | 150,000 | 85,372 | (a) | ||||||||||
| Viasat Inc., Senior Notes |
7.500 | % | 5/30/31 | 250,000 | 165,437 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Communications Equipment |
270,178 | |||||||||||||||
|
|
|
|||||||||||||||
| Semiconductors & Semiconductor Equipment - 0.4% |
||||||||||||||||
| Broadcom Corp./Broadcom Cayman Finance Ltd., Senior Notes |
3.125 | % | 1/15/25 | 500,000 | 482,257 | |||||||||||
|
|
|
|||||||||||||||
| Technology Hardware, Storage & Peripherals - 1.4% |
||||||||||||||||
| Seagate HDD Cayman, Senior Notes |
4.750 | % | 1/1/25 | 1,220,000 | 1,191,225 | (b) | ||||||||||
| Seagate HDD Cayman, Senior Notes |
4.875 | % | 6/1/27 | 260,000 | 245,837 | |||||||||||
| Western Digital Corp., Senior Notes |
4.750 | % | 2/15/26 | 430,000 | 410,127 | |||||||||||
|
|
|
|||||||||||||||
| Total Technology Hardware, Storage & Peripherals |
1,847,189 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INFORMATION TECHNOLOGY |
2,599,624 | |||||||||||||||
|
|
|
|||||||||||||||
| MATERIALS - 4.7% | ||||||||||||||||
| Chemicals - 1.2% |
||||||||||||||||
| Braskem America Finance Co., Senior Notes |
7.125 | % | 7/22/41 | 920,000 | 803,804 | (c) | ||||||||||
| Sasol Financing USA LLC, Senior Notes |
8.750 | % | 5/3/29 | 700,000 | 673,729 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Chemicals |
1,477,533 | |||||||||||||||
|
|
|
|||||||||||||||
| Containers & Packaging - 0.0%†† |
||||||||||||||||
| Pactiv LLC, Senior Notes |
7.950 | % | 12/15/25 | 50,000 | 49,844 | |||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
|
10 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Metals & Mining - 2.1% |
||||||||||||||||
| ArcelorMittal SA, Senior Notes |
7.000 | % | 10/15/39 | 430,000 | $ | 431,650 | ||||||||||
| Arsenal AIC Parent LLC, Senior Secured Notes |
8.000 | % | 10/1/30 | 100,000 | 99,627 | (a) | ||||||||||
| First Quantum Minerals Ltd., Senior Notes |
8.625 | % | 6/1/31 | 350,000 | 348,751 | (a) | ||||||||||
| Freeport-McMoRan Inc., Senior Notes |
5.400 | % | 11/14/34 | 220,000 | 201,658 | |||||||||||
| Freeport-McMoRan Inc., Senior Notes |
5.450 | % | 3/15/43 | 580,000 | 495,262 | |||||||||||
| Teck Resources Ltd., Senior Notes |
6.000 | % | 8/15/40 | 210,000 | 188,178 | |||||||||||
| Vale Overseas Ltd., Senior Notes |
6.875 | % | 11/10/39 | 940,000 | 941,768 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Metals & Mining |
2,706,894 | |||||||||||||||
|
|
|
|||||||||||||||
| Paper & Forest Products - 1.4% |
||||||||||||||||
| Suzano Austria GmbH, Senior Notes |
5.750 | % | 7/14/26 | 950,000 | 939,567 | (a)(b) | ||||||||||
| Suzano Austria GmbH, Senior Notes |
3.750 | % | 1/15/31 | 1,000,000 | 822,836 | |||||||||||
|
|
|
|||||||||||||||
| Total Paper & Forest Products |
1,762,403 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL MATERIALS |
5,996,674 | |||||||||||||||
|
|
|
|||||||||||||||
| REAL ESTATE - 0.6% | ||||||||||||||||
| Hotel & Resort REITs - 0.2% |
||||||||||||||||
| Service Properties Trust, Senior Notes |
4.375 | % | 2/15/30 | 290,000 | 208,401 | |||||||||||
|
|
|
|||||||||||||||
| Real Estate Management & Development - 0.4% |
||||||||||||||||
| Cushman & Wakefield US Borrower LLC, Senior Secured Notes |
8.875 | % | 9/1/31 | 120,000 | 116,207 | (a) | ||||||||||
| Samhallsbyggnadsbolaget i Norden AB, Senior Notes |
2.375 | % | 9/4/26 | 600,000 | EUR | 451,467 | (c) | |||||||||
|
|
|
|||||||||||||||
| Total Real Estate Management & Development |
567,674 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL REAL ESTATE |
776,075 | |||||||||||||||
|
|
|
|||||||||||||||
| UTILITIES - 1.4% | ||||||||||||||||
| Electric Utilities - 0.8% |
||||||||||||||||
| FirstEnergy Corp., Senior Notes |
7.375 | % | 11/15/31 | 700,000 | 764,659 | (b) | ||||||||||
| Vistra Operations Co. LLC, Senior Notes |
7.750 | % | 10/15/31 | 300,000 | 295,803 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Electric Utilities |
1,060,462 | |||||||||||||||
|
|
|
|||||||||||||||
| Independent Power and Renewable Electricity Producers - 0.6% |
|
|||||||||||||||
| Minejesa Capital BV, Senior Secured Notes |
4.625 | % | 8/10/30 | 810,000 | 722,723 | (a) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL UTILITIES |
1,783,185 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CORPORATE BONDS & NOTES |
143,055,200 | |||||||||||||||
|
|
|
|||||||||||||||
| SOVEREIGN BONDS - 9.1% | ||||||||||||||||
| Angola - 0.2% |
||||||||||||||||
| Angolan Government International Bond, Senior Notes |
8.000 | % | 11/26/29 | 400,000 | 330,209 | (a) | ||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
11 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Argentina - 0.6% |
||||||||||||||||
| Argentine Republic Government International Bond, Senior Notes |
1.000 | % | 7/9/29 | 43,394 | $ | 12,151 | ||||||||||
| Provincia de Buenos Aires, Senior Notes, Step bond (6.375% to 9/1/24 then 6.625%) |
6.375 | % | 9/1/37 | 468,827 | 154,312 | (a) | ||||||||||
| Provincia de Cordoba, Senior Notes |
6.875 | % | 12/10/25 | 166,668 | 139,484 | (a) | ||||||||||
| Provincia de Cordoba, Senior Notes |
6.990 | % | 6/1/27 | 560,000 | 421,608 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Argentina |
727,555 | |||||||||||||||
|
|
|
|||||||||||||||
| Colombia - 1.0% |
||||||||||||||||
| Colombia Government International Bond, Senior Notes |
3.250 | % | 4/22/32 | 1,750,000 | 1,261,563 | |||||||||||
|
|
|
|||||||||||||||
| Dominican Republic - 0.2% |
||||||||||||||||
| Dominican Republic International Bond, Senior Notes |
4.875 | % | 9/23/32 | 380,000 | 309,637 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Indonesia - 1.4% |
||||||||||||||||
| Indonesia Government International Bond, Senior Notes |
3.850 | % | 7/18/27 | 300,000 | 284,246 | (a) | ||||||||||
| Indonesia Government International Bond, Senior Notes |
3.500 | % | 1/11/28 | 1,670,000 | 1,550,726 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Indonesia |
1,834,972 | |||||||||||||||
|
|
|
|||||||||||||||
| Mexico - 2.7% |
||||||||||||||||
| Mexican Bonos, Bonds |
7.750 | % | 5/29/31 | 34,280,000 | MXN | 1,733,621 | ||||||||||
| Mexico Government International Bond, Senior Notes |
3.750 | % | 1/11/28 | 500,000 | 463,707 | |||||||||||
| Mexico Government International Bond, Senior Notes |
2.659 | % | 5/24/31 | 1,560,000 | 1,234,793 | |||||||||||
|
|
|
|||||||||||||||
| Total Mexico |
3,432,121 | |||||||||||||||
|
|
|
|||||||||||||||
| Panama - 1.9% |
||||||||||||||||
| Panama Government International Bond, Senior Notes |
4.500 | % | 5/15/47 | 3,400,000 | 2,394,572 | |||||||||||
|
|
|
|||||||||||||||
| Peru - 1.0% |
||||||||||||||||
| Peruvian Government International Bond, Senior Notes |
2.783 | % | 1/23/31 | 1,540,000 | 1,264,930 | |||||||||||
|
|
|
|||||||||||||||
| Russia - 0.1% |
||||||||||||||||
| Russian Federal Bond - OFZ |
7.050 | % | 1/19/28 | 30,286,000 | RUB | 98,861 | *(k) | |||||||||
| Russian Federal Bond - OFZ |
6.900 | % | 5/23/29 | 6,010,000 | RUB | 19,618 | *(k) | |||||||||
|
|
|
|||||||||||||||
| Total Russia |
118,479 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL SOVEREIGN BONDS |
11,674,038 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
|
12 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| SENIOR LOANS - 7.8% | ||||||||||||||||
| COMMUNICATION SERVICES - 0.4% | ||||||||||||||||
| Media - 0.4% |
||||||||||||||||
| Charter Communications Operating LLC, Term Loan B2 (3 mo. Term SOFR + 1.750%) |
7.116 | % | 2/1/27 | 481,203 | $ | 481,234 | (d)(m)(n) | |||||||||
|
|
|
|||||||||||||||
| CONSUMER DISCRETIONARY - 3.4% | ||||||||||||||||
| Diversified Consumer Services - 0.1% |
||||||||||||||||
| WW International Inc., Initial Term Loan (1 mo. Term SOFR + 3.614%) |
8.931 | % | 4/13/28 | 200,000 | 152,084 | (d)(m)(n) | ||||||||||
|
|
|
|||||||||||||||
| Hotels, Restaurants & Leisure - 3.3% |
||||||||||||||||
| Hilton Worldwide Finance LLC, Refinance Term Loan B2 (1 mo. Term SOFR + 1.850%) |
7.170 | % | 6/22/26 | 3,273,291 | 3,275,910 | (d)(m)(n) | ||||||||||
| Scientific Games International Inc., Initial Term Loan B (1 mo. Term SOFR + 3.100%) |
8.434 | % | 4/13/29 | 992,462 | 993,703 | (d)(m)(n) | ||||||||||
|
|
|
|||||||||||||||
| Total Hotels, Restaurants & Leisure |
4,269,613 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CONSUMER DISCRETIONARY |
4,421,697 | |||||||||||||||
|
|
|
|||||||||||||||
| FINANCIALS - 1.7% | ||||||||||||||||
| Financial Services - 1.7% |
||||||||||||||||
| Citadel Securities LP, Term Loan B (1 mo. Term SOFR + 2.614%) |
7.931 | % | 7/29/30 | 2,232,953 | 2,231,390 | (d)(m)(n) | ||||||||||
|
|
|
|||||||||||||||
| INDUSTRIALS - 1.5% | ||||||||||||||||
| Passenger Airlines - 1.5% |
||||||||||||||||
| Delta Air Lines Inc., Initial Term Loan (3 mo. Term SOFR + 3.750%) |
9.076 | % | 10/20/27 | 552,500 | 572,702 | (d)(m)(n) | ||||||||||
| Mileage Plus Holdings LLC, Initial Term Loan (3 mo. USD LIBOR + 5.400%) |
10.798 | % | 6/21/27 | 1,327,500 | 1,381,204 | (d)(m)(n) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL INDUSTRIALS |
1,953,906 | |||||||||||||||
|
|
|
|||||||||||||||
| MATERIALS - 0.8% | ||||||||||||||||
| Paper & Forest Products - 0.8% |
||||||||||||||||
| Asplundh Tree Expert LLC, 2021 Refinancing Term Loan (1 mo. Term SOFR + 1.850%) |
7.166 | % | 9/7/27 | 992,328 | 992,392 | (d)(m)(n) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL SENIOR LOANS |
10,080,619 | |||||||||||||||
|
|
|
|||||||||||||||
| U.S. GOVERNMENT & AGENCY OBLIGATIONS - 3.5% |
|
|||||||||||||||
| U.S. Government Obligations - 3.5% |
||||||||||||||||
| U.S. Treasury Notes |
3.250 | % | 8/31/24 | 2,395,000 | 2,347,484 | |||||||||||
| U.S. Treasury Notes |
4.125 | % | 1/31/25 | 1,450,000 | 1,427,741 | |||||||||||
| U.S. Treasury Notes |
0.750 | % | 4/30/26 | 850,000 | 765,830 | |||||||||||
|
|
|
|||||||||||||||
| TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS |
|
4,541,055 | ||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
13 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| ASSET-BACKED SECURITIES - 1.8% | ||||||||||||||||
| American Home Mortgage Investment Trust, 2007-A 4A (1 mo. Term SOFR + 1.014%) |
6.338 | % | 7/25/46 | 437,070 | $ | 115,204 | (a)(d) | |||||||||
| Bayview Financial Asset Trust, 2007-SR1A M1 (1 mo. Term SOFR + 0.914%) |
6.234 | % | 3/25/37 | 305,670 | 297,144 | (a)(d) | ||||||||||
| Bayview Financial Asset Trust, 2007-SR1A M4 (1 mo. Term SOFR + 1.614%) |
6.934 | % | 3/25/37 | 31,621 | 31,636 | (a)(d) | ||||||||||
| CWABS Asset Backed Notes Trust, 2007- SEA2 1A1 (1 mo. Term SOFR + 1.114%) |
7.434 | % | 8/25/47 | 433 | 432 | (a)(d) | ||||||||||
| Financial Asset Securities Corp. Trust, 2005-1A 1A3B (1 mo. Term SOFR + 0.524%) |
5.842 | % | 2/27/35 | 154,314 | 139,619 | (a)(d) | ||||||||||
| GSAMP Trust, 2003-SEA2 A1 |
5.421 | % | 7/25/33 | 376,748 | 355,836 | |||||||||||
| Indymac Manufactured Housing Contract Pass-Through Certificates, 1997-1 A5 |
6.970 | % | 2/25/28 | 6,460 | 6,407 | |||||||||||
| Morgan Stanley ABS Capital Inc. Trust, 2003- SD1 A1 (1 mo. Term SOFR + 1.114%) |
6.434 | % | 3/25/33 | 4,816 | 4,690 | (d) | ||||||||||
| Morgan Stanley ABS Capital Inc. Trust, 2004- HE7 M1 (1 mo. Term SOFR + 1.014%) |
6.334 | % | 8/25/34 | 785,199 | 753,812 | (d) | ||||||||||
| Oakwood Mortgage Investors Inc., 2002-B A3 |
6.060 | % | 6/15/32 | 1,606 | 1,601 | (d) | ||||||||||
| Origen Manufactured Housing Contract Trust, 2006-A A2 |
6.850 | % | 10/15/37 | 281,473 | 247,622 | (d) | ||||||||||
| Origen Manufactured Housing Contract Trust, 2007-A A2 |
7.134 | % | 4/15/37 | 361,295 | 331,499 | (d) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL ASSET-BACKED SECURITIES |
2,285,502 | |||||||||||||||
|
|
|
|||||||||||||||
| CONVERTIBLE BONDS & NOTES - 1.4% | ||||||||||||||||
| COMMUNICATION SERVICES - 1.0% | ||||||||||||||||
| Media - 1.0% |
||||||||||||||||
| DISH Network Corp., Senior Notes |
2.375 | % | 3/15/24 | 370,000 | 356,587 | |||||||||||
| DISH Network Corp., Senior Notes |
0.000 | % | 12/15/25 | 1,020,000 | 685,950 | |||||||||||
| DISH Network Corp., Senior Notes |
3.375 | % | 8/15/26 | 415,000 | 251,490 | |||||||||||
|
|
|
|||||||||||||||
| TOTAL COMMUNICATION SERVICES |
1,294,027 | |||||||||||||||
|
|
|
|||||||||||||||
| INDUSTRIALS - 0.4% | ||||||||||||||||
| Passenger Airlines - 0.4% |
||||||||||||||||
| Spirit Airlines Inc., Senior Notes |
1.000 | % | 5/15/26 | 550,000 | 460,075 | |||||||||||
|
|
|
|||||||||||||||
| TOTAL CONVERTIBLE BONDS & NOTES |
1,754,102 | |||||||||||||||
|
|
|
|||||||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS(o) - 0.9% |
||||||||||||||||
| Bear Stearns ALT-A Trust, 2004-3 A1 (1 mo. Term SOFR + 0.754%) |
6.074 | % | 4/25/34 | 33,981 | 32,167 | (d) | ||||||||||
| CHL Mortgage Pass-Through Trust, 2005-7 1A1 (1 mo. Term SOFR + 0.654%) |
5.974 | % | 3/25/35 | 176,227 | 159,619 | (d) | ||||||||||
See Notes to Schedule of Investments.
|
14 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS(o) - (continued) | ||||||||||||||||
| Federal National Mortgage Association (FNMA), 2004-W15 1A2 |
6.500 | % | 8/25/44 | 46,623 | $ | 46,730 | ||||||||||
| Impac CMB Trust, 2004-10 2A (1 mo. Term SOFR + 0.754%) |
6.074 | % | 3/25/35 | 45,595 | 41,176 | (d) | ||||||||||
| Impac CMB Trust, 2005-2 2A2 (1 mo. Term SOFR + 0.914%) |
6.234 | % | 4/25/35 | 11,784 | 10,846 | (d) | ||||||||||
| MAFI II Remic Trust, 1998-BI B1 |
5.219 | % | 11/20/24 | 113,115 | 92,036 | (d) | ||||||||||
| MERIT Securities Corp., 2011-PA B3 (1 mo. USD LIBOR + 2.250%) |
7.683 | % | 9/28/32 | 441,302 | 390,940 | (a)(d) | ||||||||||
| Prime Mortgage Trust, 2005-2 2XB, IO |
1.743 | % | 10/25/32 | 897,579 | 52,017 | (d) | ||||||||||
| Prime Mortgage Trust, 2005-5 1X, IO |
1.098 | % | 7/25/34 | 1,198,840 | 33,836 | (d) | ||||||||||
| RAMP Trust, 2005-SL2 APO, STRIPS, PO |
0.000 | % | 2/25/32 | 1,864 | 1,498 | |||||||||||
| Sequoia Mortgage Trust, 2003-2 A2 (6 mo. USD LIBOR + 0.680%) |
6.105 | % | 6/20/33 | 4,053 | 3,838 | (d) | ||||||||||
| Sequoia Mortgage Trust, 2004-10 A1A (1 mo. Term SOFR + 0.734%) |
6.059 | % | 11/20/34 | 3,507 | 3,190 | (d) | ||||||||||
| Structured Asset Securities Corp., 1998-RF2 A |
4.739 | % | 7/15/27 | 60,113 | 60,017 | (a)(d) | ||||||||||
| Structured Asset Securities Corp. Mortgage Pass-Through Certificates, 2003-9A 2A2 |
6.010 | % | 3/25/33 | 21,536 | 20,641 | (d) | ||||||||||
| UBS Commercial Mortgage Trust, 2018-C15 C |
5.323 | % | 12/15/51 | 285,000 | 227,667 | (d) | ||||||||||
| WaMu Mortgage Pass-Through Certificates Trust, 2004-AR6 A (1 mo. Term SOFR + 0.954%) |
6.274 | % | 5/25/44 | 5,154 | 5,142 | (d) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS |
|
1,181,360 | ||||||||||||||
|
|
|
|||||||||||||||
| EXPIRATION DATE |
WARRANTS | |||||||||||||||
| WARRANTS - 0.0%†† | ||||||||||||||||
| FINANCIALS - 0.0%†† | ||||||||||||||||
| Capital Markets - 0.0%†† |
||||||||||||||||
| EG Acquisition Corp., Class A Shares (Cost - $9,613) |
5/28/28 | 10,040 | 1,715 | * | ||||||||||||
|
|
|
|||||||||||||||
| SHARES | ||||||||||||||||
| PREFERRED STOCKS - 0.0%†† | ||||||||||||||||
| FINANCIALS - 0.0%†† | ||||||||||||||||
| Financial Services - 0.0%†† |
||||||||||||||||
| Corporate Backed Trust Certificates (Cost - $0) |
7.375 | % | 33,900 | 10 | *(f)(g)(k) | |||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS |
174,573,601 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
15 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
(Percentages shown based on Fund net assets)
| SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| SHORT-TERM INVESTMENTS - 1.3% | ||||||||||||||||
| U.S. TREASURY BILLS - 0.8% | ||||||||||||||||
| U.S. Treasury Bills |
1.792 | % | 10/3/23 | 1,000,000 | $ | 999,854 | (p) | |||||||||
|
|
|
|||||||||||||||
| SHARES | ||||||||||||||||
| MONEY MARKET FUNDS - 0.5% | ||||||||||||||||
| Western Asset Premier Institutional Government Reserves, Premium Shares |
5.259 | % | 706,871 | 706,871 | (q)(r) | |||||||||||
|
|
|
|||||||||||||||
| TOTAL SHORT-TERM INVESTMENTS |
1,706,725 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS - 136.9% |
176,280,326 | |||||||||||||||
| Liabilities in Excess of Other Assets - (36.9)% |
(47,500,671 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| TOTAL NET ASSETS - 100.0% |
$ | 128,779,655 | ||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
|
16 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
| † | Face amount denominated in U.S. dollars, unless otherwise noted. |
| †† | Represents less than 0.1%. |
| * | Non-income producing security. |
| (a) | Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees. |
| (b) | All or a portion of this security is pledged as collateral pursuant to the loan agreement. |
| (c) | Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Trustees. |
| (d) | Variable rate security. Interest rate disclosed is as of the most recent information available. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. |
| (e) | Security has no maturity date. The date shown represents the next call date. |
| (f) | Security is valued in good faith in accordance with procedures approved by the Board of Trustees (Note 1). |
| (g) | Security is valued using significant unobservable inputs (Note 1). |
| (h) | Value is less than $1. |
| (i) | Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional securities. |
| (j) | Securities traded on a when-issued or delayed delivery basis. |
| (k) | The coupon payment on this security is currently in default as of September 30, 2023. |
| (l) | All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements. |
| (m) | Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan. |
| (n) | Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. |
| (o) | Collateralized mortgage obligations are secured by an underlying pool of mortgages or mortgage pass-through certificates that are structured to direct payments on underlying collateral to different series or classes of the obligations. The interest rate may change positively or inversely in relation to one or more interest rates, financial indices or other financial indicators and may be subject to an upper and/or lower limit. |
| (p) | Rate shown represents yield-to-maturity. |
| (q) | Rate shown is one-day yield as of the end of the reporting period. |
| (r) | In this instance, as defined in the Investment Company Act of 1940, an “Affiliated Company” represents Fund ownership of at least 5% of the outstanding voting securities of an issuer, or a company which is under common ownership or control with the Fund. At September 30, 2023, the total market value of investments in Affiliated Companies was $706,871 and the cost was $706,871 (Note 2). |
See Notes to Schedule of Investments.
| Western Asset Premier Bond Fund 2023 Quarterly Report |
17 |
WESTERN ASSET PREMIER BOND FUND
| Schedule of investments (unaudited) (cont’d) | September 30, 2023 |
Abbreviation(s) used in this schedule:
| EUR | — Euro | |
| GBP | — British Pound | |
| ICE | — Intercontinental Exchange | |
| IO | — Interest Only | |
| JSC | — Joint Stock Company | |
| LIBOR | — London Interbank Offered Rate | |
| MXN | — Mexican Peso | |
| OFZ | — Obligatsyi Federal’novo Zaima (Russian Federal Loan Obligation) | |
| PIK | — Payment-In-Kind | |
| PO | — Principal Only | |
| RUB | — Russian Ruble | |
| SOFR | — Secured Overnight Financing Rate | |
| SONIA | — Sterling Overnight Index Average | |
| STRIPS | — Separate Trading of Registered Interest and Principal Securities | |
| USD | — United States Dollar |
At September 30, 2023, the Fund had the following open reverse repurchase agreements:
| Counterparty |
Rate | Effective Date |
Maturity Date |
Face Amount of Reverse Repurchase Agreements |
Asset Class of Collateral* |
Collateral Value** |
||||||||||||
| Goldman Sachs & Co. |
5.720 | % | 9/28/2023 | 10/31/2023 | $ | 1,467,423 | Corporate Bonds & Notes |
$ | 1,550,151 | |||||||||
| * | Refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements. |
| ** | Including accrued interest. |
At September 30, 2023, the Fund had the following open forward foreign currency contracts:
| Currency Purchased |
Currency Sold |
Counterparty |
Settlement Date |
Unrealized Appreciation |
||||||||||||||||||
| USD | 3,213,089 | EUR | 2,910,037 | Morgan Stanley & Co. Inc. | 10/20/23 | $ | 133,724 | |||||||||||||||
| USD | 1,180,149 | GBP | 918,767 | Morgan Stanley & Co. Inc. | 10/20/23 | 59,013 | ||||||||||||||||
|
|
|
|||||||||||||||||||||
| Net unrealized appreciation on open forward foreign currency contracts |
$ | 192,737 | ||||||||||||||||||||
|
|
|
|||||||||||||||||||||
Abbreviation(s) used in this table:
| EUR | — Euro | |
| GBP | — British Pound | |
| USD | — United States Dollar |
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s investments as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
|
18 |
Western Asset Premier Bond Fund 2023 Quarterly Report |
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset Premier Bond Fund (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company. The Fund commenced investment operations on March 28, 2002. The Fund’s investment objective is to provide current income and capital appreciation by investing primarily in a diversified portfolio of investment grade bonds.
The Fund follows the accounting and reporting guidance in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic 946, Financial Services – Investment Companies (“ASC 946”). The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”), including, but not limited to, ASC 946.
(a) Investment valuation. 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 typically 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. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. 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. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the adviser to be unreliable, the market price may be determined by the adviser using quotations from one or more broker/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 by the Fund’s Board of Trustees.
Pursuant to policies adopted by the Board of Trustees, the Fund’s adviser has been designated as the valuation designee and is responsible for the oversight of the daily valuation process. The Fund’s adviser is assisted by the Global Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Fund’s adviser and the Board of Trustees. When determining the reliability of third party
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Notes to Schedule of Investments (unaudited) (continued)
pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuer’s financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts’ research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Trustees, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Trustees quarterly.
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.
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
| • | Level 1– unadjusted 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) |
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Notes to Schedule of Investments (unaudited) (continued)
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 in valuing the Fund’s assets carried at fair value:
| ASSETS |
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| DESCRIPTION |
QUOTED PRICES (LEVEL 1) |
OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL | ||||||||||||
| Long-Term Investments†: |
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| Corporate Bonds & Notes |
— | $ | 143,055,200 | $ | 0 | * | $ | 143,055,200 | ||||||||
| Sovereign Bonds |
— | 11,674,038 | — | 11,674,038 | ||||||||||||
| Senior Loans |
— | 10,080,619 | — | 10,080,619 | ||||||||||||
| U.S. Government & Agency |
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| Obligations |
— | 4,541,055 | — | 4,541,055 | ||||||||||||
| Asset-Backed Securities |
— | 2,285,502 | — | 2,285,502 | ||||||||||||
| Convertible Bonds & Notes |
— | 1,754,102 | — | 1,754,102 | ||||||||||||
| Collateralized Mortgage Obligations |
— | 1,181,360 | — | 1,181,360 | ||||||||||||
| Warrants |
$ | 1,715 | — | — | 1,715 | |||||||||||
| Preferred Stocks |
— | — | 10 | 10 | ||||||||||||
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| Total Long-Term Investments |
1,715 | 174,571,876 | 10 | 174,573,601 | ||||||||||||
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| Short-Term Investments†: |
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| U.S. Treasury Bills |
— | 999,854 | — | 999,854 | ||||||||||||
| Money Market Funds |
706,871 | — | — | 706,871 | ||||||||||||
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| Total Short-Term Investments |
706,871 | 999,854 | — | 1,706,725 | ||||||||||||
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| Total Investments |
$ | 708,586 | $ | 175,571,730 | $ | 10 | $ | 176,280,326 | ||||||||
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| Other Financial Instruments: |
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| Forward Foreign Currency Contracts†† |
— | $ | 192,737 | — | $ | 192,737 | ||||||||||
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| Total |
$ | 708,586 | $ | 175,764,467 | $ | 10 | $ | 176,473,063 | ||||||||
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| † | See Schedule of Investments for additional detailed categorizations. |
| * | Amount represents less than $1. |
| †† | Reflects the unrealized appreciation (depreciation) of the instruments. |
2. Transactions with affiliated company
As defined by the 1940 Act, an affiliated company is one in which the Fund owns 5% or more of the outstanding voting securities, or a company which is under common ownership or control with the Fund. The following company was considered an affiliated company for
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Notes to Schedule of Investments (unaudited) (continued)
all or some portion of the period ended September 30, 2023. The following transactions were effected in such company for the period ended September 30, 2023.
| Affiliate Value at December 31, 2022 |
Purchased | Sold | ||||||||||||||||||
| Cost | Shares | Proceeds | Shares | |||||||||||||||||
| Western Asset Premier Institutional Government Reserves, Premium Shares | $ | 2,364,791 | $ | 23,980,826 | 23,980,826 | $ | 25,638,746 | 25,638,746 | ||||||||||||
| (cont’d) |
Realized Gain (Loss) |
Dividend Income |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) |
Affiliate Value at September 30, 2023 |
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| Western Asset Premier Institutional Government Reserves, Premium Shares | — | $ | 53,109 | — | $ | 706,871 | ||||||||||
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