N-Q 1 d29174dnq.htm WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC. WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-22334

Western Asset Global Corporate Defined Opportunity Fund Inc.

(Exact name of registrant as specified in charter)

620 Eighth Avenue, 49th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

Robert I. Frenkel, Esq.

Legg Mason & Co., LLC

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

Registrant’s telephone number, including area code: 1-888-777-0102

Date of fiscal year end: October 31

Date of reporting period: January 31, 2016

 

 

 


 

ITEM 1. SCHEDULE OF INVESTMENTS.

 


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

FORM N-Q

JANUARY 31, 2016


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  
CORPORATE BONDS & NOTES - 120.9%          
CONSUMER DISCRETIONARY - 12.5%          

Automobiles - 0.5%

         

Ford Motor Credit Co., LLC, Senior Notes

     2.375     1/16/18         1,300,000      $ 1,298,817   
         

 

 

 

Diversified Consumer Services - 0.1%

         

Co-operative Group Holdings 2011 Ltd., Senior Notes

     6.875     7/8/20         100,000 GBP      153,051 (a) 

Co-operative Group Holdings 2011 Ltd., Senior Notes

     7.500     7/8/26         190,000 GBP      295,030   
         

 

 

 

Total Diversified Consumer Services

            448,081   
         

 

 

 

Hotels, Restaurants & Leisure - 1.6%

         

Arcos Dorados Holdings Inc., Senior Notes

     6.625     9/27/23         650,000        602,875 (b) 

CEC Entertainment Inc., Senior Notes

     8.000     2/15/22         1,440,000        1,252,800   

MGM Resorts International, Senior Notes

     11.375     3/1/18         1,000,000        1,147,500   

Mitchells & Butlers Finance PLC, Secured Notes

     5.965     12/15/23         356,567 GBP      565,885 (a) 

Viking Cruises Ltd., Senior Notes

     8.500     10/15/22         620,000        578,150 (b) 
         

 

 

 

Total Hotels, Restaurants & Leisure

            4,147,210   
         

 

 

 

Household Durables - 0.1%

         

William Lyon Homes Inc., Senior Notes

     7.000     8/15/22         180,000        173,700   
         

 

 

 

Media - 8.3%

         

AMC Entertainment Inc., Senior Subordinated Notes

     5.750     6/15/25         610,000        622,963   

CCO Safari II LLC, Senior Secured Notes

     6.384     10/23/35         720,000        725,012 (b) 

CCO Safari II LLC, Senior Secured Notes

     6.484     10/23/45         3,660,000        3,694,327 (b) 

Comcast Corp., Senior Notes

     5.700     7/1/19         1,800,000        2,032,533   

DISH DBS Corp., Senior Notes

     5.875     7/15/22         1,720,000        1,623,250   

DISH DBS Corp., Senior Notes

     5.875     11/15/24         320,000        286,000   

Grupo Televisa SAB, Senior Bonds

     6.625     1/15/40         1,730,000        1,791,261   

iHeartCommunications Inc., Senior Notes

     14.000     2/1/21         1,090,000        279,040 (c) 

Lamar Media Corp., Senior Notes

     5.750     2/1/26         160,000        165,200 (b) 

Numericable-SFR SAS, Senior Secured Bonds

     6.250     5/15/24         2,260,000        2,214,800 (b) 

Time Warner Cable Inc., Senior Notes

     8.750     2/14/19         1,500,000        1,733,638   

Tribune Media Co., Senior Notes

     5.875     7/15/22         450,000        450,000 (b) 

UBM PLC, Notes

     5.750     11/3/20         1,500,000        1,621,161 (b) 

UPC Holding BV, Junior Secured Subordinated Notes

     6.375     9/15/22         910,000 EUR      1,045,346 (b) 

Viacom Inc., Senior Notes

     4.375     3/15/43         1,500,000        1,039,922   

Virgin Media Finance PLC, Senior Notes

     6.000     10/15/24         1,000,000        1,011,250 (b) 

Virgin Media Finance PLC, Senior Notes

     5.750     1/15/25         1,500,000        1,488,750 (b) 
         

 

 

 

Total Media

            21,824,453   
         

 

 

 

Multiline Retail - 0.3%

         

Neiman Marcus Group LLC, Senior Secured Notes

     7.125     6/1/28         180,000        157,500   

Neiman Marcus Group Ltd. LLC, Senior Notes

     8.750     10/15/21         1,000,000        640,000 (b)(c) 
         

 

 

 

Total Multiline Retail

            797,500   
         

 

 

 

Specialty Retail - 1.6%

         

Gap Inc., Senior Notes

     5.950     4/12/21         2,250,000        2,342,122   

L Brands Inc., Debentures

     6.950     3/1/33         1,082,000        1,088,086   

Sally Holdings LLC/Sally Capital Inc., Senior Notes

     5.625     12/1/25         720,000        747,000   
         

 

 

 

Total Specialty Retail

            4,177,208   
         

 

 

 

TOTAL CONSUMER DISCRETIONARY

            32,866,969   
         

 

 

 
CONSUMER STAPLES - 7.6%          

Beverages - 1.4%

         

Anheuser-Busch InBev Finance Inc., Senior Notes

     4.700     2/1/36         940,000        954,150   

Anheuser-Busch InBev Finance Inc., Senior Notes

     4.900     2/1/46         1,740,000        1,806,165   

 

See Notes to Schedule of Investments.

 

1


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  

Beverages - (continued)

         

Carolina Beverage Group LLC/Carolina Beverage Group Finance Inc., Secured Notes

     10.625     8/1/18         830,000      $ 817,550 (b) 
         

 

 

 

Total Beverages

            3,577,865   
         

 

 

 

Food & Staples Retailing - 1.4%

         

CVS Health Corp., Senior Notes

     6.125     9/15/39         1,000,000        1,196,344   

Dollar Tree Inc., Senior Notes

     5.750     3/1/23         710,000        751,713 (b) 

Tesco PLC, Senior Notes

     6.125     2/24/22         1,200,000 GBP      1,777,431   
         

 

 

 

Total Food & Staples Retailing

            3,725,488   
         

 

 

 

Food Products - 0.7%

         

Boparan Finance PLC, Senior Secured Notes

     5.500     7/15/21         650,000 GBP      824,304 (a) 

Kraft Heinz Foods Co., Senior Notes

     5.200     7/15/45         700,000        738,996 (b) 

TreeHouse Foods Inc., Senior Notes

     6.000     2/15/24         290,000        299,063 (b) 
         

 

 

 

Total Food Products

            1,862,363   
         

 

 

 

Household Products - 0.3%

         

Central Garden & Pet Co., Senior Notes

     6.125     11/15/23         420,000        431,550   

Kronos Acquisition Holdings Inc., Senior Notes

     9.000     8/15/23         230,000        198,950 (b) 

Sun Products Corp., Senior Notes

     7.750     3/15/21         160,000        147,200 (b) 
         

 

 

 

Total Household Products

            777,700   
         

 

 

 

Personal Products - 0.3%

         

Hypermarcas SA, Notes

     6.500     4/20/21         760,000        773,300 (b) 
         

 

 

 

Tobacco - 3.5%

         

Alliance One International Inc., Secured Notes

     9.875     7/15/21         500,000        398,125   

BAT Netherlands Finance BV, Senior Notes

     4.875     2/24/21         1,450,000 EUR      1,882,932   

Imperial Brands Finance PLC, Senior Notes

     8.375     2/17/16         1,150,000 EUR      1,249,970 (a) 

Reynolds American Inc., Senior Notes

     6.750     6/15/17         2,340,000        2,490,078   

Reynolds American Inc., Senior Notes

     8.125     6/23/19         2,305,000        2,733,954   

Reynolds American Inc., Senior Notes

     5.850     8/15/45         540,000        601,117   
         

 

 

 

Total Tobacco

            9,356,176   
         

 

 

 

TOTAL CONSUMER STAPLES

            20,072,892   
         

 

 

 
ENERGY - 12.7%          

Energy Equipment & Services - 0.3%

         

Atwood Oceanics Inc., Senior Notes

     6.500     2/1/20         610,000        219,600   

KCA Deutag UK Finance PLC, Senior Secured Notes

     7.250     5/15/21         320,000        193,600 (b) 

Parker Drilling Co., Senior Notes

     7.500     8/1/20         490,000        344,225   
         

 

 

 

Total Energy Equipment & Services

            757,425   
         

 

 

 

Oil, Gas & Consumable Fuels - 12.4%

         

Anadarko Petroleum Corp., Senior Notes

     6.450     9/15/36         1,370,000        1,098,569   

California Resources Corp., Senior Notes

     5.500     9/15/21         2,000,000        410,000   

Calumet Specialty Products Partners LP/Calumet Finance Corp.,
Senior Notes

     6.500     4/15/21         1,000,000        725,000   

Chesapeake Energy Corp., Senior Notes

     6.875     11/15/20         470,000        126,900   

Chesapeake Energy Corp., Senior Notes

     5.375     6/15/21         560,000        148,400   

Continental Resources Inc., Senior Notes

     5.000     9/15/22         1,500,000        1,055,625   

Continental Resources Inc., Senior Notes

     4.500     4/15/23         1,500,000        1,030,882   

Dolphin Energy Ltd., Senior Secured Bonds

     5.888     6/15/19         1,025,980        1,082,640 (a) 

Ecopetrol SA, Senior Notes

     7.625     7/23/19         1,650,000        1,713,937   

Ecopetrol SA, Senior Notes

     5.875     5/28/45         3,000,000        2,091,600   

Enterprise Products Operating LLC, Senior Notes

     6.500     1/31/19         1,290,000        1,392,400   

Enterprise Products Operating LLC, Senior Notes

     4.050     2/15/22         1,520,000        1,499,530   

Globe Luxembourg SCA, Senior Secured Notes

     9.625     5/1/18         730,000        507,350 (b) 

LUKOIL International Finance BV, Bonds

     6.356     6/7/17         310,000        322,865 (a) 

LUKOIL International Finance BV, Bonds

     6.656     6/7/22         1,860,000        1,920,459 (a) 

Murray Energy Corp., Senior Secured Notes

     11.250     4/15/21         1,930,000        275,025 (b) 

Oasis Petroleum Inc., Senior Notes

     7.250     2/1/19         640,000        401,600   

Oasis Petroleum Inc., Senior Notes

     6.500     11/1/21         910,000        550,550   

Oasis Petroleum Inc., Senior Notes

     6.875     1/15/23         150,000        86,250   

 

See Notes to Schedule of Investments.

 

2


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  

Oil, Gas & Consumable Fuels - (continued)

         

Occidental Petroleum Corp., Senior Notes

     4.625     6/15/45         700,000      $ 646,727   

Petrobras Global Finance BV, Senior Notes

     6.250     3/17/24         380,000        275,880   

Petrobras Global Finance BV, Senior Notes

     6.750     1/27/41         920,000        582,774   

Petroleos Mexicanos, Senior Bonds

     6.625     6/15/35         910,000        810,091   

Petroleos Mexicanos, Senior Notes

     4.250     1/15/25         1,000,000        861,500 (b) 

Petroleum Co. of Trinidad & Tobago Ltd., Senior Notes

     9.750     8/14/19         2,590,000        2,628,850 (b) 

Petronas Capital Ltd., Senior Notes

     5.250     8/12/19         930,000        1,013,451 (a) 

Petronas Capital Ltd., Senior Notes

     5.250     8/12/19         410,000        446,790 (b) 

Quicksilver Resources Inc., Senior Notes

     11.000     7/1/21         500,000        11,250 *(d) 

Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Bonds

     6.750     9/30/19         2,280,000        2,587,773 (a) 

Reliance Holdings USA Inc., Senior Notes

     5.400     2/14/22         1,000,000        1,100,672 (b) 

Rosneft Finance SA, Senior Notes

     7.875     3/13/18         2,830,000        3,006,040 (b) 

RSP Permian Inc., Senior Notes

     6.625     10/1/22         700,000        626,500 (b) 

Whiting Petroleum Corp., Senior Notes

     6.250     4/1/23         1,180,000        743,400   

Williams Partners LP, Senior Notes

     5.250     3/15/20         610,000        508,567   

WPX Energy Inc., Senior Notes

     7.500     8/1/20         60,000        37,986   

WPX Energy Inc., Senior Notes

     8.250     8/1/23         590,000        379,075   
         

 

 

 

Total Oil, Gas & Consumable Fuels

            32,706,908   
         

 

 

 

TOTAL ENERGY

            33,464,333   
         

 

 

 
FINANCIALS - 39.0%          

Banks - 25.4%

         

Australia & New Zealand Banking Group Ltd., Subordinated Notes

     5.125     9/10/19         1,250,000 EUR      1,542,643 (a) 

Bank of America Corp., Senior Notes

     7.750     4/30/18         800,000 GBP      1,287,125   

Barclays Bank PLC, Subordinated Notes

     7.625     11/21/22         5,750,000        6,436,711   

Barclays PLC, Junior Subordinated Bonds

     8.250     12/15/18         240,000        251,992 (e)(f) 

BNP Paribas Fortis SA, Senior Subordinated Notes

     5.757     10/4/17         1,200,000 EUR      1,411,359   

BNP Paribas SA, Junior Subordinated Notes

     7.375     8/19/25         1,860,000        1,827,450 (b)(e)(f) 

Citigroup Inc., Senior Notes

     7.375     9/4/19         1,300,000 EUR      1,747,089   

Commonwealth Bank of Australia, Subordinated Notes

     5.500     8/6/19         1,200,000 EUR      1,491,675   

Cooperatieve Rabobank U.A., Junior Subordinated Notes

     11.000     6/30/19         1,997,000        2,439,236 (b)(e)(f) 

Credit Agricole SA, Junior Subordinated Notes

     8.375     10/13/19         2,530,000        2,826,149 (b)(e)(f) 

Credit Agricole SA, Junior Subordinated Notes

     7.875     10/26/19         400,000 EUR      505,360 (a)(e)(f) 

Credit Agricole SA, Junior Subordinated Notes

     8.125     12/23/25         360,000        360,559 (b)(e)(f) 

Credit Agricole SA, Subordinated Bonds

     8.125     9/19/33         900,000        982,916 (b)(e) 

Credit Agricole SA, Subordinated Notes

     4.375     3/17/25         760,000        736,866 (b) 

HSBC Holdings PLC, Junior Subordinated Bonds

     6.375     9/17/24         2,670,000        2,566,537 (e)(f) 

HSBC Holdings PLC, Junior Subordinated Bonds

     6.375     3/30/25         1,400,000        1,352,554 (e)(f) 

ING Bank NV, Subordinated Notes

     6.875     5/29/23         2,850,000 GBP      4,440,963 (e) 

Intesa Sanpaolo SpA, Subordinated Bonds

     5.017     6/26/24         1,940,000        1,863,797 (b) 

Intesa Sanpaolo SpA, Subordinated Notes

     8.375     10/14/19         450,000 EUR      542,429 (a)(e)(f) 

JPMorgan Chase & Co., Junior Subordinated Bonds

     6.000     8/1/23         5,870,000        5,873,669 (e)(f) 

JPMorgan Chase & Co., Junior Subordinated Notes

     6.100     10/1/24         250,000        251,562 (e)(f) 

JPMorgan Chase & Co., Subordinated Notes

     4.950     6/1/45         1,000,000        1,004,156   

M&T Bank Corp., Junior Subordinated Bonds

     6.875     6/15/16         1,570,000        1,587,662 (f) 

National Australia Bank Ltd., Subordinated Notes

     6.750     6/26/23         2,750,000 EUR      3,346,980 (e) 

National Capital Trust I, Junior Subordinated Bond

     5.620     12/17/18         266,000 GBP      390,394 (a)(e)(f) 

Royal Bank of Scotland Group PLC, Subordinated Notes

     6.100     6/10/23         2,570,000        2,741,393   

Royal Bank of Scotland PLC, Subordinated Notes

     13.125     3/19/22         1,420,000 AUD      1,101,421 (a)(e) 

Santander Issuances SAU, Notes

     5.911     6/20/16         2,000,000        2,023,778 (b) 

 

See Notes to Schedule of Investments.

 

3


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  

Banks - (continued)

         

Santander UK PLC, Subordinated Notes

     5.000     11/7/23         1,120,000      $ 1,169,852 (b) 

Societe Generale SA, Subordinated Notes

     9.375     9/4/19         1,550,000 EUR      2,031,520 (a)(e)(f) 

Standard Chartered Bank, Subordinated Notes

     5.875     9/26/17         1,250,000 EUR      1,450,148 (a) 

Standard Chartered Bank, Subordinated Notes

     7.750     4/3/18         1,000,000 GBP      1,576,905 (a) 

Wachovia Capital Trust III, Junior Subordinated Bonds

     5.570     2/29/16         3,660,000        3,499,875 (e)(f) 

Wells Fargo & Co., Junior Subordinated Bonds

     5.900     6/15/24         2,910,000        2,942,737 (e)(f) 

Wells Fargo & Co., Junior Subordinated Bonds

     5.875     6/15/25         440,000        464,354 (e)(f) 

Wells Fargo & Co., Subordinated Notes

     4.650     11/4/44         700,000        680,910   
         

 

 

 

Total Banks

            66,750,726   
         

 

 

 

Capital Markets - 2.9%

         

Goldman Sachs Capital II, Junior Subordinated Bonds

     4.000     2/29/16         1,300,000        861,250 (e)(f) 

Goldman Sachs Group Inc., Subordinated Notes

     4.750     10/12/21         2,700,000 EUR      3,403,891   

Goldman Sachs Group Inc., Subordinated Notes

     5.500     10/12/21         600,000 GBP      949,476   

Goldman Sachs Group Inc., Subordinated Notes

     5.150     5/22/45         1,480,000        1,447,933   

Pershing Square Holdings Ltd., Senior Notes

     5.500     7/15/22         1,000,000        891,300 (b) 
         

 

 

 

Total Capital Markets

            7,553,850   
         

 

 

 

Consumer Finance - 1.4%

         

American Express Co., Subordinated Debentures

     6.800     9/1/66         1,820,000        1,799,525 (e) 

Navient Corp., Medium-Term Notes, Senior Notes

     8.000     3/25/20         1,880,000        1,856,500   
         

 

 

 

Total Consumer Finance

            3,656,025   
         

 

 

 

Diversified Financial Services - 3.4%

         

Argos Merger Sub Inc., Senior Notes

     7.125     3/15/23         1,500,000        1,515,000 (b) 

General Electric Capital Corp., Subordinated Bonds

     5.500     9/15/67         940,000 EUR      1,088,682 (a)(e) 

General Electric Capital Corp., Subordinated Debentures

     6.375     11/15/67         1,200,000        1,275,000 (e) 

International Lease Finance Corp., Senior Notes

     8.750     3/15/17         3,000,000        3,160,800   

International Lease Finance Corp., Senior Notes

     6.250     5/15/19         1,130,000        1,186,500   

MUFG Capital Finance 4 Ltd., Junior Subordinated Bonds

     5.271     1/25/17         550,000 EUR      617,718 (e)(f) 
         

 

 

 

Total Diversified Financial Services

            8,843,700   
         

 

 

 

Insurance - 4.1%

         

AXA SA, Junior Subordinated Notes

     5.777     7/6/16         500,000 EUR      551,702 (e)(f) 

AXA SA, Junior Subordinated Notes

     6.463     12/14/18         2,000,000        2,052,500 (b)(e)(f) 

BUPA Finance PLC, Subordinated Bonds

     5.000     4/25/23         910,000 GBP      1,333,745 (a) 

ELM BV (Swiss Reinsurance Co.), Subordinated Notes

     5.252     5/25/16         550,000 EUR      603,201 (a)(e)(f) 

Farmers Insurance Exchange, Subordinated Notes

     8.625     5/1/24         1,295,000        1,680,440 (b) 

Galaxy Bidco Ltd., Senior Secured Notes

     6.375     11/15/20         370,000 GBP      529,849 (a) 

Generali Finance BV, Junior Subordinated Bonds

     5.317     6/16/16         500,000 EUR      545,387 (e)(f) 

MetLife Capital Trust IV, Junior Subordinated Notes

     7.875     12/15/37         300,000        361,500 (b) 

Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe), Subordinated Bonds

     5.767     6/12/17         500,000 EUR      570,650 (a)(e)(f) 

Scottish Widows PLC, Subordinated Notes

     5.500     6/16/23         910,000 GBP      1,334,106 (a) 

Travelers Cos. Inc., Senior Notes

     5.350     11/1/40         1,150,000        1,366,645   
         

 

 

 

Total Insurance

            10,929,725   
         

 

 

 

Real Estate Management & Development - 1.0%

         

Caesars Entertainment Resort Properties LLC, Secured Notes

     11.000     10/1/21         170,000        148,750   

Caesars Entertainment Resort Properties LLC, Senior Secured Notes

     8.000     10/1/20         1,510,000        1,411,850   

Howard Hughes Corp., Senior Notes

     6.875     10/1/21         1,230,000        1,236,150 (b) 
         

 

 

 

Total Real Estate Management & Development

            2,796,750   
         

 

 

 

Thrifts & Mortgage Finance - 0.8%

         

Quicken Loans Inc., Senior Notes

     5.750     5/1/25         2,140,000        2,016,950 (b) 
         

 

 

 

TOTAL FINANCIALS

            102,547,726   
         

 

 

 

 

See Notes to Schedule of Investments.

 

4


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  
HEALTH CARE - 7.7%          

Biotechnology - 1.1%

         

AbbVie Inc., Senior Subordinated Notes

     3.600     5/14/25         960,000      $ 962,470   

AMAG Pharmaceuticals Inc., Senior Notes

     7.875     9/1/23         490,000        447,125 (b) 

Baxalta Inc., Senior Notes

     5.250     6/23/45         700,000        694,961 (b) 

Celgene Corp., Senior Notes

     5.000     8/15/45         780,000        780,967   
         

 

 

 

Total Biotechnology

            2,885,523   
         

 

 

 

Health Care Equipment & Supplies - 1.2%

         

ConvaTec Healthcare E SA, Senior Notes

     10.875     12/15/18         1,070,000 EUR      1,193,789 (b) 

DJO Finance LLC/DJO Finance Corp., Secured Notes

     10.750     4/15/20         570,000        473,100 (b) 

DJO Finco Inc./DJO Finance LLC/DJO Finance Corp.,
Secured Notes

     8.125     6/15/21         1,200,000        1,014,000 (b) 

Greatbatch Ltd., Senior Notes

     9.125     11/1/23         580,000        571,300 (b) 
         

 

 

 

Total Health Care Equipment & Supplies

            3,252,189   
         

 

 

 

Health Care Providers & Services - 3.6%

         

Centene Escrow Corp., Senior Notes

     5.625     2/15/21         550,000        561,000 (b) 

Centene Escrow Corp., Senior Notes

     6.125     2/15/24         370,000        381,100 (b) 

Humana Inc., Senior Notes

     7.200     6/15/18         2,700,000        3,011,556   

Priory Group No. 3 PLC, Senior Subordinated Notes

     8.875     2/15/19         450,000 GBP      657,074 (a) 

Select Medical Corp., Senior Notes

     6.375     6/1/21         500,000        431,875   

Unilabs Subholding AB, Senior Secured Notes

     8.500     7/15/18         1,200,000 EUR      1,350,496 (a) 

UnitedHealth Group Inc., Senior Notes

     6.000     2/15/18         1,350,000        1,466,003   

UnitedHealth Group Inc., Senior Notes

     4.750     7/15/45         440,000        472,465   

Universal Hospital Services Inc., Secured Notes

     7.625     8/15/20         1,320,000        1,168,200   
         

 

 

 

Total Health Care Providers & Services

            9,499,769   
         

 

 

 

Pharmaceuticals - 1.8%

         

Actavis Funding SCS, Senior Notes

     4.550     3/15/35         580,000        573,211   

Actavis Funding SCS, Senior Notes

     4.750     3/15/45         780,000        783,022   

Mallinckrodt International Finance SA, Senior Notes

     5.750     8/1/22         970,000        931,200 (b) 

Valeant Pharmaceuticals International Inc., Senior Notes

     5.375     3/15/20         260,000        246,513 (b) 

Valeant Pharmaceuticals International Inc., Senior Notes

     6.375     10/15/20         370,000        357,050 (b) 

Valeant Pharmaceuticals International Inc., Senior Notes

     7.500     7/15/21         940,000        937,062 (b) 

Valeant Pharmaceuticals International Inc., Senior Notes

     7.250     7/15/22         820,000        803,600 (b) 
         

 

 

 

Total Pharmaceuticals

            4,631,658   
         

 

 

 

TOTAL HEALTH CARE

            20,269,139   
         

 

 

 
INDUSTRIALS - 6.1%          

Air Freight & Logistics - 0.6%

         

XPO Logistics Inc., Senior Notes

     7.875     9/1/19         1,010,000        1,011,262 (b) 

XPO Logistics Inc., Senior Notes

     6.500     6/15/22         730,000        656,088 (b) 
         

 

 

 

Total Air Freight & Logistics

            1,667,350   
         

 

 

 

Airlines - 1.3%

         

Air Canada, Pass-Through Trust, Secured Notes

     6.625     5/15/18         330,000        328,350 (b) 

Continental Airlines Inc., Pass-Through Certificates,
Secured Notes

     9.250     5/10/17         1,496,358        1,588,010   

Heathrow Finance PLC, Senior Secured Notes

     7.125     3/1/17         950,000 GBP      1,407,308 (a) 

United Airlines Inc., Pass-Through Certificates,
Senior Secured Notes

     10.400     11/1/16         23,101        24,313   
         

 

 

 

Total Airlines

            3,347,981   
         

 

 

 

 

See Notes to Schedule of Investments.

 

5


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  

Commercial Services & Supplies - 1.7%

         

Garda World Security Corp., Senior Notes

     7.250     11/15/21         470,000      $ 368,950 (b) 

GFL Escrow Corp., Senior Notes

     9.875     2/1/21         880,000        889,900 (b) 

Monitronics International Inc., Senior Notes

     9.125     4/1/20         1,570,000        1,267,775   

Republic Services Inc., Senior Notes

     5.250     11/15/21         1,450,000        1,627,363   

Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes

     5.250     4/15/21         420,000        396,900 (b) 
         

 

 

 

Total Commercial Services & Supplies

            4,550,888   
         

 

 

 

Construction & Engineering - 0.9%

         

Astaldi SpA, Senior Notes

     7.125     12/1/20         410,000 EUR      429,407 (b) 

Astaldi SpA, Senior Notes

     7.125     12/1/20         100,000 EUR      104,734 (a) 

Brundage-Bone Concrete Pumping Inc., Senior Secured Notes

     10.375     9/1/21         720,000        700,200 (b) 

Michael Baker International LLC/CDL Acquisition Co. Inc., Senior Secured Notes

     8.250     10/15/18         920,000        793,500 (b) 

Modular Space Corp., Secured Notes

     10.250     1/31/19         740,000        242,266 (b) 
         

 

 

 

Total Construction & Engineering

            2,270,107   
         

 

 

 

Electrical Equipment - 0.0%

         

Trionista TopCo GmbH, Senior Subordinated Notes

     6.875     4/30/21         100,000 EUR      113,770 (b) 
         

 

 

 

Machinery - 0.8%

         

KION Finance SA, Senior Secured Notes

     6.750     2/15/20         1,195,000 EUR      1,346,814 (b) 

KraussMaffei Group GmbH, Senior Secured Notes

     8.750     12/15/20         224,000 EUR      259,927 (b) 

SIG Combibloc Holdings SCA, Senior Bonds

     7.750     2/15/23         350,000 EUR      391,951 (b) 
         

 

 

 

Total Machinery

            1,998,692   
         

 

 

 

Marine - 0.0%

         

Ultrapetrol Bahamas Ltd., Senior Secured Notes

     8.875     6/15/21         630,000        110,250 *(d) 
         

 

 

 

Road & Rail - 0.4%

         

Jack Cooper Holdings Corp., Senior Secured Notes

     10.250     6/1/20         1,350,000        1,073,250 (b) 
         

 

 

 

Trading Companies & Distributors - 0.4%

         

H&E Equipment Services Inc., Senior Notes

     7.000     9/1/22         1,050,000        966,000   
         

 

 

 

TOTAL INDUSTRIALS

            16,098,288   
         

 

 

 
INFORMATION TECHNOLOGY - 3.7%          

Electronic Equipment, Instruments & Components - 0.3%

         

Interface Security Systems Holdings Inc./Interface Security Systems LLC, Senior Secured Notes

     9.250     1/15/18         770,000        724,763   
         

 

 

 

Internet Software & Services - 0.8%

         

Ancestry.com Holdings LLC, Senior Notes

     9.625     10/15/18         2,110,000        1,978,125 (b)(c) 
         

 

 

 

IT Services - 0.4%

         

First Data Corp., Secured Notes

     5.750     1/15/24         230,000        228,850 (b) 

First Data Corp., Senior Notes

     7.000     12/1/23         370,000        373,700 (b) 

First Data Corp., Senior Secured Notes

     5.000     1/15/24         500,000        501,250 (b) 
         

 

 

 

Total IT Services

            1,103,800   
         

 

 

 

Semiconductors & Semiconductor Equipment - 0.7%

         

QUALCOMM Inc., Senior Subordinated Notes

     4.800     5/20/45         2,000,000        1,784,362   
         

 

 

 

Software - 0.3%

         

Oberthur Technologies Holding SAS, Senior Secured Notes

     9.250     4/30/20         670,000 EUR      776,291 (b) 
         

 

 

 

Technology Hardware, Storage & Peripherals - 1.2%

         

HP Inc., Senior Notes

     4.650     12/9/21         2,000,000        2,033,082   

Seagate HDD Cayman, Senior Bonds

     4.750     1/1/25         1,500,000        1,204,410   
         

 

 

 

Total Technology Hardware, Storage & Peripherals

            3,237,492   
         

 

 

 

TOTAL INFORMATION TECHNOLOGY

            9,604,833   
         

 

 

 
MATERIALS - 10.3%          

Chemicals - 0.8%

         

Eco Services Operations LLC/Eco Finance Corp., Senior Notes

     8.500     11/1/22         280,000        245,000 (b) 

 

See Notes to Schedule of Investments.

 

6


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  

Chemicals - (continued)

         

Hexion Inc., Senior Secured Notes

     6.625     4/15/20         590,000      $ 460,200   

Kerling PLC, Senior Secured Notes

     10.625     2/1/17         606,000 EUR      658,532 (b) 

OCP SA, Senior Notes

     5.625     4/25/24         800,000        798,680 (b) 
         

 

 

 

Total Chemicals

            2,162,412   
         

 

 

 

Construction Materials - 0.8%

         

Cemex SAB de CV, Senior Secured Notes

     6.125     5/5/25         640,000        549,408 (b) 

Hardwoods Acquisition Inc., Senior Secured Notes

     7.500     8/1/21         750,000        566,250 (b) 

HeidelbergCement Finance Luxembourg SA, Senior Notes

     8.500     10/31/19         610,000 EUR      803,000 (a) 

NWH Escrow Corp., Senior Secured Notes

     7.500     8/1/21         300,000        219,000 (b) 
         

 

 

 

Total Construction Materials

            2,137,658   
         

 

 

 

Containers & Packaging - 1.9%

         

Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes

     9.125     10/15/20         1,200,000        1,210,500 (b) 

BWAY Holding Co., Senior Notes

     9.125     8/15/21         1,290,000        1,070,700 (b) 

Coveris Holdings SA, Senior Notes

     7.875     11/1/19         450,000        357,750 (b) 

SGD Group SAS, Senior Secured Bonds

     5.625     5/15/19         1,230,000 EUR      1,314,471 (a) 

Suzano Trading Ltd., Senior Notes

     5.875     1/23/21         970,000        953,025 (b) 
         

 

 

 

Total Containers & Packaging

            4,906,446   
         

 

 

 

Metals & Mining - 5.4%

         

ArcelorMittal, Senior Notes

     8.000     10/15/39         750,000        532,500   

Barrick Gold Corp., Senior Notes

     6.950     4/1/19         217,000        226,240   

BHP Billiton Finance USA Ltd., Subordinated Notes

     6.750     10/19/75         1,500,000        1,413,750 (b)(e) 

Evraz Group SA, Notes

     9.500     4/24/18         450,000        466,416 (b) 

Evraz Group SA, Senior Notes

     6.500     4/22/20         984,000        907,578 (a) 

Evraz Group SA, Senior Notes

     6.500     4/22/20         340,000        313,594 (b) 

FMG Resources (August 2006) Pty Ltd., Senior Secured Notes

     9.750     3/1/22         2,100,000        1,832,250 (b) 

Freeport-McMoRan Inc., Senior Notes

     2.375     3/15/18         2,050,000        1,317,125   

Glencore Finance Canada Ltd., Senior Notes

     5.250     6/13/17         950,000 EUR      1,023,065   

GTL Trade Finance Inc., Senior Bonds

     5.893     4/29/24         1,562,000        1,067,627 (b) 

Rio Tinto Finance USA PLC, Senior Notes

     2.250     12/14/18         800,000        776,370   

Southern Copper Corp., Senior Notes

     5.250     11/8/42         1,850,000        1,358,011   

St. Barbara Ltd., Senior Secured Notes

     8.875     4/15/18         210,000        204,750 (b) 

Vale Overseas Ltd., Senior Notes

     4.375     1/11/22         2,816,000        1,971,200   

Vale Overseas Ltd., Senior Notes

     6.875     11/21/36         340,000        216,233   

Vedanta Resources PLC, Senior Notes

     6.000     1/31/19         990,000        620,037 (b) 
         

 

 

 

Total Metals & Mining

            14,246,746   
         

 

 

 

Paper & Forest Products - 1.4%

         

Celulosa Arauco y Constitucion SA, Senior Notes

     7.250     7/29/19         1,220,000        1,371,562   

Fibria Overseas Finance Ltd., Senior Notes

     5.250     5/12/24         260,000        244,400   

Resolute Forest Products Inc., Senior Notes

     5.875     5/15/23         620,000        399,900   

UPM-Kymmene OYJ, Senior Notes

     6.625     1/23/17         1,000,000 GBP      1,494,691   
         

 

 

 

Total Paper & Forest Products

            3,510,553   
         

 

 

 

TOTAL MATERIALS

            26,963,815   
         

 

 

 
TELECOMMUNICATION SERVICES - 14.6%          

Diversified Telecommunication Services - 10.5%

         

Axtel SAB de CV, Senior Secured Notes

     9.000     1/31/20         266,000        284,726 (b) 

British Telecommunications PLC, Senior Bonds

     8.500     12/7/16         1,200,000 GBP      1,811,314 (a) 

Frontier Communications Corp., Senior Notes

     10.500     9/15/22         660,000        644,325 (b) 

Frontier Communications Corp., Senior Notes

     11.000     9/15/25         1,000,000        967,500 (b) 

Level 3 Financing Inc., Senior Notes

     7.000     6/1/20         375,000        394,688   

Level 3 Financing Inc., Senior Notes

     5.625     2/1/23         1,770,000        1,816,463   

Oi Brasil Holdings Cooperatief U.A., Senior Notes

     5.750     2/10/22         2,510,000        1,116,950 (b) 

Ooredoo International Finance Ltd., Senior Notes

     4.750     2/16/21         650,000        698,313 (b) 

Qwest Corp., Senior Notes

     6.750     12/1/21         2,500,000        2,612,500   

Telecom Italia SpA, Senior Notes

     5.303     5/30/24         5,570,000        5,451,637 (b) 

Telefonica Emisiones SAU, Senior Notes

     5.134     4/27/20         2,000,000        2,169,904   

 

See Notes to Schedule of Investments.

 

7


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  

Diversified Telecommunication Services - (continued)

         

Telefonica Emisiones SAU, Senior Notes

     7.045     6/20/36         2,000,000      $ 2,365,634   

Verizon Communications Inc., Senior Notes

     5.150     9/15/23         5,280,000        5,850,557   

Windstream Services LLC, Senior Notes

     7.750     10/15/20         1,130,000        940,725   

Windstream Services LLC, Senior Notes

     7.750     10/1/21         470,000        368,950   

Windstream Services LLC, Senior Notes

     6.375     8/1/23         200,000        145,500   
         

 

 

 

Total Diversified Telecommunication Services

            27,639,686   
         

 

 

 

Wireless Telecommunication Services - 4.1%

         

Altice Financing SA, Senior Secured Notes

     5.250     2/15/23         110,000 EUR      116,333 (b) 

Altice Financing SA, Senior Secured Notes

     6.625     2/15/23         610,000        602,375 (b) 

America Movil SAB de CV, Senior Notes

     5.625     11/15/17         2,050,000        2,183,842   

America Movil SAB de CV, Senior Notes

     6.125     3/30/40         650,000        711,731   

Neptune Finco Corp., Senior Notes

     10.125     1/15/23         270,000        286,200 (b) 

Neptune Finco Corp., Senior Notes

     6.625     10/15/25         760,000        790,400 (b) 

Neptune Finco Corp., Senior Notes

     10.875     10/15/25         1,360,000        1,441,600 (b) 

Sprint Communications Inc., Senior Notes

     11.500     11/15/21         1,090,000        918,325   

Sprint Corp., Senior Notes

     7.875     9/15/23         3,410,000        2,446,675   

Vimpel Communications Via VIP Finance Ireland Ltd. OJSC, Senior Notes

     9.125     4/30/18         1,150,000        1,248,009 (a) 
         

 

 

 

Total Wireless Telecommunication Services

            10,745,490   
         

 

 

 

TOTAL TELECOMMUNICATION SERVICES

            38,385,176   
         

 

 

 
UTILITIES - 6.7%          

Electric Utilities - 3.2%

         

Electricite de France SA, Junior Subordinated Notes

     5.625     1/22/24         2,500,000        2,269,375 (b)(e)(f) 

Enel SpA, Junior Subordinated Bonds

     7.750     9/10/75         1,740,000 GBP      2,596,627 (a)(e) 

FirstEnergy Corp., Notes

     7.375     11/15/31         1,930,000        2,390,255   

State Grid Overseas Investment 2014 Ltd., Senior Notes

     4.125     5/7/24         1,000,000        1,083,673 (a) 
         

 

 

 

Total Electric Utilities

            8,339,930   
         

 

 

 

Gas Utilities - 0.4%

         

Wales & West Utilities Finance PLC, Senior Secured Bonds

     5.125     12/2/16         650,000 GBP      954,832 (a) 
         

 

 

 

Independent Power and Renewable Electricity Producers - 1.2%

         

Calpine Corp., Senior Secured Notes

     7.875     1/15/23         1,280,000        1,372,800 (b) 

Mirant Mid Atlantic LLC, Pass-Through Certificates, Secured Bonds

     10.060     12/30/28         1,948,589        1,873,081   
         

 

 

 

Total Independent Power and Renewable Electricity

Producers

            3,245,881   
         

 

 

 

Multi-Utilities - 1.9%

         

Centrica PLC, Senior Notes

     6.375     3/10/22         1,200,000 GBP      2,053,385 (a) 

Empresas Publicas de Medellin ESP, Senior Notes

     7.625     7/29/19         1,210,000        1,334,025 (b) 

Veolia Environnement SA, Senior Notes

     6.750     4/24/19         1,200,000 EUR      1,566,060   
         

 

 

 

Total Multi-Utilities

            4,953,470   
         

 

 

 

TOTAL UTILITIES

            17,494,113   
         

 

 

 

TOTAL CORPORATE BONDS & NOTES

(Cost - $334,478,031)

            317,767,284   
         

 

 

 
ASSET-BACKED SECURITIES - 1.9%          

Argent Securities Inc., 2004-W10 A2

     1.202     10/25/34         759,741        739,404 (e) 

Asset Backed Funding Certificates, 2003-WMC1 M1

     1.402     6/25/33         1,261,030        1,171,687 (e) 

Countrywide Home Equity Loan Trust, 2006-HW 2A1B

     0.305     11/15/36         525,496        449,329 (e) 

Home Equity Asset Trust, 2004-8 M1

     1.297     3/25/35         641,516        620,671 (e) 

Park Place Securities Inc., 2004-WCW1 M2

     1.447     9/25/34         457,713        456,042 (e) 

Residential Asset Mortgage Products Inc., 2003-RZ5 A7

     5.470     9/25/33         304,310        314,596   

Residential Asset Mortgage Products Inc., 2003-SL1 M1

     7.352     4/25/31         1,293,080        1,109,005 (e) 

Residential Asset Securities Corp., 2003-KS10 AI6

     4.540     12/25/33         73,739        76,004 (e) 
         

 

 

 

TOTAL ASSET-BACKED SECURITIES

(Cost - $4,648,922)

            4,936,738   
         

 

 

 

 

See Notes to Schedule of Investments.

 

8


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

SECURITY‡

   RATE     MATURITY
DATE
     FACE
AMOUNT†
    VALUE  
COLLATERALIZED MORTGAGE OBLIGATIONS - 0.7%          

ARM Trust, 2004-5 4A1

     2.973     4/25/35         307,393      $ 301,098 (e) 

Bear Stearns ARM Trust, 2005-12 24A1

     4.416     2/25/36         31,948        29,335 (e) 

Credit Suisse Mortgage Capital Certificates, 2009-3R 25A1

     2.854     7/27/36         84,344        84,881 (b)(e) 

GSMPS Mortgage Loan Trust, 2006-RP1 1A2

     7.500     1/25/36         240,331        252,553 (b) 

HarborView Mortgage Loan Trust, 2004-10 4A

     2.689     1/19/35         214,835        212,955 (e) 

JPMorgan Mortgage Trust, 2005-A5 1A2

     2.830     8/25/35         964,231        958,101 (e) 

Washington Mutual Inc., Mortgage Pass-Through Certificates, 2007-HY4 4A1

     2.174     9/25/36         67,954        60,782 (e) 
         

 

 

 

TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS

(Cost - $1,730,164)

            1,899,705   
         

 

 

 
SENIOR LOANS - 0.6%          
ENERGY - 0.1%          

Oil, Gas & Consumable Fuels - 0.1%

         

Westmoreland Coal Co., Term Loan B

     7.500     12/16/20         492,682        295,609 (g)(h) 
         

 

 

 
HEALTH CARE - 0.5%          

Health Care Equipment & Supplies - 0.2%

         

Lantheus Medical Imaging Inc., Term Loan

     7.000 - 8.500     6/30/22         597,000        549,240 (g)(h) 
         

 

 

 

Health Care Providers & Services - 0.3%

         

Radnet Management Inc., Second Lien Term Loan

     8.000     3/25/21         770,000        725,725 (g)(h) 
         

 

 

 

TOTAL HEALTH CARE

            1,274,965   
         

 

 

 

TOTAL SENIOR LOANS
(Cost - $1,836,144)

            1,570,574   
         

 

 

 
SOVEREIGN BONDS - 2.7%          

Brazil - 0.2%

         

Banco Nacional de Desenvolvimento Economico e Social, Senior Notes

     3.375     9/26/16         560,000        561,120 (b) 
         

 

 

 

Chile - 0.6%

         

Banco del Estado de Chile, Senior Notes

     4.125     10/7/20         1,540,000        1,608,921 (b) 
         

 

 

 

Peru - 0.1%

         

Republic of Peru, Senior Bonds

     7.840     8/12/20         1,249,000 PEN      378,324   
         

 

 

 

Turkey - 0.6%

         

Republic of Turkey, Senior Bonds

     5.750     3/22/24         1,500,000        1,606,230   
         

 

 

 

United Arab Emirates - 0.6%

         

MDC-GMTN B.V., Senior Notes

     7.625     5/6/19         1,250,000        1,444,570 (a) 
         

 

 

 

United Kingdom - 0.6%

         

United Kingdom Treasury Gilt, Bonds

     4.500     3/7/19         1,019,000 GBP      1,629,026 (a) 
         

 

 

 

TOTAL SOVEREIGN BONDS

(Cost - $6,990,213)

            7,228,191   
         

 

 

 
                  SHARES        
COMMON STOCKS - 0.8%          
FINANCIALS - 0.8%          

Banks - 0.8%

         

Citigroup Inc.

          48,867        2,080,757   
         

 

 

 
TELECOMMUNICATION SERVICES - 0.0%          

Diversified Telecommunication Services - 0.0%

         

Axtel SAB de CV, Sponsored ADR

          21,388        66,172 *(b) 
         

 

 

 

TOTAL COMMON STOCKS

(Cost - $2,131,909)

            2,146,929   
         

 

 

 

 

 

See Notes to Schedule of Investments.

 

9


WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.

 

Schedule of investments (unaudited) (cont’d)    January 31, 2016

 

 

SECURITY‡

   RATE            SHARES      VALUE  
CONVERTIBLE PREFERRED STOCKS - 0.0%           
ENERGY - 0.0%           

Oil, Gas & Consumable Fuels - 0.0%

          

Rex Energy Corp. (Cost - $409,750)

     6.000        4,400       $ 15,224   
          

 

 

 
PREFERRED STOCKS - 0.4%           
FINANCIALS - 0.4%           

Capital Markets - 0.4%

          

State Street Corp.

     5.900        37,454         1,007,513 (e) 
          

 

 

 

Diversified Financial Services - 0.0%

          

Citigroup Capital XIII

     6.986        3,050         77,988 (e) 
          

 

 

 

TOTAL PREFERRED STOCKS

(Cost - $1,017,989)

             1,085,501   
          

 

 

 
           EXPIRATION
DATE
     CONTRACTS         
PURCHASED OPTIONS - 0.1%           

U.S. Dollar/Saudi Arabian Riyal, Call @ 3.84SAR
(Cost - $171,863)

       1/12/17         8,031,000         145,353   
          

 

 

 

TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS

(Cost - $353,414,985)

             336,795,499   
          

 

 

 
                  SHARES         
SHORT-TERM INVESTMENTS - 0.7%           

State Street Institutional U.S. Government Money Market Fund, Premier Class (Cost - $1,813,153)

     0.194        1,813,153         1,813,153   
          

 

 

 

TOTAL INVESTMENTS - 128.8%

(Cost - $355,228,138#)

             338,608,652   

Liabilities in Excess of Other Assets - (28.8)%

             (75,724,102
          

 

 

 

TOTAL NET ASSETS - 100.0%

           $ 262,884,550   
          

 

 

 

 

Securities held by the Fund are subject to a lien, granted to the lenders, to the extent of the borrowing outstanding and any additional expenses.

 

Face amount denominated in U.S. dollars, unless otherwise noted.

 

* Non-income producing security.

 

(a) 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 Directors, unless otherwise noted.

 

(b) 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 Directors, unless otherwise noted.

 

(c) Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities.

 

(d) The coupon payment on these securities is currently in default as of January 31, 2016.

 

(e) Variable rate security. Interest rate disclosed is as of the most recent information available.

 

(f) Security has no maturity date. The date shown represents the next call date.

 

(g) Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan.

 

(h) 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.

 

# Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:

ADR    — American Depositary Receipts
ARM    — Adjustable Rate Mortgage
AUD    — Australian Dollar
EUR    — Euro
GBP    — British Pound
OJSC    — Open Joint Stock Company
PEN    — Peruvian Nuevo Sol
SAR    — Saudi Arabian Riyal

This Schedule of Investments is unaudited and is intended to provide information about the Fund’s portfolio holdings 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.

 

10


Notes to Schedule of Investments (unaudited)

 

1. Organization and significant accounting policies

Western Asset Global Corporate Defined Opportunity Fund Inc. (the “Fund”) was incorporated in Maryland on September 17, 2009 and is registered as a non-diversified, limited-term, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s primary investment objective is to provide current income and then to liquidate and distribute substantially all of the Fund’s net assets to stockholders on or about December 2, 2024. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing 80% of its managed assets in a portfolio of U.S. and foreign corporate fixed-income securities of varying maturities.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(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 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. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investment’s fair value. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. 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 manager to be unreliable, the market price may be determined by the manager 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 Directors.

The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North Atlantic Fund Valuation Committee (the “Valuation Committee”). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Fund’s pricing policies, and reporting to the Board of Directors. When determining the reliability of third party 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 Directors, 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 Directors quarterly.

 

11


Notes to Schedule of Investments (unaudited) (continued)

 

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 – quoted prices in active markets for identical investments

 

   

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

 

   

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

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

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

 

ASSETS

 

DESCRIPTION

   QUOTED PRICES
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
     TOTAL  

Long-term Investments†:

           

Corporate Bonds & Notes

     —         $ 317,767,284         —         $ 317,767,284   

Asset-backed Securities

     —           4,936,738         —           4,936,738   

Collateralized Mortgage Obligations

     —           1,899,705         —           1,899,705   

Senior Loans:

     

Energy

     —           —         $ 295,609         295,609   

Health Care

     —           725,725         549,240         1,274,965   

Sovereign Bonds

     —           7,228,191         —           7,228,191   

Common Stocks

   $ 2,146,929         —           —           2,146,929   

Convertible Preferred Stocks

     15,224         —           —           15,224   

Preferred Stocks

     1,085,501         —           —           1,085,501   

Purchased Options

     —           145,353         —           145,353   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Long-term Investments

   $ 3,247,654       $ 332,702,996       $ 844,849       $ 336,795,499   
  

 

 

    

 

 

    

 

 

    

 

 

 

Short-term Investments

   $ 1,813,153         —           —         $ 1,813,153   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Investments

   $ 5,060,807       $ 332,702,996       $ 844,849       $ 338,608,652   
  

 

 

    

 

 

    

 

 

    

 

 

 

Other Financial Instruments:

           

Futures Contracts

   $ 93,909         —           —         $ 93,909   

Forward Currency Contracts

     —         $ 2,747,035         —           2,747,035   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Other Financial Instruments

   $ 93,909       $ 2,747,035         —         $ 2,840,944   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 5,154,716       $ 335,450,031       $ 844,849       $ 341,449,596   
  

 

 

    

 

 

    

 

 

    

 

 

 

LIABILITIES

 

DESCRIPTION

   QUOTED PRICES
(LEVEL 1)
     OTHER SIGNIFICANT
OBSERVABLE INPUTS
(LEVEL 2)
     SIGNIFICANT
UNOBSERVABLE
INPUTS
(LEVEL 3)
     TOTAL  

Other Financial Instruments:

           

Futures Contracts

   $ 17,558         —           —         $ 17,558   

Forward Currency Contracts

     —         $ 289,980         —           289,980   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 17,558       $ 289,980         —         $ 307,538   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

See Schedule of Investments for additional detailed categorizations.

The Fund’s policy is to recognize transfers between levels as of the end of the reporting period. At January 31, 2016, securities valued at $15,224 were transferred from Level 2 to Level 1 within the fair value hierarchy because of the availability of a quoted price in an active market for an identical investment.

 

12


Notes to Schedule of Investments (unaudited) (continued)

 

2. Investments

At January 31, 2016, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

 

Gross unrealized appreciation

   $ 13,029,832   

Gross unrealized depreciation

     (29,649,318
  

 

 

 

Net unrealized depreciation

   $ (16,619,486
  

 

 

 

At January 31, 2016, the Fund had the following open futures contracts:

 

     Number of
Contracts
     Expiration
Date
     Basis
Value
     Market
Value
     Unrealized
Appreciation
(Depreciation)
 
Contracts to Buy:               

Euro

     41         3/16       $ 5,572,289       $ 5,554,731       $ (17,558

U.S. Treasury Ultra Long-Term Bonds

     11         3/16         1,734,153         1,828,062         93,909   
              

 

 

 
Net unrealized appreciation on open futures contracts       $ 76,351   
              

 

 

 

At January 31, 2016, the Fund had the following open forward foreign currency contracts:

 

Currency
Purchased
     Currency
Sold
    

Counterparty

   Settlement
Date
     Unrealized
Appreciation
(Depreciation)
 
CAD      784,586         USD         600,048       Bank of America N.A.      2/16/16       $ (39,991
USD      35,267,914         EUR         32,233,751       Bank of America N.A.      2/16/16         337,535   
EUR      250,000         USD         274,417       Citibank N.A.      2/16/16         (3,503
GBP      1,300,000         USD         1,936,631       Citibank N.A.      2/16/16         (84,232
USD      4,962,739         EUR         4,554,559       Citibank N.A.      2/16/16         27,152   
USD      18,131,560         GBP         11,972,373       Citibank N.A.      2/16/16         1,071,863   
GBP      1,800,000         USD         2,727,113       UBS AG      2/16/16         (162,254
USD      2,314,564         EUR         2,122,143       UBS AG      2/16/16         14,886   
USD      17,269,808         GBP         11,228,802       UBS AG      2/16/16         1,269,641   
USD      6,819,766         EUR         6,259,537       Bank of America N.A.      4/12/16         25,958   
                 

 

 

 
Total                   $ 2,457,055   
                 

 

 

 

Abbreviations used in this table:

 

CAD    — Canadian Dollar
EUR    — Euro
GBP    — British Pound
USD    — United States Dollar

 

13


 

ITEM 2. CONTROLS AND PROCEDURES.

 

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

 

  (b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

 

ITEM 3. EXHIBITS.

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.


SIGNATURES

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

Western Asset Global Corporate Defined Opportunity Fund Inc.

 

By   /s/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

 

March 23, 2016

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

 

By   /s/    JANE TRUST        
  Jane Trust
  Chief Executive Officer

Date:

 

March 23, 2016

By   /s/    RICHARD F. SENNETT        
  Richard F. Sennett
  Principal Financial Officer

Date:

 

March 23, 2016