N-Q 1 d520954dnq.htm DOUBLELINE OPPORTUNISTIC CREDIT FUND Doubleline Opportunistic Credit Fund

As filed with the Securities and Exchange Commission on February 27, 2018

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 811-22592

DoubleLine Opportunistic Credit Fund

(Exact name of registrant as specified in charter)

333 South Grand Avenue, Suite 1800

Los Angeles, CA 90071

(Address of principal executive offices) (Zip code)

Ronald R. Redell

c/o DoubleLine Capital LP

333 South Grand Avenue, Suite 1800

Los Angeles, CA 90071

(Name and address of agent for service)

(213) 633-8200

Registrant’s telephone number, including area code

Date of fiscal year end: September 30, 2018

Date of reporting period: December 31, 2017

Item 1. Schedule of Investments.

 

DoubleLine Opportunistic Credit Fund

Schedule of Investments

December 31, 2017 (Unaudited)

 

 

Principal Amount

$/Shares

   

Security Description

    Rate     

Maturity

    Value $  

Asset Backed Obligations - 3.9% 

         
1,789,791    Citi Held For Asset Issuance, Series 2015-PM1-C      5.01%  ^     12/15/2021      1,811,175  
4,975,000    Coinstar Funding LLC, Series 2017-1A-A2      5.22%  ^     04/25/2047      5,172,180  
4,987,500    Jimmy Johns Funding LLC, Series 2017-1A-A2II      4.85%  ^     07/30/2047      5,004,567  
4,146,860    SoFi Professional Loan Program, Series 2013-1-R      3.61%  ^¥@Þ           12/26/2029      768,575  
           

 

 

  

Total Asset Backed Obligations (Cost $14,312,080) 

 

                 12,756,497  
           

 

 

  

Collateralized Loan Obligations - 14.5%

 

      
1,000,000    ALM Ltd., Series 2015-12A-C1R (3 Month LIBOR USD + 3.20%)      4.56%  ^     04/16/2027      1,006,798  
1,500,000    Apidos Ltd., Series 2014-18A-D (3 Month LIBOR USD + 5.20%)      6.56%  ^     07/22/2026      1,504,159  
1,000,000    ARES Ltd., Series 2014-1A-SUB      8.79%  ^@     04/17/2026      528,426  
1,000,000    Atrium Corporation, Series 2013-9A-DR (3 Month LIBOR USD + 3.60%)      5.07%  ^     05/28/2030      1,017,874  
500,000    Babson Ltd., Series 2014-3A-D2 (1 Month LIBOR USD + 4.40%)      5.76%  ^     01/15/2026      501,734  
750,000    Babson Ltd., Series 2014-3A-E2 (3 Month LIBOR USD + 6.50%)      7.86%  ^     01/15/2026      754,676  
1,000,000    Babson Ltd., Series 2015-2A-DR (3 Month LIBOR USD + 2.95%)      4.31%  ^     10/20/2030      1,017,499  
1,000,000    Babson Ltd., Series 2015-IA-E (3 Month LIBOR USD + 5.30%)      6.66%  ^     04/20/2027      1,002,264  
2,000,000    Babson Ltd., Series 2016-2A-E (3 Month LIBOR USD + 6.90%)      8.26%  ^     07/20/2028      2,052,346  
1,000,000    Babson Ltd., Series 2017-1A-D (3 Month LIBOR USD + 3.60%)      4.88%  ^     07/18/2029      1,011,978  
1,000,000    Barings Ltd., Series 2016-3A-C (3 Month LIBOR USD + 3.95%)      5.31%  ^     01/15/2028      1,011,903  
1,900,000    BlueMountain Ltd., Series 2013-1A-DR (3 Month LIBOR USD + 7.50%)      8.86%  ^     01/20/2029      1,989,755  
1,000,000    BlueMountain Ltd., Series 2013-2A-DR (3 Month LIBOR USD + 2.90%)      4.26%  ^     10/22/2030      1,020,890  
1,000,000    Brookside Mill Ltd., Series 2013-1A-D (3 Month LIBOR USD + 3.05%)      4.40%  ^     04/17/2025      984,324  
1,000,000    Canyon Capital Ltd., Series 2017-1A-D (3 Month LIBOR USD + 3.60%)      4.86%  ^     07/15/2030      1,016,978  
1,000,000    Canyon Capital Ltd., Series 2017-1A-E (3 Month LIBOR USD + 6.25%)      7.51%  ^     07/15/2030      997,252  
1,000,000    Carlyle Global Market Strategies Ltd., Series 2016-2A-D2 (3 Month LIBOR USD + 6.45%)      7.81%  ^     07/15/2027      1,022,756  
500,000    Cent Ltd., Series 2014-22A-C (3 Month LIBOR USD + 3.75%)      5.14%  ^     11/07/2026      501,772  
1,500,000    Dryden Senior Loan Fund, Series 2015-37A-ER (3 Month LIBOR USD + 5.15%)      6.51%  ^     01/15/2031      1,500,580  
500,000    Dryden Senior Loan Fund, Series 2017-50A-D (3 Month LIBOR USD + 3.25%)      4.51%  ^     07/15/2030      504,513  
1,000,000    Galaxy Ltd., Series 2015-21A-E1 (3 Month LIBOR USD + 5.60%)      6.96%  ^     01/20/2028      1,009,614  
2,000,000    Gilbert Park Ltd., Series 2017-1A-E (3 Month LIBOR USD + 6.40%)      7.76%  ^     10/15/2030      2,044,821  
500,000    Halcyon Loan Advisors Funding Ltd., Series 2014-3A-D (3 Month LIBOR USD + 3.65%)      5.01%  ^     10/22/2025      502,394  
1,000,000    Highbridge Loan Management Ltd., Series 2013-2A-CR (3 Month LIBOR USD + 2.90%)      4.26%  ^     10/20/2029      1,023,551  
2,000,000    Jay Park Ltd., Series 2016-1A-D (3 Month LIBOR USD + 7.00%)      8.36%  ^     10/20/2027      2,067,944  
2,500,000    LCM LP, Series 26A-E (3 Month LIBOR USD + 5.30%)      0.00%  ^     01/20/2031      2,500,000  
567,715    LCM LP, Series 2012-11A-INC      4.52%  ^@     04/19/2022      1,794  
2,500,000    Neuberger Berman Loan Advisers Ltd., Series 2017-16SA-E (3 Month LIBOR USD + 5.40%)      0.01%  ^     01/15/2028      2,500,000  
1,000,000    Neuberger Berman Loan Advisers Ltd., Series 2017-25A-D (3 Month LIBOR USD + 3.25%)      4.49%  ^     10/18/2029      1,012,711  
1,000,000    Octagon Investment Partners Ltd., Series 2012-1A-CR (3 Month LIBOR USD + 4.00%)      5.36%  ^     07/15/2029      1,024,738  
500,000    Octagon Investment Partners Ltd., Series 2014-1A-C (3 Month LIBOR USD + 3.65%)      5.06%  ^     11/14/2026      503,113  
1,000,000    Octagon Investment Partners Ltd., Series 2014-1A-D (3 Month LIBOR USD + 6.60%)      8.01%  ^     11/14/2026      1,013,849  
1,000,000    Octagon Investment Partners Ltd., Series 2015-1A-DU (3 Month LIBOR USD + 4.59%)      6.03%  ^     05/21/2027      953,187  
2,000,000    Octagon Investment Partners Ltd., Series 2017-1A-SUB      0.00%  #^     03/17/2030      1,869,686  
1,000,000    TCI-Cent Ltd., Series 2016-1A-D (3 Month LIBOR USD + 6.75%)      8.12%  ^     12/21/2029      1,012,824  
2,000,000    TCI-Symphony Ltd., Series 2016-1A-D (3 Month LIBOR USD + 3.80%)      5.16%  ^     10/13/2029      2,024,900  
1,000,000    Voya Ltd., Series 2017-3A-C (3 Month LIBOR USD + 3.55%)      4.87%  ^     07/20/2030      1,023,383  
2,500,000    Wind River Ltd., Series 2014-2A-ER (3 Month LIBOR USD + 5.75%)      0.01%  ^     01/15/2031      2,500,000  
1,040,000    Wind River Ltd., Series 2017-4A-D (3 Month LIBOR USD + 2.65%)      4.16%  ^     11/20/2030      1,040,008  
           

 

 

  

Total Collateralized Loan Obligations (Cost $46,248,399)

            46,576,994  
        

 

 

  

Non-Agency Commercial Mortgage Backed Obligations - 10.3% 

 

      
450,000    Bear Stearns Commercial Mortgage Securities, Inc., Series 2007-T26-AJ      5.54%  #     01/12/2045      425,377  
600,000    Citigroup Commercial Mortgage Trust, Series 2015-GC27-D      4.43%  #^     02/10/2048      512,417  
4,880,556    Citigroup Commercial Mortgage Trust, Series 2015-GC27-XA      1.41%  #I/O     02/10/2048      371,606  
528,000    Citigroup Commercial Mortgage Trust, Series 2016-GC36-D      2.85%  ^     02/10/2049      402,714  
864,000    Commercial Mortgage Pass-Through Certificates, Series 2012-CR4-E      4.57%  #^Þ     10/15/2045      623,673  
1,127,250    Commercial Mortgage Pass-Through Certificates, Series 2014-UBS4-E      3.75%  ^Þ     08/10/2047      785,913  
1,288,300    Commercial Mortgage Pass-Through Certificates, Series 2014-UBS4-F      3.75%  ^Þ     08/10/2047      806,482  
2,415,590    Commercial Mortgage Pass-Through Certificates, Series 2014-UBS4-G      3.75%  ^¥Þ     08/10/2047      763,863  
5,000    Commercial Mortgage Pass-Through Certificates, Series 2014-UBS4-V      0.00%  #^¥Þ     08/10/2047      –  
566,000    Commercial Mortgage Pass-Through Certificates, Series 2015-CR26-C      4.49%  #     10/10/2048      551,752  
5,297,000    Commercial Mortgage Pass-Through Certificates, Series 2015-CR26-XD      1.24%  #^I/O     10/10/2048      419,426  
543,000    Commercial Mortgage Pass-Through Certificates, Series 2015-DC1-D      4.35%  #^     02/10/2048      429,348  
550,000    Commercial Mortgage Pass-Through Certificates, Series 2015-LC19-D      2.87%  ^     02/10/2048      457,022  
1,500,000    Commercial Mortgage Pass-Through Certificates, Series 2015-LC23-E      3.65%  #^     10/10/2048      1,139,148  
549,000    Commercial Mortgage Pass-Through Certificates, Series 2016-CR28-E      4.15%  #^     02/10/2049      423,851  
591,000    GMAC Commercial Mortgage Securities Trust, Series 2004-C3-E      5.14%  #^     12/10/2041      583,782  
5,000,000    Great Wolf Trust, Series 2017-WFMZ-MC (1 Month LIBOR USD + 10.47%)      12.10%  ^     09/15/2019      5,112,382  
543,000    GS Mortgage Securities Corporation, Series 2015-GC28-D      4.33%  #^     02/10/2048      437,403  
500,000    GS Mortgage Securities Trust, Series 2014-GC26-C      4.51%  #     11/10/2047      503,218  
650,000    GS Mortgage Securities Trust, Series 2014-GC26-D      4.51%  #^     11/10/2047      569,864  
28,440,534    JP Morgan Chase Commercial Mortgage Securities Corporation, Series 2012-CBX-XA      1.65%  #I/O     06/15/2045      1,292,167  
441,000    JP Morgan Chase Commercial Mortgage Securities Trust, Series 2006-LDP9-AMS      5.34%      05/15/2047      441,819  
183,432    JP Morgan Chase Commercial Mortgage Securities Trust, Series 2007-LDPX-AM      5.46%  #     01/15/2049      184,159  
10,765,000    JPMBB Commercial Mortgage Securities Trust, Series 2013-C14-XC      0.97%  #^I/O     08/15/2046      509,588  
564,000    JPMBB Commercial Mortgage Securities Trust, Series 2013-C15-D      5.08%  #^     11/15/2045      554,363  
557,000    JPMBB Commercial Mortgage Securities Trust, Series 2013-C17-E      3.87%  #^Þ     01/15/2047      406,555  
3,488,650    JPMBB Commercial Mortgage Securities Trust, Series 2014-C19-E      4.00%  #^Þ     04/15/2047      2,581,887  
1,938,200    JPMBB Commercial Mortgage Securities Trust, Series 2014-C19-F      3.75%  #^Þ     04/15/2047      1,068,208  
6,202,105    JPMBB Commercial Mortgage Securities Trust, Series 2014-C19-NR      3.75%  #^¥Þ     04/15/2047      1,932,402  
5,346,431    JPMBB Commercial Mortgage Securities Trust, Series 2014-C26-XA      1.13%  #I/O     01/15/2048      257,154  
500,000    JPMBB Commercial Mortgage Securities Trust, Series 2015-C27-D      3.84%  #^     02/15/2048      404,310  
775,000    JPMBB Commercial Mortgage Securities Trust, Series 2015-C32-C      4.67%  #     11/15/2048      774,835  
            16,358,000    JPMBB Commercial Mortgage Securities Trust, Series 2015-C32-XD      0.50%  #^I/O     11/15/2048      518,827  
5,561,456    LSTAR Commercial Mortgage Trust, Series 2016-4-XA      1.95%  #^I/O     03/10/2049      415,876  
569,000    Merrill Lynch Mortgage Trust, Series 2007-C1-AM      5.81%  #     06/12/2050      571,144  
500,000    Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C15-D      4.89%  #^     04/15/2047      460,932  
500,000    Morgan Stanley Bank of America Merrill Lynch Trust, Series 2014-C19-C      4.00%       12/15/2047      476,447  
1,050,000    Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C26-D      3.06%  ^     10/15/2048      853,528  
804,000    Morgan Stanley Bank of America Merrill Lynch Trust, Series 2015-C27-D      3.24%  #^     12/15/2047      606,607  
1,191,000    Morgan Stanley Capital Trust, Series 2017-ASHF-G (1 Month LIBOR USD + 6.90%)      8.15%  ^     11/15/2034      1,199,840  
525,000    Morgan Stanley Capital, Inc., Series 2014-CPT-G      3.45%  #^     07/13/2029      513,432  
271,202    Wachovia Bank Commercial Mortgage Trust, Series 2007-C30-AJ      5.41%  #     12/15/2043      276,018  
554,000    Wachovia Bank Commercial Mortgage Trust, Series 2007-C33-AJ      6.01%  #     02/15/2051      563,944  
467,000    Wells Fargo Commercial Mortgage Trust, Series 2012-LC5-E      4.76%  #^     10/15/2045      380,880  
747,000    Wells Fargo Commercial Mortgage Trust, Series 2015-NXS4-D      3.60%  #     12/15/2048      679,899  
           

 

 

  

Total Non-Agency Commercial Mortgage Backed Obligations (Cost $34,623,213)

                    33,244,062  
        

 

 

  

Non-Agency Residential Collateralized Mortgage Obligations - 49.3% 

         
2,513,271    Adjustable Rate Mortgage Trust, Series 2006-1-2A1      4.38%  #     03/25/2036      2,113,975  
1,268,503    Banc of America Alternative Loan Trust, Series 2005-8-2CB1      6.00%       09/25/2035      1,289,083  
1,241,427    Banc of America Funding Corporation, Series 2006-A-4A1      3.60%  #     02/20/2036      1,200,551  
13,582,140    BCAP LLC Trust, Series 2007-AB1-A5      5.00%  ß     03/25/2037      9,440,323  
5,269,567    BCAP LLC Trust, Series 2010-RR6-2216      3.34%  #^Þ     06/26/2036      4,890,063  
1,238,613    BCAP LLC Trust, Series 2010-RR6-6A2      9.30%  #^     07/26/2037      1,088,054  
2,216,619    Chase Mortgage Finance Trust, Series 2007-S1-A7      6.00%       02/25/2037      1,802,805  
2,258,119    Chase Mortgage Finance Trust, Series 2007-S3-1A5      6.00%       05/25/2037      1,882,697  
2,616,285    ChaseFlex Trust, Series 2007-1-1A1      6.50%       02/25/2037      1,997,121  
2,430,814    CHL Mortgage Pass-Through Trust, Series 2007-4-1A35 (1 Month LIBOR USD + 6.70%)      5.15%  I/FI/O     05/25/2037      553,590  
2,430,814    CHL Mortgage Pass-Through Trust, Series 2007-4-1A36 (1 Month LIBOR USD + 0.30%)      1.85%       05/25/2037      1,412,443  
7,000,000    CIM Trust, Series 2016-1RR-B2      12.32%  #^     07/26/2055      6,384,315  
7,000,000    CIM Trust, Series 2016-2RR-B2      9.40%  #^     02/27/2056      6,545,814  
7,000,000    CIM Trust, Series 2016-3RR-B2      11.02%  #^     02/27/2056      6,484,600  
6,010,000    CIM Trust, Series 2017-3RR-B2      16.78%  #^     01/27/2057      6,700,838  
1,875,000    Citicorp Mortgage Securities, Inc., Series 2006-2-1A14      5.50%       04/25/2036      1,849,480  
637,397    Citigroup Mortgage Loan Trust, Inc., Series 2006-8-A4 (1 Month LIBOR USD + 19.66%)      15.39%  ^I/F     10/25/2035      763,873  
3,763,844    Citigroup Mortgage Loan Trust, Inc., Series 2010-9-3A7      9.83%  ^Þ     01/25/2036      3,702,564  
5,348,029    Citigroup Mortgage Loan Trust, Inc., Series 2010-9-4A3      6.99%  #^     09/25/2035      5,496,026  
2,996,890    CitiMortgage Alternative Loan Trust, Series 2007-A4-1A6      5.75%       04/25/2037      2,850,336  
2,335,714    CitiMortgage Alternative Loan Trust, Series 2007-A6-1A16      6.00%       06/25/2037      2,154,757  
1,567,509    Countrywide Alternative Loan Trust, Series 2005-85CB-2A5 (1 Month LIBOR USD + 1.10%)      2.65%       02/25/2036      1,314,465  
331,033    Countrywide Alternative Loan Trust, Series 2005-85CB-2A6 (1 Month LIBOR USD + 21.63%)      15.94%  I/F     02/25/2036      410,771  
2,912,313    Credit Suisse First Boston Mortgage Securities Corporation, Series 2005-11-7A1      6.00%       12/25/2035      2,527,663  
3,588,343    Credit Suisse Mortgage Capital Certificates, Series 2006-5-3A3      6.50%       06/25/2036      1,889,654  
1,140,116    Credit Suisse Mortgage Capital Certificates, Series 2006-9-2A1      5.50%       11/25/2036      1,047,982  
662,350    Credit Suisse Mortgage Capital Certificates, Series 2006-9-6A14      6.00%       11/25/2036      639,603  
1,429,165    First Horizon Asset Securities, Inc., Series 2007-AR3-2A2      3.52%  #     11/25/2037      1,297,840  
626,246    IndyMac Mortgage Loan Trust, Series 2005-AR1-2A1      3.78%  #     11/25/2035      599,170  
2,126,608    IndyMac Mortgage Loan Trust, Series 2005-AR23-6A1      3.31%  #     11/25/2035      1,867,879  
475,420    JP Morgan Alternative Loan Trust, Series 2006-S1-2A5      5.50%       02/25/2021      481,644  
3,709,322    JP Morgan Resecuritization Trust, Series 2011-1-1A10      6.00%  #^     12/26/2036      3,568,853  
3,748,668    JP Morgan Resecuritization Trust, Series 2011-1-2A10      6.00%  #^     06/26/2037      3,636,570  
1,633,125    Lehman Mortgage Trust, Series 2007-10-1A1      6.00%       01/25/2038      1,665,322  
2,103,409    Lehman Mortgage Trust, Series 2007-4-1A3      5.75%       05/25/2037      1,709,230  
695,476    Lehman XS Trust, Series 2005-2-1A2 (1 Month LIBOR USD + 0.70%)      2.25%       08/25/2035      684,873  
1,047,667    MASTR Asset Securitization Trust, Series 2007-2-A3      6.25%       01/25/2038      934,094  
6,500,000    Nationstar HECM Loan Trust, Series 2016-1A-M2      6.54%  #^     06/25/2026      6,529,445  
4,250,000    Nationstar HECM Loan Trust, Series 2016-2A-M2      4.70%  ^     05/25/2027      4,277,621  
3,250,000    Nationstar HECM Loan Trust, Series 2016-3A-M2      5.68%  #^     08/25/2026      3,314,844  
2,018,202    Nomura Resecuritization Trust, Series 2010-2RA-A2      5.50%  #^     01/26/2036      1,993,808  
1,760,624    RBSGC Structured Trust, Series 2008-B-A1      6.00%  ^     06/25/2037      1,669,038  
2,548,102    Residential Accredit Loans, Inc., Series 2005-QS13-2A3      5.75%       09/25/2035      2,493,173  
1,654,196    Residential Accredit Loans, Inc., Series 2005-QS14-3A1      6.00%       09/25/2035      1,583,054  
1,985,800    Residential Accredit Loans, Inc., Series 2006-QS10-A1      6.00%       08/25/2036      1,751,749  
2,172,268    Residential Accredit Loans, Inc., Series 2006-QS6-1A5      5.75%       06/25/2036      1,984,061  
3,939,100    Residential Accredit Loans, Inc., Series 2006-QS7-A3      6.00%       06/25/2036      3,585,642  
1,018,632    Residential Accredit Loans, Inc., Series 2007-QS1-1A1      6.00%       01/25/2037      952,482  
4,340,807    Residential Accredit Loans, Inc., Series 2007-QS3-A1      6.50%       02/25/2037      4,022,369  
1,740,545    Residential Accredit Loans, Inc., Series 2007-QS6-A1 (1 Month LIBOR USD + 0.33%)      1.88%       04/25/2037      1,393,591  
1,842,699    Residential Accredit Loans, Inc., Series 2007-QS6-A102      5.75%       04/25/2037      1,734,949  
396,505    Residential Accredit Loans, Inc., Series 2007-QS6-A2 (1 Month LIBOR USD + 55.58%)      42.65%  I/F     04/25/2037      767,162  
1,894,873    Residential Asset Securitization Trust, Series 2006-A6-1A12 (1 Month LIBOR USD + 7.10%)      5.55%  I/FI/O     07/25/2036      681,780  
1,873,566    Residential Asset Securitization Trust, Series 2006-A6-1A9      6.00%       07/25/2036      1,002,645  
3,959,371    Residential Asset Securitization Trust, Series 2007-A2-1A2      6.00%       04/25/2037      3,581,907  
2,505,478    Residential Asset Securitization Trust, Series 2007-A7-A1      6.00%       07/25/2037      1,843,867  
1,180,888    Residential Asset Securitization Trust, Series 2007-A8-1A3      6.00%       08/25/2037      974,924  
2,037,279    Residential Funding Mortgage Securities Trust, Series 2006-S5-A9      6.00%       06/25/2036      2,030,978  
1,177,874    Residential Funding Mortgage Securities Trust, Series 2007-S2-A4      6.00%       02/25/2037      1,128,296  
1,351,203    Residential Funding Mortgage Securities Trust, Series 2007-S6-1A10      6.00%       06/25/2037      1,297,933  
1,305,316    Structured Adjustable Rate Mortgage Loan Trust, Series 2006-1-2A2      3.45%  #     02/25/2036      1,190,102  
6,397,673    Structured Asset Securities Corporation, Series 2005-11H-A3      5.50%       06/25/2035      6,285,870  
4,613,807    Washington Mutual Mortgage Pass-Through Certificates, Series 2006-8-A4      4.51%  ß     10/25/2036      3,012,736  
            2,751,760    Wells Fargo Alternative Loan Trust, Series 2007-PA3-2A1      6.00%       07/25/2037      2,713,741  
           

 

 

  

Total Non-Agency Residential Collateralized Mortgage Obligations (Cost $152,061,672)

                    158,676,688  
        

 

 

  

US Government and Agency Mortgage Backed Obligations - 44.9% 

         
397,938    Federal Home Loan Mortgage Corporation, Series 2016-KF22-B (1 Month LIBOR USD + 5.05%)      6.42%  ^     07/25/2023      401,957  
889,697    Federal Home Loan Mortgage Corporation, Series 3211-SI (1 Month LIBOR USD + 27.67%)      21.46%  I/FI/O     09/15/2036      662,946  
1,908,553    Federal Home Loan Mortgage Corporation, Series 3236-ES (1 Month LIBOR USD + 6.70%)      5.22%  I/FI/O     11/15/2036      312,721  
1,178,381    Federal Home Loan Mortgage Corporation, Series 3256-S (1 Month LIBOR USD + 6.69%)      5.21%  I/FI/O     12/15/2036      208,327  
952,107    Federal Home Loan Mortgage Corporation, Series 3292-SD (1 Month LIBOR USD + 6.10%)      4.62%  I/FI/O     03/15/2037      124,722  
8,118,978    Federal Home Loan Mortgage Corporation, Series 3297-BI (1 Month LIBOR USD + 6.76%)      5.28%  I/FI/O     04/15/2037      1,518,232  
5,442,857    Federal Home Loan Mortgage Corporation, Series 3311-BI (1 Month LIBOR USD + 6.76%)      5.28%  I/FI/O     05/15/2037      946,248  
5,721,918    Federal Home Loan Mortgage Corporation, Series 3311-IA (1 Month LIBOR USD + 6.41%)      4.93%  I/FI/O     05/15/2037      985,083  
1,323,429    Federal Home Loan Mortgage Corporation, Series 3314-SH (1 Month LIBOR USD + 6.40%)      4.92%  I/FI/O     11/15/2036      167,874  
152,100    Federal Home Loan Mortgage Corporation, Series 3317-DS (1 Month LIBOR USD + 15.00%)      11.31%  I/F     05/15/2037      178,569  
865,250    Federal Home Loan Mortgage Corporation, Series 3330-KS (1 Month LIBOR USD + 6.55%)      5.07%  I/FI/O     06/15/2037      127,803  
237,010    Federal Home Loan Mortgage Corporation, Series 3339-AI (1 Month LIBOR USD + 6.55%)      5.07%  I/FI/O     07/15/2037      27,037  
3,786,427    Federal Home Loan Mortgage Corporation, Series 3339-TI (1 Month LIBOR USD + 6.14%)      4.66%  I/FI/O     07/15/2037      596,523  
2,837,569    Federal Home Loan Mortgage Corporation, Series 3374-SD (1 Month LIBOR USD + 6.45%)      4.97%  I/FI/O     10/15/2037      430,995  
576,940    Federal Home Loan Mortgage Corporation, Series 3382-SU (1 Month LIBOR USD + 6.30%)      4.82%  I/FI/O     11/15/2037      79,959  
6,528,326    Federal Home Loan Mortgage Corporation, Series 3404-SA (1 Month LIBOR USD + 6.00%)      4.52%  I/FI/O     01/15/2038      1,059,281  
568,265    Federal Home Loan Mortgage Corporation, Series 3423-GS (1 Month LIBOR USD + 5.65%)      4.17%  I/FI/O     03/15/2038      56,883  
5,224,100    Federal Home Loan Mortgage Corporation, Series 3435-S (1 Month LIBOR USD + 5.98%)      4.50%  I/FI/O     04/15/2038      714,626  
432,896    Federal Home Loan Mortgage Corporation, Series 3508-PS (1 Month LIBOR USD + 6.65%)      5.17%  I/FI/O     02/15/2039      56,897  
1,636,502    Federal Home Loan Mortgage Corporation, Series 3725-CS (1 Month LIBOR USD + 6.00%)      4.52%  I/FI/O     05/15/2040      209,667  
3,600,597    Federal Home Loan Mortgage Corporation, Series 3728-SV (1 Month LIBOR USD + 4.45%)      2.97%  I/FI/O     09/15/2040      269,507  
14,589,828    Federal Home Loan Mortgage Corporation, Series 3736-SN (1 Month LIBOR USD + 6.05%)      4.57%  I/FI/O     10/15/2040      2,534,754  
5,476,285    Federal Home Loan Mortgage Corporation, Series 3753-SB (1 Month LIBOR USD + 6.00%)      4.52%  I/FI/O     11/15/2040      1,004,459  
6,346,709    Federal Home Loan Mortgage Corporation, Series 3780-SM (1 Month LIBOR USD + 6.50%)      5.02%  I/FI/O     12/15/2040      1,094,518  
2,175,415    Federal Home Loan Mortgage Corporation, Series 3815-ST (1 Month LIBOR USD + 5.85%)      4.37%  I/FI/O     02/15/2041      299,326  
1,174,966    Federal Home Loan Mortgage Corporation, Series 3905-SC (1 Month LIBOR USD + 22.75%)      15.95%  I/F‡     08/15/2041      1,843,750  
2,179,165    Federal Home Loan Mortgage Corporation, Series 3924-SJ (1 Month LIBOR USD + 6.00%)      4.52%  I/FI/O     09/15/2041      323,966  
8,745,923    Federal Home Loan Mortgage Corporation, Series 3960-ES (1 Month LIBOR USD + 5.95%)      4.47%  I/FI/O     11/15/2041      1,177,420  
7,872,929    Federal Home Loan Mortgage Corporation, Series 3997-LZ      3.50%  ‡     02/15/2042      8,056,493  
4,351,564    Federal Home Loan Mortgage Corporation, Series 4064-SA (1 Month LIBOR USD + 6.00%)      4.52%  I/FI/O     06/15/2042      840,318  
2,735,909    Federal Home Loan Mortgage Corporation, Series 4155-GS (1 Month LIBOR USD + 5.46%)      3.83%  I/F‡     01/15/2033      2,489,229  
13,487,923    Federal Home Loan Mortgage Corporation, Series 4217-CS (1 Month LIBOR USD + 5.28%)      3.51%  I/F‡     06/15/2043      11,631,991  
3,353,202    Federal Home Loan Mortgage Corporation, Series 4225-BS (1 Month LIBOR USD + 11.87%)      8.24%  I/F     12/15/2040      3,574,113  
5,147,585    Federal Home Loan Mortgage Corporation, Series 4291-MS (1 Month LIBOR USD + 5.90%)      4.42%  I/FI/O     01/15/2054      829,379  
11,269,889    Federal Home Loan Mortgage Corporation, Series 4302-GS (1 Month LIBOR USD + 6.15%)      4.67%  I/FI/O     02/15/2044      1,884,083  
276,386    Federal National Mortgage Association, Series 2005-72-WS (1 Month LIBOR USD + 6.75%)      5.20%  I/FI/O     08/25/2035      33,867  
2,853,488    Federal National Mortgage Association, Series 2005-90-SP (1 Month LIBOR USD + 6.75%)      5.20%  I/FI/O     09/25/2035      313,091  
1,123,607    Federal National Mortgage Association, Series 2006-117-SQ (1 Month LIBOR USD + 6.55%)      5.00%  I/FI/O     12/25/2036      132,774  
587,140    Federal National Mortgage Association, Series 2006-119-HS (1 Month LIBOR USD + 6.65%)      5.10%  I/FI/O     12/25/2036      81,816  
7,984,931    Federal National Mortgage Association, Series 2006-123-CI (1 Month LIBOR USD + 6.74%)      5.19%  I/FI/O     01/25/2037      1,477,060  
3,772,096    Federal National Mortgage Association, Series 2006-60-YI (1 Month LIBOR USD + 6.57%)      5.02%  I/FI/O     07/25/2036      815,002  
3,663,376    Federal National Mortgage Association, Series 2007-15-BI (1 Month LIBOR USD + 6.70%)      5.15%  I/FI/O     03/25/2037      645,426  
1,307,682    Federal National Mortgage Association, Series 2007-20-S (1 Month LIBOR USD + 6.74%)      5.19%  I/FI/O     03/25/2037      183,869  
727,183    Federal National Mortgage Association, Series 2007-21-SD (1 Month LIBOR USD + 6.48%)      4.93%  I/FI/O     03/25/2037      86,570  
1,777,118    Federal National Mortgage Association, Series 2007-30-IE (1 Month LIBOR USD + 6.74%)      5.19%  I/FI/O     04/25/2037      371,856  
4,249,443    Federal National Mortgage Association, Series 2007-32-SA (1 Month LIBOR USD + 6.10%)      4.55%  I/FI/O     04/25/2037      640,805  
1,921,002    Federal National Mortgage Association, Series 2007-40-SA (1 Month LIBOR USD + 6.10%)      4.55%  I/FI/O     05/25/2037      259,204  
393,851    Federal National Mortgage Association, Series 2007-48-SE (1 Month LIBOR USD + 6.10%)      4.55%  I/FI/O     05/25/2037      40,224  
883,187    Federal National Mortgage Association, Series 2007-64-LI (1 Month LIBOR USD + 6.56%)      5.01%  I/FI/O     07/25/2037      122,445  
302,626    Federal National Mortgage Association, Series 2007-68-SA (1 Month LIBOR USD + 6.65%)      5.10%  I/FI/O     07/25/2037      29,571  
9,753,222    Federal National Mortgage Association, Series 2007-75-PI (1 Month LIBOR USD + 6.54%)      4.99%  I/FI/O     08/25/2037      1,786,691  
5,180,640    Federal National Mortgage Association, Series 2008-33-SA (1 Month LIBOR USD + 6.00%)      4.45%  I/FI/O     04/25/2038      722,211  
4,286,540    Federal National Mortgage Association, Series 2008-42-SC (1 Month LIBOR USD + 5.90%)      4.35%  I/FI/O     05/25/2038      637,824  
936,572    Federal National Mortgage Association, Series 2008-5-GS (1 Month LIBOR USD + 6.25%)      4.70%  I/FI/O     02/25/2038      153,224  
2,814,448    Federal National Mortgage Association, Series 2008-62-SD (1 Month LIBOR USD + 6.05%)      4.50%  I/FI/O     07/25/2038      441,796  
1,914,127    Federal National Mortgage Association, Series 2008-68-SB (1 Month LIBOR USD + 6.10%)      4.55%  I/FI/O     08/25/2038      301,231  
657,560    Federal National Mortgage Association, Series 2009-111-SE (1 Month LIBOR USD + 6.25%)      4.70%  I/FI/O     01/25/2040      66,754  
            2,013,181    Federal National Mortgage Association, Series 2009-12-CI (1 Month LIBOR USD + 6.60%)      5.05%  I/FI/O     03/25/2036      342,922  
484,916    Federal National Mortgage Association, Series 2009-47-SA (1 Month LIBOR USD + 6.10%)      4.55%  I/FI/O     07/25/2039      51,502  
487,942    Federal National Mortgage Association, Series 2009-48-WS (1 Month LIBOR USD + 5.95%)      4.40%  I/FI/O     07/25/2039      55,758  
229,428    Federal National Mortgage Association, Series 2009-67-SA (1 Month LIBOR USD + 5.15%)      3.60%  I/FI/O     07/25/2037      19,746  
849,902    Federal National Mortgage Association, Series 2009-87-SA (1 Month LIBOR USD + 6.00%)      4.45%  I/FI/O     11/25/2049      94,944  
1,651,425    Federal National Mortgage Association, Series 2009-91-SD (1 Month LIBOR USD + 6.15%)      4.60%  I/FI/O     11/25/2039      228,494  
332,945    Federal National Mortgage Association, Series 2010-109-BS (1 Month LIBOR USD + 55.00%)      40.03%  I/F     10/25/2040              1,223,167  
580,440    Federal National Mortgage Association, Series 2010-115-SD (1 Month LIBOR USD + 6.60%)      5.05%  I/FI/O     11/25/2039      70,804  
975,509    Federal National Mortgage Association, Series 2010-11-SC (1 Month LIBOR USD + 4.80%)      3.25%  I/FI/O     02/25/2040      74,324  
3,403,353    Federal National Mortgage Association, Series 2010-134-SE (1 Month LIBOR USD + 6.65%)      5.10%  I/FI/O     12/25/2025      361,145  
9,693,605    Federal National Mortgage Association, Series 2010-142-SC (1 Month LIBOR USD + 6.60%)      5.05%  I/FI/O     12/25/2040      1,935,521  
3,691,502    Federal National Mortgage Association, Series 2010-150-MS (1 Month LIBOR USD + 6.53%)      4.98%  I/FI/O     01/25/2041      644,531  
1,647,275    Federal National Mortgage Association, Series 2010-15-SL (1 Month LIBOR USD + 4.95%)      3.40%  I/FI/O     03/25/2040      188,107  
385,624    Federal National Mortgage Association, Series 2010-19-SA (1 Month LIBOR USD + 5.40%)      3.85%  I/FI/O     03/25/2050      40,316  
1,504,423    Federal National Mortgage Association, Series 2010-31-SB (1 Month LIBOR USD + 5.00%)      3.45%  I/FI/O     04/25/2040      176,434  
2,414,637    Federal National Mortgage Association, Series 2010-39-SL (1 Month LIBOR USD + 5.67%)      4.12%  I/FI/O     05/25/2040      304,731  
602,867    Federal National Mortgage Association, Series 2010-8-US (1 Month LIBOR USD + 4.80%)      3.25%  I/FI/O     02/25/2040      53,031  
704,856    Federal National Mortgage Association, Series 2010-9-GS (1 Month LIBOR USD + 4.75%)      3.20%  I/FI/O     02/25/2040      56,858  
2,141,886    Federal National Mortgage Association, Series 2011-114-S (1 Month LIBOR USD + 6.00%)      4.45%  I/FI/O     09/25/2039      296,992  
2,478,313    Federal National Mortgage Association, Series 2011-146-US (1 Month LIBOR USD + 7.00%)      4.83%  I/F‡     01/25/2042      2,255,744  
157,371    Federal National Mortgage Association, Series 2011-40-SA (1 Month LIBOR USD + 10.00%)      6.12%  I/F     09/25/2040      170,485  
3,324,233    Federal National Mortgage Association, Series 2011-55-BZ      3.50%  ‡     06/25/2041      3,374,079  
1,965,692    Federal National Mortgage Association, Series 2011-58-SA (1 Month LIBOR USD + 6.55%)      5.00%  I/FI/O     07/25/2041      351,293  
1,310,945    Federal National Mortgage Association, Series 2011-5-PS (1 Month LIBOR USD + 6.40%)      4.85%  I/FI/O     11/25/2040      113,758  
5,049,250    Federal National Mortgage Association, Series 2012-22-AZ      4.00%  ‡     03/25/2042      5,291,564  
698,006    Federal National Mortgage Association, Series 2012-29-SG (1 Month LIBOR USD + 6.00%)      4.45%  I/FI/O     04/25/2042      81,112  
7,354,877    Federal National Mortgage Association, Series 2012-56-SN (1 Month LIBOR USD + 6.05%)      4.50%  I/FI/O     06/25/2042      1,004,882  
7,284,449    Federal National Mortgage Association, Series 2012-76-SC (1 Month LIBOR USD + 6.00%)      4.45%  I/FI/O     07/25/2042      1,145,101  
475,193    Federal National Mortgage Association, Series 2012-82-SC (1 Month LIBOR USD + 7.53%)      5.14%  I/F‡     08/25/2042      469,282  
6,666,782    Federal National Mortgage Association, Series 2013-17-MS (1 Month LIBOR USD + 5.40%)      3.77%  I/F‡     03/25/2043      5,579,085  
4,134,825    Federal National Mortgage Association, Series 2013-18-BS (1 Month LIBOR USD + 5.40%)      3.54%  I/F‡     03/25/2043      3,621,821  
2,668,267    Federal National Mortgage Association, Series 2013-41-SC (1 Month LIBOR USD + 6.00%)      3.67%  I/F‡     05/25/2043      2,214,730  
3,222,706    Federal National Mortgage Association, Series 2013-51-SH (1 Month LIBOR USD + 6.00%)      3.67%  I/F‡     05/25/2033      2,919,444  
10,316,596    Federal National Mortgage Association, Series 2013-55-KS (1 Month LIBOR USD + 6.00%)      3.67%  I/F‡     06/25/2043      9,032,735  
3,848,013    Federal National Mortgage Association, Series 2013-61-ZN      3.00%  ‡     06/25/2033      3,749,979  
10,088,485    Federal National Mortgage Association, Series 2013-83-US (1 Month LIBOR USD + 5.00%)      3.45%  I/F‡     08/25/2043      9,247,809  
463,444    Federal National Mortgage Association, Series 374-19      6.50%  I/O     09/25/2036      109,107  
1,167,743    Government National Mortgage Association, Series 2009-104-SD (1 Month LIBOR USD + 6.35%)      4.86%  I/FI/O     11/16/2039      207,599  
308,636    Government National Mortgage Association, Series 2010-98-IA      5.78%  #I/O     03/20/2039      34,385  
322,748    Government National Mortgage Association, Series 2011-56-BS (1 Month LIBOR USD + 6.10%)      4.61%  I/FI/O     11/16/2036      1,966  
1,167,287    Government National Mortgage Association, Series 2011-56-KS (1 Month LIBOR USD + 6.10%)      4.61%  I/FI/O     08/16/2036      20,155  
1,527,053    Government National Mortgage Association, Series 2011-69-SB (1 Month LIBOR USD + 5.35%)      3.85%  I/FI/O     05/20/2041      169,070  
9,175,197    Government National Mortgage Association, Series 2011-70-WS (1 Month LIBOR USD + 9.70%)      6.70%  I/F‡     12/20/2040      9,784,946  
2,302,892    Government National Mortgage Association, Series 2011-71-SG (1 Month LIBOR USD + 5.40%)      3.90%  I/FI/O     05/20/2041      284,684  
2,646,219    Government National Mortgage Association, Series 2011-72-AS (1 Month LIBOR USD + 5.38%)      3.88%  I/FI/O     05/20/2041      343,179  
3,085,364    Government National Mortgage Association, Series 2011-89-SA (1 Month LIBOR USD + 5.45%)      3.95%  I/FI/O     06/20/2041      360,095  
1,486,868    Government National Mortgage Association, Series 2012-34-LI (1 Month LIBOR USD + 122.00%)      6.00%  I/FI/O     12/16/2039      343,615  
9,109,149    Government National Mortgage Association, Series 2013-119-TZ      3.00%  ‡     08/20/2043      8,764,763  
6,070,897    Government National Mortgage Association, Series 2013-188-MS (1 Month LIBOR USD + 5.55%)      4.06%  I/FI/O     12/16/2043      802,676  
47,890,037    Government National Mortgage Association, Series 2013-39-HS (1 Month LIBOR USD + 4.75%)      3.25%  I/FI/O     03/20/2041      4,610,000  
8,676,118    Government National Mortgage Association, Series 2014-39-SK (1 Month LIBOR USD + 6.20%)      4.70%  I/FI/O     03/20/2044      1,285,386  
11,862,986    Government National Mortgage Association, Series 2014-59-DS (1 Month LIBOR USD + 6.25%)      4.76%  I/FI/O     04/16/2044      1,903,325  
8,001,360    Government National Mortgage Association, Series 2014-63-SD (1 Month LIBOR USD + 5.55%)      4.05%  I/FI/O     04/20/2044      1,533,905  
7,804,285    Government National Mortgage Association, Series 2014-69-ST (1 Month LIBOR USD + 6.10%)      4.61%  I/FI/O     12/16/2039      1,064,602  
           

 

 

  

Total US Government and Agency Mortgage Backed Obligations (Cost $144,189,634)

            144,528,655  
        

 

 

  

US Government and Agency Obligations - 7.4%

 

      
            24,000,000    United States Treasury Notes      1.25%  ‡     12/31/2018      23,868,388  
           

 

 

  

Total US Government and Agency Obligations (Cost $23,942,250)

                    23,868,388  
        

 

 

  

Short Term Investments - 0.5% 

 

      
516,800    BlackRock Liquidity Funds FedFund - Institutional Shares      1.16%  ◆          516,800  
516,801    Fidelity Institutional Money Market Government Portfolio - Class I      1.14%  ◆          516,801  
516,801    Morgan Stanley Institutional Liquidity Funds Government Portfolio - Institutional Share Class      1.20%  ◆          516,801  
           

 

 

  

Total Short Term Investments (Cost $1,550,402)

            1,550,402  
        

 

 

  

Total Investments - 130.8%  (Cost $416,927,650)

            421,201,686  
Liabilities in Excess of Other Assets - (30.8)%            (99,299,527)  
        

 

 

  

NET ASSETS - 100.0% 

          $ 321,902,159  
        

 

 

  

  # Variable rate security. Coupon is based on weighted average coupon of underlying collateral. Rate disclosed as of December 31, 2017.  

 

  ß Step coupon bond. The interest rate shown is the rate in effect as of December 31, 2017.  

 

  ^ Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration to qualified institutional buyers. These securities are determined to be liquid by the Adviser, unless otherwise noted, under procedures established by the Fund’s Board of Trustees. At December 31, 2017, the value of these securities amounted to $152,656,297 or 47.4% of net assets.  

 

  ¥ Illiquid security  

 

  @ Security pays interest at rates that represent residual cashflows available after more senior tranches have been paid. The interest rate disclosed reflects the estimated rate in effect as of December 31, 2017.  

 

  I/O Interest only security  

 

  I/F Inverse floating rate security whose interest rate moves in the opposite direction of reference interest rates. Reference interest rates are typically based on a negative multiplier or slope. Interest rate may also be subject to a cap or floor.  

 

  ‡ All or partial amount transferred for the benefit of the counterparty as collateral for reverse repurchase agreements.  

 

  ◆ Seven-day yield as of December 31, 2017  

 

  Þ Value was determined using significant unobservable inputs.  

SECURITY TYPE BREAKDOWN as a % of Net Assets:

 

Non-Agency Residential Collateralized Mortgage Obligations

      49.3%  

US Government and Agency Mortgage Backed Obligations

      44.9%  

Collateralized Loan Obligations

      14.5%  

Non-Agency Commercial Mortgage Backed Obligations

      10.3%  

US Government and Agency Obligations

      7.4%  

Asset Backed Obligations

      3.9%  

Short Term Investments

      0.5%  

Other Assets and Liabilities

      (30.8)%  
  

 

 

  
                 100.0%  
  

 

 

  

Reverse Repurchase Agreements

 

Counterparty    Rate         Trade Date          Maturity Date          Principal          Principal &    
Interest      		  

JP Morgan Securities LLC

      2.08 %      12/7/2017        1/5/2018          $ 25,742,000      $ 25,777,727  

Goldman Sachs

      2.30 %      12/28/2017        1/29/2018            16,947,000        16,950,248  

Goldman Sachs

      1.48 %      11/16/2017        2/15/2018            13,982,000        14,007,867  

Bank of America Merrill Lynch

      2.05 %      12/26/2017        1/29/2018            13,992,000        13,995,984  

JP Morgan Securities LLC

      1.88 %      12/7/2017        1/5/2018            10,267,000        10,279,881  

Goldman Sachs

      1.68 %      12/21/2017        3/22/2018            9,950,000        9,954,643  

Bank of America Merrill Lynch

      2.25 %      12/26/2017        1/29/2018            2,745,000        2,745,858  
          

 

 

  
           $     93,625,000      $     93,712,208  
          

 

 

  

The weighted average daily balance of reverse repurchase agreements during the reporting period ended December 31, 2017 was $86,945,380, at a weighted average interest rate of 1.82%. Total market value of underlying collateral (refer to the Schedule of Investments for positions transferred for the benefit of the counterparty as collateral) for open reverse repurchase agreements at December 31, 2017 was $111,919,806.

Securities Accounted for as Secured Borrowings

 

     Remaining Contractual Maturity of the Agreements  
          Overnight and    
Continuous      		      Up to 30 days          31-90 days          Greater than 90 days          Total      

Reverse Repurchase Agreements

               

US Government and Agency Mortgage Backed Obligations

    $ -      $ 69,693,000      $ -      $ -      $ 69,693,000  

US Government and Agency Obligations

      -        -        23,932,000        -        23,932,000  
  

 

 

  

Total Borrowings

    $ -      $     69,693,000      $     23,932,000      $ -      $ 93,625,000  
  

 

 

  

Gross amount of recognized liabilities for reverse repurchase agreements

 

             $     93,625,000  
           

 

 

  

 

Notes to Schedule of Investments

December 31, 2017 (Unaudited)

 

Organization

DoubleLine Opportunistic Credit Fund (the “Fund”) was formed as a closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”), and originally classified as a non-diversified fund. The Fund is currently operating as a diversified fund. The Fund has previously operated as a non-diversified fund and may operate as a non-diversified fund in the future to the extent permitted by applicable law. The Fund was organized as a Massachusetts business trust on July 22, 2011 and commenced operations on January 27, 2012. The Fund is listed on the New York Stock Exchange (“NYSE”) under the symbol “DBL”. The Fund’s investment objective is to seek high total investment return by providing a high level of current income and the potential for capital appreciation.

Significant Accounting Policies

The Fund is an investment company that applies the accounting and reporting guidance issued in Topic 946, ”Financial Services—Investment Companies”, by the Financial Accounting Standards Board (“FASB”). The following is a summary of the significant accounting policies of the Fund. These policies are in conformity with accounting principles generally accepted in the United States of America (“US GAAP”).

Security Valuation. The Fund has adopted US GAAP fair value accounting standards which establish a definition of fair value and set out a hierarchy for measuring fair value. These standards require additional disclosures about the various inputs and valuation techniques used to develop the measurements of fair value and a discussion of changes in valuation techniques and related inputs during the period. These inputs are summarized in the three broad levels listed below:

Level 1—Unadjusted quoted market prices in active markets for identical securities

Level 2—Quoted prices for identical or similar assets in markets that are not active, or inputs derived from observable market data

Level 3—Significant unobservable inputs (including the reporting entity’s estimates and assumptions)

Assets and liabilities may be transferred between levels. The Fund uses end of period timing recognition to account for any transfers.

Market values for domestic and foreign fixed income securities are normally determined on the basis of valuations provided by independent pricing services. Vendors typically value such securities based on one or more inputs described in the following table which is not intended to be a complete list. The table provides examples of inputs that are commonly relevant for valuing particular classes of fixed income securities in which the Fund is authorized to invest. However, these classifications are not exclusive, and any of the inputs may be used to value any other class of fixed-income securities. Securities that use similar valuation techniques and inputs as described in the following table are categorized as Level 2 of the fair value hierarchy. To the extent the significant inputs are unobservable, the values generally would be categorized as Level 3.

 

Fixed-income class

   

Examples of Inputs

All    Benchmark yields, transactions, bids, offers, quotations from dealers and trading systems, new issues, spreads and other relationships observed in the markets among comparable securities; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance and other reference data (collectively referred to as “standard inputs”)
Corporate bonds and notes; convertible securities    Standard inputs and underlying equity of the issuer
US bonds and notes of government and government agencies    Standard inputs
Residential and commercial mortgage-backed obligations; asset-backed obligations (including collateralized loan obligations)    Standard inputs and cash flows, prepayment information, default rates, delinquency and loss assumptions, collateral characteristics, credit enhancements and specific deal information, trustee reports

Investments in registered open-end management investment companies will be valued based upon the net asset value (“NAV”) of such investments and are categorized as Level 1 of the fair value hierarchy.

The Fund may enter into reverse repurchase agreements. In a reverse repurchase agreement, the Fund sells to a financial institution a security that it holds with an agreement to repurchase the same security at an agreed-upon price and date. A reverse repurchase agreement involves the risk that the market value of the security may decline below the repurchase price of the security. The Fund will segregate assets determined to be liquid by the Adviser or otherwise cover its obligations under reverse repurchase agreements. Due to the short term nature of the reverse repurchase agreements, face value approximates fair value at December 31, 2017.

Securities may be fair valued in accordance with the fair valuation procedures approved by the Board of Trustees (the “Board”). The valuation committee is generally responsible for overseeing the day to day valuation processes and reports periodically to the Board. The valuation committee and the pricing group are authorized to make all necessary determinations of the fair values of portfolio securities and other assets for which market quotations are not readily available or if it is deemed that the prices obtained from brokers and dealers or independent pricing services are deemed to be unreliable indicators of market or fair value.

The following is a summary of the fair valuations according to the inputs used to value the Fund’s investments as of December 31, 20171:

 

Category

   

 

  

Investments in Securities

   

Level 1

   

Money Market Funds

      $ 1,550,402  

 

   

 

 

  

Total Level 1

      1,550,402  

Level 2

   

Non-Agency Residential Collateralized Mortgage Obligations

      150,084,061  

US Government and Agency Mortgage Backed Obligations

      144,528,655  

Collateralized Loan Obligations

      46,576,994  

Non-Agency Commercial Mortgage Backed Obligations

      24,275,079  

US Government and Agency Obligations

      23,868,388  

Asset Backed Obligations

      11,987,922  

 

   

 

 

  

Total Level 2

      401,321,099  

Level 3

   

Non-Agency Commercial Mortgage Backed Obligations

      8,968,983  

Non-Agency Residential Collateralized Mortgage Obligations

      8,592,627  

Asset Backed Obligations

      768,575  

 

   

 

 

  

Total Level 3

      18,330,185  

 

   

 

 

  

Total

      $       421,201,686  

 

   

 

 

  

Certain of the Fund’s assets/liabilities are held at face value, which approximates fair value for financial statement purposes. The following is a summary of such assets/liabilities as of December 31, 2017.

 

Other Financial Instruments

   

Level 1

      $ -  

 

   

 

 

  

Total Level 1

      -  

Level 2

   

Reverse Repurchase Agreements

      93,625,000  

 

   

 

 

  

Total Level 2

      93,625,000  

Level 3

      -  

 

   

 

 

  

Total

      $         93,625,000  

 

   

 

 

  

See the Schedule of Investments for further disaggregation of investment categories.

1 There were no transfers into or out of Level 1 during the period ended December 31, 2017.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

     Fair Value as
of 9/30/2017		     Net
Realized
Gain
(Loss)		     Net Change in
Unrealized
Appreciation
(Depreciation) 3		     Net Accretion
(Amortization)		     Purchases 1     Sales 2    

Transfers
Into

Level 34

    

Transfers
Out of

Level 34

     Fair Value
as of
12/31/2017		     Net Change in
Unrealized
Appreciation
(Depreciation)
on securities
held at
12/31/2017 3		  

Investments in Securities

 

Non-Agency Commercial Mortgage Backed Obligations

   $ 8,879,053     $ -     $ 32,457     $ 57,473     $ -     $ -     $ -     $ -     $ 8,968,983     $ 32,457  

Non-Agency Residential Collateralized Mortgage Obligations

     8,649,166       3,363       (90,724 )      101,859       -       (71,037 )      -       -       8,592,627       (90,724 ) 

Asset Backed Obligations

     777,445       -       (8,870 )      -       -       -       -       -       768,575       (8,870 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 18,305,664     $ 3,363     $ (67,137 )    $ 159,332     $ -     $ (71,037 )    $ -     $ -     $ 18,330,185     $ (67,137 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

1 Purchases include all purchases of securities and payups.

2 Sales include all sales of securities, maturities, and paydowns.

3 Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on securities held at December 31, 2017 may be due to a security that was not held or categorized as Level 3 at either period end.

4 Transfers between Level 3 and Level 2 were due to a change in observable and/or unobservable inputs from the prior fiscal year end.

The following is a summary of quantitative information about Level 3 Fair Value Measurements:

 

      Fair Value
as of
12/31/2017 *		      Valuation
Techniques		    Unobservable
Input		    Input Values     

Impact to valuation from an

increase to input

Non-Agency Commercial Mortgage Backed Obligations

    $ 8,968,983      Market Comparables    Yields      9.65% - 26.22%      Increase in yields would result in the decrease in the fair value of the security

Non-Agency Residential Collateralized Mortgage Obligations

      8,592,627      Market Comparables    Market Quotes      $92.80 - $98.37      Significant changes in the market quotes would result in direct and proportional changes in the fair value of the security

Asset Backed Obligations

      768,575      Market Comparables    Market Quotes      $18.53      Significant changes in the market quotes would result in direct and proportional changes in the fair value of the security

* Level 3 securities are typically valued by pricing vendors. The appropriateness of fair values for these securities is monitored on an ongoing basis by the Adviser, which may include back testing, results of vendor due diligence, unchanged price review and consideration of market and/or sector events.

Item 2. Controls and Procedures.

 

(a) The Registrant’s principal executive and principal financial officers have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “1940 Act”)) (17 CFR 270.30a-3(c)) are effective as of a date within 90 days of the filing date of this Form N-Q based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(d)).

 

(b) There were no changes in the Registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) (17 CFR 270.30a-3(d)) that occurred during the Registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits.

Separate certifications for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)). Filed herewith.

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.

(Registrant)  DoubleLine Opportunistic Credit Fund

By (Signature and Title)          /s/ Ronald R. Redell                                      

Ronald R. Redell, President and Chief Executive Officer

Date                       February 23, 2018                                                 

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 (Signature and Title)          /s/ Ronald R. Redell                          

Ronald R. Redell, President and Chief Executive Officer

Date                       February 23, 2018                                                         

By (Signature and Title)            /s/ Susan Nichols                                                   

Susan Nichols, Treasurer and Principal Financial and Accounting Officer

Date                       February 23, 2018