-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CNZic8YaZ5yuhkccsB1d//qm3iK4FhoRgrM6JiG7X3ZRxR7tQYydAHxOf4x8vvNA KcyMPMOxTKchpCV5LMoUsw== 0000950116-06-000600.txt : 20060217 0000950116-06-000600.hdr.sgml : 20060217 20060217100021 ACCESSION NUMBER: 0000950116-06-000600 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20051231 FILED AS OF DATE: 20060217 DATE AS OF CHANGE: 20060217 EFFECTIVENESS DATE: 20060217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: 1838 BOND DEBENTURE TRADING FUND CENTRAL INDEX KEY: 0000030125 IRS NUMBER: 231745238 STATE OF INCORPORATION: DE FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-02201 FILM NUMBER: 06627388 BUSINESS ADDRESS: STREET 1: 2701 RENAISSANCE BOULEVARD STREET 2: FOURTH FLOOR CITY: KING OF PRUSSIA STATE: PA ZIP: 19406 BUSINESS PHONE: 4843224300 MAIL ADDRESS: STREET 1: 2701 RENAISSANCE BOULEVARD STREET 2: FOURTH FLOOR CITY: KING OF PRUSSIA STATE: PA ZIP: 19406 FORMER COMPANY: FORMER CONFORMED NAME: DREXEL BOND DEBENTURE TRADING FUND DATE OF NAME CHANGE: 19890511 FORMER COMPANY: FORMER CONFORMED NAME: DREXEL INCOME SECURITIES INC DATE OF NAME CHANGE: 19711102 N-Q 1 n-q.txt N-Q 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 811-02201 --------- 1838 Bond-Debenture Trading Fund - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 113 King Street Armonk, NY 10504 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Clifford D. Corso 113 King Street Armonk, NY 10504 - -------------------------------------------------------------------------------- (Name and address of agent for service) Copies to: Thomas E. Stabile 113 King Street Armonk, NY 10504 Registrant's telephone number, including area code: 914-273-4545 ------------ Date of fiscal year end: March 31 -------- Date of reporting period: December 31, 2005 ----------------- ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached herewith. SCHEDULE OF INVESTMENTS (UNAUDITED) DECEMBER 31, 2005
MOODY'S/ STANDARD & POOR'S PRINCIPAL AMORTIZED COST VALUE RATING* AMOUNT (000'S) (NOTE 1) (NOTE 1) ---------- -------------- -------------- ----------- LONG TERM DEBT SECURITIES (98.38%) AUTOMOBILES & RELATED (7.67%) Auburn Hills Trust, Gtd. Ctfs., 12.375%, 05/01/20 .................. A3/BBB 1,000 $ 1,000,000 $ 1,486,932 Ford Holdings, Inc., Gtd., 9.30%, 03/01/30 ......................... Ba1/BB+ 1,000 1,107,871 745,000 Ford Motor Co., Debs., 8.90%, 01/15/32 ............................. Ba1/BB+ 1,560 1,544,591 1,142,700 Ford Motor Credit Co., 7.00%, 10/01/13 ............................. Baa3/BB+ 2,000 2,052,579 1,708,914 General Motors Acceptance Corp., Notes, 6.125%, 09/15/06 ........... Ba1/BB 1,000 997,722 971,355 General Motors Acceptance Corp., Notes, 7.25%, 03/02/11 ............ Ba1/BB 1,000 1,006,525 919,138 Meritor Automotive, Notes, 6.80%, 02/15/09 ......................... Ba2/BB 500 510,231 466,250 ----------- ----------- 8,219,519 7,440,289 ----------- ----------- ELECTRIC UTILITIES (5.50%) Dominion Resources, Inc., Sr. Notes, 6.75%, 12/15/32 ............... Baa1/BBB 1,000 997,729 1,076,222 Hydro-Quebec, Gtd. Debs., 8.25%, 04/15/26 .......................... A1/A+ 1,550 1,486,150 2,138,876 Midamerican Funding LLC, 6.927%, 03/01/29 .......................... Baa1/BBB+ 500 500,000 559,455 NSTAR, Notes, 8.00%, 02/15/10 ...................................... A2/A- 500 499,030 553,966 Old Dominion Electric Corp., 6.25%, 06/01/11 ....................... Aaa/AAA 500 500,405 530,330 PSEG Power, Notes, 5.00%, 04/01/14 ................................. Baa1/BBB 500 499,469 482,417 ----------- ----------- 4,482,783 5,341,266 ----------- ----------- FINANCIAL (22.49%) AIG Sunamer Global Finance VI, 6.30%, 05/10/11, 144A ............... Aa2/AA+ 1,000 1,085,902 1,062,357 Bank of America, Sub. Notes, 7.40%, 01/15/11 ....................... Aa3/A+ 1,000 1,043,224 1,101,524 BB&T Corp., Sub. Notes, 6.50%, 08/01/11 ............................ A1/A- 500 498,369 536,177 Berkshire Hathaway Finance, 5.10%, 07/15/14 ........................ Aaa/AAA 1,000 1,001,767 1,001,669 CIT Group, Inc., Sr. Notes, 7.375%, 04/02/07 ....................... A2/A 1,800 1,854,115 1,852,425 Citicorp Capital II, Gtd., 8.015%, 02/15/27 ........................ Aa2/A 2,000 2,010,921 2,136,316 Credit Suisse FB USA, Inc., Notes, 4.875%, 08/15/10 ................ Aa3/A+ 500 499,964 496,165 General Electric Capital Corp., Notes, 6.125%, 02/22/11 ............ Aaa/AAA 1,000 1,064,513 1,052,051 General Electric Capital Corp., Notes, 6.75%, 03/15/32 ............. Aaa/AAA 1,500 1,547,492 1,760,777 Household Finance Corp., Notes, 6.75%, 05/15/11 .................... A1/A 1,500 1,500,045 1,609,756 HSBC America Capital II, Gtd., 8.38%, 05/15/27, 144A ............... NR/A- 2,500 2,564,458 2,692,102 i Star Financial, 6.00%, 12/15/10 .................................. Baa3/BBB- 1,000 1,018,402 1,015,432 Landesbank Baden-Wurtt NY, Sub. Notes, 6.35%, 04/01/12 ............. Aaa/AA+ 500 499,099 545,512 Penn Central Corp., Sub. Notes, 10.875%, 05/01/11** ................ WR/NR 1,500 1,562,300 1,728,750 Residential Capital Corp., 6.375% 06/30/10, 144A ................... Baa3/BBB- 1,000 997,338 1,016,115 Sanwa Bank Ltd., Sub. Notes, 7.40%, 06/15/11 ....................... A2/A- 500 489,436 552,120 UBS PFD Funding Trust I, Gtd., 8.622%, 10/29/49 .................... A1/AA- 1,000 1,007,770 1,143,908 XL Capital Europe PLC, Gtd., 6.50%, 01/15/12 ....................... A3/A- 500 498,213 528,209 ----------- ----------- 20,743,328 21,831,365 ----------- ----------- INDUSTRIAL, MATERIALS & MISC. (24.72%) Abitibi-Consolidated, Inc., Debs., 8.85%, 08/01/30 ................. B1/B+ 1,500 1,500,004 1,282,500 Bristol-Myer Squibb, 5.75%, 10/01/11 ............................... A1/A+ 1,000 1,032,372 1,032,779 Caesars Entertainment, Sr. Notes, 7.50%, 09/01/09 .................. Baa3/BBB- 1,000 1,063,240 1,064,982 CarrAmerica Realty Corp., 5.50%, 12/15/10 .......................... Baa2/BBB 500 499,764 499,239 Case New Holland, Inc., Sr. Notes, 6.00%, 06/01/09, 144A ........... Ba3/BB- 500 498,015 485,000 Cendant Corp., Sr. Notes, 7.375%, 01/15/13 ......................... Baa1/BBB+ 500 557,168 558,612 Centex Corp., Notes, 5.45%, 08/15/12 ............................... Baa2/BBB 1,000 995,070 982,955 Darden Restaurants, Inc., Debs., 7.125%, 02/01/16 .................. Baa1/BBB+ 500 443,617 560,111 EOP Operating LP, Sr. Notes, 7.25%, 02/15/18 ....................... Baa2/BBB 1,000 993,992 1,115,995 Harcourt General, Inc., Sr. Debs., 8.875%, 06/01/22 ................ WR/A- 2,000 2,131,739 2,645,116 Host Marriott LP, Sr. Notes, 7.00%, 08/15/12 ....................... Ba2/BB- 500 524,898 512,500 IMC Global, Debs., 6.375%, 07/15/07 ................................ B1/B+ 500 515,079 507,500 Kraft Foods, Inc., 4.125%, 11/12/09 ................................ A3/BBB+ 575 555,696 556,403 Liberty Property Trust, Sr. Notes, 7.50%, 01/15/18 ................. Baa2/BBB 1,000 999,366 1,128,741 MGM Mirage, Co. Gty, 6.00%, 10/01/09 ............................... Ba2/BB 1,000 993,561 993,750 Mohegan Tribal Gaming Authority, Sr. Notes, 6.375%, 07/15/09 ....... Ba3/B+ 500 513,568 503,125 Monsanto Co. (Pharmacia Corp), 6.50%, 12/01/18 ..................... Aaa/AAA 500 578,272 562,031 Nationwide Health Properties, Notes, 6.00%, 05/20/15 ............... Baa3/BBB- 500 499,500 492,793 Newell Rubbermaid, Inc., 6.00%, 03/15/07 ........................... Baa2/BBB+ 750 757,860 760,058 Quebecor World, Inc.,Gtd., 6.125%, 11/15/13 ........................ Ba2/BB 1,500 1,509,800 1,338,337 Royal Caribbean Cruises, Sr. Notes, 6.75%, 03/15/08 ................ Ba1/BB+ 1,000 947,348 1,026,250 Smurfit Capital Funding, Debs., 7.50%, 11/20/25 .................... B1/B+ 2,000 1,992,283 1,760,000 Starwood Hotels & Resorts, Gtd., 7.875%, 05/01/12 .................. Ba1/BB+ 1,000 996,666 1,102,500
SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
MOODY'S/ STANDARD & POOR'S PRINCIPAL AMORTIZED COST VALUE RATING* AMOUNT (000'S) (NOTE 1) (NOTE 1) ---------- -------------- -------------- ----------- INDUSTRIAL, MATERIALS & MISC. -- CONTINUED Tyco International Group SA, Co. Gty, 6.75%, 02/15/11 .............. Baa3/BBB+ 750 $ 784,852 $ 788,542 Union Camp Corp., Debs., 9.25%, 02/01/11 ........................... Baa3/BBB 1,500 1,494,203 1,731,666 ----------- ----------- 23,377,933 23,991,485 ----------- ----------- OIL & GAS (7.25%) Apache Corp., Notes, 7.70%, 03/15/26 ............................... A3/A- 500 522,559 636,670 ChevronTexaco, Debs., 7.50%, 03/01/43 .............................. Aa3/AA 2,000 1,979,009 2,307,208 Transocean, Inc., Notes, 7.50%, 04/15/31 ........................... Baa1/A- 500 497,902 629,978 Western Atlas, Inc., Debs., 8.55%, 06/15/24 ........................ A2/A- 2,539 2,636,426 3,465,621 ----------- ----------- 5,635,896 7,039,477 ----------- ----------- TELECOMMUNICATIONS & MULTIMEDIA (19.97%) Clear Channel Communication, Co. Gty, 8.00%, 11/01/08 .............. Baa3/BBB- 1,000 1,061,182 1,063,150 Comcast Corp., Gtd., 7.05%, 03/15/33 ............................... Baa2/BBB+ 2,000 2,190,702 2,159,170 CSC Holdings, Sr. Notes, 7.25%, 07/15/08 ........................... B2/B+ 500 525,221 498,750 Deutsche Telekom International, Gtd., 8.75%, 06/15/30 .............. A3/A- 2,000 2,507,251 2,543,738 Dex Media West LLC, Sr. Notes, 8.50%, 08/15/10 ..................... B1/B 500 535,450 523,750 Echostar DBS Corp., Sr. Notes, 5.75%, 10/01/08 ..................... Ba3/BB- 500 497,530 490,000 GTE Corp., Debs., 6.94%, 04/15/28 .................................. Baa1/A+ 2,000 2,107,476 2,140,392 News America Holdings, Inc., Gtd., 7.90%, 12/01/95 ................. Baa2/BBB 1,400 1,298,983 1,590,812 SBC Communications, Inc., Notes, 5.875%, 08/15/12 .................. A2/A 500 494,492 515,096 Sprint Capital Corp., Co. Gty, 6.90%, 05/01/19 ..................... Baa2/A- 1,750 1,760,559 1,927,431 Time Warner, Inc., Debs., 9.15%, 02/01/23 .......................... Baa1/BBB+ 3,000 3,136,832 3,689,412 Verizon Global Funding Corp., Notes, 7.75%, 12/01/30 ............... A3/A 1,646 1,674,920 1,956,529 Viacom, Inc., Sr. Debs., 7.875%, 07/30/30 .......................... Baa3/BBB+ 250 246,419 285,472 ----------- ----------- 18,037,017 19,383,702 ----------- ----------- MORTGAGE BACKED SECURITIES (8.56%) FHLMC Pool # B11892, 4.50%, 01/01/19 ............................... Aaa/AAA 1,893 1,909,785 1,846,600 FHLMC Pool # A15675, 6.00%, 11/01/33 ............................... Aaa/AAA 1,362 1,404,222 1,377,183 FNMA Pool # 763852, 5.50%, 02/01/34 ................................ Aaa/AAA 2,985 3,047,514 2,958,283 FNMA Pool # 754791, 6.50%, 12/01/33 ................................ Aaa/AAA 1,949 2,031,162 2,000,165 GNSF Pool # 417239, 7.00%, 02/15/26 ................................ Aaa/AAA 82 83,338 86,804 GNSF Pool # 780374, 7.50%, 12/15/23 ................................ Aaa/AAA 38 38,216 40,711 ----------- ----------- 8,514,237 8,309,746 ----------- ----------- U.S. GOVERNMENT AGENCY (2.22%) FNMA, Notes, 7.125%, 03/15/07 ...................................... Aaa/AAA 2,100 2,160,400 2,156,765 ----------- ----------- TOTAL LONG TERM DEBT SECURITIES .................................... 91,171,113 95,494,095 ----------- ----------- SHARES INVESTMENT COMPANIES (1.73%) ------ High Yield Plus Fund ............................................... 33 223,875 109,332 PNC Bank Money Market Fund ......................................... 1,567 1,567,463 1,567,463 ----------- ----------- 1,791,338 1,676,795 ----------- ----------- TOTAL INVESTMENTS (100.11%) ........................................ $92,962,451 97,170,890 =========== OTHER ASSETS AND LIABILITIES (-0.11%) .............................. (102,113) ----------- NET ASSETS (100.00%) ............................................... $97,068,777 ===========
* Ratings for debt securities are unaudited. All ratings are as of December 31, 2005 and may have changed subsequently. ** Security was valued using fair value procedures as of December 31, 2005 (See Note 1). 144A--Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. At the end of the period, these securities amounted to 5.41% of net assets. Legend - ------ Co. Gty - Company Guaranty Ctfs. - Certificates Debs. - Debentures GNSF - Government National Mortgage Association Gtd. - Guaranteed FHLMC - Federal Home Loan Mortgage Corp. FNMA - Federal National Mortgage Association (Single Family) NR - Not Rated Sr. - Senior Sub. - Subordinated WR - Withdrawn Rating The accompanying notes are an integral part of these financial statements. ITEM 2. CONTROLS AND PROCEDURES. (a) The registrant's principal executive and principal financial officers, or persons performing similar functions, 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") (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)). (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 (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. Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 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. (Registrant) 1838 Bond-Debenture Trading Fund ------------------------------------------------------------------- By (Signature and Title)* /s/ Clifford D. Corso ------------------------------------------------------ Clifford D. Corso, President (principal executive officer) Date February 13, 2005 --------------------------------------------------------------------------- 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/ Clifford D. Corso ------------------------------------------------------ Clifford D. Corso, President, (principal executive officer) Date February 13, 2005 --------------------------------------------------------------------------- By (Signature and Title)* /s/ Marc D. Morris ------------------------------------------------------ Marc D. Morris, Treasurer, (principal financial officer) Date February 13, 2005 --------------------------------------------------------------------------- * Print the name and title of each signing officer under his or her signature. CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Clifford D. Corso, certify that: 1. I have reviewed this report on Form N-Q of 1838 Bond-Debenture Trading Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined under Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 13, 2005 /s/ Clifford D. Corso -------------------------- ---------------------------------- Clifford D. Corso, President (principal executive officer) CERTIFICATION PURSUANT TO RULE 30A-2(A) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT I, Marc D. Morris, certify that: 1. I have reviewed this report on Form N-Q of 1838 Bond-Debenture Trading Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined under Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 13, 2005 /s/ Marc D. Morris -------------------------- ---------------------------------- Marc D. Morris, Treasurer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----