-----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, IX8khB13+2QhKDsZ4S/KLC3woobJ4a6ySwFcLQ86kQVzhDdabwvvmwPX7qCmWuaa Vd23k+Tz0m8D2m/HpGtplw== 0000950123-10-079797.txt : 20100823 0000950123-10-079797.hdr.sgml : 20100823 20100823103642 ACCESSION NUMBER: 0000950123-10-079797 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20100630 FILED AS OF DATE: 20100823 DATE AS OF CHANGE: 20100823 EFFECTIVENESS DATE: 20100823 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RIVUS BOND 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: 101031638 BUSINESS ADDRESS: STREET 1: 113 KING STREET CITY: ARMONK STATE: NY ZIP: 10508 BUSINESS PHONE: 9142734545 MAIL ADDRESS: STREET 1: 113 KING STREET CITY: ARMONK STATE: NY ZIP: 10508 FORMER COMPANY: FORMER CONFORMED NAME: 1838 BOND DEBENTURE TRADING FUND DATE OF NAME CHANGE: 19920703 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 p18038nvq.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 Rivus Bond 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) Registrant's telephone number, including area code: 914-273-4545 Date of fiscal year end: March 31 Date of reporting period: June 30, 2010 ITEM 1. SCHEDULE OF INVESTMENTS. The Schedule(s) of Investments is attached herewith. SCHEDULE OF INVESTMENTS (UNAUDITED) JUNE 30, 2010
SHARES VALUE -------------- ------------- COMMON STOCK (0.06%) MEDIA (0.06%) World Color Press, Inc. (a) 6,912 $ 76,428 -------------- ------------- TOTAL COMMON STOCK (Cost of $68,750) 76,428 -------------
MOODY'S/ STANDARD & PRINCIPAL POOR'S RATING(b) AMOUNT (000'S) ---------------- -------------- CORPORATE DEBT SECURITIES (84.99%) AUTOMOTIVE (2.20%) Ford Holdings, Inc., Gtd., 9.30%, 03/01/30 B2/CCC $ 1,000 1,005,000 Ford Motor Co., Sr. Unsec. Notes, 8.90%, 01/15/32 B2/CCC 500 487,499 Ford Motor Credit Co. LLC, Sr. Unsec. Notes, 7.00%, 10/01/13 Ba3/B- 1,000 1,019,661 Goodyear Tire & Rubber Co., Sr. Unsec. Notes, 10.50%, 05/15/16(c) B1/B+ 250 271,874 ------------- 2,784,034 ------------- CHEMICALS (1.50%) Braskem Finance, Ltd., Co Gty., 7.00%, 05/07/20, 144A Ba1/BB+ 500 505,000 Dow Chemical Co., Sr. Unsec. Notes, 8.55%, 05/15/19 Baa3/BBB- 500 612,056 Grupo Petrotemex SA de CV, Sr. Unsec. Notes, 9.50%, 08/19/14, 144A Ba2/BB 500 540,000 Westlake Chemicals, Gtd., 6.625%, 01/15/16(c) Ba2/BB+ 250 240,000 ------------- 1,897,056 ------------- DIVERSIFIED FINANCIAL SERVICES (18.18%) American Express Co., Sr. Unsec. Notes, 7.00%, 03/19/18 A3/BBB+ 1,000 1,153,392 Bank of America Corp., Sub. Notes, 5.42%, 03/15/17 A3/A- 1,000 996,300 BNP Paribas, Sub. Notes, 5.186%, 06/29/15, 144A(d),(e) Baa1/A 1,000 820,000 Capital One Capital V, Co. Gty., 10.25%, 08/15/39 Baa3/BB 1,500 1,582,500 Citigroup Capital XXI, Co. Gty., 8.30%, 12/21/77(c),(d) Ba1/BB- 500 486,968 Citigroup, Inc., Sr. Unsec. Notes, 6.01%, 01/15/15 A3/A 1,000 1,048,882 Citigroup, Inc., Unsec. Notes, 8.50%, 05/22/19 A3/A 500 596,061 Cobank, ACB, Sub. Notes, 7.875%, 04/16/18, 144A A2/A 500 576,829 Credit Agricole SA, 6.637%, 05/31/17, 144A(d),(e) A3/A- 800 588,000 Export-Import Bank of Korea, Sr. Notes, 8.125%, 01/21/14 A1/A 500 571,995 FleetBoston Financial Corp., Sub. Notes, 6.875%, 01/15/28 A3/A- 500 507,245 General Electric Capital Corp., Sr. Unsec. Notes, 6.125%, 02/22/11 Aa2/AA+ 1,000 1,032,138 General Electric Capital Corp., Sr. Unsec. Notes, 6.875%, 01/10/39 Aa2/AA+ 1,000 1,104,131 GMAC, Inc., Co. Gty., 7.25%, 03/02/11 B3/B 633 643,285 HSBC America Capital Trust II, Co. Gty., 8.38%, 05/15/27, 144A(c) A1/A- 2,500 2,499,564 HSBC Finance Corp., Sr. Unsec. Notes, 6.75%, 05/15/11 A3/A 1,000 1,040,991 Jefferies Group, Inc., Sr. Unsec. Notes, 6.875%, 04/15/21 Baa2/BBB 250 250,648 JP Morgan Chase Bank NA, Sub. Notes, 6.00%, 10/01/17 Aa2/A+ 1,000 1,088,962 Landesbank Baden-Wurtt NY, Sub. Notes, 6.35%, 04/01/12 Aaa/AAA 500 539,818 Merrill Lynch & Co. Inc., Notes, 6.875%, 04/25/18 A2/A 1,000 1,066,781 Merrill Lynch & Co. Inc., Sub. Notes, 7.75%, 05/14/38 A3/A- 500 534,774 National Agricultural Cooperative Federation, Sr. Notes, 5.00%, 09/30/14, 144A A1/A 500 520,352 Sanwa Bank Ltd., Sr. Sub. Notes, 7.40%, 06/15/11 Aa3/A 500 523,394 UBS PFD Funding Trust I, Co. Gty., 8.622%, 10/01/10(d),(e) Baa3/BBB- 1,000 976,540 UBS PFD Funding Trust V, Co. Gty., 6.243%, 05/15/16(d),(e) Baa3/BBB- 500 428,750 Wachovia Capital Trust III, Bank Gtd., 5.80%, 03/15/11(d),(e) Ba1/A- 1,000 795,000 Wells Fargo Capital XV, 9.75%, 09/26/13(d),(e) Ba1/A- 1,000 1,070,000 ------------- 23,043,300 -------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS SCHEDULE OF INVESTMENTS. 1 SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
MOODY'S/ STANDARD & PRINCIPAL POOR'S RATING(b) AMOUNT (000'S) VALUE ---------------- -------------- ------------- ENERGY (10.84%) Apache Corp., Sr. Unsec. Notes, 7.70%, 03/15/26 A3/A- $ 500 $ 639,297 Florida Gas Transmission Co., LLC, Sr. Unsec. Notes, 9.19%, 11/01/24, 144A Baa2/BBB 150 181,163 Gaz Capital SA, Notes, 8.125%, 07/31/14, 144A Baa1/BBB 500 544,400 KazMunaiGaz Finance Sub BV, Co. Gty., 11.75%, 01/23/15, 144A Baa2/BB+ 500 611,900 Nabors Industries, Inc., Co. Gty., 9.25%, 01/15/19 Baa1/BBB+ 500 614,723 NiSource Finance Corp., Co. Gty., 10.75%, 03/15/16 Baa3/BBB- 250 320,384 ONEOK Partners LP, Sr. Notes, 8.625%, 03/01/19 Baa2/BBB 375 461,980 Petrobras International Finance Co., Sr. Unsub. Notes, 6.125%, 10/06/16 Baa1/BBB- 500 530,793 Petroleos Mexicanos, Co. Gty., 8.00%, 05/03/19 Baa1/BBB 250 297,500 Petroleos Mexicanos, Co. Gty., 6.00%, 03/05/20, 144A Baa1/BBB 750 787,500 Petroleum Co. of Trinidad & Tobago, Ltd., Sr. Unsec., 9.75%, 08/14/19, 144A Baa3/BBB 500 570,000 Pride International, Inc., Sr. Unsec. Notes, 8.50%, 06/15/19 Ba1/BBB- 500 518,750 SEACOR Holdings, Inc., Sr. Notes, 7.375%, 10/01/19 Ba1/BBB- 1,000 1,056,066 Shell International Finance BV, Co. Gty., 4.30%, 09/22/19 Aa1/AA 1,000 1,031,984 Sunoco Logistics Partners Operations LP, Co. Gty., 5.50%, 02/15/20 Baa2/BBB 335 347,637 Transocean, Inc., Sr. Unsec. Notes, 7.50%, 04/15/31 Baa2/BBB+ 500 462,463 Valero Energy Corp., Sr. Unsec. Notes, 10.50%, 03/15/39 Baa2/BBB 500 667,491 Weatherford International, Inc., Co. Gty., 6.80%, 06/15/37 Baa1/BBB 600 564,152 Western Atlas, Inc., Sr. Unsec. Notes, 8.55%, 06/15/24 A2/A 2,539 3,536,814 ------------- 13,744,997 ------------- FOOD AND BEVERAGE (0.12%) Bunge Ltd. Finance Corp., Co. Gty., 8.50%, 06/15/19 Baa2/BBB- 125 149,272 ------------- GAMING, LODGING & LEISURE (0.50%) Wynn Las Vegas LLC, 7.875%, 11/01/17, 144A(c) Ba3/BB+ 125 126,563 Wynn Las Vegas LLC, 7.875%, 05/01/20, 144A(c) Ba3/BB+ 500 502,500 ------------- 629,063 ------------- HEALTHCARE (1.60%) Boston Scientific Corp., Sr. Unsec. Notes, 6.00%, 01/15/20 Ba1/BBB- 500 496,414 Fresenius US Finance II, Inc., Co. Gty, 9.00%, 07/15/15, 144A Ba1/BB 250 270,938 Inverness Medical Innovations, Inc., Sr. Sub. Notes, 9.00%, 05/15/16(c) B3/B- 150 150,375 Monsanto Co. (Pharmacia Corp.), Sr. Unsec. Notes, 6.50%, 12/01/18 A1/AA 500 605,525 Mylan, Inc., Co. Gty., 7.875%, 07/15/20, 144A(c) B1/BB- 500 510,000 ------------- 2,033,252 ------------- INDUSTRIAL (3.67%) Arrow Electronics, Inc., Sr. Unsec. Notes, 6.00%, 04/01/20 Baa3/BBB- 500 516,699 Belden, Inc., Sr. Sub. Notes, 7.00%, 03/15/17(c) Ba2/B+ 250 241,563 Holcim US Finance Sarl & Cie SCS, Co. Gty., 6.00%, 12/30/19, 144A Baa2/BBB 1,000 1,066,765 L-3 Communications Corp., Co. Gty., 6.125%, 07/15/13(c) Ba1/BB+ 250 252,500 L-3 Communications Corp., Co. Gty., 6.375%, 10/15/15(c) Ba1/BB+ 1,000 1,000,000 Lorillard Tobacco Co., Co. Gty., 6.875%, 05/01/20 Baa2/BBB- 500 507,916 Sealed Air Corp., Sr. Notes, 7.875%, 06/15/17, 144A(c) Baa3/BB+ 500 522,642 Worthington Industries, Inc., Sr. Unsec. Notes, 6.50%, 04/15/20 Baa2/BBB 500 545,262 ------------- 4,653,347 ------------- INSURANCE (7.43%) AIG SunAmerica Global Finance VI, Sr. Sec. Notes, 6.30%, 05/10/11, 144A A1/A+ 1,000 1,010,000 AIG SunAmerica, Inc., Sr. Unsec. Notes, 8.125%, 04/28/23 A3/A- 750 784,607 American International Group, Inc., 8.175%, 05/15/68(c),(d) Ba2/BBB 1,000 790,000 Liberty Mutual Group, Inc., Co. Gty., 10.75%, 06/15/88, 144A(c),(d) Baa3/BB 1,000 1,080,000 Lincoln National Corp., 6.05%, 04/20/67(c),(d) Ba1/BBB 500 375,000 Massachusetts Mutual Life Insurance Co., Notes, 8.875%, 06/01/39, 144A A1/AA- 500 665,295
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS SCHEDULE OF INVESTMENTS. 2 SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
MOODY'S/ STANDARD & PRINCIPAL POOR'S RATING(b) AMOUNT (000'S) VALUE ---------------- -------------- ------------- INSURANCE (CONTINUED) Metlife Capital Trust X, 9.25%, 04/08/68, 144A(c),(d) Baa2/BBB $ 500 $ 540,000 MetLife, Inc., Jr. Sub. Notes, 10.75%, 08/01/69(c) Baa2/BBB 500 594,265 Penn Central Corp., Sub. Notes, 10.875%, 05/01/11(f) WR/NR 1,500 1,535,400 Prudential Financial, Inc., Jr. Sub. Notes, 8.875%, 06/15/68(c),(d) Baa3/BBB+ 1,000 1,055,000 Travelers Cos., Inc., Jr. Sub. Notes, 6.25%, 03/15/67(c),(d) A3/BBB 500 469,186 XL Capital Europe PLC, Gtd., 6.50%, 01/15/12 Baa2/BBB+ 500 523,258 ------------- 9,422,011 ------------- MEDIA (9.71%) CBS Corp., Co. Gty., 8.875%, 05/15/19 Baa3/BBB- 350 440,341 Comcast Corp., Gtd., 7.05%, 03/15/33 Baa1/BBB+ 2,000 2,309,122 COX Enterprises, Inc., Sr. Unsec. Notes, 7.375%, 07/15/27, 144A Baa3/BBB- 500 575,604 Harcourt General, Inc., Sr. Debs., 8.875%, 06/01/22 WR/BBB+ 2,000 2,436,008 Interpublic Group of Cos., Inc., Sr. Unsec. Notes, 10.00%, 07/15/17(c) Ba2/BB 500 551,250 News America Holdings, Inc., Co. Gty., 7.90%, 12/31/95 Baa1/BBB+ 1,400 1,669,514 Time Warner, Inc., Sr. Unsec. Notes, 9.15%, 02/01/23 Baa2/BBB 3,000 4,038,915 Viacom, Inc., Co. Gty., 7.875%, 07/30/30 Baa3/BBB- 250 289,453 World Color Press, Inc., Escrow Notes, --%, 12/01/49 WR/NA 1,000 -- ------------- 12,310,207 ------------- MINING (2.62%) Anglo American Capital, Co. Gty., 9.375%, 04/08/19, 144A Baa1/BBB 500 643,097 Barrick North America Finance LLC, Co. Gty., 6.80%, 09/15/18 Baa1/A- 500 587,663 Freeport-McMoran C&G, Sr. Unsec. Notes, 8.375%, 04/01/17(c) Ba2/BBB- 500 550,000 Teck Cominco Ltd., Sr. Unsec. Notes, 6.125%, 10/01/35 Baa3/BBB 1,000 995,000 Vale Overseas Ltd., Co. Gty., 6.25%, 01/23/17 Baa2/BBB+ 500 544,609 ------------- 3,320,369 ------------- PAPER (1.46%) Abitibi-Consolidated, Inc., Sr. Unsec. Notes, 8.85%, 08/01/30(g) WR/NA 500 71,250 Smurfit Capital Funding PLC, Co. Gty., 7.50%, 11/20/25 Ba2/BB 2,000 1,775,000 ------------- 1,846,250 ------------- REAL ESTATE INVESTMENT TRUST (REIT) (5.82%) BioMed Realty LP, Co, Gty., 6.125%, 04/15/20, 144A Baa3/BBB- 350 364,420 Duke Realty LP, Sr. Unsec. Notes, 6.50%, 01/15/18 Baa2/BBB- 500 531,901 Duke Realty LP, Sr. Unsec. Notes, 8.25%, 08/15/19 Baa2/BBB- 500 579,299 Federal Realty Investment Trust, Sr. Unsec. Notes, 5.40%, 12/01/13 Baa1/BBB+ 750 807,955 Federal Realty Investment Trust, Sr. Unsec. Notes, 5.65%, 06/01/16 Baa1/BBB+ 210 224,289 Federal Realty Investment Trust, Sr. Unsec. Notes, 6.20%, 01/15/17 Baa1/BBB+ 290 315,381 First Industrial LP, Sr. Unsec. Notes, 7.50%, 12/01/17 Ba3/BB 200 182,852 Liberty Property LP, Sr. Notes, 7.50%, 01/15/18 Baa2/BBB 1,000 1,100,106 Mack-Cali Realty Corp., Sr. Unsec. Notes, 7.75%, 08/15/19 Baa2/BBB 665 781,455 Nationwide Health Properties, Inc., Sr. Unsec. Notes, 6.00%, 05/20/15 Baa2/BBB 500 540,653 Simon Property Group LP, Sr. Unsec. Notes, 6.125%, 05/30/18 A3/A- 750 827,832 WEA Finance, LLC, Co. Gty., 6.75%, 09/02/19, 144A A2/A- 500 555,728 WEA Finance, LLC, Sr. Notes, 7.125%, 04/15/18, 144A A2/A- 500 564,165 ------------- 7,376,036 ------------- RETAIL & RESTAURANT (0.99%) Darden Restaurants, Inc., Sr. Unsec. Notes, 7.125%, 02/01/16 Baa3/BBB 500 577,549 Levi Strauss & Co., Sr. Unsec. Notes, 8.875%, 04/01/16(c) B2/B+ 500 517,500 Limited Brands, Inc., Sr. Notes, 8.50%, 06/15/19 Ba1/BB 150 161,625 ------------- 1,256,674 ------------- TECHNOLOGY (0.08%) Mantech International Corp., Co. Gty., 7.25%, 04/15/18, 144A(c) Ba2/BB+ 100 101,000 -------------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS SCHEDULE OF INVESTMENTS. 3 SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
MOODY'S/ STANDARD & PRINCIPAL POOR'S RATING(b) AMOUNT (000'S) VALUE ---------------- -------------- ------------- TELECOMMUNICATIONS (8.42%) Deutsche Telekom International Finance BV, Gtd., 8.75%, 06/15/30 Baa1/BBB+ $ 2,000 $ 2,583,392 Frontier Communications Corp., Sr. Unsec. Notes, 8.125%, 10/01/18 Ba2/BB 500 496,875 GTE Corp., Co. Gty., 6.94%, 04/15/28 Baa1/A 1,500 1,650,209 NII Capital Corp., Co. Gty., 10.00%, 08/15/16(c) B1/BB- 500 526,250 Qwest Corp., Sr. Unsec. Notes, 7.20%, 11/10/26(c) Ba1/BBB- 1,000 935,000 Qwest Corp., Sr. Unsec. Notes, 7.25%, 10/15/35(c) Ba1/BBB- 500 458,750 Sprint Capital Corp, 8.75%, 03/15/32 Ba3/BB- 1,000 955,000 Valor Telecommunications Enterprises Finance Corp., Co. Gty., 7.75%, 02/15/15(c) Baa3/BB+ 1,000 1,020,000 Verizon Global Funding Corp., Sr. Unsec. Notes, 7.75%, 12/01/30 A3/A 1,646 2,051,163 ------------- 10,676,639 ------------- TRANSPORTATION (3.84%) BNSF Funding Trust I, Co. Gty., 6.613%, 12/15/55(c),(d) Baa2/BBB 250 238,125 Erac USA Finance, Co., Co. Gty., 7.00%, 10/15/37, 144A Baa2/BBB+ 1,500 1,634,549 Federal Express Corp., Sr. Unsec. Notes, 9.65%, 06/15/12 Baa2/BBB 1,750 1,988,928 GATX Corp., Notes, 4.75%, 10/01/12 Baa1/BBB+ 500 526,368 Stena AB, Sr. Unsec. Notes, 7.00%, 12/01/16(c) Ba2/BB+ 500 476,250 ------------- 4,864,220 ------------- UTILITIES (6.01%) Avista Corp., 5.95%, 06/01/18 Baa1/BBB+ 500 554,652 Avista Corp., 5.125%, 04/01/22 Baa1/BBB+ 500 532,777 Dominion Resources, Inc., Sr. Unsub., Series 07-A, 6.00%, 11/30/17 Baa2/A- 500 570,253 FPL Group Capital, Inc., Co. Gty., Series D, 7.30%, 09/01/67(c),(d) Baa2/BBB 500 492,500 Hydro-Quebec, Gtd., 8.25%, 04/15/26 Aa2/A+ 1,550 2,123,250 MidAmerican Funding LLC, Sr. Sec. Bonds, 6.927%, 03/01/29 A3/BBB+ 500 589,861 Ohio Power Co., Sr. Unsec. Notes, 6.00%, 06/01/16 Baa1/BBB 500 566,265 Ohio Power Co., Sr. Unsec. Notes, 5.375%, 10/01/21 Baa1/BBB 1,000 1,067,062 Old Dominion Electric Coop., Sec. Bonds, 6.25%, 06/01/11 A3/AAA 500 521,343 Toledo Edison Co., 7.25%, 05/01/20 Baa1/BBB 500 605,776 ------------- 7,623,739 ------------- TOTAL CORPORATE DEBT SECURITIES (Cost of $98,238,425) 107,731,466 ------------- ASSET BACKED SECURITIES (0.90%) Option One Mortgage Loan Trust, Series 2007-FXD2, Class 2A1, 5.90%, 03/25/37 Aa3/AAA 317 300,302 Sierra Receivables Funding Co., Series 2009-1A, Class A1, 9.79%, 12/22/25, 144A Aaa/AAA 47 48,338 Sonic Capital LLC, Series 2006-1A, Class A2, 5.096%, 12/20/31, 144A Baa2/BBB- 820 796,309 ------------- TOTAL ASSET BACKED SECURITIES (Cost of $1,164,094) 1,144,949 ------------- COMMERCIAL MORTGAGE-BACKED SECURITIES (6.79%) American Tower Trust, Series 2007-1A, Class AFX, 5.42%, 04/15/37, 144A Aaa/AAA 700 753,206 Banc of America Commercial Mortgage, Inc., Series 2006-2, Class AM, 5.963%, 05/10/45(d) A2/A 1,440 1,288,103 CW Capital Cobalt, Ltd., Series 2007-C2, Class A3, 5.484%, 04/15/47(d) Aaa/AAA 500 474,229 Developers Diversified Realty Corp., Series 2009-DDR1, Class C, 6.223%, 10/14/22, 144A A2/A 500 517,451 JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006- CB16, Class A4, 5.552%, 05/12/45 Aaa/AAA 1,000 1,048,295 JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007- CB20, Class A4, 5.794%, 02/12/51(d) Aaa/A+ 880 890,302 LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4, 5.424%, 02/15/40 A3/A+ 970 965,702
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS SCHEDULE OF INVESTMENTS. 4 SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED
MOODY'S/ STANDARD & PRINCIPAL POOR'S RATING(b) AMOUNT (000'S) VALUE ---------------- -------------- ------------- COMMERCIAL MORTGAGE-BACKED SECURITIES (CONTINUED) LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3, 5.43%, 02/15/40 A3/A+ $ 1,375 $ 1,379,157 Morgan Stanley Capital I, Series 2007-IQ16, Class A4, 5.809%, 12/12/49 A3/A+ 750 776,633 Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A3, 5.679%, 10/15/48 Aaa/AAA 500 517,894 ------------- TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (Cost of $6,828,703) 8,610,972 ------------- RESIDENTIAL MORTGAGE-BACKED SECURITIES (3.98%) FHLMC Pool # A15675, 6.00%, 11/01/33 Aaa/AAA 703 773,627 FHLMC Pool # B11892, 4.50%, 01/01/19 Aaa/AAA 804 857,520 FNMA Pool # 754791, 6.50%, 12/01/33 Aaa/AAA 886 987,491 FNMA Pool # 763852, 5.50%, 02/01/34 Aaa/AAA 1,446 1,556,715 FNMA Pool # 889554, 6.00%, 04/01/38 Aaa/AAA 542 588,736 GNSF Pool # 417239, 7.00%, 02/15/26 Aaa/AAA 35 40,209 GNSF Pool # 780374, 7.50%, 12/15/23 Aaa/AAA 18 20,989 Wells Fargo Mortgage Backed Securities Trust, Series 2007-10, Class 1A19, 6.00%, 07/25/37 B2/B 247 216,758 ------------- TOTAL RESIDENTIAL MORTGAGE-BACKED SECURITIES (Cost of $4,614,511) 5,042,045 ------------- MUNICIPAL BONDS (0.81%) State of Illinois, Build America Bonds, GO, 6.900%, 03/01/35 A1/A+ 500,000 482,800 State of California, Build America Bonds, GO, 7.625%, 03/01/40 A1/A- 500,000 540,235 ------------- TOTAL MUNICIPAL BONDS (Cost of $1,018,995) 1,023,035 -------------
SHARES -------------- PREFERRED STOCK (0.08%) GMAC, Inc., 144A Caa2/C 134 104,156 ------------- TOTAL PREFERRED STOCK (Cost of $42,177) 104,156 ------------- WARRANTS (0.01%) World Color Press, Inc. Strike price @ 13.00, 07/20/14 3,917 5,053 World Color Press, Inc. Strike price @ 16.30, 07/20/14 3,917 3,212 ------------- TOTAL WARRANTS (Cost of $9,922) 8,265 ------------- TOTAL INVESTMENTS (97.62%) (Cost $111,985,577) * 123,741,316 ------------- OTHER ASSETS AND LIABILITIES (2.38%) 3,022,454 ------------- NET ASSETS (100.00%) $ 126,763,770 =============
(a) Non-income producing security. (b) Ratings for debt securities are unaudited. All ratings are as of June 30, 2010 and may have changed subsequently. (c) This security is callable. (d) Variable rate security. Rate disclosed is as of June 30, 2010. (e) Security is perpetual. Date shown is next call date. (f) Security was valued using fair value procedures as of June 30, 2010. (g) Security is in default. THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS SCHEDULE OF INVESTMENTS. 5 SCHEDULE OF INVESTMENTS (UNAUDITED) -- CONTINUED 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 June 30, 2010, these securities amounted to 17.12% of net assets. * Aggregate cost for Federal income tax purposes $111,985,577. Gross unrealized appreciation $13,565,781 Gross unrealized depreciation (1,810,042) ----------- Net unrealized appreciation $11,755,739 ===========
Legend Co. Gty. - Company Guaranty Debs. - Debentures FHLMC - Federal Home Loan Mortgage Corp. FNMA - Federal National Mortgage Association GNSF - Government National Mortgage Association (Single Family) GO - General Obligation Gtd. - Guaranteed NA - Not Available NR - Not Rated Sec. - Secured Sr. - Senior Sub. - Subordinated Unsec. - Unsecured Unsub. - Unsubordinated WR - Withdrawn Rating THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THIS SCHEDULE OF INVESTMENTS. 6 RIVUS BOND FUND NOTES TO THE QUARTERLY PORTFOLIO OF INVESTMENTS JUNE 30, 2010 (UNAUDITED) A. SECURITY VALUATION - In valuing the Fund's net assets, all securities for which representative market quotations are available will be valued at the last quoted sales price on the security's principal exchange on the day of valuation. If there are no sales of the relevant security on such day, the security will be valued at the bid price at the time of computation. Prices for securities traded in the over-the-counter market, including listed debt and preferred securities, whose primary market is believed to be over-the-counter, normally are supplied by independent pricing services. Securities for which market quotations are not readily available will be valued at their respective fair values as determined in good faith by, or under procedures established by the Board of Trustees. At June 30, 2010, Penn Central Corp. was valued using fair value procedures and represented 1.21% of net assets. FAIR VALUE MEASUREMENTS - The inputs and valuations techniques used to measure fair value of the Fund's net assets are summarized into three levels as described in the hierarchy below: - Level 1 - quoted prices in active markets for identical securities - Level 2 - other significant observable inputs (including quoted prices for similar securities, 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 for valuing securities are not necessarily an indication of the risk associated with investing in those securities. Summary of inputs used to value the Fund's net assets as of June 30, 2010 is as follows:
LEVEL 2 LEVEL 3 TOTAL MARKET LEVEL 1 SIGNIFICANT SIGNIFICANT VALUE AT QUOTED OBSERVABLE UNOBSERVABLE 06/30/10 PRICE INPUTS INPUTS ------------ -------- ------------ ------------ COMMON STOCK * $ 76,428 $ 76,428 $ -- $ -- CORPORATE DEBT SECURITIES 107,731,466 -- 106,196,066 1,535,400 RESIDENTIAL MORTGAGE-BACKED SECURITIES 5,042,045 -- 5,042,045 -- COMMERCIAL MORTGAGE-BACKED SECURITIES 8,610,972 -- 8,610,972 -- ASSET BACKED SECURITIES 1,144,949 -- 1,144,949 -- MUNICIPAL BONDS 1,023,035 -- 1,023,035 -- PREFERRED STOCK 104,156 104,156 -- -- WARRANTS 8,265 -- 8,265 -- ------------ -------- ------------ ---------- TOTAL INVESTMENTS $123,741,316 $180,584 $122,025,332 $1,535,400 ============ ======== ============ ==========
* See Schedule of Investments for industry breakout. 7 RIVUS BOND FUND NOTES TO THE QUARTERLY PORTFOLIO OF INVESTMENTS JUNE 30, 2009 (CONTINUED) (UNAUDITED) Following is a reconciliation of Level 3 investments for which significant unobservable inputs were used to determined fair value:
CORPORATE DEBT SECURITIES (MARKET VALUE) -------------- BALANCE AS OF MARCH 31, 2010 $1,544,970 Accrued discounts/premiums (3,299) Realized gain (loss) -- Change in unrealized appreciation (depreciation) (6,271) Net purchases (sales) -- Transfer in and/or out of Level 3 -- ---------- BALANCE AS OF JUNE 30, 2010 $1,535,400 ==========
The Fund's policy is to recognize transfers in and transfers out as of the beginning of the fiscal period. For more information with regards to significant accounting policies, see the most recent semi or annual report filed with the Securities and Exchange Commission. 8 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) Rivus Bond Fund By (Signature and Title)* /s/ Clifford D. Corso ---------------------------------- Clifford D. Corso, President (principal executive officer) Date 8/20/10 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 8/20/10 By (Signature and Title)* /s/ Joseph L. Sevely ---------------------------------- Joseph L. Sevely, Treasurer (principal financial officer) Date 8/20/10 * Print the name and title of each signing officer under his or her signature. EX-99.CERT 2 p18038exv99wcert.txt EX-99.CERT EXHIBIT 99.CERT 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 Rivus Bond 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 in 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: 8/20/10 /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, Joseph L. Sevely, certify that: 1. I have reviewed this report on Form N-Q of Rivus Bond 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 in 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: 8/20/10 /s/ Joseph L. Sevely ---------------------------------------- Joseph L. Sevely, Treasurer (principal financial officer) -----END PRIVACY-ENHANCED MESSAGE-----