Federated Investors
World-Class Investment Manager

Federated High Yield Trust

SEMI-ANNUAL REPORT

August 31, 2002

NOT FDIC INSURED * MAY LOSE VALUE * NO BANK GUARANTEE

Portfolio of Investments

August 31, 2002 (unaudited)

Principal Amount				Value
			CORPORATE BONDS--79.8%
			Aerospace & Defense--0.5%
$	700,000		Alliant Techsystems, Inc., Sr. Sub. Note, 8.50%, 5/15/2011	$	736,750
	1,744,000		Anteon Corp., Sr. Sub. Note, 12.00%, 5/15/2009		1,848,640
	775,000	1,4	Condor Systems, Inc., Sr. Sub. Note (Series B), 11.875%, 5/1/2009		174,375
			TOTAL		2,759,765
			Automotive--3.1%
	850,000		Accuride Corp., Sr. Sub. Note (Series B), 9.25%, 2/1/2008		556,750
	2,000,000		American Axle & Manufacturing, Inc., Company Guarantee, 9.75%, 3/1/2009		2,140,000
	1,400,000		Arvin Industries, Inc., Note, 7.125%, 3/15/2009		1,374,114
	600,000		ArvinMeritor, Inc., Note, 8.75%, 3/1/2012		633,378
	2,475,000		Collins & Aikman Products Co., Sr. Note, 10.75%, 12/31/2011		2,450,250
	800,000		Collins & Aikman Products Co., Sr. Sub. Note, 11.50%, 4/15/2006		760,000
	7,350,000		Lear Corp., Company Guarantee, 8.11%, 5/15/2009		7,754,250
	2,000,000		Stoneridge, Inc., Company Guarantee, 11.50%, 5/1/2012		2,060,000
			TOTAL		17,728,742
			Beverage & Tobacco--0.6%
	1,850,000		Constellation Brands, Inc., Sr. Sub. Note, 8.125%, 1/15/2012		1,905,500
	400,000		Dimon, Inc., Sr. Note, 8.875%, 6/1/2006		402,000
	950,000		Dimon, Inc., Sr. Note (Series B), 9.625%, 10/15/2011		997,500
			TOTAL		3,305,000
			Broadcast Radio & Television--2.8%
	1,750,000		ACME Television LLC, Sr. Disc. Note, 10.875%, 9/30/2004		1,723,750
	6,775,000		Chancellor Media Corp., Company Guarantee, 8.00%, 11/1/2008		6,859,687
	1,000,000		Chancellor Media Corp., Sr. Sub. Note, 8.125%, 12/15/2007		1,000,000
	1,850,000		Liberty Media Corp., Sr. Note, 7.75%, 7/15/2009		1,851,757
	1,250,000		Lin Television Corp., Company Guarantee, 8.00%, 1/15/2008		1,278,125
	1,400,000		Loral Cyberstar, Inc., Company Guarantee, 10.00%, 7/15/2006		567,000
	2,450,000	1,2	PanAmSat Corp., Sr. Note, 8.50%, 2/1/2012		2,266,250
	1,700,000		XM Satellite Radio, Inc., Sr. Note, 14.00%, 3/15/2010		629,000
			TOTAL		16,175,569
Principal Amount				Value
			CORPORATE BONDS--continued
			Building & Development--1.4%
$	1,100,000	1,2	Associated Materials, Inc., Sr. Sub. Note, 9.75%, 4/15/2012	$	1,122,000
	975,000	1,2	Collins & Aikman Floorcoverings, Inc., Sr. Sub. Note, 9.75%, 2/15/2010		979,875
	2,200,000		NCI Building System, Inc., Sr. Sub. Note (Series B), 9.25%, 5/1/2009		2,216,500
	800,000		Nortek, Inc., Sr. Note, 9.125%, 9/1/2007		808,000
	2,950,000		WCI Communities, Inc., Sr. Sub. Note, 10.625%, 2/15/2011		2,964,750
			TOTAL		8,091,125
			Business Equipment & Services--1.4%
	3,300,000		Buhrmann US, Inc., Company Guarantee, 12.25%, 11/1/2009		3,366,000
	1,375,000		Global Imaging Systems, Inc., Sr. Sub. Note, 10.75%, 2/15/2007		1,385,312
	4,200,000	1,2	Xerox Corp., Sr. Note, 9.75%, 1/15/2009		3,507,000
			TOTAL		8,258,312
			Cable Television--6.2%
	2,600,000		CSC Holdings, Inc., Sr. Note, 7.875%, 12/15/2007		2,236,000
	1,265,000		CSC Holdings, Inc., Sr. Sub. Deb., 9.875%, 2/15/2013		967,725
	1,250,000		CSC Holdings, Inc., Sr. Note, 8.125%, 7/15/2009		1,068,750
	6,925,000	3	Charter Communications Holdings Capital Corp., Discount Bond, 0/11.75%, 5/15/2011		2,804,625
	11,275,000	3	Charter Communications Holdings Capital Corp., Sr. Disc. Note, 0/13.50%, 1/15/2011		4,453,625
	4,050,000	3	Charter Communications Holdings Capital Corp., Sr. Disc. Note, 0/9.92%, 4/1/2011		2,004,750
	1,000,000		Charter Communications Holdings Capital Corp., Sr. Note, 10.00%, 5/15/2011		705,000
	7,575,000	4	Diamond Cable Communications PLC, Sr. Disc. Note, 10.75%, 2/15/2007		1,098,375
	3,375,000		Echostar Broadband Corp., Sr. Note, 10.375%, 10/1/2007		3,425,625
	1,750,000		Echostar DBS Corp., Sr. Note, 9.375%, 2/1/2009		1,750,000
	3,800,000	4	International Cabletel, Inc., Sr. Defd. Cpn. Note, 0/11.50%, 2/1/2006		437,000
	1,000,000		Lenfest Communications, Inc., Sr. Sub. Note, 10.50%, 6/15/2006		970,000
	3,750,000		Lenfest Communications, Inc., Sr. Sub. Note, 8.25%, 2/15/2008		3,618,750
	2,100,000	3,4	NTL, Inc., Sr. Disc. Note, 0/12.375%, 10/1/2008		220,500
	3,250,000	4	NTL, Inc., Sr. Note, 11.50%, 10/1/2008		373,750
	1,125,000	3	Quebecor Media Inc., Sr. Disc. Note, 0/13.75%, 7/15/2011		540,000
	1,925,000		Quebecor Media Inc., Sr. Note, 11.125%, 7/15/2011		1,665,125
	5,800,000		Rogers Cablesystems Ltd., Sr. Sub. Gtd. Note, 11.00%, 12/1/2015		5,887,000
	3,000,000		TeleWest PLC, Sr. Disc. Deb., 11.00%, 10/1/2007		405,000
Principal Amount				Value
			CORPORATE BONDS--continued
			Cable Television-continued
$	3,000,000	3	TeleWest PLC, Sr. Disc. Note, 0/9.25%, 4/15/2009	$	345,000
	1,150,000		TeleWest PLC, Sr. Note, 11.25%, 11/1/2008		155,250
	5,175,000	4	UIH Australia/Pacific, Sr. Disc. Note, 14.00%, 5/15/2006		64,688
	1,770,000	3,4	United Pan-Europe Communications NV, Sr. Disc. Note (Series B), 0/12.50%, 8/1/2009		79,650
	2,675,000	3,4	United Pan-Europe Communications NV, Sr. Disc. Note (Series B), 0/13.375%, 11/1/2009		120,375
			TOTAL		35,396,563
			Chemicals & Plastics--2.9%
	1,700,000		Compass Minerals Group, Inc., Sr. Sub. Note, 10.00%, 8/15/2011		1,768,000
	1,225,000		Equistar Chemicals LP, Sr. Note, 10.125%, 9/1/2008		1,182,125
	1,125,000	1,2	Foamex LP, Company Guarantee, 10.75%, 4/1/2009		1,046,250
	2,200,000		Foamex LP, Company Guarantee, 13.50%, 8/15/2005		2,057,000
	1,050,000		Foamex LP, Sr. Sub. Note, 9.875%, 6/15/2007		829,500
	700,000		General Chemical Industrial Products, Inc., Sr. Sub. Note, 10.625%, 5/1/2009		549,500
	2,000,000		Huntsman ICI Chemicals LLC, Sr. Sub. Note, 10.125%, 7/1/2009		1,790,000
	1,525,000		Lyondell Chemical Co., Sr. Secd. Note (Series A), 9.625%, 5/1/2007		1,517,375
	2,100,000		Lyondell Chemical Co., Sr. Secd. Note, 9.50%, 12/15/2008		2,047,500
	1,750,000		Lyondell Chemical Co., Sr. Sub. Note, (Series B), 10.875%, 5/1/2009		1,548,750
	2,900,000		Texas Petrochemicals Corp., Sr. Sub. Note, 11.125%, 7/1/2006		2,073,500
			TOTAL		16,409,500
			Clothing & Textiles--1.5%
	3,850,000	1,4	Dyersburg Corp., Sr. Sub. Note, 9.75%, 9/1/2007		19,635
	2,675,000		GFSI, Inc., Sr. Sub. Note, 9.625%, 3/1/2007		2,300,500
	4,450,000	1,4	Glenoit Corp., Sr. Sub. Note, 11.00%, 4/15/2007		44
	2,425,000		Levi Strauss & Co., Sr. Note, 11.625%, 1/15/2008		2,037,000
	1,650,000	1,2	Russell Corp., Sr. Note, 9.25%, 5/1/2010		1,707,750
	2,400,000		William Carter Co., Sr. Sub. Note (Series B), 10.875%, 8/15/2011		2,640,000
			TOTAL		8,704,929
			Conglomerates--0.6%
	4,450,000		Eagle Picher Industries, Inc., Sr. Sub. Note, 9.375%, 3/1/2008		3,493,250
Principal Amount				Value
			CORPORATE BONDS--continued
			Consumer Products--5.1%
$	3,000,000		Albecca, Inc., Company Guarantee, 10.75%, 8/15/2008	$	3,281,250
	1,225,000	1,2	Alltrista Corp., Sr. Sub. Note, 9.75%, 5/1/2012		1,194,375
	2,450,000		American Achievement Corp., Sr. Note, 11.625%, 1/1/2007		2,486,750
	1,975,000		American Greetings Corp., Sr. Sub. Note, 11.75%, 7/15/2008		2,152,750
	1,250,000		American Safety Razor Co., Sr. Note, 9.875%, 8/1/2005		1,075,000
	2,850,000		Amscan Holdings, Inc., Sr. Sub. Note, 9.875%, 12/15/2007		2,579,250
	1,000,000		Armkel Finance, Inc., Sr. Sub. Note, 9.50%, 8/15/2009		1,065,000
	1,675,000		Chattem, Inc., Sr. Sub. Note, 8.875%, 4/1/2008		1,683,375
	850,000	4	Diamond Brands Operating Corp., Sr. Sub. Note, 10.125%, 4/15/2008		21,250
	1,450,000	3,4	Diamond Brands, Inc., Sr. Disc. Deb., 0/12.875%, 4/15/2009		36,250
	1,325,000	1,2	ICON Health & Fitness, Inc., Company Guarantee, 11.25%, 4/1/2012		1,291,875
	2,325,000		Jostens, Inc., Sr. Sub. Note, 12.75%, 5/1/2010		2,627,250
	900,000	1,2	PCA International, Inc., Sr. Note, 11.875%, 8/1/2009		904,500
	2,900,000		Playtex Products, Inc., Company Guarantee, 9.375%, 6/1/2011		3,117,500
	2,250,000		Revlon Consumer Products Corp., Sr. Sub. Note, 8.625%, 2/1/2008		866,250
	950,000	1,4	Sleepmaster L.L.C., Company Guarantee (Series B), 11.00%, 5/15/2009		204,250
	1,250,000		True Temper Sports, Inc., Sr. Sub. Note (Series B), 10.875%, 12/1/2008		1,306,250
	2,400,000		United Industries Corp., Sr. Sub. Note (Series B), 9.875%, 4/1/2009		2,412,000
	1,000,000		Volume Services America, Inc., Sr. Sub. Note, 11.25%, 3/1/2009		955,000
			TOTAL		29,260,125
			Container & Glass Products--3.2%
	875,000	1,2	Berry Plastics Corp., Sr. Sub. Note, 10.75%, 7/15/2012		883,750
	900,000		Graham Packaging Co., Sr. Sub. Note, 8.75%, 1/15/2008		814,500
	1,275,000		Graham Packaging Co., Company Guarantee, 5.545%, 1/15/2008		1,026,375
	800,000	1,2	Greif Brothers Corp., Sr. Sub. Note, 8.875%, 8/1/2012		808,000
	2,300,000		Huntsman Packaging Corp. Co., Company Guarantee, 13.00%, 6/1/2010		2,323,000
	4,600,000		Owens-Illinois, Inc., Sr. Note, 7.35%, 5/15/2008		4,025,000
	725,000		Owens-Illinois, Inc., Sr. Note, 7.85%, 5/15/2004		685,125
	1,225,000		Plastipak Holdings, Sr. Note, 10.75%, 9/1/2011		1,310,750
	1,550,000		Pliant Corp., Sr. Sub. Note, 13.00%, 6/1/2010		1,565,500
	314,740	1,2	Russell Stanley Holdings, Inc., Sr. Sub. Note, 9.00%, 11/30/2008		236,842
	3,650,000		Tekni-Plex, Inc., Sr. Sub. Note, (Series B), 12.75%, 6/15/2010		3,668,250
	675,000	1,2	Tekni-Plex, Inc., Sr. Sub. Note, (Series B), 12.75%, 6/15/2010		678,375
			TOTAL		18,025,467
Principal Amount				Value
			CORPORATE BONDS--continued
			Ecological Services & Equipment--2.6%
$	4,000,000		Allied Waste North America, Inc., Company Guarantee, 7.625%, 1/1/2006	$	3,980,000
	1,400,000		Allied Waste North America, Inc., Company Guarantee (Series B), 8.50%, 12/1/2008		1,393,000
	7,625,000		Allied Waste North America, Inc., Sr. Sub. Note, 10.00%, 8/1/2009		7,548,750
	1,875,000	1,2	Synagro Technologies, Inc., Sr. Sub. Note, 9.50%, 4/1/2009		1,931,250
			TOTAL		14,853,000
			Electronics--1.4%
	1,975,000		Fairchild Semiconductor Corp., Sr. Sub. Note, 10.375%, 10/1/2007		2,073,750
	2,600,000		Ingram Micro, Inc., Sr. Sub. Note, 9.875%, 8/15/2008		2,652,000
	3,400,000	1,2	Seagate Technology HDD Holdings, Sr. Note, 8.00%, 5/15/2009		3,383,000
			TOTAL		8,108,750
			Food Products--3.3%
	2,650,000		Agrilink Foods, Inc., Company Guarantee, 11.875%, 11/1/2008		2,822,250
	1,925,000	1,2	American Seafoods Group LLC, Sr. Sub. Note, 10.125%, 4/15/2010		1,953,875
	1,225,000		B&G Foods, Inc., Company Guarantee (Series D), 9.625%, 8/1/2007		1,231,125
	2,925,000		Del Monte Corp., Company Guarantee (Series B), 9.25%, 5/15/2011		2,968,875
	3,625,000		Eagle Family Foods, Inc., Sr. Sub. Note, 8.75%, 1/15/2008		2,555,625
	2,050,000		Land O'Lakes, Inc., Sr. Note, 8.75%, 11/15/2011		1,363,250
	1,700,000		Michael Foods, Inc., Sr. Sub. Note (Series B), 11.75%, 4/1/2011		1,853,000
	1,775,000		New World Pasta Co., Sr. Sub. Note, 9.25%, 2/15/2009		1,695,125
	1,250,000		Pilgrim's Pride Corp., Sr. Note, 9.625%, 9/15/2011		1,200,000
	825,000		Smithfield Foods, Inc., Sr. Note (Series B), 8.00%, 10/15/2009		804,375
	500,000		Smithfield Foods, Inc., Sr. Sub. Note, 7.625%, 2/15/2008		467,500
			TOTAL		18,915,000
			Food Services--0.9%
	1,125,000	1,2	Buffets, Inc., Sr. Sub. Note, 11.25%, 7/15/2010		1,130,625
	3,050,000		Carrols Corp., Company Guarantee, 9.50%, 12/1/2008		3,004,250
	900,000		Domino's, Inc., Company Guarantee (Series B), 10.375%, 1/15/2009		972,000
			TOTAL		5,106,875
			Forest Products--2.2%
	4,570,000		Georgia-Pacific Corp., Note, 7.50%, 5/15/2006		4,301,512
	3,775,000		Georgia-Pacific Corp., Sr. Note, 8.125%, 5/15/2011		3,482,437
	2,925,000		Riverwood International Corp., Sr. Sub. Note, 10.875%, 4/1/2008		2,990,813
	1,525,000		Stone Container Corp., Sr. Note, 9.75%, 2/1/2011		1,608,875
			TOTAL		12,383,637
Principal Amount				Value
			CORPORATE BONDS--continued
			Gaming--5.3%
$	1,575,000		Boyd Gaming Corp., Sr. Sub. Note, 8.75%, 4/15/2012	$	1,638,000
	1,200,000		Coast Hotels & Casinos, Inc., Company Guarantee, 9.50%, 4/1/2009		1,248,000
	2,400,000		Harrah's Operations Co., Inc., Company Guarantee, 7.875%, 12/15/2005		2,520,000
	1,450,000		Isle of Capri Casinos, Inc., Company Guarantee, 9.00%, 3/15/2012		1,482,625
	4,750,000		MGM Mirage, Inc., Company Guarantee, 8.50%, 9/15/2010		4,999,375
	1,825,000		MGM Mirage, Inc., Company Guarantee, 9.75%, 6/1/2007		1,971,000
	825,000		Mandalay Resort Group, Sr. Note, 9.50%, 8/1/2008		895,125
	3,650,000		Mandalay Resort Group, Sr. Sub. Note (Series B), 10.25%, 8/1/2007		3,942,000
	875,000		Mandalay Resort Group, Sr. Sub. Note, 9.375%, 2/15/2010		918,750
	1,500,000		Park Place Entertainment Corp., Sr. Sub. Note, 7.875%, 3/15/2010		1,515,000
	3,400,000		Park Place Entertainment Corp., Sr. Sub. Note, 8.125%, 5/15/2011		3,468,000
	825,000		Park Place Entertainment Corp., Sr. Sub. Note, 9.375%, 2/15/2007		872,438
	1,025,000		Penn National Gaming, Inc., Company Guarantee (Series B), 11.125%, 3/1/2008		1,091,625
	1,350,000	1,2	Sun International Hotels Ltd., Sr. Sub. Note, 8.875%, 8/15/2011		1,360,125
	2,450,000	1,2	Venetian Casino/LV Sands, Mtg. Note, 11.00%, 6/15/2010		2,468,375
			TOTAL		30,390,438
			Health Care--6.4%
	1,425,000	1,2	Advanced Medical Optics, Inc., Sr. Sub. Note, 9.25%, 7/15/2010		1,403,625
	700,000		Alaris Medical Systems, Company Guarantee, 9.75%, 12/1/2006		705,250
	1,550,000		Alaris Medical Systems, Sr. Secd. Note (Series B), 11.625%, 12/1/2006		1,689,500
	3,300,000		Alliance Imaging, Inc., Sr. Sub. Note, 10.375%, 4/15/2011		3,531,000
	2,850,000		CONMED Corp., Sr. Sub. Note, 9.00%, 3/15/2008		2,892,750
	1,300,000	1,2	Extendicare Health Services, Inc., Sr. Note, 9.50%, 7/1/2010		1,300,000
	500,000		Fisher Scientific International, Inc., Sr. Note, 7.125%, 12/15/2005		507,500
	2,150,000		Fisher Scientific International, Inc., Sr. Sub. Note, 9.00%, 2/1/2008		2,214,500
	6,950,000		HCA - The Healthcare Corp., Sr. Note, 7.875%, 2/1/2011		7,676,483
	1,025,000		Hanger Orthopedic Group, Inc., Company Guarantee, 10.375%, 2/15/2009		1,086,500
	2,825,000		Hanger Orthopedic Group, Inc., Sr. Sub. Note, 11.25%, 6/15/2009		2,895,625
	1,200,000		Hudson Respiratory Care, Inc., Sr. Sub. Note, 9.125%, 4/15/2008		546,000
	3,450,000		Kinetic Concepts, Inc., Company Guarantee, 9.625%, 11/1/2007		3,363,750
	1,375,000	1,2	Magellan Health Services, Inc., Sr. Note, 9.375%, 11/15/2007		955,625
Principal Amount				Value
			CORPORATE BONDS--continued
			Health Care-continued
$	2,225,000		Magellan Health Services, Inc., Sr. Sub. Note, 9.00%, 2/15/2008	$	667,500
	1,200,000		Triad Hospitals, Inc., Company Guarantee (Series B), 8.75%, 5/1/2009		1,260,000
	1,500,000		US Oncology, Inc., Company Guarantee, 9.625%, 2/1/2012		1,462,500
	1,300,000		Vanguard Health Systems, Company Guarantee, 9.75%, 8/1/2011		1,335,750
	1,250,000		Ventas Realty LP, Company Guarantee, 9.00%, 5/1/2012		1,275,000
			TOTAL		36,768,858
			Hotels, Motels & Inns--4.2%
	1,100,000		Courtyard by Marriott II LP, Sr. Note, 10.75%, 2/1/2008		1,122,000
	950,000		Felcor Lodging LP, Company Guarantee, 8.50%, 6/1/2011		916,750
	600,000		Felcor Lodging LP, Company Guarantee, 9.50%, 9/15/2008		612,000
	1,425,000		Florida Panthers Holdings, Inc., Company Guarantee, 9.875%, 4/15/2009		1,460,625
	4,925,000		HMH Properties, Inc., Sr. Note (Series B), 7.875%, 8/1/2008		4,703,375
	1,925,000		Hilton Hotels Corp., Note, 7.625%, 5/15/2008		1,941,844
	1,350,000		Hilton Hotels Corp., Sr. Note, 8.25%, 2/15/2011		1,346,625
	3,000,000		ITT Corp., Unsecd. Note, 6.75%, 11/15/2005		2,913,750
	2,625,000		MeriStar Hospitality Corp., Company Guarantee, 9.125%, 1/15/2011		2,454,375
	1,350,000		RFS Partnership LP, Company Guarantee, 9.75%, 3/1/2012		1,370,250
	5,275,000	1,2	Starwood Hotels & Resorts Worldwide, Inc., Note, 7.375%, 5/1/2007		5,149,719
			TOTAL		23,991,313
			Industrial Products & Equipment--4.3%
	2,250,000		Amphenol Corp., Sr. Sub. Note, 9.875%, 5/15/2007		2,351,250
	3,400,000		Cabot Safety Acquisition Corp., Sr. Sub. Note, 12.50%, 7/15/2005		3,417,000
	2,100,000		Continental Global Group, Inc., Sr. Note, 11.00%, 4/1/2007		1,029,000
	3,600,000		Euramax International PLC, Sr. Sub. Note, 11.25%, 10/1/2006		3,690,000
	1,500,000		Hexcel Corp., Sr. Sub. Note (Series B), 9.75%, 1/15/2009		1,080,000
	512,000		Hexcel Corp., Sub. Note, 7.00%, 8/1/2003		437,760
	2,550,000		ISG Resources, Inc., Sr. Sub. Note, 10.00%, 4/15/2008		2,588,250
	3,350,000		MMI Products, Inc., Sr. Sub. Note, 11.25%, 4/15/2007		3,299,750
	2,200,000		Neenah Corp., Sr. Sub. Note, 11.125%, 5/1/2007		891,000
	2,775,000		Neenah Corp., Sr. Sub. Note, 11.125%, 5/1/2007		1,123,875
	2,350,000		Unifrax Investment Corp., Sr. Note, 10.50%, 11/1/2003		2,361,750
	2,475,000		WESCO Distribution, Inc., Sr. Sub. Note, 9.125%, 6/1/2008		2,215,125
			TOTAL		24,484,760
Principal Amount				Value
			CORPORATE BONDS--continued
			Leisure & Entertainment--1.6%
$	1,850,000		AMF Bowling Worldwide, Inc., Sr. Sub. Note, 13.00%, 2/28/2008	$	1,914,750
	5,575,000		Premier Parks, Inc., Sr. Disc. Note, 0/10.00%, 4/1/2008		4,878,125
	2,100,000		Regal Cinemas, Inc., Company Guarantee, (Series B), 9.375%, 2/1/2012		2,163,000
			TOTAL		8,955,875
			Machinery & Equipment--2.1%
	1,500,000		AGCO Corp., Sr. Note, 9.50%, 5/1/2008		1,567,500
	2,250,000		Briggs & Stratton Corp., Sr. Note, 8.875%, 3/15/2011		2,317,500
	5,525,000	1,4	Clark Material Handling Corp., Sr. Note, 10.75%, 11/15/2006		552
	2,825,000		Columbus McKinnon Corp., Sr. Sub. Note, 8.50%, 4/1/2008		2,528,375
	975,000	1,4	Simonds Industries, Inc., Sr. Sub. Note, 10.25%, 7/1/2008		298,594
	1,350,000		United Rentals, Inc., Company Guarantee, 9.25%, 1/15/2009		1,275,750
	4,050,000		United Rentals, Inc., Company Guarantee (Series B), 10.75%, 4/15/2008		4,252,500
			TOTAL		12,240,771
			Oil & Gas--3.3%
	1,150,000	1,2	Compton Petroleum Corp., Sr. Note, 9.90%, 5/15/2009		1,183,154
	3,300,000		Continental Resources, Inc., Sr. Sub. Note, 10.25%, 8/1/2008		2,821,500
	2,500,000		Dresser, Inc., Company Guarantee, 9.375%, 4/15/2011		2,450,000
	1,250,000		Forest Oil Corp., Senior Note, 8.00%, 6/15/2008		1,281,250
	1,100,000		Forest Oil Corp., Sr. Sub. Note, 10.50%, 1/15/2006		1,171,500
	1,900,000		Lone Star Technologies, Inc., Company Guarantee (Series B), 9.00%, 6/1/2011		1,795,500
	1,175,000	1,2	Magnum Hunter Resources, Inc., Sr. Note, 9.60%, 3/15/2012		1,210,250
	1,225,000		Petroleum Helicopters, Inc., Company Guarantee (Series B), 9.375%, 5/1/2009		1,249,500
	2,250,000		Pogo Producing Co., Sr. Sub. Note, 8.75%, 5/15/2007		2,295,000
	1,000,000		Swift Energy Co., Sr. Sub. Note, 9.375%, 5/1/2012		960,000
	3,400,000		Tesoro Petroleum Corp., Company Guarantee (Series B), 9.625%, 11/1/2008		2,601,000
			TOTAL		19,018,654
			Printing & Publishing--2.3%
	2,225,000		Advanstar Communications, Company Guarantee (Series B), 12.00%, 2/15/2011		1,501,875
	1,375,000	3	Advanstar, Inc., Company Guarantee (Series B), 0/15.00%, 10/15/2011		457,187
	2,250,000		American Media Operations, Inc., Company Guarantee (Series B), 10.25%, 5/1/2009		2,334,375
	1,000,000	1,2	Block Communications, Inc., Sr. Sub. Note, 9.25%, 4/15/2009		995,000
Principal Amount				Value
			CORPORATE BONDS--continued
			Printing & Publishing--continued
$	2,175,000		K-III Communications Corp., Company Guarantee, (Series B), 8.50%, 2/1/2006	$	1,783,500
	1,500,000	1,2	Vertis, Inc., Sr. Note, 10.875%, 6/15/2009		1,492,500
	1,250,000	1,2	Von Hoffmann Corp., Company Guarantee, 10.25%, 3/15/2009		1,237,500
	3,550,000	3	Yell Finance BV, Sr. Disc. Note, 0/13.50%, 8/1/2011		2,183,250
	1,000,000		Yell Finance BV, Sr. Note, 10.75%, 8/1/2011		1,010,000
	380,000		Ziff Davis Media, Inc., Company Guarantee, 12.00%, 8/12/2009		153,900
			TOTAL		13,149,087
			Retailers--1.7%
	1,400,000		Advance Stores Co., Inc., Company Guarantee, 10.25%, 4/15/2008		1,491,000
	1,900,000		Michaels Stores, Inc., Sr. Note, 9.25%, 7/1/2009		2,004,500
	1,125,000		Mothers Work, Inc., Company Guarantee, 11.25%, 8/1/2010		1,136,250
	2,575,000		Penney (J.C.) Co., Inc., Note, 7.60%, 4/1/2007		2,449,469
	1,843,000	1,2	Penney (J.C.) Co., Inc., Note, 9.00%, 8/1/2012		1,781,914
	850,000	1,2	United Auto Group, Inc., Sr. Sub. Note, 9.625%, 3/15/2012		862,750
			TOTAL		9,725,883
			Services--0.4%
	500,000		Coinmach Corp., Sr. Note, 9.00%, 2/1/2010		510,000
	2,150,000		SITEL Corp., Sr. Sub. Note, 9.25%, 3/15/2006		2,031,750
			TOTAL		2,541,750
			Steel--0.3%
	1,925,000		Ryerson Tull, Inc., Sr. Note, 9.125%, 7/15/2006		1,799,875
			Surface Transportation--1.0%
	2,875,000		Allied Holdings, Inc., Sr. Note, 8.625%, 10/1/2007		2,170,625
	4,950,000	1,4	AmeriTruck Distribution Corp., Sr. Sub. Note, 12.25%, 11/15/2005		--
	3,075,000		Stena AB, Sr. Note, 10.50%, 12/15/2005		3,151,875
	3,125,000	1,4	The Holt Group, Inc., Company Guarantee, 9.75%, 1/15/2006		109,375
			TOTAL		5,431,875
			Telecommunications & Cellular--3.9%
	1,700,000		AT&T Wireless Services, Inc., Sr. Note, 7.875%, 3/1/2011		1,432,250
	3,700,000	3	AirGate PCS, Inc., Sr. Sub. Note, 0/13.50%, 10/1/2009		943,500
	6,025,000	3	Alamosa PCS Holdings, Inc., Sr. Disc. Note, 0/12.875%, 2/15/2010		1,054,375
	2,146,091	1,2	Call-Net Enterprises, Inc., Company Guarantee, 10.625%, 12/31/2008		418,488
Principal Amount or Shares				Value
			CORPORATE BONDS--continued
			Telecommunications & Cellular--continued
$	5,100,000	4	Global Crossing Holdings Ltd., Company Guarantee, 9.50%, 11/15/2009	$	63,750
	2,100,000		Horizon PCS, Inc., Company Guarantee, 13.75%, 6/15/2011		661,500
	2,750,000		Millicom International Cellular SA, Sr. Disc. Note, 13.50%, 6/1/2006		921,250
	12,950,000		NEXTEL Communications, Inc., Sr. Note, 9.375%, 11/15/2009		10,230,500
	2,113,000	3	Nextel Partners, Inc., Sr. Disc. Note, 0/14.00%, 2/1/2009		898,025
	2,000,000		Nextel Partners, Inc., Sr. Note, 11.00%, 3/15/2010		1,170,000
	2,800,000		Rogers Cantel Mobile, Inc., Sr. Sub. Note, 8.80%, 10/1/2007		1,414,000
	1,560,000	3	Tritel PCS, Inc., Company Guarantee, 0/12.75%, 5/15/2009		1,290,900
	1,975,000	3	Triton PCS, Inc., Sr. Disc. Note, 0/11.00%, 5/1/2008		1,491,125
	500,000	4	Viatel, Inc., Sr. Note, 11.50%, 3/15/2009		3,750
	2,275,000	3,4	Viatel, Inc., Unit, 0/12.50%, 4/15/2008		17,063
	1,425,000	4	Viatel, Inc., Unit, 11.25%, 4/15/2008		10,688
			TOTAL		22,021,164
			Utilities--3.3%
	4,525,000		CMS Energy Corp., Sr. Note, 7.50%, 1/15/2009		3,552,125
	1,950,000		CMS Energy Corp., Sr. Note, 8.50%, 4/15/2011		1,530,750
	2,816,645		Caithness Coso Funding Corp., Sr. Secd. Note, (Series B), 9.05%, 12/15/2009		2,760,312
	6,625,000		Calpine Canada Energy Finance Corp., Company Guarantee, 8.50%, 5/1/2008		3,676,875
	8,400,000		Calpine Corp., Note, 8.50%, 2/15/2011		4,494,000
	175,000		Transcontinental Gas Pipe Corp., Note (Series B), 7.00%, 8/15/2011		151,375
	850,000		Williams Cos., Inc., Note, 6.50%, 8/1/2006		590,750
	1,400,000		Williams Cos., Inc., Note, 7.625%, 7/15/2019		868,000
	1,050,000		Williams Cos., Inc., Note, 7.875%, 9/1/2021		661,500
	625,000	1,2	Williams Cos., Inc., Note, 8.125%, 3/15/2012		440,625
			TOTAL		18,726,312
			TOTAL CORPORATE BONDS (IDENTIFIED COST $574,709,512)		456,222,224
			COMMON STOCKS/WARRANTS--0.3%
			Broadcast Radio & Television--0.0%
	28,120	4	Loral Space & Communications Ltd., Warrants		2,812
	2,200	4	XM Satellite Radio, Inc., Warrants		2,420
			TOTAL		5,232
Shares				Value
			COMMON STOCKS/WARRANTS--continued
			Cable Television--0.0%
	9,825	4	UIH Australia/Pacific, Warrants	$	98
			Clothing & Textiles--0.0%
	5,221	4	Pillowtex Corp.		31,509
			Consumer Products--0.0%
	2,350	4	Jostens, Inc., Warrants		68,737
			Container & Glass Products--0.0%
	1,000	4	Pliant Corp., Warrants		412
	45,000	4	Russell Stanley Holdings, Inc.		13,500
			TOTAL		13,912
			Leisure & Entertainment--0.1%
	7,921	4	AMF Bowling Worldwide, Inc.		217,828
	18,638	4	AMF Bowling Worldwide, Inc., Warrants		111,828
	18,210	4	AMF Bowling Worldwide, Inc., Warrants		91,050
			TOTAL		420,706
			Metals & Mining--0.1%
	328,070	4	Horizon Natural Resources Co.		656,140
	138,395	4	Royal Oak Mines, Inc.		1,384
			TOTAL		657,524
			Printing & Publishing--0.1%
	1,375	4	Advanstar, Inc., Warrants		14
	5,350	4	Medianews Group, Inc.		494,875
	22,000	4	Ziff Davis Media Inc., Warrants		--
			TOTAL		494,889
			Telecommunications & Cellular--0.0%
	103,137	4	Call-Net Enterprises, Inc., Class B		28,363
	63,896	4	McLeodUSA, Inc., Warrants		5,751
			TOTAL		34,114
			TOTAL COMMON STOCKS/WARRANTS (IDENTIFIED COST $23,257,210)		1,726,721
Shares				Value
			PREFERRED STOCKS--1.2%
			Broadcast Radio & Television--0.9%
	48,875		Sinclair Capital, Cumulative Pfd., $11.63	$	5,119,656
			Health Care--0.0%
	16,538		River Holding Corp., Sr. Exchangeable PIK, 11.5%		90,959
			Printing & Publishing--0.3%
	55,100		Primedia, Inc., Exchangeable Pfd. Stock, (Series G), $2.16		1,776,975
	120		Ziff Davis Media, Inc., PIK Pfd.		--
			TOTAL		1,776,975
			Telecommunications & Cellular--0.0%
	28,835		McLeodUSA, Inc., Conv. Pfd., (Series A)		66,321
			TOTAL PREFERRED STOCKS (IDENTIFIED COST $18,101,593)		7,053,911
			MUTUAL FUND--17.4%
	99,391,244		Federated Prime Value Obligations Fund, IS Shares (at net asset value)		99,391,244
			TOTAL INVESTMENTS (IDENTIFIED COST $715,459,559)5	$	564,394,100

1 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At August 31, 2002, these securities amounted to $48,092,067 which represents 8.4% of net assets. Included in these amounts, securities which have been deemed liquid amounted to $47,285,242 which represents 8.3% of net assets.

2 Denotes a restricted security that has been deemed liquid by criteria approved by the Fund's Board of Trustees.

3 Denotes a Zero Coupon bond with effective rate at time of purchase.

4 Non-income-producing security.

5 The cost of investments for Generally Accepted Accounting Principles (GAAP) is $715,459,559. Cost for federal income tax purposes is $715,607,893. The difference between cost for GAAP and cost on a tax basis is related to amortization/accretion tax elections on fixed income securities. The net unrealized depreciation of investments on a federal tax basis amounts to $151,065,459 which is comprised of $9,156,582 appreciation and $160,222,041 depreciation at August 31, 2002.

Note: The categories of investments are shown as a percentage of net assets ($571,521,694) at August 31, 2002.

The following acronym is used throughout this portfolio:

PIK --Payment in Kind

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

August 31, 2002 (unaudited)

Assets:
Total investments in securities, at value (identified cost $715,459,559)			$	564,394,100
Cash				253,763
Income receivable				11,859,082
Receivable for shares sold				71,257
TOTAL ASSETS				576,578,202
Liabilities:
Payable for investments purchased	$	1,043,451
Payable for shares redeemed		34,313
Income distribution payable		3,891,192
Accrued expenses		87,552
TOTAL LIABILITIES				5,056,508
Net assets for 106,534,898 shares outstanding			$	571,521,694
Net Assets Consist of:
Paid in capital			$	945,784,901
Net unrealized depreciation of investments				(151,065,459	)
Accumulated net realized loss on investments				(219,866,348	)
Distributions in excess of net investment income				(3,331,400	)
TOTAL NET ASSETS			$	571,521,694
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
$571,521,694 ÷ 106,534,898 shares outstanding			$	5.36

See Notes which are an integral part of the Financial Statements

Statement of Operations

August 31, 2002 (unaudited)

Investment Income:
Dividends							$	708,215
Interest								27,053,495
TOTAL INCOME								27,761,710
Expenses:
Investment adviser fee				$	2,107,606
Administrative personnel and services fee					211,323
Custodian fees					14,612
Transfer and dividend disbursing agent fees and expenses					123,337
Directors'/Trustees' fees					6,318
Auditing fees					8,912
Legal fees					1,862
Portfolio accounting fees					50,635
Shareholder services fee					702,535
Share registration costs					17,548
Printing and postage					20,699
Insurance premiums					451
Miscellaneous					3,270
TOTAL EXPENSES					3,269,108
Waivers and Reimbursement:
Waiver of investment adviser fee	$	(465,200	)
Waiver of shareholder services fee		(140,507	)
Waiver of transfer and dividend disbursing agent fees and expenses		(7,123	)
Reimbursement of investment adviser fee		(2,256	)
TOTAL WAIVERS AND REIMBURSEMENT					(615,086	)
Net expenses								2,654,022
Net investment income								25,107,688
Realized and Unrealized Loss (Gain) on Investments:
Net realized loss on investments								(59,774,342	)
Net change in unrealized appreciation of investments								21,424,030
Net realized and unrealized loss on investments								(38,350,312	)
Change in net assets resulting from operations							$	(13,242,624	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 8/31/2002			Year Ended 2/28/2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	25,107,688		$	59,413,344
Net realized loss on investments		(59,774,342	)		(100,369,121	)
Net change in unrealized appreciation/depreciation of investments		21,424,030			(7,406,568	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(13,242,624	)		(48,362,345	)
Distributions to Shareholders:
Distributions from net investment income		(25,701,589	)		(59,905,781	)
Share Transactions:
Proceeds from sale of shares		361,276,670			738,687,041
Net asset value of shares issued to shareholders in payment of distributions declared		15,241,827			38,551,716
Cost of shares redeemed		(297,611,420	)		(817,541,453	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		78,907,077			(40,302,696	)
Change in net assets		39,962,864			(148,570,822	)
Net Assets:
Beginning of period		531,558,830			680,129,652
End of period	$	571,521,694		$	531,558,830

See Notes which are an integral part of the Financial Statements

Financial Highlights

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended February 28 or 29,
	8/31/2002			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$5.81			$7.02			$8.03			$8.92			$9.73			$9.41
Income From Investment Operations:
Net investment income	0.26			0.66	1,2		0.79			0.84			0.83			0.82
Net realized and unrealized gain (loss) on investments	(0.45	)		(1.20	)1		(0.98	)		(0.89	)		(0.81	)		0.32
TOTAL FROM INVESTMENT OPERATIONS	(0.19	)		(0.54	)		(0.19	)		(0.05	)		0.02			1.14
Less Distributions:
Distributions from net investment income	(0.26	)		(0.67	)		(0.82	)		(0.84	)		(0.83	)		(0.82	)
Net Asset Value, End of Period	$5.36			$5.81			$7.02			$8.03			$8.92			$9.73
Total Return3	(3.38	)%		(7.84	)%		(2.27	)%		(0.69	)%		0.33	%		12.74	%
Ratios to Average Net Assets:
Expenses	0.94	%4		0.91	%		0.88	%		0.88	%		0.88	%		0.88	%
Net investment income	8.90	%4		10.59	%1		10.65	%		9.67	%		9.02	%		8.73	%
Expense waiver/reimbursement5	0.22	%4		0.26	%		0.26	%		0.28	%		0.26	%		0.27	%
Supplemental Data:
Net assets, end of period (000 omitted)	$571,522		$531,559			$680,130			$773,612			$1,069,840			$1,199,063
Portfolio turnover	33	%		59	%		38	%		52	%		47	%		84	%

1 Effective March 1, 2001, the Fund adopted the provisions of the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. For the year ended February 28, 2002, this change had no effect on the net investment income per share or net realized and unrealized gain (loss) on investments per share, but increased the ratio of net investment income to average net assets from 10.55% to 10.59%. Per share, ratios and supplemental data for the periods prior to February 28, 2002 have not been restated to reflect this change in presentation.

2 Per share information is based on average shares outstanding.

3 Based on net asset value, which does not reflect the sales charge or contingent deferred sales charge, if applicable.

4 Computed on an annualized basis.

5 This voluntary expense decrease is reflected in both the expense and the net investment income ratios shown above.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

August 31, 2002 (unaudited)

ORGANIZATION

Federated High Yield Trust (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The Fund's investment objective is to seek high current income by investing primarily in a professionally managed, diversified portfolio of fixed income securities. The Fund's portfolio of investment consists primarily of lower-rated corporate debt obligations. These lower-rated obligations may be more susceptible to real or perceived adverse economic conditions than investment grade bonds. These lower-rated debt obligations are regarded as predominately speculative with respect to each issuer's continuing ability to make interest and principal payments (i.e. the obligations are subject to the risk of default).

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles ("GAAP").

Investment Valuation

Listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Listed equity securities are valued at the last sale price reported on a national securities exchange. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end, regulated investment companies are valued at net asset value. Securities for which no quotation are readily available are valued at fair value as determined in good faith using methods approved by the Board of Trustees (the "Trustees").

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as brokers/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Trustees. Risks may arise from potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. All discounts/premiums are accreted/amortized for financial reporting purposes as required. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. Distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These distributions do not represent a return of capital for federal income tax purposes.

Change in Accounting Principle

Effective March 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. Prior to March 1, 2001, the Fund did not accrete discount and amortize premium on long-term debt securities. The cumulative effect of this accounting change had no impact on total net assets of the Fund, but resulted in adjustments to the financial statements as follows:

	As of 3/1/2001				For the Year Ended 2/28/2002
	Cost of Investments		Undistributed Net Investment Income		Net Investment Income	Net Unrealized Appreciation/ (Depreciation)		Net Realized Gain/Loss
Increase (decrease)	$(2,369	)	$(2,369	)	$207,850	$(548,434	)	$340,584

The Statement of Changes in Net Assets and Financial Highlights for prior periods have not been restated to reflect this change in presentation.

Federal Taxes

It is the Fund's policy to comply with the provisions of the Internal Revenue Code as amended (the "Code"), applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

At February 28, 2002, the Fund, for federal tax purposes, had a capital loss carryforward of $139,467,560, which will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2003	$  1,456,604
2008	$  9,874,031
2009	$  35,176,615
2010	$ 92,960,310

Additionally, net capital losses of $20,322,919 attributable to security transactions incurred after October 31, 2001, are treated as arising on March 1, 2002, the first day of the Fund's next taxable year.

When-Issued and Delayed Delivery Transactions

The Trust may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Trustees. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined in good faith using methods approved by the Trustees.

Additional information on each restricted security held at August 31, 2002 is as follows:

Security	Acquisition Date	Acquisition Cost
AmeriTruck Distribution Corp., Sr. Sub. Note, 12.25%, 11/15/2005	11/15/1995--10/22/1997	$4,935,278
Clark Material Handling Corp., Sr. Note, 10.75%, 11/15/2006	11/22/1996--07/21/1997	5,716,875
Condor Systems, Inc., Sr. Sub Note, Series B, 11.875%, 5/1/2009	04/08/1999	775,000
Dyersburg Corp, Sr. Sub. Note, 9.75%, 9/1/2007	08/20/1997--11/12/1997	3,893,500
Glenoit Corp., Sr. Note, 11.00%, 4/15/2007	03/26/1997--08/19/1997	4,646,903
The Holt Group, Inc., Company Guarantee, 9.75%, 1/15/2006	01/14/1998--03/13/1998	3,170,688

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

SHARES OF BENEFICIAL INTEREST

The Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Transactions in capital stock were as follows:

	Six Months Ended 8/31/2002		Year Ended 2/28/2002
Shares sold	63,837,589		119,542,698
Shares issued to shareholders in payment of distributions declared	2,659,887		6,237,987
Shares redeemed	(51,505,830	)	(131,141,734	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	14,991,646		(5,361,049	)

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.75% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund may invest in Prime Value Obligations Fund, which is managed by the Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.150% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type and number of accounts and transactions made by shareholders. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

General

Certain of the Officers and Trustees of the Fund are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the six months ended August 31, 2002, were as follows:

Purchases	$184,563,741
Sales	$166,500,996

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholde rs in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-341-7400.

Federated
World-Class Investment Manager
Federated High Yield Trust
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com
Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact
Federated Securities Corp., Distributor

Cusip 314197104

8092705 (10/02)