N-CSRS 1 d556559dncsrs.htm CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC. Credit Suisse Asset Management Income Fund, Inc.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File No. 811-05012

 

 

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

One Madison Avenue, New York, New York 10010

(Address of Principal Executive Offices) (Zip Code)

 

 

John G. Popp

Credit Suisse Asset Management Income Fund, Inc.

One Madison Avenue

New York, New York 10010

 

 

Registrant’s telephone number, including area code: (212) 325-2000

Date of fiscal year end: December 31

Date of reporting period: January 1, 2018 to June 30, 2018

 

 

 


Item 1. Reports to Stockholders.

 


Credit Suisse Asset Management

Income Fund, Inc.

One Madison Avenue

New York, NY 10010

 

 

Directors

Steven N. Rappaport

Chairman of the Board

Terry Fires Bovarnick

James J. Cattano

Laura A. DeFelice

Lawrence J. Fox

Jeffrey E. Garten

Mahendra R. Gupta

John G. Popp

 

 

Officers

John G. Popp

Chief Executive Officer and President

Thomas J. Flannery

Chief Investment Officer

Emidio Morizio

Chief Compliance Officer

Lou Anne McInnis

Chief Legal Officer

Laurie Pecha

Chief Financial Officer and Treasurer

Karen Regan

Senior Vice President and Secretary

 

 

Investment Adviser

Credit Suisse Asset Management, LLC

One Madison Avenue

New York, NY 10010

 

 

Administrator and Custodian

State Street Bank and Trust Co.

One Lincoln Street

Boston, MA 02111

 

 

Shareholder Servicing Agent

Computershare Trust Company, N.A.

P.O. Box 30170

College Station, TX 77842-3170

 

 

Legal Counsel

Willkie Farr & Gallagher LLP

787 7th Avenue

New York, NY 10019

 

 

Independent Registered Public Accounting Firm

KPMG LLP

345 Park Avenue

New York, NY 10154

 

 

 

 

 

Credit Suisse Asset Management

Income Fund, Inc.

 

 

 

SEMIANNUAL REPORT

June 30, 2018

(unaudited)

 


Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser’s Report

June 30, 2018 (unaudited)

 

 

July 13, 2018

Dear Shareholder:

We are pleased to present this Semiannual Report covering the activities of the Credit Suisse Asset Management Income Fund, Inc. (the “Fund”) for the six-month period ended June 30, 2018.

Performance Summary

01/01/18 – 6/30/18

 

Fund & Benchmark    Performance  

Total Return (based on net asset value (“NAV”))1

     0.66

Total Return (based on market value)1

     -0.56

ICE BofAML US High Yield Constrained Index2

     0.08

Market Review: Mixed Technicals and Rate Pressure Lead to Slightly Positive Returns

The six-month period ended June 30, 2018 was marginally positive for the high yield asset class, with the ICE BofAML US High Yield Constrained Index (the “Index”), the Fund’s benchmark, returning 0.08%. Yields widened throughout the period to end at 6.53%—69 basis points wider than the previous period ended December 31, 2017. This was likely due to US Treasury weakness, as spreads ended the semiannual period at +383 basis points, only 10 basis points wider than on December 31, 2017.

In the first quarter of 2018, the high yield asset class exhibited negative returns, as increasing US Treasury rates and fund outflows weighed on the market. In addition, although total returns in the second quarter were positive, price returns were negative due to increasing inflation concerns, volatile US Treasury bond yields and trade tensions. Those pressures were slightly offset by favorable market technicals driven by slower issuance activity.

From a ratings perspective, CCC-rated and B-rated bonds outperformed, returning 3.12% and 1.05%, respectively, while BB-rated bonds significantly underperformed, delivering -1.77%.

From an industry perspective, telecommunications (+2.46%), healthcare (+1.86%) and transportation (+1.45%) were the best performing sectors for the period. In contrast, automotive (-5.68%) and banking (-4.10%) were the worst performers.

Default activity, as measured by JP Morgan, ended the period at 2.06%—which is 60 basis points higher than year-end 2017. However, default rates continue to hover below historical averages—a trend we expect to continue—especially given that JPMorgan is maintaining its 2018 default rate expectation at 2.5%.

Technical conditions improved in the latter half of the period and resulted in slightly positive overall returns for the asset class. This is due in part to a limited supply—high-yield new-issue activity totaled $126.3 billion year to date or $45.2 billion excluding refinancings—both figures are down 28% compared to the same period last year.

Strategic Review and Outlook: Expecting Continued Stability

For the six-month period ended June 30, 2018, the Fund outperformed its benchmark on a net asset value basis. The outperformance was largely due to positive allocation to the leveraged loan asset class, as well as positive selection within the high yield asset class.

From a sector perspective, positive security selection in basic industry—specifically within the chemicals, auto parts & equipment and building materials sectors—provided the greatest contribution to relative returns. Positive

 

1


Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser’s Report (continued)

June 30, 2018 (unaudited)

 

 

selection in energy and technology & electronics also contributed to returns. In contrast, holdings across various telecommunications subsectors detracted from relative returns. From a ratings perspective, an underweight to BB-rated bonds helped overall performance, while security selection in B-rated and the lowest end of the rating spectrum detracted from relative returns.

Despite global trade tensions and other geopolitical headlines, most risk asset classes have posted gains in the first half of 2018. In our opinion, the United States economy remains healthy—unemployment is declining, and corporate earnings are exhibiting positive trends. We remain positive on underlying market fundamentals and believe near-term default rates will remain relatively unchanged outside of certain specific sectors.

The Fund is currently positioned with underweights in certain sectors of the high yield market, including energy, telecommunications and healthcare. The energy sector has a high weighting in the Index (approximately 15%) and we have maintained an underweight given the Index’s material exposure to one commodity’s trading price. Our underweights to the telecommunications and healthcare sectors (approximately 9% and 10% of the Index, respectively) have been driven by secular concerns regarding legacy wireline companies and pressures on portions of the healthcare provider sector, respectively.

The US Federal Reserve has been increasing the Federal Funds rate at a measured pace and recent commentary is supportive of at least two more hikes in 2018. We saw evidence of rate volatility during the period and believe the long end of the Treasury curve could be sensitive to additional fluctuations. As such, we have continued to maintain a shorter duration relative to the Index with a focus on less rate-sensitive bonds.

 

LOGO    LOGO

Thomas J. Flannery

Chief Investment Officer*

  

John G. Popp

Chief Executive Officer and President**

High yield bonds are lower-quality bonds that are also known as “junk bonds.” Such bonds entail greater risks than those found in higher-rated securities.

In addition to historical information, this report contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments, and government regulation, and their potential impact on the Fund’s investments. These statements are subject to risks and uncertainties and actual trends, developments and regulations in the future, and their impact on the Fund, could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.

The views of the Fund’s management are as of the date of this letter and the Fund holdings described in this document are as of June 30, 2018; these views and Fund holdings may have changed subsequent to these dates. Nothing in this document is a recommendation to purchase or sell securities.

 

 

1

Assuming reinvestment of dividends of $0.132 per share.

2 

The ICE BofAML US High Yield Constrained Index (the “Index”) is an unmanaged index that tracks the performance of below investment-grade U.S. dollar-denominated corporate bonds issued in the U.S. domestic market, where each issuer’s allocation is limited to 2% of the Index. The Index does not have transaction costs and investors cannot invest directly in the Index. The Index was previously known as The BofA Merrill Lynch US High Yield Master II Constrained Index.

 

2


Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser’s Report (continued)

June 30, 2018 (unaudited)

 

 

*

Thomas J. Flannery, Managing Director, is the Head of the Credit Suisse U.S. High Yield Management Team. Mr. Flannery joined Credit Suisse Asset Management, LLC (“Credit Suisse”) in June 2010. He is a portfolio manager for the Credit Investments Group (“CIG”) with responsibility for trading, directing investment decisions, originating and analyzing investment opportunities. Mr. Flannery is also a member of the CIG Credit Committee and is currently a high yield bond portfolio manager and trader for CIG. Mr. Flannery joined Credit Suisse AG in 2000 from First Dominion Capital, LLC where he was an Associate. Mr. Flannery holds a B.S. in Finance from Georgetown University.

**

John G. Popp is a Managing Director of Credit Suisse and Group Head and Chief Investment Officer of CIG, with primary responsibility for making investment decisions and monitoring processes for CIG’s global investment strategies. Mr. Popp also serves as Trustee, Chief Executive Officer and President of the Credit Suisse Funds, as well as serving as Director, Chief Executive Officer and President for the Credit Suisse Asset Management Income Fund, Inc. and Trustee, Chief Executive Officer and President of the Credit Suisse High Yield Bond Fund. Mr. Popp has been associated with Credit Suisse since 1997.

 

3


Credit Suisse Asset Management Income Fund, Inc.

Semiannual Investment Adviser’s Report (continued)

June 30, 2018 (unaudited)

 

 

Credit Quality Breakdown*

(% of Total Investments as of June 30, 2018)

 

S&P Ratings**

 

BBB

     1.5

BB

     33.0  

B

     40.0  

CCC

     19.4  

CC

     0.9  

NR

     2.0  
  

 

 

 

Subtotal

     96.8  

Equity and Other

     1.0  

Short-Term Investments1

     2.2  
  

 

 

 

Total

     100.0
  

 

 

 

 

*

Expressed as a percentage of total investments (excluding securities lending collateral, if applicable) and may vary over time.

**

Credit Quality is based on ratings provided by the Standard & Poor’s Division of The McGraw-Hill Companies, Inc. (“S&P”). S&P is a main provider of ratings for Credit Asset Classes and is widely used amongst industry participants. The NR category consists of securities that have not been rated by S&P.

1

Primarily reflects cash invested in State Street Bank and Trust Co. Euro Time Deposit, for which the purchases of securities have been executed but not yet settled at June 30, 2018, if applicable.

Average Annual Returns

June 30, 2018 (unaudited)

 

 

       1 Year        3 Years        5 Years        10 Years  

Net Asset Value (NAV)

       4.71%          7.16%          6.71%          8.79%  

Market Value

       1.59%          8.43%          4.62%          9.09%  

Credit Suisse may waive fees and/or reimburse expenses, without which performance would be lower. Waivers and/or reimbursements are subject to change and may be discontinued at any time. Returns represent past performance. Total investment return at net asset value is based on the change in the net asset value of Fund shares and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment program. Total investment return at market value is based on the change in the market price at which the Fund’s shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment program. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on NAV and share price. Past performance is no guarantee of future results. The current performance of the Fund may be lower or higher than the figures shown. The Fund’s yield, return, NAV and market price will fluctuate. Performance information current to the most recent month end is available by calling 1-800-293-1232.

The annualized gross and net expense ratios are 1.72%.

 

4


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (111.8%)

           
 

Air Transportation (0.3%)

           
$ 550    

United Continental Holdings, Inc., Company Guaranteed Notes

   (BB, Ba3)      02/01/24        5.000      $ 532,125  
             

 

 

 
 

Auto Parts & Equipment (1.8%)

           
  1,300    

Cooper-Standard Automotive, Inc., Rule 144A, Company Guaranteed Notes
(Callable 11/15/21 @ 102.81)(1)

   (B+, B1)      11/15/26        5.625        1,287,000  
  2,000    

IHO Verwaltungs GmbH, Rule 144A, Senior Secured Notes
(Callable 09/15/21 @ 102.38)(1)

   (BB-, Ba1)      09/15/26        4.750        1,887,500  
             

 

 

 
                3,174,500  
             

 

 

 
 

Brokerage (2.4%)

           
  600    

Jefferies Finance LLC, Rule 144A, Senior Unsecured Notes
(Callable 07/30/18 @ 103.44)(1)

   (B, B1)      04/15/22        6.875        601,500  
  1,450    

Jefferies Finance LLC, Rule 144A, Senior Unsecured Notes
(Callable 07/30/18 @ 103.75)(1)

   (B, B1)      04/15/21        7.500        1,479,000  
  2,375    

LPL Holdings, Inc., Rule 144A, Company Guaranteed Notes
(Callable 03/15/20 @ 104.31)(1)

   (B+, B2)      09/15/25        5.750        2,315,625  
             

 

 

 
                4,396,125  
             

 

 

 
 

Building & Construction (0.8%)

           
  1,500    

TopBuild Corp., Rule 144A, Company Guaranteed Notes
(Callable 05/01/21 @ 102.81)(1)

   (BB-, B1)      05/01/26        5.625        1,443,750  
             

 

 

 
 

Building Materials (9.1%)

           
  1,000    

American Builders & Contractors Supply Co., Inc., Rule 144A, Company Guaranteed Notes
(Callable 05/15/21 @ 102.94)(1)

   (B+, B3)      05/15/26        5.875        988,750  
  550    

American Builders & Contractors Supply Co., Inc., Rule 144A, Senior Unsecured Notes
(Callable 12/15/18 @ 104.31)(1)

   (B+, B3)      12/15/23        5.750        565,125  
  1,000    

American Woodmark Corp., Rule 144A, Company Guaranteed Notes
(Callable 03/15/21 @ 102.44)(1)

   (BB, Ba3)      03/15/26        4.875        950,000  
  1,825    

Beacon Roofing Supply, Inc., Rule 144A, Company Guaranteed Notes
(Callable 11/01/20 @ 102.44)(1)

   (B+, B3)      11/01/25        4.875        1,687,030  
  325    

Core & Main LP, Rule 144A, Senior Unsecured Notes
(Callable 08/15/20 @ 103.06)(1)

   (B-, Caa1)      08/15/25        6.125        309,563  
  2,060    

FBM Finance, Inc., Rule 144A, Senior Secured Notes
(Callable 08/15/18 @ 104.13)(1)

   (B+, B3)      08/15/21        8.250        2,155,275  
  250    

James Hardie International Finance DAC, Rule 144A, Senior Unsecured Notes
(Callable 01/15/21 @ 102.38)(1)

   (BB, Ba1)      01/15/25        4.750        245,000  
  1,250    

James Hardie International Finance DAC, Rule 144A, Senior Unsecured Notes
(Callable 01/15/23 @ 102.50)(1)

   (BB, Ba1)      01/15/28        5.000        1,187,500  
  525    

Jeld-Wen, Inc., Rule 144A, Company Guaranteed Notes
(Callable 12/15/20 @ 102.31)(1)

   (BB-, B1)      12/15/25        4.625        501,375  
  500    

Jeld-Wen, Inc., Rule 144A, Company Guaranteed Notes
(Callable 12/15/22 @ 102.44)(1)

   (BB-, B1)      12/15/27        4.875        466,250  
  2,350    

Omnimax International, Inc., Rule 144A, Senior Secured Notes
(Callable 07/16/18 @ 109.00)(1)

   (B-, Caa1)      08/15/20        12.000        2,479,250  

 

See Accompanying Notes to Financial Statements.

 

5


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Building Materials

           
$ 2,450    

PriSo Acquisition Corp., Rule 144A, Senior Unsecured Notes
(Callable 07/30/18 @ 104.50)(1)

   (CCC+, Caa1)      05/15/23        9.000      $ 2,566,375  
  500    

Summit Materials Finance Corp., Global Company Guaranteed Notes
(Callable 04/15/19 @ 104.25)

   (BB, B3)      04/15/22        8.500        538,175  
  500    

Summit Materials Finance Corp., Global Company Guaranteed Notes
(Callable 07/16/18 @ 103.06)

   (BB, B3)      07/15/23        6.125        510,000  
  475    

U.S. Concrete, Inc., Global Company Guaranteed Notes
(Callable 06/01/19 @ 104.78)

   (BB-, B3)      06/01/24        6.375        478,562  
  800    

USG Corp., Rule 144A, Company Guaranteed Notes
(Callable 06/01/22 @ 102.44)(1)

   (BB+, Ba1)      06/01/27        4.875        820,000  
             

 

 

 
                16,448,230  
             

 

 

 
 

Cable & Satellite TV (9.5%)

           
  1,250    

Altice Financing S.A., Rule 144A, Senior Secured Notes
(Callable 05/15/21 @ 103.75)(1)

   (B+, B1)      05/15/26        7.500        1,212,125  
  825    

Altice Financing S.A., Rule 144A, Senior Secured Notes
(Callable 07/30/18 @ 104.97)(1)

   (B+, B1)      02/15/23        6.625        815,100  
  550    

Altice France S.A., Rule 144A, Senior Secured Notes
(Callable 05/01/21 @ 103.69)(1)

   (B, B1)      05/01/26        7.375        539,798  
  1,200    

Altice France S.A., Rule 144A, Senior Secured Notes
(Callable 05/15/19 @ 103.13)(1)

   (B, B1)      05/15/24        6.250        1,170,000  
  700    

Altice France S.A., Rule 144A, Senior Secured Notes (Callable 07/30/18 @ 103.00)(1)

   (B, B1)      05/15/22        6.000        703,360  
  500    

Altice U.S. Finance I Corp., Rule 144A, Senior Secured Notes
(Callable 05/15/21 @ 102.75)(1)

   (BB, Ba3)      05/15/26        5.500        483,750  
  1,200    

Altice U.S. Finance I Corp., Rule 144A, Senior Secured Notes
(Callable 07/15/18 @ 104.03)(1)

   (BB, Ba3)      07/15/23        5.375        1,197,000  
  1,850    

Block Communications, Inc., Rule 144A, Senior Unsecured Notes
(Callable 02/15/20 @ 103.44)(1)

   (BB-, Ba3)      02/15/25        6.875        1,854,625  
  685    

CSC Holdings LLC, Global Senior Unsecured Notes

   (B-, B2)      06/01/24        5.250        649,037  
  850    

CSC Holdings LLC, Rule 144A, Company Guaranteed Notes
(Callable 02/01/23 @ 102.69)(1)

   (BB-, Ba2)      02/01/28        5.375        788,375  
  50    

CSC Holdings LLC, Rule 144A, Company Guaranteed Notes
(Callable 04/15/22 @ 102.75)(1)

   (BB-, Ba2)      04/15/27        5.500        47,875  
  400    

CSC Holdings LLC, Rule 144A, Company Guaranteed Notes
(Callable 10/15/20 @ 103.31)(1)

   (BB-, Ba2)      10/15/25        6.625        410,500  
  335    

CSC Holdings LLC, Rule 144A, Senior Unsecured Notes
(Callable 10/15/20 @ 105.44)(1)

   (B-, B2)      10/15/25        10.875        387,026  
  2,350    

Midcontinent Finance Corp., Rule 144A, Company Guaranteed Notes
(Callable 08/15/18 @ 105.16)(1)

   (B, B3)      08/15/23        6.875        2,470,437  
  1,000    

Radiate Holdco LLC, Rule 144A, Senior Unsecured Notes
(Callable 02/15/20 @ 103.44)(1)

   (CCC+, Caa1)      02/15/23        6.875        965,000  
  1,800    

Telenet Finance Luxembourg Notes Sarl, Rule 144A, Senior Secured Notes
(Callable 12/01/22 @ 102.75)(1)

   (BB-, Ba3)      03/01/28        5.500        1,647,000  
  500    

Virgin Media Secured Finance PLC, Rule 144A, Senior Secured Notes
(Callable 04/15/22 @ 102.50)(1),(2)

   (BB-, Ba3)      04/15/27        5.000        646,169  

 

See Accompanying Notes to Financial Statements.

 

6


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Cable & Satellite TV

           
$ 1,350    

Ziggo B.V., Rule 144A, Senior Secured Notes (Callable 01/15/22 @ 102.75)(1)

   (BB-, B1)      01/15/27        5.500      $ 1,264,410  
             

 

 

 
                17,251,587  
             

 

 

 
 

Chemicals (5.4%)

           
  1,225    

A Schulman, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 105.16)

   (B, B3)      06/01/23        6.875        1,294,519  
  1,700    

Alpha 2 B.V., 8.75% Cash, 9.50% PIK, Rule 144A, Senior Unsecured Notes
(Callable 06/01/19 @ 102.00)(1),(3)

   (CCC+, Caa1)      06/01/23        18.250        1,697,875  
  500    

GCP Applied Technologies, Inc. Rule 144A, Company Guaranteed Notes
(Callable 04/15/21 @ 102.75)(1)

   (BB, B1)      04/15/26        5.500        491,875  
  1,100    

Ingevity Corp., Rule 144A, Senior Unsecured Notes
(Callable 02/01/21 @ 102.25)(1)

   (NR, Ba3)      02/01/26        4.500        1,039,500  
  1,000    

Nufarm Australia Ltd., Rule 144A, Company Guaranteed Notes
(Callable 04/30/21 @ 102.88)(1)

   (BB-, B1)      04/30/26        5.750        971,250  
  500    

PQ Corp., Rule 144A, Senior Secured Notes (Callable 05/15/19 @ 103.38)(1)

   (BB-, B2)      11/15/22        6.750        526,875  
  276    

Reichhold Industries, Inc., Rule 144A, Senior Secured Notes(1),(4),(5),(6),(7)

   (NR, NR)      05/01/18        9.000        9,946  
  1,000    

Trinseo Materials Finance, Inc., Rule 144A, Company Guaranteed Notes
(Callable 09/01/20 @ 102.69)(1)

   (BB-, B2)      09/01/25        5.375        993,750  
  1,500    

Tronox, Inc., Rule 144A, Company Guaranteed Notes
(Callable 04/15/21 @ 103.25)(1)

   (B-, B3)      04/15/26        6.500        1,494,375  
  1,000    

Venator Materials LLC, Rule 144A, Company Guaranteed Notes
(Callable 07/15/20 @ 104.31)(1)

   (BB-, B2)      07/15/25        5.750        960,000  
  325    

Versum Materials, Inc., Rule 144A, Company Guaranteed Notes
(Callable 09/30/21 @ 102.75)(1)

   (BB+, Ba3)      09/30/24        5.500        330,330  
             

 

 

 
                9,810,295  
             

 

 

 
 

Consumer/Commercial/Lease Financing (1.6%)

           
  2,500    

Infinity Acquisition Finance Corp., Rule 144A, Senior Unsecured Notes
(Callable 07/16/18 @ 103.63)(1)

   (CCC+, Caa2)      08/01/22        7.250        2,555,125  
  375    

Lincoln Finance Ltd., Rule 144A, Senior Secured Notes
(Callable 07/10/18 @ 103.69)(1)

   (BB+, B1)      04/15/21        7.375        388,547  
             

 

 

 
                2,943,672  
             

 

 

 
 

Diversified Capital Goods (0.8%)

           
  900    

Anixter, Inc., Global Company Guaranteed Notes

   (BB, Ba3)      03/01/23        5.500        931,500  
  470    

EnerSys, Rule 144A, Company Guaranteed Notes
(Callable 01/30/23 @ 100.00)(1)

   (BB+, Ba2)      04/30/23        5.000        469,413  
             

 

 

 
                1,400,913  
             

 

 

 
 

Electronics (2.1%)

           
  1,750    

Entegris, Inc., Rule 144A, Company Guaranteed Notes
(Callable 11/10/20 @ 103.47)(1)

   (BB-, Ba3)      02/10/26        4.625        1,675,625  
  675    

NXP Funding LLC, Rule 144A, Company Guaranteed Notes(1)

   (BBB-, Ba1)      06/01/23        4.625        682,594  
  1,500    

Sensata Technologies B.V., Rule 144A, Company Guaranteed Notes(1)

   (BB+, Ba3)      10/01/25        5.000        1,518,750  
             

 

 

 
                3,876,969  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

7


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Energy - Exploration & Production (2.0%)

           
$ 825    

Aker BP ASA, Rule 144A, Senior Unsecured Notes
(Callable 03/31/21 @ 102.94)(1)

   (BB+, Ba2)      03/31/25        5.875      $ 852,638  
  600    

Jagged Peak Energy LLC, Rule 144A, Company Guaranteed Notes
(Callable 05/01/21 @ 102.94)(1)

   (B, B3)      05/01/26        5.875        589,500  
  932    

Talos Production Finance, Inc., Rule 144A, Secured Notes
(Callable 05/10/19 @ 105.50)(1)

   (NR, NR)      04/03/22        11.000        981,177  
  1,124    

W&T Offshore, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 100.00)

   (CC, Ca)      06/15/19        8.500        1,115,570  
             

 

 

 
                3,538,885  
             

 

 

 
 

Food - Wholesale (1.9%)

           
  1,300    

B&G Foods, Inc., Company Guaranteed Notes
(Callable 04/01/20 @ 103.94)(8)

   (B+, B2)      04/01/25        5.250        1,228,500  
  1,160    

Clearwater Seafoods, Inc., Rule 144A, Senior Unsecured Notes
(Callable 05/01/20 @ 105.16)(1)

   (B+, B3)      05/01/25        6.875        1,116,500  
  400    

Lamb Weston Holdings, Inc., Rule 144A, Company Guaranteed Notes
(Callable 11/01/21 @ 102.44)(1)

   (BB, Ba3)      11/01/26        4.875        390,000  
  700    

U.S. Foods, Inc., Rule 144A, Company Guaranteed Notes
(Callable 06/15/19 @ 102.94)(1)

   (BB, B2)      06/15/24        5.875        715,750  
             

 

 

 
                3,450,750  
             

 

 

 
 

Gaming (3.0%)

           
  500    

Boyd Gaming Corp., Rule 144A, Company Guaranteed Notes
(Callable 08/15/21 @ 103.00)(1)

   (B, B3)      08/15/26        6.000        497,500  
  1,750    

Churchill Downs, Inc., Rule 144A, Company Guaranteed Notes
(Callable 01/15/23 @ 102.38)(1)

   (B+, B2)      01/15/28        4.750        1,627,500  
  1,683    

Gateway Casinos & Entertainment Ltd., Rule 144A, Secured Notes
(Callable 03/01/20 @ 104.13)(1)

   (CCC+, Caa1)      03/01/24        8.250        1,779,772  
  1,469    

Jacobs Entertainment, Inc., Rule 144A, Secured Notes
(Callable 02/01/20 @ 105.91)(1)

   (B, B2)      02/01/24        7.875        1,538,778  
             

 

 

 
                5,443,550  
             

 

 

 
 

Gas Distribution (3.3%)

           
  1,450    

CNX Midstream Finance Corp., Rule 144A, Senior Unsecured Notes
(Callable 03/15/21 @ 104.88)(1)

   (BB-, B3)      03/15/26        6.500        1,413,750  
  1,500    

Energy Transfer Equity LP, Senior Secured Notes

   (BB-, Ba2)      10/15/20        7.500        1,603,125  
  750    

Genesis Energy Finance Corp., Company Guaranteed Notes
(Callable 02/15/21 @ 104.69)

   (BB-, B1)      05/15/26        6.250        708,750  
  750    

Genesis Energy Finance Corp., Company Guaranteed Notes
(Callable 06/15/19 @ 102.81)

   (BB-, B1)      06/15/24        5.625        705,000  
  164    

Genesis Energy Finance Corp., Company Guaranteed Notes
(Callable 07/30/18 @ 104.50)

   (BB-, B1)      05/15/23        6.000        161,745  
  425    

Genesis Energy Finance Corp., Company Guaranteed Notes
(Callable 10/01/20 @ 104.88)

   (BB-, B1)      10/01/25        6.500        410,125  
  1,000    

Holly Energy Finance Corp., Rule 144A, Company Guaranteed Notes
(Callable 08/01/19 @ 104.50)(1)

   (BB, B2)      08/01/24        6.000        1,015,000  
             

 

 

 
                6,017,495  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

8


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Health Facilities (1.3%)

           
$ 1,000    

HCA, Inc., Senior Secured Notes

   (BBB-, Ba1)      03/15/24        5.000      $ 1,002,500  
  200    

MPT Finance Corp., Global Company Guaranteed Notes
(Callable 05/01/19 @ 102.75)

   (BBB-, Ba1)      05/01/24        5.500        203,500  
  1,263    

Sabra Health Care LP, Global Company Guaranteed Notes
(Callable 05/15/26 @ 100.00)

   (BBB-, Ba1)      08/15/26        5.125        1,208,795  
             

 

 

 
                2,414,795  
             

 

 

 
 

Health Services (2.1%)

           
  1,250    

AMN Healthcare, Inc., Rule 144A, Company Guaranteed Notes
(Callable 10/01/19 @ 103.84)(1)

   (B+, Ba2)      10/01/24        5.125        1,215,625  
  1,425    

CareTrust Capital Corp., Company Guaranteed Notes
(Callable 06/01/20 @ 103.94)

   (BB, Ba3)      06/01/25        5.250        1,378,687  
  1,200    

Sotera Health Holdings LLC, Rule 144A, Senior Unsecured Notes
(Callable 07/30/18 @ 104.88)(1)

   (CCC+, Caa1)      05/15/23        6.500        1,227,000  
             

 

 

 
                3,821,312  
             

 

 

 
 

Hotels (1.1%)

           
  2,100    

ESH Hospitality, Inc., Rule 144A, Company Guaranteed Notes
(Callable 05/01/20 @ 102.63)(1)

   (BB-, B1)      05/01/25        5.250        2,031,750  
             

 

 

 
 

Insurance Brokerage (3.3%)

           
  2,000    

Acrisure Finance, Inc., Rule 144A, Senior Unsecured Notes
(Callable 11/15/20 @ 103.50)(1)

   (CCC+, Caa2)      11/15/25        7.000        1,825,000  
  710    

Alliant Holdings Co-Issuer, Rule 144A, Senior Unsecured Notes
(Callable 08/01/18 @ 104.13)(1)

   (CCC+, Caa2)      08/01/23        8.250        734,761  
  1,500    

HUB International Ltd., Rule 144A, Senior Unsecured Notes
(Callable 05/01/21 @ 103.50)(1)

   (CCC+, Caa2)      05/01/26        7.000        1,485,000  
  1,950    

NFP Corp., Rule 144A, Senior Unsecured Notes
(Callable 07/15/20 @ 103.44)(1)

   (CCC+, Caa2)      07/15/25        6.875        1,920,750  
             

 

 

 
                5,965,511  
             

 

 

 
 

Investments & Misc. Financial Services (2.5%)

           
  2,300    

Compass Group Diversified Holdings LLC, Rule 144A, Senior Unsecured Notes
(Callable 05/01/21 @ 104.00)(1)

   (B-, B3)      05/01/26        8.000        2,254,000  
  2,125    

Orchestra Co-Issuer, Inc., Rule 144A, Secured Notes
(Callable 06/15/19 @ 103.38)(1)

   (B-, B1)      06/15/22        6.750        2,199,396  
             

 

 

 
                4,453,396  
             

 

 

 
 

Machinery (1.0%)

           
  1,000    

Itron, Inc., Rule 144A, Company Guaranteed Notes
(Callable 01/15/21 @ 102.50)(1)

   (BB-, B2)      01/15/26        5.000        952,200  
  775    

Terex Corp., Rule 144A, Company Guaranteed Notes
(Callable 02/01/20 @ 104.22)(1)

   (BB, B2)      02/01/25        5.625        772,094  
             

 

 

 
                1,724,294  
             

 

 

 
 

Media - Diversified (0.3%)

           
  550    

National CineMedia LLC, Global Senior Unsecured Notes
(Callable 08/15/21 @ 102.88)

   (B-, B3)      08/15/26        5.750        504,625  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

9


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Media Content (2.3%)

           
$ 1,550    

EMI Music Publishing Group North America Holdings, Inc., Rule 144A, Company Guaranteed Notes (Callable 06/15/19 @ 105.72)(1)

   (B, B3)      06/15/24        7.625      $ 1,681,207  
  1,200    

Netflix, Inc., Rule 144A, Senior Unsecured Notes(1)

   (B+, Ba3)      11/15/28        5.875        1,217,640  
  325    

The EW Scripps Co., Rule 144A, Company Guaranteed Notes
(Callable 05/15/20 @ 103.84)(1)

   (BB-, B1)      05/15/25        5.125        305,500  
  905    

WMG Acquisition Corp., Rule 144A, Senior Secured Notes
(Callable 08/01/19 @ 102.50)(1)

   (B+, Ba3)      08/01/23        5.000        903,869  
             

 

 

 
                4,108,216  
             

 

 

 
 

Medical Products (0.4%)

           
  625    

Sotera Health Topco, Inc., 8.125% Cash, 8.875% PIK, Rule 144A, Senior Unsecured Notes (Callable 07/30/18 @ 102.00)(1),(3)

   (CCC+, Caa2)      11/01/21        17.000        628,125  
             

 

 

 
 

Metals & Mining - Excluding Steel (4.3%)

           
  1,550    

Cleveland-Cliffs, Inc., Rule 144A, Senior Secured Notes
(Callable 01/15/21 @ 102.44)(1)

   (BB-, Ba3)      01/15/24        4.875        1,499,625  
  2,000    

Eldorado Gold Corp., Rule 144A, Company Guaranteed Notes
(Callable 07/30/18 @ 101.53)(1)

   (B, B2)      12/15/20        6.125        1,935,000  
  1,500    

First Quantum Minerals Ltd., Rule 144A, Company Guaranteed Notes
(Callable 03/01/21 @ 105.16)(1),(8)

   (B, NR)      03/01/26        6.875        1,440,000  
  907    

Kaiser Aluminum Corp., Global Company Guaranteed Notes
(Callable 05/15/19 @ 104.41)

   (BB+, Ba3)      05/15/24        5.875        927,407  
  2,120    

Noranda Aluminum Acquisition Corp., Global Senior Unsecured Notes
(Callable 08/13/18 @ 100.00)(4),(6),(7)

   (NR, NR)      06/01/19        11.000         
  2,000    

Taseko Mines Ltd., Rule 144A, Senior Secured Notes (Callable 06/15/19 @ 104.38)(1)

   (B, B3)      06/15/22        8.750        2,045,000  
             

 

 

 
                7,847,032  
             

 

 

 
 

Oil Field Equipment & Services (4.2%)

           
  1,575    

FTS International, Inc., Global Senior Secured Notes
(Callable 07/30/18 @ 103.13)

   (B, B3)      05/01/22        6.250        1,596,577  
  1,000    

KCA Deutag UK Finance PLC, Rule 144A, Senior Secured Notes
(Callable 04/01/20 @ 109.88)(1)

   (B-, B3)      04/01/22        9.875        1,038,490  
  794    

Nor Offshore SPV Ltd., PIK, Senior Secured Notes (Callable 07/30/18 @ 100.00)(3)

   (NR, NR)      02/04/20        8.400        285,924  
  950    

Parker Drilling Co., Global Company Guaranteed Notes
(Callable 07/30/18 @ 103.38)(8)

   (B-, Caa2)      07/15/22        6.750        698,250  
  400    

Pioneer Energy Services Corp., Global Company Guaranteed Notes
(Callable 07/30/18 @ 103.06)

   (CCC, Caa3)      03/15/22        6.125        382,000  
  2,500    

Shelf Drilling Holdings Ltd., Rule 144A, Company Guaranteed Notes
(Callable 02/15/21 @ 106.19)(1)

   (B-, B2)      02/15/25        8.250        2,528,125  
  680    

Sidewinder Drilling, Inc., Secured Notes (Callable 07/17/18 @ 100.00)(5),(6),(7)

   (NR, NR)      02/15/20        12.000        646,250  
  100    

Transocean, Inc., Global Company Guaranteed Notes
(Callable 07/15/22 @ 100.00)(8)

   (B, Caa2)      10/15/22        5.800        99,500  
  400    

Trinidad Drilling Ltd., Rule 144A, Company Guaranteed Notes
(Callable 02/15/20 @ 104.97)(1)

   (BB-, B3)      02/15/25        6.625        387,000  
             

 

 

 
                7,662,116  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

10


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Oil Refining & Marketing (1.4%)

           
$ 500    

CITGO Petroleum Corp., Rule 144A, Senior Secured Notes
(Callable 07/30/18 @ 104.69)(1)

   (B+, B3)      08/15/22        6.250      $ 500,150  
  2,000    

Coffeyville Finance, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 103.25)

   (BB-, B1)      11/01/22        6.500        2,050,000  
             

 

 

 
                2,550,150  
             

 

 

 
 

Packaging (3.5%)

           
  1,050    

Ardagh Holdings U.S.A., Inc., Rule 144A, Company Guaranteed Notes
(Callable 02/15/20 @ 104.50)(1)

   (B, B3)      02/15/25        6.000        1,025,062  
  1,000    

Crown Americas Capital Corp., VI, Rule 144A, Company Guaranteed Notes
(Callable 02/01/21 @ 103.56)(1)

   (B+, Ba3)      02/01/26        4.750        952,500  
  2,000    

Flex Acquisition Co., Inc., Rule 144A, Senior Unsecured Notes
(Callable 01/15/20 @ 103.44)(1)

   (CCC+, Caa1)      01/15/25        6.875        1,935,000  
  450    

SIG Combibloc Holdings S.C.A., Rule 144A, Senior Secured Notes
(Callable 07/09/18 @ 103.88)(1),(9)

   (B-, Caa1)      02/15/23        7.750        545,100  
  2,050    

TriMas Corp., Rule 144A, Company Guaranteed Notes
(Callable 10/15/20 @ 102.44)(1)

   (BB-, Ba3)      10/15/25        4.875        1,951,344  
             

 

 

 
                6,409,006  
             

 

 

 
 

Personal & Household Products (1.8%)

           
  1,350    

High Ridge Brands Co., Rule 144A, Company Guaranteed Notes
(Callable 03/15/20 @ 104.44)(1)

   (CC, Caa3)      03/15/25        8.875        607,500  
  1,600    

Mattel, Inc., Rule 144A, Company Guaranteed Notes
(Callable 12/31/20 @ 105.06)(1)

   (BB-, B1)      12/31/25        6.750        1,562,000  
  1,150    

Prestige Brands, Inc., Rule 144A, Company Guaranteed Notes
(Callable 03/01/19 @ 104.78)(1)

   (B-, Caa1)      03/01/24        6.375        1,144,250  
             

 

 

 
                3,313,750  
             

 

 

 
 

Pharmaceuticals (3.9%)

           
  1,000    

Catalent Pharma Solutions, Inc., Rule 144A, Company Guaranteed Notes
(Callable 10/15/20 @ 102.44)(1)

   (B+, B3)      01/15/26        4.875        962,790  
  500    

Endo Finance LLC, Rule 144A, Company Guaranteed Notes
(Callable 07/30/18 @ 104.50)(1)

   (CCC+, B3)      07/15/23        6.000        413,750  
  650    

Endo Finance LLC, Rule 144A, Senior Secured Notes
(Callable 04/15/20 @ 102.94)(1),(8)

   (BB-, Ba2)      10/15/24        5.875        637,000  
  1,800    

Owens & Minor, Inc., Global Company Guaranteed Notes
(Callable 09/15/24 @ 100.00)

   (BB, B1)      12/15/24        4.375        1,377,000  
  1,525    

Valeant Pharmaceuticals International, Inc., Rule 144A, Company Guaranteed Notes
(Callable 07/30/18 @ 102.94)(1)

   (B-, Caa1)      05/15/23        5.875        1,438,266  
  250    

Valeant Pharmaceuticals International, Inc., Rule 144A, Company Guaranteed Notes
(Callable 12/15/21 @ 104.50)(1)

   (B-, Caa1)      12/15/25        9.000        259,987  
  1,300    

Valeant Pharmaceuticals International, Inc., Rule 144A, Senior Secured Notes
(Callable 03/15/20 @ 103.50)(1)

   (BB-, Ba3)      03/15/24        7.000        1,367,860  
  500    

Valeant Pharmaceuticals International, Rule 144A, Company Guaranteed Notes
(Callable 04/01/22 @ 104.63)(1)

   (B-, Caa1)      04/01/26        9.250        520,625  
             

 

 

 
                6,977,278  
             

 

 

 
 

Printing & Publishing (0.5%)

           
  1,000    

Multi-Color Corp., Rule 144A, Company Guaranteed Notes
(Callable 11/01/20 @ 102.44)(1)

   (B+, B2)      11/01/25        4.875        933,750  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

11


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Real Estate Investment Trusts (3.4%)

           
$ 750    

iStar, Inc., Senior Unsecured Notes (Callable 04/01/19 @ 103.00)

   (BB-, B1)      04/01/22        6.000      $ 751,875  
  1,398    

iStar, Inc., Senior Unsecured Notes (Callable 07/30/18 @ 100.00)

   (BB-, B1)      07/01/19        5.000        1,395,379  
  600    

iStar, Inc., Senior Unsecured Notes (Callable 07/30/18 @ 103.25)

   (BB-, B1)      07/01/21        6.500        609,750  
  1,000    

iStar, Inc., Senior Unsecured Notes (Callable 09/15/19 @ 102.63)

   (BB-, B1)      09/15/22        5.250        970,625  
  1,300    

QCP SNF West/Central/East/AL REIT LLC, Rule 144A, Secured Notes
(Callable 11/01/19 @ 104.06)(1)

   (CCC+, Caa2)      11/01/23        8.125        1,412,970  
  900    

Starwood Property Trust, Inc., Global Senior Unsecured Notes
(Callable 09/15/21 @ 100.00)

   (BB-, Ba3)      12/15/21        5.000        909,000  
             

 

 

 
                6,049,599  
             

 

 

 
 

Recreation & Travel (2.5%)

           
  1,250    

Boyne U.S.A., Inc., Rule 144A, Secured Notes (Callable 05/01/21 @ 103.63)(1)

   (B, B2)      05/01/25        7.250        1,309,375  
  235    

Canada’s Wonderland Co., Global Company Guaranteed Notes
(Callable 04/15/22 @ 102.69)

   (BB-, B1)      04/15/27        5.375        232,063  
  750    

Merlin Entertainments PLC, Rule 144A, Senior Unsecured Notes
(Callable 03/17/26 @ 100.00)(1)

   (BB, Ba2)      06/15/26        5.750        763,200  
  650    

Six Flags Entertainment Corp., Rule 144A, Company Guaranteed Notes
(Callable 04/15/22 @ 102.75)(1)

   (BB-, B2)      04/15/27        5.500        632,749  
  850    

Six Flags Entertainment Corp., Rule 144A, Company Guaranteed Notes
(Callable 07/31/19 @ 103.66)(1)

   (BB-, B2)      07/31/24        4.875        829,812  
  675    

Speedway Motorsports, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 103.84)

   (BB+, Ba2)      02/01/23        5.125        663,187  
             

 

 

 
                4,430,386  
             

 

 

 
 

Restaurants (1.8%)

           
  1,350    

Golden Nugget, Inc., Rule 144A, Senior Unsecured Notes
(Callable 10/15/19 @ 103.38)(1)

   (CCC+, B3)      10/15/24        6.750        1,353,618  
  2,075    

New Red Finance, Inc., Rule 144A, Secured Notes
(Callable 10/15/20 @ 102.50)(1)

   (B-, B3)      10/15/25        5.000        1,973,740  
             

 

 

 
                3,327,358  
             

 

 

 
 

Software - Services (4.6%)

           
  1,850    

CDK Global, Inc., Global Senior Unsecured Notes
(Callable 06/01/22 @ 102.44)

   (BB+, Ba1)      06/01/27        4.875        1,782,937  
  1,046    

Epicor Software Corp., Rule 144A, Secured Notes, LIBOR 3M + 8.250%(1),(10)

   (CCC, NR)      06/30/23        10.590        1,059,703  
  900    

First Data Corp., Rule 144A, Secured Notes
(Callable 01/15/19 @ 102.88)(1)

   (B, B1)      01/15/24        5.750        903,393  
  950    

Infor Software Parent, Inc., 7.125% Cash, 7.875% PIK, Rule 144A, Senior Unsecured Notes (Callable 07/30/18 @ 101.78)(1),(3)

   (CCC, Caa2)      05/01/21        15.000        955,938  
  900    

Infor U.S., Inc., Company Guaranteed Notes
(Callable 07/16/18 @ 102.88)(9)

   (CCC+, Caa1)      05/15/22        5.750        1,070,971  
  663    

Sabre GLBL, Inc. Rule 144A, Senior Secured Notes
(Callable 11/15/18 @ 103.94)(1)

   (BB, Ba2)      11/15/23        5.250        670,445  
  1,750    

Solera Finance, Inc., Rule 144A, Senior Unsecured Notes
(Callable 03/01/19 @ 107.88)(1)

   (CCC+, Caa1)      03/01/24        10.500        1,952,352  
             

 

 

 
                8,395,739  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

12


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Specialty Retail (0.9%)

           
$ 250    

Eagle Intermediate Global Holding B.V., Rule 144A, Senior Secured Notes
(Callable 05/01/21 @ 105.63)(1)

   (B, B1)      05/01/25        7.500      $ 250,313  
  350    

Penske Automotive Group, Inc., Company Guaranteed Notes
(Callable 05/15/21 @ 102.75)

   (B+, B1)      05/15/26        5.500        343,875  
  750    

Penske Automotive Group, Inc., Company Guaranteed Notes
(Callable 12/01/19 @ 102.69)

   (B+, B1)      12/01/24        5.375        740,625  
  300    

Penske Automotive Group, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 102.88)

   (B+, B1)      10/01/22        5.750        303,937  
             

 

 

 
                1,638,750  
             

 

 

 
 

Steel Producers/Products (1.1%)

           
  600    

Commercial Metals Co., Rule 144A, Senior Unsecured Notes
(Callable 04/15/21 @ 102.88)(1)

   (BB+, Ba3)      04/15/26        5.750        585,000  
  400    

Commercial Metals Co., Senior Unsecured Notes
(Callable 07/15/22 @ 102.69)

   (BB+, Ba2)      07/15/27        5.375        381,000  
  1,000    

Zekelman Industries, Inc., Rule 144A, Senior Secured Notes
(Callable 06/15/19 @ 104.94)(1)

   (B, B3)      06/15/23        9.875        1,097,500  
             

 

 

 
                2,063,500  
             

 

 

 
 

Support - Services (7.8%)

           
  2,100    

Avison Young Canada, Inc., Rule 144A, Senior Secured Notes
(Callable 12/15/19 @ 104.75)(1)

   (B+, B3)      12/15/21        9.500        2,147,250  
  1,215    

Conduent Business Services LLC, Rule 144A, Company Guaranteed Notes
(Callable 12/15/20 @ 105.25)(1)

   (B+, B2)      12/15/24        10.500        1,456,481  
  575    

CoreCivic, Inc., Company Guaranteed Notes
(Callable 07/15/27 @ 100.00)

   (BB, Ba1)      10/15/27        4.750        523,250  
  1,200    

Gartner, Inc., Rule 144A, Company Guaranteed Notes
(Callable 04/01/20 @ 103.84)(1)

   (BB-, B1)      04/01/25        5.125        1,197,000  
  2,000    

H&E Equipment Services, Inc., Global Company Guaranteed Notes
(Callable 09/01/20 @ 104.22)

   (BB-, B2)      09/01/25        5.625        1,970,000  
  1,467    

KAR Auction Services, Inc., Rule 144A, Company Guaranteed Notes
(Callable 06/01/20 @ 103.84)(1)

   (B, B3)      06/01/25        5.125        1,404,653  
  2,025    

Sotheby’s, Rule 144A, Company Guaranteed Notes
(Callable 12/15/20 @ 103.66)(1)

   (BB-, Ba3)      12/15/25        4.875        1,949,062  
  575    

Tempo Acquisition Finance Corp., Rule 144A, Senior Unsecured Notes
(Callable 06/01/20 @ 103.38)(1)

   (CCC+, Caa1)      06/01/25        6.750        553,438  
  1,100    

United Rentals North America, Inc., Company Guaranteed Notes
(Callable 01/15/23 @ 102.44)

   (BB, Ba3)      01/15/28        4.875        1,021,295  
  500    

United Rentals North America, Inc., Company Guaranteed Notes
(Callable 05/15/22 @ 102.75)

   (BB, Ba3)      05/15/27        5.500        486,250  
  1,350    

WeWork Cos., Inc., Rule 144A, Company Guaranteed Notes(1)

   (B+, Caa1)      05/01/25        7.875        1,299,375  
             

 

 

 
                14,008,054  
             

 

 

 
 

Tech Hardware & Equipment (1.5%)

           
  1,400    

CDW Finance Corp., Company Guaranteed Notes
(Callable 03/01/20 @ 103.75)

   (BB-, Ba3)      09/01/25        5.000        1,382,500  

 

See Accompanying Notes to Financial Statements.

 

13


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Tech Hardware & Equipment

           
$ 525    

CommScope Technologies LLC, Rule 144A, Company Guaranteed Notes
(Callable 03/15/22 @ 102.50)(1)

   (BB-, Ba3)      03/15/27        5.000      $ 495,469  
  875    

CommScope Technologies LLC, Rule 144A, Company Guaranteed Notes
(Callable 06/15/20 @ 103.00)(1)

   (BB-, Ba3)      06/15/25        6.000        897,969  
             

 

 

 
                2,775,938  
             

 

 

 
 

Telecom - Satellite (0.7%)

           
  482    

Hughes Satellite Systems Corp., Global Company Guaranteed Notes

   (BB-, B3)      06/15/21        7.625        514,535  
  800    

Hughes Satellite Systems Corp., Global Senior Secured Notes

   (BBB-, Ba2)      08/01/26        5.250        753,000  
             

 

 

 
                1,267,535  
             

 

 

 
 

Telecom - Wireless (2.1%)

           
  1,000    

Sprint Spectrum Co. II LLC, Rule 144A, Senior Secured Notes(1)

   (NR, Baa2)      03/20/28        5.152        982,500  
  950    

T-Mobile U.S.A., Inc., Company Guaranteed Notes
(Callable 02/01/23 @ 102.38)

   (BB+, Ba2)      02/01/28        4.750        881,125  
  700    

T-Mobile U.S.A., Inc., Global Company Guaranteed Notes
(Callable 01/15/21 @ 103.25)

   (BB+, Ba2)      01/15/26        6.500        723,625  
  1,550    

Wind Tre SpA, Rule 144A, Senior Secured Notes
(Callable 11/03/20 @ 102.50)(1)

   (BB-, B1)      01/20/26        5.000        1,236,450  
             

 

 

 
                3,823,700  
             

 

 

 
 

Telecom - Wireline Integrated & Services (3.5%)

           
  350    

Equinix, Inc., Senior Unsecured Notes
(Callable 05/15/22 @ 102.69)

   (BB+, B1)      05/15/27        5.375        350,000  
  2,651    

GTT Communications, Inc., Rule 144A, Company Guaranteed Notes
(Callable 12/31/19 @ 105.91)(1)

   (CCC+, Caa1)      12/31/24        7.875        2,637,745  
  619    

Level 3 Financing, Inc., Global Company Guaranteed Notes
(Callable 03/15/21 @ 102.63)

   (BB, Ba3)      03/15/26        5.250        590,278  
  800    

QTS Finance Corp., Rule 144A, Company Guaranteed Notes
(Callable 11/15/20 @ 103.56)(1)

   (BB, B1)      11/15/25        4.750        752,760  
  150    

Syniverse Holdings, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 100.00)

   (CCC+, Caa2)      01/15/19        9.125        149,344  
  600    

Zayo Capital, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 104.50)

   (B, B3)      04/01/23        6.000        613,500  
  1,175    

Zayo Capital, Inc., Rule 144A, Company Guaranteed Notes
(Callable 01/15/22 @ 102.88)(1)

   (B, B3)      01/15/27        5.750        1,157,375  
             

 

 

 
                6,251,002  
             

 

 

 
 

Theaters & Entertainment (3.1%)

           
  750    

AMC Entertainment Holdings, Inc., Global Company Guaranteed Notes
(Callable 05/15/22 @ 103.06)

   (B+, B3)      05/15/27        6.125        731,250  
  600    

AMC Entertainment Holdings, Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 102.94)(8)

   (B+, B3)      02/15/22        5.875        612,750  
  500    

AMC Entertainment Holdings, Inc., Global Company Guaranteed Notes
(Callable 11/15/21 @ 102.94)(8)

   (B+, B3)      11/15/26        5.875        482,500  
  750    

Carmike Cinemas, Inc., Rule 144A, Secured Notes
(Callable 07/30/18 @ 104.50)(1)

   (BB, Ba2)      06/15/23        6.000        770,625  

 

See Accompanying Notes to Financial Statements.

 

14


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

CORPORATE BONDS (continued)

           
 

Theaters & Entertainment

           
$ 1,250    

Cinemark U.S.A., Inc., Global Company Guaranteed Notes
(Callable 07/30/18 @ 102.44)

   (BB, B2)      06/01/23        4.875      $ 1,231,094  
  700    

Live Nation Entertainment, Inc., Rule 144A, Company Guaranteed Notes
(Callable 03/15/21 @ 104.22)(1)

   (B+, B1)      03/15/26        5.625        696,500  
  1,025    

Live Nation Entertainment, Inc., Rule 144A, Company Guaranteed Notes
(Callable 11/01/19 @ 103.66)(1)

   (B+, B1)      11/01/24        4.875        994,250  
             

 

 

 
                5,518,969  
             

 

 

 
 

Transport Infrastructure/Services (0.9%)

           
  1,750    

Navios Maritime Finance II U.S., Inc., Rule 144A, Senior Secured Notes
(Callable 07/30/18 @ 108.44)(1)

   (B, Caa2)      08/15/22        11.250        1,669,063  
             

 

 

 
 

TOTAL CORPORATE BONDS (Cost $205,547,521)

              202,293,545  
             

 

 

 
 

BANK LOANS (21.4%)

           
 

Aerospace & Defense (0.5%)

           
  878    

Sequa Mezzanine Holdings LLC, LIBOR 1M + 5.000%(10)

   (B-, B3)      11/28/21        7.046        880,679  
             

 

 

 
 

Auto Parts & Equipment (0.8%)

           
  752    

Dayco Products LLC, LIBOR 3M + 4.250%(7),(10)

   (B, B2)      05/19/23        6.557        754,281  
  678    

U.S. Farathane LLC, LIBOR 3M + 3.500%(10)

   (B+, B2)      12/23/21        5.834        677,886  
             

 

 

 
                1,432,167  
             

 

 

 
 

Building Materials (1.5%)

           
  1,000    

Airxcel, Inc., LIBOR 1M + 8.750%(10)

   (CCC+, Caa2)      04/27/26        10.844        977,500  
  923    

Fastener Acquisition, Inc., LIBOR 3M + 8.750(10)

   (CCC+, Caa2)      03/30/26        11.084        890,221  
  937    

Morsco, Inc., Prime + 6.000%(7),(10)

   (B+, B3)      10/31/23        11.000        955,411  
             

 

 

 
                2,823,132  
             

 

 

 
 

Chemicals (3.7%)

           
  1,000    

Archroma Finance Sarl, LIBOR 3M + 8.250%(7),(10)

   (NR, Caa1)      07/11/25        10.587        995,000  
  1,313    

ASP Chromaflo Intermediate Holdings, Inc., LIBOR 1M + 8.000%(10)

   (CCC, Caa2)      11/14/24        10.094        1,315,781  
  1,637    

Preferred Proppants LLC, LIBOR 3M + 7.750%(5),(7),(10)

   (CCC, Caa2)      07/27/20        10.084        1,558,939  
  995    

UTEX Industries, Inc., LIBOR 1M + 4.000%(10)

   (CCC+, B3)      05/22/21        6.094        987,776  
  1,750    

Vantage Specialty Chemicals, Inc., LIBOR 2M + 8.250%(10)

   (CCC, Caa2)      10/27/25        10.347        1,763,860  
             

 

 

 
                6,621,356  
             

 

 

 
 

Diversified Capital Goods (1.0%)

           
  750    

Cortes NP Acquisition Corp., LIBOR 1M + 4.000%(10)

   (B+, Ba3)      11/30/23        6.001        746,250  
  1,005    

Dynacast International LLC, LIBOR 3M + 8.500%(7),(10)

   (B-, Caa1)      01/30/23        10.834        1,010,025  
             

 

 

 
                1,756,275  
             

 

 

 
 

Electronics (1.0%)

           
  750    

CPI International, Inc., LIBOR 1M + 7.250%(7),(10)

   (CCC+, Caa2)      07/26/25        9.344        754,687  
  990    

Oberthur Technologies S.A., LIBOR 3M + 3.750%(10)

   (B-, B2)      01/10/24        6.084        988,322  
             

 

 

 
                1,743,009  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

15


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

BANK LOANS (continued)

           
 

Energy - Exploration & Production (0.5%)

           
$ 1,000    

W&T Offshore, Inc.(5),(10)

   (B-, Caa2)      05/15/20        9.000      $ 1,003,330  
             

 

 

 
 

Health Facilities (0.8%)

           
  998    

Prospect Medical Holdings, Inc., LIBOR 1M + 5.500%(7),(10)

   (B, B1)      02/22/24        7.500        997,500  
  498    

Western Dental Services, Inc., LIBOR 1M + 4.500%(7),(10)

   (B-, B3)      06/23/23        6.594        499,064  
             

 

 

 
                1,496,564  
             

 

 

 
 

Insurance Brokerage (1.1%)

           
  1,975    

Acrisure LLC, LIBOR 3M + 4.250%(10)

   (B, B2)      11/22/23        6.609        1,973,851  
             

 

 

 
 

Investments & Misc. Financial Services (1.0%)

           
  944    

Ditech Holding Corp., LIBOR 1M + 6.000%(10)

   (B-, Caa2)      06/30/22        8.094        908,817  
  930    

Ocwen Financial Corp., LIBOR 1M + 5.000%(10)

   (B+, B3)      12/05/20        7.085        931,091  
             

 

 

 
                1,839,908  
             

 

 

 
 

Machinery (1.6%)

           
  1,734    

CPM Acquisition Corp., LIBOR 1M + 8.250%(10)

   (B-, Caa1)      04/10/23        10.344        1,769,911  
  1,125    

WireCo WorldGroup, Inc., LIBOR 1M + 9.000%(7),(10)

   (B-, Caa3)      09/30/24        11.094        1,136,250  
             

 

 

 
                2,906,161  
             

 

 

 
 

Media Content (0.3%)

           
  500    

DLG Acquisitions Ltd., EURIBOR 6M + 7.250%(9),(10)

   (CCC+, Caa2)      06/30/22        8.250        587,698  
             

 

 

 
 

Medical Products (0.5%)

           
  895    

ABB Concise Optical Group LLC, LIBOR 1M + 5.000%(7),(10)

   (B-, B2)      06/15/23        7.077        903,910  
             

 

 

 
 

Personal & Household Products (2.3%)

           
  1,000    

ABG Intermediate Holdings 2 LLC, LIBOR 1M + 7.750%(7),(10)

   (CCC+, Caa1)      09/29/25        9.844        1,002,500  
  495    

Comfort Holding LLC, LIBOR 1M + 4.750%(10)

   (CCC+, Caa1)      02/05/24        6.807        476,631  
  1,350    

Comfort Holding LLC, LIBOR 1M + 10.000%(10)

   (CCC-, Caa3)      02/03/25        12.057        1,279,969  
  1,250    

Serta Simmons Bedding LLC, LIBOR 3M + 8.000%(10)

   (CCC, Caa2)      11/08/24        10.331        865,625  
  45    

TricorBraun Holdings, Inc., LIBOR 3M + 3.750%(10)

   (B, B2)      11/30/23        6.080        45,461  
  451    

TricorBraun Holdings, Inc., LIBOR 3M + 3.750%(10)

   (B, B2)      11/30/23        6.084        451,177  
             

 

 

 
                4,121,363  
             

 

 

 
 

Real Estate Investment Trusts (0.6%)

           
  1,115    

Quality Care Properties, Inc., LIBOR 1M + 5.250%(10)

   (B-, Caa1)      10/31/22        7.344        1,122,839  
             

 

 

 
 

Software - Services (2.1%)

           
  623    

Almonde, Inc., LIBOR 3M + 7.250%(10)

   (CCC, Caa2)      06/13/25        9.557        602,141  
  1,000    

Eze Castle Software, Inc., LIBOR 1M + 6.500%(10)

   (CCC+, Caa1)      04/05/21        8.594        1,003,335  
  803    

Flexera Software LLC, LIBOR 1M + 7.250%(10)

   (CCC+, Caa1)      02/26/26        9.350        804,824  
  361    

LDiscovery LLC, LIBOR 2M + 5.875%(5),(7),(10)

   (B, B3)      12/09/22        7.958        337,477  
  1,000    

TigerLuxOne Sarl, LIBOR 3M + 8.250%(7),(10)

   (CCC+, Caa2)      02/16/25        10.584        990,000  
             

 

 

 
                3,737,777  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

16


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Par
(000)

        

Ratings†
(S&P/Moody’s)

  

Maturity

    

Rate%

    

Value

 
 

BANK LOANS (continued)

           
 

Specialty Retail (1.2%)

           
$ 1,250    

Boing U.S. Holdco, Inc., LIBOR 3M + 7.500%(7),(10)

   (CCC+, Caa1)      10/03/25        9.863      $ 1,253,125  
  1,000    

Sally Holdings LLC(10)

   (BB+, Ba1)      07/05/24        4.500        948,750  
             

 

 

 
                2,201,875  
             

 

 

 
 

Support - Services (0.3%)

           
  1,525    

Sprint Industrial Holdings LLC, LIBOR 3M + 12.250%(5),(10)

   (CC, Caa3)      11/14/19        13.500        526,004  
             

 

 

 
 

Theaters & Entertainment (0.6%)

           
  880    

Metro-Goldwyn-Mayer, Inc.(7),(10)

   (B-, B2)      06/26/26        4.500        871,479  
  158    

NEG Holdings LLC, LIBOR 3M + 8.000%(5),(6),(7),(10)

   (NR, NR)      10/17/22        10.334        148,054  
             

 

 

 
                1,019,533  
             

 

 

 
 

TOTAL BANK LOANS (Cost $38,876,785)

              38,697,431  
             

 

 

 
 

ASSET BACKED SECURITY (0.6%)

           
 

Collateralized Debt Obligation (0.6%)

           
  1,000    

JFIN CLO Ltd., 2013-1A, Rule 144A, LIBOR 3M + 4.750%(1),(10) (Cost $919,972)

   (BB, NR)      01/20/25        7.109        1,007,384  
             

 

 

 
             

Number of
Shares

                               
 

COMMON STOCKS (1.4%)

           
 

Auto Parts & Equipment (0.5%)

           
  46,071    

UCI International, Inc.(5),(6),(7),(11)

              875,349  
             

 

 

 
 

Building & Construction (0.0%)

           
  5    

White Forest Resources, Inc.(5),(6),(7),(11)

              28  
             

 

 

 
 

Building Materials (0.0%)

           
  372    

Dayton Superior Corp.(5),(6),(7),(11)

               
             

 

 

 
 

Energy - Exploration & Production (0.5%)

           
  26,788    

Talos Energy, Inc.(11)

              860,699  
             

 

 

 
 

Oil Field Equipment & Services (0.3%)

           
  11    

Sidewinder Drilling, Inc., Series A(5),(6),(7),(11)

              661,266  
             

 

 

 
 

Support - Services (0.1%)

           
  800    

LTR Holdings LLC(5),(6),(7),(11)

              220,480  
  433    

Sprint Industrial Holdings LLC, Class G(6),(7),(11)

              4  
  39    

Sprint Industrial Holdings LLC, Class H(6),(7),(11)

              1  
  96    

Sprint Industrial Holdings LLC, Class I(6),(7),(11)

              1  
             

 

 

 
                220,486  
             

 

 

 

 

See Accompanying Notes to Financial Statements.

 

17


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Number of
Shares

             

 

    

 

    

Value

 
 

Theaters & Entertainment (0.0%)

           
  20    

NEG Holdings LLC, Litigation Trust Units(5),(6),(7),(11)

            $ 20  
             

 

 

 
 

TOTAL COMMON STOCKS (Cost $2,887,148)

              2,617,848  
             

 

 

 
 

PREFERRED STOCK (0.0%)

           
 

Building Materials (0.0%)

           
  413    

Dayton Superior Corp.(5),(6),(7),(11) (Cost $156,000)

               
             

 

 

 
 

SHORT-TERM INVESTMENTS (5.4%)

           
  4,301,063    

State Street Navigator Securities Lending Government Money Market Portfolio, 1.95%(12)

              4,301,063  
             

Par
(000)

             

Maturity

    

Rate%

    

 

 
$ 5,445    

State Street Bank and Trust Co. Euro Time Deposit

        07/02/18        0.280        5,444,541  
             

 

 

 
 

TOTAL SHORT-TERM INVESTMENTS (Cost $9,745,604)

              9,745,604  
             

 

 

 
 

TOTAL INVESTMENTS AT VALUE (140.6%) (Cost $258,133,030)

              254,361,812  
 

LIABILITIES IN EXCESS OF OTHER ASSETS (-40.6%)

              (73,500,838
             

 

 

 
 

NET ASSETS (100.0%)

            $ 180,860,974  
             

 

 

 

INVESTMENT ABBREVIATIONS

1M = 1 Month

2M = 2 Month

3M = 3 Month

6M = 6 Month

EURIBOR = Euro Interbank Offered Rate

LIBOR = London Interbank Offered Rate

NR = Not Rated

 

Credit ratings given by the Standard & Poor’s Division of The McGraw-Hill Companies, Inc. (“S&P”) and Moody’s Investors Service, Inc. (“Moody’s”) are unaudited.

 

(1)

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2018, these securities amounted to a value of $156,901,661 or 86.8% of net assets.

 

(2)

This security is denominated in British Pound.

 

(3)

PIK: Payment-in-kind security for which part of the income earned may be paid as additional principal.

 

(4)

Bond is currently in default.

 

(5)

Illiquid security (unaudited).

 

(6)

Not readily marketable security; security is valued at fair value as determined in good faith by, or under the direction of, the Board of Directors.

 

(7)

Security is valued using significant unobservable inputs.

 

(8)

Security or portion thereof is out on loan (See note 2-I).

 

(9)

This security is denominated in Euro.

 

(10)

Variable rate obligation - The interest rate shown is the rate in effect as of June 30, 2018.

 

(11)

Non-income producing security.

 

(12)

Represents security purchased with cash collateral received for securities on loan. The rate shown is the annualized one-day yield at June 30, 2018.

 

See Accompanying Notes to Financial Statements.

 

18


Credit Suisse Asset Management Income Fund, Inc.

Schedule of Investments (continued)

June 30, 2018 (unaudited)

 

 

Forward Foreign Currency Contracts

 

Forward
Currency to be
Purchased (Local)

    

Forward
Currency to be
Sold (Local)

     Expiration
Date
    

Counterparty

   Value on
Settlement Date
    Current
Value/Notional
    Net Unrealized
Appreciation
(Depreciation)
 

EUR

     334,900      USD      401,401        10/12/18      Morgan Stanley    $ 401,401     $ 394,033     $ (7,368

GBP

     1,685,000      USD      2,305,762        10/12/18      Morgan Stanley      2,305,762       2,234,684       (71,078

USD

     3,495,423      EUR      2,895,000        10/12/18      Morgan Stanley      (3,495,423     (3,406,166     89,257  

USD

     3,001,555      GBP      2,241,350        10/12/18      Morgan Stanley      (3,001,555     (2,972,528     29,027  
                     

 

 

 
  $ 39,838  
                     

 

 

 

Currency Abbreviations:

EUR = Euro

GBP = British Pound

USD = United States Dollar

 

See Accompanying Notes to Financial Statements.

 

19


Credit Suisse Asset Management Income Fund, Inc.

Statement of Assets and Liabilities

June 30, 2018 (unaudited)

 

 

Assets

 

Investments at value, including collateral for securities on loan of $4,301,063
(Cost $258,133,030) (Note 2)

   $         254,361,812 1  

Cash

     55,976  

Foreign currency at value (Cost $827,262)

     779,453  

Interest receivable

     3,967,361  

Receivable for investments sold

     1,451,976  

Unrealized appreciation on forward foreign currency contracts (Note 2)

     118,284  

Prepaid expenses and other assets

     11,647  
  

 

 

 

Total assets

     260,746,509  
  

 

 

 

Liabilities

 

Investment advisory fee payable (Note 3)

     207,486  

Administrative services fee payable (Note 3)

     7,930  

Loan payable (Note 4)

     73,000,000  

Payable upon return of securities loaned (Note 2)

     4,301,063  

Payable for investments purchased

     2,091,696  

Unrealized depreciation on forward foreign currency contracts (Note 2)

     78,446  

Directors’ fee payable

     40,735  

Accrued expenses

     158,179  
  

 

 

 

Total liabilities

     79,885,535  
  

 

 

 

Net Assets

 

Applicable to 52,304,929 shares outstanding

   $ 180,860,974  
  

 

 

 

Net Assets

 

Capital stock, $.001 par value (Note 6)

     52,305  

Paid-in capital (Note 6)

     196,871,689  

Undistributed net investment income

     708,685  

Accumulated net realized loss on investments, foreign currency transactions and forward foreign currency contracts

     (12,991,813

Net unrealized depreciation on investments, foreign currency translations and forward foreign currency contracts

     (3,779,892
  

 

 

 

Net assets

   $ 180,860,974  
  

 

 

 

Net Asset Value Per Share ($180,860,974 / 52,304,929)

     $3.46  
  

 

 

 

Market Price Per Share

     $3.16  
  

 

 

 

 

 

1

Includes $4,258,636 of securities on loan.

 

See Accompanying Notes to Financial Statements.

 

20


Credit Suisse Asset Management Income Fund, Inc.

Statement of Operations

For the Six Months Ended June 30, 2018 (unaudited)

 

 

Investment Income

 

Interest

   $         9,001,636  

Securities lending (Note 2)

     16,335  
  

 

 

 

Total investment income

     9,017,971  
  

 

 

 

Expenses

 

Investment advisory fees (Note 3)

     417,654  

Administrative services fees (Note 3)

     29,755  

Interest expense (Note 4)

     842,496  

Commitment fees (Note 4)

     72,247  

Directors’ fees

     64,211  

Legal fees

     31,521  

Printing fees

     31,067  

Audit and tax fees

     28,058  

Transfer agent fees

     25,295  

Custodian fees

     12,894  

Stock exchange listing fees

     8,448  

Insurance expense

     2,227  

Miscellaneous expense

     4,595  
  

 

 

 

Total expenses

     1,570,468  
  

 

 

 

Net investment income

     7,447,503  
  

 

 

 

Net Realized and Unrealized Gain (Loss) from Investments, Foreign Currency and Forward Foreign Currency Contracts

  

Net realized gain from investments

     407,828  

Net realized gain from foreign currency transactions

     27,190  

Net change in unrealized appreciation (depreciation) from investments

     (7,658,341

Net change in unrealized appreciation (depreciation) from foreign currency translations

     (70,654

Net change in unrealized appreciation (depreciation) from forward foreign currency contracts

     139,407  
  

 

 

 

Net realized and unrealized loss from investments, foreign currency and forward foreign currency contracts

     (7,154,570
  

 

 

 

Net increase in net assets resulting from operations

   $ 292,933  
  

 

 

 

 

See Accompanying Notes to Financial Statements.

 

21


Credit Suisse Asset Management Income Fund, Inc.

Statement of Changes in Net Assets

 

 

       For the Six Months  
Ended
June 30, 2018
(unaudited)
     For the Year Ended
  December 31, 2017  
 

From Operations

 

Net investment income

   $ 7,447,503      $ 12,611,433  

Net realized gain (loss) from investments, foreign currency transactions and forward foreign currency contracts

     435,018        (1,210,696

Net change in unrealized appreciation (depreciation) from investments, foreign currency translations and forward foreign currency contracts

     (7,589,588      7,811,112  
  

 

 

    

 

 

 

Net increase in net assets resulting from operations

     292,933        19,211,849  
  

 

 

    

 

 

 

From Dividends and Distributions

 

Dividends from net investment income

     (6,904,251      (12,652,428

Return of capital

            (1,153,355
  

 

 

    

 

 

 

Net decrease in net assets resulting from dividends

     (6,904,251      (13,805,783
  

 

 

    

 

 

 

From Capital Share Transactions (Note 6)

 

Issuance of 0 and 13,164 shares through the directors compensation plan (Note 3)

            47,195  
  

 

 

    

 

 

 

Net increase in net assets from capital share transactions

            47,195  
  

 

 

    

 

 

 

Net increase (decrease) in net assets

     (6,611,318      5,453,261  

Net Assets

 

Beginning of period

     187,472,292        182,019,031  
  

 

 

    

 

 

 

End of period

   $         180,860,974      $         187,472,292  
  

 

 

    

 

 

 

Undistributed net investment income

   $ 708,685      $ 165,433  
  

 

 

    

 

 

 

 

See Accompanying Notes to Financial Statements.

 

22


Credit Suisse Asset Management Income Fund, Inc.

Statement of Cash Flows

June 30, 2018 (unaudited)

 

 

Reconciliation of Net Increase in Net Assets from Operations to Net Cash
Used by Operating Activities

     

Net increase in net assets resulting from operations

      $ 292,933  
     

 

 

 

Adjustments to Reconcile Net Increase in Net Assets from Operations to Net Cash Used by Operating Activities

     

Increase in dividend and interest receivable

   $ (743,324   

Increase in accrued expenses

     12,045     

Increase in payable upon return of securities loaned

     467,903     

Increase in prepaid expenses and other assets

     (5,698   

Decrease in receivable for Fund shares sold

     22,486     

Decrease in investment advisory fee payable

     (11,867   

Net amortization of discount on investments

     (348,648   

Purchases of long-term securities, net of change in payable for investments purchased

     (77,965,414   

Sales of long-term securities, net of change in receivable for investments sold

     51,270,948     

Purchase of short-term securities, net

     (3,746,950   

Net change in unrealized (appreciation) depreciation from investments, foreign currency translations and forward foreign currency contracts

     7,518,934     

Net realized gain from investments

     (407,828   

Total adjustments

        (23,937,413
     

 

 

 

Net cash used by operating activities1

      $ (23,644,480
     

 

 

 

Cash Flows From Financing Activities

  

Borrowings on revolving credit facility

     48,500,000     

Repayments of credit facility

     (21,500,000   

Cash dividends paid

     (6,904,251   
  

 

 

    

Net cash provided by financing activities

        20,095,749  
     

 

 

 

Net decrease in cash

        (3,548,731

Cash — beginning of year

        4,384,160  
     

 

 

 

Cash — end of period

      $ 835,429  
     

 

 

 

 

 

1

Included in operating expenses is cash of $842,496 paid for interest on borrowings.

 

See Accompanying Notes to Financial Statements.

 

23


Credit Suisse Asset Management Income Fund, Inc.

Financial Highlights

 

 

    For the Six Months
Ended
6/30/18

(unaudited)
    For the Year Ended December 31,  
    2017     2016     2015     2014     2013  

Per share operating performance

 

Net asset value, beginning of period

  $ 3.58     $ 3.48     $ 3.21     $ 3.62     $ 3.84     $ 3.80  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

INVESTMENT OPERATIONS

 

Net investment income1

    0.14       0.24       0.25       0.25       0.25       0.28  

Net gain (loss) on investments, foreign currency transactions and forward foreign currency contracts (both realized and unrealized)

    (0.13     0.12       0.28       (0.40     (0.19     0.05  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total from investment activities

    0.01       0.36       0.53       (0.15     0.06       0.33  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

LESS DIVIDENDS AND DISTRIBUTIONS

 

Dividends from net investment income

    (0.13     (0.24     (0.25     (0.26     (0.27     (0.29

Return of capital

          (0.02     (0.01           (0.01     (0.01
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total dividends and distributions

    (0.13     (0.26     (0.26     (0.26     (0.28     (0.30
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

CAPITAL SHARE TRANSACTIONS

 

Increase to net asset value due to shares issued through at-the-market offerings

                                  0.01  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net asset value, end of period

  $ 3.46     $ 3.58     $ 3.48     $ 3.21     $ 3.62     $ 3.84  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Per share market value, end of period

  $ 3.16     $ 3.31     $ 3.16     $ 2.78     $ 3.29     $ 3.56  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

TOTAL INVESTMENT RETURN2

 

Net asset value

    0.66     11.34     18.64     (3.35 )%      1.92     9.34

Market value

    (0.56 )%      13.37     24.39     (7.90 )%      (0.09 )%      (4.42 )% 

RATIOS AND SUPPLEMENTAL DATA

 

Net assets, end of period (000s omitted)

  $ 180,861     $ 187,472     $ 182,019     $ 167,848     $ 189,343     $ 200,780  

Ratio of expenses to average net assets

    1.72 %3      1.06     0.74     0.66     0.71     0.76

Ratio of expenses to average net assets excluding interest expense4

    0.80 %3      0.90     0.74     0.66     0.71     0.76

Ratio of net investment income to average net assets

    8.16 %3      6.75     7.66     7.21     6.60     7.40

Asset Coverage per $1,000 of Indebtedness

  $ 3,478     $ 5,075     $     $     $     $  

Portfolio turnover rate

    22     64     53     51     67     69

 

 

1

Per share information is calculated using the average shares outstanding method.

2

Total investment return at net asset value is based on the change in the net asset value of Fund shares and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment program. Total investment return at market value is based on the change in the market price at which the Fund’s shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment program. Because the Fund’s shares trade in the stock market based on investor demand, the Fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on NAV and share price.

3

Annualized.

4

Presentation of 2013-2014 adjusted to conform with current period presentation.

 

See Accompanying Notes to Financial Statements.

 

24


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements

June 30, 2018 (unaudited)

 

 

Note 1. Organization

Credit Suisse Asset Management Income Fund, Inc. (the “Fund”) was incorporated on February 11, 1987 and is registered as a diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The investment objective of the Fund is to provide current income consistent with the preservation of capital.

Note 2. Significant Accounting Policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The Fund is considered an investment company for financial reporting purposes under GAAP and follows Accounting Standards Codification (“ASC”) Topic 946 — Financial Services — Investment Companies.

A) SECURITY VALUATION — The net asset value of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the “Exchange”) on each day the Exchange is open for business. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. These pricing services generally price fixed income securities assuming orderly transactions of an institutional “round lot” size, but some trades occur in smaller “odd lot” sizes which may be effected at lower prices than institutional round lot trades. Structured note agreements are valued in accordance with a dealer-supplied valuation based on changes in the value of the underlying index. Futures contracts are valued daily at the settlement price established by the board of trade or exchange on which they are traded. Forward contracts are valued at the London closing spot rates and the London closing forward point rates on a daily basis. The currency forward contract pricing model derives the differential in point rates to the expiration date of the forward and calculates its present value. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. The Fund may utilize a service provided by an independent third party which has been approved by the Board of Directors (the “Board”) to fair value certain securities. When fair value pricing is employed, the prices of securities used by the Fund to calculate its net asset value may differ from quoted or published prices for the same securities. If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the investment adviser to be unreliable, the market price may be determined by the investment adviser using quotations from one or more brokers/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved and established by the Board.

 

25


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 2. Significant Accounting Policies (continued)

 

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

GAAP established a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at each measurement date. These inputs are summarized in the three broad levels listed below:

 

   

Level 1 — quoted prices in active markets for identical investments

 

   

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

 

   

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

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

The following is a summary of the inputs used as of June 30, 2018 in valuing the Fund’s assets and liabilities carried at fair value:

 

Assets

   Level 1      Level 2      Level 3     Total  

Investments in Securities

 

Corporate Bonds

   $      $ 201,637,349      $ 656,196 (1)     $ 202,293,545 (1)  

Bank Loans

            24,529,729        14,167,702       38,697,431  

Asset Backed Security

            1,007,384              1,007,384  

Common Stocks

     860,699               1,757,149 (1)       2,617,848 (1)  

Preferred Stock

                   0 (1)       0 (1)  

Short-Term Investments

            9,745,604              9,745,604  
  

 

 

    

 

 

    

 

 

   

 

 

 
   $ 860,699      $ 236,920,066      $ 16,581,047 (1)     $ 254,361,812 (1)  
  

 

 

    

 

 

    

 

 

   

 

 

 

Other Financial Instruments*

 

 

Forward Foreign Currency Contracts

   $      $ 118,284      $     $ 118,284  

Liabilities

   Level 1      Level 2      Level 3     Total  

Other Financial Instruments*

 

 

Forward Foreign Currency Contracts

   $      $ 78,446      $     $ 78,446  

 

  (1)

Includes zero valued securities.

  *

Other financial instruments include unrealized appreciation (depreciation) on forward foreign currency contracts.

 

26


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 2. Significant Accounting Policies (continued)

 

The following is a reconciliation of investments as of June 30, 2018 for which significant unobservable inputs were used in determining value. All transfers, if any, are assumed to occur at the end of the reporting period.

 

     Corporate
Bonds
    Bank
Loans
     Common
Stocks
    Preferred
Stock
    Total  

Balance as of December 31, 2017

   $ 1,627,887     $ 8,431,068      $ 1,480,492 (1)     $ 0 (1)     $ 11,539,447 (1)  

Accrued discounts (premiums)

     19,797       22,657                    42,454  

Purchases

     248,170       4,058,692                    4,306,862  

Sales

     (182,580     (1,810,471                  (1,993,051

Realized gain (loss)

     921       3,047                    3,968  

Change in unrealized appreciation (depreciation)

     1,704       (5,196      276,657             273,165  

Transfers into Level 3

           5,915,702                    5,915,702  

Transfers out of Level 3

     (1,059,703     (2,447,797                  (3,507,500
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balance as of June 30, 2018

   $ 656,196 (1)     $ 14,167,702      $ 1,757,149 (1)     $ 0 (1)     $ 16,581,047 (1)  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation (depreciation) from investments still held as of June 30, 2018

   $ (10,361   $ 12,507      $ 276,657     $     $ 278,803  

 

  (1)

Includes zero valued securities.

Quantitative Disclosure About Significant Unobservable Inputs

 

Asset Class

   Fair Value
at 6/30/2018
     Valuation
Techniques
     Unobservable
Input
     Range (Weighted Average
per share)

Corporate Bonds

   $ 646,250        Market Approach        Comparable Bond Price      NA
   $ 9,946        Income Approach        Expected remaining distribution      $0.00—$0.04 ($0.00)

Bank Loans

   $ 14,019,648        Vendor Pricing        Single Broker Quote      $0.93—$1.02 ($1.00)
   $ 148,054        Market Approach        Comparable Bond Price      NA

Common Stocks

   $ 1,095,829        Vendor Pricing        Single Broker Quote      $19.00—$275.60 ($23.38)
   $ 661,272        Market Approach       
Comparable Bond Price,
Discounted Cash Flows
 
 
   $0.01—$57,712.20 ($1,141.68)
   $ 48        Market Approach       
Discount For Illiquidity and
EBITDA Multiples
 
 
   $0.00—$5.66 ($0.12)

Preferred Stock

   $ 0        Market Approach        Discount For Illiquidity      NA

Each fair value determination is based on a consideration of relevant factors, including both observable and unobservable inputs. Observable and unobservable inputs that Credit Suisse Asset Management, LLC, the Fund’s investment adviser (“Credit Suisse” or the “Adviser”) considers may include (i) the existence of any contractual restrictions on the disposition of securities; (ii) information obtained from the company, which may include an analysis of the company’s financial statements, the company’s products or intended markets or the company’s technologies; (iii) the price of the same or similar security negotiated at arm’s length in an issuer’s completed subsequent round of financing; (iv) the price and extent of public trading in similar securities of the issuer or of comparable companies; or (v) a probability and time value adjusted analysis of contractual term. Where available and appropriate, multiple valuation methodologies are applied to confirm fair value. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, determining fair value requires more judgment. Because of the inherent uncertainty of valuation, those estimated values may be materially higher or lower than the values that would have been used had a ready market for the investments existed. Accordingly, the degree of judgment exercised by the Fund in determining fair value is greatest for investments categorized in Level 3. In some circumstances, the inputs used to measure fair value might be

 

27


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 2. Significant Accounting Policies (continued)

 

categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is categorized in its entirety in the fair value hierarchy based on the least observable input that is significant to the fair value measurement. Additionally, changes in the market environment and other events that may occur over the life of the investments may cause the gains or losses ultimately realized on these investments to be different from the valuations used at the date of these financial statements.

For the six months ended June 30, 2018, there were no transfers between Level 1 and Level 2, but there was $5,915,702 transferred from Level 2 to Level 3 due to a lack of a pricing source supported by observable inputs and $3,507,500 transferred from Level 3 to Level 2 as a result of the availability of a pricing source supported by observable inputs. All transfers, if any, are assumed to occur at the end of the reporting period.

B) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES — The Fund adopted amendments to authoritative guidance on disclosures about derivative instruments and hedging activities which require that a fund disclose (a) how and why an entity uses derivative instruments, (b) how derivative instruments and hedging activities are accounted for and (c) how derivative instruments and related hedging activities affect a fund’s financial position, financial performance and cash flows.

The following table presents the fair value and the location of derivatives within the Statement of Assets and Liabilities at June 30, 2018 and the effect of these derivatives on the Statement of Operations for the six months ended June 30, 2018.

 

Primary Underlying Risk

   Derivative
Assets
     Derivative
Liabilities
     Realized
Gain (Loss)
     Change in
Unrealized
Appreciation
(Depreciation)
 

Foreign currency exchange rate

           

forward contracts

   $ 118,284      $ 78,446      $      $ 139,407  

For the six months ended June 30, 2018, the Fund held an average monthly value on a net basis of $8,874,747 in forward foreign currency contracts.

The Fund is a party to International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”) with certain counterparties that govern over-the-counter derivative (including Total Return, Credit Default and Interest Rate Swaps) and foreign exchange contracts entered into by the Fund. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. Termination events applicable to the Fund may occur upon a decline in the Fund’s net assets below a specified threshold over a certain period of time.

The following table presents by counterparty the Fund’s derivative assets, net of related collateral held by the Fund, at June 30, 2018:

 

Counterparty

   Gross Amount of
Assets Presented in the
Statement of Assets
and Liabilities(a)
     Financial
Instruments
and Derivatives
Available for Offset
     Non-Cash
Collateral
Received
     Cash
Collateral
Received
     Net Amount
of Derivative
Assets
 

Morgan Stanley

   $ 118,284      $ (78,446    $      $      $ 39,838  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

28


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 2. Significant Accounting Policies (continued)

 

The following table presents by counterparty the Fund’s derivative liabilities, net of related collateral pledged by the Fund, at June 30, 2018:

 

Counterparty

   Gross Amount of
Liabilities Presented in the
Statement of Assets
and Liabilities(a)
     Financial
Instruments
and Derivatives
Available for Offset
     Non-Cash
Collateral
Pledged
     Cash
Collateral
Pledged
     Net Amount
of Derivative
Liabilities
 

Morgan Stanley

   $ 78,446      $ (78,446    $      $      $  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

  (a)

Forward foreign currency contracts are included.

C) FOREIGN CURRENCY TRANSACTIONS — The books and records of the Fund are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Reported net realized gain (loss) from foreign currency transactions arises from sales of foreign currencies; currency gains or losses realized between the trade and settlement dates on securities transactions; and the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net change in unrealized gains and losses on translation of assets and liabilities denominated in foreign currencies arises from changes in the fair values of assets and liabilities, other than investments, at the end of the period, resulting from changes in exchange rates. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates on investments from the fluctuations arising from changes in market prices of investments held. Such fluctuations are included with net realized and unrealized gain or loss from investments in the Statement of Operations.

D) SECURITY TRANSACTIONS AND INVESTMENT INCOME/EXPENSE — Security transactions are accounted for on a trade date basis. Interest income/expense is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method. Dividend income/expense is recorded on the ex-dividend date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. To the extent any issuer defaults or a credit event occurs that impacts the issuer, the Fund may halt any additional interest income accruals and consider the realizability of interest accrued up to the date of default or credit event.

E) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS — The Fund declares and pays dividends on a monthly basis and records them on ex-date. Distributions of net realized capital gains, if any, are declared and paid at least annually. However, to the extent that a net realized capital gain can be reduced by a capital loss carryforward, such gain will not be distributed. Dividends and distributions to shareholders of the Fund are recorded on the ex-dividend date and are determined in accordance with federal income tax regulations, which may differ from GAAP.

The Fund’s dividend policy is to distribute substantially all of its net investment income to its shareholders on a monthly basis. However, in order to provide shareholders with a more consistent yield to the current trading price of shares of common stock of the Fund, the Fund may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Fund for any particular month may be more or less than the amount of net investment income earned by the Fund during such month.

 

29


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 2. Significant Accounting Policies (continued)

 

F) FEDERAL AND OTHER TAXES — No provision is made for federal taxes as it is the Fund’s intention to continue to qualify as a regulated investment company (“RIC”) under the Internal Revenue Code of 1986, as amended (the “Code”), and to make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes.

In order to qualify as a RIC under the Code, the Fund must meet certain requirements regarding the source of its income, the diversification of its assets and the distribution of its income. One of these requirements is that the Fund derive at least 90% of its gross income for each taxable year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, other income derived with respect to its business of investing in such stock, securities or currencies or net income derived from interests in certain publicly-traded partnerships (“Qualifying Income”).

The Fund adopted the authoritative guidance for uncertainty in income taxes and recognizes a tax benefit or liability from an uncertain position only if it is more likely than not that the position is sustainable based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and procedures. The Fund has reviewed its current tax positions and has determined that no provision for income tax is required in the Fund’s financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

G) SHORT-TERM INVESTMENTS — The Fund, together with other funds/portfolios advised by Credit Suisse, pools available cash into a short-term variable rate time deposit issued by State Street Bank and Trust Company (“SSB”), the Fund’s custodian. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment.

H) CASH FLOW INFORMATION — Cash, as used in the Statement of Cash Flows, is the amount reported in the Statement of Assets and Liabilities, including domestic and foreign currencies. The Fund invests in securities and distributes dividends from net investment income and net realized gains, if any (which are either paid in cash or reinvested at the discretion of shareholders). These activities are reported in the Statement of Changes in Net Assets. Information on cash payments is presented in the Statement of Cash Flows. Accounting practices that do not affect reporting activities on a cash basis include unrealized gain or loss on investment securities and accretion or amortization income/expense recognized on investment securities.

I) FORWARD FOREIGN CURRENCY CONTRACTS — A forward foreign currency exchange contract (“forward currency contract”) is a commitment to purchase or sell a foreign currency at the settlement date at a negotiated rate. The Fund will enter into forward currency contracts primarily for hedging foreign currency risk. Forward currency contracts are valued at the prevailing forward exchange rate of the underlying currencies and unrealized gain/loss is recorded daily. On the settlement date of the forward currency contract, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it was closed. Certain risks may arise upon entering into forward currency contracts from the potential inability of counterparties to meet the terms of their contracts. The maximum counterparty credit risk to the Fund is measured by the unrealized gain on appreciated contracts. Additionally, when utilizing forward currency contracts to hedge, the Fund forgoes the opportunity to profit from favorable exchange rate movements during the term of the contract. The Fund’s open forward currency contracts at June 30, 2018 are disclosed in the Schedule of Investments.

 

30


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 2. Significant Accounting Policies (continued)

 

J) SECURITIES LENDING — The initial collateral received by the Fund is required to have a value of at least 102% of the market value of domestic securities on loan (including any accrued interest thereon) and 105% of the market value of foreign securities on loan (including any accrued interest thereon). The collateral is maintained thereafter at a value equal to at least 102% of the current market value of the securities on loan. The market value of loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. Cash collateral received by the Fund in connection with securities lending activity may be pooled together with cash collateral for other funds/portfolios advised by Credit Suisse and may be invested in a variety of investments, including funds advised by SSB, the Fund’s securities lending agent, or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.

SSB has been engaged by the Fund to act as the Fund’s securities lending agent. As of June 30, 2018, the Fund had investment securities on loan with a fair value of $4,258,636. Collateral received for securities loaned and a related liability of $4,301,063 are presented gross in the Statement of Assets and Liabilities. The collateral for securities loaned is valued consistently to the other investments held by the Fund and is included in Level 2 of the fair value hierarchy. As of June 30, 2018, the value of the related collateral exceeded the value of the securities loaned.

The Fund’s securities lending arrangement provides that the Fund and SSB will share the net income earned from securities lending activities. Securities lending income is accrued as earned. During the six months ended June 30, 2018, total earnings from the Fund’s investment in cash collateral received in connection with securities lending arrangements was $39,387, of which $17,566 was rebated to borrowers (brokers). The Fund retained $16,335 in income from the cash collateral investment, and SSB, as lending agent, was paid $5,486.

K) OTHER — Lower-rated debt securities (commonly known as “junk bonds”) possess speculative characteristics and are subject to greater market fluctuations and risk of lost income and principal than higher-rated debt securities for a variety of reasons. Also, during an economic downturn or substantial period of rising interest rates, highly leveraged issuers may experience financial stress which would adversely affect their ability to service their principal and interest payment obligations, to meet projected business goals and to obtain additional financing.

In the normal course of business the Fund trades financial instruments and enters into financial transactions for which risk of potential loss exists due to changes in the market (market risk) or failure of the other party to a transaction to perform (credit risk). Similar to credit risk, the Fund may be exposed to counterparty risk, including securities lending, or the risk that an institution or other entity with which the Fund has unsettled or open transactions will default. The potential loss could exceed the value of the financial assets recorded in the financial statements. Financial assets, which potentially expose the Fund to credit risk, consist principally of cash due from counterparties and investments. The extent of the Fund’s exposure to credit and counterparty risks in respect to these financial assets approximates their carrying value as recorded in the Fund’s Statement of Assets and Liabilities.

In addition, periods of economic uncertainty and changes can be expected to result in increased volatility of market prices of lower-rated debt securities and the Fund’s net asset value.

L) RECENT ACCOUNTING PRONOUNCEMENTS — In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, “final rules”) intended to modernize the

 

31


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 2. Significant Accounting Policies (continued)

 

reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X was August 1, 2017. The Fund has adopted the amendments to Regulation S-X and upon evaluation, has concluded that the amendments do not materially impact the financial statements. However, as required, additional or enhanced disclosure has been included.

M) SUBSEQUENT EVENTS — In preparing the financial statements as of June 30, 2018, management considered the impact of subsequent events for potential recognition or disclosure in these financial statements through the date of release of this report. No such events requiring recognition or disclosure were identified through the date of the release of this report.

Note 3. Transactions with Affiliates and Related Parties

Credit Suisse serves as investment adviser for the Fund. For its investment advisory services, Credit Suisse is entitled to receive a fee from the Fund at a rate per annum, computed weekly and paid quarterly as follows: 0.50% of the lower of the weekly stock price (market value) of the Fund’s outstanding shares or its average weekly net assets. For the six months ended June 30, 2018, investment advisory fees earned were $417,654.

SSB serves as Accounting and Administrative Agent for the Fund. For its administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon the relative average net assets of each fund/portfolio, subject to an annual minimum fee. For the six months ended June 30, 2018, administrative services fees earned by SSB (including out-of-pocket expenses) with respect to the Fund were $29,755.

Prior to March 12, 2018, the Independent Directors received a minimum of fifty percent (50%) of their annual retainer in the form of shares. During the six months ended June 30, 2018 and the year ended December 31, 2017, 0 shares and 13,164 shares, respectively, were issued through the Directors’ compensation plan. Directors as a group own less than 1% of the Fund’s outstanding shares.

The Fund from time to time purchases or sells loan investments in the secondary market through Credit Suisse or its affiliates acting in the capacity as broker-dealer. Credit Suisse or its affiliates may have acted in some type of agent capacity to the initial loan offering prior to such loan trading in the secondary market.

Note 4. Line of Credit

The Fund has a line of credit subject to annual renewal provided by SSB primarily to leverage its investment portfolio (the “SSB Agreement”). The Fund may borrow the lesser of: a) $90,000,000; b) an amount that is no greater than 33 1/3% of the Fund’s total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage); and c) the Borrowing Base as defined in the SSB Agreement. Under the terms of the SSB Agreement, the Fund pays a commitment fee of 0.25% on the unused amount. In addition, the Fund pays interest on borrowings at LIBOR plus a spread. At June 30, 2018, the Fund had loans outstanding under the SSB Agreement of $73,000,000. During the six months ended June 30, 2018, the Fund had borrowings under the SSB Agreement as follows:

 

Average Daily
Loan Balance
    Weighted Average
Interest Rate %
    Maximum Daily
Loan Outstanding
    Interest Expense  
$ 66,596,685       2.52   $ 80,500,000     $ 842,496  

 

32


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 4. Line of Credit (continued)

 

The use of leverage by the Fund creates an opportunity for increased net income and capital appreciation for the Fund, but, at the same time, creates special risks, and there can be no assurance that a leveraging strategy will be successful during any period in which it is employed. The Fund intends to utilize leverage to provide the shareholders with a potentially higher return. Leverage creates risks for shareholders including the likelihood of greater volatility of net asset value and market price of the Fund’s shares and the risk that fluctuations in interest rates on borrowings and short-term debt may affect the return to shareholders. To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income or capital appreciation from the securities purchased with such funds is not sufficient to cover the cost of leverage, the return to the Fund will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders as dividends and other distributions will be reduced. In the latter case, Credit Suisse in its best judgment nevertheless may determine to maintain the Fund’s leveraged position if it deems such action to be appropriate under the circumstances.

Certain types of borrowings by the Fund may result in the Fund being subject to covenants in credit agreements, including those relating to asset coverage and portfolio composition requirements. The Fund’s lenders may establish guidelines for borrowing which may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the 1940 Act. There is no guarantee that the Fund’s borrowing arrangements or other arrangements for obtaining leverage will continue to be available, or if available, will be available on terms and conditions acceptable to the Fund. Expiration or termination of available financing for leveraged positions can result in adverse effects to the Fund’s access to liquidity and its ability to maintain leverage positions, and may cause the Fund to incur losses. Unfavorable economic conditions also could increase funding costs, limit access to the capital markets or result in a decision by lenders not to extend credit to the Fund. In addition, a decline in market value of the Fund’s assets may have particular adverse consequences in instances where the Fund has borrowed money based on the market value of those assets. A decrease in market value of those assets may result in the lender requiring the Fund to sell assets at a time when it may not be in the Fund’s best interest to do so.

Note 5. Purchases and Sales of Securities

For the six months ended June 30, 2018, purchases and sales of investment securities (excluding short-term investments) were $76,781,735 and $52,565,469, respectively.

Note 6. Fund Shares

The Fund offers a Dividend Reinvestment Plan (the “Plan”) to its common stockholders. By participating in the Plan, dividends and distributions will be promptly paid to stockholders in additional shares of common stock of the Fund. The number of shares to be issued will be determined by dividing the total amount of the distribution payable by the greater of (i) the net asset value per share (“NAV”) of the Fund’s common stock on the payment date, or (ii) 95% of the market price per share of the Fund’s common stock on the payment date. If the NAV of the Fund’s common stock is greater than the market price (plus estimated brokerage commissions) on the payment date, Computershare (or a broker-dealer selected by Computershare) shall endeavor to apply the amount of such distribution to purchase shares of Fund common stock in the open market.

 

33


Credit Suisse Asset Management Income Fund, Inc.

Notes to Financial Statements (continued)

June 30, 2018 (unaudited)

 

 

Note 6. Fund Shares (continued)

 

The Fund has one class of shares of common stock, par value $.001 per share; one hundred million shares are authorized. Transactions in shares of common stock were as follows:

 

     For the
Six Months Ended
June 30, 2018
(unaudited)
     For the Year Ended
December 31, 2017
 

Shares issued through the Directors compensation plan

     0        13,164  
  

 

 

    

 

 

 

Net increase

     0        13,164  
  

 

 

    

 

 

 

Note 7. Contingencies

In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.

 

34


Credit Suisse Asset Management Income Fund, Inc.

Shareholder Meeting Results (unaudited)

 

 

On April 24, 2018, the Annual Meeting of Shareholders of the Credit Suisse Asset Management Income Fund, Inc. (the “Fund”) was held and the following matter was voted upon:

(1) To elect five Directors to the Board of Directors of the Fund:

 

NOMINEE   

“FOR” NOMINEE

  

WITHHELD

Laura A. DeFelice

   35,447,760    12,880,309

Lawrence J. Fox

   35,115,953    13,212,116

Jeffrey E. Garten

   35,396,285    12,931,784

Mahendra R. Gupta

   35,321,033    13,007,036

John G. Popp

   35,387,946    12,940,123

In addition to the Directors elected at the meeting, Terry Bovarnick, James J. Cattano and Steven N. Rappaport continue to serve as Directors of the Fund.

 

35


Credit Suisse Asset Management Income Fund, Inc.

Notice of Privacy and Information Practices (unaudited)

 

 

At Credit Suisse, we know that you are concerned with how we protect and handle nonpublic personal information that identifies you. This notice is designed to help you understand what nonpublic personal information we collect from you and from other sources, and how we use that information in connection with your investments and investment choices that may be available to you. Except where otherwise noted, this notice is applicable only to consumers who are current or former investors, meaning individual persons whose investments are primarily for household, family or personal use (“individual investors”). Specified sections of this notice, however, also apply to other types of investors (called “institutional investors”). Where the notice applies to institutional investors, the notice expressly states so. This notice is being provided by Credit Suisse Funds and Credit Suisse Closed-End Funds. This notice applies solely to U.S. registered investment companies advised by Credit Suisse Asset Management, LLC.

Categories of information we may collect:

We may collect information about you, including nonpublic personal information, such as

 

   

Information we receive from you on applications, forms, agreements, questionnaires, Credit Suisse websites and other websites that are part of our investment program, or in the course of establishing or maintaining a customer relationship, such as your name, address, e-mail address, Social Security number, assets, income, financial situation; and

 

   

Information we obtain from your transactions and experiences with us, our affiliates, or others, such as your account balances or other investment information, assets purchased and sold, and other parties to a transaction, where applicable.

Categories of information we disclose and parties to whom we disclose it:

 

   

We do not disclose nonpublic personal information about our individual investors, except as permitted or required by law or regulation. Whether you are an individual investor or institutional investor, we may share the information described above with our affiliates that perform services on our behalf, and with our asset management and private banking affiliates; as well as with unaffiliated third parties that perform services on our behalf, such as our accountants, auditors, attorneys, broker-dealers, fund administrators, and other service providers.

 

   

We want our investors to be informed about additional products or services. We do not disclose nonpublic personal information relating to individual investors to our affiliates for marketing purposes, nor do we use such information received from our affiliates to solicit individual investors for such purposes. Whether you are an individual investor or an institutional investor, we may disclose information, including nonpublic personal information, regarding our transactions and experiences with you to our affiliates.

 

   

In addition, whether you are an individual investor or an institutional investor, we reserve the right to disclose information, including nonpublic personal information, about you to any person or entity, including without limitation any governmental agency, regulatory authority or self-regulatory organization having jurisdiction over us or our affiliates, if (i) we determine in our discretion that such disclosure is necessary or advisable pursuant to or in connection with any United States federal, state or local, or non-U.S., court order (or other legal process), law, rule, regulation, or executive order or policy, including without limitation any anti-money laundering law or the USA PATRIOT Act of 2001; and (ii) such disclosure is not otherwise prohibited by law, rule, regulation, or executive order or policy.

 

36


Credit Suisse Asset Management Income Fund, Inc.

Notice of Privacy and Information Practices (unaudited) (continued)

 

 

Confidentiality and security

 

   

To protect nonpublic personal information about individual investors, we restrict access to those employees and agents who need to know that information to provide products or services to us and to our investors. We maintain physical, electronic, and procedural safeguards to protect nonpublic personal information.

Other Disclosures

This notice is not intended to be incorporated in any offering materials, but is a statement of our current Notice of Privacy and Information Practices and may be amended from time to time. This notice is current as of May 22, 2018.

 

37


Credit Suisse Asset Management Income Fund, Inc.

Proxy Voting and Portfolio Holdings Information (unaudited)

 

 

Information regarding how the Fund voted proxies related to its portfolio securities during the 12-month period ended June 30 of each year, as well as the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available:

 

   

By calling 1-800-293-1232

 

   

On the Fund’s website, www.credit-suisse.com/us/funds

 

   

On the website of the Securities and Exchange Commission, www.sec.gov

The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-202-551-8090.

Funds Managed by Credit Suisse Asset Management, LLC

 

CLOSED-END FUNDS

Fixed Income

Credit Suisse Asset Management Income Fund, Inc. (NYSE American: CIK)

Credit Suisse High Yield Bond Fund (NYSE American: DHY)

Literature Request — Call today for free descriptive information on the closed-ended funds listed above at 1-800-293-1232 or visit our website at www.credit-suisse.com/us/funds

 

 

OPEN-END FUNDS

 

Credit Suisse Commodity Return Strategy Fund    Credit Suisse Strategic Income Fund
Credit Suisse Floating Rate High Income Fund    Credit Suisse Managed Futures Strategy Fund
Credit Suisse Multialternative Strategy Fund   

Fund shares are not deposits or other obligation of Credit Suisse Asset Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by Credit Suisse Asset Management, LLC or any affiliate. Fund investments are subject to investment risks, including loss of your investment. There are special risk considerations associated with international, global, emerging-markets, small-company, private equity, high-yield debt, single-industry, single-country and other special, aggressive or concentrated investment strategies. Past performance cannot guarantee future results.

More complete information about a fund, including charges and expenses, is provided in the Prospectus, which should be read carefully before investing. You may obtain copies by calling Credit Suisse Funds at 1-877-870-2874. Performance information current to the most recent month-end is available at www.credit-suisse.com/us/funds.

Credit Suisse Securities (USA) LLC, Distributor.

 

38


Credit Suisse Asset Management Income Fund, Inc.

Dividend Reinvestment and Cash Purchase Plan (unaudited)

 

 

Credit Suisse Asset Management Income Fund, Inc. (the “Fund”) offers a Dividend Reinvestment and Cash Purchase Plan (the “Plan”) to its common stockholders. The Plan offers common stockholders a prompt and simple way to reinvest net investment income dividends and capital gains and other periodic distributions in shares of the Fund’s common stock. Computershare Trust Company, N.A. (“Computershare”) acts as Plan Agent for stockholders in administering the Plan.

If your shares of common stock of the Fund are registered in your own name, you will automatically participate in the Plan, unless you have indicated that you do not wish to participate and instead wish to receive dividends and capital gains distributions in cash. If you are a beneficial owner of the Fund having your shares registered in the name of a bank, broker or other nominee, you must first make arrangements with the organization in whose name your shares are registered to have the shares transferred into your own name. Registered shareholders can join the Plan via the Internet by going to www.computershare.com, authenticating your online account, agreeing to the Terms and Conditions of online “Account Access” and completing an online Plan Enrollment Form. Alternatively, you can complete the Plan Enrollment Form and return it to Computershare at the address below.

By participating in the Plan, your dividends and distributions will be promptly paid to you in additional shares of common stock of the Fund. The number of shares to be issued to you will be determined by dividing the total amount of the distribution payable to you by the greater of (i) the net asset value per share (“NAV”) of the Fund’s common stock on the payment date, or (ii) 95% of the market price per share of the Fund’s common stock on the payment date. If the NAV of the Fund’s common stock is greater than the market price (plus estimated brokerage commissions) on the payment date, then Computershare (or a broker-dealer selected by Computershare) shall endeavor to apply the amount of such distribution on your shares to purchase shares of Fund common stock in the open market.

You should be aware that all net investment income dividends and capital gain distributions are taxable to you as ordinary income and capital gain, respectively, whether received in cash or reinvested in additional shares of the Fund’s common stock.

The Plan also permits participants to purchase shares of the Fund through Computershare. You may invest $100 or more monthly, with a maximum of $100,000 in any annual period. Computershare will purchase shares for you on the open market on the 25th of each month or the next trading day if the 25th is not a trading day.

There is no service fee payable by Plan participants for dividend reinvestment. For voluntary cash payments, Plan participants must pay a service fee of $5.00 per transaction. Plan participants will also be charged a pro rata share of the brokerage commissions for all open market purchases ($0.03 per share as of October 2006). Participants will also be charged a service fee of $5.00 for each sale and brokerage commissions of $0.03 per share (as of October 2006).

You may terminate your participation in the Plan at any time by notifying Computershare or requesting a sale of your shares held in the Plan. Your withdrawal will be effective immediately if your notice is received by Computershare prior to any dividend or distribution record date; otherwise, such termination will be effective only with respect to any subsequent dividend or distribution. Your dividend participation option will remain the same unless you withdraw all of your whole and fractional Plan shares, in which case your participation in the Plan will be terminated and you will receive subsequent dividends and capital gains distributions in cash instead of shares.

 

39


Credit Suisse Asset Management Income Fund, Inc.

Dividend Reinvestment and Cash Purchase Plan (unaudited) (continued)

 

 

If you want further information about the Plan, including a brochure describing the Plan in greater detail, please contact Computershare as follows:

 

  By Internet:

www.computershare.com

 

  By phone:

(800) 730-6001 (U.S. and Canada)

   

(781) 575-3100 (Outside U.S. and Canada)

Customer service associates are available from 9:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday

 

  By mail:

Credit Suisse Asset Management Income Fund, Inc.

   

c/o Computershare

   

P.O. Box 30170

   

College Station, TX 77842-3170

Overnight correspondence should be sent to:

   

Computershare

   

211 Quality Circle, Suite 210

   

College Station, TX 77845

All notices, correspondence, questions or other communications sent by mail should be sent by registered or certified mail, return receipt requested.

The Plan may be terminated by the Fund or Computershare upon notice in writing mailed to each participant at least 30 days prior to any record date for the payment of any dividend or distribution.

 

40


 

 

 

 

This report, including the financial statements herein, is sent to the shareholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.

 

 

CIK-SAR-0618


Item 2. Code of Ethics.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 3. Audit Committee Financial Expert.

This item is inapplicable to a semi-annual report on Form N-CSR.


Item 4. Principal Accountant Fees and Services.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 6. Schedule of Investments.

 

  (a)

This schedule is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.

 

  (b)

Not applicable.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

None.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors since the registrant last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(g) of Schedule 14A in its definitive proxy statement dated March 16, 2018.

Item 11. Controls and Procedures.

(a) As of a date within 90 days from the filing date of this report, the principal executive officer and principal financial officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) were effective based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934.

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


Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

This item is inapplicable to a semi-annual report on Form N-CSR.

Item 13. Exhibits.

(a)(1) Not applicable.

(a)(2) The certifications of the registrant as required by Rule 30a-2(a) under the Act are exhibits to this report.

(a)(3) Not applicable.

(b) The certifications of the registrant as required by Rule 30a-2(b) under the Act are an exhibit to this report.


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.

CREDIT SUISSE ASSET MANAGEMENT INCOME FUND, INC.

 

 

/s/ John G. Popp

  Name:   John G. Popp
  Title:   Chief Executive Officer and President
  Date:   August 24, 2018

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

 

 

/s/ John G. Popp

  Name:   John G. Popp
  Title:   Chief Executive Officer and President
  Date:   August 24, 2018

 

 

/s/ Laurie Pecha

  Name:   Laurie Pecha
  Title:   Chief Financial Officer and Treasurer
  Date:   August 24, 2018