UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

Quarterly Schedule of Portfolio Holdings of

Registered Management Investment Company

Investment Company Act File Number: 811-05446

Intermediate Bond Fund of America

(Exact Name of Registrant as specified in charter)

333 South Hope Street,

Los Angeles, California 90071

(Address of principal executive offices)

Registrant's telephone number, including area code: (213) 486-9200

Date of fiscal year end: August 31

Date of reporting period: May 31, 2006

Kimberly S. Verdick

Capital Research and Management Company

333 South Hope Street

Los Angeles, California 90071

(name and address of agent for service)

Copies to:

Michael Glazer

Paul, Hastings, Janofsky & Walker LLP

515 South Flower Street

Los Angeles, California 90071

(Counsel for the Registrant)

ITEM 1 - Schedule of Investments

[Logo - American Funds®]

Intermediate Bond Fund of America^®

Investment portfolio

May 31, 2006

unaudited

Bonds & notes — 95.52%	Principal amount (000)			Market value (000)
CORPORATE BONDS & NOTES — 26.29%
Financials — 15.57%
Citigroup Inc. 4.20% 2007	$	29,500		$	28,981
Citigroup Inc. 4.125% 2010		13,150			12,540
Citigroup Inc. 4.625% 2010		3,000			2,903
Citigroup Inc. 5.625% 2012		3,000			2,984
Prudential Insurance Co. of America 6.375% 20061		13,250			13,268
PRICOA Global Funding I, Series 2003-2, 3.90% 20081		10,000			9,603
PRICOA Global Funding I, Series 2004-4, 4.35% 20081		3,000			2,928
Prudential Funding, LLC, Series B, 6.60% 20081		11,795			12,019
PRICOA Global Funding I 4.20% 20101		10,000			9,522
J.P. Morgan Chase & Co. 5.625% 2006		5,000			5,003
J.P. Morgan Chase & Co. 5.35% 2007		6,050			6,048
Bank One Corp. 2.625% 2008		6,000			5,667
J.P. Morgan Chase & Co. 4.00% 2008		15,000			14,653
J.P. Morgan Chase & Co. 3.50% 2009		5,000			4,748
J.P. Morgan Chase & Co. 4.75% 2015		3,500			3,234
J.P. Morgan Chase & Co. 4.891% 2015		5,000			4,830
USA Education, Inc. 5.625% 2007		9,035			9,047
SLM Corp., Series A, 3.625% 2008		5,000			4,835
SLM Corp., Series A, 3.95% 2008		3,000			2,894
SLM Corp., Series A, 4.00% 2009		12,250			11,800
SLM Corp., Series A, 4.80% 20092		5,000			4,862
SLM Corp., Series A, 5.24% 20092		5,000			5,008
SLM Corp., Series A, 4.50% 2010		5,000			4,789
Household Finance Corp. 5.75% 2007		8,000			8,021
Household Finance Corp. 7.875% 2007		6,250			6,357
Household Finance Corp. 4.125% 2008		13,500			13,066
Household Finance Corp. 6.40% 2008		10,000			10,170
HSBC Finance Corp. 5.00% 2015		3,625			3,360
ASIF Global Financing XVIII 3.85% 20071		8,000			7,818
International Lease Finance Corp. 4.50% 2008		3,000			2,943
International Lease Finance Corp. 4.75% 2009		7,000			6,826
American International Group, Inc. 4.70% 20101		3,000			2,899
International Lease Finance Corp. 5.00% 2010		3,280			3,201
American International Group, Inc. 5.05% 20151		4,000			3,760
ILFC E-Capital Trust I 5.90% 20651,2		7,000			6,846
Washington Mutual, Inc. 7.50% 2006		15,500			15,565
Washington Mutual, Inc. 5.625% 2007		4,600			4,603
Washington Mutual, Inc. 4.00% 2009		8,000			7,700
Washington Mutual, Inc. 5.95% 2013		5,000			4,973
SocGen Real Estate Co. LLC, Series A, 7.64% (undated)1,2		13,500			13,815
Société Générale 7.85% (undated)1,2		14,000			14,285
Monumental Global Funding II, Series 2002-A, 5.20% 20071		13,500			13,486
Monumental Global Funding II, Series 2004-B, 3.90% 20091		5,000			4,769
Monumental Global Funding II, Series 2004-F, 4.375% 20091		2,000			1,931
Monumental Global Funding II, Series 2006-A, 5.083% 20091,2		2,000			2,002
Monumental Global Funding II, Series 2005-B, 4.625% 20101		2,500			2,416
Jackson National Life Global Funding, Series 2002-1, 5.25% 20071		24,500			24,368
Price REIT, Inc. 7.50% 2006		5,000			5,037
Kimco Realty Corp., Series C, 3.95% 2008		7,000			6,788
Kimco Realty Corp., Series C, 4.82% 2014		795			731
Kimco Realty Corp., Series C, 4.904% 2015		7,500			6,946
Kimco Realty Corp., Series C, 5.783% 2016		4,500			4,398
Wells Fargo & Co. 4.125% 2008		17,000			16,618
Wells Fargo & Co. 4.20% 2010		7,500			7,179
Westfield Capital Corp. Ltd. and WT Finance (Australia) Pty Ltd. and WEA Finance LLC 4.375% 20101		24,885			23,552
Genworth Financial, Inc. 5.06% 20072		12,000			12,026
Genworth Financial, Inc. 4.75% 2009		10,000			9,797
ReliaStar Financial Corp. 8.00% 2006		11,470			11,583
ING Security Life Institutional Funding 2.70% 20071		2,000			1,957
ReliaStar Financial Corp. 6.50% 2008		4,000			4,074
ING Security Life Institutional Funding 4.25% 20101		3,000			2,881
Hartford Financial Services Group, Inc. 2.375% 2006		10,375			10,375
Hartford Financial Services Group, Inc. 4.70% 2007		4,000			3,959
Hartford Financial Services Group, Inc. 5.55% 2008		5,805			5,803
John Hancock Global Funding II, Series 2002-G, 5.00% 20071		19,000			18,861
XL Capital Finance (Europe) PLC 6.50% 2012		4,725			4,816
XL Capital Ltd. 5.25% 2014		4,000			3,728
Twin Reefs Asset Trust (XLFA), Series B, 6.08% (undated)1,2		9,700			9,701
U.S. Bancorp 4.40% 2008		17,000			16,656
American Express Credit Corp. 3.00% 2008		5,000			4,776
American Express Co. 4.75% 2009		5,000			4,903
American Express Credit Corp., Series B, 5.00% 2010		7,000			6,851
HBOS Treasury Services PLC 3.625% 20071		11,500			11,281
HBOS PLC, Series B, 5.92% (undated)1,2		5,000			4,639
Metropolitan Life Global Funding I, Series 2004-10, 3.375% 20071		12,000			11,626
Metropolitan Life Global Funding I, Series 2004-7, 4.25% 20091		4,000			3,861
Nationwide Life Insurance Co. 5.35% 20071		12,850			12,846
North Front Pass Through Trust 5.81% 20241,2		2,000			1,907
Banco Santander Central Hispano, SA 7.625% 2010		3,000			3,221
Abbey National PLC 6.70% (undated)2		3,022			3,072
Abbey National PLC 7.35% (undated)2		8,000			8,065
CIT Group Inc. 3.65% 2007		7,835			7,631
CIT Group Inc. 7.375% 2007		3,500			3,556
CIT Group Inc. 6.875% 2009		3,000			3,107
New York Life Global Funding 3.875% 20091		6,750			6,480
New York Life Global Funding 4.625% 20101		5,000			4,819
Principal Life Global Funding I 4.40% 20101		9,000			8,541
Principal Life Income Fundings Trust, Series 2005-34, 5.20% 2010		2,000			1,964
Protective Life Insurance Co., Series 2004-D, 4.00% 2009		3,000			2,885
Protective Life Insurance Co., Series 2005-C, 4.85% 2010		7,750			7,564
National Westminster Bank PLC 7.375% 2009		7,000			7,432
National Westminster Bank PLC 7.75% (undated)2		2,350			2,412
SunTrust Banks, Inc. 4.415% 2009		10,000			9,700
Signet Bank 7.80% 2006		2,000			2,013
Wachovia Corp., Series G, 4.375% 2010		8,000			7,661
Lincoln National Corp. 6.50% 2008		8,385			8,523
Skandinaviska Enskilda Banken 6.875% 2009		7,930			8,158
Berkshire Hathaway Finance Corp. 4.125% 2010		8,000			7,615
Bank of America Corp. 6.625% 2007		200			203
Bank of America Corp. 4.50% 2010		7,000			6,740
Allstate Financial Global Funding LLC 5.25% 20071		4,750			4,745
Allstate Life Global Funding 4.25% 2010		2,000			1,914
Union Bank of California 5.95% 2016		5,750			5,731
Principal Life Insurance Co. 3.20% 2009		6,000			5,665
Simon Property Group, LP 5.75% 2012		5,000			4,969
Korea Development Bank 4.625% 2010		5,000			4,805
UniCredito Italiano 4.85% 20072		3,000			3,000
UniCredito Italiano Capital Trust II 9.20% (undated)1		1,246			1,401
PNC Funding Corp. 5.125% 2010		4,000			3,920
Merita Bank Ltd. 7.50% (undated)1,2		2,825			2,858
ERP Operating LP 6.625% 2012		2,000			2,081
Barclays Bank PLC 7.40% 2009		1,250			1,322
Den Danske Bank A/S 7.40% 20101,2		500			510
					781,785
Industrials — 2.70%
General Electric Capital Corp., Series A, 5.00% 2007		23,000			22,919
General Electric Capital Corp., Series A, 5.375% 2007		10,000			10,005
General Electric Capital Corp., Series A, 3.50% 2008		4,000			3,862
General Electric Capital Corp., Series A, 6.00% 2012		2,500			2,543
General Electric Capital Corp., Series A, 5.00% 2016		5,000			4,713
General Electric Co. 5.00% 2013		2,000			1,926
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class B, 7.156% 20111,3		19,934			20,483
BAE SYSTEMS 2001 Asset Trust, Series 2001, Class G, MBIA insured, 6.664% 20131,3		2,229			2,304
John Deere Capital Corp., Series D, 4.375% 2008		21,500			21,095
Caterpillar Inc. 4.50% 2009		16,750			16,283
Delta Air Lines, Inc., Series 2002-1, Class G-2, MBIA insured, 6.417% 2014		13,860			14,009
Continental Airlines, Inc., Series 2006-1, Class G, FGIC insured, 5.56% 20152		10,000			10,000
Burlington Northern and Santa Fe Railway Co. Pass Through Trust, Series 1996-B, 6.96% 20093		2,833			2,894
Burlington Northern and Santa Fe Railway Co. Pass Through Trust, Series 2002-1, 5.943% 20223		474			476
Southern Capital Corp. Pass Through Trust, Series 2002-1, Class G, MBIA insured, 5.70% 20231,3		1,225			1,198
Southwest Airlines Co., Series 2001-1, Class A-2, 5.496% 20063		1,000			1,001
					135,711
Telecommunication services — 2.33%
SBC Communications Inc. 6.25% 2011		34,250			34,871
BellSouth Corp. 4.20% 2009		18,000			17,198
France Télécom 7.75% 20112		12,500			13,513
Verizon Wireless Capital LLC and Cellco Partnership 5.375% 2006		11,000			10,995
Vodafone Group PLC 7.75% 2010		9,525			10,125
Singapore Telecommunications Ltd. 6.375% 20111		7,000			7,193
Deutsche Telekom International Finance BV 8.50% 20102		5,000			5,404
Verizon Global Funding Corp. 7.375% 2012		5,000			5,350
ALLTEL Corp. 4.656% 2007		5,000			4,963
British Telecommunications PLC 8.375% 20102		4,000			4,416
Cingular Wireless LLC 5.625% 2006		3,000			3,003
					117,031
Consumer discretionary — 2.02%
Kohl’s Corp. 6.30% 2011		17,670			18,099
Kohl’s Corp. 7.375% 2011		7,300			7,773
Walt Disney Co., Series B, 5.375% 2007		14,000			13,995
Target Corp. 5.50% 2007		5,000			5,004
Target Corp. 5.375% 2009		8,200			8,188
American Honda Finance Corp. 5.125% 20101		13,000			12,723
DaimlerChrysler North America Holding Corp. 4.75% 2008		7,000			6,900
DaimlerChrysler North America Holding Corp. 8.00% 2010		3,000			3,211
Gannett Co., Inc. 4.125% 2008		7,000			6,802
Lowe’s Companies, Inc. 8.25% 2010		5,000			5,485
Carnival Corp. 6.15% 2008		5,401			5,444
Viacom Inc. 5.625% 2007		5,000			5,005
Home Depot, Inc. 5.20% 2011		3,000			2,960
					101,589
Consumer staples — 1.53%
Wal-Mart Stores, Inc. 5.45% 2006		5,000			5,000
Wal-Mart Stores, Inc. 4.125% 2010		10,000			9,490
Wal-Mart Stores, Inc. 4.75% 2010		10,500			10,210
Diageo Capital PLC 3.50% 2007		12,000			11,660
Diageo Capital PLC 4.375% 2010		12,500			11,949
Kraft Foods Inc. 4.625% 2006		3,000			2,990
Nabisco, Inc. 7.05% 2007		9,200			9,312
Kraft Foods Inc. 4.125% 2009		4,000			3,813
Kraft Foods Inc. 6.25% 2012		1,600			1,629
Costco Wholesale Corp. 5.50% 2007		5,525			5,518
Anheuser-Busch Companies, Inc. 6.00% 2011		5,000			5,093
					76,664
Utilities — 1.05%
Virginia Electric and Power Co., Series 2002-A, 5.375% 2007		13,500			13,474
PSEG Power LLC, Series B, 5.125% 2012		8,343			8,051
Ohio Power Co., Series J, 5.30% 2010		8,000			7,859
Duke Energy Corp., First and Refunding Mortgage Bonds, Series A, 3.75% 2008		5,000			4,856
Duke Energy Corp., First and Refunding Mortgage Bonds, 4.50% 2010		2,250			2,165
Georgia Power Co., Series V, 4.10% 2009		7,000			6,705
Pacificorp Australia LLC, AMBAC insured, 6.15% 20081		6,000			6,056
Chilquinta Energia Finance Co. LLC, MBIA insured, 6.47% 20081		3,500			3,542
					52,708
Health care — 0.53%
Amgen Inc. 4.00% 2009		14,500			13,814
UnitedHealth Group Inc. 5.20% 2007		3,000			2,996
UnitedHealth Group Inc. 3.75% 2009		10,000			9,555
					26,365
Energy — 0.31%
Petroleum Export Ltd., Class A-1, MBIA insured, 4.623% 20101,3		8,028			7,872
Qatar Petroleum 5.579% 20111		5,000			4,990
Oil Enterprises Ltd., MBIA insured, 6.239% 20081,3		2,756			2,774
					15,636
Information technology — 0.25%
Cisco Systems, Inc. 5.25% 2011		12,750			12,569
					12,569
Total corporate bonds & notes (cost: $1,352,414,000)					1,320,058
U.S. TREASURY BONDS & NOTES — 15.19%
U.S. Treasury 3.125% 2007	$	9,175		$	9,007
U.S. Treasury 3.375% 2008		14,000			13,467
U.S. Treasury 3.625% 20084		7,666			7,862
U.S. Treasury 4.75% 2008		2,075			2,061
U.S. Treasury 3.625% 2009		127,250			122,180
U.S. Treasury 5.50% 2009		52,500			53,214
U.S. Treasury 6.00% 2009		8,500			8,742
U.S. Treasury 0.875% 20104		5,193			4,926
U.S. Treasury 4.00% 2010		180,750			174,465
U.S. Treasury 5.00% 2011		83,750			83,698
U.S. Treasury 5.00% 2011		75,825			75,813
U.S. Treasury 3.625% 2013		42,000			38,456
U.S. Treasury 3.875% 2013		46,000			42,873
U.S. Treasury 4.25% 2013		20,500			19,469
U.S. Treasury 8.125% 20195		10,000			12,655
U.S. Treasury 8.50% 20205		5,000			6,535
U.S. Treasury 8.75% 20205		27,410			36,669
U.S. Treasury 7.875% 20215		10,000			12,561
U.S. Treasury 4.50% 2036		21,750			19,432
U.S. Treasury Principal Strip 0% 2008		8,000			7,081
U.S. Treasury Principal Strip 0% 20145		10,000			6,753
U.S. Treasury Principal Strip 0% 20295		15,250			4,605
					762,524
FEDERAL AGENCY BONDS & NOTES — 14.74%
Freddie Mac 5.50% 2006		14,000			14,004
Freddie Mac 3.35% 2007		28,000			27,210
Freddie Mac 4.125% 2009		30,000			28,835
Freddie Mac 5.75% 2009		68,000			68,736
Freddie Mac 6.625% 2009		118,750			123,240
Freddie Mac 4.125% 2010		39,500			37,693
Freddie Mac 5.50% 2011		39,000			39,191
Freddie Mac 5.875% 2011		50,000			50,670
Freddie Mac 5.00% 2014		60,000			58,416
Federal Home Loan Bank 3.375% 2007		65,000			63,303
Federal Home Loan Bank 3.70% 2007		10,245			10,040
Federal Home Loan Bank 3.375% 2008		36,280			35,095
Federal Home Loan Bank 3.75% 2008		6,750			6,521
Fannie Mae 4.75% 2007		10,250			10,209
Fannie Mae 4.75% 2007		10,250			10,172
Fannie Mae 6.34% 2007		5,000			5,060
Fannie Mae 4.00% 2008		30,000			29,229
Fannie Mae 6.625% 2009		12,750			13,232
Fannie Mae 5.25% 2012		41,000			40,157
Federal Agricultural Mortgage Corp. 4.25% 2008		32,500			31,748
Federal Agricultural Mortgage Corp. 4.875% 20111		17,750			17,299
Federal Agricultural Mortgage Corp. 5.125% 2011		1,500			1,477
Small Business Administration, Series 2002-20K, 5.08% 20223		6,219			6,028
Small Business Administration, Series 2003-20J, 4.92% 20233		9,361			8,957
United States Government-Guaranteed Ship Financing Obligations, Rowan Companies, Inc. (Title XI) 5.88% 20123		3,710			3,747
					740,269
COLLATERALIZED MORTGAGE OBLIGATIONS (PRIVATELY ORIGINATED)3— 11.70%
Countrywide Alternative Loan Trust, Series 2005-J8, Class 2-A-1, 5.00% 2020		7,289			6,990
Countrywide Alternative Loan Trust, Series 2004-28CB, Class 7-A-1, 5.00% 2020		4,674			4,485
Countrywide Alternative Loan Trust, Series 2004-14T2, Class A-11, 5.50% 2034		5,000			4,718
Countrywide Alternative Loan Trust, Series 2005-62, Class 2-A-1, 5.011% 20352		6,674			6,674
Countrywide Alternative Loan Trust, Series 2005-46CB, Class A-8, 5.50% 2035		19,508			19,205
Countrywide Alternative Loan Trust, Series 2005-40CB, Class A-1, 5.50% 2035		17,343			16,611
Countrywide Alternative Loan Trust, Series 2005-64CB, Class 1-A-7, 5.50% 2035		14,716			14,500
Countrywide Alternative Loan Trust, Series 2005-30CB, Class 2-A-1, 5.50% 2035		8,079			7,718
Countrywide Alternative Loan Trust, Series 2005-54CB, Class 1-A-7, 5.50% 2035		6,325			6,242
Countrywide Alternative Loan Trust, Series 2005-21CB, Class A-9, 5.50% 2035		4,245			4,181
Countrywide Alternative Loan Trust, Series 2004-28CB, Class 5-A-1, 5.75% 2035		7,221			6,988
Countrywide Alternative Loan Trust, Series 2005-21CB, Class A-17, 6.00% 2035		8,474			8,332
Countrywide Alternative Loan Trust, Series 2004-28CB, Class 6-A-1, 6.00% 2035		3,647			3,574
Countrywide Alternative Loan Trust, Series 2006-6CB, Class 1-A-1, 5.50% 2036		6,917			6,828
Countrywide Alternative Loan Trust, Series 2005-73CB, Class 1-A-11, 5.50% 2036		4,787			4,443
Countrywide Alternative Loan Trust, Series 2006-16CB, Class A-2, 6.00% 2036		27,512			27,279
Residential Accredit Loans, Inc., Series 2004-QS6, Class A-1, 5.00% 2019		12,529			12,017
Residential Accredit Loans, Inc., Series 2004-QS8, Class A-11, 5.50% 2034		5,000			4,701
Residential Accredit Loans, Inc., Series 2005-QR1, Class A, 6.00% 2034		5,912			5,813
Residential Accredit Loans, Inc., Series 2004-QS12, Class M-1, 6.00% 2034		1,272			1,236
Residential Accredit Loans, Inc., Series 2005-QS12, Class A-7, 5.50% 2035		13,377			13,185
Residential Accredit Loans, Inc., Series 2005-QS9, Class A-6, 5.50% 2035		10,000			9,300
Residential Accredit Loans, Inc., Series 2005-QS5, Class A-5, 5.75% 2035		9,100			8,671
Residential Accredit Loans, Inc., Series 2005-QS14, Class 2-A-1, 6.00% 2035		6,676			6,548
CS First Boston Mortgage Securities Corp., Series 2002-30, Class I-A-1, 7.50% 2032		2,048			2,061
CS First Boston Mortgage Securities Corp., Series 2002-34, Class I-A-1, 7.50% 2032		1,511			1,512
CS First Boston Mortgage Securities Corp., Series 2003-AR12, Class II-A-2, 4.311% 20332		1,087			1,068
CS First Boston Mortgage Securities Corp., Series 2003-21, Class V-A-1, 6.50% 2033		2,090			2,092
CS First Boston Mortgage Securities Corp., Series 2003-29, Class V-A-1, 7.00% 2033		3,768			3,807
CS First Boston Mortgage Securities Corp., Series 2004-AR1, Class II-A-1, 4.659% 20342		4,163			4,084
CS First Boston Mortgage Securities Corp., Series 2005-1, Class I-A-27, 5.50% 2035		16,759			16,366
CS First Boston Mortgage Securities Corp., Series 2005-6, Class VI-A-1, 6.00% 2035		11,134			10,995
CS First Boston Mortgage Securities Corp., Series 2006-2, Class 5-A-6, 6.00% 2036		11,200			11,041
WaMu Mortgage Pass-Through Certificates Trust, Series 2004-CB2, Class VII-A, 5.50% 2019		5,862			5,791
WaMu Mortgage Pass-Through Certificates Trust, Series 2003-AR7, Class A-7, 3.842% 20332		9,440			9,205
WaMu Mortgage Pass-Through Certificates Trust, Series 2003-AR8, Class A, 4.03% 20332		4,487			4,366
WaMu Mortgage Pass-Through Certificates Trust, Series 2003-AR6, Class A-1, 4.34% 20332		5,804			5,683
WaMu Mortgage Pass-Through Certificates Trust, Series 2003-AR1, Class A-6, 4.482% 20332		1,235			1,216
WaMu Mortgage Pass-Through Certificates Trust, Series 2006-AR2, Class 2-A1, 5.845% 20372		8,277			8,144
WaMu Mortgage Pass-Through Certificates Trust, Series 2005-AR15, Class A-1-A, 5.341% 20452		6,596			6,617
IndyMac INDX Mortgage Loan Trust, Series 2006-AR5, Class 2-A-1, 5.889% 20362		33,443			33,176
Bear Stearns ARM Trust, Series 2003-6, Class I-A-2, 3.982% 20332		1,830			1,785
Bear Stearns ARM Trust, Series 2003-3, Class II-A-2, 4.053% 20332		2,761			2,703
Bear Stearns ARM Trust, Series 2004-1, Class I-2-A-5, 4.38% 20342		3,186			3,110
Bear Stearns ARM Trust, Series 2005-10, Class A-3, 4.65% 20352		6,500			6,215
Bear Stearns ARM Trust, Series 2005-1, Class II-A-2, 4.958% 20352		9,391			9,226
Morgan Stanley Mortgage Loan Trust, Series 2004-3, Class 4-A, 5.696% 20342		20,872			19,987
Banc of America Mortgage Securities Trust, Series 2004-7, Class 4-A-1, 5.00% 2019		10,501			10,084
Banc of America Mortgage Securities Trust, Series 2003-F, Class 2-A-1, 3.734% 20332		2,252			2,187
Banc of America Mortgage Securities Trust, Series 2003-G, Class 2-A-1, 4.088% 20332		3,357			3,301
Banc of America Mortgage Securities Trust, Series 2003-D, Class 2-A-1, 4.183% 20332		3,765			3,684
MASTR Alternative Loan Trust, Series 2003-2, Class 6-A-1, 6.00% 2033		2,065			2,049
MASTR Alternative Loan Trust, Series 2004-2, Class 2-A-1, 6.00% 2034		2,561			2,510
MASTR Alternative Loan Trust, Series 2005-1, Class 1-A-1, 5.50% 2035		7,066			6,752
MASTR Alternative Loan Trust, Series 2005-3, Class 1-A-1, 5.50% 2035		3,452			3,361
MASTR Alternative Loan Trust, Series 2005-3, Class 3-A-1, 6.50% 2035		2,669			2,664
J.P. Morgan Mortgage Trust, Series 2005-A1, Class 4-A-1, 4.78% 20352		17,317			16,427
First Horizon Alternative Mortgage Securities Trust, Series 2005-FA8, Class I-A-14, 5.50% 2035		6,838			6,723
First Horizon Alternative Mortgage Securities Trust, Series 2005-FA11, Class I-A-5, 5.75% 2036		8,684			8,538
CHL Mortgage Pass-Through Trust, Series 2003-HYB3, Class 4-A-1, 3.456% 20332		3,403			3,298
CHL Mortgage Pass-Through Trust, Series 2003-27, Class A-1, 3.705% 20332		1,489			1,455
CHL Mortgage Pass-Through Trust, Series 2004-HYB6, Class A-1, 4.297% 20342		3,601			3,498
CHL Mortgage Pass-Through Trust, Series 2005-HYB8, Class 4-A-1, 5.715% 20352		6,262			6,175
Lehman Mortgage Trust, Series 2005-2, Class 3-A3, 5.50% 2035		13,868			13,703
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-22, Class 5-A1, 6.039% 20352		7,156			7,104
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-4, Class 5-A-1, 6.00% 20362		4,710			4,678
Structured Asset Securities Corp., Series 1998-RF2, Class A, 8.518% 20271,2		2,624			2,648
Structured Asset Securities Corp., Series 1998-RF1, Class A, 8.743% 20271,2		2,707			2,730
Structured Asset Securities Corp., Series 1999-RF1, Class A, 7.848% 20281,2		3,866			3,939
Structured Asset Securities Corp., Series 2003-17A, Class 3-A1, 4.01% 20332		1,847			1,823
Washington Mutual Securities Corp., Series 2005-AR1, Class A-1-A, 5.341% 20352		10,541			10,558
Residential Asset Mortgage Products Trust, Series 2004-RS9, Class A-I-4, AMBAC insured, 4.767% 2032		8,550			8,397
Residential Asset Mortgage Products Trust, Series 2003-RZ4, Class A-7, 4.79% 20332		1,000			957
Bear Stearns ALT-A Trust, Series 2005-9, Class II-6A-1, 5.85% 20352		8,865			8,789
Bear Stearns Asset-backed Securities I Trust, Series 2005-AC8, Class A-4, 5.50% 2035		8,375			8,257
Specialty Underwriting and Residential Finance Trust, Series 2004-AA1, Class I-A-1, 5.00% 2034		7,214			6,994
Residential Asset Securitization Trust, Series 2005-A8CB, Class A-11, 6.00% 2035		4,419			4,331
Residential Asset Securitization Trust, Series 2005-A6CB, Class A-7, 6.00% 2035		2,554			2,524
GSR Mortgage Loan Trust, Series 2005-AR1, Class 2-A-1, 4.94% 20352		6,934			6,812
HarborView Mortgage Loan Trust, Series 2005-15, Class 2-A1A2, 5.881% 20452		6,092			6,153
Residential Funding Mortgage Securities I, Inc., Series 2004-S9, Class II-A-1, 4.75% 2019		5,920			5,615
PUMA Global Trust No.1, Class B, 5.42% 20332		5,500			5,509
Wells Fargo Mortgage-backed Securities Trust, Series 2003-M, Class A-1, 4.715% 20332		3,271			3,115
Wells Fargo Mortgage-backed Securities Trust, Series 2006-2, Class 1-A-5, principal only, 0% 2036		2,489			1,820
First Horizon Mortgage Pass Through Trust, Series 2004-AR1, Class II-A-1, 4.902% 20342		4,279			4,212
Banc of America Alternative Loan Trust, Series 2005-6, Class 2-CB-2, 6.00% 2035		3,385			3,344
Paine Webber CMO, Series O, Class 5, 9.50% 2019		293			311
					587,518
ASSET-BACKED OBLIGATIONS3— 10.43%
Drive Auto Receivables Trust, Series 2005-1, Class A-3, MBIA insured, 3.75% 2009		13,000			12,894
Drive Auto Receivables Trust, Series 2005-2, Class A-2, MBIA insured, 4.12% 20101		9,908			9,820
Drive Auto Receivables Trust, Series 2004-1, Class A-4, MBIA insured, 4.14% 20101		13,000			12,831
Drive Auto Receivables Trust, Series 2005-2, Class A-3, MBIA insured, 4.26% 20121		4,250			4,108
Drive Auto Receivables Trust, Series 2005-3, Class A-4, FSA insured, 5.09% 20131		10,000			9,906
MBNA Master Credit Card Trust II, Series 2000-D, Class B, 5.511% 20092		5,750			5,772
MBNA Credit Card Master Note Trust, Series 2006-1, Class A, 4.90% 2011		7,500			7,419
MBNA Master Credit Card Trust II, Series 2000-E, Class A, 7.80% 2012		2,580			2,809
MBNA Credit Card Master Note Trust, Series 2005-6, Class A, 4.50% 2013		18,500			17,870
ARG Funding Corp., Series 2005-1, Class A-1, MBIA insured, 4.02% 20091		6,750			6,588
ARG Funding Corp., Series 2005-2, Class A-1, AMBAC insured, 4.54% 20091		6,500			6,398
ARG Funding Corp., Series 2005-1, Class A-3, MBIA insured, 4.29% 20111		15,750			15,072
CPS Auto Receivables Trust, Series 2003-A, Class A-2, XLCA insured, 2.89% 20091		920			903
CPS Auto Receivables Trust, Series 2002-B, Class A-2, XLCA insured, 3.50% 20091		2,426			2,404
CPS Auto Receivables Trust, Series 2002-C, Class A-2, XLCA insured, 3.52% 20091		648			641
CPS Auto Receivables Trust, Series 2004-A, Class A-2, FSA insured, 3.87% 20101		5,000			4,912
CPS Auto Receivables Trust, Series 2004-D, Class A-2, XLCA insured, 3.86% 20111		9,142			8,997
CPS Auto Receivables Trust, Series 2005-C, Class A-2, FSA insured, 4.79% 20121		5,000			4,893
Drivetime Auto Owner Trust, Series 2005-A, Class A-3, MBIA insured, 4.302% 20091		11,750			11,616
Drivetime Auto Owner Trust, Series 2006-A, Class A-3, XLCA insured, 5.565% 20111		10,000			9,988
Citibank Credit Card Issuance Trust, Class 2002-A1, 4.95% 2009		4,000			3,987
Citibank Credit Card Issuance Trust, Class 2000-A3, 6.875% 2009		12,500			12,748
Citibank Credit Card Issuance Trust, Class 2003-A3, 3.10% 2010		2,900			2,789
Prestige Auto Receivables Trust, Series 2004-1, Class A-2, FSA insured, 3.69% 20111		4,444			4,377
Prestige Auto Receivables Trust, Series 2006-1A, Class A-2, FSA insured, 5.25% 20131		12,000			11,949
Residential Asset Securities Corp. Trust, Series 2001-KS3, Class A-I-6, 5.96% 2031		5,386			5,364
Residential Asset Securities Corp. Trust, Series 2003-KS8, Class A-I-6, 4.83% 2033		1,500			1,463
Residential Asset Securities Corp. Trust, Series 2004-KS12, Class A-1-2, 5.311% 20352		8,807			8,824
West Penn Funding LLC, Transition Bonds, Series 2005-A, Class A-1, 4.46% 20101		15,750			15,290
Residential Funding Mortgage Securities II, Inc., Series 2005-HI1, Class A-3, FGIC insured, 4.16% 2034		12,500			12,288
Massachusetts RRB Special Purpose Trust, Series 2005-1, Class A-4, 4.40% 2015		12,800			12,012
MASTR Asset-backed Securities Trust, Series 2006-AB1, Class A-4, 5.719% 2036		12,185			11,825
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class A-3, 4.35% 2014		12,113			11,402
Vanderbilt Mortgage and Finance, Inc., Series 2000-C, Class A-4, 7.905% 2026		3,756			3,922
Vanderbilt Mortgage and Finance, Inc., Series 2000-D, Class A-4, 7.715% 2027		6,853			7,099
UPFC Auto Receivables Trust, Series 2004-A, Class A-3, AMBAC insured, 3.27% 2010		4,633			4,564
UPFC Auto Receivables Trust, Series 2005-B, Class A-3, XLCA insured, 4.98% 2011		6,250			6,205
Bear Stearns Asset-backed Securities I Trust, Series 2005-CL1, Class A-1, 5.581% 20342		10,361			10,384
CWABS, Inc., Series 2004-10, Class AF-3, 3.842% 2030		8,769			8,653
CWABS, Inc., Series 2004-10, Class 2-AV-2, 5.431% 20332		1,555			1,557
PG&E Energy Recovery Funding LLC, Series 2005-1, Class A-2, 3.87% 2011		5,000			4,881
PG&E Energy Recovery Funding LLC, Series 2005-1, Class A-3, 4.14% 2012		5,250			5,047
Capital One Multi-asset Execution Trust, Series 2005-8, Class A, 4.40% 2011		10,000			9,792
Triad Automobile Receivables Trust, Series 2005-A, Class A-4, AMBAC insured, 4.22% 2012		10,000			9,708
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2005-1, Class A-5, MBIA insured, 5.08% 20111		5,750			5,618
Hertz Vehicle Financing LLC, Rental Car Asset-backed Notes, Series 2005-2, Class A-6, AMBAC insured, 5.08% 20111		4,000			3,908
Credit-Based Asset Servicing and Securitization LLC, Series 2004-CB8, Class AF-1, 3.633% 2021		760			756
Credit-Based Asset Servicing and Securitization LLC, Series 2004-CB8, Class AF-2, 4.134% 2035		3,950			3,888
Credit-Based Asset Servicing and Securitization LLC, Series 2005-CB4, Class AF-4, 5.028% 20352		4,485			4,267
PG&E Energy Recovery Funding LLC, Series 2005-2, Class A-2, 5.03% 2014		9,000			8,851
New Century Home Equity Loan Trust, Series 2001-NC2, Class M-1, 6.311% 20312		8,305			8,313
Structured Asset Investment Loan Trust, Series 2004-BNC2, Class A-4, 5.401% 20342		7,963			7,974
First Investors Auto Owner Trust, Series 2006-A, Class A-4, MBIA insured, 5.00% 20131		8,000			7,896
Origen Manufactured Housing Contract Trust, Series 2004-B, Class A-1, 2.87% 2013		618			613
Origen Manufactured Housing Contract Trust, Series 2004-B, Class A-2, 3.79% 2017		6,050			5,860
Origen Manufactured Housing Contract Trust, Series 2004-B, Class A-3, 4.75% 2021		1,500			1,408
Irwin Home Equity, Series 2006-1, Class 2-A2, 5.39% 20351		7,500			7,389
PECO Energy Transition Trust, Series 1999-A, Class A-7, 6.13% 2009		7,000			7,071
Providian Gateway Master Trust, Series 2004-DA, Class A, 3.35% 20111		7,000			6,820
Countryplace Manufactured Housing Contract, Series 2005-1, Class A-2, AMBAC insured, 4.42% 20351		7,000			6,818
Advanta Business Card Master Trust, Series 2005-A3, Class A, 4.70% 2011		6,750			6,630
Capital One Master Trust, Series 1998-1, Class A, 6.31% 2011		5,950			6,045
PSE&G Transition Funding II LLC, Series 2005-1, Class A-2, 4.34% 2014		6,125			5,852
Morgan Stanley ABS Capital I, Inc., Series 2004-OP1, Class A-2B, 5.371% 20342		5,770			5,778
WFS Financial Owner Trust, Series 2002-3, Class A-4, 3.50% 2010		3,204			3,198
WFS Financial Owner Trust, Series 2004-1, Class A-4, 2.81% 2011		2,600			2,530
Vega ContainerVessel PLC, Series 2006-1, Class A, XLCA insured, 5.562% 20211		5,000			4,862
Nebhelp Trust, Student Loan Interest Margin Securities, Series 1, Class A, MBIA insured, 6.68% 20161		4,500			4,498
Nordstrom Private Label Credit Card Master Note Trust, Series 2001-1, Class A, 4.82% 20101		4,250			4,245
Long Beach Acceptance Auto Receivables Trust, Series 2004-C, Class A-4, FSA insured, 3.777% 2011		4,350			4,235
USAA Auto Owner Trust, Series 2004-3, Class A-3, 3.16% 2009		4,280			4,230
AmeriCredit Automobile Receivables Trust, Series 2003-A-M, Class A-4-A, MBIA insured, 3.10% 2009		1,239			1,215
AmeriCredit Automobile Receivables Trust, Series 2002-C, Class A-4, FSA insured, 3.55% 2009		3,011			2,983
Centex Home Equity Loan Trust, Series 2005-A, Class AF-2, 3.90% 2024		2,500			2,482
Centex Home Equity Loan Trust, Series 2003-C, Class AF-6, 4.81% 2033		1,700			1,675
Spirit Master Funding LLC, Net-Lease Mortgage Notes, Series 2005-1, Class A-1, AMBAC insured, 5.05% 20231		3,858			3,611
Green Tree Financial Corp., Series 1997-6, Class A-6, 6.90% 2029		973			986
Green Tree Financial Corp., Series 1997-6, Class A-7, 7.14% 2029		2,291			2,338
Chase Credit Card Owner Trust, Series 2003-4, Class B, 5.731% 20162		3,000			3,083
California Infrastructure and Economic Development Bank, Special Purpose Trust, SCE-1,
Series 1997-1, Class A-6, 6.38% 2008		1,561			1,565
California Infrastructure and Economic Development Bank, Special Purpose Trust, PG&E-1,
Series 1997-1, Class A-7, 6.42% 2008		1,221			1,224
AMRESCO Residential Securities Corp. Mortgage Loan Trust, Series 1997-2, Class A-7, 7.57% 2027		2,774			2,765
SeaWest Securitization, LLC, Series 2002-A, Class A-3, XLCA insured, 3.58% 20081		1,452			1,445
SeaWest Securitization, LLC, Series 2003-A, Class A-2, XLCA insured, 2.84% 20091		1,015			1,000
Nordstrom Credit Card Master Note Trust, Series 2002-1, Class B, 5.781% 20101,2		2,250			2,262
Specialty Underwriting and Residential Finance Trust, Series 2004-BC4, Class A-2B, 5.391% 20352		2,000			2,006
Hyundai Auto Receivables Trust, Series 2002-A, Class B, 3.54% 20091		1,682			1,681
Litigation Settlement Monetized Fee Trust I, Series 2001-1, Class A-1, 8.33% 20311		1,633			1,657
MMCA Auto Owner Trust, Series 2002-4, Class A-4, 3.05% 2009		1,366			1,357
PP&L Transition Bond Co. LLC, Series 1999-1, Class A-8, 7.15% 2009		1,200			1,239
CWHEQ Home Equity Loan Trust, Series 2006-S2, Class A-5, FGIC insured, 5.753% 2027		1,000			986
IndyMac Home Equity Mortgage Loan Asset-backed Trust, Series SPMD 2001-A, Class AF-6, 6.537% 2030		974			977
Franklin Auto Trust, Series 2002-1, Class A-4, MBIA insured, 4.51% 2010		966			962
AESOP Funding II LLC, Series 2003-2, Class A-1, MBIA insured, 2.74% 20071		833			832
Saxon Asset Securities Trust, Series 2002-2, Class AF-5, 5.99% 2031		694			694
Banco Nacional de México, SA, Series 1999-A, Class A-1, MBIA insured, 7.50% 20061		492			493
Financial Pacific Funding II, LLC, Series 2003-A, Class A, FSA insured, 2.29% 20091		476			471
NPF XII, Inc., Series 2001-3, Class A, 5.52% 20071,6		1,000			28
NPF VI, Inc., Series 2002-1, Class A, 2.389% 20081,2,6		1,500			23
					523,564
FEDERAL AGENCY MORTGAGE-BACKED OBLIGATIONS3— 8.80%
Fannie Mae 7.00% 2008		80			80
Fannie Mae 8.50% 2008		2			2
Fannie Mae 7.00% 2009		97			98
Fannie Mae 7.00% 2009		21			21
Fannie Mae 7.50% 2009		168			170
Fannie Mae 7.50% 2009		75			77
Fannie Mae 7.50% 2009		75			76
Fannie Mae 7.50% 2009		20			20
Fannie Mae 8.50% 2009		16			17
Fannie Mae 9.00% 2009		138			141
Fannie Mae 9.00% 2009		131			135
Fannie Mae 9.50% 2009		183			191
Fannie Mae 7.00% 2010		63			64
Fannie Mae 9.50% 2010		8			8
Fannie Mae 7.00% 2011		494			502
Fannie Mae 7.00% 2011		237			241
Fannie Mae 7.00% 2011		30			31
Fannie Mae 7.00% 2012		349			356
Fannie Mae 8.50% 2014		18			18
Fannie Mae 7.00% 2015		2,026			2,068
Fannie Mae 7.00% 2015		543			554
Fannie Mae 7.00% 2015		94			96
Fannie Mae 7.00% 2015		47			48
Fannie Mae 7.50% 2015		1,010			1,041
Fannie Mae 7.50% 2015		910			938
Fannie Mae 7.50% 2015		468			483
Fannie Mae 7.50% 2015		465			480
Fannie Mae 7.50% 2015		117			120
Fannie Mae 7.50% 2015		102			105
Fannie Mae 7.50% 2015		74			76
Fannie Mae 9.00% 2015		598			632
Fannie Mae 13.50% 2015		254			294
Fannie Mae 7.00% 2016		1,468			1,498
Fannie Mae 7.00% 2016		587			600
Fannie Mae 7.00% 2016		443			453
Fannie Mae 7.00% 2016		290			296
Fannie Mae 7.00% 2016		226			231
Fannie Mae 7.50% 2016		406			419
Fannie Mae 9.00% 2016		826			881
Fannie Mae 11.50% 2016		321			359
Fannie Mae 6.00% 2017		1,557			1,567
Fannie Mae 7.00% 2017		1,606			1,639
Fannie Mae 7.00% 2017		914			933
Fannie Mae 7.00% 2017		581			593
Fannie Mae 5.00% 2018		1,211			1,173
Fannie Mae 9.00% 2018		24			26
Fannie Mae 10.00% 2018		153			169
Fannie Mae 11.50% 2019		934			1,043
Fannie Mae 11.00% 2020		239			270
Fannie Mae 11.00% 2020		98			109
Fannie Mae 11.50% 2020		203			226
Fannie Mae 10.00% 2021		195			213
Fannie Mae 9.50% 2022		69			75
Fannie Mae 7.00% 2023		102			106
Fannie Mae 7.50% 2023		242			252
Fannie Mae 10.00% 2025		268			296
Fannie Mae 8.50% 2026		73			79
Fannie Mae 9.318% 20262		1,361			1,473
Fannie Mae 9.50% 2026		496			552
Fannie Mae 8.50% 2027		117			126
Fannie Mae 7.50% 2029		232			241
Fannie Mae 7.00% 2031		49			50
Fannie Mae 7.50% 2031		166			172
Fannie Mae 7.50% 2031		130			135
Fannie Mae 3.746% 20332		2,681			2,611
Fannie Mae 3.772% 20332		8,597			8,374
Fannie Mae 4.043% 20332		1,168			1,149
Fannie Mae 4.184% 20332		15,796			15,524
Fannie Mae 5.50% 2034		8,164			7,869
Fannie Mae 6.00% 2034		13,385			13,240
Fannie Mae 6.00% 2034		8,755			8,660
Fannie Mae 4.484% 20352		2,456			2,390
Fannie Mae 6.00% 2035		4,397			4,350
Fannie Mae 5.50% 2036		4,990			4,807
Fannie Mae 5.50% 2036		1,752			1,688
Fannie Mae 6.00% 2036		6,719			6,637
Fannie Mae 6.50% 2036		8,889			8,969
Fannie Mae, Trust D2, 11.00% 2009		140			146
Fannie Mae, Series 2000-T5, Class B, 7.30% 2010		14,000			14,908
Fannie Mae, Series 2003-T1, Class B, 4.491% 2012		7,000			6,618
Fannie Mae, Series 88-16, Class B, 9.50% 2018		29			31
Fannie Mae, Series 90-93, Class G, 5.50% 2020		113			111
Fannie Mae, Series 90-21, Class Z, 9.00% 2020		573			613
Fannie Mae, Series 2001-4, Class GA, 10.269% 20252		1,312			1,446
Fannie Mae, Series 2001-4, Class NA, 11.891% 20252		3,504			3,888
Fannie Mae, Series 2002-W3, Class A-5, 7.50% 2028		2,319			2,388
Fannie Mae, Series 2002-W7, Class A-5, 7.50% 2029		1,914			1,975
Fannie Mae, Series 2001-20, Class D, 11.064% 20312		199			221
Fannie Mae, Series 2005-29, Class AK, 4.50% 2035		8,341			7,942
Fannie Mae, Series 2006-43, Class PX, 6.00% 2036		30,000			29,925
Fannie Mae, Series 2006-49, Class PA, 6.00% 2036		10,000			10,026
Fannie Mae, Series 2003-W10, Class 1A-2B, 3.112% 2037		297			296
Fannie Mae, Series 1999-T2, Class A-1, 7.50% 2039		1,021			1,056
Fannie Mae, Series 2003-W4, Class 1A-3, 3.991% 2040		6,335			6,276
Fannie Mae, Series 2001-T10, Class A-1, 7.00% 2041		1,632			1,667
Fannie Mae, Series 2001-50, Class BA, 7.00% 2041		858			878
Fannie Mae, Series 2002-W1, Class 2A, 7.50% 2042		706			726
Government National Mortgage Assn. 8.50% 2007		20			20
Government National Mortgage Assn. 8.50% 2008		58			59
Government National Mortgage Assn. 8.50% 2008		4			4
Government National Mortgage Assn. 9.00% 2008		109			112
Government National Mortgage Assn. 9.50% 2009		588			611
Government National Mortgage Assn. 9.00% 2016		20			22
Government National Mortgage Assn. 8.50% 2017		116			124
Government National Mortgage Assn. 8.50% 2020		25			27
Government National Mortgage Assn. 9.50% 2020		86			96
Government National Mortgage Assn. 9.50% 2020		54			59
Government National Mortgage Assn. 8.50% 2021		269			287
Government National Mortgage Assn. 8.50% 2021		117			125
Government National Mortgage Assn. 8.50% 2021		1			1
Government National Mortgage Assn. 9.00% 2021		105			113
Government National Mortgage Assn. 8.50% 2022		61			65
Government National Mortgage Assn. 8.50% 2022		36			38
Government National Mortgage Assn. 8.50% 2022		20			21
Government National Mortgage Assn. 8.50% 2023		283			302
Government National Mortgage Assn. 4.00% 20352		11,019			10,752
Government National Mortgage Assn. 4.00% 20352		6,672			6,489
Government National Mortgage Assn. 4.00% 20352		5,571			5,418
Government National Mortgage Assn. 4.00% 20352		3,163			3,065
Government National Mortgage Assn. 4.00% 20352		946			917
Government National Mortgage Assn. 5.50% 2036		20,654			20,023
Government National Mortgage Assn. 6.00% 2036		39,750			39,497
Government National Mortgage Assn. 6.50% 2036		30,950			31,359
Government National Mortgage Assn. 6.50% 2036		21,800			22,104
Government National Mortgage Assn., Series 2004-84, Class A, 3.624% 2017		3,505			3,362
Freddie Mac 7.00% 2008		93			94
Freddie Mac 8.00% 2008		14			14
Freddie Mac 8.50% 2008		9			9
Freddie Mac 8.75% 2008		19			19
Freddie Mac 8.50% 2009		72			73
Freddie Mac 8.00% 2010		76			77
Freddie Mac 9.50% 2010		3			3
Freddie Mac 8.00% 2012		143			147
Freddie Mac 9.50% 2013		7			8
Freddie Mac 6.00% 2014		165			167
Freddie Mac 6.00% 2014		89			90
Freddie Mac 4.00% 2015		8,095			7,517
Freddie Mac 7.00% 2015		141			144
Freddie Mac 6.00% 2017		616			620
Freddie Mac 8.00% 2017		341			354
Freddie Mac 8.00% 2017		127			132
Freddie Mac 8.00% 2017		92			96
Freddie Mac 5.00% 2018		1,851			1,792
Freddie Mac 8.50% 2018		19			20
Freddie Mac 10.00% 2018		616			681
Freddie Mac 11.00% 2018		139			154
Freddie Mac 8.50% 2019		97			102
Freddie Mac 10.00% 2019		481			535
Freddie Mac 8.50% 2020		32			34
Freddie Mac 8.50% 2021		46			49
Freddie Mac 10.00% 2021		251			274
Freddie Mac 10.00% 2025		335			367
Freddie Mac 8.50% 2027		33			35
Freddie Mac 9.00% 2030		399			429
Freddie Mac 4.053% 20332		1,800			1,760
Freddie Mac 4.613% 20352		13,069			12,714
Freddie Mac 4.649% 20352		29,069			28,274
Freddie Mac 4.79% 20352		6,765			6,604
Freddie Mac, Series 2310, Class B, 9.952% 20152		144			156
Freddie Mac, Series 2310, Class A, 10.589% 20172		505			544
Freddie Mac, Series 1567, Class A, 4.714% 20232		110			100
Freddie Mac, Series T-041, Class 3-A, 7.50% 2032		964			992
Freddie Mac, Series 3061, Class PN, 5.50% 2035		19,303			18,973
Freddie Mac, Series 3156, Class NG, 6.00% 2036		10,000			10,043
					442,111
COMMERCIAL MORTGAGE-BACKED SECURITIES3— 7.74%
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2001-CIBC1, Class A-2, 6.001% 2033		212			212
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2002-C2, Class A-1, 4.326% 2034		13,907			13,383
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-CIBC10, Class A-1, 3.175% 2037		474			470
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-CIBC10, Class A-4, 4.529% 2037		8,500			8,067
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CIBC12, Class A-3B, 5.334% 20372		5,000			4,910
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2003-ML1, Class A-1, 3.972% 2039		11,975			11,482
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2004-C3, Class A-3, 4.545% 2042		5,000			4,730
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP4, Class A-2, 4.79% 2042		6,750			6,537
J.P. Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A-2, 4.625% 2046		7,500			7,271
CS First Boston Mortgage Securities Corp., Series 2001-CK1, Class A-3, 6.38% 2035		7,000			7,168
CS First Boston Mortgage Securities Corp., Series 2003-C5, Class A-2, 3.808% 2036		2,700			2,605
CS First Boston Mortgage Securities Corp., Series 2003-CK2, Class A-4, 4.801% 2036		1,000			946
CS First Boston Mortgage Securities Corp., Series 2001-CK6, Class A-3, 6.387% 2036		8,250			8,486
CS First Boston Mortgage Securities Corp., Series 2002-CKN2, Class A-1, 4.637% 2037		1,938			1,930
CS First Boston Mortgage Securities Corp., Series 2005-C6, Class A-3, 5.23% 2040		13,500			13,021
CS First Boston Mortgage Securities Corp., Series 1998-C1, Class A-1B, 6.48% 2040		3,757			3,815
CS First Boston Mortgage Securities Corp., Series 1998-C1, Class C, 6.78% 2040		6,450			6,635
CS First Boston Mortgage Securities Corp., Series 1999-C1, Class D, 8.062% 20412		1,500			1,606
Bear Stearns Commercial Mortgage Securities Inc., Series 1998-C1, Class A-1, 6.34% 2030		5,279			5,306
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-C1, Class X, interest only, 1.009% 20311,2		79,399			2,431
Bear Stearns Commercial Mortgage Securities Inc., Series 1999-C1, Class A-1, 5.91% 2031		2,837			2,841
Bear Stearns Commercial Mortgage Securities Inc., Series 2002-PBW1, Class A-1, 3.97% 2035		5,771			5,573
Bear Stearns Commercial Mortgage Securities Inc., Series 2001-TOP2, Class A-1, 6.08% 2035		3,818			3,854
Bear Stearns Commercial Mortgage Securities Inc., Series 2004-PWR6, Class A-4, 4.521% 2041		12,250			11,550
Bear Stearns Commercial Mortgage Securities Inc., Series 2005-PWR9, Class A-AB, 4.804% 2042		4,500			4,279
GE Capital Commercial Mortgage Corp., Series 2000-1, Class A-2, 6.496% 2033		10,000			10,285
GE Capital Commercial Mortgage Corp., Series 2003-C2, Class A-2, 4.17% 2037		3,200			3,096
GE Capital Commerical Mortgage Corp., Series 2002-3, Class A-1, 4.229% 2037		10,491			10,125
Salomon Brothers Commercial Mortgage Trust, Series 2000-C3, Class A-1, 6.341% 20331		2,727			2,744
Salomon Brothers Commercial Mortgage Trust, Series 2000-C3, Class B, 6.758% 2033		2,000			2,071
Salomon Brothers Commercial Mortgage Trust, Series 2001-C1, Class A-2, 6.226% 2035		1,470			1,478
Salomon Brothers Commercial Mortgage Trust, Series 2001-C1, Class A-3, 6.428% 2035		13,350			13,730
GMAC Commercial Mortgage Securities, Inc., Series 2001-C2, Class A-1, 6.25% 2034		853			865
GMAC Commercial Mortgage Securities, Inc., Series 2001-C1, Class A-2, 6.465% 2034		18,500			19,037
Banc of America Commercial Mortgage Inc., Series 2001-1, Class A-2, 6.503% 2036		2,433			2,511
Banc of America Commercial Mortgage Inc., Series 2003-2, Class A-1, 3.411% 2041		3,755			3,628
Banc of America Commercial Mortgage Inc., Series 2004-5, Class A-3, 4.561% 2041		3,565			3,382
Banc of America Commercial Mortgage Inc., Series 2005-5, Class A-3B, 5.229% 20452		10,500			10,239
Crown Castle Towers LLC, Series 2005-1, Class A-FX, 4.643% 20351		12,000			11,544
Crown Castle Towers LLC, Series 2005-1, Class C, 5.074% 20351		8,180			7,888
Commercial Mortgage Trust, Series 2000-C1, Class A-1, 7.206% 2033		770			772
Commercial Mortgage Trust, Series 2003-LNB1, Class A-2, 4.084% 2038		13,000			11,786
Commercial Mortgage Trust, Series 2004-LB2A, Class A-2, 3.60% 2039		6,974			6,656
Wachovia Bank Commercial Mortgage Trust, Series 2003-C9, Class A-2, 3.958% 2035		7,200			6,926
Wachovia Bank Commercial Mortgage Trust, Series 2005-C16, Class A-PB, 4.692% 2041		4,250			4,037
Wachovia Bank Commercial Mortgage Trust, Series 2005-C17, Class A-2, 4.782% 2042		7,500			7,294
Tower Ventures, LLC, Series 2006-1, Class A1-FX, 5.361% 20361		11,350			11,155
Tower Ventures, LLC, Series 2006-1, Class C, 5.707% 20361		7,063			6,963
LB-UBS Commercial Mortgage Trust, Series 2001-C7, Class A-3, 5.642% 2025		3,760			3,770
LB-UBS Commercial Mortgage Trust, Series 2000-C3, Class A-2, 7.95% 2025		1,750			1,879
LB-UBS Commercial Mortgage Trust, Series 2002-C4, Class A-2, 4.023% 2026		7,750			7,526
LB-UBS Commercial Mortgage Trust, Series 2002-C1, Class A-3, 6.226% 2026		1,465			1,490
Morgan Stanley Capital I, Inc., Series 1999-FNV1, Class A-2, 6.53% 2031		4,794			4,881
Morgan Stanley Capital I, Inc., Series 1999-FNV1, Class D, 7.03% 2031		4,000			4,138
Morgan Stanley Capital I, Inc., Series 2004-RR2, Class A-1, 4.39% 20331		2,224			2,172
Morgan Stanley Capital I Trust, Series 2005-HQ7, Class A-2, 5.205% 20422		2,000			1,950
Morgan Stanley Dean Witter Capital I Trust, Series 2001-TOP5, Class A-3, 6.16% 2035		5,125			5,202
Morgan Stanley Dean Witter Capital I Trust, Series 2003-TOP9, Class A-1, 3.98% 2036		7,676			7,328
SBA CMBS Trust, Series 2005-1, Class A, 5.369% 20351		8,350			8,223
SBA CMBS Trust, Series 2005-1, Class B, 5.565% 20351		1,270			1,255
Chase Commercial Mortgage Securities Corp., Series 2000-2, Class A-1, 7.543% 2032		3,601			3,715
Chase Commercial Mortgage Securities Corp., Series 2000-1, Class A-2, 7.757% 2032		5,398			5,688
Government Lease Trust, Series 1999-GSA1, Class A-4, MBIA insured, 6.48% 20111		8,500			8,706
First Union National Bank Commercial Mortgage Trust, Series 2000-C1, Class A-1, 7.739% 2032		1,738			1,768
First Union National Bank Commercial Mortgage Trust, Series 2002-C1, Class A-1, 5.585% 2034		5,729			5,732
DLJ Commercial Mortgage Corp., Series 1998-CF2, Class A-4, 6.90% 20312		3,250			3,347
DLJ Commercial Mortgage Corp., Series 1999-CG1, Class A-1B, 6.46% 2032		1,750			1,787
LB Commercial Mortgage Trust, Series 1998-C1, Class A-3, 6.48% 2030		3,168			3,198
GGP Mall Properties Trust, Series 2001-GGP1, Class A-2, 5.007% 20111		2,387			2,384
Prudential Securities Secured Financing Corp., Series 1999-NRF1, Class C, 6.746% 2031		2,000			2,057
GE Commercial Mortgage Corp., Series 2005-C4, Class A-3A, 5.333% 2045		2,000			1,962
Nomura Asset Securities Corp., Series 1998-D6, Class A-1A, 6.28% 2030		1,088			1,091
					388,569
NON-U.S. GOVERNMENT & GOVERNMENT AGENCY BONDS & NOTES — 0.52%
Corporación Andina de Fomento 6.875% 2012		13,000			13,608
KfW 3.25% 2007		13,000			12,701
					26,309
MUNICIPALS — 0.11%
California Maritime Infrastructure Authority, Taxable Lease Revenue Bonds
(San Diego Unified Port District-South Bay Plant Acquisition), Series 1999, 6.63% 20091		5,069			5,116
State of Louisiana, Tobacco Settlement Financing Corp., Tobacco Settlement Asset-backed Bonds,
Series 2001-A, Class A, 6.36% 2025		577			575
					5,691
Total bonds & notes (cost: $4,907,728,000)					4,796,613
					Market value
Preferred securities — 0.94%		Shares			(000	)
FINANCIALS — 0.94%
BNP U.S. Funding LLC, Series A, 7.738% noncumulative preferred1,2		11,795,000			12,131
BNP Paribas Capital Trust 9.003% noncumulative trust preferred1,2		3,250,000			3,637
Deutsche Bank Capital Funding Trust I, 7.872%1,2		11,950,000			12,613
HSBC Capital Funding LP, Series 1, 9.547% noncumulative step-up perpetual preferred1,2		8,250,000			9,344
DBS Capital Funding Corp., Series A, 7.657% noncumulative guaranteed preference shares1,2		6,000,000			6,424
ING Capital Funding Trust III 8.439% noncumulative preferred2		2,665,000			2,933
Total preferred stocks (cost: $51,149,000)					47,082
Short-term securities — 4.03%		Principal amount (000	)
Bank of America Corp. 5.015% due 7/10/20065	$	42,400			42,163
Ranger Funding Co. LLC 5.03% due 7/12/20061,5		5,200			5,169
Concentrate Manufacturing Co. of Ireland 4.94%-4.95% due 6/9-6/20/20061		34,950			34,863
CAFCO, LLC 5.03% due 7/14/20061		30,000			29,823
Wal-Mart Stores Inc. 4.74%-4.96% due 6/6-6/27/20061		28,307			28,211
Hershey Co. 4.95% due 6/23/20061		25,000			24,921
Clipper Receivables Co., LLC 5.00% due 6/22/20061		20,000			19,939
IBM Capital Inc. 4.95% due 6/26/20061		15,000			14,946
Colgate-Palmolive Co. 4.94% due 6/19/20061,5		2,575			2,568
Total short-term securities (cost: $202,596,000)					202,603
Total investment securities (cost: $5,161,473,000)					5,046,298
Other assets less liabilities					(24,470	)
Net assets				$	5,021,828

¹Purchased in a private placement transaction; resale may be limited to qualified institutional buyers; resale to the public may require registration. The total value of all such restricted securities was $855,372,000, which represented 17.03% of the net assets of the fund.

²Coupon rate may change periodically.

³Pass-through securities backed by a pool of mortgages or other loans on which principal payments are periodically made. Therefore, the effective maturities are shorter than the stated maturities.

⁴Index-linked bond whose principal amount moves with a government retail price index.

⁵This security, or a portion of this security, has been segregated to cover funding requirements on investment transactions settling in the future.

⁶Company not making scheduled interest payments; bankruptcy proceedings pending.

Federal income tax information	(dollars in thousands)
Gross unrealized appreciation on investment securities		$	2,993
Gross unrealized depreciation on investment securities			(118,747	)
Net unrealized depreciation on investment securities			(115,754	)
Cost of investment securities for federal income tax purposes			5,162,052

MFGEFP-923-0706-S4565

ITEM 2 - Controls and Procedures

The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures (as such term is defined in Rule 30a-3 under the Investment Company Act of 1940), that such controls and procedures are adequate and reasonably designed to achieve the purposes described in paragraph (c) of such rule.

There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 3 - Exhibits

The certifications required by Rule 30a-2 of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached as exhibits hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

INTERMEDIATE BOND FUND OF AMERICA

By /s/ John H. Smet

John H. Smet, President and PEO

Date: July 28, 2006

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

By /s/ John H. Smet

John H. Smet, President and PEO

Date: July 28, 2006

By /s/ Sharon G. Moseley

Sharon G. Moseley, Treasurer and PFO

Date: July 28, 2006