-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, L6FLG8l8uqW63Km99Y+vGS0LDmFe5ZscnP8AO6SmvyCnnquac/kqgXgzQJi3clOw fP+Hq2985JyXfUJ+L3lyHQ== 0001193125-08-123672.txt : 20080528 0001193125-08-123672.hdr.sgml : 20080528 20080528164744 ACCESSION NUMBER: 0001193125-08-123672 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20080331 FILED AS OF DATE: 20080528 DATE AS OF CHANGE: 20080528 EFFECTIVENESS DATE: 20080528 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACHOLDER HIGH YIELD FUND INC CENTRAL INDEX KEY: 0000837951 IRS NUMBER: 311251983 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-05639 FILM NUMBER: 08864011 BUSINESS ADDRESS: STREET 1: 8044 MONTGOMERY RD STE 382 CITY: CINCINNATI STATE: OH ZIP: 45236 BUSINESS PHONE: 5139853200 MAIL ADDRESS: STREET 1: 8044 MONTGOMERY ROAD SUITE 480 CITY: CINCINNATI STATE: OH ZIP: 45236 FORMER COMPANY: FORMER CONFORMED NAME: PACHOLDER FUND INC DATE OF NAME CHANGE: 19931130 FORMER COMPANY: FORMER CONFORMED NAME: USF&G PACHOLDER FUND INC /OH/ DATE OF NAME CHANGE: 19920703 N-Q 1 dnq.htm FORM N-Q Form N-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF

REGISTERED MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number: 811-05639

 

 

Pacholder High Yield Fund, Inc.

(Exact name of registrant as specified in charter)

 

8044 Montgomery Road, Ste. 555

Cincinnati, Ohio 45236

(Address of principal executive offices) (Zip code)

 

Gary J. Madich

8044 Montgomery Road, Ste. 555

Cincinnati, Ohio 45236

(Name and Address of Agent for Service)

 

Registrant’s telephone number, including area code: (513) 985-3200

 

Date of fiscal year end: December 31

 

Date of reporting period: March 31, 2008

ITEM 1. SCHEDULE OF INVESTMENTS.

Pacholder High Yield Fund, Inc.

Schedule of Portfolio Investments as of March 31, 2008

(Unaudited)

THE “UNAUDITED CERTIFIED MUTUAL FUNDS HOLDINGS” LIST (“the List”) IS TO BE USED FOR REPORTING PURPOSES ONLY. IT IS NOT TO BE REPRODUCED FOR USE AS ADVERTISING OR SALES LITERATURE WITH THE GENERAL PUBLIC. The list is submitted for the general information of the shareholders of the Fund. It is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by a prospectus. The list has been created from the books and records of the Fund. Certified holdings are available 60 days after the fund’s fiscal quarter, using a trade date accounting convention, by contacting the appropriate service center. The list is subject to change without notice. The list is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

JPMorgan Asset Management is the marketing name for the asset management business of J.P. Morgan Chase & Co.

JPMorgan Distribution Services, Inc.

© J.P. Morgan Chase & Co., 2006.

PACHOLDER HIGH YIELD FUND, INC.

Statement of Net Assets Applicable to Common Stockholders

March 31, 2008 (Unaudited)

 

Description

    Par (000)     Value    Percent
of Net Assets *		  

CORPORATE DEBT SECURITIES — 135.3%

        

AEROSPACE & DEFENSE — 0.2%

        

L-3 Communications Corp., Sr Nt,

        

6.38%, 10/15/15

    $ 250     $ 244,375    0.2 %
               

AIRLINES — 3.9%

        

American Airlines, Inc., Collateral Trust Notes,

        

10.18%, 1/2/13

      1,223       1,101,072    1.0  

American Airlines, Inc., Nt,

        

3.363%, 10/18/09 3,9

      625       575,425    0.6  

American Airlines, Inc., Pass Thru Cert,

        

7.379%, 5/23/16

      —   11     0    0.0  12

American Airlines, Inc., Private Placement, Nt,

        

10.32%, 7/30/14 2

      743       646,792    0.6  

Continental Airlines, Inc., Pass Thru Cert,

        

9.798%, 4/1/2110

      1,465       1,333,090    1.3  

Continental Airlines, Inc., Unsubordinated,

        

8.75%, 12/1/116

      250       194,375    0.2  

Delta Air Lines, Inc.,

        

8.30%, 12/15/29 1,4,6

      1,500       45,000    0.0  12

Delta Air Lines, Inc.,

        

10.125%, 5/15/10 1,4

      500       15,000    0.0  12

United Airlines, Inc., FRN,

        

6.97%, 7/2/14 2

      188       150,775    0.1  

United Airlines, Inc., Private Placement, Nt,

        

7.336%, 7/2/19 2

      92       77,428    0.1  
               
       4,138,957    3.9  
               

AUTO COMPONENTS — 2.2%

        

Delphi Corp.,

        

7.125% 5/1/29 1,4,6

      725       228,375    0.2  

JB Poindexter & Co., Inc., Co Guar,

        

8.75%, 3/15/14 10

      2,584       1,682,830    1.6  

Lear Corp., Sr Nt,

        

8.75%, 12/1/16

      535       456,756    0.4  
               
       2,367,961    2.2  
               

AUTOMOBILES — 4.7%

        

Ford Motor Co., Debentures,

        

7.125%, 11/15/25

      400       264,000    0.2  

Ford Motor Co., Nt,

        

7.45%, 7/16/31 10

      1,850       1,221,000    1.2  

9.98%, 2/15/47 10

      750       594,375    0.6  

General Motors Corp., Debentures,

        

8.10%, 6/15/24 10

      2,075       1,442,125    1.4  

8.375%, 7/15/33 6

      2,000       1,410,000    1.3  
               
       4,931,500    4.7  
               

BEVERAGES — 1.5%

        

Constellation Brands, Inc., Sr Nt,

        

7.25%, 5/15/17

      500       485,000    0.5  

8.375%, 12/15/14 6

      1,025       1,055,750    1.0  
               
       1,540,750    1.5  
               

BUILDING PRODUCTS — 0.6%

        

Associated Materials, Inc., Sr Nt,

        

11.25%, 3/1/14 6,7

      400       273,000    0.3  

Interline Brands, Inc., Sr Sub Nt,

        

8.125%, 6/15/14

      350       334,250    0.3  
               
       607,250    0.6  
               

CHEMICALS — 5.3%

        

Mosaic Co. (The), Private Placement, Sr Nt,

        

7.625%, 12/1/14 2

      125       133,750    0.1  

7.875%, 12/1/16 2

      125       134,375    0.1  

PolyOne Corp., Nt,

         

8.875%, 5/1/12 10

    2,500    2,525,000    2.4

Quality Distribution LLC/QD Capital Corp., Co Guar,

         

9.00%, 11/15/10 9,10

    1,250    781,250    0.8

Quality Distribution LLC/QD Capital Corp., FRN, Co Guar,

         

8.58%, 1/15/12 9,10

    850    635,375    0.6

Sterling Chemicals, Inc., Private Placement,

         

10.25%, 4/1/15 2

    850    859,563    0.8

Terra Capital, Inc., Sr Nt,

         

7.00%, 2/1/17

    525    517,781    0.5
            
      5,587,094    5.3
            

COMMERCIAL SERVICES & SUPPLIES — 3.3%

         

Cenveo Corp., Sr Sub Nt,

         

7.875%, 12/1/13

    325    263,250    0.3

Harland Clarke Holdings Corp.,

         

9.50%, 5/15/15

    450    330,750    0.3

Harland Clarke Holdings Corp., FRN,

         

7.85%, 5/15/15 6

    200    124,000    0.1

Phoenix Color Corp., Sr Sub Nt,

         

13.00%, 2/1/09

    2,030    1,999,550    1.9

Quebecor World Capital Corp. (Canada), Private Placement, Sr Nt,

         

8.75%, 3/15/16 1,2,4,10

    500    237,500    0.2

Quebecor World Capital Corp. (Canada), Sr Nt,

         

6.125%, 11/15/13 1,2,4,10

    850    348,500    0.3

Quebecor World, Inc. (Canada), Private Placement, Sr Nt,

         

9.75%, 1/15/15 1,2,4,10

    450    216,000    0.2
            
      3,519,550    3.3
            

CONSTRUCTION ENGINEERING — 0.6%

         

United Rentals North America, Inc., Co Guar,

         

6.50%, 2/15/12

    750    678,750    0.6
            

CONSUMER FINANCE — 4.8%

         

ACE Cash Express, Inc., Private Placement, Sr Nt,

         

10.25%, 10/1/14 2

    1,000    815,000    0.8

Ford Motor Credit Co. LLC, FRN,

         

7.127%, 1/13/12

    300    221,922    0.2

Ford Motor Credit Co. LLC, Nt,

         

8.00%, 12/15/16 10

    1,400    1,095,927    1.0

8.625%, 11/1/10 10

    1,330    1,158,824    1.1

Ford Motor Credit Co. LLC, Sr Nt,

         

9.75%, 9/15/10

    250    222,693    0.2

GMAC LLC,

         

6.625%, 5/15/12 10

    250    189,121    0.2

8.00%, 11/1/31

    1,925    1,379,632    1.3
            
      5,083,119    4.8
            

CONSUMER PRODUCTS — 3.3%

         

Jarden Corp.,

         

7.50%, 5/1/17 6

    1,300    1,137,500    1.1

Southern States Coop, Inc., Private Placement, Sr Nt,

         

11.00%, 11/1/10 2

    500    510,000    0.5

Spectrum Brands, Inc., PIK, Sr Nt,

         

11.50%, 10/2/13 6

    500    415,000    0.4

Spectrum Brands, Inc., Sr Nt,

         

7.375%, 2/1/15 6

    1,700    1,105,000    1.0

True Temper Sports, Inc., Sr Nt,

         

8.375%, 9/15/11

    490    294,000    0.3
            
      3,461,500    3.3
            

CONTAINERS & PACKAGING — 4.6%

         

Berry Plastics Holding Corp., Nt,

         

8.875%, 9/15/14 6

    500    436,250    0.4

Cascades, Inc., (Canada), Sr Nt,

         

7.25%, 2/15/13

    200    176,500    0.2

Constar International, Inc., FRN, Co Guar,

         

6.44%, 2/15/12

   750    603,750    0.6

Constar International, Inc., Sr Sub Nt,

         

11.00%, 12/1/12 10

    2,180    1,340,700    1.3

Plastipak Holdings, Inc., Private Placement, Sr Nt,

         

8.50%, 12/15/15 2

    300    273,000    0.2

Portola Packaging, Inc., Sr Nt,

         

8.25%, 2/1/12 10

    1,260    693,000    0.7

Smurfit-Stone Container Enterprises, Inc., Sr Nt,

         

8.00%, 3/15/17 10

    1,500    1,260,000    1.2
            
      4,783,200    4.6
            

DISTRIBUTORS — 1.1%

         

American Tire Distributors, Inc., Nt,

         

10.75%, 4/1/13

    1,250    1,187,500    1.1
            

DIVERSIFIED CONSUMER SERVICES — 5.2%

         

Allied Waste North America, Inc., Sr Nt,

         

6.125%, 2/15/14

    500    482,500    0.5

6.875%, 6/1/17

    250    245,000    0.2

Knowledge Learning Corp., Inc., Private Placement, Sr Sub Nt,

         

7.75%, 2/1/15 2

    2,100    1,963,500    1.9

Mac-Gray Corp., Sr Nt,

         

7.625%, 8/15/15

    650    617,500    0.6

Service Corp. International,

         

7.00%, 6/15/17

    750    723,750    0.7

Service Corp. International, Private Placement,

         

6.75%, 4/1/15

    250    245,938    0.2

Stewart Enterprises, Inc., Sr Nt,

         

6.25%, 2/15/13 10

    1,224    1,144,440    1.1
            
      5,422,628    5.2
            

DIVERSIFIED MANUFACTURING — 1.9%

         

Polypore, Inc., Sr Sub Nt,

         

8.75%, 5/15/12 10

    2,035    1,953,600    1.9
            

DIVERSIFIED TELECOMMUNICATION SERVICES — 4.9%

         

Level 3 Financing, Inc., Co. Guar,

         

9.25%, 11/1/14 10

    1,300    1,062,750    1.0

Level 3 Financing, Inc., FRN,

         

6.70%, 2/15/15

    250    175,000    0.2

Level 3 Financing, Inc., Sr Nt,

         

12.25%, 3/15/13

    200    180,000    0.2

PAETEC Holding Corp.,

         

9.50%, 7/15/15

   400    368,000    0.3

Qwest Corp., Sr Nt,

         

7.625%, 6/15/15 10

    1,650    1,608,750    1.5

Time Warner Telecom Holdings, Inc., Sr Nt,

         

9.25%, 2/15/14 10

    1,000    1,010,000    1.0

Windstream Corp.,

         

8.125%, 8/1/13

    750    736,875    0.7
            
      5,141,375    4.9
            

ELECTRIC UTILITIES — 1.9%

         

Energy Future Holdings Corp., Private Placement, Nt,

         

10.875%, 11/1/17 2

    450    454,500    0.4

Reliant Energy, Inc.,

         

7.625%, 6/15/14

    500    496,250    0.5

Reliant Energy, Inc., Sec’d Nt,

         

6.75%, 12/15/14 10

    1,000    1,017,500    1.0
            
      1,968,250    1.9
            

ELECTRONIC EQUIPMENT & INSTRUMENTS — 1.9%

         

Flextronics International Ltd. (Singapore), Debentures,

         

6.25%, 11/15/14

    210    193,200    0.2

Intcomex, Inc., Sec’d Nt,

         

11.75%, 1/15/11 10

    1,100    1,075,250    1.0

Sanmina-SCI Corp., FRN, Private Placement, Sr Nt,

         

5.55%, 6/15/14 2

    300    270,000    0.3

Smart Modular Technologies (Cayman Islands), FRN, Sr Nt,

         

10.29%, 4/1/12

    423    418,770    0.4
            
      1,957,220    1.9
            

ENERGY EQUIPMENT & SERVICES — 3.2%

         

Arch Western Finance LLC,

         

6.75%, 7/1/13

    250    249,375    0.3

Bristow Group, Inc., Co Guar,

         

6.125%, 6/15/13

    250    240,000    0.2

Calfrac Holdings LP, Private Placement, Debentures,

         

7.75%, 02/15/15 2

    250    233,750    0.2

Chart Industries, Inc., Sr Sub Nt,

         

9.125%, 10/15/15

    1,400    1,372,000    1.3

PHI, Inc., Co Guar,

         

7.125%, 4/15/13

    783    718,403    0.7  

Pride International, Inc., Sr Nt,

         

7.375%, 7/15/14

    200    208,000    0.2  

Seitel, Inc., Private Placement,

         

9.75%, 2/15/14

    350    294,875    0.3  
              
      3,316,403    3.2  
              

FOOD & STAPLES RETAILING — 2.0%

         

Golden State Foods Corp., Private Placement, Sr Sub Nt,

         

9.24%, 1/10/12 2,8,9

    1,550    1,590,688    1.5  

Rite Aid Corp., Debentures,

         

7.50%, 3/1/17

    600    540,000    0.5  
              
      2,130,688    2.0  
              

FOOD PRODUCTS — 4.4%

         

Chiquita Brands International, Inc., Sr Nt,

         

8.875%, 12/1/15

    2,199    1,940,617    1.8  

Eurofresh, Inc., Private Placement, Nt,

         

11.50%, 1/15/13 2,6

    2,650    1,550,250    1.5  

Land O’ Lakes, Inc., Sr Nt,

         

9.00%, 12/15/10

    500    520,000    0.5  

National Beef Packaging Co. LLC/NB Finance Corp., Sr Nt,

         

10.50%, 8/1/11 10

    500    475,000    0.5  

Pilgrim’s Pride Corp., Debentures,

         

8.375%, 5/1/17 6

    150    132,000    0.1  

Tom’s Foods, Inc., Sr Nt,

         

10.50%, 11/1/04 1,3,4,9

    888    8,885    0.0  12
              
      4,626,752    4.4  
              

GAMING — 3.9%

         

Mashantucket Western Pequot Tribe, Private Placement,

         

8.50%, 11/15/15 2

    1,320    1,161,600    1.1  

MGM Mirage, Inc., Co Guar,

         

7.625%, 1/15/17

   150    136,500    0.1  

MGM Mirage, Inc., Sr Nt,

         

7.50%, 6/1/16

    250    225,000    0.2  

Pokagon Gaming Authority, Private Placement, Sr Nt,

         

10.375%, 6/15/14 2

    349    368,195    0.4  

Seminole Hard Rock Entertainment, Inc., Private Placement, FRN,

         

5.30%, 03/15/14 2

    500    396,250    0.4  

Shingle Springs Tribal Gaming Authority, Private Placement, Sr Nt,

         

9.375%, 6/15/15 2

    1,000    885,000    0.8  

Wynn Las Vegas Capital Corp., Nt,

         

6.625%, 12/1/14

    1,000    962,500    0.9  
              
      4,135,045    3.9  
              

HEALTH CARE EQUIPMENT & SUPPLIES — 1.1%

         

Cooper Cos, Inc. (The), Sr Nt,

         

7.125%, 2/15/15

    500    475,000    0.4  

LVB Acquisition Merger Sub, Inc., Private Placement,

         

10.00%, 10/15/17 2,6

    700    733,250    0.7  
              
      1,208,250    1.1  
              

HEALTH CARE PROVIDERS & SERVICES — 11.0%

         

Community Health Systems, Inc., Private Placement,

         

8.875%, 7/15/15

    800    803,000    0.8  

HCA, Inc., Debentures,

         

6.30%, 10/1/12 10

    250    222,500    0.2  

HCA, Inc., Nt,

         

6.75%, 7/15/13

   500    442,500    0.4  

HCA, Inc., Private Placement, Sec’d Nt,

         

9.125%, 11/15/14

   475    489,250    0.5  

9.25%, 11/15/16

   1,000    1,037,500    1.0  

Medical Services Co., FRN, Co Guar,

         

11.758%, 10/15/11 10

    2,800    2,506,000    2.4  

Multiplan, Inc., Private Placement,

         

10.375%, 4/15/16 2

    1,000    915,000    0.9  

TeamHealth, Inc., Sr Sub Nt,

         

11.25%, 12/1/13 10

    2,184    2,096,640    2.0  

Tenet Healthcare Corp., Sr Nt,

         

9.875%, 7/1/14 10

    1,550    1,499,625    1.4  

Vanguard Health Holding Co. II LLC, Sr Sub Nt,

         

9.00%, 10/1/14 10

    1,625    1,564,063    1.4  
              
      11,576,078    11.0  
              

HOTELS, RESTAURANTS & LEISURE — 0.7%

         

OSI Restaurant Partners, Inc., Private Placement,

         

10.00%, 6/15/15 2,6

    300    189,000    0.2  

Six Flags, Inc., Sr Nt,

         

9.625%, 6/1/14

   1,000    565,000    0.5  
              
      754,000    0.7  
              

HOUSEHOLD DURABLES — 0.7%

         

KB Home, Sr Nt,

         

5.875%, 1/15/15

    585    506,025    0.5  

Meritage Homes Corp., Sr Nt,

         

7.00%, 5/1/14

   250    189,375    0.2  
              
      695,400    0.7  
              

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 7.8%

         

AES Corp. (The),

         

8.75%, 05/15/13 2

    750    780,000    0.8  

Calpine Generating Co. LLC, FRN, Sec’d Nt,

         

14.37%, 4/1/11 1,3,4,6

    1,000    122,559    0.1  

Dynegy Holdings, Inc., Sr Unsec’d Nt,

         

7.125%, 5/15/18

    500    450,000    0.4  

7.50%, 6/1/15

    1,000    937,500    0.9  

Edison Mission Energy, Sr Nt,

         

7.75%, 6/15/16

    1,500    1,545,000    1.5  

Mirant Americas Generation LLC, Sr Nt,

         

8.30%, 5/1/11 10

    1,250    1,275,000    1.2  

8.50%, 10/1/21

    1,000    907,500    0.9  

NRG Energy, Inc., Sr Nt,

         

7.375%, 1/15/17

    1,875    1,823,437    1.7  

Texas Competitive Electric Holdings Co. LLC, Private Placement,

         

10.25%, 11/1/15 2

    350    348,688    0.3  
              
      8,189,684    7.8  
              

INDUSTRIAL CONGLOMERATES — 1.0%

         

Milacron Escrow Corp., Sec’d Nt,

         

11.50%, 5/15/11 10

    1,445    1,080,138    1.0  
              

INDUSTRIAL MACHINERY — 1.6%

         

Baldor Electric Co., Sr Nt,

         

8.625%, 2/15/17

    100    99,000    0.1  

General Cable Corp., FRN,

         

7.104%, 4/1/15

    250    215,625    0.2  

RBS Global, Inc. & Rexnord Corp., Sr Nt,

         

8.875%, 9/1/16 10

    1,150    1,017,750    1.0  

RBS Global, Inc. & Rexnord Corp., Sr Sub Nt,

         

11.75%, 8/1/16 6

    410    354,650    0.3  
              
      1,687,025    1.6  
              

INSURANCE — 1.3%

         

Crum and Forster Holdings Corp.,

         

7.75%, 5/1/17

    600    568,500    0.5  

HUB International Holdings, Inc., Private Placement,

         

9.00%, 12/15/14 2

    500    390,000    0.4  

10.25%, 6/15/15 2

    500    365,000    0.4  
              
      1,323,500    1.3  
              

IT SERVICES — 1.8%

         

Unisys Corp., Sr Nt,

         

8.00%, 10/15/12 10

    1,000    860,000    0.9  

12.50%, 1/15/16 6

    1,000    985,000    0.9  
              
      1,845,000    1.8  
              

MARINE — 0.4%

         

Ultrapetrol Bahamas Ltd. (Bahamas), 1st Mtg,

         

9.00%, 11/24/14

    450    405,000    0.4  
              

MEDIA — 14.7%

         

Adelphia Communications Corp.,

         

6.00%, 2/15/06 1,4

    125    12    0.0  12

Adelphia Communications Corp., Sr Nt,

         

8.125%, 7/15/03 1,4

    750    55,313    0.1  

9.375%, 11/15/09 1,4

    560    42,000    0.0  12

Adelphia Recovery Trust, Contingent Value,

         

0%, 12/31/49 1,4

    1,297    84,298    0.1  

Barrington Broadcasting Group LLC and Barrington Broadcasting Capital Corp., Sr Sub Nt,

         

10.50%, 8/15/14

    700    623,000    0.6

Block Communications, Inc., Private Placement, Sr Nt,

         

8.25%, 12/15/15 2

    300    282,000    0.3

CanWest MediaWorks LP (Canada), Private Placement, Sr Nt,

         

9.25%, 8/1/15 2

    750    690,000    0.7

CCH I Holdings LLC/CCH I Holdings Capital Corp., Co Guar,

         

11.125%, 1/15/14 6

    350    168,000    0.2

CCH I Holdings LLC/CCH I Holdings Capital Corp., Sec’d Nt,

         

11.00%, 10/1/15 10

    1,805    1,254,475    1.2

CCH II LLC/CCH II Cap Corp., Sr Nt,

         

10.25%, 9/15/10

    500    453,750    0.4

Charter Communications, Inc., Nt,

         

10.875%, 9/15/14 2,6

    500    492,500    0.5

CSC Holdings, Inc.,

         

7.625%, 4/1/11

    500    494,375    0.5

DirecTV Holdings LLC/DirecTV Financing Co., Sr Nt,

         

8.375%, 3/15/13

    1,000    1,013,750    1.0

Fisher Communications, Inc., Sr Nt,

         

8.625%, 9/15/14

    500    505,000    0.5

Idearc, Inc., Sr Nt,

         

8.00%, 11/15/16

    850    550,375    0.5

Intelsat Jackson Holdings Ltd. (Bermuda), Nt,

         

9.25%, 6/15/16 10

    600    604,500    0.6

11.25%, 6/15/16 10

    500    506,875    0.5

Intelsat Corp., Sr Nt,

         

9.00%, 8/15/14

    649    653,867    0.6

Lamar Media Corp., Sr Sub Nt,

         

6.625%, 8/15/15 6

    1,250    1,100,000    1.0

LBI Media, Inc., Sr Disc Nt,

         

11.00%, 10/15/13 7

    625    510,156    0.5

Nexstar Finance Holdings LLC/Nexstar Finance Holdings, Inc., Sr Disc Nt,

         

0.00%, 4/1/13 7

    750    728,438    0.7

Quebecor Media, Inc. (Canada), Sr Nt,

         

7.75%, 3/15/16 10

    750    684,375    0.6

Radio One, Inc., Sr Sub Nt,

         

6.375%, 2/15/13 6

    500    360,000    0.3

RH Donnelley Corp., Sr Disc Nt,

         

6.875%, 1/15/13

    250    152,500    0.1

RH Donnelley Corp., Sr Nt,

         

8.875%, 1/15/16

    250    158,125    0.2

Valassis Communications, Inc., Private Placement,

         

8.25%, 3/1/15

    1,250    1,028,125    1.0

Videotron Ltee (Canada), Co Guar, Sr Unsec’d Nt,

         

6.375%, 12/15/15 10

    500    437,500    0.4

Virgin Media Finance plc (United Kingdom), Sr Nt,

         

9.125%, 8/15/16 6

    1,000    895,000    0.8

XM Satellite Radio, Inc., Private Placement,

         

10.00%, 6/1/13

    1,000    955,000    0.8
            
      15,483,309    14.7
            

METALS & MINERALS — 1.6%

         

AK Steel Corp., Co. Guar, Sr Nt,

         

7.75%, 6/15/12

    800    807,000    0.8

Wolverine Tube, Inc., Sr Nt,

         

10.50%, 4/1/09 6

    945    845,775    0.8
            
      1,652,775    1.6
            

MULTILINE RETAIL — 0.7%

         

Dollar General Corp., Sr Nt,

         

10.625%, 7/15/15 6

    750    723,750    0.7
            

OIL, GAS & CONSUMABLE FUELS — 8.9%

         

El Paso Corp., Sr Nt,

         

6.875%, 6/15/14

    150    152,966    0.2

El Paso Performance-Linked Trust, Private Placement, Sr Nt,

         

7.75%, 7/15/11 2

    500    511,219    0.5

Encore Acquisition Co., Sr Nt,

         

6.00%, 7/15/15 10

    1,000    900,000    0.9

Forbes Energy Services, Sr Nt,

         

11.00%, 2/15/15 2

    1,000    980,000    0.9

Helix Energy Solutions Group, Inc.,

         

9.50%, 1/15/16 2

    1,000    1,000,000    1.0  

Massey Energy Co., Nt,

         

6.875%, 12/15/13

    750    725,625    0.7  

Massey Energy Co., Sr Nt,

         

6.625%, 11/15/10

    250    247,813    0.2  

Northwest Pipeline Corp., Sr Nt,

         

7.00%, 6/15/16

    500    531,250    0.5  

OPTI Canada, Inc., (Canada), Co Guar,

         

8.25%, 12/15/14

   1,180    1,168,200    1.1  

Range Resources Corp., Sr Sub Nt,

         

7.50%, 5/15/16

    350    358,750    0.3  

Southwestern Energy Co., Nt,

         

7.50%, 2/1/18 2

    200    207,000    0.2  

Swift Energy Co., Sr Nt,

         

7.125%, 6/1/17

    1,510    1,385,425    1.3  

W&T Offshore, Inc., Private Placement, Sr Nt,

         

8.25%, 6/15/14 2

    1,000    927,500    0.9  

Williams Partners LP/Williams Partners Finance Corp., Sr Nt,

         

7.25%, 2/1/17

    250    251,250    0.2  
              
      9,346,998    8.9  
              

PAPER & FOREST PRODUCTS — 3.5%

         

Abitibi-Consolidated Co. of Canada, Sr Nt,

         

6.00%, 6/20/13 6

    630    305,550    0.3  

8.375%, 4/1/15 6

    1,395    718,425    0.7  

Abitibi-Consolidated, Inc., Sr Nt,

         

8.85%, 8/01/30

    25    11,249    0.0  12

Ainsworth Lumber Co., Ltd. (Canada), Sr Nt,

         

6.75%, 3/15/14

   370    214,600    0.2  

Bowater Canada Finance Corp. (Canada), Nt,

         

7.95%, 11/15/11

    500    342,500    0.3  

Georgia-Pacific LLC, Private Placement, Co Guar,

         

7.00%, 1/15/15 2

    125    117,188    0.1  

7.125%, 1/15/17 2

    325    300,625    0.3  

NewPage Corp., Sr Nt,

         

10.00%, 5/1/12

    200    203,000    0.2  

12.00%, 5/1/13 6

    800    802,000    0.8  

Verso Paper Holdings LLC & Verso Paper, Inc., Private Placement,

         

11.375%, 8/1/16 6

    725    665,188    0.6  
              
      3,680,325    3.5  
              

PHARMACEUTICALS — 1.3%

         

Celtic Pharma Phinco B.V., Private Placement (Bermuda),

         

17.00%, 6/15/12 9

    1,147    1,146,922    1.1  

Elan Finance plc/Elan Finance Corp. (Ireland), FRN, Sr Nt,

         

7.065%, 11/15/11

    90    81,000    0.1  

Valeant Pharmaceuticals International,

         

7.00%, 12/15/11

    100    95,250    0.1  
              
      1,323,172    1.3  
              

REAL ESTATE INVESTMENT TRUSTS (REITs) — 0.0% 12

         

Thornburg Mortgage, Inc., Sr Nt,

         

8.00%, 5/15/13 6

    75    43,500    0.0  12
              

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 4.5%

         

Freescale Semiconductor, Inc., Private Placement, Sr Nt,

         

8.875%, 12/15/14

    450    352,125    0.3  

MagnaChip Semiconductor S.A./MagnaChip Semiconductor Finance Co. (Luxembourg), FRN, Sec’d Nt,

         

6.05%, 12/15/11 6

    1,000    720,000    0.7  

MagnaChip Semiconductor S.A,/MagnaChip Semiconductor Finance Co. (Luxembourg), Sec’d Nt,

         

6.875%, 12/15/11 10

    750    540,000    0.5  

MagnaChip Semiconductor S.A./MagnaChip Semiconductor Finance Co. (Luxembourg), Sr Sub Nt,

         

8.00%, 12/15/14 6,10

    1,150    655,500    0.6  

NXP BV/NXP Funding LLC (Netherlands), FRN, Sr Nt,

         

7.008%, 10/15/13

    400    330,000    0.3  

NXP BV/NXP Funding LLC (Netherlands), Sr Nt,

         

7.875%, 10/15/14 6

    1,640    1,500,600    1.5  

Spansion, Inc., FRN, Private Placement,

         

6.201%, 6/1/13 2

    1,000    675,000    0.6  
              
      4,773,225    4.5  
              

SPECIALTY RETAIL — 0.5%

         

Collective Brands, Inc.,

         

8.25%, 8/1/13

    250    220,000    0.2  

General Nutrition Centers, Inc., PIK,

         

7.199%, 3/15/14

    340    283,900    0.3  
              
      503,900    0.5  
              

TEXTILES, APPAREL & LUXURY GOODS — 1.6%

         

Broder Bros. Co., Sr Nt,

         

11.25%, 10/15/10 10

    1,835    1,238,625    1.2  

Hanesbrands, Inc., FRN, Sr Nt,

         

8.204%, 12/15/14

    500    443,750    0.4  

Westpoint Stevens, Inc., Sr Nt,

         

7.875%, 6/15/05 1,3,4,9

    1,000    0    0.0  
              
      1,682,375    1.6  
              

TOBACCO — 2.5%

         

Alliance One International, Inc., Nt,

         

11.00%, 5/15/12 10

    2,400    2,436,000    2.3  

12.75%, 11/15/12

    150    151,500    0.2  
              
      2,587,500    2.5  
              

TRANSPORTATION SERVICES — 0.4%

         

IdleAire Technologies Corp., Sr Disc Nt,

         

13.00%, 12/15/12 7

    1,415    424,500    0.4  
              

WIRELESS TELECOMMUNICATION SERVICES — 2.3%

         

iPCS, Inc., FRN, Sr Nt,

         

5.364%, 5/1/13

    440    338,800    0.3  

MetroPCS Wireless, Inc., Sr Nt,

         

9.25%, 11/1/14 6

    2,250    2,070,000    2.0  
              
      2,408,800    2.3  
              

Total Corporate Debt Securities

(Cost $162,595,477)

       142,181,671    135.3  
              

LOAN PARTICIPATIONS & ASSIGNMENTS — 21.9%

         

AUTOMOBILES — 1.5%

         

Ford Motor Co., Term Loan B,

         

8.00%, 12/15/13

    1,980    1,620,421    1.5  
              

CHEMICALS — 1.1%

         

Millenium Chemicals, Inc., 1st Lien Term Loan,

         

7.08%, 1/26/13 9

    1,000    815,000    0.8  

Millenium Chemicals, Inc., 2nd Lien Term Loan,

         

10.58%, 1/26/13 9

    500    325,000    0.3  
              
      1,140,000    1.1  
              

COMMERCIAL SERVICES & SUPPLIES — 0.7%

         

Clarke American, Tranche B, Term Loan,

         

5.20%, 6/30/14

    315    253,203    0.3  

7.33%, 6/30/14

    109    87,662    0.1  

7.33%, 6/30/14

    97    77,878    0.1  

7.33%, 6/30/14

    182    145,973    0.1  

7.33%, 6/30/14

    170    136,190    0.1  
              
      700,906    0.7  
              

CONSUMER PRODUCTS — 0.4%

         

Spectrum Brands, Inc., Term Loan B,

         

7.07%, 3/30/13

    39    34,431    0.0  12

7.07%, 3/30/13

    65    57,602    0.1  

7.10%, 3/30/13

    34    30,127    0.0  12

7.10%, 3/30/13

    97    86,078    0.1  

8.44%, 3/30/13

    133    118,358    0.1  

8.62%, 3/30/13

    109    96,838    0.1  

Spectrum Brands, Inc., Letter of Credit,

         

2.97%, 3/30/13

    24    21,520    0.0  12
              
      444,954    0.4  
              

DIVERSIFIED FINANCIAL SERVICES — 1.5%

         

Realogy Corp., Bank Loan, Letter of Credit,

         

2.96%, 4/5/14

    422    336,490    0.3  

Realogy Corp., Initial Term Loan B,

         

7.50%, 10/10/13

    1,568    1,249,819    1.2  
              
      1,586,309    1.5  
              

GAMING — 1.1%

         

Venetian Macau, Term Loan B,

         

4.95%, 5/25/13

    1,333    1,201,213    1.1  
              

HEALTH CARE PROVIDERS & SERVICES —1.4%

         

Biomet, Inc., 1st Lien Term Loan

         

5.70%, 3/15/15

    998    959,615    0.9  

HCA, Inc., Term Loan B,

         

7.08%, 11/14/13

    495    455,212    0.5  
              
      1,414,827    1.4  
              

HOTELS, RESTAURANTS & LEISURE —0.4%

         

Outback Restaurant Partners, Inc., Term Loan B,

         

5.00%, 6/14/13

    476    363,440    0.4  

Outback Restaurant Partners, Inc., Prerefunded RC Commitment,

         

2.67%, 6/14/14

    5    4,103    0.0  12
              
      367,543    0.4  
              

HOUSEHOLD DURABLES —0.8%

         

Jacuzzi Brands, Inc., 1st Lien, Letter of Credit,

         

4.73%, 2/17/14

    24    19,211    0.0  12

Jacuzzi Brands, Inc., 1st Lien, Term Loan B,

         

5.49%, 2/7/14

    274    215,989    0.2  

5.51%, 2/7/14

    1    432    0.0  12

Jacuzzi Brands, Inc., 2nd Lien,

         

9.24%, 8/7/14

    667    402,000    0.4  

9.24%, 8/7/14

    167    100,500    0.1  

9.24%, 8/20/14

    167    100,500    0.1  
              
      838,632    0.8  
              

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS —2.8%

         

Calpine Corp., 1st Priority Term Loan,

         

6.14%, 3/29/09

    628    545,287    0.5  

7.08%, 3/29/14

    1,639    1,461,800    1.5  

Texas Competitive Electric Holdings Co. LLC, Initial Tranche B-2, Term Loan,

         

6.48%, 8/7/14

    143    130,030    0.1  

6.60%, 8/7/14

    855    777,905    0.7  
              
      2,915,022    2.8  
              

IT SERVICES —3.3%

         

Alltel Communications, Inc., Initial Tranche B-3, Term Loan,

         

5.57%, 5/16/15

    995    898,087    0.9  

Compucom Systems, Inc., Term Loan,

         

6.21%, 9/1/14

    998    872,813    0.8  

First Data Corp., Initial Term Loan B-1,

         

5.35%, 9/24/14

    11    9,848    0.0  12

5.35%, 9/24/14

    361    323,913    0.3  

7.58%, 9/24/14

    28    24,740    0.0  12

First Data Corp., Initial Term Loan B-3,

         

5.35%, 9/24/14

    1,394    1,252,999    1.2  

5.45%, 9/24/14

    103    92,879    0.1  
              
      3,475,279    3.3  
              

MEDIA —2.4%

         

Sirius Satellite Radio, Term Loan B,

         

5.00%, 12/1/12

    499    433,912    0.4  

Univision Communications, Inc., 1st Lien Initial Term Loan,

         

4.95%, 3/29/09

    41    31,837    0.0  12

5.49%, 9/16/14

    1,418    1,114,309    1.1  

Univision Communications, Inc., 2nd Lien Term Loan,

         

5.20%, 3/1/09

    1,000    940,000    0.9  
              
      2,520,058    2.4  
              

MULTILINE RETAIL —0.8%

         

Dollar General Corp., Tranche B-1 Term Loan,

         

5.99%, 7/3/14

    719    642,859    0.5  

5.99%, 7/3/14

    31    25,604    0.0  12

Dollar General Corp., Tranche B-2 Term Loan,

         

5.99%, 7/6/14

    46    38,074    0.0  12

7.59%, 7/3/14

    63    51,919    0.1  

7.73%, 7/6/14

    79    65,765    0.1  

7.83%, 7/6/14

    63    51,919    0.1  
              
      876,140    0.8  
              

PAPER & FOREST PRODUCTS —1.0%

         

Abitibi-Consolidated Co. of Canada (Canada), Term Loan,

         

11.50%, 3/31/09

    300    291,750    0.3  

NewPage Corp., Term Loan,

         

6.31%, 6/23/08

    748    732,384    0.7  

8.75%, 3/31/09

    2    1,835    0.0  12
              
      1,025,969    1.0  
              

PROPERTY & CASUALTY — 0.6%

        

Swett & Crawford Group, 1st Lien Bank Debt,

        

6.25%, 4/3/14

    3     1,675    0.0  12

6.25%, 4/16/14

    990     663,300    0.6  
             
     664,975    0.6  
             

SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT — 1.7%

        

Isola Group S.A.R.L., 1st Lien Term Loan,

        

7.45%, 12/18/13

    494     429,563    0.4  

Isola Group S.A.R.L., 2nd Lien Term Loan,

        

10.45%, 12/18/13

    250     220,000    0.2  

Sirius Computer Solutions, 2nd Lien Term Loan,

        

8.70%, 5/30/13

    1,000     920,000    0.9  

TTM Technologies, Inc., Term Loan,

        

4.96%, 10/31/12

    60     55,200    0.1  

5.59%, 10/31/12

    140     128,800    0.1  
             
     1,753,563    1.7  
             

SPECIALITY RETAIL — 0.4%

        

ARAMARK Corp., Letter of Credit Facility Deposit,

        

7.07%, 1/26/14

    470     437,642    0.4  

ARAMARK Corp., Term Loan,

        

4.57%, 1/26/14

    30     27,833    0.0  12
             
     465,475    0.4  
             

Total Loan Participations & Assignments

(Cost $26,335,046)

      23,011,286    21.9  
             

ASSET-BACKED SECURITIES — 0.1%

        

Citigroup Mortgage Loan Trust, Inc.,

        

Series 2005-HE3, Class M12, FRN, 4.599%, 9/25/35 2,9

    500     25,000    0.0  12

Countrywide Asset-Backed Certificates,

        

Series 2004-13, Class MV8, FRN, 4.299%, 1/25/35 9

    115     53,023    0.1  

Long Beach Mortgage Loan Trust,

        

Series 2004-5, Class M6, FRN, 5.099%, 9/25/34 9

    83     18,771    0.0  12
             

Total Asset-Backed Securities

(Cost $584,413)

      96,794    0.1  
             

Total Fixed Income Investments

(Cost $189,514,936)

      165,289,751    157.3  
             

PREFERRED STOCKS — 0.2%

        

CONTAINERS & PACKAGING — 0.0%

        

Glasstech, Inc., Series C, Pfd 3,9

    —   11   —      0.0  
             

MEDIA — 0.2%

        

Spanish Broadcasting System, Series B, Pfd, PIK,

    —   11     

10.75%, 10/15/13

      207,940    0.2  
             

Total Preferred Stocks

(Cost $296,000)

      207,940    0.2  
             

COMMON STOCKS — 0.8%

        

AIRLINES — 0.2%

        

Delta Air Lines, Inc.1

    21     181,916    0.2  
             

BUILDING PRODUCTS — 0.0% 12

       

Lexington Coal Co. 1,3

    25     22,831    0.0  12
             

CONTAINERS & PACKAGING — 0.0%

        

Glasstech, Inc., Class C 1,3,9

    —   11   —      0.0  
             

DIVERSIFIED TELECOMMUNICATION SERVICES — 0.1%

        

AboveNet, Inc. 1

    2     134,687    0.1  

XO Holdings, Inc. 1

    1     671    0.0  12
             
     135,358    0.1  
             

HOTELS, RESTAURANTS & LEISURE — 0.0% 12

        

Bally Total Fitness Holding Corp. 1,3,9

   2     595    0.0  12

Bally Total Fitness Holding Corp. 1,3,6,8

   4     654    0.0  12
             
     1,249    0.0  12
             

INDEPENDENT POWER PRODUCERS & ENERGY TRADERS — 0.0% 12

        

Mirant Corp. 1

    1     33,988    0.0  12
             

MEDIA — 0.5%

        

Adelphia Recovery Trust 1,3

    157     1    0.0  12

Time Warner Cable, Inc., Class A 1

   23     563,199    0.5  
             
     563,200    0.5  
             

SPECIALTY RETAIL— 0.0% 12

       

Mattress Discounters Corp. 1,3,9

    8      13,909     0.0  12
                 

TEXTILES, APPAREL & LUXURY GOODS — 0.0%

        

Westpoint Stevens, Inc. 1,3,9

    14      —       0.0  
                 

Total Common Stocks

(Cost $3,790,931)

         952,451     0.8  
                 

RIGHTS—0.0%

        

TEXTILES, APPAREL & LUXURY GOODS — 0.0%

        

Westpoint Stevens, Inc. 1,3,9

        

Expiring 4/25/14

(Cost $184,476)

    13      —       0.0  
                 

WARRANTS — 0.1%

        

DIVERSIFIED TELECOMMUNICATION SERVICES — 0.1%

        

Abovenet, Inc., 9/8/08 1,3,9 (Strike Price $20.00)

    1      32,634     0.0  12

Abovenet, Inc., 9/8/10 1,3,9 (Strike Price $24.00)

    1      35,235     0.1  

XO Holdings, Inc., Series A, 1/16/101 (Strike Price $6.25)

    1      103     0.0  12

XO Holdings, Inc., Series B, 1/16/101 (Strike Price $7.50)

    1      39     0.0  12

XO Holdings, Inc., Series C, 1/16/101 (Strike Price $10.00)

    1      31     0.0  12
                 
        68,042     0.1  
                 

TRANSPORTATION SERVICES — 0.0% 12

        

IdleAire Technologies Corp. 12/15/15 1 (Strike Price $1.00)

    1      2,123     0.0  12
                 

Total Warrants

(Cost $417,200)

         70,165     0.1  
                 

Total Equity Investments

(Cost $4,688,607)

         1,230,556     1.1  
                 

SHORT-TERM INVESTMENT — 2.8%

        

INVESTMENT COMPANY — 2.8%

        

Federated Prime Obligations Fund

(Cost $2,911,657)

    2,912      2,911,657     2.8  
                 

INVESTMENTS OF CASH COLLATERAL FOR SECURITIES ON LOAN — 19.1%

        

Lehman Brothers, Inc. - Repurchase agreement, 2.99%, dated 3/31/08, matures 4/1/08, repurchase price $20,081,396, collateralized by

        

U.S. Government Agency Mortgages

(Cost $20,079,727)

    20,080      20,079,727     19.1  
                 

TOTAL INVESTMENTS

(Cost $217,194,927)

         189,511,691     180.3  
                 

Payable Upon Return of Securities Loaned

         (20,079,727 )   (19.1 )

Payable to Advisor

         (475,189 )   (0.4 )

Payable to Administrator

         (2,811 )   (0.0 ) 12

Custody Fees Payable

         (1,689 )   (0.0 ) 12

Unrealized Depreciation on Unfunded Commitments

         (147,313 )   (0.1 )

Unrealized Depreciation on Swap Agreements

         (1,238,574 )   (1.2 )

Other Assets in Excess of Other Liabilities

         3,517,935     3.3  

Less: Outstanding Preferred Stock (2,640 shares at $25,000 per share) at liquidation value.

         (66,000,000 )   (62.8 )
                 

Net Assets Applicable to Common Stockholders

       $ 105,084,323    
             

Net Asset Value Per Common Share

($105,084,323/12,944,067)

       $ 8.12    
             

 

* Applicable to common stockholders.

 

1 Non-income producing security.

 

2 Security is exempt from registration under Rule 144A of the Securities Act of 1933. Unless otherwise indicated, this security has been determined to be liquid under procedures established by the Board of Directors and may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities amounted to $23,205,386 and 22.1% of net assets applicable to common stockholders.

 

3 Fair valued security. These securities amounted to $812,728 and 0.8% of net assets applicable to common stockholders.

 

4 Security in default.

 

6 All or a portion of the security is on loan. Securities on loan have a fair market value of $19,032,208.

 

7 Step-up bond. Interest rate is effective rate as of March 31, 2008.

 

8 Restricted security. These securities amounted to $1,591,342 and 1.5% of net assets applicable to common stockholders.

 

9 Security deemed to be illiquid. These securities amounted to $6,057,712 and 5.8% of net assets applicable to common stockholders.

 

10 All or a portion of the security is reserved for current or potential holdings of swaps, TBAs, when-issued securities and delayed delivery securities.

11    Amount rounds to less than 1,000 shares.
12    Amount rounds to less than 0.1%.
Cert    Certificate
Co    Company
Disc    Discount
FRN    Floating Rate Note. Interest rate shown is rate in effect as of March 31, 2008.
Guar    Guaranteed
LIBOR    London Interbank Offered Rate
Mtg    Mortgage
Nt    Note
Pfd    Preferred
PIK    Payment in-kind
Sec’d    Secured
Sr    Senior
Sub    Subordinate
Unsec’d    Unsecured

INTEREST RATE SWAPS— The Fund entered into interest payment swap arrangements with Citibank, N. A. New York (Citibank) for the purpose of partially hedging its dividend payment obligations with respect to the Series W Auction Rate Cumulative Preferred Stock (“ARPS”). Pursuant to each of the swap arrangements, the Fund makes payments to Citibank on a monthly basis at fixed annual rates. In exchange for such payments Citibank makes payments to the Fund on a monthly basis at a variable rate determined with reference to the one month London Interbank Offered Rate (LIBOR). The variable rates ranged from 2.54% to 4.57% for the quarter ended March 31, 2008. The effective date, notional contract amount, maturity, fixed and floating annual rates and unrealized appreciation/depreciation of the swaps are as follows:

 

Effective
Date		    Notional Contract
Amount		    Maturity    Payments Made by the
Fund		  

Payments Received by
the Fund

    Floating
Annual
Rate *		     Unrealized
Appreciation/
(Depreciation)		  
11/30/2007    $ 5 million    6/1/2011    4.00%monthly   1 Month LIBOR monthly    2.70 %   $ (197,792 )
6/1/2005    $ 5 million    6/2/2008    4.10%monthly   1 Month LIBOR monthly    2.70       (14,422 )
6/1/2005    $ 5 million    6/1/2009    4.15%monthly   1 Month LIBOR monthly    2.70       (109,581 )
12/1/2005    $ 5 million    12/1/2009    4.74%monthly   1 Month LIBOR monthly    2.70       (200,825 )
12/1/2006    $ 5 million    12/1/2010    5.01%monthly   1 Month LIBOR monthly    2.70       (313,600 )
8/14/2006    $ 5 million    12/1/2008    5.26%monthly   1 Month LIBOR monthly    2.70       (102,093 )
8/14/2006    $ 5 million    6/1/2010    5.26%monthly   1 Month LIBOR monthly    2.70       (300,261 )

 

* Represents rate in effect at March 31, 2008.

In September 2006, the Statement of Financial Accounting Standards No. 157—Fair Value Measurements- (“SFAS 157”), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. SFAS 157 requires disclosure surrounding the various inputs that are used in determining the value of the Fund’s investments. These inputs are summarized into the three broad levels listed below.

 

  •  

Level 1 – quoted prices in active markets for identical securities

 

  •  

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

 

  •  

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

The inputs or methodology used for valuing 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 March 31, 2008 in valuing the Fund’s assets and liabilities carried at fair value:

 

Valuation Inputs

    Investments in
Securities		    Liabilities in
Securities
Sold Short		    Appreciation in
Other
Financial
Instruments*		    Depreciation in
Other Financial
Instruments*		  

Pacholder High Yield Fund, Inc.

            

Level 1

    $ 23,906,019    $ —      $ —      $ —    

Level 2

      164,792,944      —        —        (1,238,574 )

Level 3

      812,728      —        —        —    
                             

Total

    $ 189,511,691    $ —      $ —      $ (1,238,574 )
                             

 

* Other financial instruments include futures, forwards and swap contracts.

SFAS 157 also requires a reconciliation of assets and liabilities for which significant unobservable inputs (Level 3) were used in determining fair value:

 

     Investments in
Securities		     Liabilities in
Securities
Sold Short		    Appreciation in
Other Financial
Instruments*		    Depreciation in
Other Financial
Instruments*

Pacholder High Yield Fund, Inc.

           

Balance as of 12/31/07

    $ 308,148     —      —      —  

Realized gain (loss)

      —       —      —      —  

Change in unrealized appreciation (depreciation)

      (29,730 )   —      —      —  

Net purchases (sales)

      —       —      —      —  

Net transfers in (out) of Level 3

      534,310     —      —      —  
                      

Balance as of 03/31/08

    $ 812,728     —      —      —  
                      

 

* Other financial instruments include futures, forwards and swap contracts.

ITEM 2. CONTROLS AND PROCEDURES.

 

  (a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

  (b) 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 most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal controls over financial reporting.

 

ITEM 3. EXHIBITS.

CERTIFICATIONS PURSUANT TO RULE 30a-2(a) UNDER THE INVESTMENT COMPANY ACT OF 1940 ARE ATTACHED HERETO.

SIGNATURES

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

 

Pacholder High Yield Fund, Inc.
By:   /s/
  Gary J. Madich
  President and Principal Executive Officer
  May 29, 2008

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/
  Gary J. Madich
  President and Principal Executive Officer
  May 29, 2008
By:   /s/
  Patricia A. Maleski
  Principal Financial Officer
  May 29, 2008
 EX-99.CERT 2 dex99cert.htm 302 CERTIFICATIONS 302 CERTIFICATIONS

EXHIBIT 99.302CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE INVESTMENT COMPANY ACT OF 1940

I, Gary J. Madich, certify that:

 

1. I have reviewed this report on Form N-Q of Pacholder High Yield Fund, Inc. (the “Fund” or “Registrant”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the Registrant and have:

 

  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5. The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

  a) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

 

  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

Date: May 29, 2008     By:   /s/
        Gary J. Madich
        President and Principal Executive Officer

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE INVESTMENT COMPANY ACT OF 1940

I, Patricia A. Maleski, certify that:

 

1. I have reviewed this report on Form N-Q of Pacholder High Yield Fund, Inc. (the “Fund” or “Registrant”);

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedule of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the Registrant and have:

 

  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

 

  d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5. The Registrant’s other certifying officer and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

  c) All significant deficiencies and material weakness in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

 

  d) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

Date: May 29, 2008     By:   /s/
        Patricia A. Maleski
        Principal Financial Officer
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