0000088053-18-001116.txt : 20181026 0000088053-18-001116.hdr.sgml : 20181026 20181026115133 ACCESSION NUMBER: 0000088053-18-001116 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20180831 FILED AS OF DATE: 20181026 DATE AS OF CHANGE: 20181026 EFFECTIVENESS DATE: 20181026 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEUTSCHE STRATEGIC INCOME TRUST CENTRAL INDEX KEY: 0000919708 IRS NUMBER: 363942288 FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-08382 FILM NUMBER: 181140919 BUSINESS ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 BUSINESS PHONE: 212-250-2500 MAIL ADDRESS: STREET 1: 345 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10154-0004 FORMER COMPANY: FORMER CONFORMED NAME: DWS STRATEGIC INCOME TRUST DATE OF NAME CHANGE: 20060206 FORMER COMPANY: FORMER CONFORMED NAME: SCUDDER STRATEGIC INCOME TRUST DATE OF NAME CHANGE: 20010123 FORMER COMPANY: FORMER CONFORMED NAME: KEMPER STRATEGIC INCOME TRUST DATE OF NAME CHANGE: 20001213 N-Q 1 nq083118ce-sit.htm DEUTSCHE STRATEGIC INCOME TRUST

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

_______________________________

Investment Company Act file number: 811-08382

Deutsche Strategic Income Trust

(Exact name of registrant as specified in charter)

 

345 Park Avenue
New York, NY 10154-0004

(Address of principal executive offices) (Zip code)

 

Diane Kenneally

One International Place

Boston, MA 02110

(Name and address of agent for service)

Registrant's telephone number, including area code: (212) 250-2500

Date of fiscal year end: 11/30

Date of reporting period: 8/31/2018

 

ITEM 1. SCHEDULE OF INVESTMENTS

 

Investment Portfolio                                                      as of August 31, 2018 (Unaudited)

 

 

Deutsche Strategic Income Trust

 

 

  Principal
Amount ($)		   Value ($)
Corporate Bonds 64.2%
Consumer Discretionary 15.2%
1011778 B.C. Unlimited Liability Co., 144A, 4.625%, 1/15/2022     40,000   40,000
Adient Global Holdings Ltd., 144A, 4.875%, 8/15/2026     400,000   360,000
Altice France SA, 144A, 7.375%, 5/1/2026     315,000   309,487
Altice U.S. Finance I Corp., 144A, 5.5%, 5/15/2026     210,000   206,325
AMC Entertainment Holdings, Inc., 5.875%, 11/15/2026     95,000   92,625
AMC Networks, Inc.:  
  4.75%, 8/1/2025     110,000   106,150
  5.0%, 4/1/2024     265,000   260,694
Ashton Woods U.S.A. LLC, 144A, 6.75%, 8/1/2025     90,000   83,981
Beacon Roofing Supply, Inc., 144A, 4.875%, 11/1/2025     105,000   96,863
Boyd Gaming Corp., 6.875%, 5/15/2023     50,000   52,563
CCO Holdings LLC:  
  144A, 5.0%, 2/1/2028     235,000   220,085
  144A, 5.125%, 5/1/2027     160,000   152,600
  144A, 5.5%, 5/1/2026     385,000   380,187
  144A, 5.875%, 4/1/2024     105,000   107,100
  144A, 5.875%, 5/1/2027     155,000   153,256
Cequel Communications Holdings I LLC:  
  144A, 5.125%, 12/15/2021     364,000   364,000
  144A, 7.5%, 4/1/2028     200,000   208,500
CSC Holdings LLC, 144A, 5.5%, 4/15/2027     310,000   301,862
Cumberland Farms, Inc., 144A, 6.75%, 5/1/2025     32,000   32,640
Dana Financing Luxembourg Sarl:  
  144A, 5.75%, 4/15/2025     205,000   205,000
  144A, 6.5%, 6/1/2026     160,000   164,200
DISH DBS Corp., 5.875%, 7/15/2022     245,000   235,200
Fiat Chrysler Automobiles NV, 4.5%, 4/15/2020     310,000   311,550
GLP Capital LP:  
  5.25%, 6/1/2025     85,000   88,400
  5.75%, 6/1/2028     45,000   47,691
Goodyear Tire & Rubber Co., 5.125%, 11/15/2023     60,000   59,850
Hanesbrands, Inc., 144A, 4.625%, 5/15/2024     110,000   107,250
HD Supply, Inc., 144A, 5.75%, 4/15/2024     55,000   57,819
Hilton Worldwide Finance LLC, 4.625%, 4/1/2025     50,000   49,375
KFC Holding Co., 144A, 4.75%, 6/1/2027     80,000   76,200
Lennar Corp.:  
  4.125%, 1/15/2022     130,000   129,187
  4.75%, 11/15/2022     150,000   150,187
  5.0%, 6/15/2027     35,000   33,819
  5.25%, 6/1/2026     119,000   117,772
Lithia Motors, Inc., 144A, 5.25%, 8/1/2025     100,000   95,900
MGM Resorts International, 6.625%, 12/15/2021     535,000   565,762
NCL Corp., Ltd., 144A, 4.75%, 12/15/2021     65,000   65,406
Penn National Gaming, Inc., 144A, 5.625%, 1/15/2027     105,000   101,143
Penske Automotive Group, Inc., 5.5%, 5/15/2026     85,000   83,300
PulteGroup, Inc., 4.25%, 3/1/2021     320,000   321,696
Quebecor Media, Inc., 5.75%, 1/15/2023     80,000   82,800
Rivers Pittsburgh Borrower LP, 144A, 6.125%, 8/15/2021     25,000   25,000
Seminole Hard Rock Entertainment, Inc., 144A, 5.875%, 5/15/2021     50,000   50,000
Sirius XM Radio, Inc.:  
  144A, 3.875%, 8/1/2022     260,000   255,112
  144A, 5.0%, 8/1/2027     50,000   48,312
  144A, 5.375%, 7/15/2026     150,000   149,625
Suburban Propane Partners LP, 5.75%, 3/1/2025     45,000   43,538
Tenneco, Inc., 5.0%, 7/15/2026     110,000   97,625
Toll Brothers Finance Corp., 4.875%, 11/15/2025     95,000   92,388
UPC Holding BV, 144A, 5.5%, 1/15/2028     200,000   186,250
UPCB Finance IV Ltd., 144A, 5.375%, 1/15/2025     305,000   301,218
Viking Cruises Ltd., 144A, 5.875%, 9/15/2027     265,000   260,362
Virgin Media Secured Finance PLC, 144A, 5.5%, 8/15/2026     200,000   196,500
WMG Acquisition Corp., 144A, 5.0%, 8/1/2023     45,000   44,663
  8,429,018
Consumer Staples 1.8%
Aramark Services, Inc.:  
  4.75%, 6/1/2026     305,000   300,425
  5.125%, 1/15/2024     60,000   60,929
JBS U.S.A. LUX SA:  
  144A, 5.75%, 6/15/2025     60,000   56,700
  144A, 7.25%, 6/1/2021     205,000   207,306
Pilgrim's Pride Corp.:  
  144A, 5.75%, 3/15/2025     40,000   38,700
  144A, 5.875%, 9/30/2027     115,000   109,250
Post Holdings, Inc.:  
  144A, 5.625%, 1/15/2028     30,000   28,988
  144A, 5.75%, 3/1/2027     75,000   74,063
Simmons Foods, Inc., 144A, 5.75%, 11/1/2024     130,000   103,350
  979,711
Energy 11.9%
Andeavor:  
  4.75%, 12/15/2023     50,000   52,145
  5.125%, 12/15/2026     125,000   132,623
Antero Midstream Partners LP, 5.375%, 9/15/2024     70,000   70,525
Antero Resources Corp.:  
  5.375%, 11/1/2021     85,000   86,381
  5.625%, 6/1/2023     60,000   61,743
Blue Racer Midstream LLC, 144A, 6.125%, 11/15/2022     65,000   66,299
Carrizo Oil & Gas, Inc., 8.25%, 7/15/2025     70,000   75,075
Cheniere Corpus Christi Holdings LLC:  
  5.125%, 6/30/2027     105,000   106,837
  5.875%, 3/31/2025     105,000   111,562
  7.0%, 6/30/2024     100,000   110,625
Chesapeake Energy Corp.:  
  4.875%, 4/15/2022     325,000   313,625
  8.0%, 1/15/2025     300,000   306,375
  8.0%, 6/15/2027     115,000   116,437
CNX Midstream Partners LP, 144A, 6.5%, 3/15/2026     89,000   88,332
Crestwood Midstream Partners LP:  
  5.75%, 4/1/2025     80,000   81,700
  6.25%, 4/1/2023     40,000   41,250
DCP Midstream Operating LP, 2.7%, 4/1/2019     200,000   198,750
Diamondback Energy, Inc., 4.75%, 11/1/2024     70,000   70,438
Endeavor Energy Resources LP:  
  144A, 5.5%, 1/30/2026     30,000   29,925
  144A, 5.75%, 1/30/2028     30,000   29,925
Energy Transfer Equity LP, 7.5%, 10/15/2020     500,000   538,125
Extraction Oil & Gas, Inc., 144A, 7.375%, 5/15/2024     50,000   50,875
Genesis Energy LP:  
  6.25%, 5/15/2026     185,000   174,362
  6.5%, 10/1/2025     225,000   217,687
Gulfport Energy Corp.:  
  6.0%, 10/15/2024     35,000   34,563
  6.375%, 5/15/2025     70,000   69,388
  6.375%, 1/15/2026     115,000   112,125
  6.625%, 5/1/2023     30,000   30,600
Hilcorp Energy I LP, 144A, 5.75%, 10/1/2025     110,000   109,175
Holly Energy Partners LP, 144A, 6.0%, 8/1/2024     110,000   111,925
Jagged Peak Energy LLC, 144A, 5.875%, 5/1/2026     47,000   46,295
Laredo Petroleum, Inc., 6.25%, 3/15/2023     90,000   90,225
Murphy Oil Corp., 5.75%, 8/15/2025     160,000   160,361
Murphy Oil U.S.A., Inc., 5.625%, 5/1/2027     45,000   44,888
Newfield Exploration Co., 5.375%, 1/1/2026     25,000   26,063
NGPL PipeCo LLC, 144A, 4.875%, 8/15/2027     55,000   55,426
NuStar Logistics LP, 5.625%, 4/28/2027     157,000   156,411
Oasis Petroleum, Inc., 6.875%, 1/15/2023     10,000   10,213
PDC Energy, Inc., 6.125%, 9/15/2024     60,000   59,700
Peabody Energy Corp.:  
  144A, 6.0%, 3/31/2022     85,000   85,319
  144A, 6.375%, 3/31/2025     110,000   111,512
Precision Drilling Corp., 144A, 7.125%, 1/15/2026     95,000   97,731
Range Resources Corp.:  
  4.875%, 5/15/2025     165,000   157,987
  5.0%, 8/15/2022     100,000   98,500
  5.875%, 7/1/2022     65,000   65,650
Sabine Pass Liquefaction LLC:  
  5.625%, 2/1/2021     260,000   271,193
  5.625%, 4/15/2023     150,000   160,491
  5.875%, 6/30/2026     155,000   167,706
Southwestern Energy Co., 7.75%, 10/1/2027     80,000   84,600
Sunoco LP:  
  144A, 5.5%, 2/15/2026     65,000   62,238
  144A, 5.875%, 3/15/2028     15,000   14,363
Targa Resources Partners LP:  
  144A, 5.0%, 1/15/2028     160,000   155,400
  5.375%, 2/1/2027     170,000   169,150
  144A, 5.875%, 4/15/2026     49,000   50,225
Weatherford International Ltd.:  
  4.5%, 4/15/2022     105,000   91,350
  7.75%, 6/15/2021     170,000   166,600
Whiting Petroleum Corp.:  
  5.75%, 3/15/2021     95,000   97,375
  6.25%, 4/1/2023     70,000   72,100
WildHorse Resource Development Corp.:  
  6.875%, 2/1/2025     35,000   35,263
  144A, 6.875%, 2/1/2025     75,000   75,562
WPX Energy, Inc., 6.0%, 1/15/2022     30,000   30,975
  6,570,269
Financials 1.5%
Aircastle Ltd., 4.125%, 5/1/2024     155,000   153,900
CIT Group, Inc.:  
  3.875%, 2/19/2019     207,500   208,641
  4.125%, 3/9/2021     35,000   35,131
  5.0%, 8/15/2022     400,000   408,000
Tempo Acquisition LLC, 144A, 6.75%, 6/1/2025     45,000   43,763
  849,435
Health Care 5.9%
Avantor, Inc., 144A, 6.0%, 10/1/2024     35,000   35,525
Bausch Health Cos., Inc.:  
  144A, 5.5%, 11/1/2025     145,000   144,637
  144A, 5.875%, 5/15/2023     105,000   100,380
  144A, 6.125%, 4/15/2025     155,000   144,150
  144A, 6.5%, 3/15/2022     70,000   72,450
  144A, 7.0%, 3/15/2024     165,000   174,075
  144A, 7.5%, 7/15/2021     385,000   391,114
Centene Corp., 144A, 5.375%, 6/1/2026     30,000   30,970
Charles River Laboratories International, Inc., 144A, 5.5%, 4/1/2026     20,000   20,300
DaVita, Inc.:  
  5.0%, 5/1/2025     80,000   75,800
  5.125%, 7/15/2024     75,000   72,309
Fresenius Medical Care U.S. Finance II, Inc., 144A, 6.5%, 9/15/2018     45,000   45,040
HCA, Inc.:  
  4.5%, 2/15/2027     150,000   148,500
  4.75%, 5/1/2023     300,000   304,875
  5.25%, 6/15/2026     170,000   175,100
  6.5%, 2/15/2020     340,000   352,920
LifePoint Health, Inc.:  
  5.375%, 5/1/2024     120,000   124,650
  5.5%, 12/1/2021     105,000   106,706
  5.875%, 12/1/2023     85,000   89,060
Tenet Healthcare Corp.:  
  4.375%, 10/1/2021     590,000   588,525
  5.125%, 5/1/2025     70,000   69,475
  3,266,561
Industrials 4.1%
ADT Corp.:  
  3.5%, 7/15/2022     55,000   52,044
  5.25%, 3/15/2020     90,000   91,687
  6.25%, 10/15/2021     155,000   163,525
Bombardier, Inc.:  
  144A, 5.75%, 3/15/2022     130,000   130,325
  144A, 6.0%, 10/15/2022     340,000   340,850
Covanta Holding Corp.:  
  5.875%, 3/1/2024     85,000   85,637
  5.875%, 7/1/2025     55,000   54,833
DAE Funding LLC:  
  144A, 4.5%, 8/1/2022     7,000   6,895
  144A, 5.0%, 8/1/2024     17,000   16,703
FTI Consulting, Inc., 6.0%, 11/15/2022     80,000   82,096
GFL Environmental, Inc., 144A, 5.625%, 5/1/2022     55,000   53,213
IHO Verwaltungs GmbH, 144A, 4.125%, 9/15/2021     200,000   199,000
Masonite International Corp., 144A, 5.625%, 3/15/2023     64,000   65,440
Moog, Inc., 144A, 5.25%, 12/1/2022     50,000   50,688
Novelis Corp.:  
  144A, 5.875%, 9/30/2026     85,000   82,773
  144A, 6.25%, 8/15/2024     85,000   86,062
Park Aerospace Holdings Ltd.:  
  144A, 4.5%, 3/15/2023     80,000   79,100
  144A, 5.25%, 8/15/2022     175,000   178,281
  144A, 5.5%, 2/15/2024     165,000   169,537
Prime Security Services Borrower LLC, 144A, 9.25%, 5/15/2023     2,000   2,143
Ritchie Bros Auctioneers, Inc., 144A, 5.375%, 1/15/2025     60,000   59,400
Summit Materials LLC:  
  144A, 5.125%, 6/1/2025     20,000   18,900
  6.125%, 7/15/2023     100,000   101,375
  8.5%, 4/15/2022     45,000   48,094
Tennant Co., 5.625%, 5/1/2025     20,000   20,152
  2,238,753
Information Technology 2.5%
ACI Worldwide, Inc., 144A, 6.375%, 8/15/2020     35,000   35,000
Cardtronics, Inc., 144A, 5.5%, 5/1/2025     60,000   56,850
Change Healthcare Holdings LLC, 144A, 5.75%, 3/1/2025     135,000   131,963
Dell International LLC:  
  144A, 4.42%, 6/15/2021     195,000   198,351
  144A, 5.875%, 6/15/2021     65,000   66,879
First Data Corp., 144A, 7.0%, 12/1/2023     100,000   104,050
Netflix, Inc., 5.875%, 2/15/2025     150,000   154,875
Nielsen Co. Luxembourg SARL, 144A, 5.0%, 2/1/2025     100,000   97,000
Riverbed Technology, Inc., 144A, 8.875%, 3/1/2023     45,000   41,625
TTM Technologies, Inc., 144A, 5.625%, 10/1/2025     120,000   119,400
Western Digital Corp., 4.75%, 2/15/2026     150,000   147,065
Zayo Group LLC, 6.0%, 4/1/2023     205,000   211,287
  1,364,345
Materials 10.3%
AK Steel Corp.:  
  6.375%, 10/15/2025     65,000   60,450
  7.0%, 3/15/2027     205,000   194,237
  7.5%, 7/15/2023     300,000   313,500
Ardagh Packaging Finance PLC:  
  144A, 6.0%, 2/15/2025     200,000   195,500
  144A, 7.25%, 5/15/2024     200,000   210,250
Berry Global, Inc., 5.5%, 5/15/2022     160,000   163,000
BWAY Holding Co., 144A, 5.5%, 4/15/2024     115,000   114,281
Cascades, Inc., 144A, 5.5%, 7/15/2022     55,000   55,000
Chemours Co.:  
  5.375%, 5/15/2027     145,000   142,462
  6.625%, 5/15/2023     32,000   33,520
  7.0%, 5/15/2025     25,000   26,688
Clearwater Paper Corp., 144A, 5.375%, 2/1/2025     50,000   45,875
Constellium NV:  
  144A, 5.875%, 2/15/2026     250,000   245,000
  144A, 6.625%, 3/1/2025     250,000   254,375
First Quantum Minerals Ltd., 144A, 6.5%, 3/1/2024     200,000   188,000
Freeport-McMoRan, Inc.:  
  3.55%, 3/1/2022     150,000   144,750
  3.875%, 3/15/2023     100,000   96,125
  5.4%, 11/14/2034     35,000   32,320
Hexion, Inc., 144A, 10.375%, 2/1/2022     25,000   24,601
Hudbay Minerals, Inc.:  
  144A, 7.25%, 1/15/2023     120,000   122,100
  144A, 7.625%, 1/15/2025     30,000   30,488
Mercer International, Inc., 6.5%, 2/1/2024     70,000   71,750
NOVA Chemicals Corp.:  
  144A, 4.875%, 6/1/2024     250,000   244,375
  144A, 5.25%, 6/1/2027     165,000   156,750
OCI NV, 144A, 6.625%, 4/15/2023     200,000   207,000
Plastipak Holdings, Inc., 144A, 6.25%, 10/15/2025     110,000   101,337
Platform Specialty Products Corp., 144A, 5.875%, 12/1/2025     256,000   254,080
Reynolds Group Issuer, Inc.:  
  144A, 5.125%, 7/15/2023     175,000   174,344
  5.75%, 10/15/2020     891,579   892,694
  6.875%, 2/15/2021     71,041   71,928
  144A, 7.0%, 7/15/2024     20,000   20,320
Teck Resources Ltd., 144A, 8.5%, 6/1/2024     30,000   32,925
Tronox, Inc., 144A, 6.5%, 4/15/2026     106,000   103,880
United States Steel Corp.:  
  6.25%, 3/15/2026     31,000   30,884
  6.875%, 8/15/2025     185,000   187,775
Volcan Cia Minera SAA, 144A, 5.375%, 2/2/2022     420,000   422,625
WR Grace & Co-Conn:  
  144A, 5.125%, 10/1/2021     30,000   30,825
  144A, 5.625%, 10/1/2024     15,000   15,849
  5,711,863
Real Estate 3.1%
CyrusOne LP:  
  (REIT), 5.0%, 3/15/2024     140,000   141,750
  (REIT), 5.375%, 3/15/2027     167,000   167,835
Equinix, Inc.:  
  (REIT), 5.375%, 1/1/2022     70,000   72,086
  (REIT), 5.375%, 4/1/2023     265,000   270,631
  (REIT), 5.375%, 5/15/2027     210,000   213,675
  (REIT), 5.875%, 1/15/2026     50,000   51,875
Iron Mountain, Inc.:  
  144A, (REIT), 4.375%, 6/1/2021     60,000   60,150
  144A, (REIT), 5.25%, 3/15/2028     200,000   189,250
MPT Operating Partnership LP:  
  (REIT), 5.0%, 10/15/2027     110,000   107,800
  (REIT), 5.25%, 8/1/2026     20,000   20,000
  (REIT), 6.375%, 3/1/2024     105,000   110,702
SBA Communications Corp., (REIT), 4.0%, 10/1/2022     160,000   156,438
VEREIT Operating Partnership LP:  
  (REIT), 4.125%, 6/1/2021     125,000   126,616
  (REIT), 4.875%, 6/1/2026     50,000   50,814
  1,739,622
Telecommunication Services 5.5%
CenturyLink, Inc.:  
  Series V, 5.625%, 4/1/2020     40,000   40,850
  Series T, 5.8%, 3/15/2022     150,000   153,330
  Series S, 6.45%, 6/15/2021     165,000   171,600
  Series W, 6.75%, 12/1/2023     185,000   192,862
  Series Y, 7.5%, 4/1/2024     165,000   176,550
CommScope, Inc., 144A, 5.0%, 6/15/2021     95,000   95,475
Intelsat Jackson Holdings SA, 144A, 8.0%, 2/15/2024     186,000   195,765
Level 3 Financing, Inc.:  
  5.375%, 8/15/2022     215,000   217,150
  5.375%, 1/15/2024     60,000   60,000
  6.125%, 1/15/2021     60,000   60,356
Sprint Communications, Inc.:  
  144A, 7.0%, 3/1/2020     85,000   88,294
  7.0%, 8/15/2020     500,000   523,750
Sprint Corp., 7.625%, 3/1/2026     65,000   68,260
T-Mobile U.S.A., Inc.:  
  6.0%, 4/15/2024     181,000   187,788
  6.375%, 3/1/2025     151,000   157,040
  6.5%, 1/15/2026     5,000   5,286
Telesat Canada, 144A, 8.875%, 11/15/2024     80,000   85,700
Zayo Group LLC:  
  144A, 5.75%, 1/15/2027     390,000   390,975
  6.375%, 5/15/2025     139,000   145,255
  3,016,286
Utilities 2.4%
AmeriGas Partners LP:  
  5.5%, 5/20/2025     160,000   156,800
  5.75%, 5/20/2027     145,000   143,187
Calpine Corp.:  
  144A, 5.25%, 6/1/2026     75,000   70,806
  5.75%, 1/15/2025     55,000   49,913
NGL Energy Partners LP, 5.125%, 7/15/2019     70,000   70,123
NRG Energy, Inc.:  
  144A, 5.75%, 1/15/2028     170,000   171,700
  6.25%, 7/15/2022     250,000   258,125
  7.25%, 5/15/2026     160,000   172,000
Vistra Energy Corp.:  
  7.375%, 11/1/2022     100,000   104,125
  7.625%, 11/1/2024     137,000   147,275
  1,344,054
Total Corporate Bonds (Cost $35,674,179)   35,509,917
Loan Participations and Assignments 21.4%
Senior Loans **  
Consumer Discretionary 5.8%
1011778 B.C. Unlimited Liability Co., Term Loan B3, 1-month USD LIBOR + 2.250%, 4.326%, 2/16/2024     420,794   421,124
Altice U.S. Finance I Corp., Term Loan, 1-month USD LIBOR + 2.250%, 4.326%, 7/28/2025     402,229   402,398
Hilton Worldwide Finance LLC, Term Loan B2, 1-month USD LIBOR + 1.750%, 3.815%, 10/25/2023     753,896   757,077
Quebecor Media, Inc., Term Loan B1, 3-month USD LIBOR + 2.250%, 4.564%, 8/17/2020     914,405   917,835
Visteon Corp.:  
  Term Loan B, 3-month USD-LIBOR + 1.750%, 3.825% , 3/24/2024     600,000   600,003
  Term Loan B, 3-month USD-LIBOR + 1.750%, 4.065% , 3/24/2024     100,000   100,000
  3,198,437
Consumer Staples 1.6%
Albertson's LLC, Term Loan B6, 3-month USD LIBOR + 3.000%, 5.311%, 6/22/2023     326,243   325,427
Pinnacle Foods Finance LLC, Term Loan B, 1-month USD LIBOR + 1.750%, 3.832%, 2/2/2024     572,569   573,429
  898,856
Energy 0.0%
MEG Energy Corp., Term Loan B, 1-month USD LIBOR + 3.500%, 5.575%, 12/31/2023     7,538   7,568
Health Care 2.4%
Community Health Systems, Inc., Term Loan H, 3-month USD LIBOR + 3.250%, 5.563%, 1/27/2021     79,824   78,821
DaVita, Inc., Term Loan B, 1-month USD LIBOR + 2.750%, 4.826%, 6/24/2021     1,090,560   1,097,180
Valeant Pharmaceuticals International, Inc., Term Loan B, 1-month USD LIBOR + 3.000%, 5.081%, 6/1/2025     167,159   167,963
  1,343,964
Industrials 1.7%
Sabre GLBL, Inc., Term Loan B, 1-month USD LIBOR + 2.000%, 4.076%, 2/22/2024     486,513   487,693
TransDigm, Inc., Term Loan F, 1-month USD LIBOR + 2.500%, 4.576%, 6/9/2023     461,484   461,117
  948,810
Information Technology 1.0%
First Data Corp., Term Loan, 1-month USD LIBOR + 2.000%, 4.066%, 4/26/2024     570,717   570,538
Materials 2.4%
Berry Global, Inc.:  
  Term Loan S, 3-month USD LIBOR + 1.750%, 3.936% , 2/8/2020     429,646   430,133
  Term Loan T, 3-month USD LIBOR + 1.750%, 3.936% , 1/6/2021     304,001   304,287
MacDermid, Inc., Term Loan B6, 1-month USD LIBOR + 3.000%, 5.076%, 6/7/2023     391,971   393,860
PolyOne Corporation, Term Loan B4, 1-month USD LIBOR + 1.750%, 3.817%, 11/11/2022     160,876   161,144
  1,289,424
Telecommunication Services 1.2%
Level 3 Financing, Inc., Term Loan B, 1-month USD LIBOR + 2.250%, 4.317%, 2/22/2024     665,000   666,569
Utilities 5.3%
Calpine Corp., Term Loan B5, 3-month USD LIBOR + 2.500%, 4.84%, 1/15/2024     1,799,350   1,803,938
NRG Energy, Inc., Term Loan B, 3-month USD LIBOR + 1.750%, 4.084%, 6/30/2023     1,088,845   1,089,303
  2,893,241
Total Loan Participations and Assignments (Cost $11,794,268)   11,817,407
  Shares   Value ($)
Common Stocks 0.0%
Industrials  
Quad Graphics, Inc.  (Cost $0)   36   820
Warrant 0.0%
Materials  
Hercules Trust II, Expiration Date 3/31/2029* (a) (Cost $20,981)   95   3,781
Cash Equivalents 13.6%
DWS Central Cash Management Government Fund, 1.96% (b) (Cost $7,502,454)     7,502,454   7,502,454
  % of
Net Assets		   Value ($)
Total Investment Portfolio (Cost $54,991,882) 99.2   54,834,379
Other Assets and Liabilities, Net 0.8   444,890
Net Assets 100.0   55,279,269
                         

A summary of the Fund's transactions with affiliated investments during the period ended August 31, 2018 are as follows:

 

   Value ($) at
      11/30/2017		   Pur-
chases
Cost ($)		   Sales Pro-
ceeds ($)		   Net
Realized
Gain/
(Loss) ($)		   Net
Change in
Unrealized
Appreci-
ation
(Deprecia-
tion) ($)		   Income ($)   Capital
Gain
Distribu-
tions ($)		   Number of Shares at 8/31/2018   Value ($) at
8/31/2018		  
Cash Equivalents 13.6%
DWS Central Cash Management Government Fund,  1.96% (b)
5,138,031   58,782,462   56,418,039   —   —   59,414   —   7,502,454   7,502,454  

 

For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent semi-annual or annual financial statements.
* Non-income producing security.
** Senior loans in the Fund's portfolio generally are subject to mandatory and/or optional payment. As a result, the actual remaining maturity of senior loans in the Fund's portfolio may be substantially less than the stated maturities shown in this report. Senior loans pay interest at a rate which may be fixed or may vary based on a published reference rate and spread and are shown at their current rate as of August 31, 2018.
(a) Investment was valued using significant unobservable inputs.
(b) Affiliated fund managed by DWS Investment Management Americas, Inc.  The rate shown is the annualized seven-day yield at period end.
144A: Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
LIBOR: London Interbank Offered Rate
REIT: Real Estate Investment Trust
For information on the Fund's policy and additional disclosures regarding credit default swap contracts, written options contracts, please refer to the Derivatives section of Note A in the accompanying Notes to Financial Statements.

  

Fair Value Measurements

 

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in three broad levels. Level 1 includes quoted prices in active markets for identical securities. Level 2 includes other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, and credit risk). Level 3 includes significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities.

 

The following is a summary of the inputs used as of August 31, 2018 in valuing the Fund's investments

 

Assets   Level 1   Level 2   Level 3   Total
Fixed Income Investments (c)                
  Corporate Bonds $ — $ 35,509,917 $ — $ 35,509,917
  Loan Participations and Assignments   —   11,817,407   —   11,817,407
Common Stocks   820   —   —   820
Warrant   —   —   3,781   3,781
Short-Term Investments (c)   7,502,454   —   —   7,502,454
Total $ 7,503,274 $ 47,327,324 $ 3,781 $ 54,834,379

 

There have been no transfers between fair value measurement levels during the period ended August 31, 2018.
(c) See Investment Portfolio for additional detailed categorizations.

  

ITEM 2. CONTROLS AND PROCEDURES
   
  (a) The Chief Executive and Financial Officers concluded that the Registrant’s Disclosure Controls and Procedures are effective based on the evaluation of the Disclosure Controls and Procedures as of a date within 90 days of the filing date of this report.
   
  (b) There have been no changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal controls over financial reporting.
   
ITEM 3. EXHIBITS
   
  Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

 

 

 

 

SIGNATURES

 

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

 

Registrant: Deutsche Strategic Income Trust
   
By:

/s/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: October 23, 2018

 

 

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

 

 

By:

/s/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: October 23, 2018
   
   
   
By:

/s/Diane Kenneally

Diane Kenneally

Chief Financial Officer and Treasurer

   
Date: October 23, 2018

 EX-99.CERT 2 ex99cert.htm CERTIFICATIONS

CERTIFICATIONS

I, Hepsen Uzcan, certify that:

1.I have reviewed this report on Form N-Q of Deutsche Strategic Income Trust;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

   
By:

/s/Hepsen Uzcan

Hepsen Uzcan

President

   
Date: October 23, 2018

 

 
 

CERTIFICATIONS

I, Diane Kenneally, certify that:

1.I have reviewed this report on Form N-Q of Deutsche Strategic Income Trust;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4.The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and
(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

   
By:

/s/Diane Kenneally

Diane Kenneally

Chief Financial Officer and Treasurer

   
Date: October 23, 2018