UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-10603
Western Asset Premier Bond Fund
(Exact Name of Registrant as Specified In Its Charter)
Address of Principal Executive Offices: | 385 East Colorado Boulevard Pasadena, CA 91101 | |
Registrants telephone number, including area code: | (626) 844-9400 | |
Name and address of agent for service: | Gregory B. McShea 385 East Colorado Boulevard Pasadena, CA 91101 | |
Date of fiscal year end: | December 31, 2006 | |
Date of reporting period: | September 30, 2006 |
Item 1 Schedule of Investments
(Portfolio is inserted here)
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE | |||||||||||
Long-Term Securities |
151.6 | % | |||||||||||||
Corporate Bonds and Notes |
81.7 | % | |||||||||||||
Advertising |
0.1 | % | |||||||||||||
Affinion Group, Inc. |
10.125 | % | 10/15/13 | $ | 100 | $ | 105 | ||||||||
Lamar Media Corporation |
6.625 | % | 8/15/15 | 120 | 115 | ||||||||||
220 | |||||||||||||||
Aerospace/Defense |
1.1 | % | |||||||||||||
Northrop Grumman Corporation |
7.750 | % | 2/15/31 | 1,000 | 1,247 | ||||||||||
The Boeing Company |
6.125 | % | 2/15/33 | 600 | 647 | ||||||||||
TransDigm Inc. |
7.750 | % | 7/15/14 | 40 | 40 | A | |||||||||
1,934 | |||||||||||||||
Apparel |
0.3 | % | |||||||||||||
Levi Strauss & Co. |
9.750 | % | 1/15/15 | 225 | 233 | ||||||||||
Levi Strauss & Co. |
8.875 | % | 4/1/16 | 70 | 70 | ||||||||||
Oxford Industries, Inc. |
8.875 | % | 6/1/11 | 270 | 275 | ||||||||||
578 | |||||||||||||||
Auto Parts and Equipment |
0.7 | % | |||||||||||||
Commercial Vehicle Group, Inc. |
8.000 | % | 7/1/13 | 250 | 239 | ||||||||||
Keystone Automotive Operations Inc. |
9.750 | % | 11/1/13 | 480 | 451 | ||||||||||
TRW Automotive Inc. |
11.000 | % | 2/15/13 | 90 | 98 | ||||||||||
Visteon Corporation |
7.000 | % | 3/10/14 | 185 | 166 | ||||||||||
Visteon Corporation |
8.250 | % | 8/1/10 | 245 | 239 | ||||||||||
1,193 | |||||||||||||||
Automotive |
1.7 | % | |||||||||||||
Asbury Automotive Group Inc. |
9.000 | % | 6/15/12 | 235 | 241 | ||||||||||
DaimlerChrysler NA Holdings Corp. |
7.300 | % | 1/15/12 | 1,000 | 1,063 | ||||||||||
DaimlerChrysler NA Holdings Corp. |
8.500 | % | 1/18/31 | 1,000 | 1,188 | ||||||||||
General Motors Corporation |
8.375 | % | 7/15/33 | 420 | 363 | ||||||||||
2,855 | |||||||||||||||
Banking and Finance |
3.4 | % | |||||||||||||
Boeing Capital Corporation |
6.500 | % | 2/15/12 | 1,000 | 1,060 | ||||||||||
Boeing Capital Corporation |
5.800 | % | 1/15/13 | 400 | 413 | ||||||||||
E*TRADE Financial Corporation |
7.375 | % | 9/15/13 | 140 | 143 | ||||||||||
E*TRADE Financial Corporation |
7.875 | % | 12/1/15 | 55 | 58 | ||||||||||
Fuji JGB Inv |
9.870 | % | 6/30/08 | 790 | 846 | A,B | |||||||||
General Motors Acceptance Corp. |
6.875 | % | 8/28/12 | 150 | 148 | ||||||||||
General Motors Acceptance Corp. |
8.000 | % | 11/1/31 | 1,530 | 1,600 | ||||||||||
HSBC Finance Corporation |
4.750 | % | 7/15/13 | 1,670 | 1,613 | ||||||||||
5,881 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE | |||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
Banks |
0.3 | % | |||||||||||||
Washington Mutual Bank FA |
5.500 | % | 1/15/13 | $ | 440 | $ | 440 | ||||||||
Builders-Residential/Commercial |
0.3 | % | |||||||||||||
Beazer Homes USA, Inc. |
8.125 | % | 6/15/16 | 145 | 141 | ||||||||||
K Hovnanian Enterprises, Inc. |
8.625 | % | 1/15/17 | 430 | 427 | ||||||||||
568 | |||||||||||||||
Building Materials |
0.5 | % | |||||||||||||
Associated Materials Inc. |
0.000 | % | 3/1/14 | 720 | 396 | C | |||||||||
NTK Holdings Inc. |
0.000 | % | 3/1/14 | 405 | 279 | C | |||||||||
Nortek Inc. |
8.500 | % | 9/1/14 | 290 | 274 | ||||||||||
949 | |||||||||||||||
Cable |
2.8 | % | |||||||||||||
Charter Communication Holdings LLC |
11.750 | % | 5/15/14 | 220 | 157 | B | |||||||||
Charter Communication Holdings LLC |
11.000 | % | 10/1/15 | 9 | 8 | A | |||||||||
Charter Communication Holdings LLC |
11.000 | % | 10/1/15 | 330 | 300 | ||||||||||
Charter Communication Holdings II |
10.250 | % | 9/15/10 | 280 | 286 | ||||||||||
Charter Communication Holdings II |
10.250 | % | 10/1/13 | 167 | 170 | A | |||||||||
Comcast Cable Communications, Inc. |
6.750 | % | 1/30/11 | 500 | 525 | ||||||||||
Comcast Corporation |
5.900 | % | 3/15/16 | 400 | 400 | ||||||||||
Comcast Corporation |
7.050 | % | 3/15/33 | 1,000 | 1,071 | ||||||||||
CSC Holdings Inc. |
7.250 | % | 4/15/12 | 250 | 249 | ||||||||||
CSC Holdings Inc. |
7.875 | % | 2/15/18 | 380 | 394 | ||||||||||
EchoStar DBS Corporation |
7.000 | % | 10/1/13 | 830 | 811 | A | |||||||||
NTL Cable Plc |
9.125 | % | 8/15/16 | 125 | 129 | ||||||||||
LodgeNet Entertainment Corporation |
9.500 | % | 6/15/13 | 321 | 343 | ||||||||||
4,843 | |||||||||||||||
Casino Resorts |
1.2 | % | |||||||||||||
Inn of The Mountain Gods |
12.000 | % | 11/15/10 | 530 | 555 | ||||||||||
MGM Mirage Inc. |
8.375 | % | 2/1/11 | 170 | 177 | ||||||||||
Pinnacle Entertainment, Inc. |
8.250 | % | 3/15/12 | 250 | 253 | ||||||||||
Premier Entertainment Biloxi LLC |
10.750 | % | 2/1/12 | 707 | 719 | ||||||||||
Station Casinos, Inc. |
7.750 | % | 8/15/16 | 180 | 187 | ||||||||||
Station Casinos, Inc. |
6.625 | % | 3/15/18 | 150 | 135 | ||||||||||
2,026 | |||||||||||||||
Chemicals |
1.8 | % | |||||||||||||
Georgia Gulf Corporation |
9.500 | % | 10/15/14 | 350 | 348 | A | |||||||||
Lyondell Chemical Company |
10.500 | % | 6/1/13 | 135 | 149 | ||||||||||
The Dow Chemical Company |
6.000 | % | 10/1/12 | 2,500 | 2,585 | ||||||||||
3,082 | |||||||||||||||
Coal |
0.4 | % | |||||||||||||
Alpha Natural Resources |
10.000 | % | 6/1/12 | 350 | 376 | ||||||||||
International Coal Group, Inc. |
10.250 | % | 7/15/14 | 260 | 247 | A | |||||||||
623 | |||||||||||||||
Computers Services and Systems |
1.6 | % | |||||||||||||
Amkor Technology, Inc. |
2.500 | % | 5/15/11 | 85 | 71 | D | |||||||||
DynCorp Inc. |
9.500 | % | 2/15/13 | 502 | 520 | ||||||||||
Electronic Data Systems Corporation |
7.125 | % | 10/15/09 | 700 | 732 | ||||||||||
Electronic Data Systems Corporation |
7.450 | % | 10/15/29 | 500 | 549 | ||||||||||
International Business Machines Corporation |
4.750 | % | 11/29/12 | 240 | 235 | ||||||||||
Sungard Data Systems Inc. |
10.250 | % | 8/15/15 | 630 | 649 | ||||||||||
2,756 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE | |||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
Containers and Packaging |
0.6 | % | |||||||||||||
Berry Plastics Holding Corp. |
8.875 | % | 9/15/14 | $ | 135 | $ | 136 | A | |||||||
Graham Packaging Company Inc. |
9.875 | % | 10/15/14 | 298 | 293 | ||||||||||
Graphic Packaging International Corp. |
8.500 | % | 8/15/11 | 40 | 41 | ||||||||||
Graphic Packaging International Corp. |
9.500 | % | 8/15/13 | 210 | 215 | ||||||||||
Owens-Brockway Glass Container Inc. |
8.750 | % | 11/15/12 | 330 | 348 | ||||||||||
1,033 | |||||||||||||||
Construction Machinery |
0.1 | % | |||||||||||||
H&E Equipment Services, Inc. |
8.375 | % | 7/15/16 | 90 | 92 | A | |||||||||
Consumer Products |
0.2 | % | |||||||||||||
American Greetings Corporation |
7.375 | % | 6/1/16 | 20 | 20 | ||||||||||
FTD, Inc. |
7.750 | % | 2/15/14 | 140 | 138 | ||||||||||
Playtex Products, Inc. |
8.000 | % | 3/1/11 | 150 | 156 | ||||||||||
Spectrum Brands, Inc. |
7.375 | % | 2/1/15 | 35 | 28 | ||||||||||
342 | |||||||||||||||
Diversified Financial Services |
3.1 | % | |||||||||||||
AAC Group Holding Corp. |
0.000 | % | 10/1/12 | 440 | 365 | C | |||||||||
ACE Cash Express, Inc. |
10.250 | % | 10/1/14 | 70 | 71 | A | |||||||||
CIT Group Inc. |
7.750 | % | 4/2/12 | 1,600 | 1,772 | ||||||||||
Citigroup Inc. |
6.625 | % | 6/15/32 | 1,000 | 1,094 | ||||||||||
CitiSteel USA Inc. |
12.949 | % | 9/1/10 | 350 | 361 | B | |||||||||
General Electric Capital Corporation |
3.750 | % | 12/15/09 | 740 | 711 | ||||||||||
General Electric Capital Corporation |
6.000 | % | 6/15/12 | 700 | 727 | ||||||||||
General Electric Capital Corporation |
5.450 | % | 1/15/13 | 250 | 253 | ||||||||||
5,354 | |||||||||||||||
Drug & Grocery Store Chains |
1.3 | % | |||||||||||||
CVS Lease Pass Through |
5.880 | % | 1/10/28 | 1,578 | 1,561 | A | |||||||||
Delhaize America, Inc. |
9.000 | % | 4/15/31 | 180 | 211 | ||||||||||
Safeway Inc. |
5.800 | % | 8/15/12 | 500 | 501 | ||||||||||
2,273 | |||||||||||||||
Education |
0.1 | % | |||||||||||||
Education Management LLC |
8.750 | % | 6/1/14 | 140 | 141 | A | |||||||||
Electric |
6.7 | % | |||||||||||||
Dominion Resources, Inc. |
5.700 | % | 9/17/12 | 770 | 775 | ||||||||||
Duke Energy Corporation |
6.250 | % | 1/15/12 | 250 | 260 | ||||||||||
Edison Mission Energy |
7.500 | % | 6/15/13 | 20 | 20 | A | |||||||||
Edison Mission Energy |
7.750 | % | 6/15/16 | 180 | 182 | A | |||||||||
Elwood Energy LLC |
8.159 | % | 7/5/26 | 353 | 372 | ||||||||||
Exelon Generation Co. LLC |
6.950 | % | 6/15/11 | 2,000 | 2,120 | ||||||||||
FirstEnergy Corp. |
6.450 | % | 11/15/11 | 610 | 636 | ||||||||||
FirstEnergy Corp. |
7.375 | % | 11/15/31 | 3,040 | 3,515 | ||||||||||
IPALCO Enterprises, Inc. |
8.625 | % | 11/14/11 | 130 | 139 | ||||||||||
MidAmerican Energy Holdings Company |
5.875 | % | 10/1/12 | 250 | 255 | ||||||||||
Niagara Mohawk Power Corporation |
7.750 | % | 10/1/08 | 1,500 | 1,566 | ||||||||||
Progress Energy, Inc. |
7.100 | % | 3/1/11 | 250 | 268 | ||||||||||
Progress Energy, Inc. |
6.850 | % | 4/15/12 | 750 | 801 | ||||||||||
The AES Corporation |
9.000 | % | 5/15/15 | 440 | 474 | A | |||||||||
TXU Electric Delivery Company |
7.000 | % | 9/1/22 | 250 | 271 | ||||||||||
11,654 | |||||||||||||||
Energy |
0.8 | % | |||||||||||||
Midwest Generation LLC |
8.560 | % | 1/2/16 | 83 | 89 | ||||||||||
Midwest Generation LLC |
8.750 | % | 5/1/34 | 325 | 347 | ||||||||||
Mirant North America LLC |
7.375 | % | 12/31/13 | 350 | 350 | ||||||||||
NRG Energy, Inc. |
7.375 | % | 2/1/16 | 505 | 502 | ||||||||||
Orion Power Holdings, Inc. |
12.000 | % | 5/1/10 | 150 | 170 | ||||||||||
1,458 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE |
|||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
Entertainment |
0.4 | % | |||||||||||||
AMC Entertainment Inc. |
11.000 | % | 2/1/16 | $ | 425 | $ | 463 | ||||||||
Cinemark, Inc. |
0.000 | % | 3/15/14 | 15 | 12 | C | |||||||||
Warner Music Group |
7.375 | % | 4/15/14 | 170 | 166 | ||||||||||
641 | |||||||||||||||
Environmental Services |
1.4 | % | |||||||||||||
Waste Management, Inc. |
7.375 | % | 5/15/29 | 2,000 | 2,289 | ||||||||||
Waste Management, Inc. |
7.750 | % | 5/15/32 | 40 | 48 | ||||||||||
2,337 | |||||||||||||||
Food, Beverage and Tobacco |
2.3 | % | |||||||||||||
Alliance One International, Inc. |
11.000 | % | 5/15/12 | 130 | 133 | ||||||||||
Altria Group, Inc. |
7.000 | % | 11/4/13 | 250 | 273 | ||||||||||
Altria Group, Inc. |
7.750 | % | 1/15/27 | 1,000 | 1,211 | ||||||||||
Dole Foods Co. |
7.250 | % | 6/15/10 | 285 | 264 | ||||||||||
Kraft Foods Inc. |
5.250 | % | 10/1/13 | 400 | 395 | ||||||||||
Nabisco Inc. |
7.550 | % | 6/15/15 | 1,500 | 1,706 | ||||||||||
3,982 | |||||||||||||||
Gaming |
0.2 | % | |||||||||||||
Isle of Capri Casinos |
9.000 | % | 3/15/12 | 20 | 21 | ||||||||||
Isle of Capri Casinos |
7.000 | % | 3/1/14 | 60 | 57 | ||||||||||
Pokagon Gaming Authority |
10.375 | % | 6/15/14 | 250 | 267 | A | |||||||||
345 | |||||||||||||||
Gas and Pipeline Utilities |
2.1 | % | |||||||||||||
Colorado Interstate Gas Company |
6.800 | % | 11/15/15 | 150 | 151 | ||||||||||
Duke Energy Field Services Corporation |
7.875 | % | 8/16/10 | 750 | 812 | ||||||||||
Kinder Morgan Energy Partners, L.P. |
7.125 | % | 3/15/12 | 500 | 530 | ||||||||||
Panhandle Eastern Pipe Line Company |
4.800 | % | 8/15/08 | 400 | 394 | ||||||||||
Texas Eastern Transmission |
5.250 | % | 7/15/07 | 750 | 747 | ||||||||||
The Williams Companies, Inc. |
7.500 | % | 1/15/31 | 902 | 891 | ||||||||||
The Williams Companies, Inc. |
8.750 | % | 3/15/32 | 85 | 93 | ||||||||||
3,618 | |||||||||||||||
Healthcare |
2.1 | % | |||||||||||||
Fresenius Medical Care Capital Trust II |
7.875 | % | 2/1/08 | 250 | 254 | ||||||||||
Tenet Healthcare Corporation |
9.250 | % | 2/1/15 | 2,810 | 2,705 | ||||||||||
Vanguard Health Holding Co. II, LLC |
9.000 | % | 10/1/14 | 735 | 713 | ||||||||||
3,672 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE |
|||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
Insurance |
0.2 | % | |||||||||||||
Crum & Forster Holdings Corporation |
10.375 | % | 6/15/13 | $ | 360 | $ | 369 | ||||||||
Investment Banking/Brokerage |
4.1 | % | |||||||||||||
Credit Suisse First Boston, USA |
6.500 | % | 1/15/12 | 1,125 | 1,185 | ||||||||||
J.P. Morgan Chase & Co. |
5.750 | % | 1/2/13 | 1,750 | 1,790 | ||||||||||
J.P. Morgan Chase & Co. |
5.125 | % | 9/15/14 | 1,300 | 1,275 | ||||||||||
Morgan Stanley |
6.600 | % | 4/1/12 | 1,500 | 1,593 | ||||||||||
The Goldman Sachs Group, Inc. |
6.600 | % | 1/15/12 | 1,200 | 1,266 | ||||||||||
7,109 | |||||||||||||||
Machinery |
0.2 | % | |||||||||||||
Terex Corporation |
7.375 | % | 1/15/14 | 270 | 271 | ||||||||||
Manufacturing (Diversified) |
2.3 | % | |||||||||||||
Eastman Kodak Co. |
7.250 | % | 11/15/13 | 1,800 | 1,758 | ||||||||||
Interface, Inc. |
10.375 | % | 2/1/10 | 400 | 436 | ||||||||||
Jacuzzi Brands, Incorporated |
9.625 | % | 7/1/10 | 535 | 567 | ||||||||||
Koppers Inc. |
9.875 | % | 10/15/13 | 138 | 149 | ||||||||||
Leiner Health Products L.P. |
11.000 | % | 6/1/12 | 280 | 271 | ||||||||||
Norcraft Companies, L.P. |
9.000 | % | 11/1/11 | 480 | 487 | ||||||||||
Nutro Products Inc. |
10.750 | % | 4/15/14 | 115 | 123 | A | |||||||||
Rayovac Corporation |
8.500 | % | 10/1/13 | 165 | 143 | ||||||||||
Simmons Company |
0.000 | % | 12/15/14 | 90 | 64 | B | |||||||||
3,998 | |||||||||||||||
Media |
3.5 | % | |||||||||||||
AOL Time Warner Inc. |
6.150 | % | 5/1/07 | 250 | 251 | ||||||||||
AOL Time Warner Inc. |
6.875 | % | 5/1/12 | 1,400 | 1,480 | ||||||||||
AOL Time Warner Inc. |
7.700 | % | 5/1/32 | 1,150 | 1,284 | ||||||||||
Barrington Broadcasting Group, LLC |
10.500 | % | 8/15/14 | 55 | 54 | A | |||||||||
Clear Channel Communications, Inc. |
4.900 | % | 5/15/15 | 700 | 618 | ||||||||||
Liberty Media Corporation |
3.750 | % | 2/15/30 | 1,860 | 1,158 | D | |||||||||
LIN Television Corporation |
6.500 | % | 5/15/13 | 120 | 112 | ||||||||||
News America Holdings Inc. |
6.625 | % | 1/9/08 | 300 | 305 | ||||||||||
News America Holdings Inc. |
8.875 | % | 4/26/23 | 400 | 485 | ||||||||||
Sinclair Broadcast Group, Inc. |
8.000 | % | 3/15/12 | 305 | 309 | ||||||||||
6,056 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE | |||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
Medical Care Facilities |
0.5 | % | |||||||||||||
DaVita, Inc. |
7.250 | % | 3/15/15 | $ | 300 | $ | 295 | ||||||||
HCA, Inc. |
6.300 | % | 10/1/12 | 85 | 72 | ||||||||||
HCA, Inc. |
6.500 | % | 2/15/16 | 105 | 84 | ||||||||||
HCA, Inc. |
7.690 | % | 6/15/25 | 90 | 70 | ||||||||||
HCA, Inc. |
7.500 | % | 11/15/95 | 485 | 346 | ||||||||||
867 | |||||||||||||||
Metals and Mining |
0.9 | % | |||||||||||||
Alcoa Inc. |
5.375 | % | 1/15/13 | 750 | 751 | ||||||||||
International Steel Group, Inc. |
6.500 | % | 4/15/14 | 130 | 128 | ||||||||||
Metals USA, Inc. |
11.125 | % | 12/1/15 | 335 | 367 | ||||||||||
Mueller Group Inc. |
10.000 | % | 5/1/12 | 20 | 22 | ||||||||||
Mueller Holdings Inc. |
0.000 | % | 4/15/14 | 265 | 233 | C | |||||||||
1,501 | |||||||||||||||
Office Equipment |
0.2 | % | |||||||||||||
Xerox Corporation |
6.750 | % | 2/1/17 | 280 | 284 | ||||||||||
Oil and Gas |
7.4 | % | |||||||||||||
AmeriGas Partners, L.P. |
7.250 | % | 5/20/15 | 90 | 90 | ||||||||||
Belden & Blake Corporation |
8.750 | % | 7/15/12 | 750 | 771 | ||||||||||
Chesapeake Energy Corporation |
6.375 | % | 6/15/15 | 480 | 458 | ||||||||||
Chesapeake Energy Corporation |
6.625 | % | 1/15/16 | 30 | 29 | ||||||||||
Chesapeake Energy Corporation |
6.500 | % | 8/15/17 | 140 | 131 | ||||||||||
ConocoPhillips |
4.750 | % | 10/15/12 | 1,000 | 979 | ||||||||||
Devon Energy Corporation |
7.950 | % | 4/15/32 | 1,000 | 1,235 | ||||||||||
Devon Finance Corp. ULC |
6.875 | % | 9/30/11 | 2,000 | 2,128 | ||||||||||
El Paso Corporation |
6.375 | % | 2/1/09 | 333 | 332 | ||||||||||
El Paso Corporation |
7.750 | % | 6/15/10 | 1,496 | 1,548 | ||||||||||
El Paso Corporation |
7.625 | % | 7/15/11 | 500 | 513 | ||||||||||
El Paso Corporation |
7.800 | % | 8/1/31 | 210 | 215 | ||||||||||
Encore Acquisition |
6.000 | % | 7/15/15 | 45 | 41 | ||||||||||
Hess Corporation |
7.300 | % | 8/15/31 | 60 | 68 | ||||||||||
Hess Corporation |
7.875 | % | 10/1/29 | 1,640 | 1,938 | ||||||||||
Occidental Petroleum Corporation |
6.750 | % | 1/15/12 | 500 | 534 | ||||||||||
Parker Drilling Company |
9.625 | % | 10/1/13 | 300 | 327 | ||||||||||
Plains Exploration & Production Company |
7.125 | % | 6/15/14 | 190 | 199 | ||||||||||
Pride International, Inc. |
7.375 | % | 7/15/14 | 240 | 247 | ||||||||||
SESI LLC |
6.875 | % | 6/1/14 | 10 | 10 | A | |||||||||
Suburban Propane Partners, LP |
6.875 | % | 12/15/13 | 580 | 560 | ||||||||||
Valero Energy Corporation |
7.500 | % | 4/15/32 | 400 | 463 | ||||||||||
12,816 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE |
|||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
Paper and Forest Products |
2.5 | % | |||||||||||||
Appleton Papers Inc. |
9.750 | % | 6/15/14 | $ | 300 | $ | 296 | ||||||||
NewPage Corporation |
12.000 | % | 5/1/13 | 310 | 321 | ||||||||||
Verso Paper Holdings LLC |
9.125 | % | 8/1/14 | 65 | 65 | A | |||||||||
Verso Paper Holdings LLC |
11.375 | % | 8/1/16 | 125 | 124 | A | |||||||||
Weyerhaeuser Company |
6.750 | % | 3/15/12 | 2,400 | 2,508 | ||||||||||
Weyerhaeuser Company |
7.375 | % | 3/15/32 | 1,000 | 1,036 | ||||||||||
4,350 | |||||||||||||||
Publishing |
0.4 | % | |||||||||||||
Dex Media East LLC |
12.125 | % | 11/15/12 | 122 | 136 | ||||||||||
Houghton Mifflin Co. |
0.000 | % | 10/15/13 | 210 | 183 | C | |||||||||
PRIMEDIA Inc. |
8.875 | % | 5/15/11 | 315 | 308 | ||||||||||
627 | |||||||||||||||
Real Estate |
0.2 | % | |||||||||||||
Kimball Hill Inc. |
10.500 | % | 12/15/12 | 170 | 153 | ||||||||||
Ventas, Inc. |
6.625 | % | 10/15/14 | 260 | 261 | ||||||||||
414 | |||||||||||||||
Rental Auto/Equipment |
0.6 | % | |||||||||||||
Ashtead Capital Inc. |
9.000 | % | 8/15/16 | 109 | 113 | A | |||||||||
Hertz Corporation |
10.500 | % | 1/1/16 | 645 | 710 | A | |||||||||
Penhall International Corp. |
12.000 | % | 8/1/14 | 240 | 251 | A | |||||||||
1,074 | |||||||||||||||
Retail |
0.6 | % | |||||||||||||
Blockbuster Inc. |
9.000 | % | 9/1/12 | 140 | 128 | ||||||||||
Brookstone, Inc. |
12.000 | % | 10/15/12 | 55 | 50 | ||||||||||
EPL Finance Corporation |
11.750 | % | 11/15/13 | 195 | 216 | A | |||||||||
Neiman Marcus Group, Inc. |
9.000 | % | 10/15/15 | 190 | 202 | ||||||||||
Neiman Marcus Group, Inc. |
10.375 | % | 10/15/15 | 200 | 216 | ||||||||||
Stater Bros. Holdings Inc. |
8.890 | % | 6/15/10 | 170 | 172 | B | |||||||||
984 | |||||||||||||||
Retail (Food Chains) |
0.2 | % | |||||||||||||
Dennys Corporation/Dennys Holdings |
10.000 | % | 10/1/12 | 90 | 93 | ||||||||||
Dominos Inc. |
8.250 | % | 7/1/11 | 248 | 260 | ||||||||||
353 | |||||||||||||||
Services (Diversified) |
0.1 | % | |||||||||||||
Allied Security LLC |
11.375 | % | 7/15/11 | 40 | 40 | ||||||||||
Service Corporation International |
7.375 | % | 10/1/14 | 5 | 5 | A | |||||||||
Service Corporation International |
7.750 | % | 6/15/17 | 140 | 134 | A | |||||||||
Service Corporation International |
7.625 | % | 10/1/18 | 5 | 5 | A | |||||||||
184 | |||||||||||||||
Special Purpose |
1.6 | % | |||||||||||||
Air 2 U.S. |
8.027 | % | 10/1/19 | 580 | 583 | A | |||||||||
CCM Merger, Inc. |
8.000 | % | 8/1/13 | 140 | 134 | A | |||||||||
GrafTech Finance Inc. |
10.250 | % | 2/15/12 | 70 | 74 | ||||||||||
Hexion US Finance Corp. |
9.000 | % | 7/15/14 | 280 | 286 | ||||||||||
Hughes Network Systems |
9.500 | % | 4/15/14 | 140 | 144 | A | |||||||||
Milacron Escrow Corp. |
11.500 | % | 5/15/11 | 410 | 390 | ||||||||||
Rainbow National Services LLC |
8.750 | % | 9/1/12 | 100 | 107 | A | |||||||||
Rainbow National Services LLC |
10.375 | % | 9/1/14 | 250 | 283 | A | |||||||||
River Rock Entertainment |
9.750 | % | 11/1/11 | 380 | 404 | ||||||||||
UGS Corp. |
10.000 | % | 6/1/12 | 305 | 329 | ||||||||||
2,734 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE |
|||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
Telecommunications |
4.0 | % | |||||||||||||
BellSouth Corporation |
6.000 | % | 10/15/11 | $ | 1,000 | $ | 1,023 | ||||||||
Cincinnati Bell Inc. |
6.300 | % | 12/1/28 | 25 | 22 | ||||||||||
Cincinnati Bell Inc. |
7.000 | % | 2/15/15 | 330 | 323 | ||||||||||
Citizens Communications Company |
9.250 | % | 5/15/11 | 90 | 99 | ||||||||||
Citizens Communications Company |
9.000 | % | 8/15/31 | 80 | 86 | ||||||||||
Qwest Communications International Inc. |
7.250 | % | 2/15/11 | 160 | 160 | ||||||||||
Qwest Corporation |
7.875 | % | 9/1/11 | 390 | 410 | ||||||||||
Qwest Corporation |
8.875 | % | 3/15/12 | 140 | 153 | ||||||||||
Qwest Corporation |
7.500 | % | 10/1/14 | 295 | 305 | A | |||||||||
SBC Communications Inc. |
6.250 | % | 3/15/11 | 1,000 | 1,032 | E | |||||||||
Sprint Capital Corp. |
6.000 | % | 1/15/07 | 1,500 | 1,502 | ||||||||||
Sprint Capital Corp. |
8.375 | % | 3/15/12 | 1,450 | 1,625 | ||||||||||
XM Satellite Radio, Inc. |
9.750 | % | 5/1/14 | 200 | 191 | ||||||||||
6,931 | |||||||||||||||
Telecommunications (Cellular/Wireless) |
2.0 | % | |||||||||||||
AT&T Wireless Services, Inc. |
7.500 | % | 5/1/07 | 500 | 506 | ||||||||||
AT&T Wireless Services, Inc. |
8.125 | % | 5/1/12 | 500 | 563 | ||||||||||
Cingular Wireless LLC |
6.500 | % | 12/15/11 | 250 | 262 | ||||||||||
Hawaiian Telecom Communications, Inc. |
12.500 | % | 5/1/15 | 635 | 667 | ||||||||||
L-3 Communications Corporation |
6.375 | % | 10/15/15 | 430 | 418 | ||||||||||
Motorola, Inc. |
7.625 | % | 11/15/10 | 64 | 70 | ||||||||||
Rural Cellular Corp. |
9.875 | % | 2/1/10 | 235 | 245 | ||||||||||
Telcordia Technologies Inc. |
10.000 | % | 3/15/13 | 485 | 323 | A | |||||||||
Ubiquitel Operating Co. |
9.875 | % | 3/1/11 | 150 | 163 | ||||||||||
Verizon Wireless Capital LLC |
5.375 | % | 12/15/06 | 250 | 250 | ||||||||||
3,467 | |||||||||||||||
Transportation |
12.6 | % | |||||||||||||
America West Airlines, Inc. |
6.850 | % | 7/2/09 | 389 | 387 | ||||||||||
America West Airlines, Inc. |
8.057 | % | 7/2/20 | 3,327 | 3,544 | ||||||||||
American Airlines, Inc. |
7.800 | % | 10/1/06 | 310 | 310 | ||||||||||
American Commercial Lines/ACL Finance Corp. |
9.500 | % | 2/15/15 | 136 | 148 | ||||||||||
Continental Airlines, Inc. |
7.160 | % | 3/24/13 | 961 | 932 | ||||||||||
Continental Airlines, Inc. |
6.900 | % | 1/2/18 | 1,072 | 1,103 | ||||||||||
Continental Airlines, Inc. |
6.820 | % | 5/1/18 | 1,004 | 1,028 | ||||||||||
Continental Airlines, Inc. |
6.545 | % | 2/2/19 | 1,919 | 1,953 | ||||||||||
Continental Airlines, Inc. |
8.048 | % | 11/1/20 | 744 | 793 | ||||||||||
Continental Airlines, Inc. |
6.703 | % | 6/15/21 | 1,046 | 1,046 | ||||||||||
GulfMark Offshore, Inc. |
7.750 | % | 7/15/14 | 270 | 271 | ||||||||||
H-Lines Finance Holding Corp. |
0.000 | % | 4/1/13 | 247 | 217 | C | |||||||||
Horizon Lines, LLC |
9.000 | % | 11/1/12 | 244 | 251 | ||||||||||
Kansas City Southern Railway Co. |
7.500 | % | 6/15/09 | 150 | 150 | ||||||||||
Northwest Airlines Inc. |
5.960 | % | 8/6/13 | 2,547 | 2,419 | ||||||||||
Union Pacific Corporation |
6.125 | % | 1/15/12 | 2,000 | 2,071 | ||||||||||
United Air Lines, Inc. |
7.032 | % | 10/1/10 | 372 | 377 |
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE | |||||||||||
Corporate Bonds and NotesContinued | |||||||||||||||
TransportationContinued |
|||||||||||||||
United Air Lines, Inc. Series 01-1 |
6.602 | % | 9/1/13 | $ | 1,598 | $ | 1,602 | ||||||||
US Airways, Inc. Series 89A2 |
9.820 | % | 1/1/13 | 473 | 208 | F | |||||||||
US Airways, Inc. Series 93A3 |
10.375 | % | 3/1/13 | 236 | 104 | F | |||||||||
US Airways, Inc. Series 98-1 |
6.850 | % | 1/30/18 | 2,824 | 2,859 | ||||||||||
21,773 | |||||||||||||||
Total Corporate Bonds and Notes | |||||||||||||||
(Identified Cost$137,142) |
141,052 | ||||||||||||||
Asset-Backed Securities | 8.7 | % | |||||||||||||
Fixed Rate Securities |
5.3 | % | |||||||||||||
ACE Securities Corporation 2002-M Trust |
0.000 | % | 10/13/17 | 312 | 6 | A,G | |||||||||
BankAmerica Manufactured Housing Contract 1997-2 |
6.900 | % | 4/10/28 | 100 | 122 | ||||||||||
Captiva CBO 1997-1 |
6.860 | % | 11/30/09 | 394 | 393 | A,H | |||||||||
Conseco Finance Securitizations Corp. 2002-1 |
6.681 | % | 12/1/33 | 1,040 | 1,064 | ||||||||||
Contimortgage Home Equity Loan Trust 1997-4 |
7.330 | % | 10/15/28 | 733 | 594 | ||||||||||
FirstFed Corporation Manufactured Housing Contract 1996-1 |
8.060 | % | 10/15/22 | 2,100 | 2,931 | A | |||||||||
Green Tree Financial Corporation 1992-2 |
9.150 | % | 1/15/18 | 576 | 497 | ||||||||||
Green Tree Financial Corporation 1993-1 |
8.450 | % | 4/15/18 | 758 | 692 | ||||||||||
Green Tree Financial Corporation 1996-D |
8.000 | % | 9/15/27 | 213 | 203 | ||||||||||
Green Tree Financial Corporation 1999-4 |
6.970 | % | 5/1/31 | 327 | 328 | ||||||||||
Mutual Fund Fee 2000-2 |
9.550 | % | 4/30/08 | 561 | 38 | A,F | |||||||||
Mutual Fund Fee 2000-3 |
9.070 | % | 7/1/08 | 2,905 | 349 | A | |||||||||
Oakwood Mortgage Investors Inc. 2002-B |
6.060 | % | 3/15/25 | 480 | 429 | ||||||||||
Pegasus Aviation Lease Securitization 2000-1 |
8.370 | % | 3/25/30 | 1,300 | 819 | A | |||||||||
Vanderbilt Mortgage Finance 1997-B |
8.155 | % | 10/7/26 | 693 | 712 | ||||||||||
9,177 | |||||||||||||||
Floating Rate SecuritiesB |
3.3 | % | |||||||||||||
ACE Securities Corp. 2005-SD1 |
5.730 | % | 11/25/50 | 603 | 604 | ||||||||||
Banagricola DPR Funding |
6.380 | % | 3/15/10 | 1,465 | 1,465 | A,H | |||||||||
Bayview Financial Asset Trust 2004-SSRA |
5.930 | % | 12/25/39 | 958 | 963 | A | |||||||||
CS First Boston Mortgage Securities Corporation 2004-CF2 |
5.800 | % | 5/25/44 | 590 | 590 | A | |||||||||
Residential Asset Securities Corporation 2001-KS3 |
5.790 | % | 9/25/31 | 813 | 817 | ||||||||||
Saxson Asset Securities Trust 2000-2 |
8.870 | % | 7/25/30 | 1,183 | 1,199 | ||||||||||
5,638 | |||||||||||||||
Stripped Securities |
0.1 | % | |||||||||||||
Oakwood Mortgage Investors Inc. 2002-C |
6.000 | % | 8/15/10 | 788 | 119 | I1 | |||||||||
Total Asset-Backed Securities | |||||||||||||||
(Identified Cost$16,136) |
14,934 | ||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE | |||||||||||
Mortgage-Backed Securities | 8.6 | % | |||||||||||||
Fixed Rate Securities | 4.1 | % | |||||||||||||
Asset Securitization Corporation 1996-D2 |
6.920 | % | 2/14/29 | $ | 35 | $ | 35 | ||||||||
Bear Stearns Asset Backed Securities, Inc. 2002-AC1 |
7.000 | % | 1/25/32 | 1,828 | 1,842 | A | |||||||||
Commercial Mortgage Acceptance Corporation 1997-ML1 |
6.570 | % | 12/15/30 | 1,250 | 1,258 | ||||||||||
Commercial Mortgage Acceptance Corporation 1997-ML1 |
6.735 | % | 12/15/30 | 1,544 | 1,557 | ||||||||||
Enterprise Mortgage Acceptance Company 1999-1 |
6.420 | % | 10/15/25 | 250 | 108 | A | |||||||||
GMAC Commercial Mortgage Security Inc. 1998-C1 |
6.700 | % | 5/15/30 | 439 | 446 | ||||||||||
GMAC Commercial Mortgage Security Inc. 1998-C1 |
6.974 | % | 5/15/30 | 1,000 | 1,024 | ||||||||||
Metropolitan Asset Funding, Inc. 1998-B1 |
8.000 | % | 11/20/24 | 1,000 | 853 | ||||||||||
7,123 | |||||||||||||||
Floating Rate SecuritiesB |
2.6 | % | |||||||||||||
Banc of America Commercial Mortgage Inc. 2005-5 A4 |
5.115 | % | 10/10/45 | 1,050 | 1,033 | ||||||||||
Blackrock Capital Finance LP 1997-R2 |
6.672 | % | 12/25/35 | 895 | 694 | A | |||||||||
Harborview Mortgage Loan Trust 2004-8 |
5.730 | % | 11/19/34 | 595 | 597 | ||||||||||
Harborview Mortgage Loan Trust 2005-9 |
7.080 | % | 6/20/35 | 1,500 | 1,257 | ||||||||||
Merit Securities Corporation 11PA |
7.574 | % | 9/28/32 | 850 | 240 | A | |||||||||
Washington Mutual 2004-AR12 |
5.765 | % | 10/25/44 | 664 | 665 | ||||||||||
4,486 | |||||||||||||||
Stripped Securities |
1.9 | % | |||||||||||||
Bear Stearns Asset Backed Securities, Inc. 2006-SD3 |
0.000 | % | 8/25/36 | 2,241 | 1,441 | I2 | |||||||||
LB-UBS Commercial Mortgage Trust 2001-C3 |
1.189 | % | 6/15/36 | 2,749 | 104 | A | |||||||||
Prime Mortgage Trust 2005-2 |
1.743 | % | 10/25/32 | 4,209 | 311 | I1 | |||||||||
Prime Mortgage Trust 2005-5 |
0.873 | % | 7/25/34 | 23,225 | 505 | I1 | |||||||||
Prime Mortgage Trust 2005-5 |
1.572 | % | 7/25/34 | 3,344 | 260 | I1 | |||||||||
Residential Asset Mortgage Products, Inc. 2005-SL2 |
0.000 | % | 2/25/32 | 824 | 645 | I2 | |||||||||
3,266 | |||||||||||||||
Total Mortgage-Backed Securities |
|||||||||||||||
(Identified Cost$14,865) |
14,875 | ||||||||||||||
U.S. Government Securities |
10.8 | % | |||||||||||||
Fixed Rate Securities |
5.5 | % | |||||||||||||
United States Treasury Bonds |
5.375 | % | 2/15/31 | 2,500 | 2,700 | J | |||||||||
United States Treasury Bonds |
4.500 | % | 2/15/36 | 850 | 814 | ||||||||||
United States Treasury Notes |
3.375 | % | 2/28/07 | 6,000 | 5,960 | J | |||||||||
9,474 | |||||||||||||||
Treasury Inflation-Protected SecuritiesK |
5.3 | % | |||||||||||||
United States Treasury Inflation-Protected Security |
3.625 | % | 1/15/08 | 2,300 | 2,920 | J,K | |||||||||
United States Treasury Inflation-Protected Security |
3.000 | % | 7/15/12 | 2,550 | 2,994 | J,K | |||||||||
United States Treasury Inflation-Protected Security |
2.000 | % | 7/15/14 | 3,000 | 3,174 | J,K | |||||||||
9,088 | |||||||||||||||
Total U.S. Government Securities |
|||||||||||||||
(Identified Cost$18,308) |
18,562 | ||||||||||||||
U.S. Government Agency Mortgage-Backed Securities |
7.7 | % | |||||||||||||
Fannie Mae |
6.000 | % | 10/15/36 | 12,000 | 12,053 | ||||||||||
Fannie Mae |
6.500 | % | 8/25/44 | 1,164 | 1,184 | ||||||||||
Total U.S. Government Agency Mortgage-Backed | |||||||||||||||
Securities |
|||||||||||||||
(Identified Cost$13,207) |
13,237 | ||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE | |||||||||||
Yankee BondsH |
26.9 | % | |||||||||||||
Aerospace/Defense |
0.1 | % | |||||||||||||
Systems 2001 Asset Trust |
6.664 | % | 9/15/13 | $ | 252 | $ | 266 | A | |||||||
Cable |
0.3 | % | |||||||||||||
Kabel Deutschland GmbH |
10.625 | % | 7/1/14 | 430 | 461 | A | |||||||||
Chemicals |
0.1 | % | |||||||||||||
Montell Finance Co. B.V. |
8.100 | % | 3/15/27 | 200 | 185 | A | |||||||||
Electric |
1.0 | % | |||||||||||||
Hydro-Quebec |
6.300 | % | 5/11/11 | 1,700 | 1,780 | ||||||||||
Energy |
0.1 | % | |||||||||||||
Aquila Canada Finance Corporation |
7.750 | % | 6/15/11 | 110 | 116 | ||||||||||
Foreign Government |
15.0 | % | |||||||||||||
Dominican Republic |
9.500 | % | 9/27/11 | 406 | 437 | A | |||||||||
Federative Republic of Brazil |
10.125 | % | 5/15/27 | 143 | 192 | ||||||||||
Federative Republic of Brazil |
7.125 | % | 1/20/37 | 856 | 874 | ||||||||||
Federative Republic of Brazil |
11.000 | % | 8/17/40 | 4,479 | 5,834 | ||||||||||
Republic of Argentina |
5.590 | % | 8/3/12 | 818 | 762 | B | |||||||||
Republic of Colombia |
11.750 | % | 2/25/20 | 768 | 1,075 | ||||||||||
Republic of Ecuador |
10.000 | % | 8/15/30 | 605 | 554 | A,C | |||||||||
Republic of El Salvador |
8.250 | % | 4/10/32 | 625 | 716 | A | |||||||||
Republic of Honduras |
4.706 | % | 10/1/11 | 184 | 182 | B | |||||||||
Republic of Panama |
9.375 | % | 4/1/29 | 1,496 | 1,930 | ||||||||||
Republic of Panama |
6.700 | % | 1/26/36 | 431 | 427 | ||||||||||
Republic of Peru |
5.000 | % | 3/7/17 | 1,107 | 1,092 | B | |||||||||
Republic of Peru |
8.750 | % | 11/21/33 | 950 | 1,164 | ||||||||||
Russian Federation |
5.000 | % | 3/31/30 | 7,605 | 8,488 | C | |||||||||
United Mexican States |
7.500 | % | 4/8/33 | 1,870 | 2,157 | ||||||||||
25,884 | |||||||||||||||
Insurance |
0.6 | % | |||||||||||||
XL Capital Ltd. |
5.250 | % | 9/15/14 | 1,000 | 973 | ||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR | VALUE |
|||||||||||
Yankee BondsI (Continued) |
|||||||||||||||
Manufacturing (Diversified) |
2.3 | % | |||||||||||||
Tyco International Group SA |
6.375 | % | 10/15/11 | $ | 1,000 | $ | 1,048 | ||||||||
Tyco International Group SA |
6.875 | % | 1/15/29 | 2,615 | 2,911 | ||||||||||
3,959 | |||||||||||||||
Media |
N.M. | ||||||||||||||
Quebecor Media Inc. |
7.750 | % | 3/15/16 | 55 | 55 | ||||||||||
Metals and Mining |
0.1 | % | |||||||||||||
Chaparral Steel Co. |
10.000 | % | 7/15/13 | 20 | 22 | ||||||||||
RathGibson, Inc. |
11.250 | % | 2/15/14 | 170 | 175 | A | |||||||||
197 | |||||||||||||||
Oil and Gas |
1.6 | % | |||||||||||||
Anadarko Finance Co. |
6.750 | % | 5/1/11 | 750 | 788 | ||||||||||
Anadarko Finance Co. |
7.500 | % | 5/1/31 | 1,000 | 1,143 | ||||||||||
Compagnie Generale de Geophysique SA (CGG) |
7.500 | % | 5/15/15 | 210 | 208 | ||||||||||
Pogo Producing Co. |
6.875 | % | 10/1/17 | 290 | 277 | ||||||||||
Western Oil Sands Inc. |
8.375 | % | 5/1/12 | 342 | 367 | ||||||||||
2,783 | |||||||||||||||
Paper and Forest Products |
0.1 | % | |||||||||||||
Domtar Inc. |
7.875 | % | 10/15/11 | 120 | 119 | ||||||||||
Semiconductor Equipment |
0.1 | % | |||||||||||||
Magnachip Semiconductor SA |
8.000 | % | 12/15/14 | 235 | 143 | ||||||||||
Special Purposes |
2.7 | % | |||||||||||||
Burlington Resources Finance |
7.400 | % | 12/1/31 | 450 | 546 | ||||||||||
Deutsche Telekom International Finance BV |
5.250 | % | 7/22/13 | 600 | 583 | ||||||||||
Nell AF S.A.R.L. |
8.375 | % | 8/15/15 | 150 | 149 | A | |||||||||
Petrozuata Finance, Inc. |
8.220 | % | 4/1/17 | 2,880 | 2,808 | A | |||||||||
UFJ Finance Aruba AEC |
6.750 | % | 7/15/13 | 500 | 535 | ||||||||||
4,621 | |||||||||||||||
Telecommunications |
1.4 | % | |||||||||||||
Axtel SA |
11.000 | % | 12/15/13 | 221 | 248 | ||||||||||
France Telecom SA |
8.750 | % | 3/1/31 | 600 | 783 | ||||||||||
INTELSAT |
7.625 | % | 4/15/12 | 310 | 271 | ||||||||||
Intelsat Bermuda Ltd. |
9.250 | % | 6/15/16 | 225 | 237 | A | |||||||||
Intelsat Bermuda Ltd. |
11.250 | % | 6/15/16 | 340 | 361 | A | |||||||||
Wind Acquisition Finance SA |
10.750 | % | 12/1/15 | 500 | 552 | A | |||||||||
2,452 | |||||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
% OF NET ASSETS |
RATE | MATURITY DATE |
PAR/SHARES | VALUE | ||||||||||||
Yankee BondsI (Continued) |
||||||||||||||||
Telecommunications (Cellular/Wireless) |
0.1 | % | ||||||||||||||
Vodaphone Group PLC |
7.750 | % | 2/15/10 | $ | 250 | $ | 268 | |||||||||
Transportation |
1.3 | % | ||||||||||||||
Canadian Pacific Railroad Co. |
6.250 | % | 10/15/11 | 1,000 | 1,040 | |||||||||||
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (TFM) |
9.375 | % | 5/1/12 | 170 | 180 | |||||||||||
Grupo Transportacion Ferroviaria Mexicana, S.A. de C.V. (TFM) |
12.500 | % | 6/15/12 | 750 | 825 | |||||||||||
OMI Corporation |
7.625 | % | 12/1/13 | 200 | 202 | |||||||||||
2,247 | ||||||||||||||||
Total Yankee Bonds | ||||||||||||||||
(Identified Cost$42,051) |
46,509 | |||||||||||||||
Foreign Government Obligations |
0.4 | % | ||||||||||||||
Republic of Argentina |
2.000 | % | 1/3/10 | 1,200 | 762 | B,L | ||||||||||
Total Foreign Government Obligations |
||||||||||||||||
(Identified Cost$755) |
762 | |||||||||||||||
Preferred Stocks |
3.5 | % | ||||||||||||||
Chesapeake Energy Corporation |
6.250 | % | .239 | shrs | 86 | M | ||||||||||
Fannie Mae |
5.375 | % | .015 | 1,444 | M | |||||||||||
Freddie Mac |
3.850 | % | .1 | 4 | N | |||||||||||
Freddie Mac |
5.000 | % | .2 | 9 | ||||||||||||
General Motors Corporation |
5.250 | % | 225 | 4,527 | M | |||||||||||
Total Preferred Stocks |
||||||||||||||||
(Identified Cost$5,140) |
6,070 | |||||||||||||||
Trust Preferred Securities |
3.3 | % | ||||||||||||||
Corporate-Backed Trust Certificates |
7.375 | % | 34 | 598 | ||||||||||||
Corporate-Backed Trust Certificates |
8.000 | % | 16 | 294 | ||||||||||||
CORTS Trust for Ford Motor Co. |
8.000 | % | 155 | 2,857 | ||||||||||||
PreferredPlus TR-CCR1 |
8.250 | % | 5 | 98 | ||||||||||||
SATURNS-F 2003-5 |
8.125 | % | 104 | 1,926 | ||||||||||||
Total Trust Preferred Securities |
||||||||||||||||
(Identified Cost$5,022) |
5,773 | |||||||||||||||
Total Long-Term Securities |
||||||||||||||||
(Identified Cost$252,627) |
261,774 | |||||||||||||||
Short-Term Security |
5.5 | % | ||||||||||||||
Repurchase Agreement |
||||||||||||||||
Merrill Lynch |
||||||||||||||||
5.27% dated 9/30/06, to be repurchased at $9,584 on 10/2/06 |
||||||||||||||||
(Collateral: $12,900 Resolution Funding Corp. (RFCO) Strips, 4.700% |
9,580 | 9,580 | ||||||||||||||
due 10/15/12, value $9,772) |
||||||||||||||||
Total Short-Term Security |
||||||||||||||||
(Identified Cost$9,580) |
9,580 | |||||||||||||||
Total Investments |
157.1 | % | ||||||||||||||
(Identified Cost$262,206) |
271,354 | |||||||||||||||
Other Assets Less Liabilities |
(15.4 | )% | (26,664 | ) | ||||||||||||
Liquidation Value of Preferred Shares |
(41.7 | )% | (72,000 | ) | ||||||||||||
Net Assets Applicable to Common Shareholders |
100.0 | % | $ | 172,690 | ||||||||||||
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
EXPIRATION | ACTUAL CONTRACTS |
APPRECIATION/ (DEPRECIATION) |
||||||
Futures Contracts Written |
||||||||
U.S Treasury Note Futures |
December 2006 | 104 | $ | (135 | ) | |||
$ | (135 | ) | ||||||
A | Rule 144a Security - A security purchased pursuant to Rule 144a under the Securities Act of 1933 which may not be resold subject to that rule except to qualified institutional buyers. These securities, which the Funds investment adviser has determined to be liquid, represent 15.4% of net assets applicable to common shareholders. |
B | Floating Rate Security - The rate of interest on this type of security is tied to the London Interbank Offer Rate (LIBOR). The coupon rate is as of September 30, 2006. |
C | Stepped-Coupon Security - A security with a predetermined schedule of interest or dividend rate changes at which time it begins to accrue interest or pay dividends. |
D | Convertible Bond - Bond may be converted into the issuers common stock. |
E | Collateral to cover futures contracts written. |
F | Bond is in default as of September 30, 2006. |
G | Zero-Coupon Bond - A bond with no periodic interest payments which is sold at such a discount as to produce a current yield to maturity. |
H | Yankee Bond - A dollar-denominated bond issued in the U.S. by a foreign entity. |
I | Stripped Security - Security with interest-only or principal-only payment streams, denoted by a 1 or 2, respectively. For interest-only securities, the amount shown as principal is the notional balance used to calculate the amount of the interest due. |
J | Position, or a portion thereof, with an aggregate market value of $17,748 have been segregated to collateralize reverse repurchase agreements. |
K | Treasury Inflation Protected Security - Treasury security whose principal value is adjusted daily in accordance with changes to the Consumer Price Index (CPI) for all Urban Consumers. Interest is calculated on the basis of the current adjusted principal value. |
L | Denominated in Argentine peso. |
M | Convertible Preferred Stock - Stock may be converted into the issuers common stock. |
N | Indexed Security - The rate of interest on this type of security is based on the Constant Maturity Treasury (CMT) index. The coupon rate is as of September 30, 2006. |
N.M. | -Not meaningful. |
Notes
Security Valuation
Securities owned by the Fund for which market quotations are readily available are valued at current market value. Securities for which market quotations are not readily available are fair valued by the Board of Trustees or the Funds Valuation Committee pursuant to procedures adopted by the Board. In determining fair value, the Board of Trustees or the Funds Valuation Committee consider all relevant qualitative and quantitative information available. The factors are subject to change over time and are reviewed periodically. The values assigned to fair value investments are based on available information and do not necessarily represent amounts that might ultimately be realized, since such amounts depend on future developments inherent in long-term investments. Further, because of the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and the differences
could be material.
Where a security is traded on more than one market, which may include foreign markets, the securities are generally valued on the market considered by the Funds adviser to be the primary market. The Fund will value its foreign securities in U.S. dollars on the basis of the then-prevailing exchange rates.
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
The following is a summary of open swap contracts outstanding at September 30, 2006.
Agreement With: |
Termination Date | The Fund Agrees to Pay |
The Fund Will Receive |
Contract Notional |
Unrealized Appreciation/ (Depreciation) A | |||||||
Credit Suisse First Boston USA (AAMES Mortgage Investment Trust 2005-1, 1- Month LIBORC + 160 bp*, due 6/25/35) |
June 25, 2035 | 1.28% Monthly |
Specified Amount upon credit event noticeB |
$ | 43 | $ | | |||||
Credit Suisse First Boston USA (AAMES Mortgage Investment Trust 2005-1, 1- Month LIBORC + 250 bp*, due 6/25/35) |
June 25, 2035 | 2.05% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (ACE Securities Corporation, 1- Month LIBORC + 138 bp*, due 2/25/35) |
February 25, 2035 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (ACE Securities Corporation 2005-HE1, 1- Month LIBORC + 220 bp*, due 2/25/35) |
February 25, 2035 | 2.06% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (Aegis Asset Backed Securities Trust, 1- Month LIBORC + 190 bp*), due 10/25/34) |
October 25, 2034 | 1.37% Monthly |
Specified Amount upon credit event noticeB |
58 | | |||||||
Credit Suisse First Boston USA (Aegis Asset Backed Securities Trust 2005-1, 1- Month LIBORC + 130 bp*, due 3/25/35) |
March 25, 2035 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Aegis Asset Backed Securities Trust 2005-1, 1- Month LIBORC + 200 bp*, due 3/25/35) |
March 25, 2035 | 2.18% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (Argent Securities Inc. 2004-W4, 1- Month LIBORC + 300 bp*, due 3/25/34) |
March 25, 2034 | 2.20% Monthly |
Specified Amount upon credit event noticeB |
58 | | |||||||
Credit Suisse First Boston USA (Argent Securities Inc. 2004-W11, 1- Month LIBORC + 225 bp*, due 11/25/34) |
November 25, 2034 | 1.33% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Argent Securities Inc. 2004-W11, 1- Month LIBORC + 350 bp*, due 11/25/34) |
November 25, 2034 | 2.15% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (Finance America Mortgage Loan Trust, 1- Month LIBORC + 180 bp*, due 11/25/34) |
November 25, 2034 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | |
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
Agreement With: |
Termination Date | The Fund Agrees to Pay |
The Fund Will Receive |
Contract Notional Amount |
Unrealized Appreciation/ | |||||||
Credit Suisse First Boston USA (Finance America Mortgage Loan Trust 2004-3, 1- Month LIBORC + 315 bp*, due 11/25/34) |
November 25, 2034 | 2.18% Monthly |
Specified Amount upon credit event noticeB |
$ | 43 | $ | | |||||
Credit Suisse First Boston USA (Fremont Home Loan Trust 2005-A, 1- Month LIBORC + 135 bp*, due 1/25/35) |
January 25, 2035 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Fremont Home Loan Trust 2005-A, 1- Month LIBORC + 200 bp*, due 1/25/35) |
January 25, 2035 | 2.08% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (INDYMAC Home Equity Loan Asset-Backed Trust 2004-C, 1- Month LIBORC + 190 bp*, due 3/25/35) |
March 25, 2035 | 1.28% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (INDYMAC Home Equity Loan Asset-Backed Trust 2004-C, 1- Month LIBOR1 + 325 bp*, due 3/25/35) |
March 25, 2035 | 2.05% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Long Beach Mortgage Loan Trust 2004-1, 1- Month LIBORC + 350 bp*), due 2/25/34) |
February 25, 2034 | 2.15% Monthly |
Specified Amount upon credit event noticeB |
58 | | |||||||
Credit Suisse First Boston USA (Long Beach Mortgage Loan Trust 2005-1, 1- Month LIBORC + 170 bp*, due 2/25/35) |
February 25, 2035 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Long Beach Mortgage Loan Trust 2005-1, 1- Month LIBORC + 275 bp*, due 2/25/35) |
February 25, 2035 | 2.08% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (MASTR Asset Backed Securities Trust 2005-NC1, 1- Month LIBORC + 153 bp*, due 12/25/34) |
December 25, 2034 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (MASTR Asset Backed Securities Trust 2005-NC1, 1- Month LIBORC + 240 bp*, due 12/25/34) |
December 25, 2034 | 2.08% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 |
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
Agreement With: |
Termination Date | The Fund Agrees to Pay |
The Fund Will Receive |
Contract Notional Amount |
Unrealized Appreciation/ | |||||||
Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2004-WMC1, 1- Month LIBORC + 225 bp*, due 9/25/35) |
September 25, 2035 | 2.05% Monthly |
Specified Amount upon credit event noticeB |
$ | 43 | $ | | |||||
Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2004-WMC4, 1- Month LIBORC + 375 bp*, due 4/25/35) |
April 25, 2035 | 2.15% Monthly |
Specified Amount upon credit event noticeB |
58 | | |||||||
Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2005-NC1, 1- Month LIBORC + 130 bp*, due 10/25/35) |
October 25, 2035 | 1.28% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2005-NC1, 1- Month LIBORC + 205 bp*, due 10/25/35) |
October 25, 2035 | 2.05% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (Merrill Lynch Mortgage Investors, Inc. 2005-WMC1, 1- Month LIBORC + 135 bp*, due 9/25/35) |
September 25, 2035 | 1.28% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Morgan Stanley ABS Capital I 2005-WMC1, 1- Month LIBORC + 130 bp*, due 1/25/35) |
January 25, 2035 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Morgan Stanley ABS Capital I 2005-WMC1, 1- Month LIBORC + 215 bp*, due 1/25/35) |
January 25, 2035 | 2.18% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (New Century Home Equity Loan Trust 2004-2, 1- Month LIBORC + 325 bp*), due 8/25/34) |
August 25, 2034 | 2.15% Monthly |
Specified Amount upon credit event noticeB |
58 | | |||||||
Credit Suisse First Boston USA (New Century Home Equity Loan Trust 2005-1, 1- Month LIBORC + 140 bp*, due 3/25/35) |
March 25, 2035 | 1.31% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (New Century Home Equity Loan Trust 2005-1, 1- Month LIBORC + 205 bp*, due 3/25/35) |
March 25, 2035 | 2.18% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Novastar Home Equity Loan 2005-1, 1- Month LIBORC + 135 bp*, due 6/25/35) |
June 25, 2035 | 1.28% Monthly |
Specified Amount upon credit event noticeB |
43 | |
PORTFOLIO OF INVESTMENTS
Western Asset Premier Bond Fund
September 30, 2006 (Unaudited)
(Amounts in thousands)
Agreement With: |
Termination Date | The Fund Agrees to Pay |
The Fund Will Receive |
Contract Notional Amount |
Unrealized Appreciation/ (Depreciation) A | |||||||
Credit Suisse First Boston USA (Novastar Home Equity Loan 2005-1, 1- Month LIBORC + 195 bp*, due 6/25/35) |
June 25, 2035 | 2.05% Monthly |
Specified Amount upon credit event noticeB |
$ | 43 | $ | 1 | |||||
Credit Suisse First Boston USA (Park Place Securities, Inc. 2005-WCH1, 1- Month LIBORC + 155 bp*, due 1/25/36) |
January 25, 2036 | 1.36% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (Park Place Securities, Inc. 2005-WCH1, 1- Month LIBORC + 250 bp*, due 1/25/36) |
January 25, 2036 | 2.18% Monthly |
Specified Amount upon credit event noticeB |
43 | 1 | |||||||
Credit Suisse First Boston USA (Peoples Choice Home Loan Securities Trust 2004-1, 1- Month LIBORC + 230 bp*, due 6/25/34) |
June 25, 2034 | 1.37% Monthly |
Specified Amount upon credit event noticeB |
58 | | |||||||
Credit Suisse First Boston USA (Peoples Choice Home Loan Securities Trust 2005-1, 1- Month LIBORC + 165 bp*, due 1/25/35) |
January 25, 2035 | 1.28% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Credit Suisse First Boston USA (Peoples Choice Home Loan Securities Trust 2005-1, 1- Month LIBORC + 260 bp*, due 1/25/35) |
January 25, 2035 | 2.05% Monthly |
Specified Amount upon credit event noticeB |
43 | | |||||||
Merrill Lynch (iBoxx CDX NA IG) |
June 20, 2010 | Specified Amount upon credit event noticeD |
0.40% Quarterly | 15,000 | 235 | |||||||
$ | 245 | |||||||||||
A | - refers to amounts less than $1,000. |
B | Upon Bankruptcy or failure to make a scheduled interest payment, the Fund will receive $1,000. |
C | As of September 30, 2006, the 1 month London Interbank Offered Rate was 5.32%. |
D | Upon Bankruptcy or failure to make a scheduled interest payment, the Fund will pay $1,000. |
* | 100 basis points = 1%. |
Item 2 Controls and Procedures
(a) | Western Asset Premier Bond Funds (the Registrant) principal executive and principal financial officers have concluded, based on their evaluation of the Registrants disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrants 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 in the Securities and Exchange Commissions rules and forms 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 Registrants 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 Registrants internal control over financial reporting during the Registrants last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the internal control over financial reporting. |
Item 3 Exhibits
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 filed as an exhibit 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.
Western Asset Premier Bond Fund | ||
By: | /s/ James W. Hirschmann | |
James W. Hirschmann | ||
President | ||
Western Asset Premier Bond Fund |
Date: November 27, 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/ James W. Hirschmann | |
James W. Hirschmann | ||
President | ||
Western Asset Premier Bond Fund |
Date: November 27, 2006
By: | /s/ Marie K. Karpinski | |
Marie K. Karpinski | ||
Principal Financial and Accounting Officer | ||
Western Asset Premier Bond Fund |
Date: November 20, 2006