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 811-22334
Western Asset Global Corporate Defined Opportunity Fund Inc.
(Exact name of registrant as specified in charter)
620 Eighth Avenue, 49th Floor, New York, NY 10018
(Address of principal executive offices) (Zip code)
Robert I. Frenkel, Esq.
Legg Mason & Co., LLC
100 First Stamford Place
Stamford, CT 06902
(Name and address of agent for service)
Registrants telephone number, including area code: (888) 777-0102
Date of fiscal year end: October 31
Date of reporting period: January 31, 2014
ITEM 1. | SCHEDULE OF INVESTMENTS. |
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
FORM N-Q
JANUARY 31, 2014
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
CORPORATE BONDS & NOTES - 111.8% | ||||||||||||||||
CONSUMER DISCRETIONARY - 13.3% | ||||||||||||||||
Auto Components - 0.4% |
||||||||||||||||
Europcar Groupe SA, Senior Notes |
11.500 | % | 5/15/17 | 175,000 | EUR | $ | 270,541 | (a) | ||||||||
Europcar Groupe SA, Senior Notes |
9.375 | % | 4/15/18 | 785,000 | EUR | 1,117,721 | (a) | |||||||||
|
|
|||||||||||||||
Total Auto Components |
1,388,262 | |||||||||||||||
|
|
|||||||||||||||
Automobiles - 0.5% |
||||||||||||||||
Fiat Finance & Trade Ltd. SA, Senior Notes |
6.125 | % | 7/8/14 | 146,000 | EUR | 200,424 | ||||||||||
Ford Motor Credit Co., LLC, Senior Notes |
2.375 | % | 1/16/18 | 1,300,000 | 1,316,841 | (b) | ||||||||||
|
|
|||||||||||||||
Total Automobiles |
1,517,265 | |||||||||||||||
|
|
|||||||||||||||
Diversified Consumer Services - 0.4% |
||||||||||||||||
Co-operative Group Holdings 2011 Ltd., Senior Notes |
6.875 | % | 7/8/20 | 100,000 | GBP | 171,996 | (a) | |||||||||
Co-operative Group Holdings 2011 Ltd., Senior Notes |
7.500 | % | 7/8/26 | 190,000 | GBP | 326,553 | ||||||||||
Dignity Finance PLC, Secured Bonds |
6.310 | % | 12/31/23 | 461,663 | GBP | 896,977 | (a) | |||||||||
|
|
|||||||||||||||
Total Diversified Consumer Services |
1,395,526 | |||||||||||||||
|
|
|||||||||||||||
Hotels, Restaurants & Leisure - 1.9% |
||||||||||||||||
Arcos Dorados Holdings Inc., Senior Notes |
6.625 | % | 9/27/23 | 650,000 | 632,125 | (a) | ||||||||||
Burger King Capital Holdings LLC/Burger King Capital Finance Inc., Senior Notes, Step bond |
0.000 | % | 4/15/19 | 250,000 | 226,250 | (a) | ||||||||||
Caesars Entertainment Operating Co. Inc., Senior Secured Notes |
11.250 | % | 6/1/17 | 1,000,000 | 1,020,000 | |||||||||||
Caesars Entertainment Operating Co. Inc., Senior Secured Notes |
9.000 | % | 2/15/20 | 1,470,000 | 1,433,250 | |||||||||||
MGM Resorts International, Senior Notes |
11.375 | % | 3/1/18 | 1,000,000 | 1,290,000 | |||||||||||
Mitchells & Butlers Finance PLC, Secured Notes |
5.965 | % | 12/15/23 | 468,367 | GBP | 870,973 | ||||||||||
Paris Las Vegas Holding LLC/Harrahs Las Vegas LLC/Flamingo Las Vegas Holding LLC, Senior Secured Notes |
8.000 | % | 10/1/20 | 450,000 | 469,125 | (a) | ||||||||||
|
|
|||||||||||||||
Total Hotels, Restaurants & Leisure |
5,941,723 | |||||||||||||||
|
|
|||||||||||||||
Media - 7.8% |
||||||||||||||||
CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes |
8.125 | % | 4/30/20 | 1,570,000 | 1,715,225 | |||||||||||
Cerved Group SpA, Senior Secured Notes |
6.375 | % | 1/15/20 | 100,000 | EUR | 142,962 | (a) | |||||||||
Cerved Group SpA, Senior Subordinated Notes |
8.000 | % | 1/15/21 | 140,000 | EUR | 199,713 | (a) | |||||||||
Cerved Group SpA, Senior Subordinated Notes |
8.000 | % | 1/15/21 | 100,000 | EUR | 142,652 | (a) | |||||||||
Comcast Corp., Senior Notes |
5.700 | % | 7/1/19 | 1,800,000 | 2,104,218 | (b) | ||||||||||
CSC Holdings LLC, Senior Notes |
6.750 | % | 11/15/21 | 1,000,000 | 1,095,000 | |||||||||||
Grupo Televisa SAB, Senior Bonds |
6.625 | % | 1/15/40 | 1,730,000 | 1,909,335 | (b) | ||||||||||
MDC Partners Inc., Senior Notes |
6.750 | % | 4/1/20 | 300,000 | 318,000 | (a) | ||||||||||
Nara Cable Funding Ltd., Senior Secured Notes |
8.875 | % | 12/1/18 | 1,000,000 | EUR | 1,465,362 | (a) | |||||||||
Ono Finance II PLC, Senior Bonds |
10.875 | % | 7/15/19 | 684,000 | 766,080 | (a) | ||||||||||
Pearson PLC, Senior Bonds |
7.000 | % | 10/27/14 | 1,200,000 | GBP | 2,054,503 | ||||||||||
Time Warner Cable Inc., Senior Notes |
8.750 | % | 2/14/19 | 1,500,000 | 1,805,394 | (b) | ||||||||||
TVN Finance Corp. III AB, Senior Bonds |
7.375 | % | 12/15/20 | 483,000 | EUR | 705,164 | (a) | |||||||||
UBM PLC, Notes |
5.750 | % | 11/3/20 | 1,500,000 | 1,629,504 | (a)(b) | ||||||||||
UPC Holding BV, Junior Secured Subordinated Notes |
6.375 | % | 9/15/22 | 910,000 | EUR | 1,261,068 | (a) | |||||||||
UPCB Finance II Ltd., Senior Notes |
6.375 | % | 7/1/20 | 1,000,000 | EUR | 1,444,848 | (a) | |||||||||
Videotron Ltd, Senior Notes |
7.125 | % | 1/15/20 | 2,000,000 | CAD | 1,946,128 | (a) | |||||||||
Virgin Media Secured Finance PLC, Senior Secured Notes |
7.000 | % | 1/15/18 | 900,000 | GBP | 1,537,210 | ||||||||||
Vivendi SA, Senior Notes |
4.750 | % | 7/13/21 | 1,300,000 | EUR | 2,004,089 | ||||||||||
|
|
|||||||||||||||
Total Media |
24,246,455 | |||||||||||||||
|
|
|||||||||||||||
Multiline Retail - 0.6% |
||||||||||||||||
Neiman Marcus Group LLC, Senior Secured Notes |
7.125 | % | 6/1/28 | 180,000 | 179,100 | |||||||||||
Neiman Marcus Group Ltd. Inc., Senior Notes |
8.750 | % | 10/15/21 | 1,540,000 | 1,624,700 | (a)(c) | ||||||||||
|
|
|||||||||||||||
Total Multiline Retail |
1,803,800 | |||||||||||||||
|
|
See Notes to Schedule of Investments.
1
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
Specialty Retail - 1.7% |
||||||||||||||||
AA Bond Co., Ltd., Secured Notes |
9.500 | % | 7/31/19 | 200,000 | GBP | $ | 364,041 | (a) | ||||||||
Edcon Pty Ltd., Senior Secured Notes |
9.500 | % | 3/1/18 | 300,000 | EUR | 395,506 | (a) | |||||||||
Gap Inc., Senior Notes |
5.950 | % | 4/12/21 | 2,250,000 | 2,519,926 | (b) | ||||||||||
Spencer Spirit Holdings Inc./Spencer Gifts LLC/Spirit Halloween Superstores, Senior Notes |
11.000 | % | 5/1/17 | 1,740,000 | 1,861,800 | (a) | ||||||||||
|
|
|||||||||||||||
Total Specialty Retail |
5,141,273 | |||||||||||||||
|
|
|||||||||||||||
TOTAL CONSUMER DISCRETIONARY |
41,434,304 | |||||||||||||||
|
|
|||||||||||||||
CONSUMER STAPLES - 7.3% | ||||||||||||||||
Beverages - 0.2% |
||||||||||||||||
Carolina Beverage Group LLC/Carolina Beverage Group Finance Inc., Secured Notes |
10.625 | % | 8/1/18 | 470,000 | 504,075 | (a) | ||||||||||
|
|
|||||||||||||||
Food & Staples Retailing - 1.1% |
||||||||||||||||
CVS Caremark Corp., Senior Notes |
6.125 | % | 9/15/39 | 1,000,000 | 1,180,998 | (b) | ||||||||||
Tesco PLC, Senior Notes |
6.125 | % | 2/24/22 | 1,200,000 | GBP | 2,267,377 | ||||||||||
|
|
|||||||||||||||
Total Food & Staples Retailing |
3,448,375 | |||||||||||||||
|
|
|||||||||||||||
Food Products - 1.6% |
||||||||||||||||
Boparan Holdings Ltd., Senior Notes |
9.875 | % | 4/30/18 | 700,000 | GBP | 1,249,692 | (a) | |||||||||
Chiquita Brands International Inc./Chiquita Brands LLC, Senior Secured Notes |
7.875 | % | 2/1/21 | 889,000 | 962,342 | (a) | ||||||||||
Foodcorp Ltd., Senior Secured Notes |
8.750 | % | 3/1/18 | 324,000 | EUR | 475,214 | (a) | |||||||||
Land O Lakes Capital Trust I, Junior Subordinated Bonds |
7.450 | % | 3/15/28 | 610,000 | 584,075 | (a) | ||||||||||
Simmons Foods Inc., Senior Secured Notes |
10.500 | % | 11/1/17 | 1,000,000 | 1,080,000 | (a) | ||||||||||
Wells Enterprises Inc., Senior Secured Notes |
6.750 | % | 2/1/20 | 530,000 | 543,250 | (a) | ||||||||||
|
|
|||||||||||||||
Total Food Products |
4,894,573 | |||||||||||||||
|
|
|||||||||||||||
Personal Products - 0.2% |
||||||||||||||||
Hypermarcas SA, Notes |
6.500 | % | 4/20/21 | 760,000 | 801,800 | (a) | ||||||||||
|
|
|||||||||||||||
Tobacco - 4.2% |
||||||||||||||||
Altria Group Inc., Senior Notes |
9.700 | % | 11/10/18 | 2,600,000 | 3,468,605 | (b) | ||||||||||
BAT International Finance PLC, Senior Notes |
4.875 | % | 2/24/21 | 1,450,000 | EUR | 2,319,366 | ||||||||||
Imperial Tobacco Finance PLC, Senior Notes |
8.375 | % | 2/17/16 | 1,150,000 | EUR | 1,783,043 | (a) | |||||||||
Lorillard Tobacco Co., Senior Notes |
8.125 | % | 6/23/19 | 2,305,000 | 2,873,591 | (b) | ||||||||||
Reynolds American Inc., Senior Notes |
6.750 | % | 6/15/17 | 2,340,000 | 2,715,626 | (b) | ||||||||||
|
|
|||||||||||||||
Total Tobacco |
13,160,231 | |||||||||||||||
|
|
|||||||||||||||
TOTAL CONSUMER STAPLES |
22,809,054 | |||||||||||||||
|
|
|||||||||||||||
ENERGY - 11.2% | ||||||||||||||||
Energy Equipment & Services - 0.5% |
||||||||||||||||
Parker Drilling Co., Senior Notes |
6.750 | % | 7/15/22 | 740,000 | 757,575 | (a) | ||||||||||
TMK OAO Via TMK Capital SA, Senior Notes |
6.750 | % | 4/3/20 | 820,000 | 787,266 | (a) | ||||||||||
|
|
|||||||||||||||
Total Energy Equipment & Services |
1,544,841 | |||||||||||||||
|
|
|||||||||||||||
Oil, Gas & Consumable Fuels - 10.7% |
||||||||||||||||
Alliance Oil Co., Ltd., Senior Notes |
7.000 | % | 5/4/20 | 870,000 | 850,425 | (a) | ||||||||||
Anadarko Petroleum Corp., Senior Notes |
6.450 | % | 9/15/36 | 1,370,000 | 1,606,385 | (b) | ||||||||||
Dolphin Energy Ltd., Senior Secured Bonds |
5.888 | % | 6/15/19 | 1,428,890 | 1,586,068 | (a) | ||||||||||
Ecopetrol SA, Senior Notes |
7.625 | % | 7/23/19 | 1,650,000 | 1,938,750 | (b) | ||||||||||
EDC Finance Ltd., Senior Notes |
4.875 | % | 4/17/20 | 800,000 | 760,000 | (a) | ||||||||||
Enterprise Products Operating LLC, Senior Notes |
6.500 | % | 1/31/19 | 1,290,000 | 1,543,068 | (b) | ||||||||||
Globe Luxembourg SCA, Senior Secured Notes |
9.625 | % | 5/1/18 | 1,050,000 | 1,099,444 | (a) | ||||||||||
Indo Energy Finance BV, Senior Notes |
7.000 | % | 5/7/18 | 470,000 | 470,000 | (a) | ||||||||||
KazMunayGas Finance Sub BV, Senior Notes |
11.750 | % | 1/23/15 | 675,000 | 739,463 | (a) | ||||||||||
LUKOIL International Finance BV, Bonds |
6.356 | % | 6/7/17 | 310,000 | 344,178 | (a) | ||||||||||
LUKOIL International Finance BV, Bonds |
6.656 | % | 6/7/22 | 1,860,000 | 2,018,100 | (a) | ||||||||||
Novatek Finance Ltd., Notes |
6.604 | % | 2/3/21 | 750,000 | 814,875 | (a) |
See Notes to Schedule of Investments.
2
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
Oil, Gas & Consumable Fuels - 10.7% (continued) |
||||||||||||||||
Pemex Project Funding Master Trust, Senior Bonds |
6.625 | % | 6/15/35 | 910,000 | $ | 953,945 | ||||||||||
Petrobras International Finance Co., Senior Notes |
6.750 | % | 1/27/41 | 760,000 | 686,635 | |||||||||||
Petroleum Co. of Trinidad & Tobago Ltd., Senior Notes |
9.750 | % | 8/14/19 | 2,590,000 | 3,240,737 | (a) | ||||||||||
Petronas Capital Ltd., Senior Notes |
5.250 | % | 8/12/19 | 1,780,000 | 1,990,271 | (a) | ||||||||||
Petronas Capital Ltd., Senior Notes |
5.250 | % | 8/12/19 | 700,000 | 782,691 | (a) | ||||||||||
Plains Exploration & Production Co., Senior Notes |
8.625 | % | 10/15/19 | 1,500,000 | 1,646,250 | (b) | ||||||||||
Quicksilver Resources Inc., Senior Notes |
11.000 | % | 7/1/21 | 500,000 | 542,500 | (a) | ||||||||||
Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Bonds |
6.750 | % | 9/30/19 | 2,280,000 | 2,701,800 | (a) | ||||||||||
Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Notes |
5.500 | % | 9/30/14 | 1,050,000 | 1,081,500 | (a) | ||||||||||
Rosneft Finance SA, Senior Notes |
7.875 | % | 3/13/18 | 4,150,000 | 4,756,937 | (a) | ||||||||||
Westmoreland Escrow Corp., Senior Secured Notes |
10.750 | % | 2/1/18 | 490,000 | 532,263 | (a) | ||||||||||
Williams Partners LP, Senior Notes |
5.250 | % | 3/15/20 | 610,000 | 677,403 | (b) | ||||||||||
|
|
|||||||||||||||
Total Oil, Gas & Consumable Fuels |
33,363,688 | |||||||||||||||
|
|
|||||||||||||||
TOTAL ENERGY |
34,908,529 | |||||||||||||||
|
|
|||||||||||||||
FINANCIALS - 34.1% | ||||||||||||||||
Capital Markets - 3.1% |
||||||||||||||||
Goldman Sachs Capital II, Junior Subordinated Bonds |
4.000 | % | 3/27/14 | 1,300,000 | 979,875 | (d)(e) | ||||||||||
Goldman Sachs Group Inc., Subordinated Notes |
4.750 | % | 10/12/21 | 2,700,000 | EUR | 4,013,463 | ||||||||||
Goldman Sachs Group Inc., Subordinated Notes |
5.500 | % | 10/12/21 | 600,000 | GBP | 1,070,371 | ||||||||||
Merrill Lynch & Co. Inc., Senior Notes |
7.750 | % | 4/30/18 | 800,000 | GBP | 1,593,467 | ||||||||||
UBS AG London, Senior Notes |
6.375 | % | 7/20/16 | 1,050,000 | GBP | 1,931,250 | (a) | |||||||||
|
|
|||||||||||||||
Total Capital Markets |
9,588,426 | |||||||||||||||
|
|
|||||||||||||||
Commercial Banks - 21.9% |
||||||||||||||||
Australia & New Zealand Banking Group Ltd., Subordinated Notes |
5.125 | % | 9/10/19 | 1,250,000 | EUR | 1,951,320 | (a) | |||||||||
Barclays Bank PLC, Subordinated Notes |
7.625 | % | 11/21/22 | 5,750,000 | 6,123,750 | |||||||||||
BBVA International Preferred SA Unipersonal, Junior Subordinated |
9.100 | % | 10/21/14 | 400,000 | GBP | 683,483 | (d)(e) | |||||||||
BNP Paribas Fortis SA, Junior Subordinated Notes |
4.625 | % | 10/29/49 | 1,900,000 | EUR | 2,594,561 | (a)(d)(e) | |||||||||
BNP Paribas Fortis SA, Senior Subordinated Notes |
5.757 | % | 10/4/17 | 1,200,000 | EUR | 1,854,840 | ||||||||||
Citigroup Inc., Senior Notes |
7.375 | % | 9/4/19 | 1,300,000 | EUR | 2,271,330 | ||||||||||
Commonwealth Bank of Australia, Subordinated Notes |
5.500 | % | 8/6/19 | 1,200,000 | EUR | 1,894,765 | ||||||||||
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA, Junior Subordinated Notes |
11.000 | % | 6/30/19 | 1,997,000 | 2,631,047 | (a)(b)(d)(e) | ||||||||||
Credit Agricole SA, Junior Subordinated Notes |
7.875 | % | 10/26/19 | 400,000 | EUR | 627,550 | (a)(d)(e) | |||||||||
Credit Agricole SA, Junior Subordinated Notes |
7.875 | % | 1/23/24 | 1,160,000 | 1,186,100 | (a)(d)(e) | ||||||||||
Credit Agricole SA, Subordinated Bonds |
8.125 | % | 9/19/33 | 900,000 | 976,500 | (a)(b)(d) | ||||||||||
Credit Agricole SA, Subordinated Notes |
8.375 | % | 10/13/19 | 2,530,000 | 2,871,550 | (a)(b)(d)(e) | ||||||||||
HSBC Capital Funding LP, Junior Subordinated Bonds |
5.369 | % | 3/24/14 | 1,900,000 | EUR | 2,586,771 | (d)(e) | |||||||||
ING Bank NV, Subordinated Notes |
6.875 | % | 5/29/23 | 2,850,000 | GBP | 5,256,442 | (d) | |||||||||
Intesa Sanpaolo SpA, Senior Notes |
3.625 | % | 8/12/15 | 1,000,000 | 1,028,180 | (a)(b) | ||||||||||
Intesa Sanpaolo SpA, Subordinated Notes |
8.375 | % | 10/14/19 | 450,000 | EUR | 683,416 | (a)(d)(e) | |||||||||
JPMorgan Chase & Co., Junior Subordinated Bonds |
6.000 | % | 8/1/23 | 3,900,000 | 3,773,250 | (b)(d)(e) | ||||||||||
M&T Bank Corp., Junior Subordinated Notes |
6.875 | % | 6/15/16 | 1,570,000 | 1,535,986 | (a)(b)(e) | ||||||||||
National Australia Bank Ltd., Subordinated Notes |
6.750 | % | 6/26/23 | 2,750,000 | EUR | 4,388,521 | (d) | |||||||||
National Capital Trust I, Junior Subordinated Bond |
5.620 | % | 12/17/18 | 266,000 | GBP | 458,594 | (a)(d)(e) | |||||||||
Royal Bank of Scotland Group PLC, Subordinated Notes |
5.000 | % | 10/1/14 | 4,000,000 | 4,075,680 | |||||||||||
Royal Bank of Scotland Group PLC, Subordinated Notes |
6.100 | % | 6/10/23 | 2,570,000 | 2,635,602 | (b) | ||||||||||
Royal Bank of Scotland PLC, Subordinated Notes |
13.125 | % | 3/19/22 | 1,420,000 | AUD | 1,488,823 | (d) | |||||||||
Santander Finance Preferred SA Unipersonal, Subordinated Bonds |
11.300 | % | 7/27/14 | 350,000 | GBP | 597,631 | (d)(e) |
See Notes to Schedule of Investments.
3
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
Commercial Banks - 21.9% (continued) |
||||||||||||||||
Santander Issuances SAU, Notes |
5.911 | % | 6/20/16 | 2,000,000 | $ | 2,120,158 | (a)(b) | |||||||||
Santander UK PLC, Subordinated Notes |
5.000 | % | 11/7/23 | 1,120,000 | 1,133,438 | (a) | ||||||||||
Skandinaviska Enskilda Banken AB, Subordinated Notes |
9.250 | % | 3/31/15 | 450,000 | EUR | 655,468 | (d)(e) | |||||||||
Societe Generale, Subordinated Notes |
9.375 | % | 9/4/19 | 1,550,000 | EUR | 2,519,033 | (a)(d)(e) | |||||||||
Standard Chartered Bank, Subordinated Notes |
5.875 | % | 9/26/17 | 1,250,000 | EUR | 1,915,595 | (a) | |||||||||
Standard Chartered Bank, Subordinated Notes |
7.750 | % | 4/3/18 | 1,000,000 | GBP | 1,922,696 | (a) | |||||||||
Wachovia Capital Trust III, Junior Subordinated Bonds |
5.570 | % | 3/27/14 | 3,660,000 | 3,440,400 | (d)(e) | ||||||||||
|
|
|||||||||||||||
Total Commercial Banks |
67,882,480 | |||||||||||||||
|
|
|||||||||||||||
Consumer Finance - 2.1% |
||||||||||||||||
American Express Co., Subordinated Debentures |
6.800 | % | 9/1/66 | 1,820,000 | 1,965,600 | (b)(d) | ||||||||||
SLM Corp., Medium-Term Notes |
5.050 | % | 11/14/14 | 2,400,000 | 2,472,000 | (b) | ||||||||||
SLM Corp., Medium-Term Notes, Senior Notes |
8.000 | % | 3/25/20 | 1,880,000 | 2,105,600 | (b) | ||||||||||
|
|
|||||||||||||||
Total Consumer Finance |
6,543,200 | |||||||||||||||
|
|
|||||||||||||||
Diversified Financial Services - 3.1% |
||||||||||||||||
FCE Bank PLC, Senior Notes |
5.125 | % | 11/16/15 | 900,000 | GBP | 1,570,756 | (a) | |||||||||
General Electric Capital Corp., Subordinated Bonds |
5.500 | % | 9/15/67 | 940,000 | EUR | 1,351,702 | (a)(d) | |||||||||
General Electric Capital Corp., Subordinated Debentures |
6.375 | % | 11/15/67 | 1,200,000 | 1,306,500 | (b)(d) | ||||||||||
International Lease Finance Corp., Senior Notes |
8.750 | % | 3/15/17 | 3,000,000 | 3,506,250 | (b) | ||||||||||
International Lease Finance Corp., Senior Notes |
6.250 | % | 5/15/19 | 1,130,000 | 1,231,700 | (b) | ||||||||||
MUFG Capital Finance 4 Ltd., Junior Subordinated Bonds |
5.271 | % | 1/25/17 | 550,000 | EUR | 791,855 | (d)(e) | |||||||||
|
|
|||||||||||||||
Total Diversified Financial Services |
9,758,763 | |||||||||||||||
|
|
|||||||||||||||
Insurance - 3.5% |
||||||||||||||||
American International Group Inc., Senior Notes |
8.250 | % | 8/15/18 | 1,200,000 | 1,510,253 | (b) | ||||||||||
AXA SA, Junior Subordinated Notes |
5.777 | % | 7/6/16 | 500,000 | EUR | 708,237 | (d)(e) | |||||||||
AXA SA, Junior Subordinated Notes |
6.463 | % | 12/14/18 | 2,000,000 | 2,060,000 | (a)(b)(d)(e) | ||||||||||
ELM BV, Subordinated Notes |
5.252 | % | 5/25/16 | 550,000 | EUR | 776,567 | (a)(d)(e) | |||||||||
Farmers Insurance Exchange, Subordinated Notes |
8.625 | % | 5/1/24 | 1,295,000 | 1,747,002 | (a) | ||||||||||
Generali Finance BV, Junior Subordinated Bonds |
5.317 | % | 6/16/16 | 500,000 | EUR | 682,779 | (d)(e) | |||||||||
MetLife Capital Trust IV, Junior Subordinated Notes |
7.875 | % | 12/15/37 | 300,000 | 347,250 | (a)(b) | ||||||||||
Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe), Subordinated Bonds |
5.767 | % | 6/12/17 | 500,000 | EUR | 730,847 | (a)(d)(e) | |||||||||
QBE Insurance Group Ltd., Senior Notes |
6.125 | % | 9/28/15 | 550,000 | GBP | 963,506 | (a) | |||||||||
Travelers Cos. Inc., Senior Notes |
5.350 | % | 11/1/40 | 1,150,000 | 1,287,734 | (b) | ||||||||||
|
|
|||||||||||||||
Total Insurance |
10,814,175 | |||||||||||||||
|
|
|||||||||||||||
Real Estate Management & Development - 0.4% |
||||||||||||||||
Howard Hughes Corp., Senior Notes |
6.875 | % | 10/1/21 | 1,230,000 | 1,288,425 | (a) | ||||||||||
|
|
|||||||||||||||
TOTAL FINANCIALS |
105,875,469 | |||||||||||||||
|
|
|||||||||||||||
HEALTH CARE - 3.3% | ||||||||||||||||
Health Care Equipment & Supplies - 0.4% |
||||||||||||||||
Lantheus Medical Imaging Inc., Senior Notes |
9.750 | % | 5/15/17 | 690,000 | 645,150 | |||||||||||
Ontex IV SA, Senior Notes |
9.000 | % | 4/15/19 | 430,000 | EUR | 620,537 | (a) | |||||||||
|
|
|||||||||||||||
Total Health Care Equipment & Supplies |
1,265,687 | |||||||||||||||
|
|
|||||||||||||||
Health Care Providers & Services - 1.9% |
||||||||||||||||
Crown Newco 3 PLC, Senior Subordinated Notes |
8.875 | % | 2/15/19 | 450,000 | GBP | 779,331 | (a) | |||||||||
Humana Inc., Senior Notes |
7.200 | % | 6/15/18 | 2,700,000 | 3,250,668 | (b) | ||||||||||
Labco SAS, Senior Secured Notes |
8.500 | % | 1/15/18 | 200,000 | EUR | 287,610 | (a) | |||||||||
UnitedHealth Group Inc., Senior Notes |
6.000 | % | 2/15/18 | 1,350,000 | 1,571,524 | (b) | ||||||||||
|
|
|||||||||||||||
Total Health Care Providers & Services |
5,889,133 | |||||||||||||||
|
|
See Notes to Schedule of Investments.
4
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
Pharmaceuticals - 1.0% |
||||||||||||||||
ConvaTec Healthcare E SA, Senior Notes |
10.875 | % | 12/15/18 | 1,070,000 | EUR | $ | 1,623,497 | (a) | ||||||||
Mallinckrodt International Finance SA, Senior Notes |
4.750 | % | 4/15/23 | 1,500,000 | 1,436,164 | (a)(b) | ||||||||||
|
|
|||||||||||||||
Total Pharmaceuticals |
3,059,661 | |||||||||||||||
|
|
|||||||||||||||
TOTAL HEALTH CARE |
10,214,481 | |||||||||||||||
|
|
|||||||||||||||
INDUSTRIALS - 9.5% | ||||||||||||||||
Aerospace & Defense - 1.0% |
||||||||||||||||
Bombardier Inc., Senior Notes |
6.125 | % | 5/15/21 | 1,200,000 | EUR | 1,735,776 | (a) | |||||||||
Erickson Air-Crane Inc., Senior Secured Notes |
8.250 | % | 5/1/20 | 1,189,000 | 1,239,533 | (a) | ||||||||||
|
|
|||||||||||||||
Total Aerospace & Defense |
2,975,309 | |||||||||||||||
|
|
|||||||||||||||
Airlines - 3.6% |
||||||||||||||||
Air Canada, Pass-Through Trust, Secured Notes |
6.625 | % | 5/15/18 | 330,000 | 335,181 | (a) | ||||||||||
Air Canada, Senior Secured Notes |
8.750 | % | 4/1/20 | 880,000 | 954,800 | (a) | ||||||||||
DAE Aviation Holdings Inc., Senior Notes |
11.250 | % | 8/1/15 | 1,385,000 | 1,385,865 | (a) | ||||||||||
Heathrow Finance PLC, Senior Secured Notes |
7.125 | % | 3/1/17 | 950,000 | GBP | 1,714,270 | (a) | |||||||||
United Airlines Inc., Pass-Through Certificates, Secured Notes |
9.250 | % | 5/10/17 | 2,438,487 | 2,731,106 | |||||||||||
United Airlines Inc., Pass-Through Certificates, Senior Secured Notes |
10.400 | % | 11/1/16 | 50,880 | 57,749 | |||||||||||
United Airlines Inc., Senior Secured Notes |
6.750 | % | 9/15/15 | 3,800,000 | 3,923,500 | (a) | ||||||||||
|
|
|||||||||||||||
Total Airlines |
11,102,471 | |||||||||||||||
|
|
|||||||||||||||
Building Products - 0.5% |
||||||||||||||||
Andrade Gutierrez International SA, Senior Notes |
4.000 | % | 4/30/18 | 870,000 | 828,675 | (a) | ||||||||||
Spie BondCo 3 SCA, Secured Notes |
11.000 | % | 8/15/19 | 454,000 | EUR | 699,564 | (a) | |||||||||
|
|
|||||||||||||||
Total Building Products |
1,528,239 | |||||||||||||||
|
|
|||||||||||||||
Commercial Services & Supplies - 1.4% |
||||||||||||||||
Garda World Security Corp., Senior Notes |
7.250 | % | 11/15/21 | 220,000 | 226,875 | (a) | ||||||||||
Monitronics International Inc., Senior Notes |
9.125 | % | 4/1/20 | 1,570,000 | 1,679,900 | |||||||||||
Republic Services Inc., Senior Notes |
5.250 | % | 11/15/21 | 1,450,000 | 1,622,363 | (b) | ||||||||||
Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes |
7.750 | % | 4/15/20 | 500,000 | 550,000 | (a) | ||||||||||
Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes |
5.250 | % | 4/15/21 | 420,000 | 409,500 | (a) | ||||||||||
|
|
|||||||||||||||
Total Commercial Services & Supplies |
4,488,638 | |||||||||||||||
|
|
|||||||||||||||
Construction & Engineering - 0.5% |
||||||||||||||||
Astaldi SpA, Senior Bonds |
7.125 | % | 12/1/20 | 410,000 | EUR | 580,615 | (a) | |||||||||
Michael Baker International LLC/CDL Acquisition Co. Inc., Senior Secured Notes |
8.250 | % | 10/15/18 | 920,000 | 959,100 | (a) | ||||||||||
|
|
|||||||||||||||
Total Construction & Engineering |
1,539,715 | |||||||||||||||
|
|
|||||||||||||||
Electrical Equipment - 0.1% |
||||||||||||||||
Trionista Holdco GmbH, Senior Secured Notes |
5.000 | % | 4/30/20 | 100,000 | EUR | 139,085 | (a) | |||||||||
Trionista TopCo GmbH, Senior Subordinated Notes |
6.875 | % | 4/30/21 | 100,000 | EUR | 145,558 | (a) | |||||||||
|
|
|||||||||||||||
Total Electrical Equipment |
284,643 | |||||||||||||||
|
|
|||||||||||||||
Machinery - 0.7% |
||||||||||||||||
KION Finance SA, Senior Secured Notes |
6.750 | % | 2/15/20 | 1,195,000 | EUR | 1,762,857 | (a) | |||||||||
KraussMaffei Group GmbH, Senior Secured Notes |
8.750 | % | 12/15/20 | 280,000 | EUR | 422,385 | (a) | |||||||||
|
|
|||||||||||||||
Total Machinery |
2,185,242 | |||||||||||||||
|
|
|||||||||||||||
Marine - 0.4% |
||||||||||||||||
Horizon Lines LLC, Secured Notes |
13.000 | % | 10/15/16 | 321,753 | 287,969 | (c) | ||||||||||
Horizon Lines LLC, Senior Secured Notes |
11.000 | % | 10/15/16 | 176,000 | 177,980 | |||||||||||
Ultrapetrol Bahamas Ltd., Senior Secured Notes |
8.875 | % | 6/15/21 | 630,000 | 680,400 | |||||||||||
|
|
|||||||||||||||
Total Marine |
1,146,349 | |||||||||||||||
|
|
|||||||||||||||
Road & Rail - 0.6% |
||||||||||||||||
Gategroup Finance Luxembourg SA, Senior Notes |
6.750 | % | 3/1/19 | 150,000 | EUR | 215,961 | (a) | |||||||||
Jack Cooper Holdings Corp., Senior Secured Notes |
9.250 | % | 6/1/20 | 1,630,000 | 1,786,887 | (a) | ||||||||||
|
|
|||||||||||||||
Total Road & Rail |
2,002,848 | |||||||||||||||
|
|
|||||||||||||||
Transportation - 0.7% |
||||||||||||||||
CMA CGM, Senior Notes |
8.500 | % | 4/15/17 | 2,100,000 | 2,079,000 | (a) | ||||||||||
|
|
|||||||||||||||
TOTAL INDUSTRIALS |
29,332,454 | |||||||||||||||
|
|
See Notes to Schedule of Investments.
5
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
INFORMATION TECHNOLOGY - 1.4% | ||||||||||||||||
Computers & Peripherals - 0.7% |
||||||||||||||||
Hewlett-Packard Co., Senior Notes |
4.650 | % | 12/9/21 | 2,000,000 | $ | 2,090,702 | (b) | |||||||||
|
|
|||||||||||||||
Electronic Equipment, Instruments & Components - 0.1% |
||||||||||||||||
Techem GmbH, Senior Secured Notes |
6.125 | % | 10/1/19 | 250,000 | EUR | 367,082 | (a) | |||||||||
|
|
|||||||||||||||
Internet Software & Services - 0.3% |
||||||||||||||||
Ancestry.com Inc., Senior Notes |
9.625 | % | 10/15/18 | 780,000 | 817,050 | (a)(c) | ||||||||||
|
|
|||||||||||||||
Software - 0.3% |
||||||||||||||||
Oberthur Technologies Holding SAS, Senior Secured Notes |
9.250 | % | 4/30/20 | 670,000 | EUR | 979,082 | (a) | |||||||||
|
|
|||||||||||||||
TOTAL INFORMATION TECHNOLOGY |
4,253,916 | |||||||||||||||
|
|
|||||||||||||||
MATERIALS - 10.2% | ||||||||||||||||
Chemicals - 0.7% |
||||||||||||||||
INEOS Group Holdings SA, Senior Notes |
7.875 | % | 2/15/16 | 375,901 | EUR | 508,538 | (a) | |||||||||
Kerling PLC, Senior Secured Notes |
10.625 | % | 2/1/17 | 606,000 | EUR | 869,416 | (a) | |||||||||
Styrolution GmbH, Senior Secured Notes |
7.625 | % | 5/15/16 | 554,000 | EUR | 778,935 | (a) | |||||||||
|
|
|||||||||||||||
Total Chemicals |
2,156,889 | |||||||||||||||
|
|
|||||||||||||||
Construction Materials - 1.1% |
||||||||||||||||
Cemex SAB de CV, Senior Secured Notes |
9.000 | % | 1/11/18 | 610,000 | 661,850 | (a) | ||||||||||
HeidelbergCement AG, Senior Notes |
8.500 | % | 10/31/19 | 610,000 | EUR | 1,041,917 | (a) | |||||||||
Lafarge SA, Senior Notes |
6.625 | % | 11/29/18 | 1,150,000 | EUR | 1,783,413 | (a) | |||||||||
|
|
|||||||||||||||
Total Construction Materials |
3,487,180 | |||||||||||||||
|
|
|||||||||||||||
Containers & Packaging - 0.8% |
||||||||||||||||
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes |
6.250 | % | 1/31/19 | 270,000 | 273,712 | (a) | ||||||||||
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes |
7.000 | % | 11/15/20 | 500,000 | 508,750 | (a) | ||||||||||
Ardagh Packaging Finance PLC/Ardagh MP Holdings USA Inc., Senior Notes |
6.750 | % | 1/31/21 | 870,000 | 878,700 | (a) | ||||||||||
Suzano Trading Ltd., Senior Notes |
5.875 | % | 1/23/21 | 970,000 | 963,210 | (a) | ||||||||||
|
|
|||||||||||||||
Total Containers & Packaging |
2,624,372 | |||||||||||||||
|
|
|||||||||||||||
Metals & Mining - 6.3% |
||||||||||||||||
AngloGold Ashanti Holdings PLC, Senior Notes |
8.500 | % | 7/30/20 | 1,008,000 | 1,060,920 | |||||||||||
Barrick Gold Corp., Senior Notes |
6.950 | % | 4/1/19 | 500,000 | 584,249 | (b) | ||||||||||
Cliffs Natural Resources Inc., Senior Notes |
3.950 | % | 1/15/18 | 2,070,000 | 2,061,614 | (b) | ||||||||||
CSN Resources SA, Senior Bonds |
6.500 | % | 7/21/20 | 1,100,000 | 1,086,250 | (a) | ||||||||||
Evraz Group SA, Notes |
9.500 | % | 4/24/18 | 450,000 | 486,563 | (a) | ||||||||||
Evraz Group SA, Senior Notes |
6.500 | % | 4/22/20 | 984,000 | 901,590 | (a) | ||||||||||
Evraz Group SA, Senior Notes |
6.500 | % | 4/22/20 | 340,000 | 311,525 | (a) | ||||||||||
FMG Resources (August 2006) Pty Ltd., Senior Notes |
6.875 | % | 4/1/22 | 1,500,000 | 1,625,625 | (a) | ||||||||||
Gerdau Holdings Inc., Senior Notes |
7.000 | % | 1/20/20 | 1,380,000 | 1,487,640 | (a) | ||||||||||
New World Resources NV, Senior Notes |
7.875 | % | 1/15/21 | 600,000 | EUR | 151,437 | (a) | |||||||||
Rio Tinto Finance USA PLC, Senior Notes |
2.250 | % | 12/14/18 | 1,300,000 | 1,307,648 | (b) | ||||||||||
Southern Copper Corp., Senior Notes |
5.250 | % | 11/8/42 | 1,850,000 | 1,498,526 | |||||||||||
St. Barbara Ltd., Senior Secured Notes |
8.875 | % | 4/15/18 | 800,000 | 668,000 | (a) | ||||||||||
Vale Overseas Ltd., Notes |
6.250 | % | 1/23/17 | 670,000 | 746,380 | |||||||||||
Vale Overseas Ltd., Notes |
8.250 | % | 1/17/34 | 2,146,000 | 2,516,318 | |||||||||||
Vale Overseas Ltd., Notes |
6.875 | % | 11/21/36 | 340,000 | 348,394 | |||||||||||
Vedanta Resources PLC, Senior Notes |
9.500 | % | 7/18/18 | 260,000 | 287,300 | (a) | ||||||||||
Vedanta Resources PLC, Senior Notes |
6.000 | % | 1/31/19 | 990,000 | 942,975 | (a) | ||||||||||
Xstrata Finance Canada Ltd., Senior Notes |
5.250 | % | 6/13/17 | 950,000 | EUR | 1,432,251 | ||||||||||
|
|
|||||||||||||||
Total Metals & Mining |
19,505,205 | |||||||||||||||
|
|
See Notes to Schedule of Investments.
6
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
Paper & Forest Products - 1.3% |
||||||||||||||||
Celulosa Arauco y Constitucion SA, Senior Notes |
7.250 | % | 7/29/19 | 1,220,000 | $ | 1,416,554 | (b) | |||||||||
Resolute Forest Products Inc., Senior Notes |
5.875 | % | 5/15/23 | 690,000 | 662,400 | (a) | ||||||||||
UPM-Kymmene OYJ, Senior Notes |
6.625 | % | 1/23/17 | 1,000,000 | GBP | 1,799,925 | ||||||||||
|
|
|||||||||||||||
Total Paper & Forest Products |
3,878,879 | |||||||||||||||
|
|
|||||||||||||||
TOTAL MATERIALS |
31,652,525 | |||||||||||||||
|
|
|||||||||||||||
TELECOMMUNICATION SERVICES - 14.2% | ||||||||||||||||
Diversified Telecommunication Services - 11.4% |
||||||||||||||||
Axtel SAB de CV, Senior Secured Notes, Step bond |
8.000 | % | 1/31/20 | 316,000 | 302,570 | (a) | ||||||||||
British Telecommunications PLC, Senior Bonds |
8.500 | % | 12/7/16 | 1,200,000 | GBP | 2,331,737 | (a) | |||||||||
CenturyLink Inc., Senior Notes |
5.800 | % | 3/15/22 | 500,000 | 495,000 | |||||||||||
Intelsat Jackson Holdings SA, Senior Notes |
5.500 | % | 8/1/23 | 4,530,000 | 4,343,137 | (a) | ||||||||||
Level 3 Financing Inc., Senior Notes |
7.000 | % | 6/1/20 | 375,000 | 400,313 | |||||||||||
Level 3 Financing Inc., Senior Notes |
8.625 | % | 7/15/20 | 625,000 | 701,563 | |||||||||||
Qtel International Finance Ltd., Senior Notes |
4.750 | % | 2/16/21 | 650,000 | 686,725 | (a) | ||||||||||
Qwest Corp., Senior Notes |
6.750 | % | 12/1/21 | 2,500,000 | 2,795,450 | (b) | ||||||||||
Sunrise Communications Holdings SA, Senior Secured Notes |
8.500 | % | 12/31/18 | 266,000 | EUR | 389,383 | (a) | |||||||||
Sunrise Communications International SA, Senior Secured Notes |
7.000 | % | 12/31/17 | 224,000 | EUR | 319,858 | (a) | |||||||||
Telecom Italia SpA, Senior Notes |
5.375 | % | 1/29/19 | 1,400,000 | EUR | 2,023,222 | ||||||||||
Telefonica Emisiones SAU, Senior Notes |
5.134 | % | 4/27/20 | 2,000,000 | 2,163,124 | (b) | ||||||||||
Telefonica Emisiones SAU, Senior Notes |
7.045 | % | 6/20/36 | 2,000,000 | 2,292,060 | (b) | ||||||||||
TW Telecom Holdings Inc., Senior Notes |
6.375 | % | 9/1/23 | 280,000 | 292,600 | |||||||||||
UBS Luxembourg SA for OJSC Vimpel Communications, Loan Participation Notes |
8.250 | % | 5/23/16 | 1,150,000 | 1,265,000 | (a) | ||||||||||
Unitymedia GmbH, Senior Subordinated Notes |
9.625 | % | 12/1/19 | 640,000 | EUR | 951,901 | (a) | |||||||||
Unitymedia KabelBW GmbH, Senior Secured Notes |
9.500 | % | 3/15/21 | 300,000 | EUR | 470,359 | (a) | |||||||||
Verizon Communications Inc., Senior Notes |
5.150 | % | 9/15/23 | 5,280,000 | 5,751,219 | (b) | ||||||||||
Vimpel Communications, Notes |
6.493 | % | 2/2/16 | 200,000 | 213,000 | (a) | ||||||||||
Wind Acquisition Finance SA, Senior Secured Notes |
7.250 | % | 2/15/18 | 2,010,000 | 2,115,525 | (a) | ||||||||||
Wind Acquisition Holdings Finance SpA, Senior Notes |
12.250 | % | 7/15/17 | 2,436,631 | EUR | 3,401,303 | (a)(c) | |||||||||
Windstream Corp., Senior Notes |
7.500 | % | 4/1/23 | 1,800,000 | 1,809,000 | |||||||||||
|
|
|||||||||||||||
Total Diversified Telecommunication Services |
35,514,049 | |||||||||||||||
|
|
|||||||||||||||
Wireless Telecommunication Services - 2.8% |
||||||||||||||||
America Movil SAB de CV, Senior Notes |
5.625 | % | 11/15/17 | 2,050,000 | 2,326,750 | (b) | ||||||||||
America Movil SAB de CV, Senior Notes |
6.125 | % | 3/30/40 | 650,000 | 695,220 | (b) | ||||||||||
Matterhorn Midco & Cy SCA, Senior Notes |
7.750 | % | 2/15/20 | 560,000 | EUR | 791,865 | (a) | |||||||||
Phones4u Finance PLC, Senior Secured Notes |
9.500 | % | 4/1/18 | 500,000 | GBP | 862,019 | (a) | |||||||||
Sprint Capital Corp., Senior Notes |
6.875 | % | 11/15/28 | 750,000 | 720,000 | |||||||||||
Sprint Capital Corp., Senior Notes |
8.750 | % | 3/15/32 | 2,000,000 | 2,175,000 | |||||||||||
Sprint Corp., Senior Notes |
7.125 | % | 6/15/24 | 980,000 | 987,350 | (a) | ||||||||||
|
|
|||||||||||||||
Total Wireless Telecommunication Services |
8,558,204 | |||||||||||||||
|
|
|||||||||||||||
TOTAL TELECOMMUNICATION SERVICES |
44,072,253 | |||||||||||||||
|
|
|||||||||||||||
UTILITIES - 7.3% | ||||||||||||||||
Electric Utilities - 2.4% |
||||||||||||||||
Centrais Eletricas Brasileiras SA, Senior Notes |
6.875 | % | 7/30/19 | 1,680,000 | 1,801,800 | (a) | ||||||||||
ENW Capital Finance PLC, Notes |
6.750 | % | 6/20/15 | 600,000 | GBP | 1,056,151 | (a) | |||||||||
FirstEnergy Corp., Notes |
7.375 | % | 11/15/31 | 2,250,000 | 2,571,919 | |||||||||||
Scottish & Southern Energy PLC, Senior Notes |
5.750 | % | 2/5/14 | 1,200,000 | GBP | 1,972,679 | (a) | |||||||||
|
|
|||||||||||||||
Total Electric Utilities |
7,402,549 | |||||||||||||||
|
|
|||||||||||||||
Gas Utilities - 0.4% |
||||||||||||||||
Wales & West Utilities Finance PLC, Senior Secured Bonds |
5.125 | % | 12/2/16 | 650,000 | GBP | 1,169,768 | (a) | |||||||||
|
|
See Notes to Schedule of Investments.
7
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
Independent Power Producers & Energy Traders - 2.6% |
||||||||||||||||
Calpine Corp., Senior Secured Notes |
7.500 | % | 2/15/21 | 800,000 | $ | 878,000 | (a) | |||||||||
Calpine Corp., Senior Secured Notes |
7.875 | % | 1/15/23 | 1,776,000 | 1,966,920 | (a) | ||||||||||
Colbun SA, Senior Notes |
6.000 | % | 1/21/20 | 1,370,000 | 1,499,150 | (a) | ||||||||||
Energy Future Intermediate Holding Co. LLC/EFIH Finance Inc., Senior Secured Notes |
10.000 | % | 12/1/20 | 1,702,000 | 1,808,375 | |||||||||||
Mirant Mid Atlantic LLC, Pass-Through Certificates |
10.060 | % | 12/30/28 | 1,948,589 | 2,016,789 | |||||||||||
|
|
|||||||||||||||
Total Independent Power Producers & Energy Traders |
8,169,234 | |||||||||||||||
|
|
|||||||||||||||
Multi-Utilities - 1.9% |
||||||||||||||||
Centrica PLC, Senior Notes |
6.375 | % | 3/10/22 | 1,200,000 | GBP | 2,364,196 | (a) | |||||||||
Empresas Publicas de Medellin ESP, Senior Notes |
7.625 | % | 7/29/19 | 1,210,000 | 1,420,298 | (a) | ||||||||||
Veolia Environnement, Senior Notes |
6.750 | % | 4/24/19 | 1,200,000 | EUR | 2,027,895 | ||||||||||
|
|
|||||||||||||||
Total Multi-Utilities |
5,812,389 | |||||||||||||||
|
|
|||||||||||||||
TOTAL UTILITIES |
22,553,940 | |||||||||||||||
|
|
|||||||||||||||
TOTAL CORPORATE BONDS & NOTES (Cost - $325,108,110) |
347,106,925 | |||||||||||||||
|
|
|||||||||||||||
ASSET-BACKED SECURITIES - 2.3% | ||||||||||||||||
Argent Securities Inc., 2004-W10 A2 |
0.938 | % | 10/25/34 | 816,891 | 786,657 | (d) | ||||||||||
Asset Backed Funding Certificates, 2003-WMC1 M1 |
1.133 | % | 6/25/33 | 1,696,165 | 1,638,486 | (d) | ||||||||||
Countrywide Home Equity Loan Trust, 2006-HW 2A1B |
0.310 | % | 11/15/36 | 664,689 | 564,436 | (d) | ||||||||||
Home Equity Asset Trust, 2004-8 M1 |
1.028 | % | 3/25/35 | 641,516 | 612,306 | (d) | ||||||||||
Park Place Securities Inc., 2004-WCW1 M2 |
0.838 | % | 9/25/34 | 1,328,700 | 1,315,226 | (d) | ||||||||||
Residential Asset Mortgage Products Inc., 2003-RZ5 A7 |
4.970 | % | 9/25/33 | 895,719 | 930,112 | |||||||||||
Residential Asset Securities Corp., 2003-KS10 AI6 |
4.540 | % | 12/25/33 | 173,263 | 179,498 | (d) | ||||||||||
Soundview Home Equity Loan Trust, 2005-3 M2 |
0.938 | % | 6/25/35 | 174,561 | 172,901 | (d) | ||||||||||
Structured Asset Securities Corp., 2002-HF1 A |
0.738 | % | 1/25/33 | 1,022,767 | 943,608 | (d) | ||||||||||
|
|
|||||||||||||||
TOTAL ASSET-BACKED SECURITIES (Cost - $6,535,398) |
7,143,230 | |||||||||||||||
|
|
|||||||||||||||
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.4% | ||||||||||||||||
ARM Trust, 2004-5 4A1 |
4.994 | % | 4/25/35 | 475,371 | 476,094 | (d) | ||||||||||
Bear Stearns ARM Trust, 2005-12 24A1 |
5.533 | % | 2/25/36 | 61,566 | 58,476 | (d) | ||||||||||
Credit Suisse Mortgage Capital Certificates, 2009-3R 25A1 |
2.787 | % | 7/27/36 | 263,774 | 266,268 | (a)(d) | ||||||||||
Greenwich Capital Commercial Funding Corp., 2006-GG7 AM |
5.820 | % | 7/10/38 | 1,500,000 | 1,642,757 | (d) | ||||||||||
GSMPS Mortgage Loan Trust, 2006-RP1 1A2 |
7.500 | % | 1/25/36 | 291,553 | 294,735 | (a) | ||||||||||
HarborView Mortgage Loan Trust, 2004-10 4A |
2.555 | % | 1/19/35 | 337,238 | 341,456 | (d) | ||||||||||
JPMorgan Mortgage Trust, 2005-A5 1A2 |
2.865 | % | 8/25/35 | 1,369,010 | 1,382,720 | (d) | ||||||||||
Residential Asset Mortgage Products Inc., 2003-SL1 M1 |
7.369 | % | 4/25/31 | 1,615,867 | 1,595,181 | (d) | ||||||||||
Sequoia Mortgage Trust, 2003-03 A1 |
0.817 | % | 7/20/33 | 648,286 | 635,313 | (d) | ||||||||||
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2007-0A5 1A |
0.890 | % | 6/25/47 | 853,203 | 763,476 | (d) | ||||||||||
Washington Mutual Inc., Mortgage Pass-Through Certificates, 2007-HY4 4A1 |
2.236 | % | 9/25/36 | 93,687 | 80,327 | (d) | ||||||||||
|
|
|||||||||||||||
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (Cost - $6,652,911) |
7,536,803 | |||||||||||||||
|
|
|||||||||||||||
CONVERTIBLE BONDS & NOTES - 0.0% | ||||||||||||||||
TELECOMMUNICATION SERVICES - 0.0% | ||||||||||||||||
Diversified Telecommunication Services - 0.0% |
||||||||||||||||
Axtel SAB de CV, Senior Secured Notes, Step bond (Cost - $51,609) |
8.000 | % | 1/31/20 | 360,800 | MXN | 38,173 | (a) | |||||||||
|
|
See Notes to Schedule of Investments.
8
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
SECURITY |
RATE | MATURITY DATE |
FACE AMOUNT |
VALUE | ||||||||||||
SENIOR LOANS - 0.0% | ||||||||||||||||
ENERGY - 0.0% | ||||||||||||||||
Energy Equipment & Services - 0.0% |
||||||||||||||||
FTS International Inc., Term Loan B (Cost - $62,679) |
8.500 | % | 5/6/16 | 70,000 | $ | 71,000 | (f) | |||||||||
|
|
|||||||||||||||
SOVEREIGN BONDS - 5.8% | ||||||||||||||||
Brazil - 1.4% |
||||||||||||||||
Banco Nacional de Desenvolvimento Economico e Social, Senior Notes |
3.375 | % | 9/26/16 | 560,000 | 569,100 | (a) | ||||||||||
Federative Republic of Brazil, Notes |
10.000 | % | 1/1/17 | 9,398,000 | BRL | 3,637,237 | ||||||||||
Federative Republic of Brazil, Notes |
10.000 | % | 1/1/21 | 687,000 | BRL | 245,416 | ||||||||||
|
|
|||||||||||||||
Total Brazil |
4,451,753 | |||||||||||||||
|
|
|||||||||||||||
Chile - 0.5% |
||||||||||||||||
Banco del Estado de Chile, Senior Notes |
4.125 | % | 10/7/20 | 1,540,000 | 1,573,555 | (a) | ||||||||||
|
|
|||||||||||||||
Peru - 0.2% |
||||||||||||||||
Republic of Peru, Senior Bonds |
7.840 | % | 8/12/20 | 1,249,000 | PEN | 493,583 | ||||||||||
|
|
|||||||||||||||
Russia - 1.1% |
||||||||||||||||
RSHB Capital, Loan Participation Notes, Senior Notes |
6.299 | % | 5/15/17 | 3,070,000 | 3,250,363 | (a) | ||||||||||
|
|
|||||||||||||||
Turkey - 1.0% |
||||||||||||||||
Republic of Turkey, Senior Bonds |
5.750 | % | 3/22/24 | 3,000,000 | 2,943,750 | |||||||||||
|
|
|||||||||||||||
United Arab Emirates - 0.6% |
||||||||||||||||
MDC-GMTN B.V., Senior Notes |
5.750 | % | 5/6/14 | 430,000 | 434,865 | (a) | ||||||||||
MDC-GMTN B.V., Senior Notes |
7.625 | % | 5/6/19 | 1,250,000 | 1,543,909 | (a) | ||||||||||
|
|
|||||||||||||||
Total United Arab Emirates |
1,978,774 | |||||||||||||||
|
|
|||||||||||||||
United Kingdom - 0.6% |
||||||||||||||||
United Kingdom Treasury Gilt, Bonds |
4.500 | % | 3/7/19 | 1,019,000 | GBP | 1,895,195 | ||||||||||
|
|
|||||||||||||||
Venezuela - 0.4% |
||||||||||||||||
Bolivarian Republic of Venezuela, Senior Bonds |
9.250 | % | 9/15/27 | 1,860,000 | 1,236,900 | |||||||||||
|
|
|||||||||||||||
TOTAL SOVEREIGN BONDS (Cost - $18,750,348) |
17,823,873 | |||||||||||||||
|
|
|||||||||||||||
SHARES | ||||||||||||||||
COMMON STOCKS - 0.8% | ||||||||||||||||
FINANCIALS - 0.8% | ||||||||||||||||
Commercial Banks - 0.8% |
||||||||||||||||
Citigroup Inc. |
48,867 | 2,317,762 | ||||||||||||||
|
|
|||||||||||||||
INDUSTRIALS - 0.0% | ||||||||||||||||
Marine - 0.0% |
||||||||||||||||
Horizon Lines Inc., Class A Shares |
139,004 | 97,303 | * | |||||||||||||
|
|
|||||||||||||||
TOTAL COMMON STOCKS (Cost - $2,611,703) |
2,415,065 | |||||||||||||||
|
|
|||||||||||||||
PREFERRED STOCKS - 0.0% | ||||||||||||||||
FINANCIALS - 0.0% | ||||||||||||||||
Diversified Financial Services - 0.0% |
||||||||||||||||
Citigroup Capital XIII (Cost - $80,711) |
7.875 | % | 3,050 | 82,746 | (d) | |||||||||||
|
|
|||||||||||||||
TOTAL INVESTMENTS - 123.1% (Cost - $359,853,469#) |
382,217,815 | |||||||||||||||
Liabilities in Excess of Other Assets - (23.1)% |
(71,649,161 | ) | ||||||||||||||
|
|
|||||||||||||||
TOTAL NET ASSETS - 100.0% |
$ | 310,568,654 | ||||||||||||||
|
|
| Face amount denominated in U.S. dollars, unless otherwise noted. |
See Notes to Schedule of Investments.
9
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
Schedule of investments (unaudited) (contd) | January 31, 2014 |
* | Non-income producing security. |
(a) | Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted. |
(b) | All or a portion of this security is held by the counterparty as collateral for open reverse repurchase agreements. |
(c) | Payment-in-kind security for which the issuer has the option at each interest payment date of making interest payments in cash or additional debt securities. |
(d) | Variable rate security. Interest rate disclosed is as of the most recent information available. |
(e) | Security has no maturity date. The date shown represents the next call date. |
(f) | Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan. |
# | Aggregate cost for federal income tax purposes is substantially the same. |
Abbreviations used in this schedule:
ARM | Adjustable Rate Mortgage | |
AUD | Australian Dollar | |
BRL | Brazilian Real | |
CAD | Canadian Dollar | |
EUR | Euro | |
GBP | British Pound | |
MXN | Mexican Peso | |
OJSC | Open Joint Stock Company | |
PEN | Peruvian Nuevo Sol |
Summary of Investments by Country**
United States |
39.7 | % | ||
United Kingdom |
14.7 | |||
France |
5.6 | |||
Russia |
4.4 | |||
Brazil |
4.1 | |||
Australia |
3.1 | |||
Italy |
2.9 | |||
Netherlands |
2.8 | |||
Spain |
2.6 | |||
Mexico |
2.2 | |||
Luxembourg |
2.1 | |||
Canada |
1.9 | |||
Germany |
1.8 | |||
Belgium |
1.3 | |||
Chile |
1.2 | |||
Qatar |
1.2 | |||
Switzerland |
1.0 | |||
United Arab Emirates |
0.9 | |||
Colombia |
0.9 | |||
Trinidad and Tobago |
0.9 | |||
Turkey |
0.8 | |||
Malaysia |
0.7 | |||
South Africa |
0.5 | |||
Finland |
0.5 | |||
Ireland |
0.4 | |||
Venezuela |
0.3 | |||
India |
0.3 | |||
Japan |
0.2 | |||
Kazakhstan |
0.2 | |||
Poland |
0.2 | |||
Sweden |
0.2 | |||
Argentina |
0.2 | |||
Peru |
0.1 | |||
Indonesia |
0.1 | |||
Czech Republic |
0.0 | | ||
|
||||
100.0 | % | |||
|
** | As a percentage of total investments. Please note that the Fund holdings are as of January 31, 2014 and are subject to change. |
| Represents less than 0.1%. |
See Notes to Schedule of Investments.
10
Notes to Schedule of Investments (unaudited)
1. Organization and significant accounting policies
Western Asset Global Corporate Defined Opportunity Fund Inc. (the Fund) was incorporated in Maryland on September 17, 2009 and is registered as a non-diversified, limited-term, closed-end management investment company under the Investment Company Act of 1940, as amended (the 1940 Act). The Funds primary investment objective is to provide current income and then to liquidate and distribute substantially all of the Funds net assets to stockholders on or about December 2, 2024. As a secondary investment objective, the Fund will seek capital appreciation. The Fund seeks to achieve its investment objectives by investing 80% of its managed assets in a portfolio of U.S. and foreign corporate fixed-income securities of varying maturities.
The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (GAAP).
(a) Investment valuation. The valuations for fixed income securities (which may include, but are not limited to, corporate, government, municipal, mortgage-backed, collateralized mortgage obligations and asset-backed securities) and certain derivative instruments are typically the prices supplied by independent third party pricing services, which may use market prices or broker/dealer quotations or a variety of valuation techniques and methodologies. The independent third party pricing services use inputs that are observable such as issuer details, interest rates, yield curves, prepayment speeds, credit risks/spreads, default rates and quoted prices for similar securities. Short-term fixed income securities that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investments fair value. Equity securities for which market quotations are available are valued at the last reported sales price or official closing price on the primary market or exchange on which they trade. When the Fund holds securities or other assets that are denominated in a foreign currency, the Fund will normally use the currency exchange rates as of 4:00 p.m. (Eastern Time). If independent third party pricing services are unable to supply prices for a portfolio investment, or if the prices supplied are deemed by the manager to be unreliable, the market price may be determined by the manager using quotations from one or more broker/dealers or at the transaction price if the security has recently been purchased and no value has yet been obtained from a pricing service or pricing broker. When reliable prices are not readily available, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded, but before the Fund calculates its net asset value, the Fund values these securities as determined in accordance with procedures approved by the Funds Board of Directors.
The Board of Directors is responsible for the valuation process and has delegated the supervision of the daily valuation process to the Legg Mason North American Fund Valuation Committee (the Valuation Committee). The Valuation Committee, pursuant to the policies adopted by the Board of Directors, is responsible for making fair value determinations, evaluating the effectiveness of the Funds pricing policies, and reporting to the Board of Directors. When determining the reliability of third party pricing information for investments owned by the Fund, the Valuation Committee, among other things, conducts due diligence reviews of pricing vendors, monitors the daily change in prices and reviews transactions among market participants.
The Valuation Committee will consider pricing methodologies it deems relevant and appropriate when making fair value determinations. Examples of possible methodologies include, but are not limited to, multiple of earnings; discount from market of a similar freely traded security; discounted cash-flow analysis; book value or a multiple thereof; risk premium/yield analysis; yield to maturity; and/or fundamental investment analysis. The Valuation Committee will also consider factors it deems relevant and appropriate in light of the facts and circumstances. Examples of possible factors include, but are not limited to, the type of security; the issuers financial statements; the purchase price of the security; the discount from market value of unrestricted securities of the same class at the time of purchase; analysts research and observations from financial institutions; information regarding any transactions or offers with respect to the security; the existence of merger proposals or tender offers affecting the security; the price and extent of public trading in similar securities of the issuer or comparable companies; and the existence of a shelf registration for restricted securities.
For each portfolio security that has been fair valued pursuant to the policies adopted by the Board of Directors, the fair value price is compared against the last available and next available market quotations. The Valuation Committee reviews the results of such back testing monthly and fair valuation occurrences are reported to the Board of Directors quarterly.
The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.
11
Notes to Schedule of Investments (unaudited) (continued)
GAAP establishes a disclosure hierarchy that categorizes the inputs to valuation techniques used to value assets and liabilities at measurement date. These inputs are summarized in the three broad levels listed below:
| Level 1 quoted prices in active markets for identical investments |
| Level 2 other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| Level 3 significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments) |
The inputs or methodologies used to value securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used in valuing the Funds assets and liabilities carried at fair value:
ASSETS |
||||||||||||||||
DESCRIPTION |
QUOTED PRICES (LEVEL 1) |
OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL | ||||||||||||
Long-term investments: |
||||||||||||||||
Corporate bonds & notes |
| $ | 347,106,925 | | $ | 347,106,925 | ||||||||||
Asset-backed securities |
| 7,143,230 | | 7,143,230 | ||||||||||||
Collateralized mortgage obligations |
| 7,536,803 | | 7,536,803 | ||||||||||||
Convertible bonds & notes |
| 38,173 | | 38,173 | ||||||||||||
Senior loans |
| 71,000 | | 71,000 | ||||||||||||
Sovereign bonds |
| 17,823,873 | | 17,823,873 | ||||||||||||
Common stocks |
$ | 2,415,065 | | | 2,415,065 | |||||||||||
Preferred stocks |
82,746 | | | 82,746 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total investments |
$ | 2,497,811 | $ | 379,720,004 | | $ | 382,217,815 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Other financial instruments: |
||||||||||||||||
Forward foreign currency contracts |
| $ | 298,174 | | $ | 298,174 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | 2,497,811 | $ | 380,018,178 | | $ | 382,515,989 | |||||||||
|
|
|
|
|
|
|
|
|||||||||
LIABILITIES |
||||||||||||||||
DESCRIPTION |
QUOTED PRICES (LEVEL 1) |
OTHER SIGNIFICANT OBSERVABLE INPUTS (LEVEL 2) |
SIGNIFICANT UNOBSERVABLE INPUTS (LEVEL 3) |
TOTAL | ||||||||||||
Other financial instruments: |
||||||||||||||||
Forward foreign currency contracts |
| $ | 1,736,235 | | $ | 1,736,235 |
| See Schedule of Investments for additional detailed categorizations. |
(b) Repurchase agreements. The Fund may enter into repurchase agreements with institutions that its investment adviser has determined are creditworthy. Each repurchase agreement is recorded at cost. Under the terms of a typical repurchase agreement, the Fund acquires a debt security subject to an obligation of the seller to repurchase, and of the Fund to resell, the security at an agreed-upon price and time, thereby determining the yield during the Funds holding period. When entering into repurchase agreements, it is the Funds policy that its custodian or a third party custodian, acting on the Funds behalf, take possession of the underlying collateral securities, the market value of which, at all times, at least equals the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction maturity exceeds one business day, the value of the collateral is marked-to-market and measured against the value of the agreement in an effort to ensure the adequacy of the collateral. If the counterparty defaults, the Fund generally has the right to use the collateral to satisfy the terms of the repurchase transaction. However, if the market value of the collateral declines during the period in which the Fund seeks to assert its rights or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.
12
Notes to Schedule of Investments (unaudited) (continued)
(c) Reverse repurchase agreements. The Fund may enter into reverse repurchase agreements. Under the terms of a typical reverse repurchase agreement, a fund sells a security subject to an obligation to repurchase the security from the buyer at an agreed-upon time and price. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, the Funds use of the proceeds of the agreement may be restricted pending a determination by the counterparty, or its trustee or receiver, whether to enforce the Funds obligation to repurchase the securities. In entering into reverse repurchase agreements, the Fund will maintain cash, U.S. government securities or other liquid debt obligations at least equal in value to its obligations with respect to reverse repurchase agreements or will take other actions permitted by law to cover its obligations.
(d) Forward foreign currency contracts. The Fund enters into a forward foreign currency contract to hedge against foreign currency exchange rate risk on its non-U.S. dollar denominated securities or to facilitate settlement of a foreign currency denominated portfolio transaction. A forward foreign currency contract is an agreement between two parties to buy and sell a currency at a set price with delivery and settlement at a future date. The contract is marked-to-market daily and the change in value is recorded by the Fund as an unrealized gain or loss. When a forward foreign currency contract is closed, through either delivery or offset by entering into another forward foreign currency contract, the Fund recognizes a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value of the contract at the time it is closed.
When entering into a forward foreign currency contract, the Fund bears the risk of an unfavorable change in the foreign exchange rate underlying the forward foreign currency contract. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.
(e) Foreign currency translation. Investment securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollar amounts based upon prevailing exchange rates on the respective dates of such transactions.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of U.S. dollar denominated transactions as a result of, among other factors, the possibility of lower levels of governmental supervision and regulation of foreign securities markets and the possibility of political or economic instability.
(f) Foreign investment risks. The Funds investments in foreign securities may involve risks not present in domestic investments. Since securities may be denominated in foreign currencies, may require settlement in foreign currencies or pay interest or dividends in foreign currencies, changes in the relationship of these foreign currencies to the U.S. dollar can significantly affect the value of the investments and earnings of the Fund. Foreign investments may also subject the Fund to foreign government exchange restrictions, expropriation, taxation or other political, social or economic developments, all of which affect the market and/or credit risk of the investments.
(g) Credit and market risk. The Fund invests in high-yield and emerging market instruments that are subject to certain credit and market risks. The yields of high-yield and emerging market debt obligations reflect, among other things, perceived credit and market risks. The Funds investments in securities rated below investment grade typically involve risks not associated with higher rated securities including, among others, greater risk related to timely and ultimate payment of interest and principal, greater market price volatility and less liquid secondary market trading. The consequences of political, social, economic or diplomatic changes may have disruptive effects on the market prices of investments held by the Fund. The Funds investments in non-U.S. dollar denominated securities may also result in foreign currency losses caused by devaluations and exchange rate fluctuations.
(h) Counterparty risk and credit-risk-related contingent features of derivative instruments. The Fund may invest in certain securities or engage in other transactions, where the Fund is exposed to counterparty credit risk in addition to broader market risks. The Fund may invest in securities of issuers, which may also be considered counterparties as trading partners in other transactions. This may increase the risk of loss in the event of default or bankruptcy by the counterparty or if the counterparty otherwise fails to meet its contractual obligations. The Funds investment manager attempts to mitigate counterparty risk by (i) periodically assessing the creditworthiness of its trading partners, (ii) monitoring and/or limiting the amount of its net exposure to each individual counterparty based on its assessment and (iii) requiring collateral from the counterparty for certain transactions. Market events and changes in overall economic conditions may impact the assessment of such counterparty risk by the investment manager. In addition, declines in the values of underlying collateral received may expose the Fund to increased risk of loss.
13
Notes to Schedule of Investments (unaudited) (continued)
The Fund has entered into master agreements with certain of its derivative counterparties that provide for general obligations, representations, agreements, collateral, events of default or termination and credit related contingent features. The credit related contingent features include, but are not limited to, a percentage decrease in the Funds net assets or NAV over a specified period of time. If these credit related contingent features were triggered, the derivatives counterparty could terminate the positions and demand payment or require additional collateral.
Collateral requirements differ by type of derivative. Collateral or margin requirements are set by the broker or exchange clearing house for exchange traded derivatives while collateral terms are contract specific for over-the-counter traded derivatives. Securities pledged as collateral, if any, to cover the obligations of the Fund under derivative contracts, are noted in the Schedule of Investments.
As of January 31, 2014, the Fund held forward foreign currency contracts with credit related contingent features which had a liability position of $1,736,235. If a contingent feature in the master agreements would have been triggered, the Fund would have been required to pay this amount to its derivatives counterparties.
(i) Loan participations. The Fund may invest in loans arranged through private negotiation between one or more financial institutions. The Funds investment in any such loan may be in the form of a participation in or an assignment of the loan. In connection with purchasing participations, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement related to the loan, or any rights of off-set against the borrower and the Fund may not benefit directly from any collateral supporting the loan in which it has purchased the participation.
The Fund assumes the credit risk of the borrower, the lender that is selling the participation and any other persons interpositioned between the Fund and the borrower. In the event of the insolvency of the lender selling the participation, the Fund may be treated as a general creditor of the lender and may not benefit from any off-set between the lender and the borrower.
(j) Security transactions. Security transactions are accounted for on a trade date basis.
2. Investments
At January 31, 2014, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
Gross unrealized appreciation |
$ | 28,348,736 | ||
Gross unrealized depreciation |
(5,984,390 | ) | ||
|
|
|||
Net unrealized appreciation |
$ | 22,364,346 | ||
|
|
Transactions in reverse repurchase agreements for the Fund during the period ended January 31, 2014 were as follows:
Average Daily Balance* |
Weighted Average Interest Rate* |
Maximum Amount Outstanding | ||
$76,000,000 | 0.74% | $76,000,000 |
* | Averages based on the number of days that Fund had reverse repurchase agreements outstanding. |
Interest rates on reverse repurchase agreements ranged from 0.74% to 0.74% during the period ended January 31, 2014. Interest expense incurred on reverse repurchase agreements totaled $147,677.
14
Notes to Schedule of Investments (unaudited) (continued)
At January 31, 2014, the Fund had the following open repurchase agreements:
Counterparty |
Rate | Effective Date | Maturity Date | Face Amount of Reverse Repurchase Agreements |
||||||||||||
Barclays |
0.74 | % | 10/22/2013 | 4/28/2014 | $ | 72,000,000 | ||||||||||
Barclays |
0.74 | % | 10/28/2013 | 4/28/2014 | 4,000,000 | |||||||||||
|
|
|||||||||||||||
$ | 76,000,000 | |||||||||||||||
|
|
On January 31, 2014, the total market value of underlying collateral (refer to the Schedule of Investments for positions held at the counterparty as collateral for reverse repurchase agreements) for open reverse repurchase agreements was $95,666,365.
At January 31, 2014, the Fund had the following open forward foreign currency contracts:
Foreign Currency |
Counterparty |
Local Currency |
Market Value |
Settlement Date |
Unrealized Gain (Loss) |
|||||||||||||
Contracts to Buy: |
||||||||||||||||||
British Pound |
Citibank N.A. |
125,309 | $ | 205,974 | 2/18/14 | $ | 5,974 | |||||||||||
British Pound |
Citibank N.A. |
200,000 | 328,746 | 2/18/14 | 397 | |||||||||||||
British Pound |
UBS AG |
90,411 | 148,611 | 2/18/14 | (1,389 | ) | ||||||||||||
Euro |
Citibank N.A. |
146,275 | 197,281 | 2/18/14 | (2,719 | ) | ||||||||||||
Euro |
UBS AG |
1,500,000 | 2,023,057 | 2/18/14 | (9,454 | ) | ||||||||||||
|
|
|||||||||||||||||
(7,191 | ) | |||||||||||||||||
|
|
|||||||||||||||||
Contracts to Sell: |
||||||||||||||||||
British Pound |
Morgan Stanley |
13,032,869 | 21,422,500 | 2/18/14 | (546,451 | ) | ||||||||||||
British Pound |
UBS AG |
12,542,187 | 20,615,952 | 2/18/14 | (505,809 | ) | ||||||||||||
Canadian Dollar |
Morgan Stanley |
1,583,776 | 1,421,522 | 2/18/14 | 91,415 | |||||||||||||
Euro |
Citibank N.A. |
2,400,000 | 3,236,891 | 2/18/14 | (28,175 | ) | ||||||||||||
Euro |
Citibank N.A. |
150,000 | 202,306 | 2/18/14 | 1,654 | |||||||||||||
Euro |
Citibank N.A. |
11,000,000 | 14,835,750 | 2/18/14 | 194,320 | |||||||||||||
Euro |
Morgan Stanley |
1,300,000 | 1,753,316 | 2/18/14 | 4,414 | |||||||||||||
Euro |
Morgan Stanley |
39,696,740 | 53,539,172 | 2/18/14 | (630,960 | ) | ||||||||||||
Euro |
UBS AG |
10,901,247 | 14,702,561 | 2/18/14 | (11,278 | ) | ||||||||||||
|
|
|||||||||||||||||
(1,430,870 | ) | |||||||||||||||||
|
|
|||||||||||||||||
Net unrealized loss on open forward foreign currency contracts |
$ | (1,438,061 | ) | |||||||||||||||
|
|
3. Derivative instruments and hedging activities
GAAP requires enhanced disclosure about an entitys derivative and hedging activities.
The following is a summary of the Funds derivative instruments categorized by risk exposure at January 31, 2014.
Forward Foreign
Currency Contracts |
||||||||||||
Primary Underlying Risk |
Unrealized Appreciation |
Unrealized Depreciation |
Total | |||||||||
Foreign Exchange Risk |
$ | 298,174 | $ | (1,736,235 | ) | $ | (1,438,061 | ) |
15
Notes to Schedule of Investments (unaudited) (continued)
During the period ended January 31, 2014, the volume of derivative activity for the Fund was as follows:
Average Market Value | ||||
Forward foreign currency contracts (to buy) |
$ | 3,856,344 | ||
Forward foreign currency contracts (to sell) |
122,937,978 |
16
ITEM 2. | CONTROLS AND PROCEDURES. |
(a) | The registrants principal executive officer and principal financial officer have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the 1940 Act)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934. |
(b) | There were no changes in the registrants internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrants last fiscal quarter that have materially affected, or are likely to materially affect the registrants internal control over financial reporting. |
ITEM 3. | EXHIBITS. |
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, 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.
Western Asset Global Corporate Defined Opportunity Fund Inc.
By | /s/ KENNETH D. FULLER | |
Kenneth D. Fuller | ||
Chief Executive Officer | ||
Date: |
March 25, 2014 |
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/ KENNETH D. FULLER | |
Kenneth D. Fuller | ||
Chief Executive Officer | ||
Date: |
March 25, 2014 | |
By | /S/ RICHARD F. SENNETT | |
Richard F. Sennett | ||
Principal Financial Officer | ||
Date: |
March 25, 2014 |