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)
Registrant’s telephone number, including area code: 1-888-777-0102
Date of fiscal year end: October 31
Date of reporting period: July 31, 2016
| ITEM 1. | SCHEDULE OF INVESTMENTS. |
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
FORM N-Q
JULY 31, 2016
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| CORPORATE BONDS & NOTES - 109.2% | ||||||||||||||||
| CONSUMER DISCRETIONARY - 13.9% | ||||||||||||||||
| Auto Components - 0.6% |
||||||||||||||||
| Goodyear Tire & Rubber Co., Senior Notes |
5.000 | % | 5/31/26 | 550,000 | $ | 580,938 | ||||||||||
| ZF North America Capital Inc., Senior Notes |
4.750 | % | 4/29/25 | 1,050,000 | 1,101,187 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Auto Components |
1,682,125 | |||||||||||||||
|
|
|
|||||||||||||||
| Automobiles - 0.8% |
||||||||||||||||
| Ford Motor Credit Co., LLC, Senior Notes |
2.375 | % | 1/16/18 | 1,300,000 | 1,315,690 | |||||||||||
| General Motors Co., Senior Notes |
6.600 | % | 4/1/36 | 720,000 | 893,158 | |||||||||||
|
|
|
|||||||||||||||
| Total Automobiles |
2,208,848 | |||||||||||||||
|
|
|
|||||||||||||||
| Diversified Consumer Services - 0.1% |
||||||||||||||||
| Co-operative Group Holdings 2011 Ltd., Senior Notes |
6.875 | % | 7/8/20 | 100,000 | GBP | 144,266 | (b) | |||||||||
|
|
|
|||||||||||||||
| Hotels, Restaurants & Leisure - 2.0% |
||||||||||||||||
| Arcos Dorados Holdings Inc., Senior Notes |
6.625 | % | 9/27/23 | 252,000 | 256,410 | (a) | ||||||||||
| CEC Entertainment Inc., Senior Notes |
8.000 | % | 2/15/22 | 940,000 | 930,600 | |||||||||||
| GLP Capital LP/GLP Financing II Inc., Senior Notes |
5.375 | % | 4/15/26 | 750,000 | 801,562 | |||||||||||
| MGM Resorts International, Senior Notes |
11.375 | % | 3/1/18 | 1,000,000 | 1,137,500 | |||||||||||
| Mitchells & Butlers Finance PLC, Secured Notes |
5.965 | % | 12/15/23 | 337,603 | GBP | 500,174 | (b) | |||||||||
| Scientific Games International Inc., Senior Secured Notes |
7.000 | % | 1/1/22 | 110,000 | 114,950 | (a) | ||||||||||
| Viking Cruises Ltd., Senior Notes |
8.500 | % | 10/15/22 | 620,000 | 550,250 | (a) | ||||||||||
| Whitbread Group PLC, Senior Bonds |
3.375 | % | 10/16/25 | 920,000 | GBP | 1,343,936 | (b) | |||||||||
|
|
|
|||||||||||||||
| Total Hotels, Restaurants & Leisure |
5,635,382 | |||||||||||||||
|
|
|
|||||||||||||||
| Household Durables - 0.1% |
||||||||||||||||
| William Lyon Homes Inc., Senior Notes |
7.000 | % | 8/15/22 | 180,000 | 182,700 | |||||||||||
|
|
|
|||||||||||||||
| Media - 8.8% |
||||||||||||||||
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes |
6.384 | % | 10/23/35 | 720,000 | 849,754 | (a) | ||||||||||
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes |
6.484 | % | 10/23/45 | 3,660,000 | 4,406,728 | (a) | ||||||||||
| Comcast Corp., Senior Notes |
5.700 | % | 7/1/19 | 1,800,000 | 2,033,672 | |||||||||||
| DISH DBS Corp., Senior Notes |
5.875 | % | 7/15/22 | 420,000 | 420,790 | |||||||||||
| DISH DBS Corp., Senior Notes |
5.875 | % | 11/15/24 | 320,000 | 310,000 | |||||||||||
| Gray Television Inc., Senior Notes |
5.875 | % | 7/15/26 | 270,000 | 278,235 | (a) | ||||||||||
| Grupo Televisa SAB, Senior Bonds |
6.625 | % | 1/15/40 | 1,730,000 | 2,074,799 | |||||||||||
| iHeartCommunications Inc., Senior Notes |
14.000 | % | 2/1/21 | 960,900 | 410,785 | (c) | ||||||||||
| SFR Group SA, Senior Secured Bonds |
6.250 | % | 5/15/24 | 1,210,000 | 1,165,381 | (a) | ||||||||||
| SFR Group SA, Senior Secured Notes |
7.375 | % | 5/1/26 | 2,610,000 | 2,610,000 | (a) | ||||||||||
| Time Warner Cable Inc., Senior Notes |
8.750 | % | 2/14/19 | 1,500,000 | 1,745,302 | |||||||||||
| Tribune Media Co., Senior Notes |
5.875 | % | 7/15/22 | 450,000 | 461,250 | |||||||||||
| UBM PLC, Notes |
5.750 | % | 11/3/20 | 1,500,000 | 1,621,865 | (a) | ||||||||||
| UPC Holding BV, Junior Secured Subordinated Notes |
6.375 | % | 9/15/22 | 910,000 | EUR | 1,094,600 | (a) | |||||||||
| Viacom Inc., Senior Notes |
4.375 | % | 3/15/43 | 3,510,000 | 3,041,443 | |||||||||||
| Virgin Media Finance PLC, Senior Notes |
6.000 | % | 10/15/24 | 1,000,000 | 1,016,250 | (a) | ||||||||||
| Virgin Media Finance PLC, Senior Notes |
5.750 | % | 1/15/25 | 1,500,000 | 1,500,000 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Media |
25,040,854 | |||||||||||||||
|
|
|
|||||||||||||||
| Multiline Retail - 0.6% |
||||||||||||||||
| Dollar Tree Inc., Senior Notes |
5.750 | % | 3/1/23 | 710,000 | 770,350 | |||||||||||
| Neiman Marcus Group LLC, Senior Secured Notes |
7.125 | % | 6/1/28 | 180,000 | 171,000 | |||||||||||
| Neiman Marcus Group Ltd. LLC, Senior Notes |
8.000 | % | 10/15/21 | 300,000 | 255,780 | (a) | ||||||||||
| Neiman Marcus Group Ltd. LLC, Senior Notes |
8.750 | % | 10/15/21 | 700,000 | 556,500 | (a)(c) | ||||||||||
|
|
|
|||||||||||||||
| Total Multiline Retail |
1,753,630 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
1
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Specialty Retail - 0.9% |
||||||||||||||||
| GameStop Corp., Senior Notes |
6.750 | % | 3/15/21 | 760,000 | $ | 769,500 | (a) | |||||||||
| L Brands Inc., Debentures |
6.950 | % | 3/1/33 | 1,082,000 | 1,098,230 | |||||||||||
| Sally Holdings LLC/Sally Capital Inc., Senior Notes |
5.625 | % | 12/1/25 | 720,000 | 777,600 | |||||||||||
|
|
|
|||||||||||||||
| Total Specialty Retail |
2,645,330 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CONSUMER DISCRETIONARY |
39,293,135 | |||||||||||||||
|
|
|
|||||||||||||||
| CONSUMER STAPLES - 5.0% | ||||||||||||||||
| Beverages - 1.4% |
||||||||||||||||
| Anheuser-Busch InBev Finance Inc., Senior Notes |
4.700 | % | 2/1/36 | 940,000 | 1,093,129 | |||||||||||
| Anheuser-Busch InBev Finance Inc., Senior Notes |
4.900 | % | 2/1/46 | 1,740,000 | 2,128,417 | |||||||||||
| Carolina Beverage Group LLC/Carolina Beverage Group Finance Inc., Secured Notes |
10.625 | % | 8/1/18 | 830,000 | 800,950 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Beverages |
4,022,496 | |||||||||||||||
|
|
|
|||||||||||||||
| Food & Staples - 0.1% |
||||||||||||||||
| FAGE Dairy Industry SA/FAGE USA Dairy Industry Inc., Senior Notes |
5.625 | % | 8/15/26 | 340,000 | 348,075 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Food & Staples Retailing - 0.6% |
||||||||||||||||
| Tesco PLC, Senior Notes |
6.125 | % | 2/24/22 | 1,200,000 | GBP | 1,795,325 | ||||||||||
|
|
|
|||||||||||||||
| Food Products - 0.6% |
||||||||||||||||
| Boparan Finance PLC, Senior Secured Notes |
5.500 | % | 7/15/21 | 650,000 | GBP | 804,649 | (b) | |||||||||
| Kraft Heinz Foods Co., Senior Notes |
5.200 | % | 7/15/45 | 700,000 | 849,328 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Food Products |
1,653,977 | |||||||||||||||
|
|
|
|||||||||||||||
| Household Products - 0.2% |
||||||||||||||||
| Central Garden & Pet Co., Senior Notes |
6.125 | % | 11/15/23 | 420,000 | 447,300 | |||||||||||
| Sun Products Corp., Senior Notes |
7.750 | % | 3/15/21 | 160,000 | 167,200 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Household Products |
614,500 | |||||||||||||||
|
|
|
|||||||||||||||
| Tobacco - 2.1% |
||||||||||||||||
| Alliance One International Inc., Secured Notes |
9.875 | % | 7/15/21 | 500,000 | 441,875 | |||||||||||
| BAT Netherlands Finance BV, Senior Notes |
4.875 | % | 2/24/21 | 1,450,000 | EUR | 1,970,219 | ||||||||||
| Reynolds American Inc., Senior Notes |
8.125 | % | 6/23/19 | 2,305,000 | 2,730,623 | |||||||||||
| Reynolds American Inc., Senior Notes |
5.850 | % | 8/15/45 | 540,000 | 712,939 | |||||||||||
|
|
|
|||||||||||||||
| Total Tobacco |
5,855,656 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CONSUMER STAPLES |
14,290,029 | |||||||||||||||
|
|
|
|||||||||||||||
| ENERGY - 14.4% | ||||||||||||||||
| Energy Equipment & Services - 0.3% |
||||||||||||||||
| Ensco PLC, Senior Notes |
4.700 | % | 3/15/21 | 160,000 | 136,200 | |||||||||||
| KCA Deutag UK Finance PLC, Senior Secured Notes |
7.250 | % | 5/15/21 | 320,000 | 244,800 | (a) | ||||||||||
| Pride International Inc., Senior Notes |
7.875 | % | 8/15/40 | 670,000 | 494,828 | |||||||||||
|
|
|
|||||||||||||||
| Total Energy Equipment & Services |
875,828 | |||||||||||||||
|
|
|
|||||||||||||||
| Oil, Gas & Consumable Fuels - 14.1% |
||||||||||||||||
| Anadarko Petroleum Corp., Senior Notes |
6.450 | % | 9/15/36 | 1,370,000 | 1,535,029 | |||||||||||
| California Resources Corp., Senior Notes |
5.500 | % | 9/15/21 | 1,220,000 | 567,300 | |||||||||||
| Calumet Specialty Products Partners LP/Calumet Finance Corp., Senior Secured Notes |
11.500 | % | 1/15/21 | 870,000 | 996,150 | (a) | ||||||||||
| Chesapeake Energy Corp., Senior Notes |
6.875 | % | 11/15/20 | 470,000 | 347,800 | |||||||||||
| Chesapeake Energy Corp., Senior Notes |
5.375 | % | 6/15/21 | 560,000 | 369,600 | |||||||||||
| Continental Resources Inc., Senior Notes |
4.500 | % | 4/15/23 | 1,500,000 | 1,365,000 | |||||||||||
| Dolphin Energy Ltd., Senior Secured Bonds |
5.888 | % | 6/15/19 | 911,600 | 976,734 | (b) | ||||||||||
| Ecopetrol SA, Senior Notes |
7.625 | % | 7/23/19 | 1,650,000 | 1,884,630 | |||||||||||
| Ecopetrol SA, Senior Notes |
5.875 | % | 5/28/45 | 3,000,000 | 2,666,250 | |||||||||||
| Enterprise Products Operating LLC, Senior Notes |
6.500 | % | 1/31/19 | 1,290,000 | 1,442,205 | |||||||||||
| Enterprise Products Operating LLC, Senior Notes |
4.050 | % | 2/15/22 | 1,520,000 | 1,651,700 | |||||||||||
| Freeport-McMoran Oil & Gas LLC/FCX Oil & Gas Inc., Senior Notes |
6.875 | % | 2/15/23 | 2,390,000 | 2,324,275 | |||||||||||
| Globe Luxembourg SCA, Senior Secured Notes |
9.625 | % | 5/1/18 | 730,000 | 609,550 | (a) | ||||||||||
| Holly Energy Partners LP/Holly Energy Finance Corp., Senior Notes |
6.000 | % | 8/1/24 | 230,000 | 233,450 | (a) | ||||||||||
See Notes to Schedule of Investments.
2
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Oil, Gas & Consumable Fuels - (continued) |
||||||||||||||||
| Laredo Petroleum Inc., Senior Notes |
7.375 | % | 5/1/22 | 420,000 | $ | 410,550 | ||||||||||
| LUKOIL International Finance BV, Bonds |
6.356 | % | 6/7/17 | 310,000 | 321,707 | (b) | ||||||||||
| LUKOIL International Finance BV, Bonds |
6.656 | % | 6/7/22 | 1,110,000 | 1,256,285 | (b) | ||||||||||
| NGPL PipeCo LLC, Senior Secured Notes |
7.768 | % | 12/15/37 | 800,000 | 828,000 | (a) | ||||||||||
| Oasis Petroleum Inc., Senior Notes |
7.250 | % | 2/1/19 | 640,000 | 603,200 | |||||||||||
| Oasis Petroleum Inc., Senior Notes |
6.500 | % | 11/1/21 | 910,000 | 768,950 | |||||||||||
| Oasis Petroleum Inc., Senior Notes |
6.875 | % | 1/15/23 | 150,000 | 126,750 | |||||||||||
| Occidental Petroleum Corp., Senior Notes |
4.625 | % | 6/15/45 | 700,000 | 790,820 | |||||||||||
| Petrobras Global Finance BV, Senior Notes |
6.250 | % | 3/17/24 | 380,000 | 357,200 | |||||||||||
| Petrobras Global Finance BV, Senior Notes |
6.750 | % | 1/27/41 | 920,000 | 759,000 | |||||||||||
| Petroleos Mexicanos, Senior Bonds |
6.625 | % | 6/15/35 | 910,000 | 945,444 | |||||||||||
| Petroleos Mexicanos, Senior Notes |
4.250 | % | 1/15/25 | 1,000,000 | 972,500 | |||||||||||
| Petronas Capital Ltd., Senior Notes |
5.250 | % | 8/12/19 | 930,000 | 1,025,574 | (b) | ||||||||||
| Petronas Capital Ltd., Senior Notes |
5.250 | % | 8/12/19 | 410,000 | 452,135 | (a) | ||||||||||
| Ras Laffan Liquefied Natural Gas Co., Ltd. III, Senior Secured Bonds |
6.750 | % | 9/30/19 | 2,280,000 | 2,618,008 | (b) | ||||||||||
| Reliance Holdings USA Inc., Senior Notes |
5.400 | % | 2/14/22 | 1,000,000 | 1,130,070 | (a) | ||||||||||
| Rockies Express Pipeline LLC, Senior Notes |
7.500 | % | 7/15/38 | 330,000 | 328,350 | (a) | ||||||||||
| Rockies Express Pipeline LLC, Senior Notes |
6.875 | % | 4/15/40 | 600,000 | 594,000 | (a) | ||||||||||
| Rosneft Finance SA, Senior Notes |
7.875 | % | 3/13/18 | 2,830,000 | 3,052,862 | (a) | ||||||||||
| Tesoro Logistics LP/Tesoro Logistics Finance Corp., Senior Notes |
6.125 | % | 10/15/21 | 120,000 | 125,262 | |||||||||||
| Tesoro Logistics LP/Tesoro Logistics Finance Corp., Senior Notes |
6.375 | % | 5/1/24 | 340,000 | 360,189 | |||||||||||
| Transcontinental Gas Pipe Line Co., LLC, Senior Notes |
7.850 | % | 2/1/26 | 1,000,000 | 1,250,298 | (a) | ||||||||||
| Whiting Petroleum Corp., Senior Notes |
5.000 | % | 3/15/19 | 790,000 | 693,225 | |||||||||||
| Whiting Petroleum Corp., Senior Notes |
6.250 | % | 4/1/23 | 390,000 | 324,188 | |||||||||||
| Williams Cos. Inc., Debentures |
7.500 | % | 1/15/31 | 340,000 | 367,200 | |||||||||||
| Williams Cos. Inc., Senior Notes |
3.700 | % | 1/15/23 | 430,000 | 394,525 | |||||||||||
| Williams Cos. Inc., Senior Notes |
4.550 | % | 6/24/24 | 540,000 | 517,050 | |||||||||||
| Williams Cos. Inc., Senior Notes |
5.750 | % | 6/24/44 | 450,000 | 415,125 | |||||||||||
| Williams Partners LP, Senior Notes |
5.250 | % | 3/15/20 | 610,000 | 643,176 | |||||||||||
| WPX Energy Inc., Senior Notes |
7.500 | % | 8/1/20 | 260,000 | 257,400 | |||||||||||
| WPX Energy Inc., Senior Notes |
8.250 | % | 8/1/23 | 390,000 | 384,392 | |||||||||||
|
|
|
|||||||||||||||
| Total Oil, Gas & Consumable Fuels |
40,043,108 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL ENERGY |
40,918,936 | |||||||||||||||
|
|
|
|||||||||||||||
| FINANCIALS - 33.2% | ||||||||||||||||
| Banks - 21.2% |
||||||||||||||||
| Australia & New Zealand Banking Group Ltd., Subordinated Notes |
5.125 | % | 9/10/19 | 1,250,000 | EUR | 1,606,156 | (b) | |||||||||
| Bank of America Corp., Junior Subordinated Notes |
6.500 | % | 10/23/24 | 170,000 | 185,831 | (d)(e) | ||||||||||
| Bank of America Corp., Senior Notes |
7.750 | % | 4/30/18 | 800,000 | GBP | 1,177,108 | ||||||||||
| Barclays Bank PLC, Subordinated Notes |
7.625 | % | 11/21/22 | 5,950,000 | 6,662,066 | |||||||||||
| Barclays PLC, Junior Subordinated Bonds |
8.250 | % | 12/15/18 | 240,000 | 245,100 | (d)(e) | ||||||||||
| BNP Paribas Fortis SA, Senior Subordinated Notes |
5.757 | % | 10/4/17 | 1,200,000 | EUR | 1,429,477 | ||||||||||
| BNP Paribas SA, Junior Subordinated Notes |
7.375 | % | 8/19/25 | 1,620,000 | 1,654,425 | (a)(d)(e) | ||||||||||
| CIT Group Inc., Senior Notes |
5.000 | % | 8/15/22 | 110,000 | 116,050 | |||||||||||
| CIT Group Inc., Senior Notes |
5.000 | % | 8/1/23 | 370,000 | 390,350 | |||||||||||
| Citigroup Inc., Senior Notes |
7.375 | % | 9/4/19 | 1,300,000 | EUR | 1,778,862 | ||||||||||
| Commonwealth Bank of Australia, Subordinated Notes |
5.500 | % | 8/6/19 | 1,200,000 | EUR | 1,545,509 | ||||||||||
| Cooperatieve Rabobank U.A., Junior Subordinated Notes |
11.000 | % | 6/30/19 | 1,997,000 | 2,448,821 | (a)(d)(e) | ||||||||||
| Credit Agricole SA, Junior Subordinated Notes |
8.375 | % | 10/13/19 | 2,530,000 | 2,867,299 | (a)(d)(e) | ||||||||||
| Credit Agricole SA, Junior Subordinated Notes |
7.875 | % | 10/26/19 | 400,000 | EUR | 527,701 | (b)(d)(e) | |||||||||
| Credit Agricole SA, Junior Subordinated Notes |
8.125 | % | 12/23/25 | 560,000 | 591,500 | (a)(d)(e) | ||||||||||
| Credit Agricole SA, Subordinated Bonds |
8.125 | % | 9/19/33 | 900,000 | 990,702 | (a)(d) | ||||||||||
See Notes to Schedule of Investments.
3
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Banks - (continued) |
||||||||||||||||
| Credit Agricole SA, Subordinated Notes |
4.375 | % | 3/17/25 | 760,000 | $ | 778,223 | (a) | |||||||||
| HSBC Holdings PLC, Junior Subordinated Bonds |
6.375 | % | 3/30/25 | 2,070,000 | 2,050,335 | (d)(e) | ||||||||||
| ING Bank NV, Subordinated Notes |
6.875 | % | 5/29/23 | 2,850,000 | GBP | 4,070,961 | (d) | |||||||||
| Intesa Sanpaolo SpA, Junior Subordinated Notes |
8.375 | % | 10/14/19 | 450,000 | EUR | 571,024 | (b)(d)(e) | |||||||||
| JPMorgan Chase & Co., Junior Subordinated Bonds |
6.000 | % | 8/1/23 | 5,870,000 | 6,154,695 | (d)(e) | ||||||||||
| JPMorgan Chase & Co., Junior Subordinated Notes |
6.100 | % | 10/1/24 | 250,000 | 266,250 | (d)(e) | ||||||||||
| Lloyds Banking Group PLC, Subordinated Notes |
4.650 | % | 3/24/26 | 550,000 | 568,671 | |||||||||||
| M&T Bank Corp., Junior Subordinated Bonds |
6.875 | % | 8/29/16 | 1,570,000 | 1,585,700 | (e) | ||||||||||
| National Australia Bank Ltd., Subordinated Notes |
6.750 | % | 6/26/23 | 2,750,000 | EUR | 3,430,636 | (d) | |||||||||
| National Capital Trust I, Junior Subordinated Bond |
5.620 | % | 12/17/18 | 266,000 | GBP | 363,479 | (b)(d)(e) | |||||||||
| Royal Bank of Scotland PLC, Subordinated Notes |
13.125 | % | 3/19/22 | 1,420,000 | AUD | 1,142,575 | (b)(d) | |||||||||
| Santander UK Group Holdings PLC, Junior Subordinated Bonds |
7.375 | % | 6/24/22 | 650,000 | GBP | 852,324 | (b)(d)(e) | |||||||||
| Santander UK PLC, Subordinated Notes |
5.000 | % | 11/7/23 | 1,120,000 | 1,171,408 | (a) | ||||||||||
| Societe Generale SA, Junior Subordinated Notes |
9.375 | % | 9/4/19 | 1,550,000 | EUR | 2,102,033 | (b)(d)(e) | |||||||||
| Standard Chartered Bank, Subordinated Notes |
5.875 | % | 9/26/17 | 1,250,000 | EUR | 1,481,014 | (b) | |||||||||
| Standard Chartered Bank, Subordinated Notes |
7.750 | % | 4/3/18 | 1,000,000 | GBP | 1,457,071 | (b) | |||||||||
| Wachovia Capital Trust III, Junior Subordinated Bonds |
5.570 | % | 8/29/16 | 3,660,000 | 3,664,575 | (d)(e) | ||||||||||
| Wells Fargo & Co., Junior Subordinated Bonds |
5.900 | % | 6/15/24 | 2,910,000 | 3,106,425 | (d)(e) | ||||||||||
| Wells Fargo & Co., Junior Subordinated Bonds |
5.875 | % | 6/15/25 | 200,000 | 220,500 | (d)(e) | ||||||||||
| Wells Fargo & Co., Subordinated Notes |
4.650 | % | 11/4/44 | 700,000 | 764,728 | |||||||||||
|
|
|
|||||||||||||||
| Total Banks |
60,019,584 | |||||||||||||||
|
|
|
|||||||||||||||
| Capital Markets - 2.9% |
||||||||||||||||
| Credit Suisse Group Funding Guernsey Ltd., Senior Notes |
4.875 | % | 5/15/45 | 470,000 | 504,451 | |||||||||||
| Goldman Sachs Capital II, Junior Subordinated Bonds |
4.000 | % | 8/29/16 | 693,000 | 564,795 | (d)(e) | ||||||||||
| Goldman Sachs Group Inc., Subordinated Notes |
4.750 | % | 10/12/21 | 2,700,000 | EUR | 3,550,980 | ||||||||||
| Goldman Sachs Group Inc., Subordinated Notes |
5.500 | % | 10/12/21 | 600,000 | GBP | 913,492 | ||||||||||
| Goldman Sachs Group Inc., Subordinated Notes |
5.150 | % | 5/22/45 | 1,480,000 | 1,629,099 | |||||||||||
| Pershing Square Holdings Ltd., Senior Notes |
5.500 | % | 7/15/22 | 1,000,000 | 980,000 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Capital Markets |
8,142,817 | |||||||||||||||
|
|
|
|||||||||||||||
| Consumer Finance - 0.8% |
||||||||||||||||
| Navient Corp., Medium-Term Notes, Senior Notes |
8.000 | % | 3/25/20 | 1,880,000 | 2,011,600 | |||||||||||
| Navient Corp., Senior Notes |
6.625 | % | 7/26/21 | 390,000 | 394,875 | |||||||||||
|
|
|
|||||||||||||||
| Total Consumer Finance |
2,406,475 | |||||||||||||||
|
|
|
|||||||||||||||
| Diversified Financial Services - 3.5% |
||||||||||||||||
| AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, Senior Bonds |
4.250 | % | 7/1/20 | 430,000 | 453,112 | |||||||||||
| AerCap Ireland Capital Ltd./AerCap Global Aviation Trust, Senior Bonds |
4.625 | % | 7/1/22 | 380,000 | 409,575 | |||||||||||
| Argos Merger Sub Inc., Senior Notes |
7.125 | % | 3/15/23 | 500,000 | 523,750 | (a) | ||||||||||
| CPUK Finance Ltd., Senior Secured Notes |
7.239 | % | 2/28/24 | 1,250,000 | GBP | 2,172,856 | (b) | |||||||||
| International Lease Finance Corp., Senior Notes |
8.750 | % | 3/15/17 | 3,000,000 | 3,132,276 | |||||||||||
| International Lease Finance Corp., Senior Notes |
6.250 | % | 5/15/19 | 1,260,000 | 1,384,425 | |||||||||||
| International Lease Finance Corp., Senior Notes |
5.875 | % | 8/15/22 | 330,000 | 377,438 | |||||||||||
| MUFG Capital Finance 4 Ltd., Junior Subordinated Bonds |
5.271 | % | 1/25/17 | 550,000 | EUR | 628,736 | (d)(e) | |||||||||
| Nationwide Building Society, Junior Subordinated Notes |
6.875 | % | 6/20/19 | 580,000 | GBP | 741,089 | (b)(d)(e) | |||||||||
|
|
|
|||||||||||||||
| Total Diversified Financial Services |
9,823,257 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
4
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Insurance - 3.3% |
||||||||||||||||
| AXA SA, Junior Subordinated Notes |
6.463 | % | 12/14/18 | 2,000,000 | $ | 2,107,900 | (a)(d)(e) | |||||||||
| BUPA Finance PLC, Subordinated Bonds |
5.000 | % | 4/25/23 | 910,000 | GBP | 1,333,567 | (b) | |||||||||
| Farmers Insurance Exchange, Subordinated Notes |
8.625 | % | 5/1/24 | 1,295,000 | 1,667,634 | (a) | ||||||||||
| Galaxy Bidco Ltd., Senior Secured Notes |
6.375 | % | 11/15/20 | 370,000 | GBP | 494,049 | (b) | |||||||||
| MetLife Capital Trust IV, Junior Subordinated Notes |
7.875 | % | 12/15/37 | 300,000 | 373,350 | (a) | ||||||||||
| Muenchener Rueckversicherungs-Gesellschaft AG (MunichRe), Junior Subordinated Bonds |
5.767 | % | 6/12/17 | 500,000 | EUR | 582,771 | (b)(d)(e) | |||||||||
| Scottish Widows PLC, Subordinated Notes |
5.500 | % | 6/16/23 | 910,000 | GBP | 1,315,778 | (b) | |||||||||
| Travelers Cos. Inc., Senior Notes |
5.350 | % | 11/1/40 | 1,150,000 | 1,518,168 | |||||||||||
|
|
|
|||||||||||||||
| Total Insurance |
9,393,217 | |||||||||||||||
|
|
|
|||||||||||||||
| Real Estate Investment Trusts (REITs) - 0.7% |
||||||||||||||||
| Care Capital Properties LP, Senior Notes |
5.125 | % | 8/15/26 | 310,000 | 314,488 | (a) | ||||||||||
| Communications Sales & Leasing Inc., Senior Secured Notes |
6.000 | % | 4/15/23 | 410,000 | 424,096 | (a) | ||||||||||
| GEO Group Inc., Senior Notes |
6.000 | % | 4/15/26 | 630,000 | 648,112 | |||||||||||
| MPT Operating Partnership LP/MPT Finance Corp., Senior Notes |
6.375 | % | 3/1/24 | 440,000 | 481,800 | |||||||||||
| MPT Operating Partnership LP/MPT Finance Corp., Senior Notes |
5.250 | % | 8/1/26 | 200,000 | 210,750 | |||||||||||
|
|
|
|||||||||||||||
| Total Real Estate Investment Trusts (REITs) |
2,079,246 | |||||||||||||||
|
|
|
|||||||||||||||
| Real Estate Management & Development - 0.6% |
||||||||||||||||
| Caesars Entertainment Resort Properties LLC, Senior Secured Notes |
8.000 | % | 10/1/20 | 1,680,000 | 1,705,200 | |||||||||||
|
|
|
|||||||||||||||
| Thrifts & Mortgage Finance - 0.2% |
||||||||||||||||
| Quicken Loans Inc., Senior Notes |
5.750 | % | 5/1/25 | 640,000 | 637,600 | (a) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL FINANCIALS |
94,207,396 | |||||||||||||||
|
|
|
|||||||||||||||
| HEALTH CARE - 6.0% | ||||||||||||||||
| Biotechnology - 0.7% |
||||||||||||||||
| AbbVie Inc., Senior Subordinated Notes |
3.600 | % | 5/14/25 | 960,000 | 1,019,903 | |||||||||||
| AMAG Pharmaceuticals Inc., Senior Notes |
7.875 | % | 9/1/23 | 490,000 | 477,015 | (a) | ||||||||||
| Celgene Corp., Senior Notes |
5.000 | % | 8/15/45 | 510,000 | 595,861 | |||||||||||
|
|
|
|||||||||||||||
| Total Biotechnology |
2,092,779 | |||||||||||||||
|
|
|
|||||||||||||||
| Health Care Equipment & Supplies - 1.4% |
||||||||||||||||
| ConvaTec Healthcare E SA, Senior Notes |
10.875 | % | 12/15/18 | 1,070,000 | EUR | 1,236,718 | (a) | |||||||||
| DJO Finance LLC/DJO Finance Corp., Secured Notes |
10.750 | % | 4/15/20 | 320,000 | 267,200 | (a) | ||||||||||
| DJO Finco Inc./DJO Finance LLC/DJO Finance Corp., Secured Notes |
8.125 | % | 6/15/21 | 1,200,000 | 1,098,000 | (a) | ||||||||||
| Greatbatch Ltd., Senior Notes |
9.125 | % | 11/1/23 | 580,000 | 594,500 | (a) | ||||||||||
| Kinetic Concepts Inc./KCI USA Inc., Senior Secured Notes |
7.875 | % | 2/15/21 | 560,000 | 605,153 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Health Care Equipment & Supplies |
3,801,571 | |||||||||||||||
|
|
|
|||||||||||||||
| Health Care Providers & Services - 3.1% |
||||||||||||||||
| Centene Corp., Senior Notes |
5.625 | % | 2/15/21 | 480,000 | 508,200 | |||||||||||
| Centene Corp., Senior Notes |
6.125 | % | 2/15/24 | 370,000 | 398,446 | |||||||||||
| HCA Inc., Senior Secured Notes |
5.250 | % | 6/15/26 | 470,000 | 499,375 | |||||||||||
| Humana Inc., Senior Notes |
7.200 | % | 6/15/18 | 2,700,000 | 2,977,557 | |||||||||||
| Synlab Unsecured Bondco PLC, Senior Bonds |
8.250 | % | 7/1/23 | 370,000 | EUR | 432,337 | (b) | |||||||||
| Unilabs Subholding AB, Senior Secured Notes |
8.500 | % | 7/15/18 | 1,200,000 | EUR | 1,380,440 | (b) | |||||||||
| UnitedHealth Group Inc., Senior Notes |
6.000 | % | 2/15/18 | 1,350,000 | 1,450,449 | |||||||||||
| Universal Hospital Services Inc., Secured Notes |
7.625 | % | 8/15/20 | 1,250,000 | 1,168,750 | |||||||||||
|
|
|
|||||||||||||||
| Total Health Care Providers & Services |
8,815,554 | |||||||||||||||
|
|
|
|||||||||||||||
| Pharmaceuticals - 0.8% |
||||||||||||||||
| Actavis Funding SCS, Senior Notes |
4.550 | % | 3/15/35 | 290,000 | 313,188 | |||||||||||
| Actavis Funding SCS, Senior Notes |
4.750 | % | 3/15/45 | 650,000 | 723,028 | |||||||||||
| Mallinckrodt International Finance SA, Senior Notes |
5.750 | % | 8/1/22 | 520,000 | 510,900 | (a) | ||||||||||
| Valeant Pharmaceuticals International Inc., Senior Notes |
7.500 | % | 7/15/21 | 800,000 | 748,000 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Pharmaceuticals |
2,295,116 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL HEALTH CARE |
17,005,020 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
5
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| INDUSTRIALS - 6.2% | ||||||||||||||||
| Air Freight & Logistics - 0.2% |
||||||||||||||||
| XPO Logistics Inc., Senior Notes |
7.875 | % | 9/1/19 | 330,000 | $ | 342,787 | (a) | |||||||||
| XPO Logistics Inc., Senior Notes |
6.500 | % | 6/15/22 | 160,000 | 159,200 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Air Freight & Logistics |
501,987 | |||||||||||||||
|
|
|
|||||||||||||||
| Airlines - 1.4% |
||||||||||||||||
| Continental Airlines Inc., Pass-Through Certificates, Secured Notes |
9.250 | % | 5/10/17 | 1,259,450 | 1,328,719 | |||||||||||
| Heathrow Finance PLC, Senior Secured Notes |
7.125 | % | 3/1/17 | 950,000 | GBP | 1,301,252 | (b) | |||||||||
| Manchester Airport Group Funding PLC, Senior Secured Notes |
4.125 | % | 4/2/24 | 860,000 | GBP | 1,332,326 | (b) | |||||||||
| United Airlines Inc., Pass-Through Certificates, Senior Secured Notes |
10.400 | % | 11/1/16 | 18,497 | 18,819 | |||||||||||
|
|
|
|||||||||||||||
| Total Airlines |
3,981,116 | |||||||||||||||
|
|
|
|||||||||||||||
| Building Products - 0.8% |
||||||||||||||||
| GTL Trade Finance Inc., Senior Notes |
7.250 | % | 4/16/44 | 1,220,000 | 1,146,800 | (a) | ||||||||||
| Standard Industries Inc., Senior Notes |
5.125 | % | 2/15/21 | 380,000 | 399,000 | (a) | ||||||||||
| Standard Industries Inc., Senior Notes |
5.500 | % | 2/15/23 | 550,000 | 576,125 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Building Products |
2,121,925 | |||||||||||||||
|
|
|
|||||||||||||||
| Commercial Services & Supplies - 1.8% |
||||||||||||||||
| Garda World Security Corp., Senior Notes |
7.250 | % | 11/15/21 | 410,000 | 354,650 | (a) | ||||||||||
| GFL Environmental Inc., Senior Notes |
9.875 | % | 2/1/21 | 680,000 | 741,200 | (a) | ||||||||||
| Monitronics International Inc., Senior Notes |
9.125 | % | 4/1/20 | 680,000 | 603,075 | |||||||||||
| Republic Services Inc., Senior Notes |
5.250 | % | 11/15/21 | 1,450,000 | 1,684,258 | |||||||||||
| Taylor Morrison Communities Inc./Monarch Communities Inc., Senior Notes |
5.250 | % | 4/15/21 | 420,000 | 429,450 | (a) | ||||||||||
| West Corp., Senior Notes |
5.375 | % | 7/15/22 | 1,430,000 | 1,338,837 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Commercial Services & Supplies |
5,151,470 | |||||||||||||||
|
|
|
|||||||||||||||
| Construction & Engineering - 0.5% |
||||||||||||||||
| Brundage-Bone Concrete Pumping Inc., Senior Secured Notes |
10.375 | % | 9/1/21 | 720,000 | 738,000 | (a) | ||||||||||
| Michael Baker International LLC/CDL Acquisition Co. Inc., Senior Secured Notes |
8.250 | % | 10/15/18 | 530,000 | 523,375 | (a) | ||||||||||
| Modular Space Corp., Secured Notes |
10.250 | % | 1/31/19 | 600,000 | 249,000 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Construction & Engineering |
1,510,375 | |||||||||||||||
|
|
|
|||||||||||||||
| Electrical Equipment - 0.0% |
||||||||||||||||
| Trionista TopCo GmbH, Senior Subordinated Notes |
6.875 | % | 4/30/21 | 100,000 | EUR | 118,229 | (a) | |||||||||
|
|
|
|||||||||||||||
| Marine - 0.1% |
||||||||||||||||
| Ultrapetrol Bahamas Ltd., Senior Secured Notes |
8.875 | % | 6/15/21 | 630,000 | 122,850 | *(f)(g) | ||||||||||
|
|
|
|||||||||||||||
| Road & Rail - 1.0% |
||||||||||||||||
| Eversholt Funding PLC, Senior Secured Notes |
6.359 | % | 12/2/25 | 740,000 | GBP | 1,314,856 | ||||||||||
| Flexi-Van Leasing Inc., Senior Notes |
7.875 | % | 8/15/18 | 1,132,000 | 1,115,020 | (a) | ||||||||||
| Jack Cooper Holdings Corp., Senior Secured Notes |
9.250 | % | 6/1/20 | 630,000 | 456,750 | |||||||||||
|
|
|
|||||||||||||||
| Total Road & Rail |
2,886,626 | |||||||||||||||
|
|
|
|||||||||||||||
| Trading Companies & Distributors - 0.4% |
||||||||||||||||
| H&E Equipment Services Inc., Senior Notes |
7.000 | % | 9/1/22 | 1,080,000 | 1,131,300 | |||||||||||
|
|
|
|||||||||||||||
| TOTAL INDUSTRIALS |
17,525,878 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
6
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| INFORMATION TECHNOLOGY - 3.2% | ||||||||||||||||
| Electronic Equipment, Instruments & Components - 0.2% |
||||||||||||||||
| Interface Security Systems Holdings Inc./Interface Security Systems LLC, Senior Secured Notes |
9.250 | % | 1/15/18 | 440,000 | $ | 438,350 | ||||||||||
|
|
|
|||||||||||||||
| Internet Software & Services - 0.9% |
||||||||||||||||
| Ancestry.com Holdings LLC, Senior Notes |
9.625 | % | 10/15/18 | 2,110,000 | 2,160,112 | (a)(c) | ||||||||||
| Match Group Inc., Senior Notes |
6.375 | % | 6/1/24 | 380,000 | 407,550 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Internet Software & Services |
2,567,662 | |||||||||||||||
|
|
|
|||||||||||||||
| IT Services - 0.2% |
||||||||||||||||
| First Data Corp., Senior Secured Notes |
5.000 | % | 1/15/24 | 500,000 | 505,625 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Software - 0.3% |
||||||||||||||||
| Oberthur Technologies Holding SAS, Senior Secured Notes |
9.250 | % | 4/30/20 | 670,000 | EUR | 793,274 | (a) | |||||||||
|
|
|
|||||||||||||||
| Technology Hardware, Storage & Peripherals - 1.6% |
||||||||||||||||
| Diamond 1 Finance Corp./Diamond 2 Finance Corp., Senior Notes |
5.875 | % | 6/15/21 | 690,000 | 721,670 | (a) | ||||||||||
| Diamond 1 Finance Corp./Diamond 2 Finance Corp., Senior Notes |
7.125 | % | 6/15/24 | 400,000 | 430,906 | (a) | ||||||||||
| HP Inc., Senior Notes |
4.650 | % | 12/9/21 | 2,000,000 | 2,203,606 | |||||||||||
| Seagate HDD Cayman, Senior Bonds |
4.750 | % | 1/1/25 | 980,000 | 858,240 | |||||||||||
| Seagate HDD Cayman, Senior Bonds |
4.875 | % | 6/1/27 | 520,000 | 436,925 | |||||||||||
|
|
|
|||||||||||||||
| Total Technology Hardware, Storage & Peripherals |
4,651,347 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL INFORMATION TECHNOLOGY |
8,956,258 | |||||||||||||||
|
|
|
|||||||||||||||
| MATERIALS - 8.7% | ||||||||||||||||
| Chemicals - 0.8% |
||||||||||||||||
| Eco Services Operations LLC/Eco Finance Corp., Senior Notes |
8.500 | % | 11/1/22 | 280,000 | 291,027 | (a) | ||||||||||
| OCP SA, Senior Notes |
5.625 | % | 4/25/24 | 800,000 | 870,171 | (a) | ||||||||||
| PQ Corp., Senior Secured Notes |
6.750 | % | 11/15/22 | 350,000 | 369,033 | (a) | ||||||||||
| Valvoline Inc., Senior Notes |
5.500 | % | 7/15/24 | 700,000 | 731,500 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Chemicals |
2,261,731 | |||||||||||||||
|
|
|
|||||||||||||||
| Construction Materials - 0.8% |
||||||||||||||||
| Eagle Materials Inc., Senior Notes |
4.500 | % | 8/1/26 | 560,000 | 569,450 | |||||||||||
| Hardwoods Acquisition Inc., Senior Secured Notes |
7.500 | % | 8/1/21 | 750,000 | 573,750 | (a) | ||||||||||
| HeidelbergCement Finance Luxembourg SA, Senior Notes |
8.500 | % | 10/31/19 | 610,000 | EUR | 854,578 | (b) | |||||||||
| NWH Escrow Corp., Senior Secured Notes |
7.500 | % | 8/1/21 | 300,000 | 223,500 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Construction Materials |
2,221,278 | |||||||||||||||
|
|
|
|||||||||||||||
| Containers & Packaging - 1.6% |
||||||||||||||||
| BWAY Holding Co., Senior Notes |
9.125 | % | 8/15/21 | 1,290,000 | 1,290,000 | (a) | ||||||||||
| Coveris Holdings SA, Senior Notes |
7.875 | % | 11/1/19 | 450,000 | 454,500 | (a) | ||||||||||
| Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer (Luxembourg) SA, Senior Secured Notes |
5.125 | % | 7/15/23 | 410,000 | 423,325 | (a) | ||||||||||
| SGD Group SAS, Senior Secured Bonds |
5.625 | % | 5/15/19 | 1,230,000 | EUR | 1,416,429 | (b) | |||||||||
| Suzano Trading Ltd., Senior Notes |
5.875 | % | 1/23/21 | 970,000 | 1,022,477 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Containers & Packaging |
4,606,731 | |||||||||||||||
|
|
|
|||||||||||||||
| Metals & Mining - 4.4% |
||||||||||||||||
| Anglo American Capital PLC, Senior Notes |
3.625 | % | 5/14/20 | 470,000 | 458,250 | (a) | ||||||||||
| Anglo American Capital PLC, Senior Notes |
4.125 | % | 4/15/21 | 250,000 | 244,375 | (a) | ||||||||||
| Anglo American Capital PLC, Senior Notes |
4.875 | % | 5/14/25 | 850,000 | 835,125 | (a) | ||||||||||
| ArcelorMittal SA, Senior Notes |
8.000 | % | 10/15/39 | 750,000 | 798,750 | |||||||||||
| BHP Billiton Finance USA Ltd., Subordinated Notes |
6.750 | % | 10/19/75 | 1,500,000 | 1,672,500 | (a)(d) | ||||||||||
| Freeport-McMoRan Inc., Senior Notes |
2.375 | % | 3/15/18 | 650,000 | 645,125 | |||||||||||
| Glencore Finance Canada Ltd., Senior Notes |
5.250 | % | 6/13/17 | 950,000 | EUR | 1,107,258 | ||||||||||
| Southern Copper Corp., Senior Notes |
5.250 | % | 11/8/42 | 1,850,000 | 1,722,787 | |||||||||||
| Teck Resources Ltd., Senior Notes |
8.000 | % | 6/1/21 | 500,000 | 535,000 | (a) | ||||||||||
See Notes to Schedule of Investments.
7
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Metals & Mining - (continued) |
||||||||||||||||
| Teck Resources Ltd., Senior Notes |
8.500 | % | 6/1/24 | 580,000 | $ | 632,200 | (a) | |||||||||
| Vale Overseas Ltd., Senior Notes |
4.375 | % | 1/11/22 | 2,816,000 | 2,742,080 | |||||||||||
| Vale Overseas Ltd., Senior Notes |
6.875 | % | 11/21/36 | 340,000 | 328,950 | |||||||||||
| Vale Overseas Ltd., Senior Notes |
6.875 | % | 11/10/39 | 750,000 | 713,662 | |||||||||||
|
|
|
|||||||||||||||
| Total Metals & Mining |
12,436,062 | |||||||||||||||
|
|
|
|||||||||||||||
| Paper & Forest Products - 1.1% |
||||||||||||||||
| Celulosa Arauco y Constitucion SA, Senior Notes |
7.250 | % | 7/29/19 | 1,220,000 | 1,394,195 | |||||||||||
| Fibria Overseas Finance Ltd., Senior Notes |
5.250 | % | 5/12/24 | 260,000 | 268,658 | |||||||||||
| UPM-Kymmene OYJ, Senior Notes |
6.625 | % | 1/23/17 | 1,000,000 | GBP | 1,359,781 | ||||||||||
|
|
|
|||||||||||||||
| Total Paper & Forest Products |
3,022,634 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL MATERIALS |
24,548,436 | |||||||||||||||
|
|
|
|||||||||||||||
| TELECOMMUNICATION SERVICES - 12.4% | ||||||||||||||||
| Diversified Telecommunication Services - 8.0% |
||||||||||||||||
| British Telecommunications PLC, Senior Bonds |
8.500 | % | 12/7/16 | 1,200,000 | GBP | 1,629,325 | (b) | |||||||||
| Frontier Communications Corp., Senior Notes |
11.000 | % | 9/15/25 | 220,000 | 235,675 | |||||||||||
| Level 3 Financing Inc., Senior Notes |
5.625 | % | 2/1/23 | 1,770,000 | 1,865,137 | |||||||||||
| Oi Brasil Holdings Cooperatief U.A., Senior Notes |
5.750 | % | 2/10/22 | 2,510,000 | 552,200 | *(a)(f) | ||||||||||
| Ooredoo International Finance Ltd., Senior Notes |
4.750 | % | 2/16/21 | 650,000 | 722,183 | (a) | ||||||||||
| Qwest Corp., Senior Notes |
6.750 | % | 12/1/21 | 2,500,000 | 2,750,000 | |||||||||||
| Telecom Italia SpA, Senior Notes |
5.303 | % | 5/30/24 | 5,320,000 | 5,406,450 | (a) | ||||||||||
| Telefonica Emisiones SAU, Senior Notes |
5.134 | % | 4/27/20 | 2,000,000 | 2,221,374 | |||||||||||
| Telefonica Emisiones SAU, Senior Notes |
7.045 | % | 6/20/36 | 2,000,000 | 2,642,802 | |||||||||||
| Verizon Communications Inc., Senior Notes |
5.150 | % | 9/15/23 | 2,500,000 | 2,935,212 | |||||||||||
| Windstream Services LLC, Senior Notes |
7.750 | % | 10/15/20 | 1,330,000 | 1,332,494 | |||||||||||
| Windstream Services LLC, Senior Notes |
7.750 | % | 10/1/21 | 270,000 | 257,850 | |||||||||||
| Windstream Services LLC, Senior Notes |
6.375 | % | 8/1/23 | 200,000 | 174,000 | |||||||||||
|
|
|
|||||||||||||||
| Total Diversified Telecommunication Services |
22,724,702 | |||||||||||||||
|
|
|
|||||||||||||||
| Wireless Telecommunication Services - 4.4% |
||||||||||||||||
| Altice Financing SA, Senior Secured Bonds |
7.500 | % | 5/15/26 | 1,060,000 | 1,073,250 | (a) | ||||||||||
| America Movil SAB de CV, Senior Notes |
5.625 | % | 11/15/17 | 2,050,000 | 2,162,377 | |||||||||||
| America Movil SAB de CV, Senior Notes |
6.125 | % | 3/30/40 | 650,000 | 841,816 | |||||||||||
| Neptune Finco Corp., Senior Notes |
10.125 | % | 1/15/23 | 270,000 | 310,163 | (a) | ||||||||||
| Neptune Finco Corp., Senior Notes |
6.625 | % | 10/15/25 | 760,000 | 820,800 | (a) | ||||||||||
| Neptune Finco Corp., Senior Notes |
10.875 | % | 10/15/25 | 1,360,000 | 1,594,600 | (a) | ||||||||||
| Sprint Communications Inc., Senior Notes |
11.500 | % | 11/15/21 | 1,090,000 | 1,204,450 | |||||||||||
| Sprint Corp., Senior Notes |
7.875 | % | 9/15/23 | 3,410,000 | 3,130,823 | |||||||||||
| Vimpel Communications Via VIP Finance Ireland Ltd. OJSC, Senior Notes |
9.125 | % | 4/30/18 | 1,150,000 | 1,269,706 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Wireless Telecommunication Services |
12,407,985 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL TELECOMMUNICATION SERVICES |
35,132,687 | |||||||||||||||
|
|
|
|||||||||||||||
| UTILITIES - 6.2% | ||||||||||||||||
| Electric Utilities - 3.0% |
||||||||||||||||
| Electricite de France S.A., Junior Subordinated Notes |
5.250 | % | 1/29/23 | 2,500,000 | 2,446,875 | (a)(d)(e) | ||||||||||
| Enel SpA, Junior Subordinated Bonds |
7.750 | % | 9/10/75 | 1,740,000 | GBP | 2,550,073 | (b)(d) | |||||||||
| FirstEnergy Corp., Notes |
7.375 | % | 11/15/31 | 1,930,000 | 2,497,380 | |||||||||||
| State Grid Overseas Investment 2014 Ltd., Senior Notes |
4.125 | % | 5/7/24 | 1,000,000 | 1,117,481 | (b) | ||||||||||
|
|
|
|||||||||||||||
| Total Electric Utilities |
8,611,809 | |||||||||||||||
|
|
|
|||||||||||||||
| Gas Utilities - 0.3% |
||||||||||||||||
| Wales & West Utilities Finance PLC, Senior Secured Bonds |
5.125 | % | 12/2/16 | 650,000 | GBP | 871,911 | (b) | |||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
8
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| Independent Power and Renewable Electricity Producers - 1.1% |
||||||||||||||||
| Calpine Corp., Senior Secured Notes |
7.875 | % | 1/15/23 | 1,280,000 | $ | 1,360,000 | (a) | |||||||||
| Mirant Mid Atlantic LLC, Pass-Through Certificates, Secured Bonds |
10.060 | % | 12/30/28 | 1,948,589 | 1,795,137 | |||||||||||
|
|
|
|||||||||||||||
| Total Independent Power and Renewable Electricity Producers |
3,155,137 | |||||||||||||||
|
|
|
|||||||||||||||
| Multi-Utilities - 1.8% |
||||||||||||||||
| Centrica PLC, Senior Notes |
6.375 | % | 3/10/22 | 1,200,000 | GBP | 2,022,472 | (b) | |||||||||
| Empresas Publicas de Medellin ESP, Senior Notes |
7.625 | % | 7/29/19 | 1,210,000 | 1,394,525 | (a) | ||||||||||
| Veolia Environnement SA, Senior Notes |
6.750 | % | 4/24/19 | 1,200,000 | EUR | 1,594,149 | ||||||||||
|
|
|
|||||||||||||||
| Total Multi-Utilities |
5,011,146 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL UTILITIES |
17,650,003 | |||||||||||||||
|
|
|
|||||||||||||||
| TOTAL CORPORATE BONDS & NOTES |
309,527,778 | |||||||||||||||
|
|
|
|||||||||||||||
| ASSET-BACKED SECURITIES - 1.4% | ||||||||||||||||
| Argent Securities Inc., 2004-W10 A2 |
1.268 | % | 10/25/34 | 740,687 | 724,582 | (d) | ||||||||||
| Asset Backed Funding Certificates, 2003-WMC1 M1 |
1.463 | % | 6/25/33 | 1,181,839 | 1,116,254 | (d) | ||||||||||
| Countrywide Home Equity Loan Trust, 2006-HW 2A1B |
0.592 | % | 11/15/36 | 480,419 | 378,053 | (d) | ||||||||||
| Home Equity Asset Trust, 2004-8 M1 |
1.358 | % | 3/25/35 | 641,516 | 623,754 | (d) | ||||||||||
| Park Place Securities Inc., 2004-WCW1 M2 |
1.508 | % | 9/25/34 | 183,115 | 184,014 | (d) | ||||||||||
| Residential Asset Mortgage Products Inc., 2003-RZ5 A7 |
5.470 | % | 9/25/33 | 211,948 | 218,755 | |||||||||||
| Residential Asset Mortgage Products Inc., 2003-SL1 M1 |
7.348 | % | 4/25/31 | 1,269,638 | 742,264 | (d) | ||||||||||
| Residential Asset Securities Corp., 2003-KS10 AI6 |
4.540 | % | 12/25/33 | 60,873 | 62,611 | (d) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL ASSET-BACKED SECURITIES |
4,050,287 | |||||||||||||||
|
|
|
|||||||||||||||
| COLLATERALIZED MORTGAGE OBLIGATIONS - 0.6% | ||||||||||||||||
| ARM Trust, 2004-5 4A1 |
3.004 | % | 4/25/35 | 301,840 | 293,653 | (d) | ||||||||||
| Bear Stearns ARM Trust, 2005-12 24A1 |
2.813 | % | 2/25/36 | 28,374 | 26,218 | (d) | ||||||||||
| Credit Suisse Mortgage Capital Certificates, 2009-3R 25A1 |
3.207 | % | 7/27/36 | 13,324 | 13,353 | (a)(d) | ||||||||||
| GSMPS Mortgage Loan Trust, 2006-RP1 1A2 |
7.500 | % | 1/25/36 | 234,772 | 253,088 | (a) | ||||||||||
| HarborView Mortgage Loan Trust, 2004-10 4A |
2.967 | % | 1/19/35 | 197,604 | 194,733 | (d) | ||||||||||
| JPMorgan Mortgage Trust, 2005-A5 1A2 |
3.177 | % | 8/25/35 | 855,692 | 849,042 | (d) | ||||||||||
| Washington Mutual Inc., Mortgage Pass-Through Certificates, 2007-HY4 4A1 |
2.466 | % | 9/25/36 | 64,030 | 57,453 | (d) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS |
1,687,540 | |||||||||||||||
|
|
|
|||||||||||||||
| SENIOR LOANS - 0.7% | ||||||||||||||||
| ENERGY - 0.1% | ||||||||||||||||
| Oil, Gas & Consumable Fuels - 0.1% |
||||||||||||||||
| Westmoreland Coal Co., Term Loan B |
7.500 | % | 12/16/20 | 490,206 | 377,459 | (h)(i) | ||||||||||
|
|
|
|||||||||||||||
| HEALTH CARE - 0.5% | ||||||||||||||||
| Health Care Equipment & Supplies - 0.2% |
||||||||||||||||
| Lantheus Medical Imaging Inc., Term Loan |
7.000 | % | 6/30/22 | 594,000 | 540,540 | (h)(i) | ||||||||||
|
|
|
|||||||||||||||
| Health Care Providers & Services - 0.3% |
||||||||||||||||
| Radnet Management Inc., Second Lien Term Loan |
8.000 | % | 3/25/21 | 718,667 | 698,903 | (h)(i) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL HEALTH CARE |
1,239,443 | |||||||||||||||
|
|
|
|||||||||||||||
| UTILITIES - 0.1% | ||||||||||||||||
| Electric Utilities - 0.1% |
||||||||||||||||
| Panda Temple II Power LLC, New Term Loan B |
7.250 | % | 4/3/19 | 389,023 | 363,736 | (h)(i) | ||||||||||
|
|
|
|||||||||||||||
| TOTAL SENIOR LOANS |
1,980,638 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
9
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
RATE | MATURITY DATE |
FACE AMOUNT† |
VALUE | ||||||||||||
| SOVEREIGN BONDS - 2.3% | ||||||||||||||||
| Argentina - 0.3% |
||||||||||||||||
| Republic of Argentina, Senior Notes |
6.875 | % | 4/22/21 | 360,000 | $ | 388,260 | (a) | |||||||||
| Republic of Argentina, Senior Notes |
7.500 | % | 4/22/26 | 340,000 | 370,090 | (a) | ||||||||||
| Republic of Argentina, Senior Notes |
7.625 | % | 4/22/46 | 200,000 | 213,500 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Total Argentina |
971,850 | |||||||||||||||
|
|
|
|||||||||||||||
| Brazil - 0.2% |
||||||||||||||||
| Banco Nacional de Desenvolvimento Economico e Social, Senior Notes |
3.375 | % | 9/26/16 | 560,000 | 560,560 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Chile - 0.6% |
||||||||||||||||
| Banco del Estado de Chile, Senior Notes |
4.125 | % | 10/7/20 | 1,540,000 | 1,655,291 | (a) | ||||||||||
|
|
|
|||||||||||||||
| Peru - 0.2% |
||||||||||||||||
| Republic of Peru, Senior Bonds |
7.840 | % | 8/12/20 | 1,249,000 | PEN | 409,277 | ||||||||||
|
|
|
|||||||||||||||
| United Arab Emirates - 0.5% |
||||||||||||||||
| MDC-GMTN B.V., Senior Notes |
7.625 | % | 5/6/19 | 1,250,000 | 1,459,430 | (b) | ||||||||||
|
|
|
|||||||||||||||
| United Kingdom - 0.5% |
||||||||||||||||
| United Kingdom Treasury Gilt, Bonds |
4.500 | % | 3/7/19 | 1,019,000 | GBP | 1,505,975 | (b) | |||||||||
|
|
|
|||||||||||||||
| TOTAL SOVEREIGN BONDS (Cost - $6,386,855) |
6,562,383 | |||||||||||||||
|
|
|
|||||||||||||||
| U.S. GOVERNMENT & AGENCY OBLIGATIONS - 8.0% | ||||||||||||||||
| U.S. Government Obligations - 8.0% |
||||||||||||||||
| U.S. Treasury Bonds |
3.000 | % | 11/15/45 | 80,000 | 94,183 | |||||||||||
| U.S. Treasury Notes |
1.375 | % | 9/30/20 | 18,460,000 | 18,776,201 | |||||||||||
| U.S. Treasury Notes |
1.125 | % | 6/30/21 | 2,500,000 | 2,510,742 | |||||||||||
| U.S. Treasury Notes |
1.625 | % | 5/15/26 | 1,210,000 | 1,228,150 | |||||||||||
|
|
|
|||||||||||||||
| TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (Cost - $22,384,800) |
22,609,276 | |||||||||||||||
|
|
|
|||||||||||||||
| SHARES | ||||||||||||||||
| COMMON STOCKS - 0.5% | ||||||||||||||||
| FINANCIALS - 0.5% | ||||||||||||||||
| Banks - 0.5% |
||||||||||||||||
| Citigroup Inc. |
32,862 | 1,439,684 | ||||||||||||||
|
|
|
|||||||||||||||
| TELECOMMUNICATION SERVICES - 0.0% | ||||||||||||||||
| Diversified Telecommunication Services - 0.0% |
||||||||||||||||
| Axtel SAB de CV, ADR |
12,516 | 26,138 | *(a) | |||||||||||||
|
|
|
|||||||||||||||
| TOTAL COMMON STOCKS (Cost - $1,427,683) |
1,465,822 | |||||||||||||||
|
|
|
|||||||||||||||
| CONVERTIBLE PREFERRED STOCKS - 0.3% | ||||||||||||||||
| HEALTH CARE - 0.3% | ||||||||||||||||
| Pharmaceuticals - 0.3% |
||||||||||||||||
| Allergan PLC (Cost - $635,061) |
5.500 | % | 755 | 676,737 | ||||||||||||
|
|
|
|||||||||||||||
| PREFERRED STOCKS - 0.4% | ||||||||||||||||
| FINANCIALS - 0.4% | ||||||||||||||||
| Capital Markets - 0.4% |
||||||||||||||||
| State Street Corp. |
5.900 | % | 37,454 | 1,102,271 | (d) | |||||||||||
|
|
|
|||||||||||||||
| Diversified Financial Services - 0.0% |
||||||||||||||||
| Citigroup Capital XIII |
7.122 | % | 3,050 | 79,880 | (d) | |||||||||||
|
|
|
|||||||||||||||
| TOTAL PREFERRED STOCKS |
1,182,151 | |||||||||||||||
|
|
|
|||||||||||||||
See Notes to Schedule of Investments.
10
WESTERN ASSET GLOBAL CORPORATE DEFINED OPPORTUNITY FUND INC.
| Schedule of investments (unaudited) (cont’d) | July 31, 2016 |
| SECURITY‡ |
EXPIRATION DATE |
NOTIONAL AMOUNT |
VALUE | |||||||||||||
| PURCHASED OPTIONS - 0.0% | ||||||||||||||||
| U.S. Dollar/Saudi Arabian Riyal, Call @ 3.84SAR |
1/17/17 | 8,031,000 | $ | 27,474 | ||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS |
349,770,086 | |||||||||||||||
|
|
|
|||||||||||||||
| RATE | SHARES | |||||||||||||||
| SHORT-TERM INVESTMENTS - 2.5% | ||||||||||||||||
| State Street Institutional U.S. Government Money Market Fund, Premier Class |
0.250 | % | 7,119,844 | 7,119,844 | ||||||||||||
|
|
|
|||||||||||||||
| TOTAL INVESTMENTS - 125.9% |
356,889,930 | |||||||||||||||
| Liabilities in Excess of Other Assets - (25.9)% |
(73,408,161 | ) | ||||||||||||||
|
|
|
|||||||||||||||
| TOTAL NET ASSETS - 100.0% |
$ | 283,481,769 | ||||||||||||||
|
|
|
|||||||||||||||
| ‡ | Securities held by the Fund are subject to a lien, granted to the lenders, to the extent of the borrowing outstanding and any additional expenses. |
| † | Face amount denominated in U.S. dollars, unless otherwise noted. |
| * | 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) | Security is exempt from registration under Regulation S of the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted. |
| (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) | The coupon payment on these securities is currently in default as of July 31, 2016. |
| (g) | Illiquid security. |
| (h) | Interest rates disclosed represent the effective rates on senior loans. Ranges in interest rates are attributable to multiple contracts under the same loan. |
| (i) | Senior loans may be considered restricted in that the Fund ordinarily is contractually obligated to receive approval from the agent bank and/or borrower prior to the disposition of a senior loan. |
| # | Aggregate cost for federal income tax purposes is substantially the same. |
Abbreviations used in this schedule:
| ADR | — American Depositary Receipts | |
| ARM | — Adjustable Rate Mortgage | |
| AUD | — Australian Dollar | |
| EUR | — Euro | |
| GBP | — British Pound | |
| OJSC | — Open Joint Stock Company | |
| PEN | — Peruvian Nuevo Sol | |
| SAR | — Saudi Arabian Riyal | |
This Schedule of Investments is unaudited and is intended to provide information about the Fund’s portfolio holdings as of the date of the schedule. Other information regarding the Fund is available in the Fund’s most recent annual or semi-annual shareholder report.
See Notes to Schedule of Investments.
11
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 Fund’s primary investment objective is to provide current income and then to liquidate and distribute substantially all of the Fund’s 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, under normal market conditions, at least 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 investment’s fair value. Investments in open-end funds are valued at the closing net asset value per share of each fund on the day of valuation. 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 Fund’s 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 Atlantic 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 Fund’s 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 issuer’s 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.
12
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 Fund’s 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 Fund’s 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 |
— | $ | 309,527,778 | — | $ | 309,527,778 | ||||||||||
| Asset-Backed Securities |
— | 4,050,287 | — | 4,050,287 | ||||||||||||
| Collateralized Mortgage Obligations |
— | 1,687,540 | — | 1,687,540 | ||||||||||||
| Senior Loans: |
||||||||||||||||
| Energy |
— | — | $ | 377,459 | 377,459 | |||||||||||
| Health Care |
— | 540,540 | 698,903 | 1,239,443 | ||||||||||||
| Utilities |
— | — | 363,736 | 363,736 | ||||||||||||
| Sovereign Bonds |
— | 6,562,383 | — | 6,562,383 | ||||||||||||
| U.S. Government & Agency Obligations |
— | 22,609,276 | — | 22,609,276 | ||||||||||||
| Common Stocks: |
||||||||||||||||
| Financials |
$ | 1,439,684 | — | — | 1,439,684 | |||||||||||
| Telecommunication Services |
— | 26,138 | — | 26,138 | ||||||||||||
| Convertible Preferred Stocks |
676,737 | — | — | 676,737 | ||||||||||||
| Preferred Stocks |
1,182,151 | — | — | 1,182,151 | ||||||||||||
| Purchased Options |
— | 27,474 | — | 27,474 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Long-Term Investments |
$ | 3,298,572 | $ | 345,031,416 | $ | 1,440,098 | $ | 349,770,086 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Short-Term Investments† |
$ | 7,119,844 | — | — | $ | 7,119,844 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Investments |
$ | 10,418,416 | $ | 345,031,416 | $ | 1,440,098 | $ | 356,889,930 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Other Financial Instruments: |
||||||||||||||||
| Forward Foreign Currency Contracts |
— | $ | 4,045,794 | — | $ | 4,045,794 | ||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total |
$ | 10,418,416 | $ | 349,077,210 | $ | 1,440,098 | $ | 360,935,724 | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| 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 |
— | $ | 79,271 | — | $ | 79,271 | ||||||||||
| † | See Schedule of Investments for additional detailed categorizations. |
2. Investments
At July 31, 2016, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:
| Gross unrealized appreciation |
$ | 24,330,513 | ||
| Gross unrealized depreciation |
(16,297,312 | ) | ||
|
|
|
|||
| Net unrealized appreciation |
$ | 8,033,201 | ||
|
|
|
13
Notes to Schedule of Investments (unaudited) (continued)
At July 31, 2016, the Fund had the following open forward foreign currency contracts:
| Currency Purchased |
Currency Sold |
Counterparty |
Settlement Date |
Unrealized Appreciation (Depreciation) |
||||||||||||||||||
| CAD | 784,586 | USD | 611,546 | Bank of America N.A. | 8/12/16 | $ | (10,582 | ) | ||||||||||||||
| EUR | 660,000 | USD | 743,985 | Bank of America N.A. | 8/12/16 | (5,828 | ) | |||||||||||||||
| EUR | 230,000 | USD | 255,928 | Bank of America N.A. | 8/12/16 | 1,308 | ||||||||||||||||
| USD | 37,003,379 | EUR | 32,233,751 | Bank of America N.A. | 8/12/16 | 952,535 | ||||||||||||||||
| EUR | 250,000 | USD | 280,902 | Citibank N.A. | 8/12/16 | (1,297 | ) | |||||||||||||||
| EUR | 640,000 | USD | 717,798 | Citibank N.A. | 8/12/16 | (2,010 | ) | |||||||||||||||
| GBP | 1,130,000 | USD | 1,499,516 | Citibank N.A. | 8/12/16 | (3,818 | ) | |||||||||||||||
| USD | 1,507,208 | EUR | 1,314,559 | Citibank N.A. | 8/12/16 | 36,980 | ||||||||||||||||
| USD | 15,484,033 | GBP | 10,672,373 | Citibank N.A. | 8/12/16 | 1,357,803 | ||||||||||||||||
| EUR | 500,000 | USD | 552,367 | UBS AG | 8/12/16 | 6,842 | ||||||||||||||||
| USD | 644,807 | EUR | 562,143 | UBS AG | 8/12/16 | 16,095 | ||||||||||||||||
| USD | 19,197,454 | GBP | 13,238,802 | UBS AG | 8/12/16 | 1,674,231 | ||||||||||||||||
| USD | 2,109,709 | GBP | 1,630,000 | UBS AG | 8/12/16 | (47,801 | ) | |||||||||||||||
| USD | 625,171 | EUR | 564,537 | Bank of America N.A. | 10/14/16 | (7,935 | ) | |||||||||||||||
|
|
|
|||||||||||||||||||||
| Total |
|
$ | 3,966,523 | |||||||||||||||||||
|
|
|
|||||||||||||||||||||
Abbreviations used in this table:
| CAD | — Canadian Dollar | |
| EUR | — Euro | |
| GBP | — British Pound | |
| USD | — United States Dollar |
14
| ITEM 2. | CONTROLS AND PROCEDURES. |
| (a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s 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 registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s 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/ JANE TRUST | |
| Jane Trust | ||
| Chief Executive Officer |
Date: September 21, 2016
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/ JANE TRUST | |
| Jane Trust | ||
| Chief Executive Officer | ||
Date: September 21, 2016
| By |
/s/ RICHARD F. SENNETT | |
| Richard F. Sennett | ||
| Principal Financial Officer | ||
Date: September 21, 2016