UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-02351

 

 

Western Asset Investment Grade Income Fund Inc.

Exact name of registrant as specified in charter)

 

 

620 Eighth Avenue, 47th Floor, New York, NY 10018

(Address of principal executive offices) (Zip code)

 

 

Marc A. De Oliveira

Franklin Templeton

100 First Stamford Place

Stamford, CT 06902

(Name and address of agent for service)

 

 

Registrant’s telephone number, including area code: (888) 777-0102

Date of fiscal year end: December 31

Date of reporting period: December 31, 2021

 

 

 


ITEM 1.

REPORT TO STOCKHOLDERS.

The Annual Report to Stockholders is filed herewith.


LOGO

 

Annual Report   December 31, 2021

WESTERN ASSET

INVESTMENT GRADE INCOME FUND INC. (PAI)

 

 

 

 

 

 

 

LOGO

 

INVESTMENT PRODUCTS: NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE  VALUE


What’s inside      
Letter from the president     III  
Fund overview     1  
Fund at a glance     6  
Fund performance     7  
Schedule of investments     9  
Statement of assets and liabilities     29  
Statement of operations     30  
Statements of changes in net assets     31  
Financial highlights     32  
Notes to financial statements     33  
Report of independent registered public accounting firm     45  
Additional information     46  
Annual chief executive officer and principal financial officer certifications     53  
Other shareholder communications regarding accounting matters     54  
Summary of information regarding the Fund     55  
Dividend reinvestment plan     71  
Important tax information     73  

Fund objectives

The Fund’s primary investment objective is to seek a high level of current income, consistent with prudent investment risk, through investment in a diversified portfolio of debt securities. To a lesser extent, the Fund may also invest in privately placed debt securities and in certain equity securities. Capital appreciation is a secondary investment objective.

 

 

 II 

   Western Asset Investment Grade Income Fund Inc.


Letter from the president

 

LOGO

Dear Shareholder,

We are pleased to provide the annual report of Western Asset Investment Grade Income Fund Inc. for the twelve-month reporting period ended December 31, 2021. Please read on for a detailed look at prevailing economic and market conditions during the Fund’s reporting period and to learn how those conditions have affected Fund performance.

As always, we remain committed to providing you with excellent service and a full spectrum of investment choices. We also remain committed to supplementing the support you receive from your financial advisor. One way we accomplish this is through our website, www.franklintempleton.com. Here you can gain immediate access to market and investment information, including:

 

 

Fund prices and performance,

 

 

Market insights and commentaries from our portfolio managers, and

 

 

A host of educational resources.

We look forward to helping you meet your financial goals.

 

Sincerely,

 

LOGO

Jane Trust, CFA

President and Chief Executive Officer

January 31, 2022

 

Western Asset Investment Grade Income Fund Inc.  

 

 III 


Fund overview

 

Q. What is the Fund’s investment strategy?

A. The Fund’s primary investment objective is to seek a high level of current income, consistent with prudent investment risk, through investment in a diversified portfolio of debt securities. To a lesser extent, the Fund may also invest in privately placed debt securities and in certain equity securities. Capital appreciation is a secondary investment objective.

The Fund invests at least 80% of its net assets in fixed income securities that are rated in the Baa or BBB categories or above at the time of purchase by one or more Nationally Recognized Statistical Rating Organizations (“NRSROs”) or unrated securities of comparable quality at the time of purchase (as determined by the investment adviser). If a security is rated by multiple NRSROs and receives different ratings, the Fund will treat the security as being rated in the highest rating category received from an NRSRO. In addition, the Fund may invest up to 20% in other fixed income securities, and not more than 25% in securities restricted as to resale. The Fund’s 80% investment policy may be changed by the Board of Directors without shareholder approval upon 60 days’ prior notice to shareholders. In addition, convertible bonds and preferred securities may be treated as “fixed income” securities for purposes of the policy and so, if appropriately rated, would qualify for the 80% test.

At Western Asset Management Company, LLC (“Western Asset”), the Fund’s investment adviser, we utilize a fixed income team approach, with decisions derived from interaction among various investment management sector specialists. The sector teams are comprised of Western Asset’s senior portfolio management personnel, research analysts and an in-house economist. Under this team approach, management of client fixed income portfolios will reflect a consensus of interdisciplinary views within the Western Asset organization. The individuals responsible for development of investment strategy, day-today portfolio management, oversight and coordination of the Fund are S. Kenneth Leech, Ryan K. Brist, Michael C. Buchanan, Dan Alexander, Kurt D. Halvorson and Blanton Y. Keh.

Q. What were the overall market conditions during the Fund’s reporting period?

A. Fixed income markets experienced periods of volatility and, overall, declined over the twelve-month reporting period ended December 31, 2021. Volatility was driven by a number of factors, including the repercussions from the COVID-19 pandemic, rebounding global growth, sharply rising inflation, fluctuating interest rates, and expectations for less accommodative central bank monetary policy. Most spread sectors (non-Treasuries) outperformed similar duration Treasuries, as many investors looked to generate incremental yield in the relatively low interest rate environment.

Short-term U.S. Treasury yields moved sharply higher as the Federal Reserve Board (the “Fed”) telegraphed that it was poised to begin raising interest rates in 2022. The yield for the two-year Treasury note began the reporting period at 0.13% and ended the reporting period at 0.73%. The low of 0.09% occurred on February 5, 2021 and the high of 0.76% took place on December 27, 2021. Long-term U.S. Treasury yields also moved higher, as positive

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 1 

 


Fund overview (cont’d)

 

economic data and rising inflation triggered expectations that the Fed would remove its monetary policy accommodations sooner than previously anticipated. The yield for the ten-year Treasury began the reporting period at 0.93% (equaling its low for the period) and ended the reporting period at 1.52%. The high of 1.74% took place on March 19 and March 31, 2021.

All told, the overall credit market, as represented by the Bloomberg U.S. Credit Indexi, returned -1.08% during the twelve months ended December 31, 2021, as the negative impact from the back up in U.S. Treasury yields outweighed the benefit of modest spread compression. Over the same period, the overall bond market, as measured by the Bloomberg U.S. Aggregate Indexii, returned -1.54%.

Q. How did we respond to these changing market conditions?

A. A number of adjustments were made to the Fund’s portfolio during the reporting period. The Fund reduced duration given our expectations for rising rates. A number of the portfolio’s holdings were tendered including bonds from General Electric and BB-rated securities from Occidental Petroleum and NatWest Group. Additions over the reporting period included increasing exposure to the banking sector (e.g., Bank of America and BPCE) as well as the technology sector (e.g., Dell, Oracle and Taiwan Semiconductor). The Fund also added to its emerging market allocation.

During the reporting period, Treasury futures, which were used to manage the Fund’s duration and yield curve positioning, contributed to performance.

Performance review

For the twelve months ended December 31, 2021, Western Asset Investment Grade Income Fund Inc. returned 0.14% based on its net asset value (“NAV”)iii and 1.88% based on its New York Stock Exchange (“NYSE”) market price per share. The Fund’s unmanaged benchmarks, the Bloomberg U.S. Corporate High Yield Indexiv and the Bloomberg U.S. Credit Index, returned 5.28% and -1.08%, respectively, for the same period. The Lipper Corporate Debt Closed-End Funds BBB-Rated Category Averagev returned -0.15% over the same time frame. Please note that Lipper performance returns are based on each fund’s NAV.

The Fund has a practice of seeking to maintain a relatively stable level of distributions to shareholders. This practice has no impact on the Fund’s investment strategy and may reduce the Fund’s NAV. The Fund’s manager believes the practice helps maintain the Fund’s competitiveness and may benefit the Fund’s market price and premium/discount to the Fund’s NAV.

During the twelve-month period, the Fund made distributions to shareholders totaling $0.56 per share.* The performance table shows the Fund’s twelve-month total return based on its NAV and market price as of December 31, 2021. Past performance is no guarantee of future results.

 

*

For the tax character of distributions paid during the fiscal year ended December 31, 2021, please refer to page 42 of this report.

 

 

  2

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

Performance Snapshot as of December 31, 2021  
Price Per Share   12-Month
Total Return**
 
$15.69 (NAV)     0.14 %† 
$15.63 (Market Price)     1.88 %‡ 

All figures represent past performance and are not a guarantee of future results.

** Total returns are based on changes in NAV or market price, respectively. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

† Total return assumes the reinvestment of all distributions at NAV.

‡ Total return assumes the reinvestment of all distributions in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

Q. What were the leading contributors to performance?

A. The largest contributor to the Fund’s relative performance during the reporting period was its security selection. In particular, holdings in the financials sector, led by an overweight to Intesa Sanpaolo, added to performance. Within the energy sector, an overweight to Western Midstream Partners contributed to performance. In the transportation space, an overweight to Delta Air Lines positively impacted performance.

Another large contributor to the Fund’s performance during the reporting period was its overweight to the energy sector. This was beneficial as the price of oil rallied sharply as the global economy continued to recover. Being underweight to technology, particularly Oracle before the company was downgraded due to shareholder friendly actions, was also beneficial. An underweight to sovereign bonds was positive for performance as this sub-sector was more harshly impacted by rising rates and COVID-19 variant flareups.

Finally, from a ratings perspective, our bias to lower-quality securities was rewarded, as they outperformed their higher-quality counterparts.

Q. What were the leading detractors from performance?

A. The largest detractor from the Fund’s relative performance during the reporting period was its overweight to the banking industry, as it underperformed the benchmark. Security selection within the materials sector was also a headwind for returns, partially due to an overweight in weak-performing Vale SA during the reporting period.

Tactical duration positioning was modestly negative overall in 2021. This positioning was largely beneficial over the first three quarters of 2021. However, those gains were more than offset in the fourth quarter given the Fund’s short duration and its yield curve steepener position during the last three months of the reporting period when the yield curve flattened.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 3 

 


Fund overview (cont’d)

 

Looking for additional information?

The Fund is traded under the symbol “PAI” and its closing market price is available in most newspapers under the NYSE listings. The daily NAV is available online under the symbol “XPAIX” on most financial websites. Barron’s and The Wall Street Journal’s Monday edition both carry closed-end fund tables that provide additional information. In addition, the Fund issues a quarterly press release that can be found on most major financial websites as well as www.franklintempleton.com.

In a continuing effort to provide information concerning the Fund, shareholders may call 1-888-777-0102 (toll free), Monday through Friday from 8:00 a.m. to 5:30 p.m. Eastern Time, for the Fund’s current NAV, market price and other information.

Thank you for your investment in Western Asset Investment Grade Income Fund Inc. As always, we appreciate that you have chosen us to manage your assets and we remain focused on achieving the Fund’s investment goals.

Sincerely,

Western Asset Management Company, LLC

January 21, 2022

RISKS: The Fund is a diversified closed-end management investment company designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objectives. The Fund’s common stock is traded on the New York Stock Exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value. Diversification does not assure against market loss. The Fund’s investments are subject to a number of risks, including interest rate, credit and inflation risks. As interest rates rise, bond prices fall, reducing the value of a fixed income investment’s price. The Fund may invest in high-yield bonds (commonly known as “junk” bonds), which are rated below investment grade and carry more risk than higher-rated securities. To the extent that the Fund invests in asset-backed, mortgage-backed or mortgage-related securities, its exposure to prepayment and extension risks may be greater than investments in other fixed income securities. Leverage may result in greater volatility of NAV and the market price of the shares of the Fund’s common stock and increases a shareholder’s risk of loss. The Fund may invest, to a limited extent, in foreign securities, including emerging or developing markets. Investing in foreign securities is subject to certain risks not associated with domestic investing, such as currency fluctuations and social, political, and economic uncertainties which could result in significant volatility. Emerging market countries tend to have economic, political, and legal systems that are less developed and are less stable than those of more developed countries. The Fund may make significant investments in derivative instruments. Derivative instruments can be illiquid, may disproportionately increase losses, and have a potentially large impact on Fund performance. The Fund may also invest in money market funds, including funds affiliated with the Fund’s manager and subadvisers. For

 

 

  4

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

more information on Fund risks, see Summary of information regarding the Fund - Principal Risk Factors in this report.

Portfolio holdings and breakdowns are as of December 31, 2021 and are subject to change and may not be representative of the portfolio managers’ current or future investments. Please refer to pages 9 through 28 for a list and percentage breakdown of the Fund’s holdings.

The mention of sector breakdowns is for informational purposes only and should not be construed as a recommendation to purchase or sell any securities. The information provided regarding such sectors is not a sufficient basis upon which to make an investment decision. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies discussed should consult their financial professional. Portfolio holdings are subject to change at any time and may not be representative of the portfolio managers’ current or future investments. The Fund’s top five sector holdings (as a percentage of net assets) as of December 31, 2021 were: financials (31.4%), energy (14.8%), industrials (8.8%), communication services (8.6%), and health care (8.1%). The Fund’s portfolio composition is subject to change at any time.

All investments are subject to risk including the possible loss of principal. Past performance is no guarantee of future results. All index performance reflects no deduction for fees, expenses or taxes. Please note that an investor cannot invest directly in an index.

The information provided is not intended to be a forecast of future events, a guarantee of future results or investment advice. Views expressed may differ from those of the firm as a whole.

 

i 

The Bloomberg U.S. Credit Index is an index composed of corporate and non-corporate debt issues that are investment grade (rated Baa3/BBB or higher).

 

ii 

The Bloomberg U.S. Aggregate Index is a broad-based bond index comprised of government, corporate, mortgage-and asset-backed issues, rated investment grade or higher, and having at least one year to maturity.

 

iii 

Net asset value (“NAV”) is calculated by subtracting total liabilities and outstanding preferred stock (if any) from the closing value of all securities held by the Fund (plus all other assets) and dividing the result (total net assets) by the total number of the shares of common stock outstanding. The NAV fluctuates with changes in the market prices of securities in which the Fund has invested. However, the price at which an investor may buy or sell shares of the Fund is the Fund’s market price as determined by supply of and demand for the Fund’s shares.

 

iv 

The Bloomberg U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment grade debt, including corporate and non-corporate sectors. Pay-in-kind (“PIK”) bonds, Eurobonds and debt issues from countries designated as emerging markets are excluded, but Canadian and global bonds (SEC registered) of issuers in non-emerging market countries are included. Original issue zero coupon bonds, step-up coupon structures and 144A securities are also included.

 

v 

Lipper, Inc., a wholly-owned subsidiary of Refinitiv, provides independent insight on global collective investments. Returns are based on the twelve-month period ended December 31, 2021, including the reinvestment of all distributions, including returns of capital, if any, calculated among the 6 funds in the Fund’s Lipper category.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 5 

 


Fund at a glance (unaudited)

 

Investment breakdown (%) as a percent of total investments

 

LOGO

 

The bar graph above represents the Fund’s portfolio as of December 31, 2021 and December 31, 2020, and does not include derivatives, such as futures contracts. The Fund’s portfolio is actively managed. As a result, the composition of its portfolio holdings and sectors is subject to change at any time.

 

 

  6

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


Fund performance (unaudited)

 

 

Net Asset Value       
Average annual total returns1        
Twelve Months Ended 12/31/21      0.14
Five Years Ended 12/31/21      5.87  
Ten Years Ended 12/31/21      6.01  
Cumulative total returns1        
12/31/11 through 12/31/21      79.31

 

Market Price       
Average annual total returns2        
Twelve Months Ended 12/31/21      1.88
Five Years Ended 12/31/21      6.29  
Ten Years Ended 12/31/21      6.10  
Cumulative total returns2        
12/31/11 through 12/31/21      80.81

All figures represent past performance and are not a guarantee of future results. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

 

1 

Assumes the reinvestment of all distributions, including returns of capital, if any, at net asset value.

 

2 

Assumes the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 7 

 


Fund performance (unaudited) (cont’d)

 

Historical performance

Value of $10,000 invested in

Western Asset Investment Grade Income Fund Inc. vs. Bloomberg U.S. Corporate High Yield Index and Bloomberg U.S. Credit Index† — December 2011 - December 2021

LOGO

All figures represent past performance and are not a guarantee of future results. Returns reflect the deduction of all Fund expenses, including management fees, operating expenses, and other Fund expenses. Returns do not reflect the deduction of brokerage commissions or taxes that investors may pay on distributions or the sale of shares.

 

Hypothetical illustration of $10,000 invested in Western Asset Investment Grade Income Fund Inc. on December 31, 2011, assuming the reinvestment of all distributions, including returns of capital, if any, at net asset value and also assuming the reinvestment of all distributions, including returns of capital, if any, in additional shares in accordance with the Fund’s Dividend Reinvestment Plan through December 31, 2021. The hypothetical illustration also assumes a $10,000 investment in the Bloomberg U.S. Corporate High Yield Index and the Bloomberg U.S. Credit Index (together, the “Indices”). The Bloomberg U.S. Corporate High Yield Index covers the universe of fixed-rate, non-investment grade debt, including corporate and non-corporate sectors. Pay-in-kind (“PIK”) bonds, Eurobonds and debt issues from countries designated as emerging markets are excluded, but Canadian and global bonds (SEC registered) of issuers in non-emerging market countries are included. Original issue zero coupon bonds, step-up coupon structures and 144-A securities are also included. The Bloomberg U.S. Credit Index is an index composed of corporate and non-corporate debt issues that are investment grade. The Indices are unmanaged. Please note that an investor cannot invest directly in an index.

 

 

  8

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


Schedule of investments

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate     Maturity
Date
    Face
Amount
    Value  
Corporate Bonds & Notes — 92.7%

 

Communication Services — 8.6%

 

Diversified Telecommunication Services — 2.0%

 

AT&T Inc., Senior Notes

    4.300     2/15/30     $ 80,000     $ 90,132  

AT&T Inc., Senior Notes

    4.500     5/15/35       360,000       416,533  

AT&T Inc., Senior Notes

    6.350     3/15/40       50,000       67,730  

AT&T Inc., Senior Notes

    4.900     6/15/42       150,000       181,089  

AT&T Inc., Senior Notes

    4.800     6/15/44       210,000       251,501  

AT&T Inc., Senior Notes

    4.550     3/9/49       310,000       370,140  

AT&T Inc., Senior Notes

    3.300     2/1/52       120,000       117,854  

AT&T Inc., Senior Notes

    3.500     9/15/53       130,000       131,402  

AT&T Inc., Senior Notes

    3.800     12/1/57       130,000       135,647  

AT&T Inc., Senior Notes

    3.500     2/1/61       70,000       69,054  

British Telecommunications PLC, Senior Notes

    9.625     12/15/30       70,000       102,613  

Corning Inc., Senior Notes

    3.900     11/15/49       130,000       146,096  

Telefonica Emisiones SA, Senior Notes

    7.045     6/20/36       60,000       85,707  

Verizon Communications Inc., Senior Notes

    5.500     3/16/47       630,000       881,227  

Total Diversified Telecommunication Services

 

    3,046,725  

Media — 4.6%

 

CCO Holdings LLC/CCO Holdings Capital Corp., Senior Notes

    4.500     5/1/32       580,000       597,641  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes

    6.384     10/23/35       110,000       142,308  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes

    3.500     3/1/42       80,000       77,734  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes

    6.484     10/23/45       260,000       355,826  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes

    5.375     5/1/47       350,000       418,702  

Charter Communications Operating LLC/Charter Communications Operating Capital Corp., Senior Secured Notes

    3.950     6/30/62       80,000       77,267  

Comcast Corp., Senior Notes

    6.450     3/15/37       220,000       320,733  

Comcast Corp., Senior Notes

    6.950     8/15/37       160,000       242,749  

Comcast Corp., Senior Notes

    6.400     5/15/38       950,000       1,354,471  

DISH DBS Corp., Senior Secured Notes

    5.750     12/1/28       160,000       161,900  (a)  

Fox Corp., Senior Notes

    5.476     1/25/39       510,000       658,903  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 9 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate     Maturity
Date
    Face
Amount
    Value  

Media — continued

 

Time Warner Cable LLC, Senior Secured Notes

    6.550     5/1/37     $ 180,000     $ 235,883  

Time Warner Cable LLC, Senior Secured Notes

    7.300     7/1/38       200,000       283,550  

Time Warner Cable LLC, Senior Secured Notes

    6.750     6/15/39       10,000       13,649  

Time Warner Cable LLC, Senior Secured Notes

    5.500     9/1/41       50,000       60,742  

Time Warner Entertainment Co. LP, Senior Secured Notes

    8.375     3/15/23       180,000       195,242  

Time Warner Entertainment Co. LP, Senior Secured Notes

    8.375     7/15/33       410,000       597,765  

Walt Disney Co., Senior Notes

    6.550     3/15/33       545,000       762,846  

Walt Disney Co., Senior Notes

    7.750     12/1/45       130,000       233,949  

Total Media

                            6,791,860  

Wireless Telecommunication Services — 2.0%

                               

America Movil SAB de CV, Senior Notes

    6.125     3/30/40       850,000       1,194,773  

Sprint Corp., Senior Notes

    7.875     9/15/23       340,000       374,927  

Telefonica Europe BV, Senior Notes

    8.250     9/15/30       230,000       325,161  

T-Mobile USA Inc., Senior Notes

    2.625     2/15/29       110,000       108,540  

T-Mobile USA Inc., Senior Notes

    2.875     2/15/31       80,000       79,146  

T-Mobile USA Inc., Senior Secured Notes

    4.375     4/15/40       60,000       68,703  

T-Mobile USA Inc., Senior Secured Notes

    4.500     4/15/50       210,000       246,139  

T-Mobile USA Inc., Senior Secured Notes

    3.400     10/15/52       230,000       229,367  (a) 

Vodafone Group PLC, Senior Notes

    5.250     5/30/48       210,000       274,186  

Vodafone Group PLC, Senior Notes

    4.250     9/17/50       10,000       11,573  

Total Wireless Telecommunication Services

                            2,912,515  

Total Communication Services

                            12,751,100  
Consumer Discretionary — 4.8%                                

Automobiles — 1.3%

                               

Ford Motor Co., Senior Notes

    3.250     2/12/32       290,000       297,540  

Ford Motor Credit Co. LLC, Senior Notes

    2.700     8/10/26       400,000       404,000  

General Motors Co., Senior Notes

    5.400     10/2/23       130,000       139,205  

General Motors Co., Senior Notes

    6.125     10/1/25       190,000       218,445  

General Motors Co., Senior Notes

    6.600     4/1/36       170,000       230,291  

General Motors Co., Senior Notes

    6.750     4/1/46       270,000       386,791  

Nissan Motor Co. Ltd., Senior Notes

    4.810     9/17/30       200,000       223,912  (a) 

Total Automobiles

                            1,900,184  

Hotels, Restaurants & Leisure — 2.1%

                               

Genting New York LLC/GENNY Capital Inc., Senior Notes

    3.300     2/15/26       550,000       545,170  (a)  

GLP Capital LP/GLP Financing II Inc., Senior Notes

    3.250     1/15/32       40,000       40,281  

Marriott International Inc., Senior Notes

    3.600     4/15/24       200,000       209,270  

 

See Notes to Financial Statements.

 

 

  10

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate     Maturity
Date
    Face
Amount
    Value  

Hotels, Restaurants & Leisure — continued

                               

McDonald’s Corp., Senior Notes

    4.700     12/9/35     $ 150,000     $ 182,930  

McDonald’s Corp., Senior Notes

    4.875     12/9/45       230,000       296,208  

McDonald’s Corp., Senior Notes

    4.450     9/1/48       10,000       12,345  

Melco Resorts Finance Ltd., Senior Notes

    5.375     12/4/29       380,000       369,189  (a)  

Sands China Ltd., Senior Notes

    5.125     8/8/25       450,000       472,579  

Sands China Ltd., Senior Notes

    5.400     8/8/28       200,000       215,597  

Sands China Ltd., Senior Notes

    4.375     6/18/30       200,000       204,363  

Sands China Ltd., Senior Notes

    3.250     8/8/31       330,000       310,528  (a)  

Wynn Macau Ltd., Senior Notes

    5.500     10/1/27       240,000       223,440  (a) 

Total Hotels, Restaurants & Leisure

                            3,081,900  

Household Durables — 0.4%

                               

Lennar Corp., Senior Notes

    5.000     6/15/27       250,000       282,975  

MDC Holdings Inc., Senior Notes

    2.500     1/15/31       100,000       96,867  

MDC Holdings Inc., Senior Notes

    6.000     1/15/43       200,000       253,291  

Total Household Durables

                            633,133  

Internet & Direct Marketing Retail — 0.3%

                               

MercadoLibre Inc., Senior Notes

    2.375     1/14/26       470,000       457,575  

Specialty Retail — 0.7%

                               

Home Depot Inc., Senior Notes

    3.900     12/6/28       590,000       664,963  

Home Depot Inc., Senior Notes

    3.350     4/15/50       50,000       54,673  

Lithia Motors Inc., Senior Notes

    4.625     12/15/27       110,000       115,856  (a)  

Lithia Motors Inc., Senior Notes

    3.875     6/1/29       190,000       194,280  (a)  

Lowe’s Cos. Inc., Senior Notes

    2.800     9/15/41       90,000       87,962  

Total Specialty Retail

                            1,117,734  

Total Consumer Discretionary

                            7,190,526  
Consumer Staples — 3.5%                                

Beverages — 1.6%

                               

Anheuser-Busch Cos. LLC/Anheuser-Busch InBev Worldwide Inc., Senior Notes

    4.900     2/1/46       840,000       1,064,151  

Anheuser-Busch InBev Worldwide Inc., Senior Notes

    4.600     4/15/48       70,000       85,783  

Coca-Cola Co., Senior Notes

    4.125     3/25/40       180,000       213,976  

Coca-Cola Co., Senior Notes

    4.200     3/25/50       110,000       139,889  

Pernod Ricard SA, Senior Notes

    5.500     1/15/42       670,000       910,849  (a)  

Total Beverages

                            2,414,648  

Food Products — 0.1%

                               

Kraft Heinz Foods Co., Senior Notes

    5.000     6/4/42       110,000       137,133  

Tobacco — 1.8%

                               

Altria Group Inc., Senior Notes

    3.800     2/14/24       190,000       199,911  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 11 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate     Maturity
Date
    Face
Amount
    Value  

Tobacco — continued

                               

Altria Group Inc., Senior Notes

    4.400     2/14/26     $ 410,000     $ 452,026  

Altria Group Inc., Senior Notes

    4.800     2/14/29       870,000       982,144  

Philip Morris International Inc., Senior Notes

    4.500     3/20/42       100,000       115,909  

Reynolds American Inc., Senior Notes

    8.125     5/1/40       270,000       393,550  

Reynolds American Inc., Senior Notes

    7.000     8/4/41       320,000       423,927  

Reynolds American Inc., Senior Notes

    5.850     8/15/45       90,000       109,591  

Total Tobacco

                            2,677,058  

Total Consumer Staples

                            5,228,839  
Energy — 14.8%                                

Energy Equipment & Services — 0.1%

                               

Halliburton Co., Senior Notes

    5.000     11/15/45       200,000       239,500  

Oil, Gas & Consumable Fuels — 14.7%

                               

Apache Corp., Senior Notes

    6.000     1/15/37       106,000       129,891  

Apache Corp., Senior Notes

    5.100     9/1/40       20,000       22,632  

Apache Corp., Senior Notes

    5.250     2/1/42       90,000       104,083  

BP Capital Markets America Inc., Senior Notes

    3.410     2/11/26       440,000       469,740  

Cameron LNG LLC, Senior Secured Notes

    3.302     1/15/35       20,000       20,917  (a)  

Cameron LNG LLC, Senior Secured Notes

    3.701     1/15/39       40,000       43,206  (a)  

Cheniere Energy Partners LP, Senior Notes

    3.250     1/31/32       220,000       222,640  (a)  

Chevron USA Inc., Senior Notes

    5.250     11/15/43       150,000       208,055  

ConocoPhillips, Senior Notes

    6.500     2/1/39       810,000       1,178,689  

Continental Resources Inc., Senior Notes

    4.500     4/15/23       400,000       412,684  

Continental Resources Inc., Senior Notes

    2.268     11/15/26       80,000       79,484  (a)  

Continental Resources Inc., Senior Notes

    4.375     1/15/28       140,000       151,589  

Continental Resources Inc., Senior Notes

    2.875     4/1/32       120,000       117,563  (a)  

Continental Resources Inc., Senior Notes

    4.900     6/1/44       90,000       99,889  

Coterra Energy Inc., Senior Notes

    4.375     6/1/24       320,000       338,566  (a) 

Coterra Energy Inc., Senior Notes

    3.900     5/15/27       170,000       182,810  (a) 

Devon Energy Corp., Senior Notes

    5.850     12/15/25       350,000       400,541  

Devon Energy Corp., Senior Notes

    4.500     1/15/30       70,000       75,180  

Devon Energy Corp., Senior Notes

    5.600     7/15/41       320,000       402,186  

Ecopetrol SA, Senior Notes

    5.375     6/26/26       540,000       569,754  

Ecopetrol SA, Senior Notes

    5.875     11/2/51       260,000       244,002  

Energy Transfer LP, Junior Subordinated Notes (6.750% to 5/15/25 then 5 year Treasury Constant Maturity Rate + 5.134%)

    6.750     5/15/25       210,000       210,787  (b)(c) 

Energy Transfer LP, Junior Subordinated Notes (7.125% to 5/15/30 then 5 year Treasury Constant Maturity Rate + 5.306%)

    7.125     5/15/30       560,000       569,800  (b)(c) 

 

See Notes to Financial Statements.

 

 

  12

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security    Rate      Maturity
Date
     Face
Amount
     Value  

Oil, Gas & Consumable Fuels — continued

                                   

Energy Transfer LP, Senior Notes

     4.200      9/15/23      $ 860,000      $ 898,436  

Energy Transfer LP, Senior Notes

     5.250      4/15/29        30,000        34,393  

Energy Transfer LP, Senior Notes

     6.625      10/15/36        20,000        25,424  

Energy Transfer LP, Senior Notes

     5.800      6/15/38        40,000        48,543  

Enterprise Products Operating LLC, Senior Notes

     6.125      10/15/39        320,000        433,469  

Enterprise Products Operating LLC, Senior Notes

     3.300      2/15/53        150,000        149,518  

Enterprise Products Operating LLC, Senior Notes

     3.950      1/31/60        100,000        108,302  

Enterprise Products Operating LLC, Senior Notes (5.375% to 2/15/28 then
3 mo. USD LIBOR + 2.570%)

     5.375      2/15/78        360,000        361,532  (c) 

EOG Resources Inc., Senior Notes

     4.375      4/15/30        240,000        277,613  

Exxon Mobil Corp., Senior Notes

     3.482      3/19/30        200,000        219,212  

Exxon Mobil Corp., Senior Notes

     4.227      3/19/40        140,000        165,579  

KazMunayGas National Co. JSC, Senior Notes

     3.500      4/14/33        200,000        207,894  (a) 

Kinder Morgan Inc., Senior Notes

     7.800      8/1/31        2,000,000        2,847,615  

MPLX LP, Senior Notes

     4.800      2/15/29        60,000        68,573  

MPLX LP, Senior Notes

     4.500      4/15/38        380,000        426,298  

Occidental Petroleum Corp., Senior Notes

     7.500      5/1/31        465,000        612,424  

Parsley Energy LLC/Parsley Finance Corp., Senior Notes

     5.625      10/15/27        120,000        123,037  (a) 

Parsley Energy LLC/Parsley Finance Corp., Senior Notes

     4.125      2/15/28        200,000        202,170  (a) 

Petrobras Global Finance BV, Senior Notes

     7.375      1/17/27        190,000        221,367  

Petrobras Global Finance BV, Senior Notes

     6.900      3/19/49        280,000        298,624  

Petrobras Global Finance BV, Senior Notes

     5.500      6/10/51        100,000        92,948  

Petrobras Global Finance BV, Senior Notes

     6.850      6/5/2115        300,000        298,342  

Petroleos Mexicanos, Senior Notes

     6.875      8/4/26        450,000        495,380  

Petroleos Mexicanos, Senior Notes

     6.625      6/15/35        1,005,000        967,312  

Phillips 66, Senior Notes

     5.875      5/1/42        160,000        220,830  

Qatar Energy, Senior Notes

     3.300      7/12/51        490,000        506,183  (a) 

Range Resources Corp., Senior Notes

     9.250      2/1/26        460,000        496,369  

Shell International Finance BV, Senior Notes

     6.375      12/15/38        250,000        364,688  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     7.850      2/1/26        470,000        574,214  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     7.250      12/1/26        230,000        281,434  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     3.250      5/15/30        130,000        137,175  

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

     5.400      8/15/41        310,000        398,777  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 13 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

Security   Rate     Maturity
Date
    Face
Amount
    Value  

Oil, Gas & Consumable Fuels — continued

 

Transcontinental Gas Pipe Line Co. LLC, Senior Notes

    3.950     5/15/50     $ 30,000     $ 33,698  

Western Midstream Operating LP, Senior Notes

    4.650     7/1/26       660,000       719,037  

Western Midstream Operating LP, Senior Notes

    4.750     8/15/28       680,000       752,376  

Western Midstream Operating LP, Senior Notes

    5.300     2/1/30       90,000       99,092  

Western Midstream Operating LP, Senior Notes

    5.450     4/1/44       80,000       95,714  

Western Midstream Operating LP, Senior Notes

    6.500     2/1/50       270,000       319,685  

Williams Cos. Inc., Senior Notes

    7.500     1/15/31       47,000       63,768  

Williams Cos. Inc., Senior Notes

    7.750     6/15/31       37,000       50,244  

Williams Cos. Inc., Senior Notes

    8.750     3/15/32       610,000       905,942  

Williams Cos. Inc., Senior Notes

    3.500     10/15/51       50,000       50,635  

Total Oil, Gas & Consumable Fuels

                            21,908,554  

Total Energy

                            22,148,054  
Financials — 31.3%                                

Banks — 19.1%

                               

Banco Mercantil del Norte SA, Junior Subordinated Notes (7.500% to 6/27/29 then 10 year Treasury Constant Maturity Rate + 5.470%)

    7.500     6/27/29       200,000       213,083  (a)(b)(c) 

Banco Mercantil del Norte SA, Junior Subordinated Notes (8.375% to 10/14/30 then 10 year Treasury Constant Maturity Rate + 7.760%)

    8.375     10/14/30       250,000       287,229  (a)(b)(c)  

Banco Santander SA, Senior Notes

    3.848     4/12/23       400,000       413,864  

Banco Santander SA, Senior Notes

    3.490     5/28/30       200,000       211,370  

Bank of America Corp., Senior Notes

    5.875     2/7/42       320,000       455,275  

Bank of America Corp., Senior Notes (2.572% to 10/20/31 then SOFR + 1.210%)

    2.572     10/20/32       260,000       261,438  (c)  

Bank of America Corp., Senior Notes (3.458% to 3/15/24 then 3 mo.
USD LIBOR + 0.970%)

    3.458     3/15/25       70,000       73,244  (c)  

Bank of America Corp., Senior Notes (4.083% to 3/20/50 then 3 mo.
USD LIBOR + 3.150%)

    4.083     3/20/51       160,000       192,944  (c)  

Bank of America Corp., Subordinated Notes

    6.110     1/29/37       320,000       431,146  

Bank of America Corp., Subordinated Notes

    7.750     5/14/38       900,000       1,412,465  

Barclays Bank PLC, Subordinated Notes

    7.625     11/21/22       450,000       474,858  

Barclays PLC, Junior Subordinated Notes (6.125% to 6/15/26 then 5 year Treasury Constant Maturity Rate + 5.867%)

    6.125     12/15/25       1,060,000       1,148,351  (b)(c)  

Barclays PLC, Subordinated Notes (5.088% to 6/20/29 then 3 mo.
USD LIBOR + 3.054%)

    5.088     6/20/30       640,000       726,672  (c)  

BNP Paribas SA, Senior Notes (5.198% to 1/10/29 then 3 mo.
USD LIBOR + 2.567%)

    5.198     1/10/30       280,000       326,048  (a)(c) 

 

See Notes to Financial Statements.

 

 

  14

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate     Maturity
Date
    Face
Amount
    Value  

Banks — continued

                               

BPCE SA, Subordinated Notes

    5.150     7/21/24     $ 410,000     $ 444,289  (a) 

BPCE SA, Subordinated Notes (3.582% to 10/19/41 then SOFR + 1.952%)

    3.582     10/19/42       270,000       276,349  (a)(c) 

Citigroup Inc., Senior Notes

    8.125     7/15/39       251,000       425,093  

Citigroup Inc., Senior Notes

    5.875     1/30/42       240,000       339,947  

Citigroup Inc., Subordinated Notes

    5.500     9/13/25       750,000       848,951  

Citigroup Inc., Subordinated Notes

    6.125     8/25/36       404,000       552,617  

Citigroup Inc., Subordinated Notes

    6.675     9/13/43       370,000       558,674  

Commonwealth Bank of Australia, Subordinated Notes

    3.743     9/12/39       220,000       236,207  (a)  

Cooperatieve Rabobank UA, Senior Notes

    5.750     12/1/43       450,000       629,221  

Cooperatieve Rabobank UA, Senior Notes

    5.250     8/4/45       340,000       448,177  

Credit Agricole SA, Junior Subordinated Notes (8.125% to 12/23/25 then USD 5 year ICE Swap Rate + 6.185%)

    8.125     12/23/25       1,040,000       1,235,260  (a)(b)(c) 

Danske Bank A/S, Senior Notes

    5.000     1/12/22       1,780,000       1,781,585   (a) 

Danske Bank A/S, Senior Notes

    5.375     1/12/24       230,000       247,698  (a) 

HSBC Holdings PLC, Junior Subordinated Notes (4.600% to 6/17/31 then 5 year Treasury Constant Maturity Rate + 3.649%)

    4.600     12/17/30       320,000       320,538  (b)(c) 

HSBC Holdings PLC, Junior Subordinated Notes (6.500% to 3/23/28 then USD 5 year ICE Swap Rate + 3.606%)

    6.500     3/23/28       300,000       331,006  (b)(c) 

HSBC Holdings PLC, Senior Notes

    4.950     3/31/30       200,000       234,913  

HSBC Holdings PLC, Subordinated Notes

    4.250     8/18/25       210,000       225,996  

HSBC Holdings PLC, Subordinated Notes

    7.625     5/17/32       70,000       96,702  

ING Bank NV, Subordinated Notes

    5.800     9/25/23       600,000       645,612  (a) 

Intesa Sanpaolo SpA, Senior Notes

    3.125     7/14/22       300,000       303,457  (a) 

Intesa Sanpaolo SpA, Senior Notes

    4.700     9/23/49       200,000       239,717  (a) 

Intesa Sanpaolo SpA, Subordinated Notes (4.198% to 6/1/31 then 1 year Treasury Constant Maturity Rate + 2.600%)

    4.198     6/1/32       200,000       201,941  (a)(c) 

Intesa Sanpaolo SpA, Subordinated Notes (4.950% to 6/1/41 then 1 year Treasury Constant Maturity Rate + 2.750%)

    4.950     6/1/42       200,000       205,820  (a)(c) 

JPMorgan Chase & Co., Junior Subordinated Notes (6.000% to 8/1/23 then 3 mo. USD LIBOR + 3.300%)

    6.000     8/1/23       260,000       271,407  (b)(c) 

JPMorgan Chase & Co., Senior Notes (3.897% to 1/23/48 then 3 mo.
USD LIBOR + 1.220%)

    3.897     1/23/49       50,000       58,067   (c)  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 15 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security    Rate      Maturity
Date
    

Face

Amount

     Value  

Banks — continued

                                   

JPMorgan Chase & Co., Subordinated Notes

     5.625      8/16/43      $ 440,000      $ 616,330  

JPMorgan Chase & Co., Subordinated Notes

     4.950      6/1/45        490,000        639,097  

Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 6/27/24 then USD 5 year ICE Swap Rate + 4.760%)

     7.500      6/27/24        360,000        398,408   (b)(c) 

Lloyds Banking Group PLC, Junior Subordinated Notes (7.500% to 9/27/25 then USD 5 year ICE Swap Rate + 4.496%)

     7.500      9/27/25        370,000        418,317   (b)(c) 

NatWest Group PLC, Junior Subordinated Notes (7.648% to 9/30/31 then 3 mo. USD LIBOR + 2.500%)

     7.648      9/30/31        1,360,000        1,979,426  (b)(c)  

NatWest Group PLC, Subordinated Notes

     6.100      6/10/23        1,010,000        1,077,119  

NatWest Group PLC, Subordinated Notes

     6.000      12/19/23        350,000        380,513  

NatWest Group PLC, Subordinated Notes (3.754% to 11/1/24 then 5 year Treasury Constant Maturity Rate + 2.100%)

     3.754      11/1/29        230,000       
239,920
 (c) 

NatWest Markets NV, Subordinated Notes

     7.750      5/15/23        480,000        520,650  

Santander UK Group Holdings PLC, Subordinated Notes

     4.750      9/15/25        210,000        229,250  (a) 

Standard Chartered PLC, Subordinated Notes

     5.700      3/26/44        410,000        525,196  (a)  

UniCredit SpA, Senior Notes

     6.572      1/14/22        590,000        590,860  (a)  

UniCredit SpA, Subordinated Notes (7.296% to 4/2/29 then USD 5 year ICE Swap Rate + 4.914%)

     7.296      4/2/34        1,040,000        1,247,058  (a)(c) 

Wells Fargo & Co., Senior Notes (5.013% to 4/4/50 then SOFR + 4.502%)

     5.013      4/4/51        260,000        355,759  (c)  

Wells Fargo & Co., Subordinated Notes

     5.375      11/2/43        430,000        569,532  

Wells Fargo & Co., Subordinated Notes

     4.750      12/7/46        580,000        725,586  

Westpac Banking Corp., Subordinated Notes

     4.421      7/24/39        110,000        128,859  

Total Banks

                                28,429,111  

Capital Markets — 5.9%

                                   

Charles Schwab Corp., Junior Subordinated Notes (4.000% to 12/1/30 then 10 year Treasury Constant Maturity Rate + 3.079%)

     4.000      12/1/30        320,000        323,600  (b)(c)  

CI Financial Corp., Senior Notes

     3.200      12/17/30        330,000        338,985  

CI Financial Corp., Senior Notes

     4.100      6/15/51        160,000        173,804  

CME Group Inc., Senior Notes

     5.300      9/15/43        440,000        612,879  

Credit Suisse Group AG, Junior Subordinated Notes (5.250% to 8/11/27 then 5 year Treasury Constant Maturity Rate + 4.889%)

     5.250      2/11/27        1,060,000        1,097,100   (a)(b)(c) 

 

See Notes to Financial Statements.

 

 

  16

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security    Rate      Maturity
Date
     Face
Amount
     Value  

Capital Markets — continued

                                   

Credit Suisse Group AG, Junior Subordinated Notes (7.125% to 7/29/22 then USD 5 year ICE Swap Rate + 5.108%)

     7.125      7/29/22      $  350,000      $ 358,922  (b)(c)(d) 

Credit Suisse Group AG, Senior Notes (4.194% to 4/1/30 then SOFR + 3.730%)

     4.194      4/1/31        250,000        276,005  (a)(c) 

Credit Suisse USA Inc., Senior Notes

     7.125      7/15/32        40,000        57,039  

Goldman Sachs Group Inc., Senior Notes

     6.250      2/1/41        570,000        830,205  

Goldman Sachs Group Inc., Senior Notes (2.650% to 10/21/31 then SOFR + 1.264%)

     2.650      10/21/32        400,000        402,904  (c)  

Goldman Sachs Group Inc., Subordinated Notes

     6.750      10/1/37        640,000        909,003  

Goldman Sachs Group Inc., Subordinated Notes

     5.150      5/22/45        500,000        651,776  

KKR Group Finance Co. III LLC, Senior Notes

     5.125      6/1/44        820,000        1,060,128  (a) 

KKR Group Finance Co. VI LLC, Senior Notes

     3.750      7/1/29        70,000        76,936  (a)  

KKR Group Finance Co. X LLC, Senior Notes

     3.250      12/15/51        90,000        89,913  (a)  

Morgan Stanley, Senior Notes

     6.375      7/24/42        90,000        136,618  

Morgan Stanley, Senior Notes (2.511% to 10/20/31 then SOFR + 1.200%)

     2.511      10/20/32        240,000        240,027  (c)  

Raymond James Financial Inc., Senior Notes

     4.650      4/1/30        70,000        81,256  

Raymond James Financial Inc., Senior Notes

     4.950      7/15/46        90,000        114,832  

UBS AG Stamford, CT, Subordinated Notes

     7.625      8/17/22        340,000        353,186  

UBS Group AG, Junior Subordinated Notes (7.000% to 1/31/24 then USD 5 year ICE Swap Rate + 4.344%)

     7.000      1/31/24        580,000        625,788  (a)(b)(c) 

Total Capital Markets

 

              8,810,906  

Consumer Finance — 0.2%

                                   

Navient Corp., Senior Notes

     6.125      3/25/24        290,000        309,504  

Diversified Financial Services — 2.4%

                                   

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

     4.500      9/15/23        340,000        356,748  

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

     4.875      1/16/24        330,000        351,103  

AerCap Ireland Capital DAC/AerCap Global Aviation Trust, Senior Notes

     3.850      10/29/41        540,000        563,475  

Carlyle Finance LLC, Senior Notes

     5.650      9/15/48        110,000        149,816  (a)  

Carlyle Finance Subsidiary LLC, Senior Notes

     3.500      9/19/29        150,000        160,404  (a)  

Carlyle Holdings II Finance LLC, Senior Notes

     5.625      3/30/43        220,000        287,308  (a) 

Global Aircraft Leasing Co. Ltd., Senior Notes (6.500% Cash or 7.250% PIK)

     6.500      9/15/24        504,692        487,590  (a)(e) 

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 17 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security    Rate      Maturity
Date
     Face
Amount
     Value  

Diversified Financial Services — continued

                                   

ILFC E-Capital Trust I Ltd. GTD ((Highest of 3 mo. USD LIBOR, 10 year Treasury Constant Maturity Rate and 30 year Treasury Constant Maturity Rate) + 1.550%)

     3.370      12/21/65      $ 470,000      $ 387,858  (a)(c) 

ILFC E-Capital Trust II, Ltd. GTD ((Highest of 3 mo. USD LIBOR, 10 year Treasury Constant Maturity Rate and 30 year Treasury Constant Maturity Rate) + 1.800%)

     3.670      12/21/65        270,000        231,525  (a)(c)  

Park Aerospace Holdings Ltd., Senior Notes

     5.250      8/15/22        392,000        400,668  (a)  

Park Aerospace Holdings Ltd., Senior Notes

     5.500      2/15/24        220,000        236,034  (a)  

Total Diversified Financial Services

                                3,612,529  

Insurance — 3.5%

                                   

Allianz SE, Junior Subordinated Notes (3.500% to 4/30/26 then 5 year Treasury Constant Maturity Rate + 2.973%)

     3.500      11/17/25        200,000        200,750  (a)(b)(c) 

Allstate Corp., Junior Subordinated Notes (6.500% to 5/15/37 then 3 mo. USD LIBOR + 2.120%)

     6.500      5/15/57        480,000        630,837  (c)  

American International Group Inc., Junior Subordinated Notes

     6.250      3/15/37        80,000        93,715  

American International Group Inc., Senior Notes

     4.750      4/1/48        70,000        89,384  

Americo Life Inc., Senior Notes

     3.450      4/15/31        80,000        77,929  (a)  

Arthur J Gallagher & Co., Senior Notes

     3.500      5/20/51        70,000        74,100  

AXA SA, Subordinated Notes

     8.600      12/15/30        200,000        288,879  

Everest Reinsurance Holdings Inc., Senior Notes

     3.500      10/15/50        140,000        147,364  

Fidelity & Guaranty Life Holdings Inc., Senior Notes

     5.500      5/1/25        230,000        257,092  (a)  

Liberty Mutual Insurance Co., Subordinated Notes

     7.875      10/15/26        490,000        610,217  (a)  

Massachusetts Mutual Life Insurance Co., Subordinated Notes

     4.900      4/1/77        260,000        341,956  (a)  

MetLife Inc., Junior Subordinated Notes (6.400% to 12/15/36 then 3 mo. USD LIBOR + 2.205%)

     6.400      12/15/36        1,150,000        1,417,045  (c) 

New York Life Insurance Co., Subordinated Notes

     4.450      5/15/69        90,000        115,046  (a)  

Nippon Life Insurance Co., Subordinated Notes (2.750% to 1/21/31 then 5 year Treasury Constant Maturity Rate + 2.653%)

     2.750      1/21/51        200,000        196,308  (a)(c) 

 

See Notes to Financial Statements.

 

 

  18

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security    Rate      Maturity
Date
     Face
Amount
     Value  

Insurance — continued

                                   

Northwestern Mutual Life Insurance Co., Subordinated Notes

     3.625      9/30/59      $ 110,000      $ 121,502  (a)  

Teachers Insurance & Annuity Association of America, Subordinated Notes

     6.850      12/16/39        400,000        598,911  (a)  

Total Insurance

                                5,261,035  

Thrifts & Mortgage Finance — 0.2%

                                   

Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior Notes

     2.875      10/15/26        160,000        159,014  (a)  

Rocket Mortgage LLC/Rocket Mortgage Co-Issuer Inc., Senior Notes

     4.000      10/15/33        140,000        142,015  (a)  

Total Thrifts & Mortgage Finance

                                301,029  

Total Financials

                                46,724,114  
Health Care — 8.1%                                    

Biotechnology — 0.8%

                                   

AbbVie Inc., Senior Notes

     4.550      3/15/35        130,000        156,549  

AbbVie Inc., Senior Notes

     4.050      11/21/39        740,000        850,691  

Gilead Sciences Inc., Senior Notes

     5.650      12/1/41        60,000        82,764  

Gilead Sciences Inc., Senior Notes

     4.750      3/1/46        50,000        63,502  

Total Biotechnology

                                1,153,506  

Health Care Equipment & Supplies — 0.5%

                                   

Abbott Laboratories, Senior Notes

     4.900      11/30/46        90,000        123,341  

Becton Dickinson and Co., Senior Notes

     4.669      6/6/47        410,000        518,253  

Danaher Corp., Senior Notes

     2.800      12/10/51        120,000        118,641  

Total Health Care Equipment & Supplies

                                760,235  

Health Care Providers & Services — 5.5%

                                   

Centene Corp., Senior Notes

     4.250      12/15/27        100,000        104,423  

Centene Corp., Senior Notes

     4.625      12/15/29        360,000        388,868  

Centene Corp., Senior Notes

     3.375      2/15/30        500,000        510,027  

Cigna Corp., Senior Notes

     4.125      11/15/25        340,000        372,103  

Cigna Corp., Senior Notes

     4.800      8/15/38        340,000        418,953  

CVS Health Corp., Senior Notes

     4.100      3/25/25        940,000        1,013,891  

CVS Health Corp., Senior Notes

     4.300      3/25/28        540,000        606,475  

CVS Health Corp., Senior Notes

     4.780      3/25/38        570,000        695,058  

CVS Health Corp., Senior Notes

     5.125      7/20/45        340,000        442,995  

CVS Health Corp., Senior Notes

     5.050      3/25/48        560,000        733,455  

Dartmouth-Hitchcock Health, Secured Bonds

     4.178      8/1/48        100,000        119,019  

DH Europe Finance II Sarl, Senior Notes

     3.400      11/15/49        10,000        10,746  

HCA Inc., Senior Secured Notes

     4.125      6/15/29        210,000        231,301  

HCA Inc., Senior Secured Notes

     5.125      6/15/39        110,000        135,698  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report

   

 

 

 19 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate     Maturity
Date
    Face
Amount
    Value  

Health Care Providers & Services — continued

                               

HCA Inc., Senior Secured Notes

    5.500     6/15/47     $ 220,000     $ 288,570  

HCA Inc., Senior Secured Notes

    5.250     6/15/49       350,000       450,360  

Humana Inc., Senior Notes

    8.150     6/15/38       80,000       129,600  

Humana Inc., Senior Notes

    4.800     3/15/47       150,000       191,169  

Kaiser Foundation Hospitals, Senior Notes

    2.810     6/1/41       80,000       80,584  

Kaiser Foundation Hospitals, Senior Notes

    3.002     6/1/51       80,000       82,532  

Magellan Health Inc., Senior Notes

    4.900     9/22/24       690,000       747,649  

Orlando Health Obligated Group, Senior Notes

    4.089     10/1/48       170,000       201,746  

UnitedHealth Group Inc., Senior Notes

    3.700     12/15/25       160,000       174,138  

UnitedHealth Group Inc., Senior Notes

    3.500     8/15/39       140,000       155,524  

Total Health Care Providers & Services

                            8,284,884  

Pharmaceuticals — 1.3%

                               

Bausch Health Cos. Inc., Senior Notes

    5.000     1/30/28       80,000       73,726  (a) 

Bausch Health Cos. Inc., Senior Notes

    5.250     1/30/30       80,000       70,524  (a) 

Bristol-Myers Squibb Co., Senior Notes

    3.400     7/26/29       910,000       997,385  

Bristol-Myers Squibb Co., Senior Notes

    5.000     8/15/45       250,000       332,822  

Merck & Co. Inc., Senior Notes

    2.750     12/10/51       180,000       178,452  

Teva Pharmaceutical Finance Netherlands III BV, Senior Notes

    7.125     1/31/25       200,000       214,232  

Zoetis Inc., Senior Notes

    4.700     2/1/43       30,000       38,323  

Total Pharmaceuticals

                            1,905,464  

Total Health Care

                            12,104,089  
Industrials — 8.8%                                

Aerospace & Defense — 3.9%

                               

Avolon Holdings Funding Ltd., Senior Notes

    5.125     10/1/23       520,000       547,958  (a) 

Avolon Holdings Funding Ltd., Senior Notes

    3.950     7/1/24       140,000       146,780  (a)  

Avolon Holdings Funding Ltd., Senior Notes

    4.250     4/15/26       530,000       562,195  (a) 

Boeing Co., Senior Notes

    2.800     3/1/24       320,000       328,948  

Boeing Co., Senior Notes

    2.196     2/4/26       180,000       180,104  

Boeing Co., Senior Notes

    3.100     5/1/26       1,400,000       1,460,250  

Boeing Co., Senior Notes

    3.250     2/1/28       370,000       385,854  

Boeing Co., Senior Notes

    5.705     5/1/40       210,000       270,115  

Boeing Co., Senior Notes

    5.805     5/1/50       140,000       189,939  

Huntington Ingalls Industries Inc., Senior Notes

    3.483     12/1/27       200,000       211,992  

L3Harris Technologies Inc., Senior Notes

    4.854     4/27/35       260,000       318,120  

Lockheed Martin Corp., Senior Notes

    4.500     5/15/36       40,000       48,954  

Northrop Grumman Corp., Senior Notes

    7.875     3/1/26       870,000       1,081,582  (a)  

Raytheon Technologies Corp., Senior Notes

    4.625     11/16/48       110,000       141,270  

Total Aerospace & Defense

                            5,874,061  

 

See Notes to Financial Statements.

 

 

  20

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate    

Maturity

Date

   

Face

Amount

    Value  

Airlines — 1.8%

                               

American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes

    5.500     4/20/26     $ 110,000     $ 114,557  (a) 

American Airlines Inc./AAdvantage Loyalty IP Ltd., Senior Secured Notes

    5.750     4/20/29       110,000       117,783  (a) 

Delta Air Lines Inc., Senior Notes

    2.900     10/28/24       540,000       550,961  

Delta Air Lines Inc., Senior Notes

    3.750     10/28/29       150,000       153,885  

Delta Air Lines Inc., Senior Secured Notes

    7.000     5/1/25       260,000       297,516  (a) 

Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes

    4.500     10/20/25       320,000       336,522  (a) 

Delta Air Lines Inc./SkyMiles IP Ltd., Senior Secured Notes

    4.750     10/20/28       180,000       196,701  (a) 

Southwest Airlines Co., Senior Notes

    4.750     5/4/23       510,000       534,265  

Southwest Airlines Co., Senior Notes

    5.125     6/15/27       190,000       217,367  

United Airlines Pass-Through Trust

    4.875     1/15/26       188,580       196,605  

Total Airlines

                            2,716,162  

Building Products — 0.1%

                               

Carrier Global Corp., Senior Notes

    3.577     4/5/50       100,000       106,615  

Commercial Services & Supplies — 0.5%

                               

California Institute of Technology, Senior Notes

    3.650     9/1/2119       110,000       128,551  

Waste Connections Inc., Senior Notes

    4.250     12/1/28       480,000       539,425  

Total Commercial Services & Supplies

                            667,976  

Construction & Engineering — 0.7%

                               

Vinci SA, Senior Notes

    3.750     4/10/29       890,000       973,251  (a) 

Industrial Conglomerates — 0.3%

                               

General Electric Co., Senior Notes

    6.750     3/15/32       200,000       273,091  

General Electric Co., Senior Notes

    6.875     1/10/39       94,000       140,178  

Total Industrial Conglomerates

                            413,269  

Machinery — 0.2%

                               

Caterpillar Inc., Senior Notes

    4.750     5/15/64       220,000       317,002  

Road & Rail — 0.5%

                               

Canadian Pacific Railway Co., Senior Notes

    3.100     12/2/51       320,000       329,698  

Union Pacific Corp., Senior Notes

    4.375     11/15/65       320,000       392,226  

Total Road & Rail

                            721,924  

Trading Companies & Distributors — 0.6%

                               

Aircastle Ltd., Senior Notes

    5.250     8/11/25       630,000       693,337  (a) 

Aviation Capital Group LLC, Senior Notes

    5.500     12/15/24       180,000       197,071  (a) 

Total Trading Companies & Distributors

                            890,408  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 21 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate     Maturity
Date
    Face
Amount
    Value  

Transportation Infrastructure — 0.2%

                               

SMBC Aviation Capital Finance DAC, Senior Notes

    4.125     7/15/23     $ 350,000     $ 364,805  (a) 

Total Industrials

                            13,045,473  
Information Technology — 4.0%                                

Electronic Equipment, Instruments & Components — 0.4%

 

                       

TD SYNNEX Corp., Senior Notes

    1.250     8/9/24       510,000       504,521  (a) 

IT Services — 0.3%

                               

International Business Machines Corp., Senior Notes

    3.500     5/15/29       110,000       119,489  

Kyndryl Holdings Inc., Senior Notes

    4.100     10/15/41       300,000       290,941  (a)  

Total IT Services

                            410,430  

Semiconductors & Semiconductor Equipment — 1.6%

 

                       

Broadcom Inc., Senior Notes

    4.150     11/15/30       266,000       295,246  

Broadcom Inc., Senior Notes

    4.300     11/15/32       370,000       416,347  

Broadcom Inc., Senior Notes

    3.187     11/15/36       14,000       13,997  (a)  

Intel Corp., Senior Notes

    4.900     7/29/45       130,000       173,571  

Intel Corp., Senior Notes

    4.750     3/25/50       10,000       13,350  

Intel Corp., Senior Notes

    4.950     3/25/60       60,000       84,368  

Intel Corp., Senior Notes

    3.200     8/12/61       120,000       123,255  

Micron Technology Inc., Senior Notes

    2.703     4/15/32       140,000       140,400  

Micron Technology Inc., Senior Notes

    3.366     11/1/41       30,000       30,849  

NVIDIA Corp., Senior Notes

    3.500     4/1/40       60,000       67,562  

NVIDIA Corp., Senior Notes

    3.500     4/1/50       190,000       217,110  

NVIDIA Corp., Senior Notes

    3.700     4/1/60       80,000       95,917  

Texas Instruments Inc., Senior Notes

    3.875     3/15/39       270,000       319,703  

TSMC Arizona Corp., Senior Notes

    3.250     10/25/51       350,000       369,585  

Total Semiconductors & Semiconductor Equipment

 

                    2,361,260  

Software — 1.3%

                               

Microsoft Corp., Senior Notes

    4.250     2/6/47       970,000       1,256,997  

Oracle Corp., Senior Notes

    3.950     3/25/51       310,000       322,363  

Oracle Corp., Senior Notes

    4.100     3/25/61       380,000       397,052  

Total Software

                            1,976,412  

Technology Hardware, Storage & Peripherals — 0.4%

 

                       

Apple Inc., Senior Notes

    3.850     8/4/46       340,000       403,885  

Dell International LLC/EMC Corp., Senior Notes

    8.100     7/15/36       120,000       182,874  

Dell International LLC/EMC Corp., Senior Notes

    8.350     7/15/46       30,000       49,982  

Total Technology Hardware, Storage & Peripherals

 

                    636,741  

Total Information Technology

                            5,889,364  

 

See Notes to Financial Statements.

 

 

  22

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate    

Maturity

Date

   

Face

Amount

    Value  
Materials — 5.7%                                

Chemicals — 1.1%

                               

Dow Chemical Co., Senior Notes

    7.375%       11/1/29       $ 800,000       $1,077,488  

Ecolab Inc., Senior Notes

    4.800%       3/24/30       80,000       96,181  

OCP SA, Senior Notes

    3.750%       6/23/31       200,000       194,928  (a) 

Sociedad Quimica y Minera de Chile SA, Senior Notes

    3.500%       9/10/51       240,000       232,847  (a) 

Total Chemicals

                            1,601,444  

Metals & Mining — 4.3%

                               

Anglo American Capital PLC, Senior Notes

    4.000%       9/11/27       500,000       538,008  (a) 

ArcelorMittal SA, Senior Notes

    4.550%       3/11/26       470,000       514,976  

Barrick North America Finance LLC, Senior Notes

    5.700%       5/30/41       50,000       68,119  

Barrick PD Australia Finance Pty Ltd., Senior Notes

    5.950%       10/15/39       180,000       245,595  

First Quantum Minerals Ltd., Senior Notes

    7.250%       4/1/23       340,000       344,343  (a) 

First Quantum Minerals Ltd., Senior Notes

    7.500%       4/1/25       200,000       205,995  (a) 

Glencore Finance Canada Ltd., Senior Notes

    6.900%       11/15/37       430,000       604,711  (a) 

Glencore Finance Canada Ltd., Senior Notes

    5.550%       10/25/42       150,000       191,130  (a) 

Glencore Funding LLC, Senior Notes

    4.125%       3/12/24       530,000       557,575  (a) 

Glencore Funding LLC, Senior Notes

    4.000%       3/27/27       360,000       388,664  (a) 

Glencore Funding LLC, Senior Notes

    3.875%       10/27/27       170,000       183,113  (a) 

Glencore Funding LLC, Senior Notes

    3.375%       9/23/51       70,000       67,577  (a) 

Southern Copper Corp., Senior Notes

    5.250%       11/8/42       470,000       592,386  

Vale Overseas Ltd., Senior Notes

    6.875%       11/21/36       1,148,000       1,527,391  

Yamana Gold Inc., Senior Notes

    4.625%       12/15/27       350,000       378,495  

Yamana Gold Inc., Senior Notes

    2.630%       8/15/31       30,000       28,826  (a) 

Total Metals & Mining

                            6,436,904  

Paper & Forest Products — 0.3%

                               

Georgia-Pacific LLC, Senior Notes

    7.375%       12/1/25       250,000       303,550  

Suzano Austria GmbH, Senior Notes

    3.125%       1/15/32       230,000       222,925  

Total Paper & Forest Products

                            526,475  

Total Materials

                            8,564,823  
Real Estate — 0.6%                                

Equity Real Estate Investment Trusts (REITs) — 0.6%

                               

Diversified Healthcare Trust, Senior Notes

    4.750%       5/1/24       130,000       133,250  

MPT Operating Partnership LP/MPT Finance Corp., Senior Notes

    5.000%       10/15/27       250,000       261,870  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 

 23 

 


Schedule of investments (cont’d)

December 31, 2021

 

Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security   Rate    

Maturity

Date

   

Face

Amount

    Value  

Equity Real Estate Investment Trusts (REITs) — continued

 

               

MPT Operating Partnership LP/MPT Finance Corp., Senior Notes

    4.625     8/1/29     $ 170,000     $ 179,644  

Welltower Inc., Senior Notes

    4.125     3/15/29       320,000       358,237  

Total Real Estate

                            933,001  
Utilities — 2.5%                                

Electric Utilities — 2.5%

                               

CenterPoint Energy Houston Electric LLC, Senior Secured Bonds

    4.500     4/1/44       210,000       264,223  

Comision Federal de Electricidad, Senior Notes

    3.348     2/9/31       200,000       196,454  (a)  

Edison International, Junior Subordinated Notes (5.375% to 3/15/26 then 5 year Treasury Constant Maturity Rate + 4.698%)

    5.375     3/15/26       150,000       157,327  (b)(c)  

Exelon Corp., Senior Notes

    4.050     4/15/30       120,000       133,468  

FirstEnergy Corp., Senior Notes

    4.400     7/15/27       310,000       334,133  

FirstEnergy Corp., Senior Notes

    7.375     11/15/31       830,000       1,122,077  

Jersey Central Power & Light Co., Senior Notes

    4.300     1/15/26       100,000       108,542  (a)  

MidAmerican Energy Co., First Mortgage Bonds

    3.650     4/15/29       150,000       165,445  

Pacific Gas and Electric Co., First Mortgage Bonds

    3.300     8/1/40       20,000       18,580  

Pacific Gas and Electric Co., First Mortgage Bonds

    4.950     7/1/50       170,000       185,581  

Southern California Edison Co., First Mortgage Bonds

    4.125     3/1/48       310,000       348,561  

Virginia Electric & Power Co., Senior Notes

    8.875     11/15/38       390,000       689,271  

Total Utilities

                            3,723,662  

Total Corporate Bonds & Notes (Cost — $119,198,986)

 

                    138,303,045  
Sovereign Bonds — 4.1%                                

Argentina — 0.5%

                               

Argentine Republic Government International Bond, Senior Notes

    1.000     7/9/29       35,342       12,900  

Argentine Republic Government International Bond, Senior Notes, Step bond (0.500% to 7/9/23 then 0.750%)

    0.500     7/9/30       127,826       45,060  

Argentine Republic Government International Bond, Senior Notes, Step bond (1.125% to 7/9/22 then 1.500%)

    1.125     7/9/35       412,973       132,671  

Provincia de Buenos Aires, Senior Notes, Step bond (3.900% to 9/1/22 then 5.250%)

    3.900     9/1/37       1,353,938       580,501  (a) 

Total Argentina

                            771,132  

 

See Notes to Financial Statements.

 

 

  24

    Western Asset Investment Grade Income Fund Inc. 2021 Annual Report


Western Asset Investment Grade Income Fund Inc.

 

(Percentages shown based on Fund net assets)

 

Security    Rate     

Maturity

Date

    

Face

Amount

     Value  

Canada — 0.7%

                                   

Province of Quebec Canada, Senior Notes, Step bond

     7.970%        7/22/36      $ 650,000      $ 1,065,740  

Chile — 0.3%

                                   

Chile Government International Bond, Senior Notes

     2.550%        7/27/33        200,000        194,950  

Chile Government International Bond, Senior Notes

     3.100%        5/7/41        200,000        196,100  

Total Chile

                                391,050  

Colombia — 0.6%

                                   

Colombia Government International Bond, Senior Notes

     4.500%        3/15/29        870,000        892,681  

Ghana — 0.2%

                                   

Ghana Government International Bond, Senior Notes

     8.950%        3/26/51        310,000        249,169  (a) 

Indonesia — 0.2%

                                   

Indonesia Government International Bond, Senior Notes

     4.350%        1/11/48        240,000        275,454  

Kenya — 0.3%

                                   

Republic of Kenya Government International Bond, Senior Notes

     8.000%        5/22/32        460,000        503,659  (a) 

Mexico — 0.4%

                                   

Mexico Government International Bond, Senior Notes

     4.280%        8/14/41        200,000        207,750  

Mexico Government International Bond, Senior Notes

     4.350%        1/15/47        360,000        374,944  

Total Mexico

                                582,694  

Qatar — 0.5%

                                   

Qatar Government International Bond, Senior Notes

     3.375%        3/14/24        410,000        429,799  (a)  

Qatar Government International Bond, Senior Notes

     4.817%        3/14/49        270,000        354,772  (a)  

Total Qatar

                                784,571  

United Arab Emirates — 0.3%

                                   

Abu Dhabi Government International Bond, Senior Notes

     4.125%        10/11/47        440,000        528,096  (a) 

Uruguay — 0.1%

                                   

Uruguay Government International Bond, Senior Notes

     4.975%        4/20/55        70,000        92,051  

Total Sovereign Bonds (Cost — $5,682,638)

 

                       6,136,297  

 

See Notes to Financial Statements.

 

Western Asset Investment Grade Income Fund Inc. 2021 Annual Report    

 

 25