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
|
811-08777
|
|
CREDIT SUISSE HIGH YIELD BOND FUND
|
(Exact name of registrant as
specified in charter)
|
|
Eleven Madison Avenue, New York, New York
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|
10010
|
(Address of principal executive
offices)
|
|
(Zip code)
|
|
J. Kevin Gao, Esq.
Credit Suisse High Yield Bond Fund
Eleven Madison Avenue
New York, New York 10010
|
(Name and address of agent for
service)
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|
Registrants telephone number, including
area code:
|
(212) 325-2000
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|
|
Date of fiscal year end:
|
October 31st
|
|
|
Date of reporting period:
|
November 1,
2007 to October 31, 2008
|
|
|
|
|
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Item 1.
Reports to Stockholders.
Credit Suisse High Yield Bond Fund
Eleven Madison Avenue
New York, NY 10010
Trustees
Enrique R. Arzac
Chairman of the Board
Terry Fires Bovarnick
James Cattano
Lawrence J. Fox
Steven Rappaport
Officers
George R. Hornig
Chief Executive Officer and President
Martha B. Metcalf
Chief Investment Officer
Emidio Morizio
Chief Compliance Officer
J. Kevin Gao
Chief Legal Officer, Senior Vice President
and Secretary
Michael A. Pignataro
Chief Financial Officer
Cecilia Chau
Treasurer
Investment Adviser
Credit Suisse Asset Management, LLC
Eleven Madison Avenue
New York, NY 10010
Administrator and Custodian
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
Shareholder Servicing Agent
Computershare Trust Company, N.A.
P.O. Box 43078
Providence, RI 02940-3078
Legal Counsel
Willkie Farr & Gallagher LLP
787 7th Avenue
New York, NY 10019
Independent Registered Public Accounting Firm
PricewaterhouseCoopers LLP
100 East Pratt St.
Baltimore, Maryland 21202
Credit Suisse
High Yield Bond Fund
ANNUAL REPORT
October 31, 2008
Credit Suisse High Yield Bond Fund
Annual Investment Adviser's Report
October 31, 2008 (unaudited)
December 1, 2008
Dear Shareholder:
Performance Summary
11/1/07 10/31/08
Fund & Benchmark
|
|
Performance
|
|
Total Return (based on NAV)
1
|
|
|
(42.45
|
)%
|
|
Total Return (based on market value)
1
|
|
|
(38.20
|
)%
|
|
Merrill Lynch US High Yield Master II Constrained Index
2
|
|
|
(26.23
|
)%
|
|
Market Review: Spreads widen to record levels
For the twelve months ended October 31, 2008, credit markets, including high yield, were volatile. Concerns over subprime mortgages and shelved leveraged buyout deals in 2007 expanded to become questions on overall credit conditions.
The market experienced significant sell-offs in September and October of this year as financial market weakness deepened and losses were experienced across the board from equities to bonds. According to Merrill Lynch, roughly half of the global asset indexes they track posted their worst-ever returns during the month of October. The high yield sector was no exception as the Merrill Lynch US High Yield Master II Constrained Index posted unprecedented losses of -8.11% and -16.46% for September and October, respectively. All told, the Merrill Lynch US High Yield Master II Constrained benchmark posted returns of -26.23% for the annual period ended in October.
High yield spreads widened 1127 basis points versus the Treasury market, and ended the year at +1567 bps, the widest-ever month-end spread level in the history of the Merrill Lynch index. Yields ended the period at 18.80%.
Securities in all ratings classes posted negative returns during the twelve-month period ended October 31, 2008. CCC-rated securities continued to underperform, returning -36.62% for the period, while BB-rated securities outperformed the broad market, despite returning -21.79%.
Corporate bond default rates, as reported by Moody's Investor Services, rose from 1.07% to 2.82%. In conjunction with high yield spreads, the Merrill Lynch distress ratio (defined as a proportion of bonds trading over 1,000 bps) also increased, reaching 71.8%. Finally, in the most recent Federal Loan Officers Survey, the net percentage of respondents reporting tightening standards increased to 74.5% for small companies, and 83.6% for large and medium size firms.
Strategic Review and Outlook: We will remain selective going forward
For the annual period ended October 31, 2008, as would be expected for a leveraged fund in a declining market environment, the Fund underperformed the benchmark based on both NAV and market price. Superior security selection in consumer products and an underweight in the banking sector contributed positively to returns, but security selection in the forestry-paper, broadcast, cable and gaming sectors hurt relative returns. The impact of the ongoing credit crisis on high yield bond values caused the Fund to deleverage in order to meet applicable asset coverage requirements, and, this further hurt Fund performance.
Recent market conditions were characterized by unprecedented volatility as valuation considerations continued to take a backseat to the unwinding of risk positions across the financial markets. Additionally, while valuations have certainly become more attractive, the process of recapitalizing banks and brokers will take some time. Furthermore, uncertainty over this process has weighed heavily on the global macroeconomic environment.
Credit Suisse High Yield Bond Fund
Annual Investment Adviser's Report (continued)
October 31, 2008 (unaudited)
While we believe recent policy initiatives should ultimately help to stabilize the financial markets, we expect conditions to stay volatile as liquidity remains limited and balance sheet repair continues. Going forward, we anticipate that our portfolio strategy will remain selective paring back riskier issuers where possible and conserving cash. We remain relatively positive on several issuers in the industrial and commercial space sectors. In contrast, we remain cautious with respect to consumer-driven and more cyclical industries, and have sought to limit our exposures in those sectors.
|
|
|
|
|
Martha Metcalf
Chief Investment Officer*
|
|
George Hornig
Chief Executive Officer and President**
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|
|
High yield bonds are lower-quality bonds that are also known as "junk bonds." Such bonds entail greater risks than those found in higher-rated securities.
In addition to historical information, this report contains forward-looking statements that may concern, among other things, domestic and foreign market, industry and economic trends and developments and government regulation and their potential impact on the Fund's investments. These statements are subject to risks and uncertainties and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.
* Martha B. Metcalf is a Managing Director of Credit Suisse Asset Management, LLC ("Credit Suisse") and head of the U.S. High Yield Management Team. She has served in these capacities since 2005. From 2000 until 2005, she was a Managing Director and Portfolio Manager of Global High Yield Bonds, and head of a global high yield business with responsibility for total return, as well as structured portfolios at Invesco. Prior to her tenure at Invesco, Ms. Metcalf served for over ten years at JPMorgan Investment Management, where she was Vice President and Portfolio Manager for High Yield Corporate Bonds.
** George Hornig is a Managing Director of Credit Suisse. He is the Co-Chief Operating Officer of Asset Management and Head of Asset Management Americas. Mr. Hornig has been associated with Credit Suisse since 1999.
1
Assuming reinvestment of dividends of $0.41 per share.
2
The Merrill Lynch US High Yield Master II Constrained Index is an unmanaged index that tracks the performance of below investment-grade U.S. dollar-denominated corporate bonds issued in the U.S. domestic market, where each issuer's allocation is limited to 2% of the index. Investors cannot invest directly in an index.
Credit Suisse High Yield Bond Fund
Annual Investment Adviser's Report
October 31, 2008 (unaudited)
Top Ten Holdings
(% of net assets as of 10/31/08)
Security Description
1.
|
|
Texas Competitive Electric Holdings Co.
10.25
% 11/1/15
|
|
3.11
%
|
|
2.
|
|
General Motors Acceptance Corp.
7.25
% 3/2/11
|
|
2.00
%
|
|
3.
|
|
Intelsat, Ltd
9.25
% 8/15/14
|
|
1.73
%
|
|
4.
|
|
The AES Corp.
8
% 10/15/17
|
|
1.48
%
|
|
5.
|
|
Sprint Nextel Corp.
6
% 12/1/16
|
|
1.44
%
|
|
6.
|
|
Ford Motor Credit Co.
7
% 10/1/13
|
|
1.38
%
|
|
7.
|
|
Nextel Communications
5.95
% 3/15/14
|
|
1.23
%
|
|
8.
|
|
Dynegy Holdings Inc.
8.375
% 5/1/16
|
|
1.17
%
|
|
9.
|
|
Atlantic Broadband Finance, LLC
9.375
% 1/15/14
|
|
1.17
%
|
|
10.
|
|
Frontier Communications Corp.
6.625
% 3/15/15
|
|
1.11
%
|
|
Credit Quality Breakdown
(% of total investments as of 10/31/08)
BBB
|
|
|
1.0
|
%
|
|
BB
|
|
|
20.3
|
|
|
B
|
|
|
56.0
|
|
|
CCC
|
|
|
21.4
|
|
|
CC
|
|
|
0.1
|
|
|
D
|
|
|
0.4
|
|
|
NR
|
|
|
0.8
|
|
|
Total
|
|
|
100.0
|
%
|
|
1
Credit Suisse High Yield Bond Fund
Average Annual Returns
October 31, 2008 (unaudited)
|
|
1 Year
|
|
3 Years
|
|
5 Years
|
|
Since
Inception
|
|
Net Asset Value (NAV)
|
|
|
(42.45
|
)%
|
|
|
(11.17
|
)%
|
|
|
(3.07
|
)%
|
|
|
(2.02
|
)%
|
|
Market Value
|
|
|
(38.20
|
)%
|
|
|
(16.79
|
)%
|
|
|
(6.32
|
)%
|
|
|
(3.45
|
)%
|
|
Credit Suisse currently waives fees and/or reimburses expenses, without which performance would be lower. Waivers and/or reimbursements are subject to change and may be discontinued at any time. Returns represent past performance. Total investment return at net asset value is based on changes in the net asset value of fund shares and assumes reinvestment of dividends and distributions, if any. Total investment return at market value is based on changes in the market price at which the fund's shares traded on the stock exchange during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the fund's dividend reinvestment program. Because the fund's shares trade in the stock market based on investor demand, the fund may trade at a price higher or lower than its NAV. Therefore, returns are calculated based on share price and NAV.
Past performance is no guarantee of future results.
The current performance of the fund may be lower or higher than the figures shown. The fund's yield, return and market price and NAV will fluctuate. Performance information current to the most recent month-end is available by calling 800-293-1232.
2
Credit Suisse High Yield Bond Fund
Schedule of Investments
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
(134.6%)
|
|
|
|
Aerospace & Defense
(1.9%)
|
|
|
|
$
|
725
|
|
|
BE Aerospace, Inc., Senior Unsecured Notes (Callable 07/01/13 @ $104.25)
|
|
(BB+, Ba3)
|
|
07
/01/18
|
|
|
8.500
|
|
|
$
|
625,313
|
|
|
|
625
|
|
|
Hawker Beechcraft Acquisition Co., Global Company Guaranteed Notes (Callable 04/01/11 @ $104.44)
|
|
(B-, B3)
|
|
04
/01/15
|
|
|
8.875
|
|
|
|
365,625
|
|
|
|
1,275
|
|
|
Hawker Beechcraft Acquisition Co., Global Company Guaranteed Notes (Callable 04/01/12 @ $104.88)
|
|
(B-, Caa1)
|
|
04
/01/17
|
|
|
9.750
|
|
|
|
720,375
|
|
|
|
625
|
|
|
TransDigm, Inc., Global Company Guaranteed Notes (Callable 07/15/09 @ $105.81)
|
|
(B-, B3)
|
|
07
/15/14
|
|
|
7.750
|
|
|
|
503,125
|
|
|
|
|
|
|
|
|
|
|
|
2,214,438
|
|
|
Agriculture
(0.9%)
|
|
|
|
|
1,075
|
|
|
Southern States Cooperative, Inc., Rule 144A, Senior Notes (Callable 11/01/08 @ $104.00)
|
|
(B-, B3)
|
|
11
/01/10
|
|
|
11.000
|
|
|
|
1,037,375
|
|
|
Auto Loans
(6.5%)
|
|
|
|
|
1,225
|
|
|
Ford Motor Credit Co. LLC, Global Senior Unsecured Notes
|
|
(B-, B2)
|
|
06
/15/10
|
|
|
7.875
|
|
|
|
823,325
|
|
|
|
2,900
|
|
|
Ford Motor Credit Co. LLC, Global Senior Unsecured Notes
|
|
(B-, B2)
|
|
10
/01/13
|
|
|
7.000
|
|
|
|
1,607,899
|
|
|
|
325
|
|
|
Ford Motor Credit Co. LLC, Senior Unsecured Notes
|
|
(B-, B2)
|
|
08
/10/11
|
|
|
9.875
|
|
|
|
204,912
|
|
|
|
1,225
|
|
|
Ford Motor Credit Co. LLC, Senior Unsecured Notes
|
|
(B-, B2)
|
|
12
/15/16
|
|
|
8.000
|
|
|
|
671,712
|
|
|
|
1,175
|
|
|
GMAC LLC, Debentures (Callable 01/05/09 @ $100.00)
|
|
(B-, Caa1)
|
|
04
/01/11
|
|
|
6.000
|
|
|
|
662,236
|
|
|
|
3,775
|
|
|
GMAC LLC, Senior Unsecured Notes
|
|
(B-, Caa1)
|
|
03
/02/11
|
|
|
7.250
|
|
|
|
2,324,131
|
|
|
|
75
|
|
|
GMAC LLC, Senior Unsecured Notes
|
|
(B-, Caa1)
|
|
12
/15/11
|
|
|
6.000
|
|
|
|
42,357
|
|
|
|
2,455
|
|
|
GMAC LLC, Senior Unsecured Notes
|
|
(B-, Caa1)
|
|
12
/01/14
|
|
|
6.750
|
|
|
|
1,241,044
|
|
|
|
|
|
|
|
|
|
|
|
7,577,616
|
|
|
Auto Parts & Equipment
(4.1%)
|
|
|
|
|
975
|
|
|
Altra Industrial Motion, Inc., Global Senior Secured Notes (Callable 12/01/08 @ $104.50)
|
|
(B+, B1)
|
|
12
/01/11
|
|
|
9.000
|
|
|
|
882,375
|
|
|
|
775
|
|
|
American Axle & Manufacturing, Inc., Company Guaranteed Notes (Callable 03/01/12 @ $103.94)
|
|
(B, B2)
|
|
03
/01/17
|
|
|
7.875
|
|
|
|
244,125
|
|
|
|
1,200
|
|
|
American Tire Distributors Holdings, Inc., Global Senior Notes (Callable 04/01/09 @ $105.38)
|
|
(CCC+, Caa1)
|
|
04
/01/13
|
|
|
10.750
|
|
|
|
930,000
|
|
|
|
1,123
|
|
|
Goodyear Tire & Rubber Co., Global Senior Unsecured Notes (Callable 07/01/10 @ $104.50)
|
|
(BB-, Ba3)
|
|
07
/01/15
|
|
|
9.000
|
|
|
|
898,400
|
|
|
|
750
|
|
|
Lear Corp., Series B, Global Company Guaranteed Notes (Callable 12/01/10 @ $104.25)
|
|
(B-, B3)
|
|
12
/01/13
|
|
|
8.500
|
|
|
|
288,750
|
|
|
|
1,225
|
|
|
Stanadyne Corp., Series 1, Global Senior Subordinated Notes (Callable 08/15/09 @ $105.00)
|
|
(B-, B3)
|
|
08
/15/14
|
|
|
10.000
|
|
|
|
949,375
|
|
|
|
525
|
|
|
Tenneco, Inc., Global Company Guaranteed Notes (Callable 11/15/09 @ $104.31)
|
|
(B, B3)
|
|
11
/15/14
|
|
|
8.625
|
|
|
|
250,687
|
|
|
|
193
|
|
|
Visteon Corp., Global Senior Unsecured Notes
|
|
(CCC+, Caa2)
|
|
08
/01/10
|
|
|
8.250
|
|
|
|
112,905
|
|
|
|
498
|
|
|
Visteon Corp., Rule 144A, Senior Unsecured Notes (Callable 12/31/13 @ $105.00)
|
|
(CCC+, Caa1)
|
|
12
/31/16
|
|
|
12.250
|
|
|
|
171,810
|
|
|
|
|
|
|
|
|
|
|
|
4,728,427
|
|
|
Automotive
(1.7%)
|
|
|
|
|
1,970
|
|
|
Ford Motor Co., Global Senior Unsecured Notes
|
|
(CCC, Caa1)
|
|
07
/16/31
|
|
|
7.450
|
|
|
|
630,400
|
|
|
|
925
|
|
|
General Motors Corp., Global Senior Unsecured Notes
|
|
(B-, Caa3)
|
|
01
/15/11
|
|
|
7.200
|
|
|
|
376,938
|
|
|
|
2,750
|
|
|
General Motors Corp., Senior Unsecured Notes
|
|
(B-, Caa3)
|
|
07
/15/13
|
|
|
7.125
|
|
|
|
941,875
|
|
|
|
|
|
|
|
|
|
|
|
1,949,213
|
|
|
Beverages
(0.5%)
|
|
|
|
|
675
|
|
|
Constellation Brands, Inc., Company Guaranteed Notes
|
|
(BB-, Ba3)
|
|
09
/01/16
|
|
|
7.250
|
|
|
|
563,625
|
|
|
Brokerage
(0.5%)
|
|
|
|
|
775
|
|
|
E*TRADE Financial Corp., Global Senior Notes (Callable 06/15/09 @ $104.00)
|
|
(B, Ba3)
|
|
06
/15/11
|
|
|
8.000
|
|
|
|
585,125
|
|
|
Building & Construction
(1.1%)
|
|
|
|
|
1,425
|
|
|
Ashton Woods USA/Finance, Global Company Guaranteed Notes (Callable 10/01/10 @ $104.75) ø
|
|
(D, C)
|
|
10
/01/15
|
|
|
9.500
|
|
|
|
292,125
|
|
|
|
625
|
|
|
K Hovnanian Enterprises, Inc., Global Company Guaranteed Notes
|
|
(CCC, Caa1)
|
|
01
/15/16
|
|
|
6.250
|
|
|
|
190,625
|
|
|
|
900
|
|
|
Standard Pacific Corp., Global Company Guaranteed Notes
|
|
(B-, B2)
|
|
08
/15/15
|
|
|
7.000
|
|
|
|
544,500
|
|
|
|
1,000
|
|
|
William Lyon Homes, Inc., Company Guaranteed Notes (Callable 04/15/09 @ $105.38)
|
|
(CCC+, Caa2)
|
|
04
/01/13
|
|
|
10.750
|
|
|
|
245,000
|
|
|
|
|
|
|
|
|
|
|
|
1,272,250
|
|
|
Building Materials
(4.9%)
|
|
|
|
|
1,000
|
|
|
Associated Materials, Inc., Global Senior Discount Notes (Callable 03/01/09 @ $105.62) +
|
|
(CCC, Caa2)
|
|
03
/01/14
|
|
|
0.000
|
|
|
|
545,000
|
|
|
|
1,375
|
|
|
Building Materials Corp. of America, Global Secured Notes (Callable 08/01/09 @ $103.88)
|
|
(B+, B3)
|
|
08
/01/14
|
|
|
7.750
|
|
|
|
955,625
|
|
|
|
1,150
|
|
|
Coleman Cable, Inc., Global Company Guaranteed Notes (Callable 10/01/09 @ $104.94)
|
|
(B+, B2)
|
|
10
/01/12
|
|
|
9.875
|
|
|
|
825,125
|
|
|
|
750
|
|
|
CPG International I, Inc., Global Company Guaranteed Notes (Callable 07/01/09 @ $105.25)
|
|
(B, B3)
|
|
07
/01/13
|
|
|
10.500
|
|
|
|
487,500
|
|
|
See Accompanying Notes to Financial Statements.
3
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
|
|
|
|
Building Materials
|
|
|
|
$
|
500
|
|
|
Dayton Superior Corp., Company Guaranteed Notes (Callable 11/17/08 @ $100.00)
|
|
(CCC+, Caa1)
|
|
06
/15/09
|
|
|
13.000
|
|
|
$
|
311,250
|
|
|
|
625
|
|
|
General Cable Corp., Global Company Guaranteed Notes (Callable 04/01/09 @ $102.00) #
|
|
(B+, B1)
|
|
04
/01/15
|
|
|
6.258
|
|
|
|
365,625
|
|
|
|
325
|
|
|
Norcraft Cos. LP, Global Company Guaranteed Notes (Callable 11/01/08 @ $104.50)
|
|
(B+, B1)
|
|
11
/01/11
|
|
|
9.000
|
|
|
|
284,375
|
|
|
|
750
|
|
|
Norcraft Holdings, Global Senior Discount Notes (Callable 11/17/08 @ $104.88)
|
|
(B-, B3)
|
|
09
/01/12
|
|
|
9.750
|
|
|
|
618,750
|
|
|
|
825
|
|
|
Nortek, Inc., Global Senior Subordinated Notes (Callable 09/01/09 @ $104.25)
|
|
(CCC, Caa1)
|
|
09
/01/14
|
|
|
8.500
|
|
|
|
301,125
|
|
|
|
1,000
|
|
|
NTK Holdings, Inc., Global Senior Discount Notes (Callable 09/01/09 @ $105.38) +
|
|
(CCC, Caa2)
|
|
03
/01/14
|
|
|
0.000
|
|
|
|
305,000
|
|
|
|
525
|
|
|
Ply Gem Industries, Inc., Global Company Guaranteed Notes (Callable 02/15/09 @ $102.25) §
|
|
(CCC+, Caa2)
|
|
02
/15/12
|
|
|
9.000
|
|
|
|
186,375
|
|
|
|
750
|
|
|
Ply Gem Industries, Inc., Global Senior Secured Notes (Callable 04/01/11 @ $105.88)
|
|
(B, B2)
|
|
06
/15/13
|
|
|
11.750
|
|
|
|
498,750
|
|
|
|
|
|
|
|
|
|
|
|
5,684,500
|
|
|
Chemicals
(5.5%)
|
|
|
|
|
1,000
|
|
|
Chemtura Corp., Company Guaranteed Notes
|
|
(BB, Ba2)
|
|
06
/01/16
|
|
|
6.875
|
|
|
|
630,000
|
|
|
|
1,200
|
|
|
Koppers Holdings, Inc., Global Senior Discount Notes (Callable 11/15/09 @ $104.94) +
|
|
(B-, B2)
|
|
11
/15/14
|
|
|
0.000
|
|
|
|
966,000
|
|
|
|
1,125
|
|
|
Momentive Performance Materials, Inc., Global Company Guaranteed Notes (Callable 12/01/10 @ $104.88)
|
|
(B, B3)
|
|
12
/01/14
|
|
|
9.750
|
|
|
|
635,625
|
|
|
|
1,050
|
|
|
Momentive Performance Materials, Inc., Global Company Guaranteed Notes (Callable 12/01/11 @ $105.75)
|
|
(CCC+, Caa2)
|
|
12
/01/16
|
|
|
11.500
|
|
|
|
456,750
|
|
|
|
275
|
|
|
Nalco Co., Global Company Guaranteed Notes (Callable 11/15/08 @ $104.50)
|
|
(B-, B3)
|
|
11
/15/13
|
|
|
9.000
|
|
|
|
258,048
|
|
|
|
1,275
|
|
|
Nalco Finance Holdings, Inc., Global Senior Discounted Notes (Callable 02/01/09 @ $104.50) +
|
|
(B, B3)
|
|
02
/01/14
|
|
|
0.000
|
|
|
|
1,026,375
|
|
|
|
1,125
|
|
|
PolyOne Corp., Senior Unsecured Notes
|
|
(B+, B1)
|
|
05
/01/12
|
|
|
8.875
|
|
|
|
888,750
|
|
|
|
1,175
|
|
|
Reichhold Industries, Inc., Rule 144A, Senior Notes (Callable 08/15/10 @ $104.50)
|
|
(B+, B2)
|
|
08
/15/14
|
|
|
9.000
|
|
|
|
1,028,125
|
|
|
|
675
|
|
|
Terra Capital, Inc., Series B, Global Company Guaranteed Notes (Callable 02/01/12 @ $103.50)
|
|
(BB, B1)
|
|
02
/01/17
|
|
|
7.000
|
|
|
|
577,125
|
|
|
|
|
|
|
|
|
|
|
|
6,466,798
|
|
|
Computer Hardware
(0.4%)
|
|
|
|
|
825
|
|
|
Activant Solutions, Inc., Global Company Guaranteed Notes (Callable 05/01/11 @ $104.75)
|
|
(CCC+, Caa1)
|
|
05
/01/16
|
|
|
9.500
|
|
|
|
507,375
|
|
|
Consumer Products
(2.9%)
|
|
|
|
|
950
|
|
|
AAC Group Holding Corp., Rule 144A, Senior Unsecured Notes (Callable 12/08/08 @ $105.13)
|
|
(CCC+, Caa1)
|
|
10
/01/12
|
|
|
10.250
|
|
|
|
907,250
|
|
|
|
1,625
|
|
|
Amscan Holdings, Inc., Global Senior Subordinated Notes (Callable 05/01/09 @ $104.38)
|
|
(CCC+, Caa1)
|
|
05
/01/14
|
|
|
8.750
|
|
|
|
1,064,375
|
|
|
|
675
|
|
|
Jarden Corp., Company Guaranteed Notes (Callable 05/01/12 @ $103.75)
|
|
(B, B3)
|
|
05
/01/17
|
|
|
7.500
|
|
|
|
506,250
|
|
|
|
940
|
|
|
Prestige Brands, Inc., Global Senior Subordinated Notes (Callable 11/10/08 @ $104.63)
|
|
(B-, B3)
|
|
04
/15/12
|
|
|
9.250
|
|
|
|
878,900
|
|
|
|
|
|
|
|
|
|
|
|
3,356,775
|
|
|
Consumer/Commercial/Lease Financing
(0.2%)
|
|
|
|
|
760
|
|
|
Residential Capital LLC, Rule 144A, Secured Notes (Callable 05/15/10 @ $104.81)
|
|
(CCC-, Ca)
|
|
05
/15/15
|
|
|
9.625
|
|
|
|
193,800
|
|
|
Diversified Capital Goods
(3.3%)
|
|
|
|
|
925
|
|
|
Esco Corp., Rule 144A, Company Guaranteed Notes (Callable 12/15/08 @ $102.00) #
|
|
(B, B2)
|
|
12
/15/13
|
|
|
6.694
|
|
|
|
707,625
|
|
|
|
100
|
|
|
Esco Corp., Rule 144A, Company Guaranteed Notes (Callable 12/15/10 @ $104.31)
|
|
(B, B2)
|
|
12
/15/13
|
|
|
8.625
|
|
|
|
80,500
|
|
|
|
1,300
|
|
|
RBS Global & Rexnord Corp., Global Company Guaranteed Notes (Callable 08/01/10 @ $104.75)
|
|
(B-, B3)
|
|
08
/01/14
|
|
|
9.500
|
|
|
|
903,500
|
|
|
|
750
|
|
|
Sensus Metering Systems, Global Senior Subordinated Notes (Callable 12/15/08 @ $104.31)
|
|
(B-, B3)
|
|
12
/15/13
|
|
|
8.625
|
|
|
|
618,750
|
|
|
|
1,025
|
|
|
Titan International, Inc., Global Company Guaranteed Notes
|
|
(B-, Caa1)
|
|
01
/15/12
|
|
|
8.000
|
|
|
|
917,375
|
|
|
|
1,138
|
|
|
TriMas Corp., Global Company Guaranteed Notes (Callable 06/15/09 @ $103.29)
|
|
(B-, B3)
|
|
06
/15/12
|
|
|
9.875
|
|
|
|
631,590
|
|
|
|
|
|
|
|
|
|
|
|
3,859,340
|
|
|
Electric - Generation
(11.1%)
|
|
|
|
|
1,325
|
|
|
Dynegy Holdings, Inc., Global Senior Unsecured Notes
|
|
(B, B2)
|
|
06
/01/15
|
|
|
7.500
|
|
|
|
973,875
|
|
|
|
1,825
|
|
|
Dynegy Holdings, Inc., Global Senior Unsecured Notes
|
|
(B, B2)
|
|
05
/01/16
|
|
|
8.375
|
|
|
|
1,359,625
|
|
|
|
275
|
|
|
Dynegy Holdings, Inc., Global Senior Unsecured Notes
|
|
(B, B2)
|
|
06
/01/19
|
|
|
7.750
|
|
|
|
185,625
|
|
|
|
1,175
|
|
|
Edison Mission Energy, Global Senior Unsecured Notes
|
|
(BB-, B1)
|
|
05
/15/17
|
|
|
7.000
|
|
|
|
935,594
|
|
|
|
300
|
|
|
Edison Mission Energy, Global Senior Unsecured Notes
|
|
(BB-, B1)
|
|
05
/15/19
|
|
|
7.200
|
|
|
|
226,500
|
|
|
|
438
|
|
|
Midwest Generation LLC, Series B, Global Pass Thru Certificates
|
|
(BB+, Baa3)
|
|
01
/02/16
|
|
|
8.560
|
|
|
|
391,156
|
|
|
|
1,425
|
|
|
Mirant Americas Generation LLC, Senior Unsecured Notes
|
|
(B-, B3)
|
|
10
/01/21
|
|
|
8.500
|
|
|
|
1,004,625
|
|
|
|
25
|
|
|
Mirant Americas Generation, LLC, Senior Unsecured Notes
|
|
(B-, B3)
|
|
05
/01/11
|
|
|
8.300
|
|
|
|
23,063
|
|
|
|
447
|
|
|
Mirant Mid Atlantic LLC, Series B, Global Pass Thru Certificates
|
|
(BB, Ba1)
|
|
06
/30/17
|
|
|
9.125
|
|
|
|
402,538
|
|
|
|
350
|
|
|
NRG Energy, Inc., Company Guaranteed Notes (Callable 01/15/12 @ $103.69)
|
|
(B, B1)
|
|
01
/15/17
|
|
|
7.375
|
|
|
|
303,625
|
|
|
|
550
|
|
|
NRG Energy, Inc., Company Guaranteed Notes (Callable 02/01/11 @ $103.69)
|
|
(B, B1)
|
|
02
/01/16
|
|
|
7.375
|
|
|
|
475,750
|
|
|
See Accompanying Notes to Financial Statements.
4
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
|
|
|
|
Electric - Generation
|
|
|
|
$
|
100
|
|
|
Reliant Energy, Inc., Senior Unsecured Notes
|
|
(B+, B1)
|
|
06
/15/14
|
|
|
7.625
|
|
|
$
|
77,500
|
|
|
|
175
|
|
|
Reliant Energy, Inc., Senior Unsecured Notes
|
|
(B+, B1)
|
|
06
/15/17
|
|
|
7.875
|
|
|
|
134,750
|
|
|
|
4,725
|
|
|
Texas Competitive Electric Holdings Co. LLC, Series A, Rule 144A, Company Guaranteed Notes
(Callable 11/01/11 @ $105.13)
|
|
(CCC, B3)
|
|
11
/01/15
|
|
|
10.250
|
|
|
|
3,626,437
|
|
|
|
1,175
|
|
|
Texas Competitive Electric Holdings Co. LLC, Series B, Rule 144A, Company Guaranteed Notes
(Callable 11/01/11 @ $105.13)
|
|
(CCC, B3)
|
|
11
/01/15
|
|
|
10.250
|
|
|
|
901,812
|
|
|
|
2,225
|
|
|
The AES Corp., Global Senior Unsecured Notes
|
|
(BB-, B1)
|
|
10
/15/17
|
|
|
8.000
|
|
|
|
1,724,375
|
|
|
|
175
|
|
|
The AES Corp., Senior Unsecured Notes
|
|
(BB-, B1)
|
|
03
/01/14
|
|
|
7.750
|
|
|
|
142,625
|
|
|
|
|
|
|
|
|
|
|
|
12,889,475
|
|
|
Electric - Integrated
(0.7%)
|
|
|
|
|
925
|
|
|
PNM Resources, Inc., Unsecured Notes
|
|
(BB-, Ba2)
|
|
05
/15/15
|
|
|
9.250
|
|
|
|
763,125
|
|
|
Electronics
(3.4%)
|
|
|
|
|
1,375
|
|
|
Amkor Technology, Inc., Global Senior Notes (Callable 05/15/09 @ $103.88)
|
|
(B+, B1)
|
|
05
/15/13
|
|
|
7.750
|
|
|
|
857,656
|
|
|
|
111
|
|
|
Ampex Corp., Secured Notes ^ø
|
|
(NR, NR)
|
|
09
/30/09
|
|
|
12.000
|
|
|
|
100,099
|
|
|
|
225
|
|
|
Freescale Semiconductor, Inc., Global Company Guaranteed Notes (Callable 12/15/10 @ $104.44)
|
|
(B-, B2)
|
|
12
/15/14
|
|
|
8.875
|
|
|
|
101,250
|
|
|
|
2,325
|
|
|
Freescale Semiconductor, Inc., Senior Subordinated Notes
|
|
(B-, B3)
|
|
12
/15/16
|
|
|
10.125
|
|
|
|
924,188
|
|
|
|
275
|
|
|
Jabil Circuit, Inc., Global Senior Unsecured Notes
|
|
(BB+, Ba1)
|
|
03
/15/18
|
|
|
8.250
|
|
|
|
210,375
|
|
|
|
1,000
|
|
|
Sanmina-SCI Corp., Global Company Guaranteed Notes (Callable 03/01/09 @ $103.38)
|
|
(B-, B3)
|
|
03
/01/13
|
|
|
6.750
|
|
|
|
685,000
|
|
|
|
250
|
|
|
Sanmina-SCI Corp., Senior Subordinated Notes (Callable 03/01/11 @ $104.06)
|
|
(B-, B3)
|
|
03
/01/16
|
|
|
8.125
|
|
|
|
158,750
|
|
|
|
1,200
|
|
|
Viasystems, Inc., Global Senior Unsecured Notes (Callable 01/15/09 @ $105.25)
|
|
(B+, Caa1)
|
|
01
/15/11
|
|
|
10.500
|
|
|
|
942,000
|
|
|
|
|
|
|
|
|
|
|
|
3,979,318
|
|
|
Energy - Exploration & Production
(7.1%)
|
|
|
|
|
1,125
|
|
|
Berry Petroleum Co., Senior Subordinated Notes (Callable 11/01/11 @ $104.13)
|
|
(B+, B3)
|
|
11
/01/16
|
|
|
8.250
|
|
|
|
748,125
|
|
|
|
975
|
|
|
Chaparral Energy, Inc., Global Company Guaranteed Notes (Callable 02/01/12 @ $104.44)
|
|
(B-, Caa1)
|
|
02
/01/17
|
|
|
8.875
|
|
|
|
502,125
|
|
|
|
150
|
|
|
Chesapeake Energy Corp., Company Guaranteed Notes
|
|
(BB, Ba3)
|
|
07
/15/13
|
|
|
7.625
|
|
|
|
128,250
|
|
|
|
300
|
|
|
Chesapeake Energy Corp., Company Guaranteed Notes
|
|
(BB, Ba3)
|
|
12
/15/18
|
|
|
7.250
|
|
|
|
228,000
|
|
|
|
1,450
|
|
|
Chesapeake Energy Corp., Global Company Guaranteed Notes (Callable 01/15/09 @ $103.44)
|
|
(BB, Ba3)
|
|
01
/15/16
|
|
|
6.875
|
|
|
|
1,170,875
|
|
|
|
1,000
|
|
|
Encore Acquisition Co., Company Guaranteed Notes (Callable 12/01/10 @ $103.63)
|
|
(B, B1)
|
|
12
/01/17
|
|
|
7.250
|
|
|
|
662,500
|
|
|
|
450
|
|
|
Forest Oil Corp., Rule 144A, Company Guaranteed Notes (Callable 06/15/12 @ $103.63)
|
|
(B+, B1)
|
|
06
/15/19
|
|
|
7.250
|
|
|
|
308,250
|
|
|
|
975
|
|
|
Hilcorp Energy I, Rule 144A, Senior Unsecured Notes (Callable 06/01/11 @ $104.50)
|
|
(BB-, B3)
|
|
06
/01/16
|
|
|
9.000
|
|
|
|
716,625
|
|
|
|
800
|
|
|
Mariner Energy, Inc., Company Guaranteed Notes (Callable 05/15/12 @ $104.00)
|
|
(B+, B3)
|
|
05
/15/17
|
|
|
8.000
|
|
|
|
476,000
|
|
|
|
1,350
|
|
|
Petrohawk Energy Corp., Global Company Guaranteed Notes (Callable 07/15/10 @ $104.56)
|
|
(B, B3)
|
|
07
/15/13
|
|
|
9.125
|
|
|
|
1,046,250
|
|
|
|
1,400
|
|
|
Plains Exploration & Production Co., Company Guaranteed Notes (Callable 06/15/11 @ $103.88)
|
|
(BB, B1)
|
|
06
/15/15
|
|
|
7.750
|
|
|
|
1,029,000
|
|
|
|
900
|
|
|
Range Resources Corp., Company Guaranteed Notes (Callable 10/01/12 @ $103.75)
|
|
(BB, Ba3)
|
|
10
/01/17
|
|
|
7.500
|
|
|
|
731,250
|
|
|
|
775
|
|
|
Swift Energy Co, Company Guaranteed Notes (Callable 06/01/12 @ $103.56)
|
|
(BB-, B1)
|
|
06
/01/17
|
|
|
7.125
|
|
|
|
543,469
|
|
|
|
|
|
|
|
|
|
|
|
8,290,719
|
|
|
Environmental
(0.8%)
|
|
|
|
|
1,100
|
|
|
Waste Services, Inc., Global Senior Subordinated Notes (Callable 04/15/09 @ $104.75)
|
|
(B-, Caa1)
|
|
04
/15/14
|
|
|
9.500
|
|
|
|
885,500
|
|
|
Food & Drug Retailers
(1.5%)
|
|
|
|
|
1,925
|
|
|
Duane Reade, Inc., Global Company Guaranteed Notes (Callable 08/01/09 @ $102.44)
|
|
(CCC-, Caa3)
|
|
08
/01/11
|
|
|
9.750
|
|
|
|
1,164,625
|
|
|
|
75
|
|
|
Stater Brothers Holdings, Inc., Global Company Guaranteed Notes (Callable 04/15/11 @ $103.88)
|
|
(B+, B2)
|
|
04
/15/15
|
|
|
7.750
|
|
|
|
61,875
|
|
|
|
575
|
|
|
Stater Brothers Holdings, Inc., Global Company Guaranteed Notes (Callable 06/15/09 @ $102.03)
|
|
(B+, B2)
|
|
06
/15/12
|
|
|
8.125
|
|
|
|
514,625
|
|
|
|
|
|
|
|
|
|
|
|
1,741,125
|
|
|
Food - Wholesale
(1.2%)
|
|
|
|
|
650
|
|
|
Dole Food Co., Inc., Global Company Guaranteed Notes
|
|
(B-, Caa1)
|
|
05
/01/09
|
|
|
8.625
|
|
|
|
588,250
|
|
|
|
175
|
|
|
Dole Food Co., Inc., Global Company Guaranteed Notes (Callable 03/15/09 @ $102.22)
|
|
(B-, Caa1)
|
|
03
/15/11
|
|
|
8.875
|
|
|
|
121,625
|
|
|
|
1,050
|
|
|
Smithfield Foods, Inc., Senior Unsecured Notes
|
|
(BB-, B3)
|
|
07
/01/17
|
|
|
7.750
|
|
|
|
666,750
|
|
|
|
|
|
|
|
|
|
|
|
1,376,625
|
|
|
See Accompanying Notes to Financial Statements.
5
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
|
|
|
|
Forestry & Paper
(4.1%)
|
|
|
|
$
|
478
|
|
|
Boise Cascade LLC, Global Company Guaranteed Notes (Callable 10/15/09 @ $103.56)
|
|
(BB-, B2)
|
|
10
/15/14
|
|
|
7.125
|
|
|
$
|
270,070
|
|
|
|
1,600
|
|
|
Cellu Tissue Holdings, Inc., Global Secured Notes (Callable 03/15/09 @ $100.00)
|
|
(B, B2)
|
|
03
/15/10
|
|
|
9.750
|
|
|
|
1,288,000
|
|
|
|
250
|
|
|
Georgia-Pacific Corp., Debentures
|
|
(B+, B2)
|
|
06
/15/15
|
|
|
7.700
|
|
|
|
175,000
|
|
|
|
750
|
|
|
Georgia-Pacific Corp., Global Senior Notes
|
|
(B+, B2)
|
|
01
/15/24
|
|
|
8.000
|
|
|
|
480,000
|
|
|
|
300
|
|
|
Georgia-Pacific Corp., Rule 144A, Company Guaranteed Notes (Callable 01/15/12 @ $103.56)
|
|
(BB-, Ba3)
|
|
01
/15/17
|
|
|
7.125
|
|
|
|
210,000
|
|
|
|
800
|
|
|
Graphic Packaging International Corp., Global Senior Subordinated Notes (Callable 08/15/09 @ $103.17)
|
|
(B-, B3)
|
|
08
/15/13
|
|
|
9.500
|
|
|
|
552,000
|
|
|
|
625
|
|
|
Newark Group, Inc., Global Senior Subordinated Notes (Callable 03/15/09 @ $104.88)
|
|
(CCC+, Caa1)
|
|
03
/15/14
|
|
|
9.750
|
|
|
|
184,375
|
|
|
|
675
|
|
|
NewPage Corp., Global Company Guaranteed Notes (Callable 05/01/09 @ $106.00)
|
|
(CCC+, B3)
|
|
05
/01/13
|
|
|
12.000
|
|
|
|
401,625
|
|
|
|
1,475
|
|
|
Smurfit-Stone Container, Global Senior Unsecured Notes (Callable 07/01/09 @ $101.40)
|
|
(B-, B3)
|
|
07
/01/12
|
|
|
8.375
|
|
|
|
759,625
|
|
|
|
1,125
|
|
|
Verso Paper Holdings LLC, Series B, Global Company Guaranteed Notes (Callable 08/01/11 @ $105.69)
|
|
(CCC+, B3)
|
|
08
/01/16
|
|
|
11.375
|
|
|
|
455,625
|
|
|
|
75
|
|
|
Verso Paper Holdings LLC, Series B, Global Senior Secured Notes (Callable 08/01/10 @ $104.56)
|
|
(B+, B2)
|
|
08
/01/14
|
|
|
9.125
|
|
|
|
40,125
|
|
|
|
|
|
|
|
|
|
|
|
4,816,445
|
|
|
Gaming
(6.4%)
|
|
|
|
|
1,125
|
|
|
Buffalo Thunder Development Authority, Rule 144A, Secured Notes (Callable 12/15/10 @ $104.69)
|
|
(B, B3)
|
|
12
/15/14
|
|
|
9.375
|
|
|
|
399,375
|
|
|
|
200
|
|
|
Caesars Entertainment, Inc., Global Company Guaranteed Notes
|
|
(B-, Caa2)
|
|
03
/15/10
|
|
|
7.875
|
|
|
|
114,000
|
|
|
|
1,975
|
|
|
Caesars Entertainment, Inc., Global Company Guaranteed Notes
|
|
(B-, Caa2)
|
|
05
/15/11
|
|
|
8.125
|
|
|
|
711,000
|
|
|
|
1,225
|
|
|
CCM Merger, Inc., Rule 144A, Notes (Callable 08/01/09 @ $104.00)
|
|
(B-, Caa1)
|
|
08
/01/13
|
|
|
8.000
|
|
|
|
728,875
|
|
|
|
290
|
|
|
Choctaw Resort Development Enterprise, Rule 144A, Senior Notes (Callable 11/15/11 @ $103.63)
|
|
(BB-, B1)
|
|
11
/15/19
|
|
|
7.250
|
|
|
|
166,750
|
|
|
|
575
|
|
|
FireKeepers Development Authority, Rule 144A, Senior Secured Notes (Callable 05/01/12 @ $110.50)
|
|
(B, B3)
|
|
05
/01/15
|
|
|
13.875
|
|
|
|
411,125
|
|
|
|
625
|
|
|
Fontainebleau Las Vegas Capital Corp., Rule 144A, Second Mortgage Notes (Callable 06/15/11 @ $105.13)
|
|
(CCC, Caa1)
|
|
06
/15/15
|
|
|
10.250
|
|
|
|
87,500
|
|
|
|
225
|
|
|
Herbst Gaming, Inc., Global Company Guaranteed Notes (Callable 06/01/09 @ $102.03) ø
|
|
(D, C)
|
|
06
/01/12
|
|
|
8.125
|
|
|
|
2,250
|
|
|
|
750
|
|
|
Inn of the Mountain Gods Resort & Casino, Global Senior Secured Notes (Callable 11/15/08 @ $103.00)
|
|
(B, B3)
|
|
11
/15/10
|
|
|
12.000
|
|
|
|
333,750
|
|
|
|
1,250
|
|
|
Jacobs Entertainment, Inc., Global Company Guaranteed Notes (Callable 06/15/10 @ $104.88)
|
|
(B, B3)
|
|
06
/15/14
|
|
|
9.750
|
|
|
|
543,750
|
|
|
|
950
|
|
|
Majestic Star Casino LLC, Senior Secured Notes (Callable 10/15/09 @ $100.00) ø
|
|
(D, Caa3)
|
|
10
/15/10
|
|
|
9.500
|
|
|
|
375,250
|
|
|
|
1,275
|
|
|
Mashantucket Western Pequot Tribe, Rule 144A, Bonds (Callable 11/15/11 @ $104.25)
|
|
(BB-, Ba2)
|
|
11
/15/15
|
|
|
8.500
|
|
|
|
707,625
|
|
|
|
1,150
|
|
|
MGM Mirage, Inc., Company Guaranteed Notes
|
|
(BB-, Ba3)
|
|
04
/01/16
|
|
|
6.875
|
|
|
|
684,250
|
|
|
|
1,700
|
|
|
MGM Mirage, Inc., Company Guaranteed Notes
|
|
(BB-, Ba3)
|
|
01
/15/17
|
|
|
7.625
|
|
|
|
1,020,000
|
|
|
|
175
|
|
|
MGM Mirage, Inc., Global Company Guaranteed Notes
|
|
(BB-, Ba3)
|
|
04
/01/13
|
|
|
6.750
|
|
|
|
110,250
|
|
|
|
600
|
|
|
Peermont Global Proprietary Ltd., Rule 144A, Senior Secured Notes (Callable 04/30/10 @ $105.81)
|
|
(B, B3)
|
|
04
/30/14
|
|
|
7.750
|
|
|
|
369,003
|
|
|
|
670
|
|
|
Tropicana Finance Corp., Global Senior Subordinated Notes (Callable 12/15/10 @ $104.81) ø
|
|
(NR, NR)
|
|
12
/15/14
|
|
|
9.625
|
|
|
|
35,175
|
|
|
|
200
|
|
|
Trump Entertainment Resorts, Inc., Senior Secured Notes (Callable 06/01/10 @ $104.25)
|
|
(CCC+, Caa2)
|
|
06
/01/15
|
|
|
8.500
|
|
|
|
52,500
|
|
|
|
775
|
|
|
Turning Stone Resort Casino Enterprise, Rule 144A, Senior Notes (Callable 09/15/10 @ $104.56)
|
|
(B+, B1)
|
|
09
/15/14
|
|
|
9.125
|
|
|
|
616,125
|
|
|
|
|
|
|
|
|
|
|
|
7,468,553
|
|
|
Gas Distribution
(3.9%)
|
|
|
|
|
875
|
|
|
Amerigas Partners LP, Global Senior Unsecured Notes (Callable 05/20/10 @ $103.63)
|
|
(NR, Ba3)
|
|
05
/20/15
|
|
|
7.250
|
|
|
|
662,812
|
|
|
|
950
|
|
|
El Paso Corp., Senior Unsecured Notes
|
|
(BB-, Ba3)
|
|
06
/01/18
|
|
|
7.250
|
|
|
|
717,250
|
|
|
|
925
|
|
|
El Paso Performance-Linked Trust, Rule 144A, Senior Unsecured Notes
|
|
(BB, Ba3)
|
|
07
/15/11
|
|
|
7.750
|
|
|
|
775,200
|
|
|
|
825
|
|
|
Inergy Finance Corp., Global Company Guaranteed Notes (Callable 03/01/11 @ $104.13)
|
|
(B+, B1)
|
|
03
/01/16
|
|
|
8.250
|
|
|
|
637,313
|
|
|
|
275
|
|
|
Inergy Finance Corp., Global Senior Unsecured Notes (Callable 12/15/09 @ $103.44)
|
|
(B+, B1)
|
|
12
/15/14
|
|
|
6.875
|
|
|
|
204,875
|
|
|
|
550
|
|
|
MarkWest Energy Finance Corp., Series B, Global Senior Notes (Callable 04/15/13 @ $104.38)
|
|
(B+, B2)
|
|
04
/15/18
|
|
|
8.750
|
|
|
|
398,750
|
|
|
|
875
|
|
|
Targa Resources Partners LP, Rule 144A, Senior Notes (Callable 07/01/12 @ $104.13)
|
|
(B, B2)
|
|
07
/01/16
|
|
|
8.250
|
|
|
|
546,875
|
|
|
|
700
|
|
|
Williams Partners LP, Global Senior Unsecured Notes
|
|
(BBB-, Ba2)
|
|
02
/01/17
|
|
|
7.250
|
|
|
|
557,302
|
|
|
|
|
|
|
|
|
|
|
|
4,500,377
|
|
|
Health Services
(9.4%)
|
|
|
|
|
815
|
|
|
Bausch & Lomb, Inc., Rule 144A, Senior Unsecured Notes (Callable 11/01/11 @ $104.94)
|
|
(B, Caa1)
|
|
11
/01/15
|
|
|
9.875
|
|
|
|
643,850
|
|
|
|
50
|
|
|
Biomet, Inc., Global Company Guaranteed Notes (Callable 10/15/12 @ $105.00)
|
|
(B-, B3)
|
|
10
/15/17
|
|
|
10.000
|
|
|
|
46,250
|
|
|
|
525
|
|
|
Biomet, Inc., Global Company Guaranteed Notes (Callable 10/15/12 @ $105.81)
|
|
(B-, Caa1)
|
|
10
/15/17
|
|
|
11.625
|
|
|
|
459,375
|
|
|
|
650
|
|
|
Community Health Systems, Inc., Global Company Guaranteed Notes (Callable 07/15/11 @ $104.44)
|
|
(B, B3)
|
|
07
/15/15
|
|
|
8.875
|
|
|
|
547,625
|
|
|
|
900
|
|
|
HCA, Inc., Global Secured Notes (Callable 11/15/11 @ $104.63)
|
|
(BB-, B2)
|
|
11
/15/16
|
|
|
9.250
|
|
|
|
767,250
|
|
|
|
1,300
|
|
|
HCA, Inc., Global Senior Unsecured Notes
|
|
(B-, Caa1)
|
|
01
/15/15
|
|
|
6.375
|
|
|
|
780,000
|
|
|
|
1,675
|
|
|
HCA, Inc., Global Senior Unsecured Notes
|
|
(B-, Caa1)
|
|
02
/15/16
|
|
|
6.500
|
|
|
|
992,437
|
|
|
|
1,050
|
|
|
HCA, Inc., Senior Unsecured Notes
|
|
(B-, Caa1)
|
|
02
/15/13
|
|
|
6.250
|
|
|
|
682,500
|
|
|
|
625
|
|
|
HCA, Inc., Senior Unsecured Notes
|
|
(B-, Caa1)
|
|
07
/15/13
|
|
|
6.750
|
|
|
|
403,125
|
|
|
|
675
|
|
|
Healthsouth Corp., Global Company Guaranteed Notes (Callable 06/15/11 @ $105.38)
|
|
(CCC+, Caa1)
|
|
06
/15/16
|
|
|
10.750
|
|
|
|
614,250
|
|
|
See Accompanying Notes to Financial Statements.
6
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
|
|
|
|
Health Services
|
|
|
|
$
|
525
|
|
|
OMEGA Healthcare Investors, Inc., Global Company Guaranteed Notes (Callable 01/15/11 @ $103.50)
|
|
(BB+, Ba3)
|
|
01
/15/16
|
|
|
7.000
|
|
|
$
|
418,688
|
|
|
|
750
|
|
|
Stewart Enterprises, Inc., Global Company Guaranteed Notes (Callable 02/15/09 @ $103.13)
|
|
(BB-, Ba3)
|
|
02
/15/13
|
|
|
6.250
|
|
|
|
620,625
|
|
|
|
1,550
|
|
|
Tenet Healthcare Corp., Global Senior Unsecured Notes
|
|
(B, Caa1)
|
|
07
/01/14
|
|
|
9.875
|
|
|
|
1,274,875
|
|
|
|
500
|
|
|
Tenet Healthcare Corp., Global Senior Unsecured Notes
|
|
(B, Caa1)
|
|
02
/01/15
|
|
|
9.250
|
|
|
|
415,000
|
|
|
|
500
|
|
|
Universal Hospital Services, Inc., Global Senior Secured Notes (Callable 06/01/09 @ $102.00) #
|
|
(B+, B3)
|
|
06
/01/15
|
|
|
6.303
|
|
|
|
342,500
|
|
|
|
275
|
|
|
Universal Hospital Services, Inc., Global Senior Secured Notes (Callable 06/01/11 @ $104.25)
|
|
(B+, B3)
|
|
06
/01/15
|
|
|
8.500
|
|
|
|
221,375
|
|
|
|
1,250
|
|
|
Vanguard Health Holding Co., Global Senior Subordinated Notes (Callable 10/01/09 @ $104.50)
|
|
(CCC+, Caa1)
|
|
10
/01/14
|
|
|
9.000
|
|
|
|
1,043,750
|
|
|
|
1,050
|
|
|
VWR Funding, Inc., Series B, Global Company Guaranteed Notes (Callable 07/15/11 @ $105.13)
|
|
(B-, Caa1)
|
|
07
/15/15
|
|
|
10.250
|
|
|
|
630,000
|
|
|
|
|
|
|
|
|
|
|
|
10,903,475
|
|
|
Household & Leisure Products
(0.9%)
|
|
|
|
|
1,000
|
|
|
ALH Finance LLC/ALH Finance Corp., Global Senior Subordinated Notes (Callable 01/15/09 @ 104.25)
|
|
(CCC+, B3)
|
|
01
/15/13
|
|
|
8.500
|
|
|
|
785,000
|
|
|
|
500
|
|
|
Ames True Temper, Inc., Global Company Guaranteed Notes (Callable 01/15/09 @ $101.50) #
|
|
(CCC+, Caa1)
|
|
01
/15/12
|
|
|
8.753
|
|
|
|
297,500
|
|
|
|
|
|
|
|
|
|
|
|
1,082,500
|
|
|
lnvestments & Misc. Financial Services
(0.2%)
|
|
|
|
|
700
|
|
|
Nuveen Investments, Inc., Rule 144A, Senior Notes (Callable 11/15/11 @ $105.25)
|
|
(B-, B3)
|
|
11
/15/15
|
|
|
10.500
|
|
|
|
192,500
|
|
|
Leisure
(0.3%)
|
|
|
|
|
122
|
|
|
Six Flags Operations, Inc., Rule 144A, Company Guaranteed Notes (Callable 07/15/13 @ $106.12)
|
|
(CCC, Caa2)
|
|
07
/15/16
|
|
|
12.250
|
|
|
|
65,270
|
|
|
|
900
|
|
|
Six Flags, Inc., Global Senior Unsecured Notes (Callable 06/01/09 @ $104.81)
|
|
(CCC-, Caa3)
|
|
06
/01/14
|
|
|
9.625
|
|
|
|
265,500
|
|
|
|
|
|
|
|
|
|
|
|
330,770
|
|
|
Machinery
(0.8%)
|
|
|
|
|
850
|
|
|
Baldor Electric Co., Company Guaranteed Notes (Callable 02/15/12 @ $104.31)
|
|
(B, B3)
|
|
02
/15/17
|
|
|
8.625
|
|
|
|
654,500
|
|
|
|
450
|
|
|
Terex Corp., Senior Subordinated Notes (Callable 11/15/12 @ $104.00)
|
|
(B+, Ba3)
|
|
11
/15/17
|
|
|
8.000
|
|
|
|
335,250
|
|
|
|
|
|
|
|
|
|
|
|
989,750
|
|
|
Media - Broadcast
(2.4%)
|
|
|
|
|
725
|
|
|
Allbritton Communications Co., Global Senior Subordinated Notes (Callable 12/08/08 @ $103.88)
|
|
(B, B2)
|
|
12
/15/12
|
|
|
7.750
|
|
|
|
496,625
|
|
|
|
1,500
|
|
|
Barrington Broadcasting Capital Corp., Global Company Guaranteed Notes (Callable 08/15/10 @ $105.25)
|
|
(CCC-, Caa3)
|
|
08
/15/14
|
|
|
10.500
|
|
|
|
742,500
|
|
|
|
1,175
|
|
|
Clear Channel Communications, Inc., Senior Unsecured Notes
|
|
(CCC+, Caa1)
|
|
09
/15/14
|
|
|
5.500
|
|
|
|
270,250
|
|
|
|
925
|
|
|
CMP Susquehanna Corp., Global Company Guaranteed Notes (Callable 05/15/10 @ $104.94)
|
|
(CCC, Ca)
|
|
05
/15/14
|
|
|
9.875
|
|
|
|
189,625
|
|
|
|
550
|
|
|
Fisher Communications, Inc., Global Company Guaranteed Notes (Callable 09/15/09 @ $104.31)
|
|
(B, B2)
|
|
09
/15/14
|
|
|
8.625
|
|
|
|
496,375
|
|
|
|
600
|
|
|
Local TV Finance LLC, Rule 144A, Senior Unsecured Notes (Callable 06/15/11 @ $104.63)
|
|
(CCC+, Caa3)
|
|
06
/15/15
|
|
|
9.250
|
|
|
|
303,000
|
|
|
|
750
|
|
|
Univision Communications, Inc., Rule 144A, Senior Notes (Callable 03/15/11 @ $104.88)
|
|
(CCC, Caa1)
|
|
03
/15/15
|
|
|
9.750
|
|
|
|
157,500
|
|
|
|
1,525
|
|
|
Young Broadcasting, Inc., Global Senior Subordinated Notes (Callable 01/15/09 @ $104.38)
|
|
(CC, Ca)
|
|
01
/15/14
|
|
|
8.750
|
|
|
|
116,281
|
|
|
|
|
|
|
|
|
|
|
|
2,772,156
|
|
|
Media - Cable
(6.7%)
|
|
|
|
|
1,875
|
|
|
Atlantic Broadband Finance LLC, Global Company Guaranteed Notes (Callable 01/15/09 @ $104.69)
|
|
(CCC+, Caa1)
|
|
01
/15/14
|
|
|
9.375
|
|
|
|
1,359,375
|
|
|
|
1,850
|
|
|
CCH I LLC, Global Secured Notes (Callable 10/01/10 @ $105.50)
|
|
(CCC, Caa3)
|
|
10
/01/15
|
|
|
11.000
|
|
|
|
841,750
|
|
|
|
1,800
|
|
|
CCH II LLC, Series B, Global Company Guaranteed Notes (Callable 09/15/09 @ $100.00)
|
|
(CCC, Caa2)
|
|
09
/15/10
|
|
|
10.250
|
|
|
|
1,224,000
|
|
|
|
792
|
|
|
Charter Communications Holdings LLC, Senior Unsecured Notes (Callable 12/08/08 @ $100.00) §
|
|
(CCC, Ca)
|
|
04
/01/11
|
|
|
9.920
|
|
|
|
316,800
|
|
|
|
325
|
|
|
Charter Communications Operating LLC, Rule 144A, Senior Secured Notes
|
|
(B-, B3)
|
|
04
/30/12
|
|
|
8.000
|
|
|
|
251,875
|
|
|
|
450
|
|
|
CSC Holdings, Inc., Global Senior Unsecured Notes
|
|
(BB, B1)
|
|
04
/15/12
|
|
|
6.750
|
|
|
|
391,500
|
|
|
|
275
|
|
|
CSC Holdings, Inc., Rule 144A, Senior Unsecured Notes (Callable 06/15/12 @ $104.25)
|
|
(BB, B1)
|
|
06
/15/15
|
|
|
8.500
|
|
|
|
233,750
|
|
|
|
800
|
|
|
CSC Holdings, Inc., Series B, Senior Unsecured Notes
|
|
(BB, B1)
|
|
04
/01/11
|
|
|
7.625
|
|
|
|
740,000
|
|
|
|
500
|
|
|
DirecTV Holdings LLC/DirecTV Financing Co., Global Company Guaranteed Notes
(Callable 12/08/08 @ $104.19)
|
|
(BB, Ba3)
|
|
03
/15/13
|
|
|
8.375
|
|
|
|
471,250
|
|
|
|
425
|
|
|
DirecTV Holdings LLC/DirecTV Financing Co., Rule 144A, Company Guaranteed Notes
(Callable 05/15/12 $103.81)
|
|
(BB, Ba3)
|
|
05
/15/16
|
|
|
7.625
|
|
|
|
359,125
|
|
|
|
200
|
|
|
EchoStar DBS Corp., Global Company Guaranteed Notes
|
|
(BB-, Ba3)
|
|
10
/01/13
|
|
|
7.000
|
|
|
|
167,000
|
|
|
|
225
|
|
|
EchoStar DBS Corp., Global Company Guaranteed Notes
|
|
(BB-, Ba3)
|
|
10
/01/14
|
|
|
6.625
|
|
|
|
181,125
|
|
|
|
775
|
|
|
Mediacom Broadband Corp., Global Senior Unsecured Notes (Callable 10/15/10 @ $104.25)
|
|
(B-, B3)
|
|
10
/15/15
|
|
|
8.500
|
|
|
|
577,375
|
|
|
|
825
|
|
|
Mediacom Capital Corp., Global Senior Unsecured Notes (Callable 01/05/09 @ $100.00)
|
|
(B-, B3)
|
|
02
/15/11
|
|
|
7.875
|
|
|
|
705,375
|
|
|
|
|
|
|
|
|
|
|
|
7,820,300
|
|
|
See Accompanying Notes to Financial Statements.
7
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
|
|
|
|
Media - Services
(0.6%)
|
|
|
|
$
|
1,150
|
|
|
WMG Acquisition Corp., Global Senior Subordinated Notes (Callable 04/15/09 @ $103.69)
|
|
(B, B3)
|
|
04
/15/14
|
|
|
7.375
|
|
|
$
|
718,750
|
|
|
Metals & Mining - Excluding Steel
(1.6%)
|
|
|
|
|
225
|
|
|
Aleris International, Inc., Global Company Guaranteed Notes (Callable 12/15/10 @ $104.50)
|
|
(B-, B3)
|
|
12
/15/14
|
|
|
9.000
|
|
|
|
78,750
|
|
|
|
1,100
|
|
|
Aleris International, Inc., Global Company Guaranteed Notes (Callable 12/15/11 @ $105.00)
|
|
(B-, Caa1)
|
|
12
/15/16
|
|
|
10.000
|
|
|
|
363,000
|
|
|
|
800
|
|
|
Freeport-McMoRan Copper & Gold, Inc., Senior Unsecured Notes (Callable 04/01/11 @ $104.13)
|
|
(BBB-, Ba2)
|
|
04
/01/15
|
|
|
8.250
|
|
|
|
640,741
|
|
|
|
1,700
|
|
|
Noranda Aluminium Acquisition Corp., Global Company Guaranteed Notes (Callable 05/15/09 @ $101.00) #
|
|
(B-, B3)
|
|
05
/15/15
|
|
|
6.828
|
|
|
|
773,500
|
|
|
|
|
|
|
|
|
|
|
|
1,855,991
|
|
|
Non-Food & Drug Retailers
(3.9%)
|
|
|
|
|
900
|
|
|
Asbury Automotive Group, Inc., Global Company Guaranteed Notes (Callable 03/15/12 @ $103.81)
|
|
(B, B3)
|
|
03
/15/17
|
|
|
7.625
|
|
|
|
400,500
|
|
|
|
1,350
|
|
|
Brookstone Company, Inc., Global Secured Notes (Callable 10/15/09 @ $106.00)
|
|
(B, Caa1)
|
|
10
/15/12
|
|
|
12.000
|
|
|
|
992,250
|
|
|
|
505
|
|
|
Michaels Stores, Inc., Global Company Guaranteed Notes (Callable 11/01/10 @ $105.00)
|
|
(CCC, Caa1)
|
|
11
/01/14
|
|
|
10.000
|
|
|
|
229,775
|
|
|
|
645
|
|
|
Michaels Stores, Inc., Global Company Guaranteed Notes (Callable 11/01/11 @ $105.69)
|
|
(CCC, Caa2)
|
|
11
/01/16
|
|
|
11.375
|
|
|
|
225,750
|
|
|
|
1,285
|
|
|
Neiman Marcus Group, Inc., Global Company Guaranteed Notes (Callable 10/15/10 @ $105.19)
|
|
(B, B3)
|
|
10
/15/15
|
|
|
10.375
|
|
|
|
860,950
|
|
|
|
1,000
|
|
|
PCA LLC/PCA Finance Corp., Global Company Guaranteed Notes ø
|
|
(NR, NR)
|
|
08
/01/09
|
|
|
11.875
|
|
|
|
40,000
|
|
|
|
600
|
|
|
SGS International, Inc., Rule 144A, Global Senior Subordinated Notes (Callable 12/15/09 @ $106.00)
|
|
(B-, B3)
|
|
12
/15/13
|
|
|
12.000
|
|
|
|
471,000
|
|
|
|
770
|
|
|
Susser Holdings LLC, Global Company Guaranteed Notes (Callable 12/15/09 @ $105.31)
|
|
(B+, B3)
|
|
12
/15/13
|
|
|
10.625
|
|
|
|
658,350
|
|
|
|
100
|
|
|
Yankee Acquisition Corp., Series B, Global Company Guaranteed Notes (Callable 02/15/11 @ $104.25)
|
|
(B-, B3)
|
|
02
/15/15
|
|
|
8.500
|
|
|
|
57,000
|
|
|
|
1,225
|
|
|
Yankee Acquisition Corp., Series B, Global Company Guaranteed Notes (Callable 02/15/12 @ $104.88)
|
|
(CCC+, Caa1)
|
|
02
/15/17
|
|
|
9.750
|
|
|
|
614,031
|
|
|
|
|
|
|
|
|
|
|
|
4,549,606
|
|
|
Office Equipment
(0.2%)
|
|
|
|
|
215
|
|
|
IKON Office Solutions, Inc., Global Senior Unsecured Notes (Callable 09/15/10 @ $103.88)
|
|
(BB-, Ba3)
|
|
09
/15/15
|
|
|
7.750
|
|
|
|
239,725
|
|
|
Oil Field Equipment & Services
(0.6%)
|
|
|
|
|
550
|
|
|
Bristow Group, Inc., Global Company Guaranteed Notes (Callable 09/15/12 @ $103.75)
|
|
(BB, Ba2)
|
|
09
/15/17
|
|
|
7.500
|
|
|
|
415,250
|
|
|
|
450
|
|
|
Key Energy Services, Inc., Global Company Guaranteed Notes (Callable 12/01/11 @ $104.19)
|
|
(BB-, B1)
|
|
12
/01/14
|
|
|
8.375
|
|
|
|
335,250
|
|
|
|
|
|
|
|
|
|
|
|
750,500
|
|
|
Packaging
(2.9%)
|
|
|
|
|
850
|
|
|
Berry Plastics Holding Corp., Global Company Guaranteed Notes (Callable 03/01/11 @ $105.13)
|
|
(CCC, Caa2)
|
|
03
/01/16
|
|
|
10.250
|
|
|
|
412,250
|
|
|
|
955
|
|
|
Berry Plastics Holding Corp., Global Senior Secured Notes (Callable 09/15/10 @ $104.44)
|
|
(CCC+, Caa1)
|
|
09
/15/14
|
|
|
8.875
|
|
|
|
501,375
|
|
|
|
725
|
|
|
Constar International, Inc., Company Guaranteed Notes (Callable 12/01/08 @ $103.67)
|
|
(CCC-, Caa3)
|
|
12
/01/12
|
|
|
11.000
|
|
|
|
137,750
|
|
|
|
325
|
|
|
Crown Cork & Seal Co., Inc., Debentures (Callable 04/15/09 @ $101.53)
|
|
(B, B2)
|
|
04
/15/23
|
|
|
8.000
|
|
|
|
242,125
|
|
|
|
50
|
|
|
Graham Packaging Company, Inc., Global Company Guaranteed Notes (Callable 10/15/09 @ $104.25)
|
|
(CCC+, Caa1)
|
|
10
/15/12
|
|
|
8.500
|
|
|
|
36,750
|
|
|
|
1,225
|
|
|
Graham Packaging Company, Inc., Global Subordinated Notes (Callable 10/15/09 @ $104.94)
|
|
(CCC+, Caa1)
|
|
10
/15/14
|
|
|
9.875
|
|
|
|
777,875
|
|
|
|
769
|
|
|
Pliant Corp., Global Senior Secured Notes (Callable 12/11/08 @ $105.81)
|
|
(CCC-, NR)
|
|
06
/15/09
|
|
|
11.625
|
|
|
|
572,641
|
|
|
|
1,000
|
|
|
Solo Cup Co., Global Company Guaranteed Notes (Callable 02/15/09 @ $104.25)
|
|
(CCC, Caa2)
|
|
02
/15/14
|
|
|
8.500
|
|
|
|
675,000
|
|
|
|
|
|
|
|
|
|
|
|
3,355,766
|
|
|
Printing & Publishing
(2.9%)
|
|
|
|
|
1,000
|
|
|
Cenveo Corp., Global Senior Subordinated Notes (Callable 12/01/09 @ $103.94)
|
|
(B, B3)
|
|
12
/01/13
|
|
|
7.875
|
|
|
|
660,000
|
|
|
|
1,675
|
|
|
Idearc, Inc., Global Company Guaranteed Notes (Callable 11/15/11 @ $104.00)
|
|
(CCC, B3)
|
|
11
/15/16
|
|
|
8.000
|
|
|
|
240,781
|
|
|
|
2,975
|
|
|
R.H. Donnelley Corp., Global Senior Unsecured Notes (Callable 01/15/09 @ $103.44)
|
|
(B-, B3)
|
|
01
/15/13
|
|
|
6.875
|
|
|
|
699,125
|
|
|
|
50
|
|
|
R.H. Donnelley, Inc., Rule 144A, Company Guaranteed Notes (Callable 05/15/12 @ $105.88)
|
|
(B+, B1)
|
|
05
/15/15
|
|
|
11.750
|
|
|
|
19,750
|
|
|
|
1,800
|
|
|
The Reader's Digest Association, Inc., Global Company Guaranteed Notes (Callable 02/15/12 @ $104.50)
|
|
(CCC, Caa1)
|
|
02
/15/17
|
|
|
9.000
|
|
|
|
517,500
|
|
|
|
1,400
|
|
|
TL Acquisitions, Inc., Rule 144A, Senior Notes (Callable 07/15/11 @ $105.25)
|
|
(CCC+, Caa1)
|
|
01
/15/15
|
|
|
10.500
|
|
|
|
840,000
|
|
|
|
785
|
|
|
Valassis Communications, Inc., Global Company Guaranteed Notes (Callable 03/01/11 @ $104.13)
|
|
(B-, B3)
|
|
03
/01/15
|
|
|
8.250
|
|
|
|
427,825
|
|
|
|
|
|
|
|
|
|
|
|
3,404,981
|
|
|
Railroads
(0.4%)
|
|
|
|
|
600
|
|
|
Kansas City Southern Railway, Company Guaranteed Notes (Callable 06/01/12 @ $104.00)
|
|
(BB-, B2)
|
|
06
/01/15
|
|
|
8.000
|
|
|
|
496,500
|
|
|
Restaurants
(0.5%)
|
|
|
|
|
775
|
|
|
Denny's Holdings, Inc., Global Company Guaranteed Notes (Callable 10/01/09 @ $105.00)
|
|
(B, B3)
|
|
10
/01/12
|
|
|
10.000
|
|
|
|
592,875
|
|
|
See Accompanying Notes to Financial Statements.
8
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
|
|
|
|
Software/Services
(2.0%)
|
|
|
|
$
|
950
|
|
|
First Data Corp., Global Company Guaranteed Notes (Callable 09/30/11 @ $104.94)
|
|
(B, B3)
|
|
09
/24/15
|
|
|
9.875
|
|
|
$
|
612,750
|
|
|
|
1,275
|
|
|
SunGard Data Systems, Inc., Global Company Guaranteed Notes (Callable 08/15/10 @ $105.13)
|
|
(B-, Caa1)
|
|
08
/15/15
|
|
|
10.250
|
|
|
|
898,875
|
|
|
|
1,150
|
|
|
Unisys Corp., Senior Unsubordinated Notes (Callable 01/15/12 @ $106.25)
|
|
(B+, B2)
|
|
01
/15/16
|
|
|
12.500
|
|
|
|
805,000
|
|
|
|
|
|
|
|
|
|
|
|
2,316,625
|
|
|
Steel Producers/Products
(2.4%)
|
|
|
|
|
700
|
|
|
AK Steel Corp., Global Company Guaranteed Notes (Callable 11/10/08 @ $102.58)
|
|
(BB-, Ba3)
|
|
06
/15/12
|
|
|
7.750
|
|
|
|
563,500
|
|
|
|
1,275
|
|
|
Rathgibson, Inc., Global Company Guaranteed Notes (Callable 02/15/10 @ $105.62)
|
|
(B, B3)
|
|
02
/15/14
|
|
|
11.250
|
|
|
|
867,000
|
|
|
|
1,200
|
|
|
Ryerson, Inc., Rule 144A, Senior Secured Notes (Callable 11/01/11 @ $106.00)
|
|
(B+, B2)
|
|
11
/01/15
|
|
|
12.000
|
|
|
|
822,000
|
|
|
|
745
|
|
|
Steel Dynamics, Inc., Rule 144A, Senior Notes (Callable 04/15/12 @ $103.88)
|
|
(BB+, Ba2)
|
|
04
/15/16
|
|
|
7.750
|
|
|
|
497,287
|
|
|
|
|
|
|
|
|
|
|
|
2,749,787
|
|
|
Support - Services
(5.9%)
|
|
|
|
|
300
|
|
|
ARAMARK Corp., Global Company Guaranteed Notes (Callable 02/01/09 @ $102.00) #
|
|
(B, B3)
|
|
02
/01/15
|
|
|
6.301
|
|
|
|
216,000
|
|
|
|
450
|
|
|
ARAMARK Corp., Global Senior Unsecured Notes (Callable 02/01/11 @ $104.25)
|
|
(B, B3)
|
|
02
/01/15
|
|
|
8.500
|
|
|
|
387,000
|
|
|
|
350
|
|
|
DynCorp. International, Rule 144A, Company Guaranteed Notes (Callable 02/15/09 @ $104.75)
|
|
(B, B2)
|
|
02
/15/13
|
|
|
9.500
|
|
|
|
301,875
|
|
|
|
150
|
|
|
Education Management LLC, Global Company Guaranteed Notes (Callable 06/01/10 @ $104.38)
|
|
(CCC+, B2)
|
|
06
/01/14
|
|
|
8.750
|
|
|
|
110,250
|
|
|
|
700
|
|
|
Education Management LLC, Global Company Guaranteed Notes (Callable 06/01/11 @ $105.13)
|
|
(CCC+, Caa1)
|
|
06
/01/16
|
|
|
10.250
|
|
|
|
486,500
|
|
|
|
600
|
|
|
Hertz Corp., Global Company Guaranteed Notes (Callable 01/01/11 @ $105.25)
|
|
(B, B2)
|
|
01
/01/16
|
|
|
10.500
|
|
|
|
373,500
|
|
|
|
750
|
|
|
Iron Mountain, Inc., Company Guaranteed Notes (Callable 11/17/08 @ $101.44)
|
|
(B+, B2)
|
|
04
/01/13
|
|
|
8.625
|
|
|
|
688,125
|
|
|
|
1,500
|
|
|
JohnsonDiversey Holdings, Inc., Series B, Global Discount Notes (Callable 05/15/09 @ $101.78)
|
|
(CCC+, Caa1)
|
|
05
/15/13
|
|
|
10.670
|
|
|
|
1,117,500
|
|
|
|
1,050
|
|
|
Mobile Services Group, Inc., Global Company Guaranteed Notes (Callable 08/01/10 @ $104.88)
|
|
(B+, B2)
|
|
08
/01/14
|
|
|
9.750
|
|
|
|
792,750
|
|
|
|
725
|
|
|
Rental Service Corp., Global Company Guaranteed Notes (Callable 12/01/10 @ $104.75)
|
|
(B-, Caa1)
|
|
12
/01/14
|
|
|
9.500
|
|
|
|
438,625
|
|
|
|
475
|
|
|
Sotheby's, Rule 144A, Senior Notes
|
|
(BBB-, Ba3)
|
|
06
/15/15
|
|
|
7.750
|
|
|
|
282,625
|
|
|
|
925
|
|
|
Ticketmaster Entertainment,Inc., Rule 144A, Senior Notes (Callable 08/01/12 @ $105.38)
|
|
(BB, Ba3)
|
|
08
/01/16
|
|
|
10.750
|
|
|
|
781,625
|
|
|
|
1,150
|
|
|
Travelport LLC, Global Company Guaranteed Notes (Callable 09/01/11 @ $105.94)
|
|
(CCC+, Caa1)
|
|
09
/01/16
|
|
|
11.875
|
|
|
|
465,750
|
|
|
|
100
|
|
|
United Rentals North America, Inc., Global Company Guaranteed Notes (Callable 02/15/09 @ $103.25)
|
|
(BB-, B1)
|
|
02
/15/12
|
|
|
6.500
|
|
|
|
70,500
|
|
|
|
725
|
|
|
United Rentals North America, Inc., Global Senior Subordinated Notes (Callable 02/15/09 @ $103.50)
|
|
(B, B2)
|
|
02
/15/14
|
|
|
7.000
|
|
|
|
398,750
|
|
|
|
|
|
|
|
|
|
|
|
6,911,375
|
|
|
Telecom - Integrated/Services
(9.0%)
|
|
|
|
|
1,550
|
|
|
Cincinnati Bell, Inc., Global Senior Subordinated Notes (Callable 01/15/09 @ $104.19)
|
|
(B-, B2)
|
|
01
/15/14
|
|
|
8.375
|
|
|
|
1,127,625
|
|
|
|
1,800
|
|
|
Frontier Communications Corp., Global Senior Unsecured Notes
|
|
(BB, Ba2)
|
|
03
/15/15
|
|
|
6.625
|
|
|
|
1,296,000
|
|
|
|
1,100
|
|
|
Hughes Network Systems LLC, Global Company Guaranteed Notes (Callable 04/15/10 @ $104.75)
|
|
(B, B1)
|
|
04
/15/14
|
|
|
9.500
|
|
|
|
940,500
|
|
|
|
2,325
|
|
|
Intelsat Corp., Rule 144A, Senior Unsecured Notes (Callable 08/15/09 @ $104.63)
|
|
(BB-, B3)
|
|
08
/15/14
|
|
|
9.250
|
|
|
|
2,011,125
|
|
|
|
25
|
|
|
Intelsat Subsidiary Holding Co., Ltd., Rule 144A, Senior Unsecured Notes (Callable 01/15/10 @ $104.44)
|
|
(BB-, B3)
|
|
01
/15/15
|
|
|
8.875
|
|
|
|
21,375
|
|
|
|
1,800
|
|
|
Level 3 Financing, Inc., Global Company Guaranteed Notes (Callable 02/15/09 @ $102.00) #
|
|
(CCC+, Caa1)
|
|
02
/15/15
|
|
|
6.845
|
|
|
|
828,000
|
|
|
|
725
|
|
|
Level 3 Financing, Inc., Global Company Guaranteed Notes (Callable 03/15/10 @ $106.13)
|
|
(CCC+, Caa1)
|
|
03
/15/13
|
|
|
12.250
|
|
|
|
462,187
|
|
|
|
1,450
|
|
|
Paetec Holding Corp., Series WI, Global Company Guaranteed Notes (Callable 07/15/11 @ $104.75)
|
|
(CCC+, Caa1)
|
|
07
/15/15
|
|
|
9.500
|
|
|
|
830,125
|
|
|
|
1,250
|
|
|
Qwest Communications International, Inc., Series B, Global Company Guaranteed Notes
(Callable 02/15/09 @ $103.75)
|
|
(B+, Ba3)
|
|
02
/15/14
|
|
|
7.500
|
|
|
|
865,625
|
|
|
|
275
|
|
|
Qwest Corp., Global Senior Unsecured Notes
|
|
(BBB-, Ba1)
|
|
06
/15/15
|
|
|
7.625
|
|
|
|
211,750
|
|
|
|
775
|
|
|
Time Warner Telecom Holdings, Inc., Global Company Guaranteed Notes (Callable 02/15/09 @ $104.62)
|
|
(CCC+, B3)
|
|
02
/15/14
|
|
|
9.250
|
|
|
|
631,625
|
|
|
|
350
|
|
|
Windstream Corp., Global Company Guaranteed Notes
|
|
(BB, Ba3)
|
|
08
/01/13
|
|
|
8.125
|
|
|
|
289,625
|
|
|
|
125
|
|
|
Windstream Corp., Global Company Guaranteed Notes (Callable 03/15/12 @ $103.50)
|
|
(BB, Ba3)
|
|
03
/15/19
|
|
|
7.000
|
|
|
|
76,875
|
|
|
|
1,100
|
|
|
Windstream Corp., Global Company Guaranteed Notes (Callable 08/01/11 @ $104.31)
|
|
(BB, Ba3)
|
|
08
/01/16
|
|
|
8.625
|
|
|
|
836,000
|
|
|
|
|
|
|
|
|
|
|
|
10,428,437
|
|
|
Telecom - Wireless
(3.9%)
|
|
|
|
|
675
|
|
|
Centennial Cellular Communications Corp., Global Company Guaranteed Notes
(Callable 06/15/09 @ $103.38)
|
|
(B, B2)
|
|
06
/15/13
|
|
|
10.125
|
|
|
|
600,750
|
|
|
|
75
|
|
|
Cricket Communications, Inc., Global Company Guaranteed Notes (Callable 11/01/10 @ $104.69)
|
|
(B-, B3)
|
|
11
/01/14
|
|
|
9.375
|
|
|
|
61,313
|
|
|
|
975
|
|
|
MetroPCS Wireless, Inc., Global Company Guaranteed Notes (Callable 11/01/10 @ $104.63)
|
|
(B, Caa1)
|
|
11
/01/14
|
|
|
9.250
|
|
|
|
816,562
|
|
|
|
2,648
|
|
|
Nextel Communications, Inc., Series F, Company Guaranteed Notes (Callable 03/15/09 @ $102.98)
|
|
(BB, Baa3)
|
|
03
/15/14
|
|
|
5.950
|
|
|
|
1,431,334
|
|
|
|
2,425
|
|
|
Sprint Nextel Corp., Senior Unsecured Notes
|
|
(BB, Baa3)
|
|
12
/01/16
|
|
|
6.000
|
|
|
|
1,681,745
|
|
|
|
|
|
|
|
|
|
|
|
4,591,704
|
|
|
See Accompanying Notes to Financial Statements.
9
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
U.S. CORPORATE BONDS
|
|
|
|
Textiles & Apparel
(0.5%)
|
|
|
|
$
|
875
|
|
|
Levi Strauss & Co., Global Senior Notes (Callable 01/15/10 @ $104.88)
|
|
(B+, B2)
|
|
01
/15/15
|
|
|
9.750
|
|
|
$
|
616,875
|
|
|
Theaters & Entertainment
(1.0%)
|
|
|
|
|
1,675
|
|
|
AMC Entertainment, Inc., Global Senior Subordinated Notes (Callable 03/01/09 @ $104.00)
|
|
(CCC+, B2)
|
|
03
/01/14
|
|
|
8.000
|
|
|
|
1,197,625
|
|
|
Transportation - Excluding Air/Rail
(1.0%)
|
|
|
|
|
1,375
|
|
|
Navios Maritime Holdings, Inc., Global Company Guaranteed Notes (Callable 12/15/10 @ $104.75)
|
|
(B+, B3)
|
|
12
/15/14
|
|
|
9.500
|
|
|
|
1,134,375
|
|
|
TOTAL U.S. CORPORATE BONDS
(Cost $236,067,761)
|
|
|
|
|
|
|
|
|
156,710,867
|
|
|
FOREIGN CORPORATE BONDS
(11.2%)
|
|
|
|
Building Materials
(0.0%)
|
|
|
|
|
1,000
|
|
|
Maax Corp., Global Senior Subordinated Notes (Callable 06/15/09 @ $104.88) (Canada) ø
|
|
(NR, NR)
|
|
06
/15/12
|
|
|
9.750
|
|
|
|
10,000
|
|
|
Chemicals
(0.7%)
|
|
|
|
|
875
|
|
|
Ineos Group Holdings PLC, Rule 144A, Company Guaranteed Notes
(Callable 02/15/11 @ $104.25) (United Kingdom)
|
|
(B-, B3)
|
|
02
/15/16
|
|
|
8.500
|
|
|
|
328,125
|
|
|
|
1,525
|
|
|
LyondellBasell Industries AF SCA, Rule 144A, Senior Secured Notes
(Callable 08/15/10 @ $104.19) (Luxembourg)
|
|
(CCC+, B3)
|
|
08
/15/15
|
|
|
8.375
|
|
|
|
541,375
|
|
|
|
|
|
|
|
|
|
|
|
869,500
|
|
|
Electronics
(1.9%)
|
|
|
|
|
1,150
|
|
|
Avago Technologies Finance, Global Company Guaranteed Notes
(Callable 12/01/10 @ $105.94) (Singapore)
|
|
(B, B3)
|
|
12
/01/15
|
|
|
11.875
|
|
|
|
937,250
|
|
|
|
625
|
|
|
Celestica, Inc., Senior Subordinated Notes (Callable 07/01/09 @ $103.81) (Canada)
|
|
(B, B3)
|
|
07
/01/13
|
|
|
7.625
|
|
|
|
509,375
|
|
|
|
1,000
|
|
|
New Asat, Ltd., Global Company Guaranteed Notes (Callable 02/01/09 @ $102.31) (Cayman Islands)
|
|
(CCC-, Caa1)
|
|
02
/01/11
|
|
|
9.250
|
|
|
|
420,000
|
|
|
|
900
|
|
|
NXP BV/NXP Funding LLC, Global Company Guaranteed Notes
(Callable 10/15/11 @ $104.31) (Netherlands)
|
|
(CCC-, Caa3)
|
|
10
/15/15
|
|
|
8.625
|
|
|
|
330,961
|
|
|
|
50
|
|
|
NXP BV/NXP Funding LLC, Global Senior Secured Notes (Callable 10/15/10 @ $103.94) (Netherlands)
|
|
(B-, B3)
|
|
10
/15/14
|
|
|
7.875
|
|
|
|
25,000
|
|
|
|
|
|
|
|
|
|
|
|
2,222,586
|
|
|
Energy - Exploration & Production
(0.4%)
|
|
|
|
|
875
|
|
|
OPTI Canada, Inc., Global Senior Secured Notes (Callable 12/15/10 @ $104.13) (Canada)
|
|
(BB+, B1)
|
|
12
/15/14
|
|
|
8.250
|
|
|
|
525,000
|
|
|
Forestry & Paper
(1.1%)
|
|
|
|
|
2,325
|
|
|
Abitibi-Consolidated, Inc., Global Company Guaranteed Notes (Canada)
|
|
(CCC+, Caa2)
|
|
06
/15/11
|
|
|
7.750
|
|
|
|
523,125
|
|
|
|
1,000
|
|
|
Smurfit Kappa Funding PLC, Global Senior Subordinated Notes (Callable 01/31/10 @ $103.88) (Ireland)
|
|
(B+, B2)
|
|
04
/01/15
|
|
|
7.750
|
|
|
|
715,000
|
|
|
|
|
|
|
|
|
|
|
|
1,238,125
|
|
|
Gaming
(0.3%)
|
|
|
|
|
600
|
|
|
Codere Finance Luxembourg SA, Rule 144A, Senior Secured Notes
(Callable 06/15/10 @ $104.13) (Luxembourg)
|
|
(B+, B2)
|
|
06
/15/15
|
|
|
8.250
|
|
|
|
346,178
|
|
|
Media - Cable
(1.0%)
|
|
|
|
|
150
|
|
|
NTL Cable PLC, Global Senior Notes (Callable 08/15/11 @ $104.56) (United Kingdom)
|
|
(B-, B2)
|
|
08
/15/16
|
|
|
9.125
|
|
|
|
99,750
|
|
|
|
675
|
|
|
Unitymedia GmbH, Rule 144A, Senior Secured Notes (Callable 02/15/10 @ $105.06) (Germany)
|
|
(B, Caa1)
|
|
02
/15/15
|
|
|
10.125
|
|
|
|
641,951
|
|
|
|
500
|
|
|
Virgin Media Finance PLC, Global Company Guaranteed Notes
.(Callable 04/15/09 @ $104.88) (United Kingdom)
|
|
(B-, B2)
|
|
04
/15/14
|
|
|
9.750
|
|
|
|
464,528
|
|
|
|
|
|
|
|
|
|
|
|
1,206,229
|
|
|
Media - Diversified
(0.6%)
|
|
|
|
|
975
|
|
|
Quebecor Media, Inc., Global Senior Unsecured Notes (Callable 03/15/11 @ $103.88) (Canada)
|
|
(B, B2)
|
|
03
/15/16
|
|
|
7.750
|
|
|
|
680,062
|
|
|
Oil Refining & Marketing
(0.6%)
|
|
|
|
|
875
|
|
|
Petroplus Finance, Ltd., Rule 144A, Company Guaranteed Notes
(Callable 05/01/11 @ $103.38) (Bermuda)
|
|
(BB-, B1)
|
|
05
/01/14
|
|
|
6.750
|
|
|
|
590,625
|
|
|
|
100
|
|
|
Petroplus Finance, Ltd., Rule 144A, Company Guaranteed Notes
(Callable 05/01/12 @ $103.50) (Bermuda)
|
|
(BB-, B1)
|
|
05
/01/17
|
|
|
7.000
|
|
|
|
66,000
|
|
|
|
|
|
|
|
|
|
|
|
656,625
|
|
|
See Accompanying Notes to Financial Statements.
10
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
Par
(000)
|
|
|
|
Ratings
(S&P/Moody's)
|
|
Maturity
|
|
Rate%
|
|
Value
|
|
FOREIGN CORPORATE BONDS
|
|
|
|
Packaging
(0.2%)
|
|
|
|
$
|
275
|
|
|
Impress Holdings BV, Rule 144A, Company Guaranteed Notes
(Callable 09/15/09 @ $109.25) (Netherlands)
|
|
(B-, B3)
|
|
09
/15/14
|
|
|
9.250
|
|
|
$
|
202,254
|
|
|
Pharmaceuticals
(0.5%)
|
|
|
|
|
775
|
|
|
Elan Finance PLC, Global Company Guaranteed Notes (Callable 12/01/10 @ $104.44) (Ireland)
|
|
(B, B3)
|
|
12
/01/13
|
|
|
8.875
|
|
|
|
492,125
|
|
|
|
150
|
|
|
Elan Finance PLC, Global Company Guaranteed Notes (Callable 11/15/08 @ $103.88) (Ireland)
|
|
(B, B3)
|
|
11
/15/11
|
|
|
7.750
|
|
|
|
100,500
|
|
|
|
|
|
|
|
|
|
|
|
592,625
|
|
|
Support - Services
(0.8%)
|
|
|
|
|
1,000
|
|
|
Ashtead Holdings PLC, Rule 144A, Secured Notes (Callable 08/01/10 @ $104.31) (United Kingdom)
|
|
(B, B1)
|
|
08
/01/15
|
|
|
8.625
|
|
|
|
635,000
|
|
|
|
525
|
|
|
Carlson Wagonlit BV, Rule 144A, Company Guaranteed Notes
(Callable 12/08/08 @ $104.00) (Netherlands) #
|
|
(B-, B2)
|
|
05
/01/15
|
|
|
10.713
|
|
|
|
336,192
|
|
|
|
|
|
|
|
|
|
|
|
971,192
|
|
|
Telecom - Integrated/Services
(1.7%)
|
|
|
|
|
1,550
|
|
|
Global Crossing UK Finance, Global Company Guaranteed Notes
(Callable 12/15/09 @ $105.38) (United Kingdom)
|
|
(B-, B3)
|
|
12
/15/14
|
|
|
10.750
|
|
|
|
1,232,250
|
|
|
|
550
|
|
|
Hellas Telecommunications II SCA, Rule 144A, Company Guaranteed Notes
(Callable 01/15/09 @ $102.00) (Luxembourg) #
|
|
(CCC+, Caa1)
|
|
01
/15/15
|
|
|
10.503
|
|
|
|
162,250
|
|
|
|
650
|
|
|
Nordic Telephone Co. Holdings, Rule 144A, Senior Secured Notes
(Callable 05/01/11 @ $104.44) (Denmark)
|
|
(B+, B2)
|
|
05
/01/16
|
|
|
8.875
|
|
|
|
549,250
|
|
|
|
|
|
|
|
|
|
|
|
1,943,750
|
|
|
Telecommunications Equipment
(0.4%)
|
|
|
|
|
875
|
|
|
Nortel Networks, Ltd., Rule 144A, Company Guaranteed Notes (Callable 07/15/11 @ $105.38) (Canada)
|
|
(B-, B3)
|
|
07
/15/16
|
|
|
10.750
|
|
|
|
465,938
|
|
|
Textiles & Apparel
(0.0%)
|
|
|
|
|
75
|
|
|
IT Holding Finance SA, Rule 144A, Company Guaranteed Notes (Luxembourg)
|
|
(CCC+, B3)
|
|
11
/15/12
|
|
|
9.875
|
|
|
|
27,580
|
|
|
Transportation - Excluding Air/Rail
(1.0%)
|
|
|
|
|
1,450
|
|
|
Ship Finance International, Ltd., Global Company Guaranteed Notes
(Callable 12/15/08 @ $104.25) (Bermuda)
|
|
(B+, B1)
|
|
12
/15/13
|
|
|
8.500
|
|
|
|
1,154,562
|
|
|
TOTAL FOREIGN CORPORATE BONDS
(Cost $22,871,214)
|
|
|
|
|
|
|
|
|
13,112,206
|
|
|
Number
of Shares
|
|
|
|
|
|
|
|
|
|
|
|
COMMON STOCK
(0.0%)
|
|
|
|
Chemicals
(0.0%)
|
|
|
|
|
4,893
|
|
|
Huntsman Corp. (Cost $34,459)
|
|
|
|
|
|
|
|
|
|
|
49,420
|
|
|
WARRANTS
(0.0%)
|
|
|
|
Electronics
(0.0%)
|
|
|
|
|
204,293
|
|
|
Viasystems, Inc., strike price $25.31, expires 01/31/10 *^ (Cost $3,772,613)
|
|
|
|
|
|
|
|
|
|
|
2,043
|
|
|
SHORT-TERM INVESTMENT
(0.2%)
|
|
|
|
|
250,163
|
|
|
State Street Navigator Prime Portfolio §§ (Cost $250,163)
|
|
|
250,163
|
|
|
TOTAL INVESTMENTS AT VALUE
(146.0%) (Cost $262,996,210)
|
|
|
170,124,699
|
|
|
LIABILITIES IN EXCESS OF OTHER ASSETS
(-46.0%)
|
|
|
(53,632,644
|
)
|
|
NET ASSETS
(100.0%)
|
|
$
|
116,492,055
|
|
|
See Accompanying Notes to Financial Statements.
11
Credit Suisse High Yield Bond Fund
Schedule of Investments (continued)
October 31, 2008
INVESTMENT ABBREVIATION
NR = Not Rated
Credit ratings given by the Standard & Poor's Division of The McGraw-Hill Companies, Inc. ("S&P") and Moody's Investors Service, Inc. ("Moody's") are unaudited.
Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At October 31, 2008, these securities amounted to a value of $27,846,312 or 23.9% of net assets.
+ Step Bond - The interest rate is as of October 31, 2008 and will reset at a future date.
# Variable rate obligations - The interest rate is the rate as of October 31, 2008.
ø Bond is currently in default.
* Non-income producing security.
^ Not readily marketable security; security is valued at fair value as determined in good faith by, or under the direction of, the Board of Trustees.
§ Security or portion thereof is out on loan.
§§ Represents security purchased with cash collateral received for securities on loan.
See Accompanying Notes to Financial Statements.
12
Credit Suisse High Yield Bond Fund
Statement of Assets and Liabilities
October 31, 2008
Assets
|
|
Investments at value, including collateral for securities on loan of $250,163
(Cost $262,996,210) (Note 2)
|
|
$
|
170,124,699
|
1
|
|
Foreign currency at value (cost $154,655)
|
|
|
73,039
|
|
|
Interest receivable
|
|
|
6,548,302
|
|
|
Receivable for investments sold
|
|
|
406,196
|
|
|
Unrealized appreciation on forward currency contracts (Note 2)
|
|
|
308,364
|
|
|
Prepaid expenses and other assets
|
|
|
21,396
|
|
|
Total Assets
|
|
|
177,481,996
|
|
|
Liabilities
|
|
Advisory fee payable (Note 3)
|
|
|
326,199
|
|
|
Administrative services fee payable (Note 3)
|
|
|
25,495
|
|
|
Loan payable (Note 4)
|
|
|
58,610,000
|
|
|
Due to custodian
|
|
|
1,281,995
|
|
|
Interest payable (Note 4)
|
|
|
379,186
|
|
|
Payable upon return of securities loaned (Note 2)
|
|
|
250,163
|
|
|
Trustees' fee payable
|
|
|
34,424
|
|
|
Other accrued expenses payable
|
|
|
82,479
|
|
|
Total Liabilities
|
|
|
60,989,941
|
|
|
Net Assets
|
|
Applicable to 55,737,609 shares outstanding
|
|
$
|
116,492,055
|
|
|
Net Assets
|
|
Capital stock, $.001 par value (Note 6)
|
|
$
|
55,738
|
|
|
Paid-in capital (Note 6)
|
|
|
410,315,782
|
|
|
Accumulated net investment income
|
|
|
567,020
|
|
|
Accumulated net realized loss on investments, swap contracts and foreign currency transactions
|
|
|
(201,848,906
|
)
|
|
Net unrealized depreciation on investments and foreign currency translations
|
|
|
(92,597,579
|
)
|
|
Net Assets
|
|
$
|
116,492,055
|
|
|
Net Asset Value Per Share ($116,492,055 / 55,737,609)
|
|
$
|
2.09
|
|
|
Market Price Per Share
|
|
$
|
1.97
|
|
|
1
Including $244,371 of securities on loan.
See Accompanying Notes to Financial Statements.
13
Credit Suisse High Yield Bond Fund
Statement of Operations
For the Year Ended October 31, 2008
Investment Income
(Note 2)
|
|
Interest
|
|
$
|
28,927,775
|
|
|
Securities lending
|
|
|
706,540
|
|
|
Total investment income
|
|
|
29,634,315
|
|
|
Expenses
|
|
Investment advisory fees (Note 3)
|
|
|
2,601,008
|
|
|
Administrative services fees (Note 3)
|
|
|
126,062
|
|
|
Interest Expense (Note 4)
|
|
|
4,327,766
|
|
|
Legal fees
|
|
|
170,148
|
|
|
Trustees' fees (Note 3)
|
|
|
88,774
|
|
|
Printing fees (Note 3)
|
|
|
59,905
|
|
|
Audit and tax fees
|
|
|
39,498
|
|
|
Transfer agent fees
|
|
|
18,397
|
|
|
Custodian fees
|
|
|
16,784
|
|
|
Stock exchange listing fees
|
|
|
15,127
|
|
|
Insurance expense
|
|
|
6,646
|
|
|
Miscellaneous expense
|
|
|
13,896
|
|
|
Total expenses
|
|
|
7,484,011
|
|
|
Less: fees waived (Note 3)
|
|
|
(269,869
|
)
|
|
Net expenses
|
|
|
7,214,142
|
|
|
Net investment income
|
|
|
22,420,173
|
|
|
Net Realized and Unrealized Gain (Loss) from Investments, Swap Contracts and
Foreign Currency Related Items
|
|
Net realized loss from investments
|
|
|
(29,773,438
|
)
|
|
Net realized loss from swap contracts
|
|
|
(59,097
|
)
|
|
Net realized gain from foreign currency transactions
|
|
|
536,396
|
|
|
Net change in unrealized appreciation (depreciation) from investments
|
|
|
(83,214,438
|
)
|
|
Net change in unrealized appreciation (depreciation) from swap contracts
|
|
|
131,115
|
|
|
Net change in unrealized appreciation (depreciation) from foreign currency translations
|
|
|
333,514
|
|
|
Net realized and unrealized loss from investments, swap contracts and foreign currency related items
|
|
|
(112,045,948
|
)
|
|
Net decrease in net assets resulting from operations
|
|
$
|
(89,625,775
|
)
|
|
See Accompanying Notes to Financial Statements.
14
Credit Suisse High Yield Bond Fund
Statements of Changes in Net Assets
|
|
For the Year
Ended
October 31, 2008
|
|
For the Year
Ended
October 31, 2007
|
|
From Operations
|
|
Net investment income
|
|
$
|
22,420,173
|
|
|
$
|
22,440,607
|
|
|
Net realized gain (loss) from investments, swap contracts and foreign
currency transactions
|
|
|
(29,296,139
|
)
|
|
|
4,262,257
|
|
|
Net change in unrealized depreciation from investments, swap contracts and foreign
currency translations
|
|
|
(82,749,809
|
)
|
|
|
(9,001,387
|
)
|
|
Net increase (decrease) in net assets resulting from operations
|
|
|
(89,625,775
|
)
|
|
|
17,701,477
|
|
|
From Dividends
|
|
Dividends from net investment income
|
|
|
(22,627,498
|
)
|
|
|
(22,135,443
|
)
|
|
Net decrease in net assets resulting from dividends
|
|
|
(22,627,498
|
)
|
|
|
(22,135,443
|
)
|
|
From Capital Share Transactions
(Note 6)
|
|
Issuance of 6,420 and 0 shares through the directors compensation plan (Note 3)
|
|
|
21,443
|
|
|
|
|
|
|
Reinvestment of dividends
|
|
|
|
|
|
|
1,392,911
|
|
|
Net increase in net assets from capital share transactions
|
|
|
21,443
|
|
|
|
1,392,911
|
|
|
Net decrease in net assets
|
|
|
(112,231,830
|
)
|
|
|
(3,041,055
|
)
|
|
Net Assets
|
|
Beginning of year
|
|
|
228,723,885
|
|
|
|
231,764,940
|
|
|
End of year
|
|
$
|
116,492,055
|
|
|
$
|
228,723,885
|
|
|
Accumulated net investment income (loss)
|
|
$
|
567,020
|
|
|
$
|
(321,142
|
)
|
|
See Accompanying Notes to Financial Statements.
15
Credit Suisse High Yield Bond Fund
Statement of Cash Flows
For the Year Ended October 31, 2008
Cash flows from operating activities
|
|
Interest and securities lending income received
|
|
$
|
29,220,375
|
|
|
|
|
|
|
Operating expenses paid
|
|
|
(7,242,212
|
)
|
|
|
|
|
|
Sales/maturities of short-term securities, net
|
|
|
2,354,000
|
|
|
|
|
|
|
Purchases of long-term securities
|
|
|
(134,372,618
|
)
|
|
|
|
|
|
Proceeds from sales of long-term securities
|
|
|
180,276,380
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
$
|
70,235,925
|
|
|
Cash flows from financing activities
|
|
Decrease in loan payable
|
|
|
(48,890,000
|
)
|
|
|
|
|
|
Proceeds from issuance of shares
|
|
|
21,443
|
|
|
|
|
|
|
Cash dividends paid
|
|
|
(22,627,498
|
)
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
|
|
|
|
(71,496,055
|
)
|
|
Net decrease in cash
|
|
|
|
|
|
|
(1,260,130
|
)
|
|
Cash beginning of year
|
|
|
|
|
|
|
51,174
|
|
|
Due to custodian end of year
|
|
|
|
|
|
$
|
(1,208,956
|
)
|
|
RECONCILIATION OF NET DECREASE IN NET ASSETS
FROM OPERATIONS TO NET CASH PROVIDED BY
OPERATING ACTIVITIES
|
|
Net decrease in net assets resulting from operations
|
|
|
|
|
|
$
|
(89,625,775
|
)
|
|
Adjustments to reconcile net decrease in net assets from
operations to net cash provided by operating activities
|
|
Decrease in interest receivable
|
|
$
|
1,390,028
|
|
|
|
|
|
|
Decrease in swap contracts at value
|
|
|
(131,115
|
)
|
|
|
|
|
|
Decrease in accrued expenses
|
|
|
(32,989
|
)
|
|
|
|
|
|
Decrease in interest payable
|
|
|
(167,810
|
)
|
|
|
|
|
|
Decrease in prepaid expenses and other assets
|
|
|
71,319
|
|
|
|
|
|
|
Increase in advisory fees payable
|
|
|
101,410
|
|
|
|
|
|
|
Net amortization of discount on investments
|
|
|
(1,803,968
|
)
|
|
|
|
|
|
Purchases of long-term securities
|
|
|
(134,372,618
|
)
|
|
|
|
|
|
Proceeds from sales of long-term securities
|
|
|
180,276,380
|
|
|
|
|
|
|
Sales/maturities of short-term securities, net
|
|
|
2,354,000
|
|
|
|
|
|
|
Net change in unrealized depreciation on investments, and foreign currencies
|
|
|
88,291,562
|
|
|
|
|
|
|
Net realized loss on investments, foreign currencies and swap contracts
|
|
|
23,885,501
|
|
|
|
|
|
|
Total adjustments
|
|
|
|
|
|
|
159,861,700
|
|
|
Net cash provided by operating activities
|
|
|
|
|
|
$
|
70,235,925
|
|
|
Non-cash activity:
|
|
Dividend reinvestments
|
|
|
|
|
|
$
|
|
|
|
See Accompanying Notes to Financial Statements.
16
This page intentionally left blank
Credit Suisse High Yield Bond Fund
Financial Highlights
|
|
Year Ended
|
|
Per share operating performance
|
|
10/31/08
|
|
10/31/07
|
|
10/31/06
|
|
10/31/05
|
|
10/31/04
|
|
10/31/03
|
|
10/31/02
|
|
10/3101
|
|
10/31/00
|
|
10/31/99
|
|
Net asset value, beginning of year
|
|
$
|
4.10
|
|
|
$
|
4.18
|
|
|
$
|
4.12
|
|
|
$
|
4.53
|
|
|
$
|
4.34
|
|
|
$
|
3.53
|
|
|
$
|
4.49
|
|
|
$
|
6.16
|
|
|
$
|
7.98
|
|
|
$
|
8.36
|
|
|
INVESTMENT OPERATIONS
|
|
Net investment income
|
|
|
0.40
1
|
|
|
|
0.40
1
|
|
|
|
0.40
|
|
|
|
0.47
|
|
|
|
0.53
|
|
|
|
0.55
|
|
|
|
0.65
1
|
|
|
|
0.84
|
|
|
|
0.96
1
|
|
|
|
0.98
|
|
|
Net gain (loss) on investments, swap contracts
and foreign currency related items (both realized and unrealized)
|
|
|
(2.00
|
)
|
|
|
(0.08
|
)
|
|
|
0.11
|
|
|
|
(0.35
|
)
|
|
|
0.24
|
|
|
|
0.87
|
|
|
|
(0.80
|
)
|
|
|
(1.63
|
)
|
|
|
(1.80
|
)
|
|
|
(0.38
|
)
|
|
Total from investment operations
|
|
|
(1.60
|
)
|
|
|
0.32
|
|
|
|
0.51
|
|
|
|
0.12
|
|
|
|
0.77
|
|
|
|
1.42
|
|
|
|
(0.15
|
)
|
|
|
(0.79
|
)
|
|
|
(0.84
|
)
|
|
|
0.60
|
|
|
LESS DIVIDENDS
|
|
Dividends from net investment income
|
|
|
(0.41
|
)
|
|
|
(0.40
|
)
|
|
|
(0.42
|
)
|
|
|
(0.51
|
)
|
|
|
(0.58
|
)
|
|
|
(0.61
|
)
|
|
|
(0.71
|
)
|
|
|
(0.86
|
)
|
|
|
(0.98
|
)
|
|
|
(0.98
|
)
|
|
Return of capital
|
|
|
|
|
|
|
|
|
|
|
(0.03
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
|
(0.10
|
)
|
|
|
(0.02
|
)
|
|
|
|
|
|
|
|
|
|
Total dividends
|
|
|
(0.41
|
)
|
|
|
(0.40
|
)
|
|
|
(0.45
|
)
|
|
|
(0.53
|
)
|
|
|
(0.58
|
)
|
|
|
(0.61
|
)
|
|
|
(0.81
|
)
|
|
|
(0.88
|
)
|
|
|
(0.98
|
)
|
|
|
(0.98
|
)
|
|
Offering costs charged to paid-in-capital
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.00
2
|
|
|
Net asset value, end of year
|
|
$
|
2.09
|
|
|
$
|
4.10
|
|
|
$
|
4.18
|
|
|
$
|
4.12
|
|
|
$
|
4.53
|
|
|
$
|
4.34
|
|
|
$
|
3.53
|
|
|
$
|
4.49
|
|
|
$
|
6.16
|
|
|
$
|
7.98
|
|
|
Per share market value, end of year
|
|
$
|
1.97
|
|
|
$
|
3.65
|
|
|
$
|
4.50
|
|
|
$
|
4.77
|
|
|
$
|
5.24
|
|
|
$
|
4.76
|
|
|
$
|
4.10
|
|
|
$
|
5.07
|
|
|
$
|
6.19
|
|
|
$
|
8.06
|
|
|
Total return (market value)
3
|
|
|
(38.20
|
)%
|
|
|
(10.72
|
)%
|
|
|
5.23
|
%
|
|
|
2.71
|
%
|
|
|
25.49
|
%
|
|
|
35.07
|
%
|
|
|
(2.15
|
)%
|
|
|
(3.21
|
)%
|
|
|
(12.15
|
)%
|
|
|
(5.71
|
)%
|
|
RATIOS AND SUPPLEMENTAL DATA
|
|
Net assets, end of year (000s omitted)
|
|
$
|
116,492
|
|
|
$
|
228,724
|
|
|
$
|
231,765
|
|
|
$
|
255,760
|
|
|
$
|
244,523
|
|
|
$
|
229,255
|
|
|
$
|
180,889
|
|
|
$
|
219,440
|
|
|
$
|
286,838
|
|
|
$
|
358,679
|
|
|
Average debt per share
|
|
$
|
1.69
|
|
|
$
|
1.98
|
|
|
$
|
1.96
|
|
|
$
|
2.05
|
|
|
$
|
2.05
|
|
|
$
|
1.81
|
|
|
$
|
1.99
|
|
|
$
|
2.49
|
|
|
$
|
3.47
|
|
|
$
|
3.18
|
|
|
Ratio of expenses to average net assets
|
|
|
3.76
|
%
|
|
|
4.11
|
%
|
|
|
4.20
|
%
|
|
|
3.27
|
%
|
|
|
2.51
|
%
|
|
|
2.57
|
%
|
|
|
2.91
|
%
|
|
|
4.29
|
%
|
|
|
4.81
|
%
|
|
|
3.62
|
%
|
|
Ratio of expenses to average net assets excluding interest expense
|
|
|
1.50
|
%
|
|
|
1.37
|
%
|
|
|
1.65
|
%
|
|
|
1.68
|
%
|
|
|
1.70
|
%
|
|
|
1.73
|
%
|
|
|
1.78
|
%
|
|
|
1.73
|
%
|
|
|
1.61
|
%
|
|
|
1.53
|
%
|
|
Ratio of net investment income to average net assets
|
|
|
11.68
|
%
|
|
|
9.48
|
%
|
|
|
9.67
|
%
|
|
|
10.72
|
%
|
|
|
11.99
|
%
|
|
|
13.85
|
%
|
|
|
15.17
|
%
|
|
|
15.22
|
%
|
|
|
12.90
|
%
|
|
|
11.24
|
%
|
|
Decrease reflected in above operating expense ratios due to waivers/reimbursements
|
|
|
0.15
|
%
|
|
|
0.15
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
|
|
|
32.01
|
%
|
|
|
49.18
|
%
|
|
|
61.91
|
%
|
|
|
31.05
|
%
|
|
|
12.10
|
%
|
|
|
15.96
|
%
|
|
|
33.22
|
%
|
|
|
46.11
|
%
|
|
|
31.29
|
%
|
|
|
60.23
|
%
|
|
1
Based on average shares outstanding.
2
Amount rounds to less than $0.01.
3
Total return is based on the change in market price of a share during the period and assumes reinvestment of dividends and
distributions at actual prices pursuant to the Fund's Dividend Reinvestment Plan. Total return based on market value, which can
be significantly higher or lower than the net asset value, may result in substantially different returns.
See Accompanying Notes to Financial Statements.
18
See Accompanying Notes to Financial Statements.
19
Credit Suisse High Yield Bond Fund
Notes to Financial Statements
October 31, 2008
Note 1. Organization
Credit Suisse High Yield Bond Fund (the "Fund") is a business trust organized under the laws of the State of Delaware on April 30, 1998. The Fund is registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended ("Investment Company Act"), as a non-diversified, closed-end management investment company. The Fund's primary objective is to seek high current income.
Note 2. Significant Accounting Policies
A) SECURITY VALUATION The net asset value of the Fund is determined daily as of the close of regular trading on the New York Stock Exchange, Inc. (the "Exchange") on each day the Exchange is open for business. Debt securities with a remaining maturity greater than 60 days are valued in accordance with the price supplied by a pricing service, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. Debt obligations that will mature in 60 days or less are valued on the basis of amortized cost, which approximates market value, unless it is determined that using this method would not represent fair value. Equity investments are valued at market value, which is generally determined using the closing price on the exchange or market on which the security is primarily traded at the time of valuation ("Valuation Time"). If no sales are reported, equity investments are generally valued at the most recent bid quotation as of the Valuation Time or at the lowest asked quotation in the case of a short sale of securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Securities and other assets for which market quotations are not readily available, or whose values have been materially affected by events occurring before the Fund's Valuation Time but after the close of the securities' primary markets, are valued at fair value as determined in good faith by, or under direction of, the Board of Trustees under procedures established by the Board of Trustees. At October 31, 2008, the Fund held 0.09% of its net assets in securities valued at fair value as determined in good faith under procedures established by the Board of Trustees with an aggregate cost of $3,772,613 and fair value of $102,142. The Fund's estimate of fair value assumes a willing buyer and a willing seller neither acting under the compulsion to buy or sell. Although these securities may be resold in privately negotiated transactions, the prices realized on such sales could differ from the prices originally paid by the Fund or the current carrying values, and the difference could be material.
B) FOREIGN CURRENCY TRANSACTIONS The books and records of the Fund are maintained in U.S. dollars. Transactions denominated in foreign currencies are recorded at the current prevailing exchange rates. All assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate at the end of the period. Translation gains or losses resulting from changes in the exchange rate during the reporting period and realized gains and losses on the settlement of foreign currency transactions are reported in the results of operations for the current period. The Fund does not isolate that portion of realized gains and losses on investments in
equity
securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of equity securities. The Fund isolates that portion of realized gains and losses on investments in
debt
securities which is due to changes in the foreign exchange rate from that which is due to changes in market prices of debt securities.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME Security transactions are accounted for on a trade date basis. Interest income is recorded on the accrual basis. The Fund amortizes premiums and accretes discounts using the effective interest method. Dividends are recorded on the ex-dividend date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes.
20
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2008
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS The Fund declares and pays dividends on a monthly basis. Distributions of net realized capital gains, if any, are declared and paid at least annually. However, to the extent that a net realized capital gain can be reduced by a capital loss carryforward, such gain will not be distributed. Income dividends and capital gain distributions are determined in accordance with income tax regulations, which may differ from accounting principles generally accepted in the United States of America ("GAAP").
The Fund's dividend policy is to distribute substantially all of its net investment income to its shareholders on a monthly basis. However, in order to provide shareholders with a more consistent yield to the current trading price of shares of beneficial interest of the Fund, the Fund may at times pay out less than the entire amount of net investment income earned in any particular month and may at times in any month pay out such accumulated but undistributed income in addition to net investment income earned in that month. As a result, the dividends paid by the Fund for any particular month may be more or less than the amount of net investment income earned by the Fund during such month.
E) FEDERAL INCOME TAXES No provision is made for federal taxes as it is the Fund's intention to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, and to make the requisite distributions to its shareholders, which will be sufficient to relieve it from federal income and excise taxes.
During June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation 48 ("FIN 48" or the "Interpretation"),
Accounting for Uncertainty in Income Taxes an interpretation of FASB statement 109.
The Fund has reviewed its' current tax positions and has determined that no provision for income tax is required in the Fund's financial statements. The Fund's federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service.
F) SHORT-TERM INVESTMENTS The Fund, together with other funds/portfolios advised by Credit Suisse Asset Management, LLC ("Credit Suisse"), an indirect, wholly-owned subsidiary of Credit Suisse Group AG, pools available cash into either a short-term variable rate time deposit issued by State Street Bank and Trust Company ("SSB"), the Fund's custodian, or a money market fund advised by Credit Suisse. The short-term time deposit issued by SSB is a variable rate account classified as a short-term investment.
G) CASH FLOW INFORMATION Cash, as used in the Statement of Cash Flows, is the amount reported in the Statement of Assets and Liabilities. The Fund invests in securities and distributes dividends from net investment income and net realized gains, if any (which are either paid in cash or reinvested at the discretion of shareholders). These activities are reported in the Statement of Changes in Net Assets. Information on cash payments is presented in the Statement of Cash Flows. Accounting practices that do not affect reporting activities on a cash basis include unrealized gain or loss on investment securities and accretion or amortization income recognized on investment securities.
H) USE OF ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from these estimates.
I) SECURITIES LENDING Loans of securities are required at all times to be secured by collateral at least equal to 102% of the market value of domestic securities on loan (including any accrued interest thereon). Cash collateral received by the Fund in connection with securities lending activity may be pooled together with cash collateral for
21
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2008
other funds/portfolios advised by Credit Suisse and may be invested in a variety of investments, including certain Credit Suisse-advised funds, funds advised by SSB, the Fund's securities lending agent, or money market instruments. However, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings.
SSB has been engaged by the Fund to act as the Fund's securities lending agent. The Fund's securities lending arrangement provides that the Fund and the Borrower will share the net income earned from the securities lending activities. During the year ended October 31, 2008, total earnings from the Fund's investment in cash collateral received in connection with securities lending arrangements was $2,598,946, of which $1,717,590 was rebated to borrowers (brokers). The Fund retained $706,540 in income from the cash collateral investment, and SSB, as lending agent, was paid $174,816. The Fund may also be entitled to certain minimum amounts of income from its securities lending activities. Securities lending income is accrued as earned.
J) FORWARD FOREIGN CURRENCY CONTRACTS The Fund may enter into forward foreign currency contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date. Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency. The Fund will enter into forward foreign currency contracts primarily for hedging purposes. Forward foreign currency contracts are adjusted by the daily forward exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the contract settlement date or an offsetting position is entered into. At October 31, 2008, the Fund had the following open forward foreign currency contracts:
Forward Foreign
Currency to be
Purchased (Local)
|
|
Forward Foreign
Currency to be
Sold (Local)
|
|
Expiration
Date
|
|
Value on
Settlement Date
|
|
Current
Value
|
|
Unrealized
Appreciation/
(Depreciation)
|
|
USD
|
3,567,064
|
|
|
EUR
|
2,614,000
|
|
|
01
/09/09
|
|
$
|
(3,567,064
|
)
|
|
$
|
(3,309,062
|
)
|
|
$
|
258,002
|
|
|
USD
|
654,518
|
|
|
GBP
|
375,250
|
|
|
01
/09/09
|
|
$
|
(654,518
|
)
|
|
$
|
(604,156
|
)
|
|
|
50,362
|
|
|
Total
|
|
$
|
308,364
|
|
|
Currency Abbreviations:
EUR Euro Currency
GBP British Pound
USD United States Dollar
K) CREDIT DEFAULT SWAPS The Fund may enter into credit default swap agreements either as a buyer or seller. The Fund may buy a credit default swap to attempt to mitigate the risk of default or credit quality deterioration in one or more individual holdings or in a segment of the fixed income securities market. The Fund may sell a credit default swap in an attempt to gain exposure to an underlying issuer's credit quality characteristics without investing directly in that issuer.
The Fund bears the risk of loss of the amount expected to be received under a credit default swap agreement in the event of the default or bankruptcy of the counterparty. The Fund will enter into swap agreements only with counterparties that meet certain standards of creditworthiness (generally, such counterparties would have to be eligible counterparties under the terms of the fund's repurchase agreement guidelines). Credit default swap agreements are generally valued at a price at which the counterparty to such agreement would terminate the agreement. At October 31, 2008, the Fund had no outstanding credit default swap contracts.
22
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2008
Note 3. Transactions with Affiliates and Related Parties
The Fund has entered into an Investment Advisory Agreement (the "Advisory Agreement") with Credit Suisse. The Advisory Agreement provides for a fee at the annual rate of 1.00% of the first $250 million of the average weekly value of the Fund's total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage) and 0.75% of the average weekly value of the Fund's total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage) greater than $250 million. Effective January 1, 2007, Credit Suisse agreed to waive 0.15% of the fees payable under the Advisory Agreement. For the year ended October 31, 2008, investment advisory fees earned and voluntarily waived were $2,601,008 and $269,869, respectively.
SSB serves as Accounting and Administrative Agent for the Fund. For its administrative services, SSB receives a fee, exclusive of out-of-pocket expenses, calculated in total for all the Credit Suisse funds/portfolios co-administered by SSB and allocated based upon the relative average net assets of each fund/portfolio, subject to an annual minimum fee. For the year ended October 31, 2008, administrative services fees earned by SSB (including out-of-pocket expenses) were $126,062.
The Independent Trustees receive fifty percent (50%) of their annual retainer in the form of shares purchased by the Fund's transfer agent in the open market. Beginning in 2008, the Independent Trustees can elect to receive up to 100% of their annual retainer in shares of the Fund. During the fiscal year ended October 31, 2008, 6,420 shares were issued through the directors compensation plan. Trustees as a group own less than 1% of the Funds outstanding shares.
Merrill Corporation ("Merrill"), an affiliate of Credit Suisse, has been engaged by the Fund to provide certain financial printing and fulfillment services. For the year ended October 31, 2008, Merrill was paid $45,708 for its services to the Fund.
Note 4. Line of Credit
The Fund has a $150 million line of credit provided by Citibank North America, Inc., under a Revolving Credit and Security Agreement (the "Citibank Agreement") dated April 12, 2002, as amended from time to time, primarily to leverage its investment portfolio. Under the Citibank Agreement, the Fund may borrow the lesser of $150 million or 33
1
/
3
% of its gross assets. Interest is payable at the Bank's Base Rate plus a commission of 0.05%. Effective June 2008, the maximum amount permitted to be borrowed under the line of credit was reduced to $115 million. The Citibank Agreement requires, among other provisions, that the percentage obtained by dividing total indebtedness for money borrowed by total assets of the Fund shall not exceed 33
1
/
3
%. At October 31, 2008 the Fund had loans outstanding under the Citibank Agreement of $58,610,000. During the year ended October 31, 2008 the fund had borrowings under the agreement as follows:
Average Daily
Loan Balance
|
|
Weighted Average
Interest Rate%
|
|
Maximum Daily
Loan Outstanding
|
|
$
|
94,166,926
|
|
|
|
3.661
|
%
|
|
$
|
107,500,000
|
|
|
In December 2008, the Citibank Agreement was terminated and replaced by a line of credit with SSB (the "SSB Agreement"), dated December 12, 2008, primarily to leverage its investment portfolio. Under the SSB Agreement, the Fund may borrow the least of: a) $75,000,000; b) an amount that is no greater than 25% of the Fund's total assets minus the sum of liabilities (other than aggregate indebtedness constituting leverage); and c) the Borrowing Base as defined in the SSB Agreement. The SSB Agreement is subject to annual renewal in December 2009.
23
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2008
The use of leverage by the Fund creates an opportunity for increased net income and capital appreciation for the Fund, but, at the same time, creates special risks, and there can be no assurance that a leveraging strategy will be successful during any period in which it is employed. The Fund intends to utilize leverage to provide the shareholders with a potentially higher return. Leverage creates risks for shareholders including the likelihood of greater volatility of net asset value and market price of the Fund's shares and the risk that fluctuations in interest rates on borrowings and short-term debt may affect the return to shareholders. To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the Fund's return will be greater than if leverage had not been used. Conversely, if the income or capital appreciation from the securities purchased with such funds is not sufficient to cover the cost of leverage, the return to the Fund will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders as dividends and other distributions will be reduced. In the latter case, Credit Suisse in its best judgment nevertheless may determine to maintain the Fund's leveraged position if it deems such action to be appropriate under the circumstances. During periods in which the Fund is utilizing leverage, the Management Fee will be higher than if the Fund did not utilize a leveraged capital structure because the fee is calculated as a percentage of the Managed Assets, including those purchased with leverage.
Certain types of borrowings by the Fund may result in the Fund's being subject to covenants in credit agreements, including those relating to asset coverage and portfolio composition requirements. The Fund's lenders may establish guidelines for borrowing which may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the Investment Company Act. There is no guarantee that the Fund's borrowing arrangements or other arrangements for obtaining leverage will continue to be available, or if available, will be available on terms and conditions acceptable to the Fund. Expiration or termination of available financing for leveraged positions, can result in adverse effects to its access to liquidity and its ability to maintain leverage positions, and may cause the Fund to incur losses. Unfavorable economic conditions also could increase funding costs, limit access to the capital markets or result in a decision by lenders not to extend credit to the Fund. In addition, a decline in market value of the Fund's assets may have particular adverse consequences in instances where they have borrowed money based on the market value of those assets. A decrease in market value of those assets may result in the lender requiring the Fund to sell assets at a time when it may not be in the Fund's best interest to do so.
Note 5. Purchases and Sales of Securities
For the year ended October 31, 2008, purchases and sales of investment securities (excluding short-term investments) were $88,609,391 and $130,929,249, respectively.
Note 6. Fund Shares
The Fund has one class of shares of beneficial interest, par value $.001 per share; an unlimited number of shares are authorized. Transactions in shares of beneficial interest were as follows:
|
|
For the Year Ended
October 31, 2008
|
|
For the Year Ended
October 31, 2007
|
|
Shares issued through the directors compensation plan
|
|
|
6,420
|
|
|
|
|
|
|
Shares issued through reinvestment of dividends
|
|
|
|
|
|
|
321,187
|
|
|
Note 7. Concentration of Risk
The Fund invests in securities offering high current income, which generally will be in the lower rating categories of recognized ratings agencies (commonly known as "junk bonds").
24
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2008
These securities generally involve more credit risk than securities in the higher rating categories. In addition, the trading market for high yield securities may be relatively less liquid than the market for higher-rated securities. The Fund's use of leverage also increases exposure to capital risk.
Note 8. Federal Income Taxes
Income and capital gain distributions are determined in accordance with federal income tax regulations, which may differ from GAAP.
The tax characteristics of dividends and distributions paid during the years ended October 31, 2008 and 2007 by the Fund were as follows:
|
|
Ordinary Income
|
|
|
|
|
|
2008
|
|
2007
|
|
|
|
|
|
$
|
22,627,498
|
|
|
$
|
22,135,443
|
|
|
The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences. These differences are primarily due to losses deferred on wash sales and securities lending transactions, foreign currency gain/(loss), income from defaulted bonds and mark to market of forward contracts and swap contracts. At October 31, 2008, the components of distributable earnings on a tax basis for the Fund were as follows:
Undistributed net investment income
|
|
$
|
1,177,579
|
|
|
Accumulated realized loss
|
|
|
(195,605,628
|
)
|
|
Unrealized depreciation
|
|
|
(99,451,416
|
)
|
|
|
|
$
|
(293,879,465
|
)
|
|
At October 31, 2008, the Fund had capital loss carryforwards of available to offset possible future capital gains as follows:
Expires October 31,
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
|
2013
|
|
2014
|
|
2016
|
|
$
|
68,628,620
|
|
|
$
|
77,916,490
|
|
|
$
|
8,291,239
|
|
|
$
|
6,096,544
|
|
|
$
|
1,583,878
|
|
|
$
|
8,944,708
|
|
|
$
|
24,144,149
|
|
|
During the tax year ended October 31, 2008, the Fund did not utilize any of the capital loss carryforward, and had $37,573,747 of capital loss carryforward expire.
It is unlikely that the Fund will realize the full benefit of these losses prior to expiration.
At October 31, 2008, the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized depreciation from investments were $269,541,680, $44,280, $(99,461,261) and $(99,416,981), respectively
At October 31, 2008, the Fund reclassified $1,095,487 to net investment income and $36,479,869 to accumulated net realized loss from investments from paid in capital, to adjust for current period permanent book/tax differences which arose principally from differing book/tax treatments on sales of defaulted bonds, foreign currency gain/(loss), capital loss carryforwards and treatment of income from swap contracts. Net assets were not affected by these reclassifications.
25
Credit Suisse High Yield Bond Fund
Notes to Financial Statements (continued)
October 31, 2008
Note 9. Contingencies
In the normal course of business, the Fund may provide general indemnifications pursuant to certain contracts and organizational documents. The Fund's maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, the risk of loss from such claims is considered remote.
Note 10. Recent Accounting Pronouncements
On September 20, 2006, the FASB released Statement of Financial Accounting Standards No. 157 "Fair Value Measurements" ("FAS 157"). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of October 31, 2008, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required in subsequent reports.
In March 2008, FASB issued Statement of Financial Accounting Standards No. 161,
Disclosures about Derivative Instruments and Hedging Activities
("FAS 161"), an amendment of FASB Statement No. 133. FAS 161 requires enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and hedging activities are accounted for, and (c) how derivative instruments and related hedging activities affect a fund's financial position, financial performance, and cash flows. Management of the Fund does not believe the adoption of FAS 161 will materially impact the financial statement amounts, but will require additional disclosures. This will include qualitative and quantitative disclosures on derivative positions existing at period end and the effect of using derivatives during the reporting period. FAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008.
26
Credit Suisse High Yield Bond Fund
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of
Credit Suisse High Yield Bond Fund:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations, of changes in net assets and of cash flows and the financial highlights present fairly, in all material respects, the financial position of Credit Suisse High Yield Bond Fund (the "Fund") at October 31, 2008, and the results of its operations and its cash flows for the year then ended and the changes in its net assets and financial highlights for the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at October 31, 2008 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
December 29, 2008
27
Credit Suisse High Yield Bond Fund
Information Concerning Trustees and Officers (unaudited)
Name, Address
(Year of Birth)
|
|
Position(s)
Held with Fund
|
|
Term
of Office
and
Length
of Time
Served
|
|
Principal
Occupation(s) During
Past Five Years
|
|
Number of
Portfolios in
Fund
Complex
Overseen by
Trustee
|
|
Other
Directorships
Held by Trustee
|
|
Independent
Trustees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Enrique Arzac
c/o Credit Suisse Asset Management, LLC
Attn: General Counsel Eleven Madison Avenue New York, New York 10010
(1941
)
|
|
Chairman of the Board of Trustees; Audit Committee Member and Nominating Committee Chairman
|
|
Chairman since 2005 and Trustee since 2001; current term ends at the 2011 annual meeting
|
|
Professor of Finance and Economics, Graduate School of Business, Columbia University since 1971.
|
|
|
33
|
|
|
Director of Epoch Holding Corporation (an investment management and investment advisory services company); Director of The Adams Express Company (a closed-end investment company); Director of Petroleum and Resources Corporation (a closed-end investment company).
|
|
|
Terry Fires Bovarnick
c/o Credit Suisse Asset Management, LLC
Attn: General Counsel Eleven Madison Avenue New York, New York 10010
(1958
)
|
|
Trustee; Audit and Nominating Committee Member
|
|
Since 2006; current term ends at the 2011 annual meeting
|
|
Currently retired. Consultant to Chartwell Investment Partners from March 2002 to March 2003.
|
|
|
2
|
|
|
None
|
|
|
James Cattano
c/o Primary Resources, Inc. Executive Office 5100
Tamiami Trail N. Naples, FL 34103
(1943
)
|
|
Trustee;
Audit and Nominating Committee Member
|
|
Since 2006; current term ends at the 2009 annual meeting
|
|
President, Primary Resouces, Inc. (an international trading and manufacturing company specializing in the sale of agricultural commodities throughout Latin American markets) since October 1996.
|
|
|
7
|
|
|
None
|
|
|
Lawrence J. Fox
One Logan Square
18th & Cherry Streets Philadelphia, Pennsylvania
19103
(1943
)
|
|
Trustee;
Audit Committee Chairman and Nominating Committee Member
|
|
Since 2001; current term ends at the 2010 annual meeting
|
|
Partner of Drinker Biddle & Reath (law firm) since 1972.
|
|
|
6
|
|
|
Director, Winthrop Trust Company.
|
|
|
Steven N. Rappaport Lehigh Court, LLC
555
Madison Avenue
29
th Floor
New York, New York 10022
(1948
)
|
|
Trustee;
Audit and Nominating Committee Member
|
|
Since 2005; current term ends at the 2009 annual meeting
|
|
Partner of Lehigh Court, LLC and RZ Capital (private investment firms) from July 2002 to present.
|
|
|
33
|
|
|
Director of iCAD, Inc. (surgical and medical instruments and apparatus company); Director of Presstek, Inc. (digital imaging technologies company); Director of Wood Resources, LLC. (plywood manufacturing company).
|
|
|
28
Credit Suisse High Yield Bond Fund
Information Concerning Trustees and Officers (unaudited) (continued)
Name, Address
(Year of Birth)
|
|
Position(s)
Held with Fund
|
|
Term
of Office
and
Length
of Time
Served
|
|
Principal Occupation(s) During Past Five Years
|
|
Officers**
|
|
|
|
|
|
|
|
|
George R. Hornig
Credit Suisse Asset Management, LLC
Eleven Madison Avenue New York, New York
10010
(1954
)
|
|
Chief Executive
Officer and President
|
|
Since 2008
|
|
Managing Director of Credit Suisse; Co-Chief Operating Officer of Asset Management and Head of Asset Management Americas; Associated with Credit Suisse since 1999; Officer of other Credit Suisse Funds.
|
|
|
Martha B. Metcalf
Credit Suisse Asset Management, LLC
Eleven Madison Avenue New York, New York
10010
(1965
)
|
|
Chief
Investment
Officer
|
|
Since 2005
|
|
Managing Director of Credit Suisse; Associated with Credit Suisse since 2005; Managing Director and Portfolio Manager of Invesco from 2000 to 2005; Officer of other Credit Suisse Funds.
|
|
|
Emidio Morizio
Credit Suisse Asset Management, LLC
Eleven Madison Avenue New York, New York
10010
(1966
)
|
|
Chief Compliance Officer
|
|
Since 2004
|
|
Director and Global Head of Compliance of Credit Suisse; Associated with Credit Suisse since July 2000; Officer of other Credit Suisse Funds.
|
|
|
Michael A. Pignataro
Credit Suisse Asset Management, LLC
Eleven Madison Avenue New York, New York
10010
(1959
)
|
|
Chief Financial Officer
|
|
Since 1999
|
|
Director and Director of Fund Administration of Credit Suisse; Associated with Credit Suisse or its predecessor since 1984; Officer of other Credit Suisse Funds.
|
|
|
J. Kevin Gao
Credit Suisse Asset Management, LLC
Eleven Madison Avenue New York, New York
10010
(1967
)
|
|
Chief Legal Officer since 2006, Vice President and Secretary since 2004
|
|
Since 2004
|
|
Director and Legal Counsel of Credit Suisse; Associated with Credit Suisse since July 2003; Associated with the law firm of Willkie Farr & Gallagher LLP from 1998 to 2003; Officer of other Credit Suisse Funds.
|
|
|
29
Credit Suisse High Yield Bond Fund
Information Concerning Trustees and Officers (unaudited) (continued)
Name, Address
(Year of Birth)
|
|
Position(s)
Held with Fund
|
|
Term
of Office
and
Length
of Time
Served
|
|
Principal Occupation(s) During Past Five Years
|
|
Officers**
|
|
|
|
|
|
|
|
|
Cecilia Chau
Credit Suisse Asset Management, LLC
Eleven Madison Avenue New York, New York
10010
(1973
)
|
|
Treasurer
|
|
Since 2008
|
|
Assistant Vice President of Credit Suisse since June 2007; Associated with Alliance Bernstein L.P. from January 2007 to May 2007; Associated with Credit Suisse from August 2000 to December 2006; Officer of other Credit Suisse Funds.
|
|
|
** The officers of the Fund shown are officers that make policy decisions.
30
Credit Suisse High Yield Bond Fund
Proxy Voting and Portfolio Holdings Information (unaudited)
Information regarding how the Fund voted proxies related to its portfolio securities during the 12 month period ended June 30 of each year, as well as the policies and procedures that the Fund uses to determine how to vote proxies relating to its portfolio securities are available:
By calling 1-800-293-1232
On the Fund's website, www.credit-suisse.com/us
On the website of the Securities and Exchange Commission, www.sec.gov.
The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund's Forms N-Q are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-202-551-8090.
31
Credit Suisse High Yield Bond Fund
Dividend Reinvestment and Cash Purchase Plan (unaudited)
Credit Suisse High Yield Bond Fund (the "Fund") offers a Dividend Reinvestment and Cash Purchase Plan (the "Plan") to its common stockholders. The Plan offers common stockholders a prompt and simple way to reinvest net investment income dividends and capital gains and other periodic distributions in shares of the Fund's common stock. Computershare Trust Company, N.A. ("Computershare") acts as Plan Agent for stockholders in administering the Plan.
Participation in the Plan is voluntary. In order to participate in the Plan, you must be a registered holder of at least one share of stock of the Fund. If you are a beneficial owner of the Fund having your shares registered in the name of a bank, broker or other nominee, you must first make arrangements with the organization in whose name your shares are registered to have the shares transferred into your own name. Registered shareholders can join the Plan via the Internet by going to www.computershare.com, authenticating your online account, agreeing to the Terms and Conditions of online "Account Access" and completing an online Plan Enrollment Form. Alternatively, you can complete the Plan Enrollment Form and return it to Computershare at the address below.
By participating in the Plan, your dividends and distributions will be promptly paid to you in additional shares of common stock of the Fund. The number of shares to be issued to you will be determined by dividing the total amount of the distribution payable to you by the greater of (i) the net asset value per share ("NAV") of the Fund's common stock on the payment date, or (ii) 95% of the market price per share of the Fund's common stock on the payment date. If the NAV of the Fund's common stock is greater than the market price (plus estimated brokerage commissions) on the payment date, then Computershare (or a broker-dealer selected by Computershare) shall endeavor to apply the amount of such distribution on your shares to purchase shares of Fund common stock in the open market.
You should be aware that all net investment income dividends and capital gain distributions are taxable to you as ordinary income and capital gain, respectively, whether received in cash or reinvested in additional shares of the Fund's common stock.
The Plan also permits participants to purchase shares of the Fund through Computershare. You may invest $100 or more monthly, with a maximum of $100,000 in any annual period. Computershare will purchase shares for you on the open market on the 25th of each month or the next trading day if the 25th is not a trading day.
There is no service fee payable by Plan participants for dividend reinvestment. For voluntary cash payments, Plan participants must pay a service fee of $5.00 per transaction. Plan participants will also be charged a pro rata share of the brokerage commissions for all open market purchases ($0.03 per share as of October 2006). Participants will also be charged a service fee of $5.00 for each sale and brokerage commissions of $0.03 per share (as of October 2006).
You may terminate your participation in the Plan at any time by requesting a certificate or a sale of your shares held in the Plan. Your withdrawal will be effective immediately if your notice is received by Computershare prior to any dividend or distribution record date; otherwise, such termination will be effective only with respect to any subsequent dividend or distribution. Your dividend participation option will remain the same unless you withdraw all of your whole and fractional Plan shares, in which case your participation in the Plan will be terminated and you will receive subsequent dividends and capital gains distributions in cash instead of shares.
32
Credit Suisse High Yield Bond Fund
Dividend Reinvestment and Cash Purchase Plan (unaudited) (continued)
If you want further information about the Plan, including a brochure describing the Plan in greater detail, please contact Computershare as follows:
By Internet: www.computershare.com
By phone: (800) 730-6001 (U.S. and Canada)
(781) 575-3100 (Outside U.S. and Canada)
Customer service associates are available from 9:00 a.m. to 5:00 p.m. Eastern time, Monday through Friday
By mail: Credit Suisse High Yield Bond Fund
c/o Computershare
P.O. Box 43078
Providence, Rhode Island 02940-3078
All notices, correspondence, questions or other communications sent by mail should be sent by registered or certified mail, return receipt requested.
The Plan may be terminated by the Fund or Computershare upon notice in writing mailed to each participant at least 30 days prior to any record date for the payment of any dividend or distribution.
33
Credit Suisse High Yield Bond Fund
Tax Information Letter
October 31, 2008 (unaudited)
Important Tax Information for Shareholders
For the fiscal year ended October 31, 2008 certain dividends paid by the Fund may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Reconciliation Act of 2003. Complete information will be reported in conjunction with your 2008 Form 1099-DIV.
34
Credit Suisse High Yield Bond Fund
Other Funds Managed by Credit Suisse Asset Management, LLC
CLOSED-END FUNDS
Single Country
The Chile Fund, Inc. (AMEX: CH)
The First Israel Fund, Inc. (AMEX: ISL)
The Indonesia Fund, Inc. (AMEX: IF)
Multiple Country
The Emerging Markets Telecommunications Fund, Inc. (AMEX: ETF)
The Latin America Equity Fund, Inc. (AMEX: LAQ)
Fixed Income
Credit Suisse Asset Management Income Fund, Inc. (AMEX: CIK)
Credit Suisse High Yield Bond Fund (AMEX: DHY)
Literature Request
Call today for free descriptive information on the closed-end funds listed above at 1-800-293-1232 or visit our website at www.credit-suisse.com/us.
OPEN-END FUNDS
Credit Suisse Cash Reserve Fund
Credit Suisse Commodity Return Strategy Fund
Credit Suisse Global Fixed Income Fund
Credit Suisse Global Small Cap Fund
Credit Suisse High Income Fund
Credit Suisse International Focus Fund
Credit Suisse Large Cap Blend Fund
Credit Suisse Large Cap Growth Fund
Credit Suisse Large Cap Value Fund
Credit Suisse Mid-Cap Core Fund
Credit Suisse Small Cap Core Fund
Fund shares are not deposits or other obligation of Credit Suisse Asset Management, LLC or any affiliate, are not FDIC-insured and are not guaranteed by Credit Suisse Asset Management, LLC or any affiliate. Fund investments are subject to investment risks, including loss of your investment. There are special risk considerations associated with international, global, emerging-market, small-company, private equity, high-yield debt, single-industry, single-country and other special, aggressive or concentrated investment strategies. Past performance cannot guarantee future results.
More complete information about a fund, including charges and expenses, is provided in the Prospectus, which should be read carefully before investing. You may obtain copies by calling Credit Suisse Funds at 800-927-2874. Performance information current to the most recent month-end is available at www.credit-suisse.com/us.
Credit Suisse Asset Management Securities, Inc., Distributor.
35
This report, including the financial statements herein, is sent to the shareholders of the Fund for their information. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in this report.
DHY-AR-1008
Item 2.
Code of Ethics.
The registrant has adopted a code of ethics applicable
to its Chief Executive Officer, President, Chief Financial Officer and Chief
Accounting Officer, or persons performing similar functions. A copy of the code
is filed as Exhibit 12(a)(1) to this Form. There were no amendments
to the code during the fiscal year ended October 31, 2008. There were no
waivers or implicit waivers from the code granted by the registrant during the
fiscal year ended October 31, 2008.
Item 3. Audit Committee Financial
Expert.
The registrants governing board has determined that
it has two audit committee financial experts serving on its audit committee:
Enrique R. Arzac and Steven N. Rappaport.
Each audit committee financial expert is independent for purposes of
this item.
Item 4.
Principal Accountant Fees and Services.
(a) through
(d). The information in the table below is provided for services rendered to
the registrant by its independent registered public accounting firm,
PricewaterhouseCoopers LLP (PwC), for its fiscal years ended October 31,
2007 and October 31, 2008.
|
|
2007
|
|
2008
|
|
Audit Fees
|
|
$
|
33,000
|
|
$
|
33,660
|
|
Audit-Related Fees(1)
|
|
$
|
12,510
|
|
$
|
3,400
|
|
Tax Fees(2)
|
|
$
|
2,580
|
|
$
|
2,630
|
|
All Other Fees
|
|
|
|
|
|
Total
|
|
$
|
48,090
|
|
$
|
39,690
|
|
(1) Services include agreed-upon procedures in connection with the
registrants semi-annual financial statements ($3,340 in 2007 and $3,400 in
2008 and the Funds Debt Covenant Agreement for 2007 ($9,170).
(2) Tax services in connection with the registrants excise tax
calculations and review of the registrants applicable tax returns.
The
information in the table below is provided with respect to non-audit services
that directly relate to the registrants operations and financial reporting and
that were rendered by PwC to the registrants investment adviser, Credit Suisse
Asset Management, LLC (Credit Suisse), and any service provider to the
registrant controlling, controlled by or under common control with Credit
Suisse that provided ongoing services to the registrant (Covered Services
Provider), for the registrants fiscal years ended October 31, 2007 and October 31,
2008.
|
|
2007
|
|
2008
|
|
Audit-Related Fees
|
|
N/A
|
|
N/A
|
|
Tax Fees
|
|
N/A
|
|
N/A
|
|
All Other Fees
|
|
N/A
|
|
N/A
|
|
Total
|
|
N/A
|
|
N/A
|
|
2
(e)(1) Pre-Approval
Policies and Procedures. The Audit
Committee (Committee) of the registrant is responsible for pre-approving (i) all
audit and permissible non-audit services to be provided by the independent
registered public accounting firm to the registrant and (ii) all
permissible non-audit services to be provided by the independent registered
public accounting firm to Credit Suisse and any Covered Services Provider if
the engagement relates directly to the operations and financial reporting of
the registrant. The Committee may
delegate its responsibility to pre-approve any such audit and permissible
non-audit services to the Chairperson of the Committee, and the Chairperson
shall report to the Committee, at its next regularly scheduled meeting after
the Chairpersons pre-approval of such services, his or her decision(s). The Committee may also establish detailed
pre-approval policies and procedures for pre-approval of such services in accordance
with applicable laws, including the delegation of some or all of the Committees
pre-approval responsibilities to other persons (other than Credit Suisse or the
registrants officers). Pre-approval by
the Committee of any permissible non-audit services shall not be required so
long as: (i) the aggregate amount of all such permissible non-audit
services provided to the registrant, Credit Suisse and any Covered Services
Provider constitutes not more than 5% of the total amount of revenues paid by
the registrant to its independent registered public accounting firm during the
fiscal year in which the permissible non-audit services are provided; (ii) the
permissible non-audit services were not recognized by the registrant at the
time of the engagement to be non-audit services; and (iii) such services
are promptly brought to the attention of the Committee and approved by the
Committee (or its delegate(s)) prior to the completion of the audit.
(e)(2) The
information in the table below sets forth the percentages of fees for services
(other than audit, review or attest services) rendered by PwC to the registrant
for which the pre-approval requirement was waived pursuant to Rule 2-01(c)(7)(i)(C) of
Regulation S-X:
|
|
2007
|
|
2008
|
|
Audit-Related Fees
|
|
N/A
|
|
N/A
|
|
Tax Fees
|
|
N/A
|
|
N/A
|
|
All Other Fees
|
|
N/A
|
|
N/A
|
|
Total
|
|
N/A
|
|
N/A
|
|
3
The
information in the table below sets forth the percentages of fees for services
(other than audit, review or attest services) rendered by PwC to Credit Suisse
and any Covered Services Provider required to be approved pursuant to Rule 2-01(c)(7)(ii)of
Regulation S-X, for the registrants fiscal years ended October 31, 2007
and October 31, 2008:
|
|
2007
|
|
2008
|
|
Audit-Related Fees
|
|
N/A
|
|
N/A
|
|
Tax Fees
|
|
N/A
|
|
N/A
|
|
All Other Fees
|
|
N/A
|
|
N/A
|
|
Total
|
|
N/A
|
|
N/A
|
|
(f) Not
Applicable.
(g) The
aggregate fees billed by PwC for non-audit services rendered to the registrant,
Credit Suisse and Covered Service Providers for the fiscal years ended October 31,
2007 and October 31, 2008 were $15,090 and $6,030, respectively.
(h) Not
Applicable.
Item 5.
Audit Committee of Listed Registrants.
The registrant has a
separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of
the Securities Exchange Act of 1934, as amended. The members of the committee are
Enrique R. Arzac, Terry Bovarnick, James
Cattano, Lawrence Fox and Steven N. Rappaport.
Item 6.
Schedule of Investments.
Included
as part of the report to shareholders filed under Item 1 of this Form.
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management
Investment Companies.
4
CREDIT SUISSE ASSET MANAGEMENT, LLC
CREDIT
SUISSE FUNDS
CREDIT
SUISSE INSTITUTIONAL FUNDS
CREDIT
SUISSE CLOSED-END FUNDS
PROXY VOTING
POLICY AND PROCEDURES
Introduction
Credit Suisse Asset Management, LLC (Credit
Suisse) is a fiduciary that owes each of its clients duties of care and loyalty
with respect to proxy voting. The duty
of care requires Credit Suisse to monitor corporate events and to vote
proxies. To satisfy its duty of loyalty,
Credit Suisse must cast proxy votes in the best interests of each of its
clients.
The Credit Suisse Funds,
Credit Suisse Institutional Funds, and Credit Suisse Closed-End Funds (the Funds),
which have engaged Credit Suisse Asset Management, LLC as their investment
adviser, are of the belief that the proxy voting process is a means of
addressing corporate governance issues and encouraging corporate actions both
of which can enhance shareholder value.
Policy
The Proxy Voting Policy (the Policy) set
forth below is designed to ensure that proxies are voted in the best interests
of Credit Suisses clients. The Policy
addresses particular issues and gives a general indication of how Credit Suisse
will vote proxies. The Policy is not
exhaustive and does not include all potential issues.
Proxy Voting
Committee
The Proxy Voting Committee will
consist of a member of the Portfolio Management Department, a member of the
Legal and Compliance Department, and a member of the Operations Department (or
their designees). The purpose of the
Proxy Voting Committee is to administer the voting of all clients proxies in
accordance with the Policy. The Proxy
Voting Committee will review the Policy annually to ensure that it is designed
to promote the best interests of Credit Suisses clients.
For the reasons disclosed below
under Conflicts, the Proxy Voting Committee has engaged the services of an
independent third party (initially, Risk Metrics Groups ISS Governance
Services Unit (ISS)) to assist in issue analysis and vote recommendation for
proxy proposals. Proxy proposals
addressed by the Policy will be voted in accordance with the Policy. Proxy proposals
5
addressed by the Policy that
require a case-by-case analysis will be voted in accordance with the vote
recommendation of ISS. Proxy proposals
not addressed by the Policy will also be voted in accordance with the vote
recommendation of ISS. To the extent
that the Proxy Voting Committee proposes to deviate from the Policy or the ISS
vote recommendation, the Committee shall obtain client consent as described below.
Credit Suisse investment professionals may
submit a written recommendation to the Proxy Voting Committee to vote in a
manner inconsistent with the Policy and/or the recommendation of ISS. Such recommendation will set forth its basis
and rationale. In addition, the
investment professional must confirm in writing that he/she is not aware of any
conflicts of interest concerning the proxy matter or provide a full and
complete description of the conflict.
Conflicts
Credit Suisse
is part of the asset management business of
Credit Suisse one of the worlds leading banks.
As part of a global, full service investment-bank, broker-dealer,
and asset-management organization, Credit Suisse and its affiliates and
personnel may have multiple advisory, transactional, financial, and other
interests in securities, instruments, and companies that may be purchased or
sold by Credit Suisse for its clients accounts. The interests of Credit Suisse and/or its
affiliates and personnel may conflict with the interests of Credit Suisses
clients in connection with any proxy issue.
In addition, Credit Suisse may not be able to identify all of the
conflicts of interest relating to any proxy matter.
Consent
In each and every instance in which the Proxy
Voting Committee favors voting in a manner that is inconsistent with the Policy
or the vote recommendation of ISS (including proxy proposals addressed and not
addressed by the Policy), it shall disclose to the client conflicts of interest
information and obtain client consent to vote.
Where the client is a Fund, disclosure shall be made to any one director
who is not an interested person, as that term is defined under the Investment
Company Act of 1940, as amended, of the Fund.
Recordkeeping
Credit Suisse
is required to maintain in an easily accessible place for six years all records
relating to proxy voting.
These records include the following:
·
a
copy of the Policy;
·
a
copy of each proxy statement received on behalf of Credit Suisse clients;
6
·
a
record of each vote cast on behalf of Credit Suisse clients;
·
a
copy of all documents created by Credit Suisse personnel that were material to
making a decision on a vote or that memorializes the basis for the decision;
and
·
a
copy of each written request by a client for information on how Credit Suisse
voted proxies, as well as a copy of any written response.
Credit Suisse reserves
the right to maintain certain required proxy records with ISS in accordance
with all applicable regulations.
Disclosure
Credit Suisse will
describe the Policy to each client. Upon
request, Credit Suisse will provide any client with a copy of the Policy. Credit Suisse will also disclose to its
clients how they can obtain information on their proxy votes.
ISS will capture
data necessary for Funds to file Form N-PX on an annual basis concerning
their proxy voting record in accordance with applicable law.
Procedures
The Proxy
Voting Committee will administer the voting of all client proxies. Credit
Suisse has engaged ISS as an independent third party proxy voting service to
assist in the voting of client proxies.
ISS will coordinate with each clients custodian to ensure that proxy
materials reviewed by the custodians are processed in a timely fashion. ISS will provide Credit Suisse with an
analysis of proxy issues and a vote recommendation for proxy proposals. ISS will refer proxies to the Proxy Voting
Committee for instructions when the application of the Policy is not
clear. The Proxy Voting Committee will
notify ISS of any changes to the Policy or deviating thereof.
PROXY
VOTING POLICY
Operational Items
Adjourn Meeting
Proposals to
provide management with the authority to adjourn an annual or special meeting
will be determined on a case-by-case basis.
Amend Quorum
Requirements
Proposals to
reduce quorum requirements for shareholder meetings below a majority of the
shares outstanding will be determined on a case-by-case basis.
7
Amend Minor Bylaws
Generally vote for
bylaw or charter changes that are of a housekeeping nature.
Change Date, Time,
or Location of Annual Meeting
Generally vote for
management proposals to change the date/time/location of the annual meeting
unless the proposed change is unreasonable.
Generally vote against shareholder proposals to change the
date/time/location of the annual meeting unless the current scheduling or
location is unreasonable.
Ratify Auditors
Generally vote for
proposals to ratify auditors unless: (1) an auditor has a financial
interest in or association with the company, and is therefore not independent; (2) fees
for non-audit services are excessive, or (3) there is reason to believe
that the independent auditor has rendered an opinion, which is neither accurate
nor indicative of the companys financial position. Generally vote on a case-by-case basis on
shareholder proposals asking companies to prohibit their auditors from engaging
in non-audit services (or capping the level of non-audit services). Generally vote on a case-by-case basis on
auditor rotation proposals taking into consideration: (1) tenure of audit
firm; (2) establishment and disclosure of a renewal process whereby the
auditor is regularly evaluated for both audit quality and competitive price; (3) length
of the rotation period advocated in the proposal, and (4) significant
audit related issues.
Board of Directors
Voting on Director
Nominees in Uncontested Elections
Generally votes on
director nominees on a case-by-case basis.
Votes may be withheld: (1) from directors who attended less than
75% of the board and committee meetings without a valid reason for the
absences; (2) implemented or renewed a dead-hand poison pill; (3) ignored
a shareholder proposal that was approved by a majority of the votes cast for
two consecutive years; (4) ignored a shareholder proposal approved by a
majority of the shares outstanding; (5) have failed to act on takeover
offers where the majority of the shareholders have tendered their shares; (6) are
inside directors or affiliated outside directors and sit on the audit,
compensation, or nominating committee; (7) are inside directors or
affiliated outside directors and the full board serves as the audit,
compensation, or nominating committee or the company does not have one of these
committees; or (8) are audit committee members and the non-audit fees paid
to the auditor are excessive
8
Cumulative Voting
Proposals to
eliminate cumulative voting will be determined on a case-by-case basis.
Proposals to restore or provide for cumulative voting in the absence of
sufficient good governance provisions and/or poor relative shareholder returns
will be determined on a case-by-case basis.
Director and
Officer Indemnification and Liability Protection
Proposals on
director and officer indemnification and liability protection generally evaluated
on a case-by-case basis. Generally vote
against proposals that would: (1) eliminate entirely directors and
officers liability for monetary damages for violating the duty of care; or (2) expand
coverage beyond just legal expenses to acts, such as negligence, that are more
serious violations of fiduciary obligation than mere carelessness. Generally vote for only those proposals
providing such expanded coverage in cases when a directors or officers legal
defense was unsuccessful if: (1) the director was found to have acted in
good faith and in a manner that he reasonably believed was in the best
interests of the company, and (2) only if the directors legal expenses
would be covered.
Filling
Vacancies/Removal of Directors
Generally vote
against proposals that provide that directors may be removed only for
cause. Generally vote for proposals to
restore shareholder ability to remove directors with or without cause. Proposals that provide that only continuing
directors may elect replacements to fill board vacancies will be determined on
a case-by-case basis. Generally vote for
proposals that permit shareholders to elect directors to fill board vacancies.
Independent
Chairman (Separate Chairman/CEO)
Generally vote for
shareholder proposals requiring the position of chairman be filled by an
independent director unless there are compelling reasons to recommend against
the proposal, including: (1) designated lead director, elected by and from
the independent board members with clearly delineated duties; (2) 2/3
independent board; (3) all independent key committees; or (4) established
governance guidelines.
Majority of
Independent Directors
Generally vote for
shareholder proposals requiring that the board consist of a majority or
substantial majority (two-thirds) of independent directors unless the board
composition already meets the adequate threshold. Generally vote for shareholder proposals
requiring the board audit, compensation, and/or nominating committees be
composed exclusively of independent directors if they currently do not meet
that standard. Generally withhold votes
from insiders and affiliated outsiders sitting on the audit, compensation, or
nominating committees. Generally
withhold votes from insiders and affiliated outsiders on boards that are
9
lacking any of
these three panels. Generally withhold
votes from insiders and affiliated outsiders on boards that are not at least
majority independent.
Term Limits
Generally vote
against shareholder proposals to limit the tenure of outside directors.
Proxy Contests
Voting on Director
Nominees in Contested Elections
Votes in a
contested election of directors should be decided on a case-by-case basis, with
shareholders determining which directors are best suited to add value for
shareholders. The major decision factors
are: (1) company performance relative to its peers; (2) strategy of
the incumbents versus the dissidents; (3) independence of
directors/nominees; (4) experience and skills of board candidates; (5) governance
profile of the company; (6) evidence of management entrenchment; (7) responsiveness
to shareholders; or (8) whether takeover offer has been rebuffed.
Amend Bylaws
without Shareholder Consent
Proposals giving
the board exclusive authority to amend the bylaws will be determined on a
case-by-case basis. Proposals giving the
board the ability to amend the bylaws in addition to shareholders will be
determined on a case-by-case basis.
Confidential
Voting
Generally vote for
shareholder proposals requesting that corporations adopt confidential voting,
use independent vote tabulators and use independent inspectors of election, as
long as the proposal includes a provision for proxy contests as follows: In the
case of a contested election, management should be permitted to request that
the dissident group honor its confidential voting policy. If the dissidents agree, the policy may
remain in place. If the dissidents will
not agree, the confidential voting policy may be waived. Generally vote for management proposals to
adopt confidential voting.
Cumulative Voting
Proposals to
eliminate cumulative voting will be determined on a case-by-case basis. Proposals to restore or provide for
cumulative voting in the absence of sufficient good governance provisions
and/or poor relative shareholder returns will be determined on a case-by-case
basis.
10
Antitakeover Defenses and Voting Related Issues
Advance Notice
Requirements for Shareholder Proposals/Nominations
Votes on advance
notice proposals are determined on a case-by-case basis.
Amend Bylaws
without Shareholder Consent
Proposals giving
the board exclusive authority to amend the bylaws will be determined on a
case-by-case basis. Generally vote for
proposals giving the board the ability to amend the bylaws in addition to
shareholders.
Poison Pills
(Shareholder Rights Plans)
Generally vote for
shareholder proposals requesting that the company submit its poison pill to a
shareholder vote or redeem it. Votes
regarding management proposals to ratify a poison pill should be determined on
a case-by-case basis. Plans should
embody the following attributes: (1) 20% or higher flip-in or flip-over; (2) two
to three year sunset provision; (3) no dead-hand or no-hand features; or (4) shareholder
redemption feature
Shareholders
Ability to Act by Written Consent
Generally vote
against proposals to restrict or prohibit shareholders ability to take action
by written consent. Generally vote for
proposals to allow or make easier shareholder action by written consent.
Shareholders
Ability to Call Special Meetings
Proposals to
restrict or prohibit shareholders ability to call special meetings or that
remove restrictions on the right of shareholders to act independently of
management will be determined on a case-by-case basis.
Supermajority Vote
Requirements
Proposals to
require a supermajority shareholder vote will be determined on a case-by-case
basis Proposals to lower supermajority vote requirements will be determined on
a case-by-case basis.
Merger and Corporate Restructuring
Appraisal Rights
Generally vote for
proposals to restore, or provide shareholders with, rights of appraisal.
11
Asset Purchases
Generally vote
case-by-case on asset purchase proposals, taking into account: (1) purchase
price, including earnout and contingent payments; (2) fairness opinion; (3) financial
and strategic benefits; (4) how the deal was negotiated; (5) conflicts
of interest; (6) other alternatives for the business; or (7) noncompletion
risk (companys going concern prospects, possible bankruptcy).
Asset Sales
Votes on asset
sales should be determined on a case-by-case basis after considering: (1) impact
on the balance sheet/working capital; (2) potential elimination of
diseconomies; (3) anticipated financial and operating benefits; (4) anticipated
use of funds; (5) value received for the asset; fairness opinion (if any);
(6) how the deal was negotiated; or (6) Conflicts of interest
Conversion of
Securities
Votes on proposals
regarding conversion of securities are determined on a case-by-case basis. When
evaluating these proposals, should review (1) dilution to existing
shareholders position; (2) conversion price relative to market value; (3) financial
issues: companys financial situation and degree of need for capital; effect of
the transaction on the companys cost of capital; (4) control issues:
change in management; change in control; standstill provisions and voting
agreements; guaranteed contractual board and committee seats for investor; veto
power over certain corporate actions; (5) termination penalties; (6) conflict
of interest: arms length transactions, managerial incentives. Generally vote for the conversion if it is
expected that the company will be subject to onerous penalties or will be
forced to file for bankruptcy if the transaction is not approved.
Corporate
Reorganization
Votes on proposals
to increase common and/or preferred shares and to issue shares as part of a
debt restructuring plan are determined on a case-by-case basis, after
evaluating: (1) dilution to existing shareholders position; (2) terms
of the offer; (3) financial issues; (4) managements efforts to
pursue other alternatives; (5) control issues; (6) conflict of
interest. Generally vote for the debt
restructuring if it is expected that the company will file for bankruptcy if
the transaction is not approved.
Reverse Leveraged
Buyouts
Votes on proposals
to increase common and/or preferred shares and to issue shares as part of a
debt restructuring plan are determined on a case-by-case basis, after
evaluating: (1) dilution to existing shareholders position; (2) terms
of the offer; (3) financial issues; (4) managements efforts to
pursue other alternatives; (5) control issues; (6) conflict of
interest. Generally vote
12
for the debt
restructuring if it is expected that the company will file for bankruptcy if
the transaction is not approved.
Formation of
Holding Company
Votes on proposals
regarding the formation of a holding company should be determined on a
case-by-case basis taking into consideration: (1) the reasons for the
change; (2) any financial or tax benefits; (3) regulatory benefits; (4) increases
in capital structure; (5) changes to the articles of incorporation or
bylaws of the company. Absent compelling
financial reasons to recommend the transaction, generally vote against the
formation of a holding company if the transaction would include either of the
following: (1) increases in common or preferred stock in excess of the
allowable maximum as calculated a model capital structure; (2) adverse
changes in shareholder rights; (3) going private transactions; (4) votes
going private transactions on a case-by-case basis, taking into account: (a) offer
price/premium; (b) fairness opinion; (c) how the deal was negotiated;
(d) conflicts of interest; (e) other alternatives/offers considered; (f) noncompletion
risk.
Joint Ventures
Vote on a
case-by-case basis on proposals to form joint ventures, taking into account: (1) percentage
of assets/business contributed; (2) percentage ownership; (3) financial
and strategic benefits; (4) governance structure; (5) conflicts of
interest; (6) other alternatives; (7) noncompletion risk; (8) liquidations. Votes on liquidations should be determined on
a case-by-case basis after reviewing: (1) managements efforts to pursue
other alternatives such as mergers; (2) appraisal value of the assets
(including any fairness opinions); (3) compensation plan for executives
managing the liquidation. Generally vote
for the liquidation if the company will file for bankruptcy if the proposal is
not approved.
Mergers and
Acquisitions
Votes on mergers
and acquisitions should be considered on a case-by-case basis, determining
whether the transaction enhances shareholder value by giving consideration to: (1) prospects
of the combined companies; (2) anticipated financial and operating
benefits; (3) offer price; (4) fairness opinion; (5) how the
deal was negotiated; (6) changes in corporate governance and their impact
on shareholder rights; (7) change in the capital structure; (8) conflicts
of interest.
Private Placements
Votes on proposals
regarding private placements should be determined on a case-by-case basis. When
evaluating these proposals, should review: (1) dilution to existing
shareholders position; (2) terms of the offer; (3) financial issues;
(4) managements efforts to pursue alternatives such as mergers; (5) control
issues; (6) conflict of interest.
Generally vote for the
13
private placement
if it is expected that the company will file for bankruptcy if the transaction
is not approved.
Prepackaged
Bankruptcy Plans
Votes on proposals
to increase common and/or preferred shares and to issue shares as part of a
debt restructuring plan are determined on a case-by-case basis, after
evaluating: (1) dilution to existing shareholders position; (2) terms
of the offer; (3) financial issues; (4) managements efforts to
pursue other alternatives; (5) control issues; (6) conflict of
interest. Generally vote for the debt
restructuring if it is expected that the company will file for bankruptcy if the
transaction is not approved.
Recapitalization
Votes case-by-case
on recapitalizations (reclassifications of securities), taking into account: (1) more
simplified capital structure; (2) enhanced liquidity; (3) fairness of
conversion terms, including fairness opinion; (4) impact on voting power
and dividends; (5) reasons for the reclassification; (6) conflicts of
interest; (7) other alternatives considered.
Reverse Stock
Splits
Generally vote for
management proposals to implement a reverse stock split when the number of
authorized shares will be proportionately reduced. Generally vote for management proposals to
implement a reverse stock split to avoid delisting. Votes on proposals to implement a reverse
stock split that do not proportionately reduce the number of shares authorized
for issue should be determined on a case-by-case basis.
Spinoffs
Votes on spinoffs
should be considered on a case-by-case basis depending on: (1) tax and
regulatory advantages; (2) planned use of the sale proceeds; (3) valuation
of spinoff; fairness opinion; (3) benefits that the spinoff may have on
the parent company including improved market focus; (4) conflicts of
interest; managerial incentives; (5) any changes in corporate governance
and their impact on shareholder rights; (6) change in the capital
structure
Value Maximization
Proposals
Vote case-by-case
on shareholder proposals seeking to maximize shareholder value.
Capital Structure
Adjustments to Par Value
of Common Stock
14
Generally vote for
management proposals to reduce the par value of common stock unless the action
is being taken to facilitate an antitakeover device or some other negative
corporate governance action. Generally
vote for management proposals to eliminate par value.
Common Stock
Authorization
Votes on proposals
to increase the number of shares of common stock authorized for issuance are
determined on a case-by-case basis.
Generally vote against proposals at companies with dual-class capital structures
to increase the number of authorized shares of the class of stock that has
superior voting rights. Generally vote
for proposals to approve increases beyond the allowable increase when a companys
shares are in danger of being delisted or if a companys ability to continue to
operate as a going concern is uncertain.
Dual-class Stock
Generally vote
against proposals to create a new class of common stock with superior voting
rights. Generally vote for proposals to
create a new class of nonvoting or subvoting common stock if: (1) it is
intended for financing purposes with minimal or no dilution to current
shareholders; (2) it is not designed to preserve the voting power of an
insider or significant shareholder.
Issue Stock for
Use with Rights Plan
Generally vote
against proposals that increase authorized common stock for the explicit
purpose of implementing a shareholder rights plan.
Preemptive Rights
Votes regarding
shareholder proposals seeking preemptive rights should be determined on a case-by-case
basis after evaluating: (1) the size of the company; (2) the
shareholder base; (3) the liquidity of the stock
Preferred Stock
Generally vote
against proposals authorizing the creation of new classes of preferred stock
with unspecified voting, conversion, dividend distribution, and other rights (blank
check preferred stock). Generally vote
for proposals to create declawed blank check preferred stock (stock that
cannot be used as a takeover defense).
Generally vote for proposals to authorize preferred stock in cases where
the company specifies the voting, dividend, conversion, and other rights of
such stock and the terms of the preferred stock appear reasonable. Generally vote against proposals to increase
the number of blank check preferred stock authorized for issuance when no
shares have been issued or reserved for a specific purpose. Generally vote case-by-case on proposals to
increase the number of blank check
15
preferred shares
after analyzing the number of preferred shares available for issue given a
companys industry and performance in terms of shareholder returns.
Recapitalization
Vote case-by-case
on recapitalizations (reclassifications of securities), taking into account: (1) more
simplified capital structure; (2) enhanced liquidity; (3) fairness of
conversion terms, including fairness opinion; (4) impact on voting power
and dividends; (5) reasons for the reclassification; (6) conflicts of
interest; (7) other alternatives considered.
Reverse Stock
Splits
Generally vote for
management proposals to implement a reverse stock split when the number of
authorized shares will be proportionately reduced. Generally vote for management proposals to
implement a reverse stock split to avoid delisting. Votes on proposals to implement a reverse
stock split that do not proportionately reduce the number of shares authorized
for issue should be determined on a case-by-case basis.
Share Repurchase
Programs
Generally vote for
management proposals to institute open-market share repurchase plans in which
all shareholders may participate on equal terms.
Stock
Distributions: Splits and Dividends
Generally vote for
management proposals to increase the common share authorization for a stock
split or share dividend, provided that the increase in authorized shares would
not result in an excessive number of shares available for issuance.
Tracking Stock
Votes on the
creation of tracking stock are determined on a case-by-case basis, weighing the
strategic value of the transaction against such factors as: (1) adverse
governance changes; (2) excessive increases in authorized capital stock; (3) unfair
method of distribution; (4) diminution of voting rights; (5) adverse
conversion features; (6) negative impact on stock option plans; (7) other
alternatives such as a spinoff.
Executive and Director Compensation
Executive and
Director Compensation
Votes on
compensation plans for directors are determined on a case-by-case basis.
16
Stock Plans in
Lieu of Cash
Votes for plans
which provide participants with the option of taking all or a portion of their
cash compensation in the form of stock are determined on a case-by-case
basis. Generally vote for plans which provide
a dollar-for-dollar cash for stock exchange.
Votes for plans which do not provide a dollar-for-dollar cash for stock
exchange should be determined on a case-by-case basis.
Director
Retirement Plans
Generally vote
against retirement plans for nonemployee directors. Generally vote for shareholder proposals to
eliminate retirement plans for nonemployee directors.
Management
Proposals Seeking Approval to Reprice Options
Votes on
management proposals seeking approval to reprice options are evaluated on a
case-by-case basis giving consideration to the following: (1) historic
trading patterns; (2) rationale for the repricing; (3) value-for-value
exchange; (4) option vesting; (5) term of the option; (6) exercise
price; (7) participants; (8) employee stock purchase plans. Votes on employee stock purchase plans should
be determined on a case-by-case basis.
Generally vote for employee stock purchase plans where: (1) purchase
price is at least 85 percent of fair market value; (2) offering period is
27 months or less, and (3) potential voting power dilution (VPD) is ten
percent or less. Generally vote against
employee stock purchase plans where either: (1) purchase price is less
than 85 percent of fair market value; (2) Offering period is greater than
27 months, or (3) VPD is greater than ten percent
Incentive Bonus
Plans and Tax Deductibility Proposals
Generally vote for
proposals that simply amend shareholder-approved compensation plans to include
administrative features or place a cap on the annual grants any one participant
may receive. Generally vote for
proposals to add performance goals to existing compensation plans. Votes to amend existing plans to increase
shares reserved and to qualify for favorable tax treatment considered on a
case-by-case basis. Generally vote for
cash or cash and stock bonus plans that are submitted to shareholders for the
purpose of exempting compensation from taxes if no increase in shares is
requested.
Employee Stock
Ownership Plans (ESOPs)
Generally vote for
proposals to implement an ESOP or increase authorized shares for existing
ESOPs, unless the number of shares allocated to the ESOP is excessive (more
than five percent of outstanding shares.)
17
401(k) Employee
Benefit Plans
Generally vote for
proposals to implement a 401(k) savings plan for employees.
Shareholder
Proposals Regarding Executive and Director Pay
Generally vote for
shareholder proposals seeking additional disclosure of executive and director
pay information, provided the information requested is relevant to shareholders
needs, would not put the company at a competitive disadvantage relative to its
industry, and is not unduly burdensome to the company. Generally vote against shareholder proposals
seeking to set absolute levels on compensation or otherwise dictate the amount
or form of compensation. Generally vote
against shareholder proposals requiring director fees be paid in stock only. Generally vote for shareholder proposals to
put option repricings to a shareholder vote.
Vote for shareholders proposals to exclude pension fund income in the
calculation of earnings used in determining executive
bonuses/compensation. Vote on a
case-by-case basis for all other shareholder proposals regarding executive and
director pay, taking into account company performance, pay level versus peers,
pay level versus industry, and long term corporate outlook.
Performance-Based
Option Proposals
Generally vote for shareholder proposals advocating the use of performance-based
equity awards (indexed, premium-priced, and performance-vested options),
unless: (1) the proposal is overly restrictive; or (2) the company
demonstrates that it is using a substantial portion of performance-based awards
for its top executives.
Stock Option
Expensing
Generally vote for
shareholder proposals asking the company to expense stock options unless the
company has already publicly committed to start expensing by a specific date.
Golden and Tin
Parachutes
Generally vote for
shareholder proposals to require golden and tin parachutes to be submitted for
shareholder ratification, unless the proposal requires shareholder approval
prior to entering into employment contracts.
Vote on a case-by-case basis on proposals to ratify or cancel golden or
tin parachutes.
May 14, 2008
Item
8. Portfolio Managers of Closed-End
Management Investment Companies.
Information pertaining to
the Chief Investment Officer of the Credit Suisse High Yield Bond Fund, as of October 31,
2008, is set forth below.
18
Martha B. Metcalf
Chief Investment
Officer Since 2005
|
|
Managing Director; Associated with Credit Suisse
since 2005;
Managing Director and Portfolio Manager of Invesco from 2000 to
2005; Officer of other Credit Suisse Funds
|
Date of Birth: 04/09/65
Registered Investment Companies, Pooled Investment
Vehicles and Other Accounts Managed
As reported to the Registrant, the
information in the following table reflects the number of registered investment
companies, pooled investment vehicles and other accounts managed by Ms. Metcalf
and the total assets managed within each category as of October 31, 2008.
|
|
Registered Investment
Companies
|
|
Other Pooled Investment
Vehicles
|
|
Other Accounts
|
|
Martha Metcalf
|
|
4 $381
million
|
|
2 $117
million
|
|
7 $1,282
million
|
|
No advisory
fee is paid based on performance for any of the accounts listed above.
Potential
Conflicts of Interest
It is possible that conflicts of interest may
arise in connection with the portfolio managers management of the Portfolios
investments on the one hand and the investments of other accounts on the other.
For example, the portfolio managers may have conflicts of interest in
allocating management time, resources and investment opportunities among the
Portfolio and other accounts they advise. In addition due to differences in the
investment strategies or restrictions between the Portfolio and the other
accounts, the portfolio managers may take action with respect to another
account that differs from the action taken with respect to the Portfolio. Credit Suisse has adopted policies and
procedures that are designed to minimize the effects of these conflicts.
If Credit Suisse believes that the purchase
or sale of a security is in the best interest of more than one client, it may
(but is not obligated to) aggregate the orders to be sold or purchased to seek
favorable execution or lower brokerage commissions, to the extent permitted by
applicable laws and regulations. Credit
Suisse may aggregate orders if all participating client accounts benefit
equally (i.e., all receive an average price of the aggregated orders). In the
event Credit Suisse aggregates an order for participating accounts, the method
of allocation will generally be determined prior to the trade execution.
Although no specific method of allocation of transactions (as well as expenses
incurred in the transactions) is expected to be used, allocations will be
designed to ensure that over time all clients receive fair treatment consistent
with Credit Suisses fiduciary duty to its clients (including its duty to seek
to obtain best execution of client trades). The accounts aggregated may
19
include registered and unregistered
investment companies managed by Credit Suisses affiliates and accounts in
which Credit Suisses officers, directors, agents, employees or affiliates own
interests. Applicant may not be able to aggregate securities transactions for
clients who direct the use of a particular broker-dealer, and the client also
may not benefit from any improved execution or lower commissions that may be
available for such transactions.
Compensation
Ms. Metcalf
is compensated for her services by Credit
Suisse. Her compensation consists of a fixed base salary and a discretionary
bonus that is not tied by formula to the performance of any fund or account.
The factors taken into account in determining her bonus include the Funds
performance, assets held in the Fund and other accounts managed by her,
business growth, team work, management, corporate citizenship, etc.
A
portion of the bonus may be paid in phantom shares of Credit Suisse Group stock
as deferred compensation. Phantom shares are shares representing an unsecured
right to receive on a particular date a specified number of registered shares
subject to certain terms and conditions. A portion of the bonus will receive
the notional return of the fund(s) the portfolio manager manages and a
portion of the bonus will receive the notional return of a basket of other
Credit Suisse funds along the product line of the portfolio manager.
Like
all employees of Credit Suisse, portfolio managers participate in Credit Suisses
profit sharing and 401(k) plans.
Securities
Ownership. As of October 31, 2008, Ms. Metcalf
own approximately 200 shares of the registrant on behalf of her children.
Item 9.
Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers.
None.
Item
10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which
shareholders may recommend nominees to the registrants board of directors
since the registrant last provided disclosure in response to the requirements
of Item 7(d)(2)(ii)(g) of Schedule 14A in its definitive proxy statement
dated December 28, 2007.
20
Item
11. Controls and Procedures.
(a) As of
a date within 90 days from the filing date of this report, the principal
executive officer and principal financial officer concluded that the registrants
disclosure controls and procedures (as defined in Rule 30a-3(c) under
the Investment Company Act of 1940 (the Act)) were effective based on their
evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under
the Act and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934.
(b) There
were no changes in registrants internal control over financial reporting (as
defined in Rule 30a-3(d) under the Act) that occurred during the
second fiscal quarter of the period covered by this report that have materially
affected, or are reasonably likely to materially affect, the registrants
internal control over financial reporting.
Item 12.
Exhibits.
(a)(1) Registrants Code of Ethics is an exhibit
to this report.
(a)(2) The certifications of the registrant as
required by Rule 30a-2(a) under the Act are exhibits to this report.
(a)(3) Not applicable.
(b) The certifications of the registrant
as required by Rule 30a-2(b) under the Act are an exhibit to this
report.
21
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.
CREDIT SUISSE HIGH YIELD BOND FUND.
/s/ George
R. Hornig
|
Name:
|
George
R. Hornig
|
Title:
|
Chief
Executive Officer
|
Date:
|
January 8,
2009
|
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.
/s/ George
R. Hornig
|
Name:
|
George
R. Hornig
|
Title:
|
Chief
Executive Officer
|
Date:
|
January 8,
2009
|
/s/ Michael
A. Pignataro
|
Name:
|
Michael
A. Pignataro
|
Title:
|
Chief
Financial Officer
|
Date:
|
January 8,
2009
|
22
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