<SEC-DOCUMENT>0001225208-12-002129.txt : 20120126
<SEC-HEADER>0001225208-12-002129.hdr.sgml : 20120126
<ACCEPTANCE-DATETIME>20120126145935
ACCESSION NUMBER:		0001225208-12-002129
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20120120
FILED AS OF DATE:		20120126
DATE AS OF CHANGE:		20120126

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BABSON CAPITAL PARTICIPATION INVESTORS
		CENTRAL INDEX KEY:			0000831655
		STANDARD INDUSTRIAL CLASSIFICATION:	UNKNOWN SIC - 0000 [0000]
		IRS NUMBER:				043025730
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		1500 MAIN STREET
		STREET 2:		SUITE 600
		CITY:			SPRINGFIELD
		STATE:			MA
		ZIP:			01115
		BUSINESS PHONE:		4132261000

	MAIL ADDRESS:	
		STREET 1:		1500 MAIN STREET
		STREET 2:		SUITE 600
		CITY:			SPRINGFIELD
		STATE:			MA
		ZIP:			01115

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MASSMUTUAL PARTICIPATION INVESTORS
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MASSMUTUAL CORPORATE INVESTORS II
		DATE OF NAME CHANGE:	19880417

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			GRACE EDWARD P III
		CENTRAL INDEX KEY:			0000905527
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	811-05531
		FILM NUMBER:		12547383

	MAIL ADDRESS:	
		STREET 1:		SEASIDE PLAZA SUITE 880
		STREET 2:		201 SOUTH ORANGE AVENUE
		CITY:			ORLANDO
		STATE:			FL
		ZIP:			32801
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>doc3.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0204</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2012-01-20</periodOfReport>

    <noSecuritiesOwned>1</noSecuritiesOwned>

    <issuer>
        <issuerCik>0000831655</issuerCik>
        <issuerName>BABSON CAPITAL PARTICIPATION INVESTORS</issuerName>
        <issuerTradingSymbol>MPV</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000905527</rptOwnerCik>
            <rptOwnerName>GRACE EDWARD P III</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1500 MAIN STREET</rptOwnerStreet1>
            <rptOwnerStreet2>P O BOX 15189</rptOwnerStreet2>
            <rptOwnerCity>SPRINGFIELD</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>01115</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isOther>1</isOther>
            <otherText>Trustee</otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable></derivativeTable>

    <footnotes></footnotes>

    <remarks>The Reporting Person has no benficial holdings.</remarks>

    <ownerSignature>
        <signatureName>Jessica Burns as  Attorney-in-fact</signatureName>
        <signatureDate>2012-01-26</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-24
<SEQUENCE>2
<FILENAME>egrace.txt
<TEXT>

SEC Form 3, Form 4 and Form 5 and Application for EDGAR Access
(Form ID) Confirmation of Authority to Sign


Pursuant to Instruction 7 to SEC Form 4 Statement of Changes in  Beneficial
Ownership and Form 5 - Annual Statement of Beneficial  Ownership of Securities
the undersigned, being a Trustee of  Babson Capital Corporate Investors and
Babson Capital Participation Investors  (each, a "Trust"), hereby appoint and
designate Jessica Burns, Ruth Howe, Ann Malloy, and Melissa LaGrant each as my
true and lawful attorneys in fact with full power to (a) apply for access to the
EDGAR filing system in my name and (b) sign for me and file with the
Securities and Exchange Commission, the New York Stock Exchange and the Trust
said SEC Forms 3 4 and/or5 with respect to shares of the Trust purchased or sold
by the undersigned or any other change of beneficial ownership relating to
equity or derivative securities of the Trust required to be reported by the
undersigned.

This authorization shall remain in effect until a written revocation is executed
by the undersigned and filed with the Securities and Exchange Commission.



Signature and Date:	1-23-2012

Name:	Edward P. Grace III
Title:	Trustee of Babson Capital Corporate Investors and Babson Capital
Participation 	Investors
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
