<DOCUMENT>
<TYPE>EX-99.77Q2 ITEM 405
<SEQUENCE>3
<FILENAME>hcs77q2.txt
<TEXT>
77Q.2. Any information called for by instructions to sub-item 77Q2.

Highland Credit Strategies Fund (the "Registrant")

SECTION 16(A) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE

Section 16(a) of the Securities Exchange Act of 1934
requires the Registrant's Directors and officers and
persons who own more than ten percent of the Registrant's
outstanding interests and certain officers and directors of
the Registrant's investment advisers (collectively,
"Section 16 reporting persons") to file with the SEC
initial reports of beneficial ownership and reports of
changes in beneficial ownership of Registrant interests.
Section 16 reporting persons are required by SEC
regulations to furnish the Registrant with copies of all
Section 16(a) forms they file. To the Registrant's
knowledge, based solely on a review of the
copies of such reports furnished to the Registrant and on
representations made, all Section 16 reporting persons
complied with all Section 16(a) filing requirements
applicable to them for the year ended December 31, 2010.

</TEXT>
</DOCUMENT>
